Mergers

Mergers, when they become official, are seldom news, since almost invariably they are preceded by weeks, months of rumors. Last week saw mergers planned, mergers rumored, mergers denied, mergers accomplished.

Guaranty-Commerce. The largest merger rumor, persisting over many denials, related a forthcoming union between Guaranty Trust Co. and National Bank of Commerce, both of Manhattan. Should this rumor--which has proceeded to the "reliably informed" and "authoritative sources" stage--be true, the resulting combination would constitute the world's largest bank. Guaranty Trust has resources of $1,052,000,000; National Bank of Commerce has assets of $934,000,000-- thus the merged banks would form a two-billion-dollar institution. Combined deposits of the banks would total $1,570,000,000. An exchange of stocks would probably be made on a share-for-share basis, as both Guaranty and Commerce stock are quoted at more than $900 a share.

Radio-Western Union. Last week David Sarnoff, vice president and general manager of Radio Corp., and Newcomb Carlton, president of Western Union, sailed for Europe on the Aquitania. The incident strengthened rumors concerning a Radio-Western Union merger. Chief obstacle to a union between Radio Corp. of America Communications, Inc., and the Western Union Telegraph Co. is the White Act, Federal law forbidding the merger of wire and radio companies. It is believed, however, that Radio and Western Union will soon conclude an operating agreement. Later an effort will be made to amend the White Act to permit a merger.

Shipping Merger. Probable sale of United States and American Merchant Lines to P. W. Chapman & Co. inspired a rumor that Mr. Chapman will next proceed to acquire the Munson Steamship Line, ships of which sail from U. S. to South American ports. Both Chapman and Munson interests, however, sharply denied this rumor.

Textile Merger. Consolidation of Frederick Vietor & Achelis with Peierls, Buhler & Co., Inc., leading textile financing firms, was last week announced by Commercial Investment Trust Corp., which has acquired control of both organizations. Resources of the combined firms total $35,000,000; annual sales are in excess of $100,000,000.

Insurance. The Firemen's Insurance Co. of Newark, one of the world's largest fire and casualty insurance companies, last week consolidated with Commercial Casualty Insurance Co. of Newark, on a basis of ten shares of Firemen's for nine shares of Commercial Casualty. Capital of the merged companies will total $125,656,327.

American-Standard. Negotiations for a merger of American Radiator Co. with Standard Sanitary Manufacturing Co. of Pittsburgh were last week completed. A holding company will be formed to take over stock in the combined organization on a basis of approximately three and two-thirds shares of Standard for one share of American.