The New York herald., 1922-04-29
NEW STEEL MERGER
NOW SEEMS LIKELY
Would Include Seven COmpa-
nies Capitalized at Close
to 100000, 900.

A steel manufacturing corporation IN
Guiding seven companies with COM
bined stock capitalization of about $780,
100000 and bonded dent OF Sill .1ss.50o is
proposed under plan which Is now be-
ing discussed by the leading interests In
each of the seven companies. Represen-
tatives of each of these companies will
inspect all of the properties, making
n trip which will take all of next week
and probably longer. This is the outS
come of the meetings which have been
held with more or less regularity for
the last several days in New York and
al intervals for many months past.
The seven companies which will be
included i'm the consolidation IL the plan
goes through will be the Midvalo Steel
and Ordnance Company. the Republic
Iron and Steel Company, the Lacka-
wanna Steel Company, the Youngstown
Sheet and Tube Company, the Inland
Steel Company. the Steel and Tube
Company of America and the Brier Hill
Steel Company. The completion Of
these plans will form steel manu-
featuring corporation which will be
second in size only to the United States
has common capitalization OF $685.
3o2,5oo. together with a preferred capi-
talization of $3.50, Isl 100 and funded
debt of $o3s, ,264. .76s.
The following table gives the lineup
OF the various companies taking part
in present negotiations which are ,ex-
pected to become a part of the pro-
poed merger. together with their stock
capitalizations and their bonded In
debtedness.
Company Stock Eonda
Midvale Steel & Ord
nance Co... 500. 100000 s42, 40, 800
Republic Iron & Steel
Co. ............... s5.ooo.o0o 1s,4o1. on
Laclsawanna Steel Co 35.1os.5 .I,54s,ooa
finland Steel Co.,. 25,3c5175 5f4f Oon
Youngstown Sheet &
Tube Co........... sSO000O ...
Youngstown Steel & ~
Tube Co. pf....... a.aI4 400 ........
Steel 4 Tube Co. of
America ...:..... 'a7c.ses 1852. 900
America pf. 1850. 900 .......-
Brier Hill Steel Co.. 100000 ......N
Brier Hill Steel Co. pf 5.0o0OoO ........
'Shares OF no par value.
1t has been almost a perennial story
IN the financial district and the steel
Industry generally that the independent
steel corporations were planning q
merger and on several occasions ef-
forts have been made to get them to-
gether. But each time failure has at
tended these efforts and the plans got
nowhere. For this reason Wall Street
and the steel industry were inclined
10 view with skepticism reports that
the merger was once more under way.
For many months meetings were held
at rather long intervals. but recently
the sessions have been held almost
daily In New York, and it was said
yesterday that the proposed consolida-
tion is nearer to completion than II
ever has been before.
Kuhn. Loeb & Co.. international
bankers, are expected to be the fnan-'
c.al interests behind the consolidation.
Mortimer Schiff of that firm has been
in almost constant attendance at the
meetings Of the companies .epresenta
tives. and IL was declared yesterday
that the bankers had agreed to under
write the merger. With the representa-
tives OF these companies away on their
tour OF inspection it, is not believed
that any new developments will har-
pen during the coming week. In the
following week, however, IL Is ex-
pected that something of concrete
nature In the way of definite proposals
will be made public.
In connection with the participation
OF the Steel and Tube Company ..
America dispatches from Milwaukee
yesterday declared that syndicate in
ciuding Dillon. Read e. Co. of New
York. Harrison Williams OF the North
American Company and a. A. Schles-
niger. president OF the Steel and Tube
Company. had taken over for about
$4,000 a controlling interest In the
Schieslnger properties. These properties
include the Steel and Tube Company OF
America. the Newport Company. dye
and chemical works at Carrolville, wis
the Milwaukee Coke and Gas Company
and affiliated concerns. 1t was said
that the largest single contribution 70
this syndicate would come from the
North American Company in the
amount OF about sa.coo.co Nav York
interests mentioned In tho dispatch de.
clined TO discuss the matter