Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-27
BY LEMUEL F. PARTON.


Special Dispatch to The Star.
YOUNGSTOWN, Ohio, March a.
Proud and defiant early-day American
individualism is fighting battle here
which has put capital on q soap box, all
but depopulated the Youngstown Club
resort of steel millionaires, and made
one of those usually well oiled and
noiseless mergers look like hot politi-
cal campaign or world series.
j. A. Campbell one-time undertaker's
assistant and iceman and now chair
man of the board Of the Youngstown
Sheet g. Tube 90, wants to merge the
company with the Bethlehem Steel Cor
poration. Thirty years ago Mr.. Camp
bell founded the Youngstown company
scraping it together out of few odds
and ends, and by his efficient manage
ment and financial genius made 1t the
fourth largest steel unit in the world
But he Is now rs, and after a recent
visit to Youngstown by Charles M
Schwab and Eugene Grace Of the Beth
lehem corporation, announced his sup
port Of a merger plan by which one
share Of youngstown would be ex-
of Bethlehem.
Declares Merger Imperative.
Isolation, high freight rates, the
Pittsburgh base, rate and other factors
made the merger imperative, said Mr..
Campbell.
This town is built into a matrix of
steel It has highly inflammable civic
pride In the Youngstown Sheet & Tube
Co. No Derby winner carrying the
family silks to victory and lifting the
mortgage on the farm was ever cheered
more Justify than this old company
coming down the home stretch with
the dividends. When 1t was announced
two weeks ago that dear old Youngs-
town Sheet might be sold down the
river, there was first q proxy battle,
confined to stockholders, and then 1t
was everybody's fight.
About 20 per cent of the 1900, 600
shares of Sheet & Tube are held in
youngstown and 20 per cent in Ohio.
The opponents Of the merger, led by
Cyrus Stephen Eaton, Cleveland banker
and industrialist, are determined to de-
feat the merger when 1t comes to an
issue on April 8. Rival headquarters Of
Sheet & Tube interests are bombarding
stockholders with statements, appeals
If the merger Is or is not carried
through. Today opponents of the merg-
er are claiming victory. They say
their side already has more than enough
proxies corralled.
Just now there is q bulletin out that
"Bonesetter" Reese is out against the
merger, having at first Endorsed it. Mr..
Reese, by special dispenSation Of the
Ohio Legislature, is boneSetter eXtra1r-
binary to big league pitchers who I'M
joint themselves in the line of duty.
His announcement that he would vote
his youngstown stock against the merg-
er was regarded as telling blow for the
isolationists.
Council Opposes Merger.
This highly democratized and pub
licized popular interest is flaming up
all through this smoky Mahoning VAL
ley. 1t is unique in the history Of
American industrial battles.
I'VE won't be payroll town" Is the
cry of the recalcitrants. There are
five generations of steel families here,
such as the WickS, the Stamboughts
and the Buffers. They are proud of
their management, their share in own
ership and their independence. and they
throw them in with European cartels.
They fight against foreign entangle-
ments." An imprisoned city council
man invoked Patrick Henry on Glib
erty or death" in denouncing the merg-
er, and the council voted five to one
against the merger. This onlooker has
observed no other instance in which q
city council has taken q hand in o
5000, 000, 900 steel merger. It may be
one of the first fruits of "democratized
finance" of which Prof. Carver writes.