Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-05-13
LACKAWANNA LEADER IN
Days ACTIVE TRADING
Charles M. Schwab Is Cred
tied With Putting Over
the Merger.
LABOR CONDITIONS IMPROVE
hnilrond Officials Prepare tn Test In
the Courts Decision or Honrd Iinr-
ring Contracting by Carriers with
Outside Firms.

ny H. L.. bnTuum.
NEW YORK, May l2.-lndcpcndcnt
steel shares were the whole market
today. traders forgetting the exist
chcc 81 the rails. oils and other In
dustr'als. Steel common marked
tlme' but gains az from two 10 four
points or more were scored for Mid
vale. Cruciblc, Republic. Bethlehem
u. SlOss Sheffield and other steel
shares f.ackawanna was the leader,
closing last night ut o. "a. tho high
81 the opening was rs. after which
Nor" wax "a decline to u IL, FOL
Owed by an advance 10 IS without
Il stop.
Insiders IN Bethlehem are talking
higher prices for Lackawanma. As
get nothing official has been said
about the terms Of the merger How
ever. one report widely circulated In
Wall Street today had It that holder.
90 Lhcknwanna were 10 be- offered
two- thirds Of II Shnre OF Bethlehem
and one-third or (, share of Is.th-
lchcn per cent preferred. That
would make tho market price NJ
l.ackawanna higher than Bethlehem
But II was pointed out that some In
huccmcnt had 10 be offered TO y., in
-'he outstanding stock OF l.acka-
,anna, ana that. moreover. I.acka-
wanna h&ed interest charges which
we're 1lO0O0o0 a year. or 81 cents
ton on iagnt capacity. compared
With 1881 600. or $3.50 "A ton on in
EOt capacity % Bethlehem.
schwnb Pint II Over.
Charles NJ Schwah who put il over
ON tho chadhournc- kuhn Loeb & Gu.
int"rcs,s worH!ng Oh the proposed
lnert~1 OF Independent steel com
panic. knew whore To 20 10 get con
= ~.
20 the banking hrm o. kcan. TAILOR
CO. Moses Taylor. OF that firm,
being the chairman of l.ackawanua,
and having in his banking cnlc.
enough stock az Iackawauna to az
'uhliy carry control. Despite dcniais
to the contrary Big Tom" chad
bourne ant the Kuhn I.ocb interests
we're taken completely by surprise
'tthe Schwab announcement While
they, including Lackawauna' pr.si-
dent wer" out on Il private train on
an inspection trin, netting two 10
one that tho merger would u.
perfected, Including I.nckawanna
Schwab simply put II over on them.
Undoubtedly. when they get their
breath they VIII again mako start
ms time % merge six companies
l"n explanations were given for
'"daE's strength in Crucihlo ON.
"as that II merger was being ar.
ranged with United Alloy steel. tho
other that "a large short intercs, had
"'"n trapped as has occurred many
mes In INC pas, \, any rate. there
WIS huNinE today ~ calls on Cruciblc
presumably 10 protect outstanding
short stock
,i>i money opened today ~ 80.
ana then dropped TO l-e Roth call
Gnu 'h" money Was plentiful
Labor Conditions Impruyc.
'cpar 'm"nt or Commerce officials
.'lh'eh out today that labor condi.
Mons Tor Apri! wer" The mos, favor.
'h+e % ~" year. For every ion
JOBS listed II was pointed OUT, rh.ro
"sF" LOO applicants in April. against
>. ~ March. 205 In February a,a
2.d In January.
rue freight in tho country on ANN
." stood =, 52e,65s. This was y de-.
cr"as" OF go cars.
railroad officials arc rrnpari, -
''St IN tho courts tho decisi.n ~,
~ h"'iphd Labor Board that cor-
iaCuns by the carriers with IN.
N''t hrhs was Illegal u * safe
NOV 10 predict that IN the nnal d.
'IS'oh me Railroad Labor Board wuI
"N' ihe Raiirnad Labor Board was
6'Nth no power 20 enforce its ~.
lngs' and moreover Their. has nc,..r
h'"h "A high cour, in the country
H''H'!nS Tor cOnhsca,ion OF pro,.
J. To make tho -o''---' s,.,d
and dolivc. .n"u
"huid get work done chcau.r nv
Iarn!hs II out would he conhscntion.
Union Pa"ifc's annual rcpor, 'o-
49, mace public today. shows i22a
,,r cen, a share earned for the
2'2sl.VOO common stock after pro-
nn
against 1880 for 1920.
one OF the morning papers hcr.
carried an exclusive nrSt-parc storv
"hich was discussed by Wall Stract
more IMAM the news from Genoa or
ne surprise party given by Charles
NJ. Schwah in taking over I.acka-
wanna steel. The story In question
quoted President Cromwell OF IN,
STOCK exchange as saying that when
me eNchahse completes its cxami-
nation of the financial reports OF
members called for under the new
rule there Will be 100 less members
OF the exchange. not from loss Of
business. but from consultations
throughout tho day everybody in
wall Street was asking everybody
else. Did Cromwell say it?"
wild Crowd Around Lncinwannn.
If Cromwell did not say IL he will
~ ono Oh the rev well posted men
IN wall Street who has not said II
within the past few weeks, or since
IL was announced that the exchange
was TO demand from members at
regular periods detailed financial
statements. Everybody familiar with
existing conditions has known that
these statements would show many
stock exchange firms without sutii-
cicnt working capital. To make such
Trims get off the exchange or merge
with other firms for the purpose of
obtaining additional WORKING capital
would be good move for the long
pun for all Legitimate parties in
crested. Calling for these detailed
financial statements from members
or the purpose Of abolishing over
extension on the part of some mem
oers and establishing financial re-
apohSlbility OF firms found 10 he
" financially strong. is the most CON
'trhctivc move made by the cx-
'hhhSc In the memory Of the present
generation. The next constructive
H.cp would be 10 permit stock ey-
mango firms like banks to advertis,
hc'r financial resources.
~ has been many n long dav si,oa
ny stock has had the opcninr VIII.