Combustion: 103 to 4.

Best argument for a pool wishing to move a stock up is talk of "secret processes and patents." Last February the International Combustion Engineering Corp., world's leading manufacturer of boilers, automatic stokers, ash handlers and power plant devices, opened a new plant at New Brunswick, N. J. Function of this plant was to use a newly acquired foreign patent for the distillation of coal, rendering from the fuel valuable gas byproducts, light oil, and a powdered semi-coke for use in steam power plants.

In 1928 Combustion, through 37 subsidiary companies, had earned some $3,000,000. Tremendous were the earnings predicted from the new process. In April rights to $100 7% preferred stock were offered. At the time the common stock was selling at about 76, had been to 103, was touted to go to 500 under the management of a capable pool said to be directed by shrewd Speculator William Crapo Durant.

Last week the preferred stock, now dividendless, sold as low as 21 while the common, now Durantless, went to 4. Although both stocks had already suffered during the break, last week's decline had its own reason--"friendly" receivers were appointed as the result of a petition by Bethlehem Steel Corp., said to be a $400,000 creditor. In this receivership there was not evident the aftermath of the market's break, as had been true in the Fox trusteeship (TIME, Dec. 16), nor of poor trade conditions as in the American Piano receivership (see p. 30). There was little reason to believe that Combustion's total assets, which exceeded $60,000,000 at the end of 1928, have depreciated. Causes of the company's troubles are supposed to have arisen from heavy expenditures in distillation experiments and poor management. According to rumor several oil and utility companies, recognizing Combustion's strategic position, considered merging with it, then withdrew after viewing the involved finances and small amount of actually liquid assets. Significant to Wall Street was the fact that President George Edward Learnard, onetime Boston bookkeeper resigned Dec. 6, four days before the preferred dividend was passed.

This file is automatically generated by a robot program, so reader's discretion is required.