Matches

A recent flotation of 450,000 participating preference shares of the International Match Co., handled by a syndicate headed by Lee, Higginson & Co., has directed the attention of the U. S. to some curious features of the match industry abroad. The primary purpose of the new stock flotation was to acquire for International Match a 20-year lease of the Republic of Poland's governmental match monopoly, which has a capacity of about one billion boxes annually.

The International Match Co. is a Delaware corporation organized in 1923 to acquire the capital stocks of various match companies operating 75 manufacturing plants in countries outside Sweden. But the control of International Match is in turn held by the Swedish Match Co., an old and profitable Swedish concern which formerly did its financing in London.

Under the agreement with the Republic of Poland, International Match advances funds to Poland at 7% interest and amortization, and capital to purchase Polish match factories and develop the Polish chlorate industry. Out of the company's earnings, the Polish Government will furthermore receive about $1,000,000 annually, while International Match will receive 12% on all money it invests, plus amortization. Any remaining profits' will be divided equally between the Company and the Polish Republic.

In Wall Street, the agreement was looked upon as a sound business stroke by the Polish Government, in getting current funds and future assured income, while at the same time avoiding the inevitable difficulties of itself engaging in business.