New-York tribune., 1922-05-17
Gary, Grace and TAYLOR
Called to Testify Re.
garding Merger of Beth
lchcm and Lackawanna
Second Group To
Be Probed Later
Morgan Member May Be
on Stand in Inquiry
About Consultations

/ 1t was announced yesterday that
Samuel Untermyer. counsel to tho
Lockwood committee, had summoned
Ebert H. Gary, chairman of the
| United States Steel Corporation:
Eugene G. Grace, president Of the
bethlehem Steel Corporation, and
Moses Taylor, chairman Of the Lack
awanna Steel Company, to appear at
the City Hall tom orrow to testify CON
cernlng the Bethlehem La ckawanna
steel merger Mr.. Untcrmyer. it is
UNDERSTOOD also intends to gather all
the information he can regarding the
so-called slX-company combination,
and A. c. Dinkey, president of the Mid
vale Steel and Ordnance Company. is
expected to appear for that group. The
intent of the proposed inquiry is to
| ascertain what effect both mergers will
have on structural steel prices.
1t also was reported Yesterday that
a member OF J. P. Morgan & Co. may
be called before the Lockwood com
mlttee, although the banking firm has
not been acting in either of the
.'sHA S@i - Auull, LOcU q w. are UdIkeTS
for the siN-company consolidation
while the Guaranty Trust Company
and the Bankers Trust Company were
, called in by the Bethlehem La cka-
wanna interests.
While executives of the so-called six
company group were conferrng in the
Offices of Kuhn. Loeb &. Co. in an effort
to reach agreement on the terms
Of consolidation, directors of Bethle-
hem and Lackawanna formally approved
the plan by which these two concerns
will merge.
Terms Are Outlined
Mr.. Taylor. chairman Of the Lacka-
wanna board of directors, and Mr.
Grace each issued statements outlining
the terms by which the absorption Of
Lackawanna will be effected. These
were identical in their wording and
read:
The purchase price agreed to be paid
by Bethlehem is an aggregate par
amount Of its 7 per cent preferred
stock and Class B common stock equal
to the par amount OF the stock of
Lackawanna outstanding 1885, 5,10s. 5000.
consisting Of 40 per cent in the 7 per
cent preferred stock and so per cent in
the Glass r common stock Of Bcthle-
hem, with an option in Bethlehem to
stock and increase the par amount Of
the Glass B common stock thus to be
delivered by S1.543, 400 upon payment
Of approximately 100000 in cash
Bethlehem is also to assume the debts
and obligations OF Lackawanna."
Bethlehem stockholders will be re-
quested to authorize the additional
stock required for the consummation of
the purchase at meeting TO be fixed
shortly
Following the meeting at the banking
Offices of Kuhn, Loeb T. Co.. Thomas J..
Chadbourne, as spokesman for the six
company group, said that no definite
conclusions bad been reached regarding
the terms Of the projected ANA jaama-
tior, but indicated that substantial
progress had been made.
He vigorously denied reports current
in the financial district during the
afternoon that plans were under way to
include the Bethlehem Lackawanna COM
bine in the merger. He said that the
six-company group had not been ap-
preached by the Schwab interests, nor
had any of the companies represented
by him approached the other group with
the object of merger.
Willing to Give Information
In reply to inquiries concerning an
Investigation Of the six-company nego-
tiations by the Lockwood committee Mr..
Chadbourne said that every effort
would be made to give all information
asked for. He also said that execu-
tiyes Of the various companies we're
planning to give to the Federal Trade
Commission all data sought.
The twelve executives present at yes
terdays conference were entertained
at dinner by MI. Chadbourne at his
home, $40 Fifth Avenue, last evening.
, Conferences with the bankers will be
continued to-day.
Mr. Grace says no financing will be
tconnsued on PAGE eshtsen)