The New York herald., 1922-11-25
BETHLEHEM CO. BUYS
MIDVALE-CAMBRIA IN
$456,O0O,O00 DEAL
Merger Follows Abs rptiOn
Month Ago of .dcka-
wanna &seel.
CUTS OPERATING COST
Z. G. Grace and w. E. Corey
Expect Better Distribu-
ti0n of Products.
NICETOWN PLANT APART
New Company to Run Ord
nance Organization for
Old stockholders.
NICETOWN PLANT APART

Another steel merger, effected
through the purchase by the Beth
lehem Steel Corporation of most of the
properties Of the Midvale Steel and
Ordnance Company and it's subsidiary,
the Cambria Steel Company. was an
nounced yesterday. The consolidated
companies will have capitalization
I'm stock and bonds of almost $685.
900, ,O00' The purchase follows the abb
sorption a little more than month
ago of the Lackawanna Steel Com
pany by the Bethlehem corporation.
All of the Midvalc properties will be
taken over with the exception OF the
ordnance plant at Nicetown. That plant
will go into new company the stock
OF which will be distributed pro rata
among present Midvale stockholders.
'The basis of exchange of Midvale stock
for Bethlehem will be two shares of
Midvale for each share of Bethlehem
common.
L.. G.. Grace's Statement.
Eugene c. Grace. president OF the
Bethlehem Steel Corporation. in an
;ouncing the purchase of Midvale. made
the following statement:
I'm payment for the properties to be
acquired Bethlehem Steel Corporation
besides providing for the assumption
OF the bonds and other indebtedness OF
the Midvale and Cambria companies
excepting current Liabilities appurten-
ant TO the operation of the Nicetown
plano. viii issue about s97 $4,000 par
value, OF the bethlehem common stock.
% which SF5oOo.9J0. par value, VIII go to
the Mdvalc company for distribution
or dissolution 20 it's stockholders. and
the balance TO tho holders of the stock
OF Cambria not held by Midvale. As a
result OF these purchases the stock
holders of the Midvale company will re-.
ceive for each two shares OF 80 par
value, of the Midvale Company stock.
s95. par value, OF the Bethlehem com.
mon stock. together with a pro rata
share of the stock of the new corpora
tion to which che Nicetown plant and
the assets appurtenant thereto are to
DC transferred
The board of directors OF Bethlehem
Steel Corporation has authorized these
additional acquisitions in pursuance OF
its policy of building up a complete
line OF steel products which II has fol-
lowed ever since Mr. Schwab and his
associates became Interested in Bethle-
hem. Through the acquisition OF the
properties OF the Midvale and Cambria
companies Bethlehem will acquire plants
at Coatesvillc and Johnstown. Pa. and
Wilmington. Del, and important de-
veloped iron ore properties In Michigan
and Minnesota, as well as developed
toal properties In Pennsylvania. The
ability 10 distribute and mix the Mid
vale coal and ores with Bethlehem s
present coal and ore supplies will be
of much advantage to both sets Of
properties in that operating costs can
be reduced.
Extends Line OF Products.
The acquisition of the Midvale and
Cambria properties will give TO Bethle-
hem important lines of steel products
which II does not now manufacture,
such as wire rods. wire and wire prod
ucts, steel freight and mine cars. steel
wheels. boiler tubes. agricultural i'm
plement parts. &c. in fact. II, Will place
Bethlehem in, position to produce all
the so-caled commercial steel products
with the exception Of pipe and seamless
tubes. For these Bethlehem is planning
to build plants at one Of It's existing
properties.
"Bethlehem's present annual ingot
capacity OF $4,000 tons will be in
creased to 100000 tons by the Mldvale-
Cambria purchase.
THE combined investment in prop
erty and plant. less depreciation and
depletion. will be about sis5,5oo.00o and
the aggregate net quick assets will be
about sl33. .700.00o.
The stockholders meetings and the
other proceedings will require sixty to
ninety DAYS before the transaction can
n, concluded. In the meantime, the
Bethlehem management will be ac-
ouainting thmselves with operating
conditions at the Midvaie and Cambria
rroperties so as to facilitate the taking
over of the active management when
the transaction shall have been ratified
by the stockholders OF the respective
companies"
w. T.. Corey. chairman OF the Midvaie
Company. said: THE officers and d.
rectors OF Midvale Steel and Ordnance
Company have for a long time been
convinced that n larger steel tonnage. a
wider diversity and better distri-
button of products than their corpora
ton enjoys is essential to effect the
savings I'm manufacturing. selling and
administrative costs. and the economies
Ir mining ore coal and limestone,
necessary to secure the best results "
the steel business. The sale 60 Beth
iehem has been arranged with these
In toxg