Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-06-03
TRIPLE MERGER NEWS
CAUSES SPECULATION
Midvale Soft on Tidings That
Company Heads Cor
pOration.
NEW RECORD Fon STERLING
opening Quotation Is s4.45 "a. the
Ltikhet Recorded I'm Three Years.
SHrS ParrieA untcrmycr QucstIons
beiore Lackauanna Committee.
by II. l.. Dnrnuni.

by II. l.. Bnrnuni.
NEW YORK. June 2.-Today's
stock market displayed remarkable
strength. with Steel common. S,ude-
BAKER. and number OF other shares
making new high records for the
year. M!dvalc was soft on tho news
mat that company would head the
merger with Inland and Republic.
changing It's name to the North
american Steel Company. wall
street can see why Republic and In
!and can merger TO advantage, bu,
except for the purposes Of marketing
stock at the high prices now prevail.
Ing. compared with those Of u few
weeks ago II is dInicult 20 SEQ why
Mtdrale should hc taken in
Todays government cotton crop
bears out the earlier estimates that
This Will be "a year OF a small cotton
crop. tho condition on May % hoIng
b96. agains, Sc IA year ago and m.
'en-year average OF 7ts.
sterling made a new high record
Tor the year today at the opening.
the quotation being &ti53-4 To-
days high price waB tho highcs, In
government removed the peg"
Steel Testimony interests.
Is" far the most Interesting news
OF tho day from Wall S,reot's Wow
point was the testimony OF s,.el mon
given here before the lockwood in
FestigatinE committee. following tn.
announcement % the merger OF Re-
public. Midvale and Inland. which
VIII nave 10 rff.c"ut ~ the country'-
to'ni ingot capacity Tho Bethlehem
Lackawanna combination Kill ha,,
10 per cent. while the steel Corpora-
ton has 81. Wal! stree, takes /. for
granted that there VILE ho lust aE
close a working agreement hctwcen
these three steel combinations. con
trolling over two-thirds or tho coun
trys snroi capacity, as tho law Will
allow.
Wall street was especially inter
eHieh In tho matching OF wits he
tween the two experienced LAWYERS
Judge Gary. chairman OF tho steer
Corporation. and samuel Cut.rmyor.
counsel for the Lockwood committee.
Gary denied stoutly that tn. Morgan
nrm ran the Steel Corporation or had
the say In naming new directors. al
though he admitted that 4 4 Nor
gan named all OF tn" original dlrcc-
tors Gary declared that h" had
more TO do than anyone els. iu nam.
ing the new directors and tina, h..
and j. Pierpunt Morgan HAD dis
agreed only recen'iy On tho appoint
rncnt % three Now dlrectOt-r
Weli.intorned Wall street agreed
10 take Mr.. Gary At hts word. but
"ml,Ingly pointed out tina, he wa.
probably mighty cnreful 10 name
steel Corporation directors who
would be approved by Morgan As
to the recent disagree incut /, was
pointed gu; that the three new direc-
tors were GcorE" r BAKER Ir. a
close friend NJ ! y Morgan: w. y
Palmer. president Of American Steel
md Wire, subsidiary company. and
w. j. Filbcrt who has been an OH
Ger Of the Steel Corporation since its
tcE!nning
Morgan In Control.
No better evidence Tint the Steel
Corporation IS controlled by ]. T..
Morgan & Co can be found than
the fact disclosed today that II.
steel Corporation has on deposit
with the Morgan arm 100000
cash. for which II receives interest
At the rate az 80 per cen, while
this MONEY is loaned out in the
Street on call by tho Morgan FIRM
For the last TWO or three years cali
money has not averaged less than
l-2 or per cont. and probably
more. this difference being made bv
the Morgan Arm Cntermycr asked
Gary II he did not think it was
vicious practiic for a corporation
To lend money 20 private banking
Arm TO he loaned out on call NJ
higher rates. hut Gary would not
admit that he knew what the Nor
gan Arm did with the money.
As to whether or not tho Morgan
firm dominates the steel Corpora
lion. which, Ia turn. dominates tho
steel trade. =. {. Dinkey, president
Of Midvale. who was once president
Of Carnegie. after II was taken over
by the Steel Corporation. lc, the cat
out Of the bag while on the witness
stand. when Untermyer made him
admit tina, there would be lot
pleasanter and safer occupation
than to buck up against the Steel
Corporation with merger than was
not agreeable TO j. T.. Morgan & CO..
More Testimony Lntcr.
Now or later. more Will he heard
OF the testimony OF the independent
steel men being given before the
Lockwood committee that III" steel
Corporation Is able to underseli them
from So to IS Il ton. largely because
OF the 1000 miles OF railroad owned
by the steel Corporation. and that
independents exist only by the grace
Of the Steel Corporation.
Montgomery Ward reports sales
for May ut ss.377.oOo. against $500
600 for the same period of last year.
"h ih''t"Se ~ i''o per cent J. or
the five months, sales were s33145.-
600. contrasted with sS0,496. 600 for
the same months of 1921. an increase
OF SO per cent.
Failures reported during May
throughout the United States hv
Bradstrects numbered 1903 which
is decrease of IA per cent com
pared with April. and decrease OF
no less than s3.7 per cent, con.
trasted with this January. which |
was a high record Economists |
figure that dozen important COM
modities are now at the ton Of the |
recovery from the low prices, rep
resenting an advance of Is rcr cent. |
This ana increased buying through |
recovery of confidence accounts for
the falling off In commercial failures
during the month Just closed.