The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1922-05-20
ONLY FIVE
COMPANIES
T0C0Mb|NE
Was Considered One of
Strongest Of All Com
panies in Merger
BY WILLIAM l.. AYERS

NEW YORK, May 20. Youngs-
town Steel & Tube Company uncere-
moniously Withdrew yesterday from
the proposed merger Of the inde-
pendent steel companies. which, fol-
lowing Thursday nights detection
OF Lackawanna Steel. leaves only
five of the original negotiators.
These hre are now continuing their
conferences to determine whether
il is advisabl to consider the con-
solidation of all or some of the COM
panies." according 10 Thomas L.
Chadbourne. one OF the promoters
council, who has acted as spokes-
man for the sroup.
This development came as a sur
prise, except TO associated steel in
dustries. and stands IA the biggest
mystery wall Street has had to pun-
der over in some time There were
four possible reasons advanced in
explanation, but a careful check in
wellinformed quarters definitely
kills each OF these conjectures.
James A. Campbell, president OF
Youngstown, refused to discuss the
causes of his company's withdraw
al beyond saying it was an indi-
vidual matter affecting only Youngs-
town, and was not due to any threat
of governmental interference. as
there was nothing in the contem-
plated merger contrary to law.
The steel men declared emphatic
ally also that Youngstown or its
officials had not received any ad-
vances from any other concern as
to a merger, had not been and did
not expect TO be. With these re-
marks he brushed aside questions as
to possibility of joining the Beth
lehem- ckawanna duo and the pos
sibility OF reviving the original tri-
corner deal between. Youngstown.
Inland and Steel & Tube.
NO DISAGREEMENT ON TERMS
From information obtained from
high sources II can be further stat
ed definitely that there has been no
disagreement as to terms. Youngs-
town, it is learned. has submitted
figures as TO the percentage or
rights and capital 1T expected from
the combined company. and there
was little doubt tina: they would
be accepted by all the other con-
ferees. 1t is equally true that
there was no disagreement as 10
mana cement, as the bankers had
decided. and the steel men unani-
mously agreed that Mr.. Campbell
as to act as chairman OF the board
and chairman of the executive COM
lnittee. Thus the four possible ex-
plantations OF Youngstown's with
drawal are killed. They are: First,
tear OF government Intervention;
second. more favorable offers for
another merger; third, disagreement
as to terms, fourth. dissatisfaction
with proposed management
RUMORS ALL DENIED
The question which Wall Street is
trying to answer is just what was
the reason?" and thore seems little
chance Of 1t becoming known very
soon, as a number of men in posi-
ton to know were quizzed without
avail Some of these set at rest
the various rumors afoat-
The sole official information is
the statement by Mr.. Chadbourne.
which says:
The repre- esen tative OF the
Youngstown Sheet & Tube Company
at a meeting yesterday of all rep
resentatives of the six-cornered
merger. advised that they had
reached the conclusion not to par
teipate further in the proposed con-
solidation. Conferences among the
other five concerns are continuing
TO determine whether il is advisable
to consider n consolidation of all o-
some OF these companies"
The loss Of youngstown is blow
to the plans for the independent
merger, particularly in view of the
frures on its position now made
public for the first time. In some
respects. however, the Ave COM
panies are Just as strong as six.
namely they still have the same
complete line of products. and the
same geographical location OF
plants.