Mergers, Acquisitions

By purchase, consolidation and merger, last week, units of many a U. S. industry were juggled into new and piquant positions. Of these deals, the most significant follow:

Power. For years engineers have prophesied a day when utility companies would be so integrated that the richest sources of power (like Niagara, the St. Lawrence, the Susquehanna) will be connected in one great, centrally-controlled system. Only by such unification can electric energy become generally abundant and cheap. Last week their super-power era seemed perceptibly nearer.

J. P. Morgan & Co., Drexel & Co., Bonbright & Co. announced the formation of United Corp.. with assets of $150,000,000, to acquire minority interests in United Gas Improvement Co., Public Service Corp. of New Jersey, and Mohawk Hudson Power Corp.. now held by the organizers of United Corp. and the American Superpower Corp. No merger, this deal was planned to bring the three utility companies into closer relationship, to acquire stock in other power companies operating in the same territory, not to operate, manage or construct power plants.

In view of Bonbright's interest in the great Electric Bond & Share Co. and in Commonwealth Power, Morgan affiliations with the Mellon-Koppers group, it was permissible to predict a thorough integration of the East's power.

Oil. Since 1911. Standard Oil of New Jersey has observed the agreement imposed by the terms of dissolution of the "oil trust" which gave the New England distribution field to Standard of New York. Socony signs predominate on New England gasoline stations. Socony institutional advertisements appear on New England billboards. By the acquisition, last week, of Beacon Oil Co. (Everett, Mass.) Standard of New Jersey entered the forbidden territory, broke a long-standing agreement.

Highly competitive will be the New England territory. Last month Shell Union Oil (U. S. subsidiary of the great Royal Dutch Shell Oil Co.) was permitted by court to buy assets of the bankrupt New England Oil Refining Co. (65 filling stations). To Standard of New Jersey Beacon brings 300 filling stations, an annual distribution of 120,000,000 gallons, a refinery (at Everett) with a daily capacity of 16,000 barrels.

Cosmetics. What is only the first step in the formation of a vast international cosmetics consolidation was effected last week by the merging of two 50-year-old perfumeries. Woodworth Inc. of Manhattan makes powders, perfumes, lipsticks labeled "Fiancee," "Karess," "Viegay." It is publicly financed. Bourjois Inc. of Paris has been privately owned by Pierre Wertheimer, famed owner of Epinard, racetrack phenomenon of 1923-24.

It was Pierre Wertheimer who laid the foundations of Bourjois popularity in the U. S. Seventeen years before he brought Epinard to New York to race Belmont horses, his father sent him, with trunks of samples, to tour the U. S. He drummed

PIERRE WERTHEIMER Rabbits, horses, perfumes. from Manhattan to San Francisco, from. Toronto to Mexico. He returned to France the following year, became a member of the firm. A distributing company was formed, in Manhattan. Bourjois grew to be the third largest manufacturer of perfumes in the world. Pierre Wertheimer, within the last few years, has given more and more interest to breeding race horses at his 14th century barony in the Gironde district, to hunting at his lodge 100 miles from Paris. Cinema. With $1,600 saved from the cloak & suit business William Fox bought his first theatre in 1904. Last week he called himself the world's largest operator of cinema houses. He cited figures. He had just added a new group of 40 independent theatres in and near Manhattan, with annual profits of $5,000,000, seating capacity of 280,000. Acquisition of this new group, called Fox Metropolitan Playhouses Inc.. may bring Fox gross business in 1929 to a total of $135,000,000, Fox sealing capacity to 700,000. To fortify further his position as "biggest" William Fox gave out figures for 1930. By then, 1,000,000 persons will be ushered to seats nightly in Fox theatres. By then, 20 new theatres, for which land has been already chosen, will be erected. Whiskey. The Fisher brothers of Detroit are everywhere at once. Last week rumor put their money in Canadian whiskey, in a merger which will form the world's largest distilling company. U. S. capital, perhaps Fisher, is heavily invested in Hiram Walker-Gooderham & Worts Ltd., which controls more than half of Canada's whiskey. Last week dickerings went on between Walker and two other large Canadian whiskey producers. Consolidated Distilleries Ltd., Brewers & Distillers Ltd. Sir Edward Mackay Edgar, British banker, recent guest in Canada and the U. S., was believed to have been the intermediary.