Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-04
BIC GERMAN STEEL
MERGER PLANNED
Dillon, Read & Co. in New
Mammoth Deal Linking
Industry Abroad.
~ the Associated Press.


NEW YORK, January Am i'm
rortant merger Of German steel com
panies is the latest undertaking of
Clarence T. Dillon. Wall streets
Young inancier. who recently took
over the re-fnancing of the National
cash Register Co. Formal announce
nent of the linking together of the
German steel orGaniza tions is eX-
peCted soon.
Purchase of the National Cash
R"Cister Co. and the distribution Of
is securities To the public, within Il
1"3r after he had electrified the finan-
cial world by outbiddinS J. r. Morgan
y 60. in bitter struggle for the
Dodge Bros Automobile Co.. has
"'"ned for Mr.. Dillon, at +3. the
souhriquet of the wizard Of Wall
street
Risen From Obscurity.
His firm. Dillon. Read & Co. within
the decade he has been connected
with il. has risen from an obscure
j." Si;ion in the banking world to one
c. the most powerful financial insti-
3"finns in Wall street. ranked by
ny as second TO the powerful house
# Morgan. Within The last 10 Years
tho firm has sold billions Of new Sc
rites /" the public. OFFERINGS Of the
] It year reaching nearly $40 900 0nn
&" about 10 per cent uf all issues
"'har than real estate loans. sold in
New York
1t has become a tradition in Wall
street that Dillon. Read & 60. alway:'
has something big in the works. .
With the National Cash Register deal
F'lll unfinished. Mir. Dillon is now
uletlN working on the merger of Ger
l';s' steel compa MES a nd is also LAYING
l''ans for the development Of power
ini banking group to rival that or
;2nized by ]. p. Morgan & Co. 10
rsSiSt in the sale and distribution of
is new offerings. Whether this will
&c the form of bank merger or
lNerely an underwriting group is not
n"Wn. although Dillon. Read K Co
ready are represented on the direc-
t"r@te of the Central Union Trust CO.
and the National Park Bank.
Big Dodge Deal.
The outstanding accomplishment of
Mr.. Dillon's career was the purcha 50
t"r Sl4b,0Oo 600 cash of Dodge Broth
err in April of last year This deal.
which involved the issuance and sale
''' S16o.O0O.OO0 of securities to the pub
tic. astounded Wall Street MANY con
servative bankers shook their heads
and privately expressed the belief that
Mr.. Dillon and his associates had bid
too high. Some professional traders
sold the stock short figuring the
Dodge valuation of the properties too
high, but were forced to buy back the
stock at higher prices.
In the railroad, industrial and pub
lie utility field, Dillon and his $50
ciates have financed corpora lions in
the last year for over hundred mil.
lion dollars. while in the foreign field
the firm s activities have extended
over many parts of the world In
1921 MIR. Dillon marketed a $4,000 ;
Do0 loan for Brazil. taking the business
away from the great English firm of
lsothschild. In 1923 he sold $40. 900 =
GOO of stock of the American and For
eign Power CO., orga nized as hold
ing company for foreign and domes.
tic public utilities
In 1924, in the midst of agitation
over the Japanese immigra ton ques-
ton, he sold SIS 900 900 in bonds of
the Great Consolidated Electric Power
Co, while his firm was one of the
first to extend credits to German in
dustrtals following the adoption of the
Dawes plan. Mr.. Dillon also has act
ed as American banker for Holland
and Poland and has sold a French
government railroad loan in this
country.
Not "Financier" Type
Mr.. Dillon does not in the least re-
Semble the corpulent. heavy iowled
dOmineering individual of the type Sc
lected by playwrights and cartoonists
a. the Wall street baron. He is tall
dark, rather indolent appearing. with
heavy lids that at times almost cover
his eyes. His long. slender hands seem
to bear witness to the three wears he
spent in the study of art abroad after
he was graduated from Harvard in
l?05.
Few men in Wall street comma nd