Mellon into First Boston

Two young giants in the investment banking business joined forces last week to form the country's largest investment banking house (capital: $25,000,000). The First Boston Corp., the most widely owned investment house in the business (8,000 stockholders) absorbed Mellon Securities Corp., the most closely held. Mellon Securities is wholly owned by Richard King Mellon, nephew of the late Andrew William Mellon, and his sister, Sarah Mellon Scaife.

The two companies will dovetail neatly. Mellon concentrates on industrial issues in the area around Pittsburgh. First Boston deals more with public utility and banking issues. By absorbing Mellon, the new First Boston Corp. will be well rounded.

The Mellon family will get some $9,000,000 in First Boston stock for their holdings in Mellon Securities. The present officers of First Boston, John R. Macomber (pronounced Mack-umber), board chairman, and Allan Melvill Pope, president, will run the new company. First Boston stockholders (who will vote on the merger July 29) need have no fear of losing control. Stock issued to the Mellons will have no voting privileges as long as the Mellons hold it.

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