Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-05-12
MERGER
THRILLS STOCK
ALL ALONG LINE
Purchase of Lackawan-
ma Company by Beth
lehem Surprises Street
Other Proposed Consol-
idation to Go Ahead
With Six Members.

New York, May 11.-(By The Asso-
ciated Press. Purchase of the Lack
awanna Steel company of Lackawanna,
N. Y, by the Bethlehem Steel corpora
ton, involving the use of Bethlehem
Il per cent preferred and class 3 COM
mon stocks in payment for the proper
ties, was announced Thursday by Eu-
gene q. Grace, president of the Beth
lehem organization.
| News of the merger, which became
known just before the stock market
closed. gave Wall street real thrill.
Lackawanna Steel made net gain of
Z points. closing at 65%. There were
73 sales. totaling II, 100 shares, in the
last hour. the largest sale of 1,4OO
shares being disposed Of at So, the top,
and a new high record for the year.
The previous high was 81. The days
sales were $4,000 shares.
Buying Into Next Merger
There was less activity in Bethle-
hem Steel, which closed at 70, the top
price. at net gain of | SIS points.
OF the days trading of 1000 shares.
4,7OO were disposed of in the final
hour. Shares of the Republic Iron
and Steel company and the Midvale
Steel company, the only stocks in addi-
tion to the Lackawanna which were in
cluded in the proposed merger of
seven Independent steel companies and
traded in on the big board. also showed
substantial gains, Republic showing a
net gain of 3 points and Midvale of 134
Does Not Disrupt Other Merger
Thomas L. Chadbourne, who has
been handling the legal affairs in con-
nection with the proposed merger of
seven Independent companies, declared
that the withdrawal of the Lackawanna
would not cause an abandon
ment of the plans, which would be con-
clnded on six-company basis In
addition to Republic and Midvale, these
are the Youngstown Sheet
and Tube. Brier Hill Steel company,
Inland Steel company and the Steel
and Tube Company of America.
Was Surprise When Sprung
News of the Lackawanna- -Bethle- |
hem merger came as a great surprise |
not only to the financial district in !;
general, but to the executives of the |
independent steel companies. While |
these executives were frankly inform |
ed some time ago that the Lackawanna !
company was negotiating with the |
Bethlehem corporation. they did not |
realize that the deal was SO near con-
summation and hoped to induce the
LackaWanna to accept their terms.
George F. Downs, president of the
lIackaWanna, was one of the party of |
Independent executives on board the
'billionaire's special" which returned
o this city Wednesday after a 1O-days'
Inspection of the physical properties of
he various plants.
viii Confirm Deal TUESDAY,
Directors of the Bethlehem and
companies will hold
meetings. IN their respective offices
lext Tuesday to confirm the merger.
which is regarded as a foregone con,
fusion. On the same day, the execu-
ives Of the independent companies will
meet with representatives of Kuhn.
.oeb " CO., bankers. to arrange the
lnancing of the Independent merger,
'hlch Will involve an exchange of Sc
urlties and cash and the formation of
new holding company or the enlarge
lent of one of the existing companies.
Mr. Grace. in a talk with news
aper men. declared that the Lacka-
anna purchase has absolutely no con- ,
ection with the independent merger ,
nd he likewise denied the report that ,
ne bethieheln corporation, after alb {
orning the Lackawanna, would unite {
lth the others mentioned in the 5
even-company combination.
Mr. Stern offered to take over the .
roperhes for operation for "a term
I 20 TO % years, or such other time
$ may be agreeable" to complete the
,ahts !, at government cost and to repay
u expenditures already made at Nus
Ie Shoals at the rate of 2 per cent
nnually. Power developed at the
loa,s , would be used to manufacture I
'rliilzers to such extent as NAV be E
sasible." and other products. t.
In addition to repayments, Mr.. Stern b
roposed to give the government 60 d
er cent of all net profits from opera d
ons. h
Oir proposal allows the govern ii
ent." the letter said, "for all moneys ci
ipended. gives the farmers 10000 o
ms OF fertilizers at cost and gives the 81
'vernment large percentage of our m
,ofits, with benefit of private opera in
On. pl