Two in One

Ludlum Steel Co. of Watervliet, N. Y. had a better Depression record than most of the big, less-specialized steelmakers; last year it had net sales of $13,000,000, greatest in its 40-year history. With negligible facilities for producing flat-rolled steel, Ludlum sells about 50% of its output (wire, bars, etc.) to the automobile industry, the rest to manufacturers of machine tools, oil refining and aircraft equipment, stainless steel building products. Last year the company considered raising money to expand; but the capital market was so stagnant that directors, fearing the plan might miscarry, called it all off.

Another small company which quickly responded to Recovery is Allegheny Steel Co. of Brackenridge, Pa., 19th in the industry. Allegheny, whose net sales were $36,500,000 last year, makes sheet and plate steel for automobiles, electrical equipment, light-weight railroad cars; has ample equipment for turning out sheet steel, needs more facilities for making bars and quality alloys. Two years ago, Allegheny merged with West Leechburg Steel Co., practically doubled its facilities.

Last week directors of Allegheny and Ludlum voted to merge: "... Important economies will be effected. . . . The combined companies . . . will be more nearly self-contained because of the complementing facilities." Only step necessary to complete the deal is ratification by stockholders, which is expected early in August. Stockholders of both companies will exchange their holdings share for share in the new company, to be called Allegheny

Ludlum Steel Corp. Allegheny Ludlum will be the industry's 18th largest company, with an annual capacity of 138,000 tons of quality alloys, 400,000 tons of flat-rolled soft steel, plants in upstate New York, Pennsylvania, Connecticut, Michigan.

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