New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-08
Frick and Carey Groups
Unite After Lacka-
wanna Deal Fails.
NEW MERGER PLAN
STIRS WALL STREET
Biggest Deal Since u. S. Corpo-
ration Was Formed Involves
Payment of S7O,OOO,OOO.

were recalled TO Wall street yesterday
IN the unexpected announcement that
the Midvale Steel and Ordnance Com
pany had acquired a controlling inter
est in the Cambria Steel Company. one
Of the largest independent steel manu-
featuring concerns IN the country.
Negotiations were begun on Saturday
morning. when it became known that
the Youngstown Sheet and Tube-Cam-
bria-Lackawanua merger was Oft. and
were completed over Sunday. following
conferences between the Reploglc-Don-
uer Interests and repre- entatives o. the
Nidvale company.
When the billion dollar Steel Corpo-
ration was formed in 1901 similar
methods were adopted by the promot-
ors. who spent large part Of their
time in private cars. arranging 10 take
over constituent companies overnight
for sums that made new crop Of
multi-milEousires in the Pittsburgh
district
That such tactics were used by the
Nidvale interests was not surprising,
however. as the majority Of its officials
we're identified with the Steel Corpo-
ration in the early days Of its exist
orce They include President William
r. Corey. formerly the head Of the
steel Corporation and president Of the
Carnegie steel Company; Nice-Presi-
dent A. c. Dinkey. formerly president
q the Carnegie steel Company; W. B.
Dickson, secretary and treasurer Of the
Midvale combine and q former vice
president Of the Steel Corporation. and
Ambrose Mcneil, formerly chief metal
luIgist Of the Carnegie Steel Company.
Ssi a Share for Cambria.
The only announcement made from
the Midvole Offices in the Bankers
Trust Building Of the acquisition Of
the Cambria control was short state
ment that the deal had been completed
W. II. Bonner. president Of the Cam
bria company. made a .imilar an
nouncement from his Office in Philadel-
phia.
The price 20 be paid by Midvale for
Cambria stock is SSl share in cash
This is 81 share more than that Of
fcred by the Kuhn, Loeb-National City
Bank syndicate, which failed 10 put
through the merger of Cambria with
the Lackawanna Steel Company and the
ID. q
The Replogle-Donncr interests have
agreed 10 turn over their holdings in
Cambria. amounting 10 about 100000
out 81 q total outstanding Of 100000
shares Of e par value Of $50 No diff
Guilty is expected IN obtaining tire inde-
pudent holdings. as a majority had pre-
yiously consented 20 enter the loungs-
town. Cambria-Lackawanna merger at
$50 a share.
The acquisition Of the Cambria stock
hv the Nidyale will therefore be one
Of the largest and most important
transactions since the organization Of
the Steel Corporation. and will involve
q payment to Cambria shareholders of
more than s1O.O00.O00. This sum. it
was understood in financial circles. will
be raised by increasing the authorized
amount of Nidvale stock from $780,
100000 20 Sl50.0OO,OOO and the offer
inc 20 stockholders of S75.O00,000. The
present outstanding stock totals $70.-
600 900
Bankers said yesterday that arrange
mcnts would probably be made shortly
for the underwriting of the new issue,
which would be offered az a price Civ
my valuable rights 10 the subscribers.
II was intlmated that the offering price
would be above par. which is $50.
Lackawanna Merger Falls.
The first intimatlon that there was
something doing" I'm Midvale was told
10 the street yesterday in the i'm
creased activity ZOO the stock on the
Broad street curb market. where IL is
traded in pending transfer 10 the "bg
board" il opened two points higher at
- and later touched 1873, the high
price Of the day on the announce
ment that the stock would be increased
TO raise funds 20 pay for the Cambria
stock there was reaction 20 7Oia, a
net gain OF only "a.
If William IT. Bonner, president Of
the Cambria company, allies himself
with Che Nhdvalc combine 10 will mean
AN alliance between the Corey crowd
and Henry {. Prick, who is an init
mate business associate Of Mr.. Don
'I ~ IioN Us director ana mem
per OF lNe Hhance committee OF the
steer corporation.
me "mhfl" steel company has q
diVetsihcd production. IL manuiact-
ules iaHs' structural steel biliets,
Mife' Oar. ana various other finished
s'eel products. ITS I'm he'd stcel ca
Panclty oo Is ln iAe nelghDorhood or
-'-'''.1u 'on "n' u"liy. III gross husl-
...n .5 az lD'''' ION o. 'hl9 concern
p..tI. t. S ..D1" ~. I'LL - GUS Win
."' 4fN titlt AtlN 0NttA AoiIofhI on.