Deals & Developments

In California. In April the price of crude oil was upped in Texas and the mid-continent field. California did not follow and much California gasoline was shipped to the Atlantic seaboard. Last week Standard Oil of California promised to raise the price it will pay for crude oil by 25-c- per bbl. if production for the State is kept down to 476,700 bbl. a day against the figure of 486,800 bbl. the week the offer was made. Oilmen expected independents would meet the terms, less California gasoline would be shipped to the East, all gasoline prices would benefit. Offer for Richfield. James A. Talbot, onetime chairman of California's Richfield Oil Co., and two other former high executives of the company last week spent their fifth week in jail, serving for grand theft. Had they picked up a paper they might have read that Consolidated Oil Corp, (Sinclair-Prairie combine) was offering $18,000,000 par value 6% preferred stock for Richfield, which has been in receivership for 17 months. If the deal is acceptable to Richfield bondholders and the consolidated 6% stock is issued, it will probably sell to yield the same return as Consolidated's present 8% preferred stock. With the 8% preferred at $99 last week, the 6% had a theoretical value of $75, making the actual bid of $13,500.000, compared to $131,974,000 which Richfield's assets were listed at in 1929. Because Richfield's unsecured creditors were unlikely to get more than 20% of their claims and because Standard Oil of California was reported anxious to bid for the company it was thought that the offer would not be accepted at once. Fertilizer Merger. A merger was arranged last week between Virginia-Carolina Chemical Corp., a leading producer of fertilizer and sulphuric acid, and Armour Fertilizer Works, wholly-owned subsidiary of Armour & Co. of Delaware. The merged business will be known as Virginia-Carolina Fertilizer Corp., will be 61% owned by Armour. Virginia-Carolina has never made satisfactory profits. It sells mainly to farmers in the cotton and tobacco belts. Its president, Charles G. Wilson, with the company 19 years, will become chairman of the new corporation. Spokane Savings. The nine banks of Spokane, Wash, have some $50,000,000 deposited in them. Biggest is Old National Bank & Union Trust Co. with $18,000,000 in deposits. Next comes $12,000,000-in-deposits Spokane Savings Bank, which last week was forced to close. The suspension was Spokane's sixth since April 5, brought the total of tied-up deposits to $17,000,000. Receiverships. Two notable companies passed into the hands of receivers last week: Celotex Co. of Chicago and Russell Manufacturing Co. of Middletown. Celotex is a big maker of wallboard and similar products, using the stalks of sugar-cane for pulp. Its president is Bror Gustave Dahlberg. In early 1930 he sent each shareholder a personal telegram urging him not to "sacrifice" his holdings at the then current price ($50 a share). Russell Manufacturing makes automobile brake lining (Rusco), clutch disks, aero cloth, lines, rings and cords, safety belts, acid proof battery covers, surface tape. During the War it had large Government contracts for Army belts. A few months ago the company sold its business in suspenders, garters and other elastic webbings. The receivership for closely-held, 98-year-old Russell Manufacturing was described as "temporary."

Receiver. Because a receiver has full power over a company, is answerable only to the Court which appointed him, he is sometimes tempted to place friends on his payroll, award contracts to kith & kin. In 1929 to avoid such happenings the Federal judges of New York City's Southern District agreed to appoint Irving Trust Co. in all cases. Since then Irving Trust Co. has been appointed receiver in 4,158 cases, has completed 899 of them. The administration costs have averaged 29.22% of the realized assets. Famed Irving Trust receiverships have included: Judge, Pynchon & Co., International Match, Prince & Whitely, American Piano Co., Ambassador Hotels, Hudson River Navigation Corp., Schulte United Corp. In Detroit a similar agreement exists, all cares going to Union Guardian Trust Co.

Last week Charles H. Hyde, onetime chamberlain of New York City, called Irving Trust "a corporation without a soul," demanded individuals again be given receiverships. A few days later Judge John Clark Knox, senior member in the district, defended the practice. Said he: "From my personal observation the work of the Irving Trust Co. has been satisfactory and has served the purpose I thought it would serve. . . . The bank gives a better administration than when receiverships were given out among a variety of individuals with varying talents."

Wolf. In Manhattan's police line-up last week was David Lamar, onetime famed "Wolf of Wall Street." For the first time in his long career he was unable to obtain bail. He was accused of accepting $638 for an option on 2,000 shares of Republic Steel, keeping the money but giving no option. Onetime associate of prominent men, soft-voiced Wolf Lamar has during the past few years shown up in many petty schemes, usually escaped conviction. Bland, self-possessed, he wears a red bow tie with evening clothes just to be different.

Trucks. Will trucks ever displace U. S. railroads? Last week Professor William Zebina Ripley figured that to haul the freight carried by railroads would take 6,250,000 five-ton trucks, enough to form a 30,000-mi. line.

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