Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1922-05-20
BETHLEHEM To
BUYLACKAWANNA
Merger of Two of the Largest
Steel Independents Is Off
cially Announced.
DEAL INVOLVES S6o,0Oo,Oo0
Purchase Gives Bethlehem a Rail Sup
ply for Lake States and New Eng.
land-Six Other independent
Companies to Consolidate.

New York.-The Bethlehem Steel
Corporation Will acquire by purchase
the properties of 'the Lackawanna
Steel Company, thus uniting under a
single management two OF the largest
independent producers Of iron and
steel in tile United States Formal
announcement that such merger
would take place in the immediate fu-
ture was made by Eugene G. Grace
for the Bethlehem Steel Corporation
ana Moses Taylor for the Lackawanna
Steel Company.
The announcement, entirely uneX-
pecicd in the financial district, was
surprise to independent steel makers.
and especially To the other indepen-
dents who had been counting upon both
Lackawanna and Bethlehem as proba-
bic component parts Of the "seven
company combination" In Wall street
il was not generally known that such
a merger would take place until iif-
teen minutes before the market closed,
but the stock of both corporations re-
Sponded vigorously TO the develop
mentS.
Directors OF both the Bethlehem
Steel Corporation and the Lackawan-
ma Steel Company will meet to settle
the final details Of the deal. Ii is
said. however that all matters per-
tanning to the consolidation have been
agreed upon. but that these could not
he made public until formal action Is
taken by the officials of both com
panies Al the same time conferences
will begin AT the offices of Kuhn, Loeb
X Co. regarding the proposed merger
of tla seven Independent companies,
in which it was expected the Lacka-
wanna Steel Company would take
part
In announcing the Bethlehem-Lacka-
wanna merger the following formal
statement was issued ut the office of
the former company:
IL. G. Grace. president of the Beth
lehem Steel Company Moses Taylor,
chairman Of the board of directors Of
the Lackawanna Steel Company, and
the committee appointed 10y il 10 deal
with the matter, announced that they
had reached an agreement as TO the
terms to recommend 10 their respec-
tive boards of directors and stock
holders for the purchase 10y Bethlehem
Of the Lackawanna properties
The transaction involves the use of
bethlehem per cent preferred and
Glass l. common stocks in payment
for the properties.
The details are being prepared for
prompt presentation To the stockhold-
ers al the respective companies
As all the authorized capital stock
Of the Bethlehem Steel Corporation,
except S30.uO0,OO0 Class l. common,
reScrNc ed for conversion of the per
cent preferred, is outstanding, il will
be necessary for the stockholders of
the Bethlehem Steel CORPORATION 10
authorize additional capital stock 10
carry out the LackaWannu deal.
Should there bee any need for UNDER
writing new securities, il j. understood
that this MIL be done Us the Guaranty
Trust Company and the Bankers
Trust Company. bankers for the Beth
lehen
Mr.. Grace said that negotiations
leadln. To- The takln. over of Lacka-
wanna started las, December. when
officials OF this company inspected the
Lackawunua plants and the Lacka-
wanna officials inspected the Bethle,
hem plants lie pointed uui that the
acquisition of the Lackawanna not
only would give the Bethlehem a
gateway To- The markets in New Eng.
land ana The eastern states. but II
"al>o its in nicely with the plans thar
Bethlehem has for Ihe future"
The LackaWanna acquisition. he
said, gives the Bethlehem additional
capacity for commercial bars. which
the company "woud have had To spend
money Ia develop At SparroWs Point"
Il also gives the Bethlehem an oppor.
tunity Ia extend is operations, us the
Laekawannd viii supply the New Eng
land ana lake states with steel rails.