Every evening, Wilmington daily commercial., 1922-11-25
BETHLEHEM STEEL
ABSORBS M|DvALE,,
SlO0,0OO,0OO DEAL
jngot Capacity Will be Nearly
Doubled by the Charles N.
Schwab Company.
COREY EXPECTED 10 RETIRE

Philadelphia. Nov. e5.-Sitting I'm
offices high above Wall Street. two
. groups Of men virtually completed n
si0o.oco,ooo deal yesterday. afternoon.
when they agreed. Charles NJ.
:, hwab's ambition to make his Beth
lehcm Steel Corporation n formid-
able rival Of the great United States
Steel Corporation had moved another
step nearer its goal.
stripped OF its complicated details.
IN. transaction means that Bethle-
hem steel will take over the Midvale
Steel and Ordnance Company, one OF
the most important independent steel
companies in the country. and the
Cambria Steel Company. Practically
all the Cambria capital stock is owned
by Nudvale.
n means. also. the retirement. as
a powcr In the steel industry, OF Will
liam T.. Corey. Chairman of Midvalc's s
Hnard of Directors. He was the see.
Vnd President OF the United States
steel Corporation. having succeeded
Charles NJ Schwab. when Mr.. Schwah
HIT 20 htSld up the Bethlehem com
pany. Mr.. Corey. IL is believed, will
T., ome Bethlehem director. despit,
street. that he and Mr.. Schwab ar,
not the best OF friends.
The purchase plan was worked on,
10y Mr. Corey and Eugene G.. Grace
President OF bethlehem. but its de,
tails were approved by Mr.. Schwab
iatihcd by the directors OF Rethle.
h,m and Nidvalc yesterday. IL now
av ats formal ratification by stock
holders and legal sanction by tho
uitcd States Government.
Although no opposition is 10 he ex.
pc,ted from Attorney General Daugh-
,rty. Il is certain the Federal Trad,
Commission will file formal COM
rlsint charging that the plan consti.
tutss a move 20 reduce competition.
BY absorbing Midvale and Cambria
thc bethlehem company VIII increas,
its present annual ingot capacity o'
ise0.o 600 tons 10 1900 900 tons. The
capacity q. the United States Stee
Corporation is about 100000 tons 5
year. bethlehem Will also obtain 3
geographical advantage in the dis
additional plants.
The acquisition will give 10 Bethle
hem important lines Of steel product,
which IL docs not now manufacture
such as wire rods. wire and wir'
prcducts, steel freight and mine cars
steel wheels. boiler tubes and acri
cultural implement parts In fac
the company Will be able to produc
AL commercial steel products excep
pip~ and seamless tubes. For th
production OF these Bethlehem Wi
tuiid plants a.; one Of its existin
prcperties.
The plan does no; involve Cambria
ordnance plant at Nicetown. Pa. q
IRE assets aprurtenant 10 IL. Wit
this exception al plants and assets @
Midvle and Cambria will be absorbed
Tho Nice;ovn plant Will be transfer
red 20 q new corporation.
In raymcnt for the properties 20 h
acquired Bethlehem. besides provid
irg Cor the assumption q. the bond
and other indebtedness Of Midvale an
cambria. will issue ss1.s5o, 600. pa
value. bethlehem common stock. c
this IS. coo 900 will GO 10 the Midvsl
company for distribution on dissc
luton to it's stockholders and the res
u1ll go 20 holders of Cambria stoc
act owned by Midvale.
Midvale stockholders VIII receiy
for each two shares OF $50 par valu
Nidvale stock sos. par value. OF Beth
lehen common stock. together with
rro rata shaie of the stock OF n
corIiors tion that viii he formed
take over the Nicetown ordnanS
plant