Monday, Feb. 07, 1955
HP-TIme.com
GIANT COKES are on the way. Coca-Cola, which has been trying out bigger sizes since last summer (TIME, Oct. 11), is now test-marketing a 26-oz. "family-size" bottle (with the same hourglass shape) that sells at two bottles for 39-c- in San Francisco and two for 35-c- in the Boston area.
UNION INVASION of the business world by using pension funds to buy into companies is progressing. A.F.L.'s International Brotherhood of Electrical Workers has just paid out $1,920,000 for 16,000 shares and control of the American Standard Life Insurance Co., and Dave Beck's Teamsters, who invested $1,500,000 in Fruehauf Trailer Co., then bought $1,000,000 worth of Montgomery Ward stock, now plans to spend still another million for 12,100 more shares of Ward stock.
LOWER HUDSON PRICES will result from Hudson's merger with Nash into American Motors Corp. By doubling up with Nash on purchasing and production, Hudson has been able to cut prices an average $155 on its Wasp line, up to $204 on the more expensive Hornet models.
FEDERAL COMPETITION with business will be cut under new orders of Budget Director Rowland Hughes. All Government agencies have been ordered to discontinue all possible competitive businesses costing more than $5,000 annually and "to refrain from starting commercial activities which might be competitive with private business."
CAMPBELL SOUP, already the biggest U.S. soupmaker (1954 sales: $339 million), will expand 50% by 1960, says President William B. Murphy, who also predicts that 1955 will be the company's best year in history. Campbell will spend $60 million on new plants to make soup, frozen foods, etc. in the next five years, expects to push sales over the $500 million mark.
NATIONAL CAN CORP. will become the industry's third biggest producer of tin cans (after American Can & Continental Can) as a result of its $19 million purchase of San Francisco's Pacific Can Co. National paid $28.57 a share for some 365,000 shares of Pacific owned by President E. F. Euphrat and his family, will offer the same price for the remaining 100,000.
SYNTHETIC RUBBER SALE of 24 out of 27 World War II plants has given back to the Government 96.6% of the total net cost of the program. In all, 15 big U.S. rubber, oil and chemical companies will pay $310 million, almost the full current value that independent appraisers put on the plants, and more than twice as much as the worth on Government books (which subtract normal yearly depreciation).
U.S. SHIPBUILDING is now back in third place in world rankings. Bumped out by Germany in 1953, the U.S. passed Japan in 1954. The rankings: United Kingdom 1,500,000 gross tons, Germany 920,000, U.S. 585,000.
TEXAS' CLINT MURCHISON is taking over control of Investors Diversified Services, Inc., the $1.5 billion savings plan and investment trust that Railroader Robert R. Young snapped up in 1949 for $2,000,000. Young's Allegheny Corp. has agreed to give Murchison 230,000 shares of I.D.S. voting common stock in return for $7,687,500 cash, and 130,000 nonvoting shares that Murchison holds. If the SEC approves, Murchison will have 367,500 voting shares, or about 64% control, while Young will still have 170,195 shares and 30%.
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