Deals & Developments

Gillette. After two days of heavy selling pressure had knocked Gillette Safety Razor Co. stock down $15 a share last week, bankers for the company announced that merger negotiations are still being carried on with Auto Strop Safety Razor Co., and if concluded will be presented to the Federal Trade Commission. Although a Gillette-Auto Strop merger would settle the suit in which Auto Strop charges that Gillette's new blade is an infringement of Auto Strop's patented Probak blade, it would not end Gillette's troubles. Last week Segal Lock & Hardware Co., potent gadgetmaker, was well along with an advertising campaign for Segal Razor Blade, patents pending. While this new blade is being introduced only in New York at present, Segal plans a national campaign in the near future, may harass both Gillette and Auto Strop.

Glue Retrenchment. Better to concentrate on the glue business, American Glue Co. last week announced plans to sell its gelatin plants and business to a subsidiary of Eastman Kodak Co. for $2,300,000. Previously, Eastman was one of American Glue's biggest gelatin customers. This follows closely on American Glue's sale of its abrasive business to Minneapolis Mining & Manufacturing Co. and Carborundum Co.

More Power to Insull. Samuel In-sull's Middle West Utilities Co. controls National Electric Power Co. National controls New England Public Service Co., which, in turn, controls Cumberland County Power & Light Co. Last week, through a deal in which Cumberland figured, Utilities Insull became more potent in New England.

Like many another New England mill, Pepperell Manufacturing Co. has power plants, water power rights. Last week it was announced that Cumberland plans to buy $2,400,000 worth of these non-milling assets from Pepperell. Millside power properties have played a large part in Mr. Insull's conquest of New England territory. In some cases he has bought the mill as well, running it through depression to boost power earnings. But last week he did not have to go further into the textile business. Pepperell, with such specialties as Lady Pepperell Sheets, makes money, last year made $1,114,280, can stay on its own feet.

Warner, Fox. Weird among U. S. industries is the cinema business. Last week Warner Bros., until recently considered healthy and prosperous, suffered a new ailment and Fox Films, recently almost fatally ill, was shown to be practically cured.

The new Warner ailment was a suit for receivership, brought by a 300-share Boston stockholder who alleged mismanagement and excessive prices paid for real estate and theatres. President Harry M. Warner immediately declared that the suit was solely for the purpose of driving the stock even lower than it has been.

Fox's remarkable convalescence under President Harley L. Clarke was shown by its earning $7,125,000 in the first six months, a 40% gain. Saying that earnings for the current half year will be even greater, President Clarke assured stock-holders that the $4 dividend is safe.

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