Daily Kennebec journal., 1922-06-08
DEMOCRATS CLAIM PROPOSED TARIFF
SCHEDULES WOULD BOOST PRICES IN U, s,
STAGE DAY.L0NC ASSAULT IN SENATE
COMPLETE PLANS
FOR MERGER OF Two
BIG STEEL CONCERNS

New York, June THE terms of
the proposed merger Of Midvale
steel and Ordnance company, Inland
Steel company and Republic Iron
and Steel company with issued capi-
tai of s132,S14.5S7 were made public
tonight in a letter to stockholders.
1t was signed by W. E. Corey, L.
E. Block and John A Toppking,
chairman of the boards of the three
companies. They stated that the
plan was subject to changes to meet
conditions and the opinion of coun-
sci.
The Midvale and Inland companies
will consolidate and take the name
of the North American Steel Cor
pCration, the letter explained, and
this corporation Will acquire, subject
to its liabilities, the assets of the
Republic company.
Before the Unifcation of the
properties, the letter added, "Midvale
will place its Nicetown Plant and
certain assets and liabilities connect
ed with the operation of it, in a sep
arate corporation, stock of which will
be distributed pro rata among the
stockholders of the Midvale com
pany. This separate corporation will
therefor continue as a separate en-
terprlSe for the manufacture of the
ordnance, armor plate and special
steel products to which it is adapt
ed"
capitalization under the consum
mated plan, comprises S79.173,500
IN bonds and other fixed charge OBJ
legations; S30,331,475 new preferred
stock of $100 par value, and S3,3O9,
612 shares onf new common stock
without par value.
The bonds and fixed charge obIiga
tons will consist of S6O.599.5OO
bonds and guaranteed obligations OF
the MIdvalc company or its subsid-
iaries, $13,357,000 and other obliga-
tions of republic or it's subsidiaries
and S5,217,000 bonds and other OBJ
legations of Inland, all of which. in
addItiOn to the other liabilities of the
three companies. are to be a. sumed
by the corporation.
: The preferred stock is to be seven
per cent. cumulative and convertible
until July 1, 1884, into common
stock. four shares of preferred for
i've Of common, and it to be re-
deemable at the option of the corpor-
alton at 115 per cent. and accrued
| dividends.
The distribution of common stock
viii give Midvale shareholders L.
100000 shares: to provide partly for
acqulsition of Republics properties
$4,000 " shares; inland shareholders
7O9,2S1 shares, and 590,331 shares
| arc to be sold for cash.
! Each holder of one share Of Mid
| vale stock will be entitled to receive
| three ofurths of a share of the new
! common stock and one fourth of a
share of stock of the corporation
/ which is to take over the Nicctowr
Plant.
| Each holder Of one share of Inland
! stock gets S23.15 in cash and seven
; tcnths Of a share of the new common
| stock.
Each holder of one share of Re
| public stock Will receive with re-
spect to each share of preferred
stock, one share of new preferred
stock and an amount Of cash nee
essary to provide for the then I'M
paid dividends on such preferred
stock of Rcnublic " AS regards 90 oh
share of common stock. one and sew
en- tenths shares of new common
stock will be issued.
Kuhn, Loeb and company have
agreed to act as bankers for the
plan. the letter stated.
THE plan contomplates," the let
ted added, that te corporation will
sell to Mr.. Thomas L. Chadbourne,
for services rendered, $4,000 common
shares at SO per share and to
Messrs. Kuhn. Loeb and Co. $4,000
rT.n0 on ,.l,