Deals & Developments

Match Re-lighted. After six months of investigation and negotiation Swedish Match Co., springboard from which the late Ivar Kreuger leaped to fantastic heights of finance, was reorganized last week, first of the Kreugered interests to burn bright again. Granted a moratorium last May, the company has been run by three administrators (similar to U S receivers) appointed by the Swedish Government. Cooperating with creditors and representatives of affiliated Kreusrer & Toll (the investment company) and International Match Corp., they evolved a workable scheme and the moratorium was lifted. Creditors were not asked to scale down their claims; they will receive 6% interest, the principal will be paid off gradually out of earnings. Capital was reduced 75% to 90,000,000 kronor (about $15,500,000) by exchanging one share of new common stock for four shares of old. No dividends maybe paid until after creditors' claims have been pared 30%. The new board will include two British directors, U. S. interests will be represented by Swedish members. Many involved claims of Kreuger & Toll and International Match were left open, but a modus vivendi with Swedish Match was established for carrying on the match business itself. Home of Swedish Match was moved from Stockholm to Jonkoping, home of Swedish matches.

Turning Fox. Ousted from his film company, hounded by lawsuits, pop-eyed William Fox has lain low on his Long Island estate ever since the Senate Banking & Currency Committee tried unsuccessfully to put him on the witness stand to unsnarl his jumbled stock dealings (TIME, June 27, et seq) Not in his recent role of sued but as suer Mr. Fox made news last week when the first of his major suits against the makers and users of sound film reproduction equipment for alleged infringement of patents (U. S. rights to which Mr. Fox personally acquired from a German concern in 1928) was brought to trial in Brooklyn. Under the name American Tri-Ergon Corp. (90% owned by Mr. Fox) he is seeking a permanent injunction against Paramount Publix Corp., together with an accounting of the profits Paramount has earned. Other suits are pending against RKO Radio Pictures R. C. A. Photophone, a subsidiary of American Telephone & Telegraph's Western Electric. Both Wall Street and Hollywood regard the suits as Mr. Fox's bid for a comeback in the film field. From the $100,000,000 or more that the industry has taken out of sound films, Mr. Fox expects to recover for himself a fat sum.*

Gateway. A receiver was appointed last week for the 1,030-mi. Wisconsin Central Railway. The line is controlled and leased by the Soo System (Minneapolis St. Paul & Sault Ste. Marie) which in turn is controlled by Canadian Pacific Railway Co. Its tracks run from Chicago to Minneapolis, Duluth, Oshkosh, Milwaukee, Grand Rapids, forming an important U. S. gateway for the C. P. R. The Wisconsin Central has $44,000,000 worth of bonds outstanding, has earned interest on them but twice in the past decade.

* Reflecting the low estate of the film business, Fox Film stock was selling last week at $1.88 per share, Paramount Publix at $1.75, Radio-Keith-Orpheum at $3.

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