Deals & Developments

Detroit Bridge Default. Little more than a year old, valued at $13,892,000 is the Detroit International Bridge between Detroit and Sandwich, Ont. Last week not the bridge but the company of the same name which owns it began to sway dangerously. Business depression has caused traffic to fall off. Competing ferries have cut their rates viciously rather than go out of business. Traffic has been diverted into the new Detroit-Canada Tunnel. During 1930 toll revenue was $892,000, operating expenses--$328,000. But by the time all charges were computed the bridge company had a $1,367,000 loss. Last week common and preferred stockholders realized they had no equity behind their securities, holders of the $8,000,000 7% debentures did not receive interest due, owners of the $12,000,000 issue of 64% first mortgage bonds formed a protective committee. The company's funded debt was sold by a syndicate headed by Hemphill, Noyes & Co. Prospectuses estimated for the first year tolls would come to $2,012,833.

Royal Mail Submerged. Stormy seas of financial difficulties have long been swamping the once proud & mighty Royal Mail Steam Packet Co. (TIME, Dec. 8). Lord Kylsant is being replaced on the bridge by Walter Runciman; a reorganization is planned. Yet to Royal Mail stock-holders last week brought the stormiest day of all.

Selling waves already had brought Royal Mail securities down to almost nominal values when last week in London the company's counsel gave an alarming opinion-- that the company is not limited, that shareholders are liable for Royal Mail debts. Frightened investors began selling the common, which had climbed above -L-7 last year for ten shillings a share. Down went the price to one shilling. Then an unprecedented thing for so great a company occurred: a large block changed hands at zero. The owner paid the transfer tax, making the sale actually below zero. By the close of the day the common was back at five shillings. But the once gilt-edge 6 1/2% preferred which had been at 60 shillings in the morning did not rally, closed the day at the ignoble price of 0.

Cabled a London correspondent: ". . . The affair has had a depressing effect on financial sentiment."

Telephone Deal. Marion, Ohio; Newton, N. J.; Coldwater and Three Rivers, Mich.; Goose Creek, Tex., are some of the 322 communities served by United Telephone Co. which operates in eleven states, had gross earnings of $1,772,000 last year. Last week control of United was acquired by Associated Telephone Utilities Co., which will now serve 500,000 telephones in 1,950 communities. Not to be confused with A. T. U. is Associated Telephone & Telegraph Co. which makes telephone equipment in the U. S., has telephone properties in other countries.

Baldwin's Plot When Baldwin Locomotive Works one year ago moved to Eddystone, Pa., a valuable plot of land was left behind in Philadelphia. About 19 acres, this land is near the heart of Philadelphia, is valued at around $10,000,000, has been for sale but has not been sold. Last week the Baltimore & Ohio R. R. considered the plot as a terminal.

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