Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-05-17
WALL STREET GOSSIP
MY MONITOR.

NEW YORK, May 17.-Although stee
stocks reacted bit yesterday. especially
the Bethlehem and Lackawanna issues
the Street is still filed with rumors con
corning steel merger plans. The pur
chasce price agreed TO be paid by Bethle
per cent preferred stock and class "B'
common stock equal to the par amount o.
the stock of Laekawanna outstanding
$35, los, 800, consisting of 40 per cent IL
the seven percent preferred stock and 8,
per cent in the class "B" common stock
of Bethlehem, with an option in Bethle
hem to reduce the par amount of the pre-
ferred stock and increase the par amount
of the class B" common stock to be de
livered by S1,543, 100 upon payment Of ap
proximately 100000 in cash. Bethlehem
Is also 10 assume the debts and obIiga
tions Of Lackawanna.
Lackawanna Steel stockholders me,
Tuesday and approved the purchase by
bethlehem Steel OF all its properties and
assets.
There were no Developments of impor
-tance in the "six-company merger plan
although officials of the companies con
Kuhn, Loeb & Co. Steel men who wer,
approached after the meeting said tina
no statement would be ready at this time
and it IL probable that this merger il
last week when news Of the withdra wa
OF Lackawanna was received.
One report, which was put out on some
wires here and which gained consider
able credenee in the late afternoon, was
to the effect that the leaders Of the six
company merger plan were to make adj
yances to the bethlehem Lackawanna In
terests with an idea OF forming an In
dependent merger consisting of Bethle-
.em LackawanHa, Inland, Youngstown
Sheet 4 Tube, Midvale, Steel & Tube
o. America, Republic and Brier Hill. 1t
is also understood that this merger
would accept leadership of Charles
Schwab and Eugene Grace.
Tobacco stocks, especially American
Tobacco and z. Lorillard. were fairly
firm. These two stocks have been selling
on very high yield basis, although both
companies are in a strong financial po-
sition and business is good enough at
least to justify the belief that the divi-
dend is safe. Defiation of cigarette prices
has made large inroads on the earnings
Of these companies for the current year,
while the total turnover is also slightly
smaller.
American Ice showed a fash OF
strength, and closed AZ points higher
Ice was one of the speculative favorites
On the movement which carried stocks to
present levels, but for the past two or
three weeks has been backing and filling
with very little feature in the trading
However, a dividend meeting is due In
the near future and this fact has given
rise to g recurrence Of rumors concerning
the possibilities Of an extra disburse-
meut
II is generally believed that the plan
Tor the exchange Of stock of the Cuban
American Sugar for National Sugar Re
firing Company is practically ready and
viii soon be submitted to National Sugar
stockholders 1t is understood that the
letter containing the detailed terms of the
transaction is only awaiting final Legal
approval
Action of the Federal Mining and
Smelling Company is increasing the quar-
terly dividend from the basis of l pei
cent to IL per cent is understood to be
a direct reflection OF the much stronger
position OF the lead markets, as lead Is
one of the principal products of this
company Prices have been firm in the
metal market, and the heavy volume OF
building which has been going on
throughout the country is probably max
ing heavy drain upon jobbers' stocks
Atlantic Coast Line 1921 net income was
S1,790569 after taxes and charges This
is equal TO S2.G3 per share, as against
S11.30 per share in 1920.
Consolidated Gas is holding firm and
scored a further advance Of 1hs points In
late trading. Recent rate decisions have
been very favorable to this company and
the market is looking for some action
which will permit stockholders to share
in a distribution of surplus assets of the
ocmpany.-Copyright, 1922, by Public
Ledger Company.