Deals & Developments
Soup Suits. Last week one A. Ransaville Frome, longtime employe of Campbell Soup Co., filed the following suits:
Against Campbell Chairman Dr. George
Morris Dorrance:
Alienation of Affections $1,000,000
False Imprisonment 1,000,000
Slander 1,000,000
Libel 1,000,000
Against Campbell President Arthur Calbraith Dorrance:
False Imprisonment $1,000,000
Against Campbell Soup Co.:
Slander & Libel $2,000,000
False Imprisonment 1,000,000
$8,000,000
Plaintiff Frome, 54, worked for the soup company from 1898 until 1928 when, according to his story, the defendants forced him out of his $40,000-a-year position as superintendent, told his wife he was mentally unsound as the result of drinking, had him detained for observation. A year ago he was released from Pennsylvania Hospital for the Insane as normal.
Intimate Merger. A year ago the president of Associated Apparel Industries, Inc. ("the Bust Trust") was elated at the change in fashion which demanded that women wear "foundation garments" of which his firm is one of the biggest makers. His enthusiasm was justified, for Associated sales during the year ended Nov. 30, 1930 exceeded $15,000,000, making a new record for the company. Subsidiaries contributing to this performance included: Nature's Rival Co., Venus Brassiere Co., Parisform Brassiere Co. Some of Associated's better-known trade-names are College Girl, Modart, Venus, Solitaire, Last week it was reported that Associated will expand still further in the intimate industry of personal garments. Final details were said to be near conclusion for a merger between Associated and Munsingwear, Inc., big maker of underwear and stockings for men, women, children. In Minneapolis is the main Munsingwear plant, where some 3,000 workers are kept busy by 1,546 sewing machines, 650 needle-knitting machines. Also in Minneapolis is the main Munsingwear office, where a potent board of warmly clothed directors including Flourman Charles Stinson Pillsbury watches the company's affairs. Munsingwear's record sales year was 1926 when a $17,962,000 business was done. Recently its sales have been about even with Associated's $15,000,000. To knitted goods it has shrewdly added rayon products as an earnings-stabilizer.
Shadow Over Bethlehem. In Bethlehem, Pa. last week all the plant managers and sales managers of Bethlehem Steel Corp. gathered for their annual conference. At the big dinner Chairman Charles Michael Schwab and President Eugene Gifford Grace spoke. Not discussed officially, but the subject of many a private argument, was a $36,000,000 suit the shadow of which lay athwart the Messrs. Schwab & Grace.
Searching last summer for reasons why Youngstown Sheet & Tube Co. should not merge with Bethlehem Steel Corp., Cyrus Stephen Eaton's legal minions dragged Bethlehem's bonus system into public view. Reluctantly Mr. Grace testified that while his salary was a mere $12,000 a year, his 1929 bonus was more than $1,600,000 (TIME, Aug. 11). Last week he regretted more than ever that he had been forced to reveal this, for a group of stock-holders sued to have all bonuses paid since 1911 returned to the company by the eleven executives who received them. Since 1925 Mr. Grace's bonuses have come to more than $5,000,000.
No bonus-receiver was Chairman Schwab, but he too was involved in the suit. The plaintiffs alleged that he had used secrecy and prejudice in awarding bonuses. Last week he defended himself verbosely. He pointed out that he had received the bonus idea from that shrewd steelmaster, Andrew Carnegie. "I have exercised my best judgment and shall continue to do so." said dramatic Mr. Schwab, "so long as our stockholders shall continue the power in me."
Copra & Profits. Into New Orleans come many ships with cargoes of copra (dried coconut meat). Much of it is shipped to the Cincinnati plant of Procter & Gamble, leading U. S. soap maker. Copra is also imported to Baltimore. Last week Procter & Gamble bough; the Baltimore copra-crushing plant of Oil Seeds Crushing Co. in order to insure its eastern plants of a steady flow of raw material. Also last week Procter & Gamble was pleased to reveal that in the six months ending Dec. 31 its net income was $12,194,000, almost 5% greater than in the like 1929 period.
Schulte Trouble. Into receivership last week went Schulte-United, Inc., 100% owned by Schulte-United 5-c- to $1 Stores. Chief difficulties of Schulte-United, Inc. were stated to be leases made at boom prices, lack of credit rating. David Albert Schulte, onetime cigar-stand man, formed the 5-c- to $1 Stores in collaboration with the Whelan-United Cigar Stores group, later bought their interest. He & associates now own 90% of the 5-c- to $1 Stores bonds, 40% of the preferred and common stocks. To its parent, Schulte-United owes $15,000,000.
Chrysler v. Graham-Paige. Against Graham-Paige Motors Corp. and its three Brothers Graham (Joseph Bolden, manufacturing; Robert Cabel, sales; Ray Austin, finance) last week Chrysler Corp. brought suit, charging that the manufacture of trucks and busses by Graham-Paige violates an agreement made by the Graham Bros, when they sold their motor company to Dodge Bros. Inc. (now Chrysler-owned) in 1926.
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