Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-02-21
DONNER WILL
LEAVE P. S. CO.
Will Not Be Associated With
Schwab in Management
of the Plants
Special to the Telegraph

Philadelphia, Pa, Feb. 21.-WilIiam
III. Donner, chairman of the Board of
Directors of the Pennsylvania Steel
Company, which met Saturday and
ratified the sale of that company to
the Bethlehem Steel Company. sub
ject TO the approval of the boards of
the various subsidiaries of the Penn
sylvania Company, will not be asso-
ciated with Charles NJ. Schwab in the
management of the company, except
as to such services as he may render
during the present year, according to
statement issued over his signature
Saturday.
Mr.. Donner does not disclose what
he intends to do in the future. but in
financial circles it is regarded as al
most certainty that he will devote
his entire efforts to building up the
Donner Steel Company, which was in
corporated in New York several weeks
ago.
In his statement Mr.. Donner also
indicated for the first time that he
will receive cash for his holdings in
Pennsylvania Steel, as will other
stockholders, excepting the Pennsyl-
yania Railroad and the Philadelphia
& Reading Railway, which will be
paid in bonds.
Mr.. Donner says that all stockhold-
ers will receive 500 per share for the
preferred stock and approximately
S21 Tor the common. According to
Mr.. Schwab the sale aggregates an
outlay on the part of the Bethlehem
Steel Company of approximately SAL
100000. Mr. Donner's statement is
as follows:
In confirmation of the statement
issued from the offices of the Bethle-
hem Steel Corporation, outlining their
arrangement to purchase the Pennsyl-
vania Steel Company properties. I will
| say that | have agreed to participate
to the extent of my stock holdings in
tie sale of the properties to the Beth
lehem Steel Company on basis which
will insure all stockholders 500 per
share for the preferred and approx
mately S27 for the common. 1t is also
provided that all stockholders, except
| ing the Pennsylvania Company and
the Reading Iron Company, will be
paid in cash.
"a part of the negotiations con-
templated my remaining with the
company for period of five years,
but this arrangement was abandoned
except as to such services as / may be
able to render during this year."
Sale Ratified
Previously the board of directors
OF Pennsylvania Steel had met in the
company's offices in the Morris build
ing and with more than a quorum
present sanctioned the sale of the
company. According to the state
ment issued after the meeting the
board considered the officer of the
J Bethlehem Steel Company to pur-
chase the Pennsylvania Steel Com
pany properties and approved of its
acceptance, subject to the approval of
the boards of the subsidiary COM
panies interested"
were present: Edgar c. FELTON,, presi-
dent of the company; George Wood,
William d. Winsor, Il. b. Stotesbury,
Theodore n. Ely, b. Effingham Nor
ris, Francis /. Gowen, G.. Dawson
Coleman and f. c. Smink.
In the sale of the Pennsylvania
company, spectators who played the
market when the common advanced
to so on the reports of the sale to
Scnwab are dealt severe blow, for
they will receive only $27 for each
share of stock which they hold. On
the local exchange Saturday the COM
mon dropped to rs, while the prefer
red changed hands at or near 80. Only
q few shares came out. There were
reports that those stockholders who
had paid high figure for their COM
mon stock would hold out for more
than the price which Mr.. Swab has
agreed to pay, but these were not
taken seriOuSly