Deals & Developments

No Pipe Lines. Insistent has been the plaint of the railroads that the oil companies should not control the transportation of oil through pipe lines. Last week three railroads--Texas & Pacific, St. Louis-Southwestern, International Great Northern (Missouri-Pacific controlled)--heard joyously that two big oil companies had dropped the idea of building pipe lines into the new eastern Texas oil field. Reason thought to be behind the decision was that Texas laws provide that the owner of a pipe line must buy all oil offered, whereas for shipment by rail a company needs buy only what it wishes. Perhaps an additional reason was the rumor that oil in this prodigious new field is coming in at increasingly high temperatures. To oilmen, that is a dire warning of water's approach, boom's end.

Postal's Year. Bad business, perhaps also much competition from long distance telephone service, has flattened the earnings of telegraph companies. Last week the directors of Postal Telegraph & Cable (common stock 100%-owned by International Telephone & Telegraph) met, looked at the 1930 report, promptly passed the 7% preferred dividend. Postal's gross last year slipped from $40,258,000 in 1929 to $37,923,000. After expenses and bond interest, it earned a paltry $96,000 against $2,972,000 in 1929. Not so drastic was Western Union's decline which brought 1930 earnings to $9,248,000 against $15,577,000 in 1929.

Treatment for Burns. Under big, tousle-headed Sanders A. Wertheim, Burns Bros, proudly proclaimed Burns Coal Burns, and Burns Bros, grew fast. Last month much smoke over Burns Bros, indicated trouble in the boiler-room of management from which should come the steam that makes for profits. One cloud of smoke was the resignation of President Wertheim, the election of Noah H. Swayne as his successor. Another cloud was a sudden, alarming drop of all Burns securities. Another was the election of several Lehigh Valley Coal Corp. men to the Burns board.

Last week President Swayne attempted to set things right in the boiler-room. Stockholders will be asked to approve a $9,000,000 note issue. They will also be asked to approve of a voting trust. While the trustees have not been named, they will probably include representatives of Lehigh Valley Coal Corp. and Delaware, Lackawanna & Western Coal Co., two big Burns creditors who desire to see Burns have good management at least until its bills are paid.

Tariff-born Deal. From the Ohio mills of Republic Steel Corp. much unfinished steel used to go to its subsidiary Canadian Metal Products Co. Ltd. at Guelph, Ont. (where was born Arthur W. Cutten, famed Chicago bull). Last week Canadian Metal Products was sold to Burlington Steel Co. Ltd. of Hamilton, Ont. The new Canadian tariff on steel was responsible for the deal.

Barco Land. In 1905 the Republic of Colombia (the one just below Panama, on South America's neck) gave to able General Virgilio Barco the concession to 11,500,000 acres of what was thought to be rich oil land. In 1918 General Barco sold the rights to 1,300,000 choice acres to Colombian Petroleum Co. of the U. S. In 1926, again in 1928, Colombia declared the Barco Concession cancelled, caused many a memorandum to pass between Washington and Bogota. Last week, however, a contract was signed by Colombia giving Colombian Petroleum right to work the land for 50 years. Plans for a $25,000,000 pipeline, prospects of employment for thousands, hopes of a big oil future, excited all Colombians when they heard the news.

Colombian Petroleum is controlled by Gulf Oil Corp. of Pennsylvania (Mellon-controlled), buyer of a 75% interest for $2,500,000 in 1926. The remaining 25% is held by Carib Syndicate, Ltd., among whose directors are Charles Hayden of Hayden. Stone & Co., Ernest Stauffen Jr. of Marine Midland Corp. The Barco Concession is in the Department of North Santander, 200 miles from the Caribbean Sea.

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