Whiskey Money

Many a U. S. corporation would like to sell additional securities for this reason or that, but all bankers know that about the only industry in dire need of fresh capital is the liquor business. Last week National Distillers Products, biggest U. S. whiskey company, filed in Washington a registration statement for an additional issue of 674,000 shares of common stock.

One-half of this issue will be offered to stockholders, probably at a price of between $20 and $25 per share (at least $7,000,000). Each stockholder will receive the right to buy one new share for every six he now owns.

Though President Porter was under no illusion that his shareholders would buy stock from him at $20 or $25 per share when they could get it in the open market for $18 (last week's price, against a 1934 high of $31). he had another money-raising scheme up his well-tailored sleeve. He arranged to sell the other half of his new issue, 337,000 shares, to Distillers Co. Ltd., Britain's fabulous whiskey trust. The rich & noble lords of Scotch whiskeydom have a soft spot in their hearts for Mr. Porter as well as a shrewd eye for profits. Far from being a bitter competitor. National Distillers sells hundreds of cases of DCL's Scotch, helped DCL to restore its 20% dividend (TIME, Aug. 6).

Furthermore, DCL was forming a U. S. gin subsidiary in which it wanted Mr. Porter to have a two-fifth interest. Upshot is that DCL will let Mr. Porter have 1) the two-fifth interest, 2) the money to buy it with and 3) a lot more money besides. In return the DCL directors were pleased to get for some $7,000,000 a 12% interest in the No. 1 U. S. whiskey company.

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