New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-05-13
Lackawanna Stock
: Adds &,67O,6l5 to
Value in 2 Days
Wall Street Hears Rumors ne
Merger Terms: La Toilette
resolution n Fails to Damp
Speculative Enthusiasm,

Nompietion of negotiations for the
ecqu'slt'on of the Lackawannp S+a.l
properties by the Bethlehem Stee, Chr
poration resulted yesterday in a snec-
lacuiar rise of more than IL no;ntr II
Lackawanna shares on the Stool Nv
cnsnge. Figured in dollars tho nn,
seSu,t of the days dealings was tho
aool'ion OF more than S4,213, Oso to thu
N"'ue OF the stock, of which the total
co. Snsount outstanding at par is worth
TF,oo'i"o.ao0, compared with S27 .3sa 6aO
'he present market value.
me mel rise in the stock on THINE.
way vas o"s. so that in the last i've
Gays OF stock market trading there was
gam OF 10 points, or the eouiva1cr.
." ., So'6io,el5 The first inllino III IA
wal street had of the deal was the
s,ap,u ascent of the shares in Thurs
gay late trading. After the markets
I'ese II. u. Grace. president Of Beth
'enen. announced that the merger ne.
so'ias'ons had been successfully ter.
minated and that the terms of Lacka.
,wtahn&'s purchase would be made pub
nc ne>t Tuesday.
IN inc absence OF official figure
Yesterday Wall Street heard nun,be "
oI esunlatos regarding the term; on
'''' = 40 W anna WOUIu be t1kCI
over. Ono was that the Stockholders
would DC given two-.hirds Of rharc
~ Fefh'chcm B. common, and onc.
tli'rd OF share Of Bethlehem De,
cent preferred stock. This would bc
equivalent to a value of sS7 a share
for each share of Lackawanna. com
pared with tn. closing quotation of
as on the Stock Exchange. Another
guess as to the terms made each share
or Lackawanna worth 90.
NO further comment was made dur.
ing the day by the sponsors of the
othcr steel merger, which, according to
present plans will include Midvsle. Re
pubic. oungstowr, Sheet and Tube
orler Hill Steel, Inland Steel and Steel
and Tube of America. The next ster
IN this consolidation is expected to be
announced next Tuesday, following q
meeting in the Offices of Kuhn. Loeb
& Co.
Announcement that the United States
Senatc, at the instance of Senator La
Toilette. had passed resolution order
ing an inquiry into both steel mergers
did little to dampen speculative en-.
thusiasm on the Stock Exchange. The
rise in the steel shares was halted for
a time. but before the markets close
they started another upward climb
which resulted in the highest prices
of the day being recorded in the last
few minutes Of trading.
The consensus expressed by stce'
men and in the financial district was
that the Senate resolution will no,
prevent contamination of either merger
in view Of the friendliness of the Ad-
miristration toward the fostering o.
big business. The purpose Of both con
solicitations is to reduce costs of opera
ton and with this accomplished the
public would benefit from lower prices
it was said
f. A. S. Clarke, president of the Con
soliGated Steel Corporation, which acts
as the sole export agent for Bethlehem
Lackawanna and number Of other in
dependent steel companies. expressed
the opinion that both steel mergers
would be beneficial TO the industry. In.
land Steel and Steel and Tube, which
arc in the siX-company merger, bu:
which are not members of the export
concern, he thought would be brought