The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1922-05-12


proposed general Independent mer-
ger of seven companies. Thomas L.
Chadbourn. organizer of the inde-
pendent combine. however. was en-
phatic in his statement that the
withdrawal of the Lackawanna
would in no way affect the merger
of the other companies. which would
now be on a six-company basis.
NEW YORK. May 1.-THE Beth
lehem Steel Corporation has pur-
chased the Lackawanna steel Com
pany. 1t was officially announced
last night. The announcement gave
only the barest confirmation of the
deal. and was made on behalf Of
E G, Grace, president of Bethlehem.
Moses Taylor, chairman of the
board OF Lacaawanna, and the com
mittee appointed by 1t to deal with
the matter.
1t was said that these interests
had reached an agreement as to
terms to recommend to their respec-
tive boards of directors and stock
holders for the purchase by Bethle-
The transaction involves the use of
Bethlehem per cent preferred pro-
perties and class B common stocks
in payment for the properties"
Prices are withheld until they can
be had to stockholders of the respec-
tive companies, which will be done
as promptly a 5 possible. The direc-
tors of both companies will act on
the matter not later than next Tues
day
BOMBSHEEL TO WALL STREET
News of the merger came like a
bombshell in Wall Street. where it
had been expected that Lackaw
would go in the seven-company
steel merger now under negotiation.
1t is learned that Lackawanna in
terests had given their associates in
this deal to understand that the ne
gotiations with Bethlehem had been
dropped. II is significant in this re-
spect that she president of Lacka
wanna accompanied the steel men
on the tour OF inspection of the va
rious properties and during the trip
which ended Wednesday gave no in
timation of the Bethlehem deal.
Kuhn, Loeb & Co, bankers for the
larger merger. refused to make any
statement when informed of the
new combination yesterday, but it
can be definitely stated that the re-
naming six companies will continue
their efforts toward a merger. which
would still be larger than the Beth
lehem Lacka~anna combine in the
point OF output. These two COM
panies together have an annual ca
pacity Of 5000. 600 ingot tons. Of
which 100000 represents Lacka-
wanna's faculties. while the six
companies 10 be merged will have a
capacity of 100000 ingot tons a
year. The United States Steel Cor
poration has annual ingot capacity
of $4,000. 900 tons
ONCE SOUGHT INLAND
1t was learned for the first time
yesterday that Bethlehem contem-
plated the absorption of Inland
Steel Company last fall. The plants
were inspected but Bethlehem adop-
ted policy that prevented the sub
mission OF any offer to Inland. but
resulted in immediate inspection of
Iackawanna's plants just before
Christmas. and 1T has dickered for
them ever since, This policy has a
direct bearing on Bethlehems pres
ent activities. President Grace told
OF 1T yesterday when questioned as
TO the possibility OF the Lackawan-
ma purchase being the forerunner of
more ambitious plans involving the
taking over eventually of all the
companies which form the base Of
the contemplated stx-compaiy mer-
ger.
The directors and officials decid :
ed last fall that Bethlehem will re-
main strictly an eastern company"
said Mr. Grace. I'VE will expand as
far as we can on this side of the
country. but we want nothing to do
with the West. as we do not think
activities there would be economic
ally feasible for us"
ALL roads lead to. Chesterton.
Ind. to the Porter races. Sunday.