Deals & Developments

Chicago Merger. In February 1929, Chicago Corp. was formed to operate as a general management type investment trust. In September 1929, Continental Chicago Corp. was formed for the same purpose. The companies have many things in common, including practically an identical capitalization, interlocking directors. But Chicago Corp. has one thing its twin lacks, and that is an investment in 250,000 shares of Willys-Overland Co. common stock. Because of that stock it is the weaker company, and under terms of a merger announced last week its shareholders will receive only 65/100ths of a share of Continental Chicago for every share of Chicago Corp. No surprise at all was this merger of two companies with such a community of interest, and no surprise was the announcement that Charles Foster Glore, president of Field, Glore & Co., director of Continental Illinois Bank & Trust Co., director of Continental Chicago Corp. and president of Chicago Corp. will be president of the combined companies.

Diamond Match. Last week Diamond Match Co. new stock sold around $18 a share, but the company's bankers announced that, as planned at the time of recapitalization (TIME, Sept. 22), 350,000 shares had been privately placed at $37. Persistent was the story that Ivar Kreuger's Swedish Match group had acquired this block which carries 33 1/3% of voting control. Obviously only a group which wanted a big interest in Diamond Match very badly would pay so much above market. Bankers for the company announced that "no change in management is contemplated," but of course the same management could be retained under different control.

No Sinclair-Prairie. Sinclair Consolidated Oil Corp. lately sold its half interest in Sinclair Oil Purchasing Co. and Sinclair Pipe Line Co. to Standard Oil Co. of Indiana, the other half-owner (TIME, July 28). At the time it was expected that Sinclair would replace these facilities through consummation of the long-heralded merger with Prairie Oil & Gas Co. and Prairie Pipe Line Co. Last week the prospects of this merger collapsed; both parties announced they found it impossible to reach satisfactory terms. To Sinclair's vigorous expansion plans, this failure presents a large snag. But last week Daniel Thompson Pierce, assistant to Mr. Sinclair, announced that negotiations by which Sinclair Oil may acquire Tidewater Associated Oil Co. are still in the hands of lawyers, accountants.

Page & Shaw. Flayed months ago by the Better Business Bureau of Boston was the scheme by which Page & Shaw, Inc., venerable candymaker, gave stock away to candy-buyers, then sent salesmen to sell them more stock. Eighteen men were arrested, including Otis Emerson Dunham, president of the company, and Vice President Raymond Holland. Last week President Dunham and two brokers were found guilty of conspiracy, but not of accessory to larceny. Eight defendants, including former Vice President Holland were found not guilty. Of other defendants, one case had been dismissed, six had pleaded guilty.

Guilty Bankers. In Montgomery, Ala. last week Emmett A. Cox and Charles F. Fincher, president and cashier of First National Bank of Tallahassee, closed last February, were sentenced to four years imprisonment. Their crime: embezzling $250,000.

This file is automatically generated by a robot program, so reader's discretion is required.