The Birmingham age-herald., 1922-06-02
ANNOUNCE MERGER OF THREE LARGE
 STEEL COMPA PAN|ES
MidvaIe, Republic and Inland Combine-North American Steel Corporation Is
 New Name
By Associated Press

New York. June 1.-Thomas l.. chadbourne, attorney, late today an- nounced adoption of a plan whereby the properties of the NTidvale Steel and Ordnance company. Republic Iron and Steel company and Inland Steel company, will be unified under own ership of Mdvale. The name of the rev corporation will probably be ths North American Steel corporation.
 The terms of the plan were out lined as follows:
 "All existing obligations of the three companies are to be assumed by tho unified company. Existing preferred and common stocks will be changed into preferred and common stocks of the unified company. The value of sfo0 per share. Is to be per cent cumulative; is to be redeem able at s115 per share, and ac- erued dividends. and is to be con- mon stock at the rate of five shares of new common for four shares of new preferred The common stock is to be without par value.
 "All assets of the three companies are to be owned by the unified com pany except the Nlcetown plant tarmor- making, ordnance and forg- ing). of the Midvale Steel company which is to be transferred to a sep-5 arate company with a capacity of 100000 shares without par value.
 Participation of tho new stock viii be as follows: Under the plan Mid vale companys stockholders will re- celve T5 per cent new common stock and 25 per cent stock in the com. pany formed to take over the Nice town plant.
 Republic Iron and Steel preferred stockholders are to receive dividends in cash. to date, when the new pre- ferred dividend begins to accrue and 100 per cent in new preferred stock.
 Republic Iron and Steel common stockholders arc to receive 25 per cent new preferred stock. which is to be purchased from them at s95 share and TO per cent new common stock:
 Inland company stockholders ars to receive 25 per cent In new pre- ferred stock. which Is to be purchased from them at s95 per share. and 70 per cent in new common stock.
 Tt is intended to provide S20,ooo.- GOO additional cash working capital from the sale of common stock"
 Negotiations are pending, MT. Chac- bourne says, for the acquisition of other properties. but irrespective os the outcome of these negotiations Midvale, Republic and Inland com panies propose to proceed with these merger plans.
 Financing will be handled by Kuhn, Loeb and company.
 The Republic Iron and Steel com pany has blast furnaces at Birming- ham. Ala. and Youngstown, O.. steel works tube works. sheet and bar mills and a bolt and nut works nt Muncie. Ind, a special mill at Daven- port, Ia, and small plant at Chi cago.
 Coal In Alabama
 The company has coal mines in Alabama and Pennsylvania and Iron ore deposits in Alabama and "the Wisconsin and Minnesota. The Mid vale locations are at Coatesville and Johnstown, Pa, with coal deposits in Pennsylvania and iron ore in the lake country.
 The Inland plants are at Chicago, with coal in Pennsylvania and south ern Illinois and iron in the lake regions.
 The combined annual ingot ton capacity of the three concerns Is about 5.2S0.000. The entire total of the country is about 50,o0o,000, of which the United States Steel cor roration has about 45 per cent. it was said, by John A. Topping, chairman of the Republic Iron and Steel com pany ir testimony today before the Lockwood housing committee.
 The Bethlehem and Lackawanna. combined. he thought. have 5,o00,- 900 ingot ton capacity. The Lock wood committee made an unsuccess- ful effort all day to learn something about the merger before 1t was an- nounced. calling one steel magnate to the stand after another. Each gave the impression that there was noth- ing definite on paper as yet. and
 tContinued on page tsvo)