New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1922-06-02
MERGERS FURNISH
Wall ST. thrills
Steel and Industrial Concessions
Link Business

New York, June 2. (The Associated
Press)-Mergers and rumors of mer
gers are giving Wall Street plenty O
thrills these days.
While several large Industrial ant
a few minor railroad mergers ar,
under negotiation, conservative imam
cial interests agree that many of tn,
merger rumors are the work of pro
fessional stock market operators whit
have prof1ted by THE reflex that thes.
stories have had on stock prices. II
fact much of the recent activity in thu
various stock and produce markets II
generally attributed to speculativ.
transactions made on the strength o.
stories, true and fanciful, concerninE
these mergers.
More Consultations.
Bankers point out. however, that
since the war there has been gen
eral tendency toward consolidation or
the part of smaller corporations in
order to effect economy OF operations
Several of the companies which profit
ed considerably during the war, they
explain, are unable. save at great ex.
pense, to reconvert their plants to a
tions at At profit under existing con-
ditions, and consolidation with other
companies is recognized as the best
way out of the difficulty. Other
corporations, which might continue to
operate at q profit have been able,
they add, to strengthen considerably
their financial position by uniting
with larger companies DESTROYS OF OBJ
tanning wider diversity of products;
better geographical connections, or
possession of natural resources, raw
materials or markets. not previously
available to them
The Interstate Commerce Commits
sion last fall made public a report of
a plan to consolidate the railroads of
the country into 10 large systems to
insure more economical operation and
prevent wasteful competition and du-
plication of effort. Various indus
tries are attempting to accom- plish
the same purpose by consultations,
but 1t is known that their efforts are
being closely watched by THE govern
ment to prevent violations of the
Sherman and Clayton antitrust acts.
Just at present one Of the most i'm
portant mergers is prospect is that OF
the. independent steel companies.
This originally started as a seven COM
pany combination, but the Lackawana
Steel Company and the Youngstown
Sheet & Tube Company withdrew
during the negotiations, the former
being purchased by the Bethlehem
Steel Corporation. The Ave femain-
ing companies are the Republic Iron
and Steel. Midvale Steel and Ord
nance. Inland Steel. Briar Hill Steel
and Steel and Tube of America
While an effort is being made to con-
clude the merger on a Ave company
basis, it is probable that the final
combination will consist Of only three
on1panies-Republic, Midvale and
Inland. The other two are still in
the picture" but ndHertheless some
distance from the Others on the aues-
ton of terms.
Some Big Mergers.
Another merger, consummation Of
which is expected sooa is that Of the
Cuban American Sugar Company and
the National Refining Company of
New Jersey. This will be a stock
transaction, details of which are being
worked out.
Progress also Is being made, 1t is
reported, on merger of several ma
chine tool companies. Concerns
mentioned in this connection are the
Metts Machine Company. of Roches-
ter Coburn Machine G. Tool Com
pany, of Cleveland Modern Grinder
Manufacturing Company, of Erie, Pa;
Carlton Machine Tool Company, OF
Cincinnati; Hilles & Jones' Company,
of Wilmington, Del; and the Dale
Machinery Company, Of this city.
When the final combination is effect
ed, however, it is believed that one or
more OF these compaoies will not be
included c. K Lassiter, former
vice president Of the American Loco
motive Company, has been mentioned
as the head of the proposed merger.
Automobile companies. also have
figured in the merger news but so far
as known no definite negotiations are
in progress. Plans for a combina-
ton OF the Lafayette and Pierce
Arrow companies were recently |
abandoned after a protracted series
of conferences, following inability to
agree upon terms.
Oil Trade Increase.
The oil trade here is daily expecting
word Of purchase of the Boston &
Wyoming and Mountain &; Gulf Oil
companies by the Mutual Oil Com
pany, which is anxious to increase its
holdings in the Salt Creek fields of