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hy MARINE REVIEW. [June 19 BETHLEHEM STEEL AND SHIP BUILDING COMBINATION. Negotiations have been completed by which the United States Ship Building Co.--the new ship yard combination outlined in the last issue of the Review--purchases the Bethlehem Steel Co. The control of the last named company has rested since last year with the firm of J. P. Morgan & Co., under an agreement with Charles M. Schwab, president of the United States Steel Corporation, made with that firm. About a year ago Mr. Schwab secured control of the steel company, much to the surprise of several financial interests which were at that time arranging a combi- nation to include Bethlehem, Cramps and Vickers, Sons & Maxim. Mr. Morgan was abroad at the time but when he returned he inquired into Mr. Schwab's purchase and insisted that J. P. Morgan & Co. be permit- ted to control it. Friendly relations will exist between the new ship com- bination and the United States Steel Corporation. As a result, it is un- derstood that there will be a readjustment of the United States Ship Build- ing Co., including additions to the board of directors and an increase in the capitalization. The plans for the ship building company have contemplated an_au- thorized capital stock of $20,000,000 and $16,000,000 of 5 per cent. first- mortgage bonds. Of these bonds $9,000,000 are now being offered for public subscription at 9714 by the Trust Company of the Republic and Harris, Gates & Co. The company is to unite the following ship building concerns: Union Iron Works, San Francisco, Cal.; Bath Iron Works, Limited, and Hyde Windlass Co., Bath, Me.; Crescent Ship Yard and Samuel L. Moore & Sons' 'Co., Elizabethport, N. J.; Eastern Ship Build- ing Co., New London, Conn.; Harlan & Hollingsworth Co., Wilmington, Del.; Canda Manufacturing Co., Carteret, N. J. The directors, it has been announced, will include Henry T. Scott, John S. Hyde, E. W. Hyde, Lewis Nixon, Charles R. Hanscom, Irving M. Scott, 'Charles J. Canda, Horace W. Gause, Daniel LeRoy Dresser and J. J. McCook. The Bethlehem Steel Co. was incorporated in Pennsylvania on April 17, 1899. Its capital stock amounts to $15,000,000, divided into shares of $50 each. Mr. Schwab paid $24 a share for most of the company's stock, which he acquired in September, 1901. Daniel Le Roy Dresser, president of the Trust Company of the Re- public, has made this formal statement regarding the deal: "The Trust Company of the Republic has completed negotiations whereby the United States Ship Building Co. has purchased the Bethle- hem Steel Co. This plant will be put in with the others that. have been consolidated, and whose bonds will now be offered to the public. With this acquisition, the United States Ship Building Co. will be by far the most completely equipped and self-contained ship building plant in the world, manufacturing everything itself, including its armor plate and guns. From the financial aspect, this acquisition makes the securieties of the ship building combination very desirable. Either the combined plants, or the Bethlehem works itself, are making earnings more than sufficient to pay the interest on the bonds issued, so that the earnings from either plant can be applicable to the dividends on the preferred and common stock. This is, on the present basis of earnings, enough without figuring on any savings that may come due to the consolidations. This combination with the enormous facilities behind it, its strong financial backing, and with the management it will have, is destined again to put this country in the posi- tion which she once held as the leading ship building nation in the world." Lewis Nixon, president of the Crescent Ship Yard, said: "The acquisition of the Bethlehem Steel Co. by the United States Ship Building Co. is the most important industrial step taken in this country since the formulation of the United States Steel Corporation. It gives to the new company facilities for building a battleship complete with armament, armor and all equipment. No such company exists else- where in the world. Arrangéments have been made with the United States Steel Comporation by which prompt deliveries of hull steel on favorable terms will enable us to promise vessels absolutely on time. More important, however, is the fact that in case of bidding for vessels in competition with European builders our hull steel will be obtained at a price that will not cause us to lose contracts on account of the price of steel. The Bethlehem Steel Co. is now making armor and forgings and building guns and gun carriages for the United States, Europe and Mexico, and work is in sight that will tax the capacities of Bethlehem and the ship yards far beyond that made by their present volume of orders. This company can now enter with confidence the foreign field and demand and obtain its share of the world's ship