More Mergers

The week brought news of an unusual number of important mergers and absorptions, and denials of mergers and absorptions. Denials often protect plans still forming. At least they indicate a trend in a particular phase of business.

Banks. Stockholders of the Chase National Bank voted to absorb the Mutual Bank in Manhattan. Mutual stockholders had already agreed. The transaction gives Chase National and its affiliated Chase Securities Corp. capital, surplus & undivided profits of more than $134,000,000. The Mutual bank office becomes Chase's 21st branch in New York City. (Chase also has three foreign branches.)

Less momentous were last week's negotiations for the Seaboard National Bank to absorb the New Netherlands Bank in Manhattan. Seaboard, which does a large domestic and foreign business, has been rapidly expanding. Recently it raised its capital from $6,000,000 to $8,000,000. Its surplus and undivided profits are $12,000,000. New Netherlands will bring $600,000 additional to its capital.

Motor Cars. Robert M. Calfee of Cleveland, attorney for the Peerless Motor Car Corp. said: "The Peerless Company under the present proposal does not contemplate the merger of the three companies [Peerless Motor Car Corp., Jordan Motor Car Co. and Continental Motors Corp.], but plans for mutual benefits which would strengthen each in the automobile industry. We have tried to work out a plan which would be beneficial to all three companies." That indicated a grouping of interests. However President R. W. Judson of Continental Motors at once said: "We expect to maintain our position indefinitely as an independent manufacturer." And President Edward Stanlaw Jordan of Jordan Motors said: "I don't care to say anything about the situation at this time. I can assure you that nothing will happen in the next few days." At once reports associated Moon Motor Car Co. and Cleveland-Chandler Motors Corp. with the group.

Two years ago Continental Motors bought the U. S. rights to the Argyll (English) motor. Jordan and Moon are reported to own stock in Continental Motors. That is the basis for their presumed interest in such a merger or loose combination. Continental Motors also makes motors for William Crapo Durant's Star car. It may be that his long hand is craftily guiding these companies together. Last year he advertised that he would "make every other interest of his secondary to his interest in the motor industry." That obviously meant that he planned to create a motor group similar to General Motors which he formed in 1908. But nothing overt has come of his declaration.

Cotton Mills. Charles Ranlett Flint, widely known as the "father of trusts," who organized the United States Rubber Co., the American Woolen Co., the International Business Machines Corp. and many another "trust," has been obtaining 90-day options on cotton yarn mills in North and South Carolina. His project is to group 75 to 100 mills into a corporation capitalized for $50,000,000 to $75,000,000.

Coal. In the office of Samuel Alfred Taylor, mining engineer, at Pittsburgh, men who represent 150 operating coal mines in northern West Virginia, western Pennsylvania and eastern Ohio, met to discuss consolidation. Ernest C. Mobley of the Valley Camp Co. said later: "It is a case of a survival of the fittest and coal companies must combine the same as railroads and other large corporations." Nothing tangible came of the meeting. Said Mr. Taylor: "I don't know what will come of it." However, the conferees will draft a scale of values to submit "to a later meeting. Neither the Pittsburgh Coal Co., the "bituminous trust," nor the Pittsburgh Terminal Coal Co., are concerned with the negotiations.

5 & 10. Years ago Sebastian S. Kresge and Samuel Henry Kress as partners opened a 5 & 10 cent store in Memphis. They made money and opened a branch in Detroit. That made money. Then the partners separated. Mr. Kresge took the Detroit store from which his business has radiated until he now has the second largest chain of 5 & 10 cent stores in the U. S.--400 of them covering generally the east and central west, north of Richmond, Va. and west to Lincoln, Neb. His net profits last year were $12,504,442. Mr. Kress spread his stores from Memphis through the south and southwest. His 185 stores form the third largest chain in the U. S., with net profits last year $4,672,952.

Last week the onetime partners were reported planning to combine their vast chains. Although their bankers said that they "knew nothing of it," representatives of both corporations were to confer this week.

If they join, they will not be the "largest 5 & 10 cent chain." F. W. Woolworth is that. Woolworth is an international company. It has stores in Canada, England and Germany, as well as in the U. S.