Architect of the Autonoplex

Whether he wants a canvas or a corporation, esthetic Nathan Cummings is happiest "doing a deal." At the moment, the 69-year-old chairman of Chicago's Consolidated Foods Corp. ought to be exuberant. His art collection, mostly impressionist and postimpressionist, embraces "100 very, very good paintings and 500 fun ones," and his display of pre-Columbian artifacts at Manhattan's Metropolitan Museum is one of the world's finest. Corporately, Consolidated Foods last week agreed to acquire, for $3,400,000 in stock, Idaho Frozen Foods, Inc., a $5,000,000-a-year processor of frozen-potato products. This will be Consolidated's second acquisition in 1966 (the other: E. Kahn's Sons of Cincinnati, a meat processor with sales of $45 million) and the 44th since Cummings organized the company 26 years ago. Now the U.S.'s fastest-growing food processor, Consolidated will end its fiscal year next week with sales of $830 million and earnings of around $21 million, up 5% and 17% respectively.

"Too Many Are Afraid." In the art of acquisition, Canadian-born Cummings has the connoisseur's touch. He likes to buy the works of recognized painters, unblinkingly paid $92,500 for Picasso's Woman with Flowers. Doing corporate deals, Cummings looks for moneymakers whose owners might like the strength and size of Consolidated. He closes deals rapidly, sometimes in just one day. "If they don't go quickly," he says, "they usually never go." He scrutinizes a prospect's book value, sales and earnings reports, also examines advertising budgets because "advertising is closely related to consumer demand." How much will he pay for a company? "There is no man living who knows what the exact right price is for a business," Cummings believes. "You have to make a judgment, and too many people are afraid to make decisions."

In his pantry now are pastries (Sara Lee) and Popsicles (Joe Lowe Co.), poultry (Ocoma Foods), pickles and pears (Michigan Fruit Canners and USP Corp.). Cummings calls his company an "autonoplex," for autonomous complex. Each of the 20 divisions is independent, sends a weekly financial, statement to Cummings, who aims for them to earn a pre-tax 20% on employed capital. Two-thirds of the divisions exceed that target. The most profitable are Sara Lee, Ohio's Lawson Milk Co., Booth Fisheries, Shasta Beverages and Eagle Food Centers.

Where's That Dime? Cummings has been quick to sell off his few losers,*and he is personally no spendthrift. He and his second wife Joanne, 37, live luxuriously. But, remembering the day when he was down to his last nickel after having been laid off as a part-time shoe salesman, Cummings will reach into the coin-return slot after a pay-station telephone call to see if his dime comes back. "I may be extravagant," he says, "but I'm not wasteful."

Though he will be 70 this fall, Cummings has no retirement plans. He once quit at 42, after building up and selling off a Canadian shoe company and a biscuit firm, but got so bored that he used the profits to start Consolidated. He is currently interested in acquisitions in Europe, including the London hotel-and-restaurant chain of Forte's, Ltd. His work, like his art, brings pleasure along with profit. Once, at a dinner with wealthy North Shore friends, Cummings abruptly remarked: "I know many of you have had money for a long time. I just got mine. I like it, and I am enjoying it thoroughly."

-- From recent antitrust experience, Consolidated is now intently avoiding challengeable mergers. As the result of a consent settlement last year with the Federal Trade Commission, which aims to push the company out of food retailing, Consolidated must by December 1968 shuffle off three Midwest grocery chains, a dairy, a bakery. This is not as big a blow as it might seem, since the company will probably turn a profit on these sales.

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