Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-06-09
New Steel Merger
Will Be Runner-Up
TO L. S. Steel Corp.

.cW York. June S-The Midvale-
repub,ic-Inand steel merger will
| hive the consolidated concern a ca
uaci'y second to the United States
SeeI corporation and enable it to
~ down the 81 a ton differentia.
rov enjoyed by the corporation over
l. dependents, the Lockwood legis-
E.u,c committee was told today by
-hon,as l.. Chadbourne. the lawyer
Who Lcgotlated the triple alliance.
| Iuacpe ndents now exist by suffer-
.are Of the corporation because it
| e.g deliver products as a cost of SO
Il t,4 under any OF the others. he
sH The new merger would cut 81
su. this differential through reduc-
10. in selling and administrative eX-
nrs,s. Mr.. Chadbourne estimated.
| = vu..i bc slashed still further
,7rO.gh lower delivery costs result
from better geographical distr.-
...o7 OF facilities, he said:
! taa Youngstown Sheet and Tube
|, r,pany and the Briar Hill Steel
P-crpauy had come into the CONSOLE
da,lol as originally planned. the
Loom. laation would have been able to
81. me dlffCrential even lower by
l.rHllg an ore road from the Ohio
Drpcr through Youngstown to Lake
FIRE 70 compete with the Bessemer
an. lake Erie owned by the Steel
| eo-rora,ion. the attorney said.
B.. Chadbourne explained he was
a.. goiug 10 make any further effort
n eet Youngstown and Briar Hill
,-,o the merger, because he had
ro.b'e enough with three" and did
s-, care to enlarge his troubles"
The Lockwood committee enlarged
,teu for him by declaring him In
| ,o,e,rlpt because he would not pro-
syce expert reports made on the VAL
cations OF all seven companies
which u was originally contemplated
| -og.g enter the merger. Chad-
lr.r.o said he was willing to submit
.,a report on the three companies
| ur..l have agreed to merge. but he
GteItrc committee had not Jursdic-
..,g no call for the report embracing
the 'Dur outsiders. samuel inter
Y..r committee counsel. insisted on
u..,ur the original. He promised
,..t 'h data on the four companys
| r..n STAYED out would not be made
nl..r hut Chadbourne once more
......I to submit the original re-
r0., Last SATURDAY. standing on his
| .,,...r, as counsel for MidNale,
,....i.ourue refused information re
e.,u.r ~ the three companies IN the
r,,r.r lut today he gave II SAYING
.rr had released him from his pro-
,.s..oraI duty 10 keep silent.
L GIVING Chadbourne another chance
., save himself from contempt pro-
real.rrs I-ntcrmyer reminded MN
.l,, an. witness who declined to give
la,a demanded 10y the commit
80 faG spent month in Jam Tor ms
I., the LAWYER stuck to his re-
.s.. and was declared in contempt.
rl,a u was found the subpoena
,.r,cd upou him did not specify ca''
.ar tnr original report OF the seven
assemblies SO new subpoena was
.,.. ntt calling upon him TO pro
al. il tomorrow.
,i.l.m,r t.. Schiff Of Kuhn. Loep
= ,omplu, the banking mouse
r.o..u Intends 10 head syndicate 10
maze consolidated com
a., <or,b American Steel
,,,.oration-w another witness
a.. r,,. nm what he said was all the
...,. concerning the merger "hlch
20 bank possessed but CntermSer
$780,. t.ssa,isred with II, saying IL
contained summaries and not ne. uo1
The syndicate intends to sell 'oo'
noa shares Of stock and to proVlae
x.nnno 600 for buving stock from
,-,s. wishing to dispose OF H. Mr'
e-i,.~ said lie insists the ouH ms
| o-l sa,lng would not he simu''ah-
e0.s