The New York herald., 1922-06-03

the people who are gambling In the
stock? A. don't know anything about
the people who are gambling in the
stock.
Q. Sure about that? A. Never have
Mr.. Untermyer.
O. l am talking about now not about
the past. This committee feels greatly
outraged at the attitude of yourself and
Mr.. Dinlkey in your testimony of yester-
day. A. l am very sorry they do.
Q. They feel you have not been frank
with the committee. A. | won't char
acterize the point of view Of the commit
tee on how they feel about it,
Q. Do you know how many shares or
stock of the Republic Steel have beeA
dealt in in the last couple of weeks? A.
Certainly not.
Q. Do you know how many have been
dealt In as compared with the dealings
OF last year in the same stock? A. / do
not.
Q. The preferred stock of your COM
pany has taken quite a jump. hasn't it !?
A. think it has advanced somewhat.
Q. One of the conditions of this mer-
ger provides for the payment of pa st
accumulated dividends on your preferred
stock doesn't it? A. 1t does
Q. That cash is to be provided by
Kuhn, Loeb & Co., isn't it? A. BY the
syndicate.
@. BY Kuhn, Loeb & Co, who are
the managers of the syndicate They
are bankers who are to provide the
cash? A. Yes.
Topping Not In syndicate.
Q. Are you in the syndicate? A. am
not in the syndicate.
Q. You are going to be? A. cannot
tell you what ] am going to do. 1t may
be many things.
@. You say Kuhn. Loeb & Co. are to
raise maximum of s65, 900, 900? A..
That is my recollection.
Q. OF which s24.000,0 900 Is to be raised
on preferred stock at 95 and $40 900 900
on common at par. common stock at so.
less commissions and bonuses? A. So I
understand
9. Where is the other twenty million
to be raised. on what form of security I?
A. No, security as far as I understand.
Q. If l understand you Il was to be
sixty-five million? A. That is the cash
syndicate fund.
Q. People do not pay cash into a COM
pany without getting something for It?
A Part of the syndicate fund believe.
Q. What are they to get for it? A.
What are they to get?
O. Yes. for the $4,000. 900. They are
to get twenty-five million preferred,
twenty million of common stock what
else are they to get? A. The syndicate
buys outright at TWENTY-FIVE and twenty.
That is all they huy.
@. And they agree to supply twenty
million dollars more? A. Not to the
company.
Q. To whom are they to supply it? A.
1t goes to the syndicate.
Q. What are they going to do with II?
A. Such purposes as they want to use
it for.
@. Don't you know it is to be used for
dealing in the stock? A. That or other
purposes whatever their judgment
might suggest.
O. 1t is to be used for trading in the
stock. TO make a market for the stock? :?
A. 1t might be.
c. You know that. don't you YOU
have to make a market in transaction
of this lSind?> A. If there IS no market
there won't be any sale
@. If there isn't market there Is
nothing doing anyway? A. No.
Not TO Sell Plant.
Q. Nobody will sell his plants that is
right, isn't it? A. Not necessarily.
Q. You know perfectly well that you
don't want stock that is not market
able. A. l know perfectly we'll /
am not going into the deal sor the pur-
pose of selling stock.
Mr.. Dinkey of the Midvale Company
pleaded ignorance of the pending COM
pletion of the merger when lie was on
the stand on Thursday. lie said the
directors of the Midvale had authorized
w. 4. Corey TO conduct the negotiations
and he did not learn that the deal had
gone through until after no left the
stand.
Mr.. Chadbourne and Mr.. Topping will
be asked to-day to produce the agree
ment with Kuhn. Loeb G. 20. and also
copies OF the merger agreement signed
on Thursday by the executives of the
Midvale. Republic and Inland steel
cnyonanies