Deals & Developments

Hill's High, Proud of its 1931 showing was American Tobacco last week. Despite Depression its earnings reached a new high: $46,189,000 against $43,294,000 in 1930. "You will, I am sure," said President George Washington Hill to shareholders, "be pleased to know that the year 1931 has witnessed a still further increase in our percentage of the total cigaret business of the United States." In Federal taxes alone last year American Tobacco paid $3.50 for every $1 it earned. Wages were maintained and the total number of employes increased.

Not so pleasant to Mr. Hill was a decision last .week which granted Richard Reid Rogers a temporary injunction against further bonus payments by American Tobacco to its officers. Attorney Rogers protested against the American bonus system last March soon after it became known that the company sold employes 56,000 shares of stock at $25 when its market value was $112. President Hill received 13,440 shares, equivalent to a $1,200,000 bonus. Few other shareholders have shown any desire to protest, feeling Mr. Hill well deserves to proceed as he sees fit. Federal Judge Francis Caffey, in giving his decision last week, made it clear that it was not final, wanted a definite ruling by a higher court.

Reported last week was February cigaret production, gauged by tax stamp figures. A loss of 1,155,738,000 cigarets from a year ago, or 15%, was shown.

G. M. Report Revealed. The motor trade follows the State registration figures for all different makes from month to month. But few stockholders do, and last week the 313,000 shareholders of General Motors were glad to be told in the annual report that G. M. cars accounted for 43.3% of registrations last year against 34.5% in 1930. While total registrations were plunking down 27.3%, G. M.'s volume decrease was but 8.8%. Also revealed was the fact that G. M. has bought out the 20% minority interest in Adam Opel, A. G. of Germany, now owns all that company's stock. A price of $8,700,000 was indicated for the 20%. The entire Opel investment is now carried at $34,000,000 on G. M.'s books.

Meanwhile last week Ford production had not started on a large scale despite much hullabaloo about his "risking all" (TIME, Feb. 22). Steelmakers chafed and competitors tended to await Ford's moves, slowing all industry.

One, Two, Three. . . .Rumor that John North Willys will soon return to active management of Willys-Overland Co. were commented on last week by the Ambassador to Poland: "The management of the Willys-Overland Co. is in the hands of the president and directorate, elected by common stockholders. My present financial interest ... is the ownership of a large block of preferred stock, which becomes voting stock after four quarterly dividends have been omitted. On April 1 the third will have been omitted."

General Hat Four famed U. S. hat names are Dobbs, Knapp-Felt, Knox, Dunlap. The first two belong to Cavanagh-Dobbs, Inc., a company whose roots run back to 1858 and which boasts of having introduced the first U. S.-made derby in 1860. The other two belong to Knox Hat Co. Inc., founded in 1838 by one Charles Knox. Last week Dobbs-President John Cavanagh announced a merger with Knox Hat. A new holding company, General Hat, will take over both concerns. Although both Dobbs and Knox have been making adjustments in their retail store outlets, General Hat's sales will probably run close to $10,000,000 yearly.

1931 & 1921. Ernst & Ernst, top-notch accountants, last week finished a study of earnings. They found that in 1921 the total earnings for 379 industrials were off 91.64% from 1920; in 1931 they were off only 78.09% from 1929. Last year 1,863 companies of all classes earned 38.91% less than in 1930. Keeping step with the earnings trend, the 30 stocks used in the Dow-Jones price averages have dropped 79.78% from their 1929 peak.

World Control. The extreme difficulty of world control of commodity production was painfully apparent last week to sugar and rubber growers. In Paris the International Sugar Conference admitted that differences between Cuba and Java have as good as wrecked the famed Chadbourne Plan (TIME, Feb. 2, 1931). After a five-month attempt, the British and Dutch Governments last week conceded that their attempts to regulate rubber production were futile.

More fortunate were the producers of copper, far less numerous, of course, than sugar and rubbermen. After almost breaking up, a world conference in New York agreed to curtail production from 26 1/2% of capacity to 20%.

Grand-Silver Receivership, Receivers last week took over the 115-store chain of F. & W. Grand 5-c--10-c--25-c- stores and the 49-store chain of Isaac Silver & Brothers Co., Inc. Both companies are owned by F. & W. Grand-Silver Stores, Inc. which last year had consolidated sales of $37,000,000, listed its assets in 1930 at $31,000,000.

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