The Birmingham age-herald., 1922-06-08
PROPOSED TERMS OF STEEL MERGER
 ARE MADE PUBLIC
Officials Claim Increased Economy Will Result From Combination of Three
 Large Companies
By Associated Press

New York, June 7.-The terms of the proposed merger of Midvale Steel and Ordnance company, Inland Steel company and Republic Iron and Steel company, with issued capital of $132, 2,814,5s7, were made public to- night in letter to stockholders.
 It was signed by W. F. Corey. L. F. Block and John A. Topping, chairman of the boards of the three companies. They stated that de- tails of organization had not been definitely settled and that the plan was subject to changes to meet con ditions and the opinion of counsel.
 The Midvale and Inland com panies will consolidate and take the name of the North American Steel corporation. the letter explained, and this corporation will acquire. subject to it's liabilities. the assets Of the Republic company.
 Before the unification of the prop critics" the letter added, "Midvale will take It's Nicetown plant and cer- tain assets and liabilities connected with the operation of 1t, in separate corporation, stock of which will be distribute pro rata among the stock holders of the Midvale company. This separate corporation will there after continue as separate enter prise for the manufacture Of or dinance, armor plate and special steel products to which 1t Is adapted
 New Capitalization Plan
 ia 1- mated plan, comprises $79, 9,173,5o0 in bonds and other fixed charge obliga- tions: s5o,331,475 new preferred stock of sl00 par value and 3,5o3,6l2 shares of new common stock without par value.
 The bonds and fixed charge obliga- tions will consist of s6o.5ss,50o bonds and guaranteed obligations of the Midvale company or Its subsidiaries; s13.357.o .oo0 and other obligations of Republic or it's subsidiaries and $5.- 1000 bonds and other obligations of Inland, all of which. in addition to the other liabilities of the three Companies, are to be assumed by the corporation.
 The preferred stock is to be ' per cent cumulative and convertible un- til July 1, 1884, into common stock. four shares of preferred for five of common and Is to be redeemable at the option of the corporation at 115 per cent and accrued dividends.
 Provide Cash Requirements
 Kuhn, Loeb & Co. have agreed to act as bankers for the plan, the let ter said, it being intended that a sym dicate will be formed to provide for the cash requirements of the merger. including s20000,0o0 additional cash working capital which will make the new corporations total working capital more than sf00,000. .000.
 The plan contemplates." the let ter added. that the corporation will sell to Mir. Thomas l.. Chadbourne, for services rendered. 25.500 shares at $20 per share and to Messrs. Kuhn. Loeb & Co. 59,500 common shares at $10 per share"
 Among essential reasons given for the proposed merger were increased economy resulting from the mining limestone under one control, together with the economic advantage of bet ter distribution for the use of such products"
 With plants located at Johnstown. Pa, Coatesville, Pa, Youngstown, O., Nii>s. O.. and Chicago" the letter concluded. land with facilities for steel production in the southern field in Birmingham, Ala. the company will be in better position to serve the consuming trade with a larger diversity of products and to effect a substantial saving In the selling and administrative costs,''