The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-06-09
STEEL MERGER is
BIG UNDERTAKING
Consolidated Concern Will Have
Capacity Second to the United
States Steel Corporation.


NEW YORK, June s--The Midvale-
Republic-Inland Steel merger will give
the consolidated concern capacity sec
ond to the United States Steel corpora
ton and enable It to cut down the SO a
ton the differentiai now enjoyed by the
corporation over all Independents, the
Lockwood legislative committee was told
today BY Thomas J.. Chadbourne the law
yer who negotiated the triple alliance.
Independents now exist by sufferance
OF the corporation because II can de-
liver products at a cost So a ton under
any Of the others, he said, the new mer-
ger would cut 81 from the differential
through reduction in selling and admin
istrative expenses, Chadbourne estimated.
It would be slashed still further
through lower delivery costs resulting
from better geographical distribution IA
cilities he said.
The committee declared him in con-
tempt because he would not produce ex-
per reports made on the valuations Of
all seven companies which II was orig
inaiy contemplated would enter the
merger Chadhourne said he was will
ing to submit the report on the three
companies which have agreed to merge.
but he ne,d the committee had no jurIs-
diction to call for the reports embrace
Ing the four outsiders.
Samuel Untermyer. the COMMITTEES
counsel. reminded him that one witness
who declined TO give up data demanded
by the committee had spent month in
jail for his act, but the lawyer stuck to
his refusal and was declared In con-
tempt. Then II was found the subpoena
served upon him did not specifically call
for the original report on the seven COM
panles, so new subpoena was made out.
calling upon him to produce II tomorrow.
Coincidapt with the filing OF answers
10 the complaints by the two corpora
lions, Carl d. Degersdorff, their counsel.
called az the department Of Justice and
assured Attorney General Daugherty the
companies were anxious to place imue-
diately az his disposal all facts regard
ing the proposed merger. Delay would
seriously handicap the companies. he as
serted, asking that the investigation be
pushed forward as speedily as possible.
Mr. Daugherty was understood to have
informed SIR. Degersdorff that the de-
partments investigation would be ex-
pedited.
Each company filed separate answers
to the COMMISSIONS complaint, denying
fha authority or jurisdiction OF the COM
mission over the transaction alleged in
the complaint"
n the Rsthlehem reply, signed by r.
q. McAfath. secretary OF the corpora
ton, It was asserted that neither the
Iackawanna Steel company, nor any OF
It's subsidiaries was now engaged In COM
petition with the Bethlehem company,
nor any OF it's subsidiaries 1t was also
asserted that the carrying out OF the
agreement OF May is 1922, ad then OPP
cratic BY the respondent CBethlehem) d.
reotiy or through It's subsidiaries OF the
properties OF the I,ackawanna Steel COM
pany win not violate the provisions Of
any law Of the United States"
The Bethlehem reply admitted some OF
the points set forth In the commissions
complaint, but took issue with the COM
missions figures concerning production
Or certain railroad accessories by the
Lackawanna company.
Both companies. IN their answers. took
up the commissions complaint in de-
tail and answered each allegation. adj