New-York tribune., 1920-04-29
Steel Merger Report Again Revived


Reports that merger of independent
steel companies is in the making per-
sist despite the denials of officials.
Not long since dispatches from Cleve-
land purported to give certain details
Of a combine that would include Lacka-
wanna, Inland Steel and Youngstown
Sheet and Tube, but leading interest
of one of the companies stated that
merger of the three was not being con-
sidered. Yesterday the Street heard
that Bethlehem, Midvale and Lacka-
wanna may eventually merge their in
terests. Midvale official stated that
his company had no thought of going
in with the other two in any con-
solidatlon program. Financial inter-
ests believe. however, that Mr. Schwab
pendent steel companies of which the
Bethlehem would be the nucleus They
said that he may have been awaiting
the outcome of the Steel Corporations
antitrust suit to proceed with his
plans. A new angle to this situation
cropped up yesterday in the applica-
tion of the government for rehearing
Of the case. Should this be granted it
is believed that any projected consoli-
dation of the leading independents
would be deferred Indefinitely.
Steel Common Reacts
The failure Of United States Steel
common to respond to the splendid
earnings statement of the corporation
for the March quarter was the signal
for a renewal of operations by the
bears yesterday, and the stock, after
opening from 81 to 96A, dropped to
95A shortly after midday, new low
on the present decline. A slight rally
at the close carried the price back to
90, where a net loss of rs points was
recorded. The chief reason heard in
the Street for the weakness in Steel
was the fact that the directors at
Tuesdays meeting did not declare an
extra dividend. But this explanation
was hardly regarded as logical one,
especially in view of Judge Gary's re-
marks at the annual meeting about
times of strained credit. Those con-
versant with the corporations policies
expressed no surprise that only the
regular dividend on the junior stock
issue was ordered at this time.
The Motors
Selling Of several of the motor shares
yesterday was based to some extent
upon reports of the extremely unfavor-
able conditions under which many Of
the companies are now operating, due
to the rail strike. From Detroit word
reached the financial district that
automobile factories there which have
been operating on a so per cent basis
for the last ten days are threatened
with a complete shutdown. The prin-
cipal difficulty appears to be that of
obtaining fuel supplies in sufficient
quantities to keep the machines run
ming. If the situation continues much
longer it will likely force number OF
the companies to revise their produc-
ton schedules.
Investment Market Quieter
After period Of what was termed
gratifying activity bond men said yes
terday that the investment market has
again relapsed into a state of leth-
argy. From the middle of March up
to April 20,' said dealer, "the public
response to new issues was quite sat
isfactory, but we are again confronted
with the fact that the public is not
buying investment securities This
may be due to the setback that has
taken place in the stock market but 1t
is also probably due to the great vol
ume of undigested securities that are
on the market. 1t would seem that it
would be wise to hold off from new
offerings for while to give an oppor-
tunity for the recent issues to become
better digested. 1t is noteworthy,
however, that life insurance companies
continue to buy investment securities
at their present attractive prices"