The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-03-13
STEEL GIANTS
WAGE WAR OF
CONSOLIDATION
Youngstown Firm Bone in
BiIIion-OoIIar Merger
Project.
PROXY HUNT UNDER WAY
Republic Company Seeking
to ThWart Acquisition
by Bethlehem.
BIZ United Press

BV United Press
NEW YORK. March 13.-A free
for-all battle in the steel industry
was deemed certain today with the
announcement that directors of the
Bethlehem Steel Corporation and
Youngstown Sheet and Tube Com
pany had approved plans for a
billion dollar merger.
Approval was announced Wednes-
day after board meetings held here
by the Bethlehem Corporation and
in Youngstown, o., by the Youngs-
town company. A special meeting
of youngstown stockholders has
been called for April 8, either to
consummate or reject the CONSOLE
dation plans.
Soon after announcement was
made Of the directors action, came
word Of opposition to the project
This opposition revolVes around the
fact that the merger would create
an organization capable Of produc-
ing approximately 100000 tons of
ingot annually. making it the sec
ond largest steel producer in the
country.
What this merger would do for
Bethlehem, it could do for Republic
Steel Corporation, a company re-
Gently formed through a series of
acquisitions and a factor in the in
dustry. Hence. Republic is casting
longing eyes toward the YOungs-
town company.
Control Block
Cyrus S. Eaton, Cleveland flnan-
cier, who was a factor in the devel-
Opment of Republic, is said to con-
troll 20 per cent of the Youngstown
cOmpany's voting stock and to have
the support of other large stock
holders.
After the meeting Wednesday, the
Eaton group announced from Cleve-
land that it would start action i'm
mediately to thwart the Bethlehem
Youngstown merger. The announce
ment said further that a proxy COM
mittee representing Youngstown
and Cleveland interests would be or
ganized to fight the reject and
that it would star S bid for
proxies.
Undaunted, howeve by the tenn
pOrary setback Occasioned by the
action of the Youngstown Bethle-
hem directors, the Republic COM
pany moved ahead in its effort to
maintain and increase its present
prestige. Announcement was made
that a controversy with certain
stockholders of the Gulf States
Steel Company of Birmingham,
Ala, had been settled, paving the
way for a merger with Republic
Indication that a merger soon
would be consummated was seen in
the fact that a special meeting of
Gulf States stockholders, at which
n proxy battle was to have been
waged, on March 4, had been can
celed.
Unit Control Sought
In addition, it is reported in
financial circles, that a sharp fight
may enSue for control of Jones &
Laughlin. one of the largest in
dependent units of the country. Re
gardleSS of the outcome of the pro-
posed Bethlehem-Y Youngstown con-
solidation, Jones q Laughlin, with
assets OF $210,000,00O, would be
sought after.
It also is common gossip that
eventually Republic may seek to
take over Inland Steel with assets
of S101 10000, and Colorado Fuel
and Iron, with $8O,000,OO0 assets.
Meantime, it is pointed out that
United States Steel with assets OF
more than all the independent pro-
ducers combined. may do some &C
curing on its own account.