Downtown

P:On June 29 the R. F. C. lent $950,000 to Denver & Rio Grande Western R. R. Last week the R. F. C. released the finance docket on the loan. In it was found a one-sentence letter:

Reconstruction Finance Corp., Washington, D. C. Dear Sirs:

In consideration of your making a loan of $950,000 to the Denver & Rio Grande Western Railroad Co., this letter will evidence the agreement of the undersigned with your corporation that the management of said railroad company will undertake immediate negotiations looking toward merger, consolidation or unification. . . .

T. M. Schumacher

Chairman of the Board

L. W. Baldwin

Chairman of the Executive Committee

Since Mr. Schumacher is also an officer of Western Pacific, and Mr. Baldwin of Missouri Pacific, three avenues of conjecture lay open.

P:John D. Rockfeller Jr.'s son-in-law, David Meriwether Milton, made news periodically all last spring by picking up investment trusts, adding them to his growing Equity Corp. Last week he stepped into another field. Missouri State Life Insurance Co. with $1,000,000,000 of insurance in force was taken over by Missouri's Insurance Commissioner O'Malley who charged that its $155,000,000 assets needed to be written down, perhaps as much as $27,000,000. On hand was Equity Corp. with a prompt offer: It formed a new firm, General American Life Insurance Co., with paid-in capital of $2,000,000, offered to take over Missouri State Life's business. P:Studebaker Corp. owned all the Class B shares, 152,000 Class A shares and 23,500 preferred shares of Fierce-Arrow Motor Car Co. Six months ago, when Studebaker Corp. passed into receivership (TIME, March 27), Fierce-Arrow went quietly on its normal way. Officers of Fierce-Arrow were chagrined, however, to have their pseudo-parent in receivership. Last week President Arthur J. Chanter of Fierce-Arrow announced that with the backing of George Franklin Rand, head of the Marine Midland group of banks, Jacob Frederick Schoellkopf, Seymour H. Knox and Roland Lord O'Brian, Studebaker's Fierce-Arrow holdings had been bought cut. Fierce-Arrow had a net profit of $4,770 for the second quarter of 1933 compared to a loss of $878,800 for the same period a year ago. Price paid was $1,000,000 cash; other considerations, if any, were not published. P:In Spring Valley, N. Y. Charles Williamson resigned as a director of Ramapo Trust Co., became the bank's janitor-guard.

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