New-York tribune., 1922-11-25
1877, 100000 Merger I'M
cludes Cambria; Places
Schwab Co. Within $50
600, 600 of u. s. Steel
Wall Street Sees
Passing of Corey
Grace Expects Federal
Trade Board Protest,
None From Daugherty

Ihe AMBITIOUS plans OF Charles NJ.
Schwab and Eugene G.. Grace, chair
man and president, respectively, of
the Bethlehem Steel Corporation, to
make that company, the most impor-
tant competitor Of the United States
Steel Corporation made further prog
ress yesterday.
After the close Of the stock market
Mr.. Grace announced that negotiations
had been concluded with directors of
the Midvale Steel and Ordnance Com
pany by which the plants and other as
sets Of the latter would be acquired by
the Bethlehem company. Included in
the purchase is the Cambria Steel Com
pany. Midyale's ordnance plant al
Nicetown, Pa, however, will continue
as an independent. Simultaneous with
the announcement Of Mr.. Grace, Will
liam +, Corey, chairman of the Mid
vale board, issued a statement saying
that the terms of the sale had been
approved by all of the company's di-
rectors.
Output Broadensd
Acquisition Of the Midvale and Cam
bria Steel properties will place Beth
lehem in position to produce all the
commercial steel products with the ex-
ception of pipe and seamless tubes.
For these the company is planning to
build plants at one of its existing
properties. The lines of steel products
to be added by the Midvale purchase
Will include wire rods, wire and wire
products, steel freight and mine cars,
steer wheels, boiler tubes, agricultural
implements, parts, etc.
Bethfehem's present annual inpot ca
pacity Of 4,S90,000 tons will be in
creased to 100000 tons W the Mid
vale-Cannbria purchase. The recent
acquisition Of the Lackawanna Steel
Company's plant at Buffalo, N. Y,
made Bethlehem the second largest
producer of steel rails in the country.
In payment for the Midvale- Cambria
properties Bethlehem, besides proyid-
ing for the. assumption of the bonds
and other Indebtedness of those corn !
panles, excepting current HabiIities
appurtenant to the operation Of Che
Nicetown plant, will issue about ser
$4,000 par value Of Bethlehem Steel
common stock, OF which $4,000, 900
par value will go TO the Midvaie COM
pany. for distribution on dissolution to
Its Stockholders. The balance will go
to the holders of the Cambria stock
not held by Midvale.
To Give Two Shares for One
AS result of these purchases the
stockholders Of the Midvale company
will receive for each two shares Of
$50 par value of Midvale stock sos
par value of Bethlehem Steel common
stock, together with pro rata share
of the stock OF the new corporation,
to which the Nicetown plant and its
assets are to be transferred.
No increase in the aggregate in
debtedness of the Bethlehem company
is necessary to complete the merger
additional common stock to be issued
for the Midvale- Cambria properties,
and with the 8 per cent preferred
stock converted into new 7 per cent
preferred as a result Of the capital
changes made in conjunction with the
purchase of Lackawanna Steel, the
Bethlehem Steel Corporation will have
outstanding after the deal with Mid
vale is completed:
A $213, 3,500,000 funded debt, $62, ,OOO,-
900 preferred per cent stock and
S180,250,000 common stock. The out
standing common stock capitalization
OF the United States Steel Corporation
amounts to $50s302,5 500. BethIehem's
combined Investment in property and
plant, less depreciation and depletion,
will be about s465 100000, and the ag-
gregate net quick assets will be $780,
100000.
Commenting further Non the latest of
Bethlehem's expansion plans, Mr.. Grace
said:
Hope to Cut Operating Costs
"The board Of directors of the Beth
lehem Steel Corporation has authorized
these additional acquisitions in pursu-
ance of it's policy of building up COM
plete line of steel products, which it
has followed ever since Mr.. Schwab and
his associates became interested in
Bethlehem. Through the acquisition, of
the properties Of the Midvale and Cam
bria companies. Bethlehem will acquire
plants at Coatesville and Johnstown,
Pa, and Wilmington, Del, and iInpor-
tant developed iron ore properties in
Michigan and Minnesota, as well as de-
veloped coal properties in Pennsyl-
yania. The ability to distribute and
(contInued on aext paael