Fur Troubles

When a company discovers an unwanted deficit, first aid can be brought either in the way of outright cash gifts to increase the assets, or the return of stock, to decrease the liabilities. Last December, Harrison Williams and Goldman, Sachs, viewing the deflated books of their new Shenandoah Corp., permitted it to purchase for retirement 765,000 shares of its own $50 preferred stock at a price below its then current $35 quotation (TIME, Dec. 16).

Last week another company received resuscitation in this manner. Eitingon Schild Co., Inc. is the world's largest fur organization, has usually reaped big profits from pelt operations extending around the world. Last fall, however, when stocks crashed the fur market had its most violent decline in history, average drops ranging from 30% to 50%. The only skins unaffected were such blue-chip staples as the very fine white, silver, and cross fox, Russian sable, fisher. The cheap but U. S. favored raccoon temporarily maintained prices because of seasonal demand. Eitingon Schild's inventories had to be written down, and it did not seem likely that dividends on the 6 1/2% convertible preferred could be maintained. Since Goldman, Sachs underwrote this issue, and since Eitingon Schild's trouble was just that of Shenandoah, decline in inventories, it is an easy guess as to whence came the idea that Eitingon Schild officials turn in about $2,000,000 worth of preferred and common stock, enough to wipe out the expected deficit and provide for dividend payments.

Although the present company was formed by one Waldemar Eitingon and one Sol Schild, the Eitingons, descendants of potent fur traders for three generations, dominate the company. Before the War the Eitingons operated in Leipzig, New York and Moscow. The centre of their trading operations was Moscow Fur Trading Co., headed by Motty Eitingon. Imprisoned by the Bolshevik Government, Trader Eitingon escaped and reached New York in 1919, became president of Eitingon Schild.

About 40, Motty Eitingon must concern himself with such problems as the supervision of a Polish subsidiary engaged in the textile industry, proper handling of a $16,000,000 fur contract with the U. S. S. R., preservation of secret dye formulas. He has, however, plenty of time for relaxation, which he divides between a home on Park Avenue, and another in Leipzig. Riding, music, are his hobbies; generosity his outstanding characteristic. To satisfy his riding urge he keeps a string of horses in Manhattan. He is said to have been the patron of the violinist Benno Rabinov. His spending takes the form of lavish entertainment, maintenance of a hospital in Leipzig, and now, donations to his company.

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