Steel War (cont.)

Last week a train drew into Youngstown. Ohio, bearing upon it two Lords of Bethlehem, come to cry to the citizens of Youngstown, to the shareholders of Youngstown Sheet & Tube. "Let there be merger!" One of the pair was President Eugene Gifford Grace who had conducted all negotiations with Youngstown's Founder-Chairman James A. Campbell. The other was joke-loving, big-chested, big-hearted Chairman Charles M. Schwab, than whom only Henry Ford is a more famed industrialist. Although Youngstown's Campbell publicly advocated the deal, Cyrus Stephen Eaton of Cleveland has furnished fierce opposition (TIME. March 24). And, perhaps afraid of Mr. Schwab's oratory, perhaps to be dramatic, but surely unwilling to compromise. Mr. Eaton left town almost the same minute that Bethlehem's Lords arrived.

With victory-confident Mr. Eaton gone, the burden of the defense lay heavily upon Bethlehem. With resounding voice. Mr. Schwab told assembled Youngstowners: "I'm one of the old folks in the steel business. I've been in it fifty years. I believe in doing big things in a "big way. and doing them right. If I had any doubt this merger would not be a good thing for both of us, I wouldn't take it as a gift. My policy is to take a plant and make it grow." Then, in a torrent of emotion, Orator Schwab told of his long friendship with Mr. Campbell, ended up with a plea: ''Jim Campbell, right or wrong, follow him." To Chairman Schwab, President Grace is the perfect complement. Cool, logical, incisive. Mr. Grace quoted figures to show Bethlehem spends money on its plants, increases its payrolls. ''The strength of Bethlehem."' he said, "lies in the strength of local institutions. We create local institutions. We do not centralize. We are going to cooperate for bigger and better manufacturing in Youngstown."

Despite these two speeches and a tearful one by Chairman Campbell, long and loudly applauded, local sentiment against the merger seemed strong. Famed Dr. John ("Bonesetter") Reese, who by special dispensation of the Ohio Legislature does service to unjointed athletes (.TIME, July 12, 1926). let it be known that he had switched his 1,000 shares to vote against the sale, then entrained for Florida.

Returning from Cleveland, Mr. Eaton again spoke against the "calamity'' and announced he had 412,571 shares whereas 395,201 could block the deal. To this Mr. Grace answered: "That statement is not at all in keeping with authoritative information I have received. ..." Just as dubious of Mr. Eaton's victory was Chairman Campbell, saying: "It is absolutely foolish for anyone to make claims. . The proxies already in our hands leave no doubt in my mind that the merger will be approved."

Thus, each side having finished its case, each side claiming victory, the City of Youngstown awaits April 8 when the stockholders' meeting takes place. But no peaceful quiet marks the interim, for until the hour of the meeting stockholders may revoke the proxies they have given, align with the other side.

This file is automatically generated by a robot program, so reader's discretion is required.