Evening star., 1922-06-02
TRICK IN Merger
RUMORS SCENTED
Crafty Spectators Profit
Through Thrills Sent Into
Wall Street.
Bx tha Associated pra.a

by tn0 Associated fresG.
NEW YORK. June mergers and
rumors Of mergers are giving Wall
street plenty Of thrills these days.
While several large industrial and
few minor railroad mergers are un-
der negotiation, conservative dnan-
cial interests agree that many OF the
merger rumors are the work Of pro-
fesstonal stock market operators who
have profited by the reflex that these
stories have had on stock prices. In
! fact, much OF the recent activity in
the various stock and produce mar
kets Is generally attributed to specu-
lative transactions made on the
| strength OF stories, true and fanc4ful.
concerning these mergers.
Bankers point out. however, that
| since the war there has been a gem
| eral tendency toward consolidation on
the part Of smaller corporations In
| order to effect economy of operations.
| Several Of the companies which prof.
! tied considerably during the war.
great expense. to reconvert their
plants to peace-t time basis and con-
! tinue operations at a profit under ex-
| listing conditions, and consolidation
| the best way out Of the difficulty.
Other corporations. which might con-
| tinue to operate at a profit, have been
! able, they add, to strengthen con-
| siderably their financial position by
uniting with larger companies de-
| sirous of obtaining a wider diversity
! OF products, better geographical con-
nections, or possession of natural re-
| sources, raw materials or markets
not previously available to them.
Origin Of Rail Report.
The Interstate Commerce Commits
sion last fan made public g report of
a plan to consolidate. the railroads Of
the country into ninteen large sys-
TENS to insure more economical op-
GRAFTON and prevent wasteful compe-
titfon and duplication of effort Vari-
| GUS industries are attempting to ac-
solidations, but it is known that their
efforts are being closely watched by
the government to prevent violations
Of the Sherman and Clayton anti
trust acts.
| Just at present one Of the most I'M
! pOrtant mergers in prospect Is that
| of the Independent steel companies.
| This originally started as seven
| company combination. but the Lacka-
| wanna Steel Company and the
Youngstown Sheet and Tube Company
| withdrew during the negotiations. the
! former being purchased by the Beth
1ehem Steel Corporation. The Ave re-
| naming companies are the Republic
| Iron and Steel, MidVale Steel and Ord
| nance, Inland Steel, Brier Hill Steel,
| and Steel and Tube of America While
| an effort is being made to conclude
the merger on q dve-company basis,
1t is probable that the final combina-
ton will consist Of only three COM
panies-Republic, Midvale and In
land. The other two are still in the
picture" but nevertheless some dis
Itance from the others on the question
of terms.
Another merger, consummation OF
which is expected soon. is that Of the
Cuban-American Sugar Company and
the National Refining Company of New
Jersey. This will be stock transac-
ton, details of which are being worked
out.
Machine Tool Merger.
Progress also is being made. it is re-
ported, on a merger Of several machine
tool companies. Concerns mentioned in
| this connection are the Belts Machine
Company of Rochester, Coburn Ma
chine and Tool Company of Cleveland,
Modern Grinder Manufacturing Com
! pany 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 effected,
| however, 1t is believed that one or more
| Of these companies will not be included.
| G.. K Lassiter, former vice president of
| the American Locomotive Company,
| has been mentioned as the head Of the
| proposed merger.
Automobile companies also have fig-