The New York herald., 1922-05-20
Follows Lackawanna Action,
but Does Not Contemplate
Any Union.
ACTION BLOW TO COMBINE
Union of Five Remaining
Companies Is Problem
atical.

The Youngstown Sheet and Tube
Company, one of the most important
of the six independent steel corpora
tions planning huge consolidation.
withdrew yesterday from the confer
ences and advised the five other COM
panies that it had no intention of par
ticipating further in their meetings.
The announcement led to specula-
tion as to whether the withdrawal,
coming after that OF the Lackawanna
Steel Company, which was acquired
last week by the Bethlehem Steel Cor
poration, will put an end to the nego-
tiations and cause the abandonment of
all the merger plans. James A. Camp
bell, president Of Youngstown, had
been chosen chairman of the board and
of the executive committee of the con-
solidated company.
Thomas L. Chadbourne. counsel for
the companies In their merger plans,
announced the withdrawal of Youngs-
town after the meeting Of representatives
of the six companies at Kuhn, Loeb 8
Co.'S yesterday afternoon.
statement OF withdrawal.
His statement was as follows:
.'The representatives Of the Youngs
town Sheet and Tube Company at 8
meeting to-day of all representatives oi
the six cornered merger advised thai
they had reached the conclusion not to
participate further in the proposed con-
solidation. Conferences among the five
other concerns are continuing to deter
mine whether it IS advisable 10 consider
companies"
Mr.. Campbell last night declined to
give the reasons for the withdrawal
LIT was learned I'm other quarters that
there was no differences on terms. The
Youngstown company had submitted the
basis on which II would enter the pro-
posed consolidation and indications were
that 1t would be met. Neither was IL a
question of management, since the
bankers and the steel men had selected
Mr.. Campbell for the leading position
The interested companies have main.
tained from the beginning that there
was no violation OF any laws involved
in the proposed merger and 1t can be
definitely stated that II was not a fear
Of interference from Washington that
prompted ybungstown's withdrawal
Youngstown Meeting Held.
The decision was reached after a
meeting OF the full board of directors
and some of the largest stockholders OF
Youngstown. Mr. Campbell had called
together these directors and stockhold.
crs. many of -;hom live in the middle
West. At this meeting yesterday the
president was authorized to inform the
other steel companies that Youngstown
did not wish to take further part in the
negotiations.
No new merger between the Youngs-
town Sheet and Tube Company and any
other concern has been discussed and
none is expected. The old three com.
rany merger of the Youngstown Sheet
and Tube Company. the Inland Steel
Company and the Steel and Tube Com
pany of America is definitely off, hav.
ing been abandoned when the seven
company merger discussions were started
In New York fortnight ago.
The withdrawal OF youngstown Is a
severe blow TO the consolidation plans
Youngstown was one of tho most i'm.
portant companies in point of earnings
assets. divcrsincation of products, &c
Il makes every product OF Importance In
the steel industry except rails and
Continued on Paue Sovau