Evening star., 1929-12-19
EATON ORGANIZES
BIG STEEL CONCERN
New Independent Company
Ranks Next to. U. S. and
Bethlehem Firms.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, December 1e.-Cyrus S.
Eaton, Cleveland capitalist, has finally
succeeded in building around the Re-
public Iron e. Steel Co. an independent
steel organization which ranks third in
size in the country, being exceeded only
by the United States Steel and the
Bethlehem Steel
Mr.. Eaton has accomplished this
through a series of mergers, including
Central Alloy Steel Corporation, Donner
Steel, Inc; the Bourne-Fuller Co. and
their subsidiaries
It is expected that the YOUNGSTOWN
Sheet & Tube Co., the Jones g. Laugh
lin Steel Co. and one or two others will
be brought into the picture later. Then
Mr.. Eaton's organization will rival or
exceed in size the Bethlehem Steel.
Cyrus S. Eaton, born in Nova Scotia
As years ago, is soft spoken, quiet, hard
to see, tactiturn, even with close friends
He began his business career as a
clork in little store at Pugwash, Nova
Scotia; was educated at McMaSter Col
lege, Toronto, then moved to Cleveland
because relative, DR.. c. A. Eaton, was
the preacher of the First Baptist
Church, the Rockefeller church, there
In the panic year of 1907 he associ-
ated himself with George T. Bishop,
Cleveland public utility operator. They
secured few options on electric prop
critics in Iowa, but New York bankers
turned thumbs down" on bonding
them. Otis e. Co. of Cleveland took
the bonds. Eight years later Mr.. Eaton
became dominating partner in this
big bond house.
Mr.. Eatons utilities grew rapidly.
Two years ago, associated with the Mel
Ions of Pittsburgh he expanded the
United Light & Power, especially in the
manufacture of gas.
The similarity of the Eaton methods
and those of Cleveland's other business
giants, the Van Sweringens, is striking.
Both are quiet, averse to publicity,
proceed quietly until everything is set
tied, then the big" plans are announced
in practically complete form.
This Cleveland capitalist has taken
life little easier during the last two
years. He spends considerable time
now with his eight children on his
beautiful country estate, between Cleve-
land and Akron, rides horseback and
dabbles in landscaping.
Recently he has gone on the board
Of trustees OF the University of Chicago.
"The wise common stock buyer is
usually active when others get dis
worth. So he buys his stocks on the
low market and waits for the upward
movement" said a seasoned stock
market operator yesterday in COM
menting on the type of people who were
buying in the present market.
Big blocks are not going off the
boards as they did in the boom" days.
It's the 100, 200 and 500 share lots
that constitute the bulk Of the trade.
This is small trading, In the eyes OF
Wall Street
Many of the old 5000 and 10000
share lots are being absorbed, not by
few big buyers but by scores OF small
investors. Whether they secure their
purchases at the lowest point doesn't
appear to them to be the important
question. Many stocks are on a very
attractive basis, and that is the test in
these searching days.
And that, too, accounts for the very
large increase in the number Of stock
holders on the books Of the larger cor
porations during the last two months:
"On September last we had 1915
stockholders. On December 6, the num-
ber of registered stockholders had come
up to 135S9-a new high record" SAID
Ralph Kohn, treasurer Of the Para
mount t-Famous-Lasky Corporation, TO
this writer.
Inc record OF many OILlCl SOlIlPoAA~S
is equally impressive.
When Argentina's 82-year-old Presl-
dent Irigoyen closed the gold conversion
Office in Argentina this week because or
unstable conditions in the worlds t1nan-
cial markets, he practically announced
to the world that for the time being Ar
gentina was no longer on the gold stand
ard.
The move of the old President was
probably based on the fear that gold
Withdrawals from Argentina would re-
strict the volume of its circulating me-
dunn and thus embarrass its credit
structure.
What effect will its closing have on
American export trade? Probably
temporary unfavorable effect, as every
thing paid for in dollars will naturally
be raised in price.
The Argentine cattle growers will
benefit temporarily, because they Will re-
ceive more pesos for meat and hides sold
in dollars or in British sterling. But the
credit of Argentina, outside of Argentina
itself, will doubtlessly be adversely az
fected. Already there has been sharp
break in the price of South American
exchanges and in their bonds. because
of the uncertainty growing out Of the
situation.
"Argentina's need today is for a real
effective central bank, built along the
lines similar to the Federal Reserve"
said this banker.