The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-29
Corey, Topping and Block
! Decide at a Meeting in
Banking House Here.
WALL STREET SURPRISED
Delay on Legal Points in Face
Of Trade Commissions OBJ
jections Created Bar.

Official announcement was made
yesterday Of the abandonment of the
contemplated merger of the Republic
Iron and Steel Company, the Midvale
Steel and Ordnance Company and the
Inland Steel Company into new
s210. 100000 Independent steel manu-
featuring company to be known as
the North American Steel Company.
The impossibility of financing the
proposed consolidation. arising from
the questions raised by the Federal
Trade Commission and from the long
delay that would be occasioned by
threshing out their legal aspects, was
assigned as the reason for the deci-
sion. which was reached yesterday
after a long session of the interested
parties in the offices of Kuhn, Loeb &
Co.. bankers for the proposed merger.
The announcement. which came long
after the close of the seock market. oc-
casioned considerable surprise in Wall
Street. as only last Monday official re
ports had denied the run1ored abandon
ment of the consolidation plans.
Formal Statement Issued.
The following statement was issued
yesterday afternoon under the authori-
zation of w. r. Corey, chairman Of the
board of directors of the Midvale Steel
and Ordnance Company; John A. Top
ping, chairman of the Republic Iron
and Steel Company. and L. f. Block
chairman Of the Inland Steel Company
Eat meeting held to-day the. entire
situation arising from the action OF the
Federal Trade Commission was reviewed
and the conclusion was reached tina,
under existing circumstances ii Is not
possible to proceed with the proposed
merger of the Midvale Steel and Ordnance
Company. the Inland Steel Company and
the Republic Iron and Steel Company.
While all of the eminent counsel who
have been consulted agree that the pro-
posed merger would be legal in every
respect, apd while Its contamination
would not have restrained. but have in
tensified competition. the final determi-
nation of the questions involved would
delay the carrying out of the plan to
such an extent that the parties in inter-
est do not deem 1t advisable to proceed.
Pending such final determination OF
the questions involved the financing OF
the proposed merger would not be pos
sible, and It is not feasible to proceed
with the merger without such financ-
ing"
Seven I'm Original Plan.
The collapse OF the merger project
marks what Is considered the final
chapter in protracted negotiations
which at their start last spring in
volved not only the three concerns
named but also the Lackawanna Steel
Company. the Youngstown Sheet and
Tube Company. the Brier Hill Steel
Company and the Steel and Tube Com
pany of America.
The definite withdrawal of Youngs-
town Sheet and Tube at a compare
lively early stage of the discussions
was followed soon by the surprise an
nouncement that Lackawanna Steel
would be taken over by the Bethlehem
Steel Corporation. making a company
with assets of more than $3.50. 000. 900 and
with IL per cent. of the steel producing
capacity of the United States. Suisse
uuently Steel and Tube Company OF
America and Brier Hill withdrew from
the conference table.