Deals & Developments

Cotton Belt. Running from St. Louis to Fort Worth is the 1,700-mi. St. Louis Southwestern Railway, better known as the Cotton Belt. Last week it became known that Southern Pacific Co. has bought a big interest in Cotton Belt, has options on enough stock to give it control. Previously, Leonor Fresnel Loree had tried to join the Cotton Belt, Kansas City Southern, Missouri-Kansas-Texas and link them with his Eastern interests (Delaware & Hudson) but was frustrated by the I. C. C. Southern Pacific, too, will have trouble absorbing Cotton Belt. The I. C. C.'s great consolidation plan assigns Cotton Belt to Illinois Central.

Guggenheim Expansion. "I am pleased to inform you," said the Chairman of England's Mining Trust, Ltd. last week, "that arrangements have been concluded under which American Smelting & Refining Co. ["Smelters"] has acquired a substantial interest in this company." Reasons for this pleasure were explained as: i) Smelters has provided capital for extensive development of Mt. Isa, tremendous Australian lead deposit discovered in 1923, owned by Mining Trust; 2) Smelters has also provided capital for Mining Trust's new silver-lead bullion refinery; 3) Smelters will place its technicians at Mining Trust's disposal.

In this move of Smelters is seen a continuation of the expansion which has brought the company mines in Peru, Mexico, Newfoundland. Mining Trust also has holdings in Rhodesian coppers, a field which Smelters has long tried to enter. To Mining Trust's board went none of Smelters' four Guggenheims but, instead, Engineer Preston Locke. Vice President Harry Adelbert Guess of Smelters assumed a similar position in Mining Trust.

General Motors. Balance sheet rather than income statement cheered General Motors stockholders last week. Earnings for the second quarter were $53,386,000; first half, $98,355,000--a poor showing against $89,949,000 and $151,860,000 last year. Quick assets, however, were up $48,342.000 to $175,693,000 since Dec. 31. Inventories at the end of 1929 were less than 50% of current assets. Inspired by these figures, an old stockmarket phrase was again current last week: "Important accumulation of General Motors by Wilmington and Detroit interests."

Paramount. Paramount Publix Corp.. until recently Paramount Famous Lasky Corp., reported $8,434,000 in the first half against $5,130,000--a gain of 65%.

Middle West Utilities. For the year ending June 30, Samuel Insull's potent Middle West Utilities Co. last week announced net earnings of $33,645,000, 39% better than the corresponding period of 1928-29.

Soap. This week J. P. Morgan & Co.'s option of 90,000 shares of Procter & Gamble Co. stock at 80 (market: 73^) expires. If exercised, some of the funds will probably be used to pay for the controlling interest in Thomas Hedley, Ltd. of New-castle-upon-Tyne, purchased last week by P. & G. Hedley is the largest soapmaker in Europe outside the Lever combine, and the deal is thought to precede further P. & G. expansion abroad.

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