The Washington herald., 1922-05-13
IN A N CIAL
ACTIVITY In STEEL
GROUPS FEATURES
STOCK EXCHANGE
Lackawanna Scores 12N-
Point Gain-Others
2 to z Points.

NEW YORK, May 1a-Excited
buying Of the shares OF independ-
-ent steel companies as a result OF
the news of the Bethlehem and
Lackawanna merger was the fea-
ture OF the day on the stock ex-
change. At a late price OF IS. Lack
awanna made a net gain OF 1zk
points, but other shares in this de-
partment achieved advances Of from
2 TO : points. Activity in the steels
threw the rest OF the market into
the shadow. but sympathetic al.
vances running from fracions 20 a
point or two were achieved here
Sales again exceeded the million
mark. Bonds also showed a better
undertone, with the gilt-edged is-
sues leading. Call money opened at
5a per cent, and was reduced 60
IA during the second hour.
Merger Centers Interest.
This mornings market was large
1y governed by the news Of the
Bethlehem -Backawanna steel merr-
er, rumors OF which began to cir
culate in the financial district yes
terday afternoon. although ofhciai
confirmation Of the CONTAMINATION
Of the deal was not made public
until after the close of the stock
exchange trading. There was a
wild opening in Lackawanna, ana
1t was some time before the COM
mittee was able to fix the correct
opening price. which ranged from
1S 10 "a. up ~ TO So points from
last nights close. which. in turn.
was points above the previous
days close. The stock reacted dur
ing the morning to II. but subSe-
quently scared to 77iz on rumors
regarding the basis for exchange Of
securities between the two COM
panies. Bethlehem was slower IN
limbering up. the opening transac-
/ tion in the y stock being at 7sA
up only half point from Thurs
days close, and there were sales
| during the first hour a full point
Z lower. However. before noon Betty
I 3 began 10 assume some Of her old
time popularity and climbed nearly
4 points above the opening.
Reports Conflict.
Two reports were in circulation
I during the morning hours as 10 the
terms upon which Lackawanna
stock Will be exchanged for Beth
/ lehem. The one which was given
most credence by the market fra
I ternity was that Lackawanna stock
holders would receive one-third ~
a share. Of BethleheT1 : per cent
| preferred and two-thirds of a share
. OF Bethlehem p In exchange for
each share OF L.ackawauua- The
| other report was that half a share
/ OF Bethlehem : per cent preferred
and half share of b stock would
1 be given for each share OF I.arka-
| wanna. on the basis OF the first
] exchange suggested Lackawanna at
current quotations for the Beth'c-
hem issues would be worth about
Sc. while under the second plan suE-
gested IL would have a current
value OF about 30.
New Rumors Anoat.
Having been caught mapping by
the announcement Of the Bethle-
hem Lackawanna merger. Wall
Street Immediately set afioat a new
! crop Of rumors regarding further
additions to the new combination.
L. s. Cast Iron Pipe and W.Ckwire
] Spencer were. freely talked Of as
likely candidates for inclusion in
the Schwab combine. and in fact
the exchange for the wickwire
Spencer stock was even declared to
have been settled on a four-for-one
( basis. Judging by past perform
ances on steel merger rUmors dur
2 ing the past few weeks. today's re-
ports need not be taken very ser,-
! ously. After the rumOr mongers
had practically settled all the de-
tails Of the seven-company inde-
pendent merger. yesterdays an
,,nouncement came as a complete
surprise.