building, despite the adverse con- ditions which have heretofore confronted the American ship builder. The ship yards not in our consolidation will reap the benefits due to the healthy competition, as our desire is to put ourselves in shape to compete for foreign work, and in doing this we shall be doing the greatest service to the American ship owner and doing our part in bringing back the Ameri- can flag in the foreign trade. We can develop ship building mechanics that will, in time, undoubtedly repeat the lessons of other industries hav- ing a steady demand for their products, and so give stability in employ- ment and greater earning power to the workers. Whatever brings about a healthy and enduring ship building industry here will benefit every call- ing, profession and trade, and every American should be proud to see the establishment of a company upon a financial scale and technical basis that insure success." Mr. Nixon added that the newly acquired property would be paid for by an issue of bonds in addition to the $9,000,000 issue, which is now offered to the public. He was not prepared to say how much the capital stock of the ship building company would be increased. The bonds now offered are secured by a first mortgage on the six plants in the new com- bination, which are appraised at more than $20,000,000. Above this ap- praised value the concerns will have a working capital of $5,000,000. The company has, according to the statement of its officers, contracts for work amounting to more than $36,000,000, on which they estimate the profits to be more than $5,000,000. "Ay . At a meeting held in Montreal last week the lease of the output of the mines of the Dominion Coal 'Co. was ratified by the shareholders of the Dominion Iron & Steel Co. The coal company thereby virtually passes to the steel company. Mr. James Ross was made president of both 'com- panies in succession to H. M. Whitney of Boston. Senator George A. Cox of Toronto and Senator Forget of Montreal were elected vice-presi- dents of both companies. ROACH'S SHIP YARD PURCHASED AND REORGANIZED. The Delaware River Ship & Engine Building Co., Chester, Pa:, has been organized with a capital stock of $5,000,000, all common, and a bond issue of $2,500,000, bearing interest at 5 per centum. Papers of incorpora- tion were filed at Trenton, N. J., last Saturday. The incorporators of the company are Osborn Congelton, George H. Cook and Henry F. West. Osborn Congelton is president of the American Elevated Railway Co. Concerning the new corporation, Mr. Congelton said: "A syndicate composed of myself and others has bought out the Roach ship yard at Chester. We propose to double the capacity of the plant, and install all kinds of machinery that will enable us to build all kinds of vessels, including warships. Within twelve months we will be able to turn out one vessel a month. The company has been organized with the election of John B. Roach president; Osborn Congelton, vice- president; E. L. Levy of the ship building firm of Neafie & Levy, secre- tary; and D. E. Ford, marine engineer of the Standard Oil Co., general manager and treasurer. Within the next few: years Chester will be the home of one of the largest ship building concerns in the world. The stock of the Roach company has been held by the Roach family for years. We have purchased practically all of their stock. None of the new stock will be offered to the public.. With the proceeds from the stock we propose to carry out our plans. of extensions and improvements. We have been guaranteed orders from sources which means steady work for our com- pany for five years. The company has no connection with the proposed UP building trust. We took over the Roach company clear of all encum- rances,. LAUNCH OF THE CRUISER DENVER. The cruiser Denver, one of a class of six, will be launched at the Neafie & Levy Ship & Engine Building Co.'s works, Philadelphia, on Saturday of this week. She will be christened by Miss Roberta M. Wright, daughter of Mayor Wright of Denver. The general dimensions and features of the Denver are: Length on load water line, 292 ft.; length, extreme, 308 ft. 2 in.; breadth, extreme, 43 ft:; mean draught at trial displacement, 15 ft: 3 in.; extreme draught, fully loaded, 16 ft. 8 in. _ DRAWN BY NICHOLAS J. QUIRK. THE CRUISER DENVER. Her engines are of the vertical, inverted, four-cylinder, triple-expansion type with an estimated horse power of 4,500. Steam will be supplied by six water-tube boilers. Her main battery will consist of ten 5-in. rapid-fire guns. Her secondary battery. will consist of. eight 6-pounders, two 1- pounders and four Colt machine guns. She will have a sail area of about 6,000 sq. ft. Her complement of officers will be twenty-seven, seamen 238 and marines twenty-five. : The New England Co., Bath, Me., is building for the Baltimore & Boston Barge Co. a barge 225 ft. long, 85 ft. beam and 18 ft. depth of hold.