The sun., 1916-02-02
S200,00o,000 STEEL
MERGER COMPLETED
Youngstown, Cambria, Lack
awanna and Others
Combine.
SECOND LARGEST IN L, s..

II was learned in Wall street yester-
day from interests close to the bankers
and steel men mentioned in connection
with the plans TO merge the youngstown
Sheet and Tube Company. the Cambria
Steel Company and the Lackawanna
steel Company that the consolidation
has been effected and calls for the in
corporation of a 5000, 100000 company.
Formal announcement Of the merger will
be made shortly.
The new concern will be called the
International steel Company and will be
capitalized at 100000, 900. par value
$50. of which sls0,00o.00o will be for
Stock Exchange and market purposes.
An issue of $40. 900. 900 OF stock to he
brought out Immediately will provide
for new financing connected with the
merger.
Plans for the consolidation Of the three
companies were considered ny a COM
mittee composed OF Frank a. Nanderlip.
president uf the National city Bank
Mortimer l.. SchiN OF Kuhn. Loeb &
60. Harrison Williams, chairman of the
board of the Cleveland Electric lllumi-
mating Company and director Of many
companies In the public utilities field.
and James \. Campb"ll, president Of the
Youngstown Sheet and Tube Company.
This committee agreed upon the terms
OF the merger the latter part OF last
week and the three companies will par
ticipate at these prices; Cambria Steel
so; Iackawanna steel. 30, and Noungs-
town Sheet and Tube 400. The financial
backing has been secured, and kuhn
Loeb a 20. will underwrite the stock.
Will, the three companies mentioned
form the nucleus OF the new $2oo.Ouo.oO
corporation. it is understood that smaller
Independent steel concerns will he ab-
sorbed, among them a lake district COM
pany. probably tho Inland Steel COM
pauy. and possibly larg, tidcwater
shipyard.
The aggregate captsl OF the three
companies is approximately tlo7.'3o.oo0.
Tho total outstanding stock OF tn"
Youngstown She, I and Tube Company
amounts to 10000 QUO preferred and
$4,000 400 common At the rate agreed
upon 6t.Coo. 900 new stock VIII be is
sued In exchange for Youngstown S."uri-
ties For the S3t.7so.00o stock of the
I.ackawanrd COMPANY s3i,? 90" VIII
h. exchanged and s7..o0ouoo %, u"w
stock will be issued in exchange for tn"
H5 ,O0o. 900 stock Of the Cambria Steel
Company. which has parity of $40.
Jan,> A. Campbell will probably u"
the president uf the new comptNE dnd
!. l.. Rcploglc viii he first Nice-pr"si1cnt.
while Harrison Williams. Frank \. Van
derlip Mortimer T.. Srhir. Moses IL Tay-
lor aud others will hc directors.
The National CITY Bank and br' N"l 4
co. Of Philadelphia Will not participate
In the merger uudcrw ritirg, but thu lat
tor company has tiEufcd ia tn" rcrotia-
tions a. representing the ,cllug "'d ~
the transaction along with N"ll'u Ma
tional RAMS interests of i'ittshurc
The Irw company viii have Il capacity
for a yearly production uf nearly 1880
600 tons uf finished steel and VIII he tn"
second largest steel "nnipinN IN America.
The plan for "a consolidation Of inde-
pen,ient steel companie%S was brought tn
the front following tho financial coup Of
T. Leonard R.plogl". Who purchased a
block of 80. 600 shares nf Cambria steel
Company stock held 10y the fcnnsyl-
vania CompallN. which formerly had
control uf the steel company