Deals & Developments

I.T.&T. Activity was noted last week on International Telephone & Telegraph Corp.'s. Rumanian and Chinese fronts: on the former, victory; on the latter, defeat. Rumania's new King Carol approved the telephone monopoly granted the I. T. & T. by Parliament. The monopoly agreement is drawn up along the lines of the I. T. & T. Spanish concession. In China, on the other hand, the National Government last week termed invalid the franchise recently acquired by I. T. & T. to operate the telephone system in the International Settlement and the French Concession in Shanghai. The Chinese Ministry of Communications wants to take over these systems for the Government. "The Union of Chinese Telephone Subscribers" planned a telephone boycott.

Eating. Jubilantly, the William Alexander Barber interests, which last year wrested control of Childs Co. (lunch rooms) from the Childs family, announced last week a 100% rise in first-six-months earnings for 1930 over 1929. Though gross has declined slightly, net has more than doubled: from 68-c- a share in 1929 to $1.35 a share in 1930. Weeding out of unprofitable restaurants, economies in management, are responsible.

Mail Order Cut. To his 10,000,000 customers President George Bain Everitt of Montgomery, Ward & Co. wrote 10,000,000 letters last week. Gist of the letters was that prices had been cut drastically, time payments would henceforth be allowed on purchases of $25 and over. At once President Robert E. Wood of Sears, Roebuck & Co. told reporters: "Prices in the new autumn catalog of Sears, Roebuck & Co. are the lowest in ten years." Cause: suggested in President Everitt's statement that "we are placing orders for millions of dollars' worth of merchandise at the new low commodity levels." Effects: in Wall Street the fact that the price cuts came on the same day revived months-old talk of a Sears, Roebuck-Montgomery, Ward merger.

Mass Vacation. Last week 75,000 employes of Western Electric Co. went on their vacations, an exodus of Biblical proportions. Skeleton crews will keep Western Electric's plants from falling apart, will handle emergency orders for electrical equipment.

Profits. Two huge holding companies last week revealed proportionately huge profits. Transamerica Corp., holding company for the $1,167,116,000 worth of banks that Amadeo Peter Giannini managed to gather together before he retired this year, in its 1929 earnings statement, set down its net profit for the year at $67,316,000, or nearly $3 per share on the 24,000,000 shares outstanding (now selling at $26). However, the management holds "it would be lacking in ordinary business prudence" to ignore the current depression, plans to cut the October quarterly dividend from 40-c- to 25-c- a share.

United Founders Corp., the $327,389,000 holding company which controls American Founders Corp. and many another utility holding company, showed net profits of $5,442,000 in its report for the first six months of 1930, or 77-c- per share on the 8,650,671 shares outstanding (now selling at $20). It also, and for the first time, opened its portfolio to the public and listed its holdings: a 14-in. long column of bank, railroad, industrial, investment, utility shares, most of them well up into the thousands.

Layoff. Declining traffic is closing down many a railroad repair shop these days. B. & O., with 300 locomotives stored away in perfect condition, plans to close its large general shops from July 1 to 21. Last week New York Central announced the closing of its twelve heavy repair shops from July 19 to Aug. 4.

Socialist Soup. Last week the employes of the $1,500,000 Columbia Conserve Co., which makes soup, found themselves owners of 51% of the common stock, perfectly able, if they so desired, to discharge the president. Their rise to control began in 1917 when the Brothers Hapgood inherited the plant. Famed for his liberal views is Brother Norman Hapgood, onetime editor of Colliers, Minister to Denmark under Wilson. Brother William P. has been less publicized, but it is he, as president of the company, who has put Columbia Conserve in a class with Dennison Manufacturing Co. (paper goods) and Filene's (William) Sons Co. (Boston dept. store) as an industrial democracy experiment.* Employes are paid according to their needs rather than their abilities, a married stenographer perhaps getting more than an unmarried sales manager. Last year the company did a $1.000.000 business, of which $163,000 remained as net profit after all employe stockholders had received their dividends.

*William P. is father of Powers Hapgood, handsome and ardent Socialist. While working hard on the Saccp-Vanzetti case, Powers met another fiery Socialist, Mary Donovan, married her. Their first child they decided to name Bartolomeo (Vanzetti's first name). When the child turned out to be a girl, they resourcefully named her "Barta."

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