New-York tribune., 1922-05-16
Merger Interests
Not Worried by
U. S. Investigation
Chadbourne Says 6.Company
Combine Would Enhance
Competition; Inquiry by
Lock wood Committee

Although substantial reactions in
yesterday indicated some fear on the
part of spectators regarding the out
come of Federal Investigations of the
Bethlehem Steel -Lackawanna merger
and the so-called six-company con-
solidation, interests identified with the
companies said they were not worried.
1t was learned from members OF the
Lockwood Housing Committee ycster-
day that Samuel UntcrmHcr, its chief
counsel, has been investigating the PRO
posed siX-companN merger for the last
month. The inquiry was interrupted
by the recent inspection trip of of
| fcials of interested companies, which
prevented the serving Of subpoenas
upon them by the committees process
servers.
1t is understood, however, that the
committee is going ahead with its in
vestigations as to the legal status of
the proposition and expects to call as
witnesses some of the big industrial
leaders declared to be associated with
the deal. 1t is believed that some Of
/ the Wall Street mon, reported to be
behind it financially, Will also be called
to the stand. Tho Lockwood committee
meets in City Hall on Thuraday morn
ings.
important Developments in The ncgo-
tiations involving both combinations
arc expected to-day following two i'm
portant meetings. The terms of the
Bethle ehem-La -Lackawanna deal will be
made public following meeting to-
day, according to statement last week
by E. G. Grace, president of the Bethle-
hem company. The other meeting will be
held at the Offices of Kuhn, Loeb e.
Co.. whore the chairmen and presi-
dents Of the six companies trying
to combine will meet with the bankers
in a discussion of terms. An I'M
nouncement Of the progress made has
been promised by Thomas l.. Chad
bourne, the legal representative re-
tanned by this steel group.
Commenting further on tho Federal
inquiry into the projected six-company
merger, Mr.. Chadbourne made the fol-
lowing statements:
There is no thought in connection
with the proposed merger of the Brier
Hill Steel Company, Inland Steel Com
pany, Midvale Steel and Ordnance Com-
pany, Republic Iron and Steel Company,
the Steel and Tube Company of America
and the Youngstown Sheet and Tube
CoiHPaliN ol NiolAClHR e1lner Inc SheT-
man law or the Clayton act.
"The aggregate rated ingot capacity
Of these companies is approximately
only 16 per cent of the total rated
ingot capacity of the United States,
while their total production in 1920
was approximately only II per cent
Of the total production of the country
in that year. An operation of the
properties of the six companies as a
unit will result in very substantial
reduction in costs, which will enhance
rather than restrain competition.
"No monopoly will be effected nor
will there be any restraint of trade.
There is no basis whatsoever for the
assertion that it is proposed to act
i'll concert by agreement or otherwise.
with the United States Steel Corpora
ton or any other competitor"
At the offices of the Bethlehem Steel
Corporation yesterday it was stated
that no communication had vet been
received from either the Department
of Justice or the Federal Trade Com
mission asking for information regard
ing, the absorption by purchase of
Lackawanna.