Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-02-19
COMPLETE DEAL FOR
PURCHASE OF PA. STEEI
[Continued From First Pagc.l

Continued From First Page.J
shareholders are to receive s1OO a
share, ii was announced.
The deal was concluded following a
long conference in the office of Henry
Tatnall. president in charge of fin
ance of the Pennsylvania Railroad
Mr.. Schwab was assured the $12,112,-
$50 common and preferred stock held
by the Pennsylvania Company and
the Reading Iron Company or 3S per
cent. of Pennsylvania Steers total
capital.
William II. Donner, president OF
Cambria Steel, is believed to have also
agreed to turn over an equal amount
of Pennsylvania Steel which he holds
at the same price paid the railroads
Mr.. Donner declined last night to
make Gny comment ant there was
considerable speculation as to whether
he would take $27 for his common
stock, as he paid 1920 a share when
he bought his holdings from the rail-
roads last October. At that time Mr.
Donner paid SS4.71 for his preferred
and it was pointed out that his pro-
fits on the preferred would offset
whatever loss sustained by the lower
price for the common.
Last Hour Change
| Another last hour change in the
pldlS was Tldue cNlueIl ny tllG lat
that the railroad interests would take
for their holdings five per cent pur-
chase money mortgage mondS of the
Bethlehem Steel Company at par. Ar
rangements have been made by which
other stockholders will receive cash
for their shares at the above rates
Some persons believed Mr.. DonneI
was persuaded to accept S27 for his
common, in view of tho fact that un-
l ha 10 St hn
all cash, whereas the original Offer
gave him part cash and part bonds in
| payment.
| If Mr.. Donner has agreed to sell his
stock it will give Charles NJ Schwab
head of Bethlehem Steel, $22,224, ,10C
or &c per cent. of the total SS1,337.-
| 500 capital stock of Pennsylvania. Il
was not until several hours after the
Stock Market closed that it became
known that the deal had been con-
cluded and signatures affixed to the
papers.
Schwab Gives Up Presidency
In New York last night a statement
was issued to the effect that Mr.
/ Schwab had withdrawn from the pres
| idency of Bethlehem Steel but woult
continue as chairman of the board o.
directors. He was succeeded as pres
ident by e. G. Grace, formerly vice
president. Mr.. Schwab issued a state
ment in which he said that the pur'
chase price of the Pennsylvania Stee
Company aggregated approximate!
! S31, 100000.
The acquisition of the Pennsylvania
Company, Mr.. Schwab said, was thu
outcome of the determination reached
| by the Bethlehem Company some time
ago to add to it's output Bessemel
Steel lines For several reasons hi
declared, it seemed wiser to ac.
complish these engagements by ac
quiring a plant already in operation
rather than await the enlargement o.
the plant at Bethlehem. The pur,
chase, ii was pointed out, includes ore
properties both in this country GnC
in Cuba, as well as important Goa
deposits.
One banker declared last night tha
$27 was entirely too low a price fol
the common in view of the fact thai
frequent statements were made of eX
celent earnings, thus warranting
much higher figure. No doubt holders
of the common stock will refuse to ac
cept the figure mentioned. but as only
1914 shares are outstanding there il
| little likelihood of the deal being
blocked.