Deals & Developments

Stricken Stocks. For many a year Abitibi Power & Paper Co., Ltd., owning about one-fourth of Canada's newsprint capacity and a potential million horsepower of hydroelectric power, has stood No. 1 on the New York Stock Exchange list. Last week this honor, alphabetical only, fell upon Abraham & Straus, Brooklyn department store. For Abitibi was declared bankrupt, its transfer office closed, its shares stricken from the Big Board. Abitibi's troubles were only one storm-centre in the mightily troubled newsprint industry.-- Another stock stricken last week was Oesterreichische Credit-Anstalt fur Handel und Gewerbe, the name of which will play an important part in all financial histories of the present era. Formed by imperial decree in 1855, this Rothschild bank became the most important commercial house in southeastern Europe. When a run began on it last year. Austria tried to aid it, bringing on a crisis which spread to Germany where London banks became involved. The crisis became international and over half of the world was forced off the gold standard. Seneca to Bethlehem. Bethlehem Steel Corp., second biggest, is weak as a producer of sheet steel. Its only sheet plant is at Sparrows Point. Md.. where 130,000 tons can be turned out annually against U. S. Steel's 2,000,000. Bethlehem was blocked in its attempt to get a major sheet producer when negotiations with Youngstown Sheet & Tube were dropped. But last week it planned to buy small Seneca Iron & Steel Co. which makes 120,000 tons of sheet steel a year, also some stove and specialty sheets. Seneca is located at Buffalo, buys its sheet bars from Bethlehem's Lackawanna plant. It has assets of $4,000,000. few stockholders. Last week it seemed certain that no opposition to the deal could arise. Reports that Bethlehem would buy Eastern Rolling Mill Co.. another sheet producer, were denied last week.

*Through a typographical error TIME gave the impression last week that International Paper Co. cut newsprint prices to get business. Not International but Canada's Price Bros, cut the price. International met the competition. It was also stated in TIME that Finnish newsprint has been available in San Francisco as low as $33 per ton. This figure, widely printed, has been denied.

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