Shrewd Shopper

In the basement of U. S. industry are bargain counters on which lie many slightly worn companies, awaiting buyers with the cash and skill to restore their earning power. Recently Allis-Chalmers Manufacturing Co. (electric-equipment, heavy machinery, farm equipment) has been revealed as such a buyer. Last fort night it acquired the business of Advance Rumely Corp., unprosperous maker of farm machinery (TIME, April 27). Last week it again went forth to shop. This time it angled (with cash plus stock) for the unprofitable electrical business of American Brown Boveri Electric Corp. Boveri was formed in 1925 to succeed New York Shipbuilding Corp., and acquired the U. S. licenses of Brown Boveri & Co., Ltd. of Baden, Switzerland, one of the world's leaders in the electrical equipment field. In 1928 it contemplated sale of its shipbuilding business but changed its mind when the Jones-White law was passed, sending it much new business. In 1925 Boveri made $1,607,000; in 1929. $402,000; in 1930, $1,527. During the first three months of this year it lost $127,000. Last year it billed and completed $22,000,000 worth of work. Allis-Chalmers is the third biggest electrical equipment company, will be strengthened considerably by the deal. No statement was made of how much cash or how much stock is being paid. Officials merely said that the deal will be effective as of Jan. 1,1931.

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