Troubles

After Samuel Insull's gigantic utility empire began to crack up (TIME, April 18 et seq.), people thought the bankers would keep the Dean of Utility Operators to help them salvage the wreckage. But last week 73-year-old Samuel Insull resigned from the chairmanship of his three finest operating properties, Commonwealth Edison Co., Peoples Gas, Light & Coke Co., Public Service Co. of Northern Illinois. Said he: "Due regard for my health necessitates my retirement. . . ." He also re-signed as one of the three receivers of Middle West Utilities, subject to court approval. But La Salle & Wall Streets, noting $65,000,000 of maturities in the next few months, wondered whether the three companies' long term mortgage bonds (to be used for refunding) would not sell better with a change in management. New chairman of all three will be hardbitten, hard-working James Simpson, board chairman of Marshall Field & Co., a position he promptly resigned last week. Fortnight ago he hurried back from India (by boat and plane in 14 days). As vice chairman the "Instill" companies will still have Samuel Insull Jr., familiar with personnel & problems.

Consolidation Coal Co. is the Rockefeller coal company. Pittsburgh Coal Co. is the Mellon company. Pittsburgh produces more bituminous coal than Consolidation but its reserves of a billion tons are only half of Consolidation's. Last year Pittsburgh earned a little more than half of its fixed charges, Consolidation earned two thirds. Last week it was no surprise that 72-year-old Consolidation should go into receivership. Operating an "open shop," Consolidation has had little labor trouble but all other coal woes have been its woes. The receivership was precipitated by failure to pay interest on an $18,927,000 bond issue.

During April bituminous coal production was 20,300.000 tons, the lowest since July 1922. Labor troubles were a contributing factor.

M. & O. The 84-year-old Mobile & Ohio Railroad operated 1,159 miles of track between St. Louis and Mobile, Ala. It has been controlled by Southern Ry. since 1902. Last week the Southern decided to stop advancing funds to M. & O., saw its subsidiary consent to a receivership, announced, "The consequences of this decision must be to ease the Southern's own position." The receivership was the first in the railroad field since Reconstruction Finance Corp. was formed, first since the Wabash and Ann Harbor receiverships last December. The M. & O. had applied in vain for a $1,000,000 R. F. C. loan.

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