Deals & Developments

Copper Cut. Sales of copper during July were larger than June because of its cut to 11-c- per Ib. But the end of the month found stocks of all copper on hand had decreased only 6,346 tons from June's figure of 570,596 tons.* The situation obviously was still unadjusted. Last week readjustment came with a slash that brought copper to 10 3/4-c- per Ib., the lowest since 1902. Few companies can make money with copper at this level; hence production is likely to dwindle down to demand. Even low-cost producers will not find 10 3/4-c- a pleasant level. Nevada Consolidated Copper Co., one of the highest-cost producers, revealed that during the second quarter its copper cost 10.28-c-, leaving a margin of profit which tends to be academic.

Tel & Tel Expansion. Large among independent telephone companies is Tri-State Telephone & Telegraph Co., operating without competition in St. Paul and 140 other communities in Minnesota and the Dakotas. Yet last week Tri-State went the way of most independent telephone companies, completed a deal whereby it will be acquired by A. T. & T. through Northwestern Bell Telephone Co. Tri-State has $28,151,000 assets, last year earned $1,389,000. It is closely held, control reputedly resting with Theodore Gary & Co. of Kansas City. After this deal (largest in recent years), A. T. & T. will have 78% of U. S. telephones, 92% of wire mileage.

Niagara Share. In 1919 Shoellkopf, Hutton & Pomeroy, Inc. was formed for underwriting and dealing in securities. A few years later it sponsored Niagara Share Corp. of Maryland, an investment trust specializing in utilities, especially utilities in which Shoellkopf, Hutton & Pomeroy are interested, including Niagara Hudson Power Corp. Last week it was announced that Niagara Share will acquire Shoell-kopf, Hutton & Pomeroy. A case of child swallowing parent who wanted to be swallowed, the deal rounds out Niagara Share's departments, will bring more business to the investment firm whose management and name will remain unchanged.

Stronger Sinclair. Apparently planning tremendous expansion, Sinclair Consolidated Oil Corp. last week girded itself for corporate frays. First of the preparatory steps was announcement that stock-holders of Sinclair, joint owner with Standard Oil Co. of Indiana of Sinclair Pipe Line Co. and Sinclair Crude Oil Purchasing Co., will vote on proposed sale to Standard of its interest in these two companies for $72,500,000 cash. Significant was the comment of Chairman Harry Ford Sinclair regarding this deal: "Conditions with respect to the position of your company have radically changed since the partnership with the Standard Oil Company of Indiana was established. We have plans which cannot be carried out as long as this partnership exists."

Thus shorn of old alliances, Sinclair may crusade as it will. For future offensives, stockholders will soon be asked to approve a remarkable weapon--5,000,000 shares of preferred stock. The unusual feature of this issue (second largest in U. S. corporate history) is that it has no par, may be issued from time to time with any rates, voting power, convertibility, or other provisions decided by the Board.

Although reports that Sinclair Oil will soon be a world-wide organization, tilting full force with the Standard group and Shell, are probably exaggerated, it is known that Prairie Oil & Gas Co., Prairie Pipe Line Co. and Tide Water Associated Oil Co. have been approached by Sinclair, may be acquired.

Trans-Ohio. A small unit in a field where big units prosper most, Transcontinental Oil Co. has had a varied career. Less familiar is it to stock-traders for its record of deficits in five of the last ten years than for its stock's puzzling ups & downs. Many a broker has warned: "The way of the Trans-guesser is hard." But lately Transcontinental had done better, its first-quarter earnings showing a 100% gain over last year's. Credit for this is due to Amos L. Beaty who resigned as chairman of Texas Corp. last year to take the same position with Transcontinental.

Last week 70% of Transcontinental's stockholders voted that the company be sold to Ohio Oil Co., dissolved. Ohio Oil is one of the large producers, turning out 18,096,000 bbl. last year. It shares the rich Yates Pool with Transcontinental, and the two companies are associated with Prairie Oil & Gas in large natural gas developments. President and general manager of Ohio Oil since 1927 is Otto Dewey Donnell, oldtime oilman. He joined the company 35 years ago, became a director in 1911 when it was severed from old Standard Oil Co. of New Jersey, was made a second vice president and assistant general manager two years later, first vice president and treasurer in 1922.

*This includes stocks of blister copper, refined copper and copper in transit.

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