New-York tribune., 1922-11-25
Midvale Steel
IL Taken Over.
BY Bethlehem
(csutinuee ssvm page sms)

CONTINUED from pass s.s)
Bethlehem's p4 sent coal &nd ors sup
plies will be of much advantage to
both sets Of properties In that cperat-
ing costs can be reduced.
"These acquisitions will constitute
an advantageous development Of Beth
lehem geographically, In that they will
supplement its present plants by a
large steel plant with low-cost produc-
tion located at Johnstown. Pa, from
which an economical distribution of It's
products can be made into the impor-
tant Central West industrial field
which Bethlehem cannot now advanta-
geously serve"
Discussing the merger informally
Mr.. Grace said that the negotiations
had been going on for three weeks.
to keep the deal secret until after IL
had been acted upon by the directors
Of both companies and, also, so that
there would be no unwarranted specu-
lation in the stocks of both companies.
Expects Trade Board Protest
Asked regarding the possible attitude
of the authorities at Washington to-
ward the purchase Of Midvale, Mr..
Grace said he anticipated opposition
from the Federal Trade Commission
but none from the Department of JUS
tice
"The case is similar to that Of our
purchase Of the Lackawanna Steel Com
pany," he explained. "We met opposi-
tion there from the Federal Trade Com
mission, but We were informed by our
attorneys and the Attorney General
that we were not transgressing the law.
We have no reason TO believe that
these conditions have been changed
with our proposed acquisition OF the
Midvale- Cambria properties"
For Economy, Says Corey
The statement made by Mr.. Corey
said in part:
"The officers and directors Of che
Mfdvale Steel and Ordnance Company
for long time have been convinced
that larger steel tonnage. wider
diversity and better distribution Of
products than their corporation enjoys
is essential TO effect the saving in
manufacturing, selling and administra-
tive costs, and the economies In min
ing ore, coal and limestone necessary
to secure the best results in the steel
business. The sale to Bethlehem has
been arranged with these things in
view"
The pending dissolution of the Mid
vale Steel and Ordnance Company, or
ganized in 1915, or soon after the World
War started, probably will mark the
passing of William f. Corey as an ac-
tive factor in the steel business, al.
though he will be elected director Of
Bethlehem.
Mr.. Corey, along with Mr.. Schwab
and A G. Dinkey, president of Mid
vale, got their schooling in the steel
business under the tutelage Of the late
Andrew Carnegie. Mr.. Schwab, when
the United States Steel Corporation
was organized, was made it's first pres
ldent. He was succeeded by Corey,
who after his retirement from that Of.
nee, was Inactive in business for
number OF years until he conceived
the idea Of forming steel company of
his own.
The stockholders meetings and The
other proceedings necessary to the
consummation of the merger will re-
quire sixty to ninety days before the
transaction can be concluded.
I'm the mean time" said MIR. Grace.
the Bethlehem management will be
acquaintirg themselves with operating
condittens at the Midvale and Cambria
properties to facilitate the taking over
OF the active management when the
transaction shall have been ratified by
the stockholders of the respective COM
paniesn Se'A