Business: Deals & Developments: Aug. 25, 1930

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Copper Cut. Sales of copper during July were larger than June because of its cut to 11¢ per Ib. But the end of the month found stocks of all copper on hand had decreased only 6,346 tons from June's figure of 570,596 tons.* The situation obviously was still unadjusted. Last week readjustment came with a slash that brought copper to 10¾¢ per Ib., the lowest since 1902. Few companies can make money with copper at this level; hence production is likely to dwindle down to demand. Even low-cost producers will not find 10¾¢ a pleasant level. Nevada Consolidated Copper Co., one of the highest-cost producers, revealed that during the second quarter its copper cost 10.28¢, leaving a margin of profit which tends to be academic.

Tel & Tel Expansion. Large among independent telephone companies is Tri-State Telephone & Telegraph Co., operating without competition in St. Paul and 140 other communities in Minnesota and the Dakotas. Yet last week Tri-State went the way of most independent telephone companies, completed a deal whereby it will be acquired by A. T. & T. through Northwestern Bell Telephone Co. Tri-State has $28,151,000 assets, last year earned $1,389,000. It is closely held, control reputedly resting with Theodore Gary & Co. of Kansas City. After this deal (largest in recent years), A. T. & T. will have 78% of U. S. telephones, 92% of wire mileage.

Niagara Share. In 1919 Shoellkopf, Hutton & Pomeroy, Inc. was formed for underwriting and dealing in securities. A few years later it sponsored Niagara Share Corp. of Maryland, an investment trust specializing in utilities, especially utilities in which Shoellkopf, Hutton & Pomeroy are interested, including Niagara Hudson Power Corp. Last week it was announced that Niagara Share will acquire Shoell-kopf, Hutton & Pomeroy. A case of child swallowing parent who wanted to be swallowed, the deal rounds out Niagara Share's departments, will bring more business to the investment firm whose management and name will remain unchanged.

Stronger Sinclair. Apparently planning tremendous expansion, Sinclair Consolidated Oil Corp. last week girded itself for corporate frays. First of the preparatory steps was announcement that stock-holders of Sinclair, joint owner with Standard Oil Co. of Indiana of Sinclair Pipe Line Co. and Sinclair Crude Oil Purchasing Co., will vote on proposed sale to Standard of its interest in these two companies for $72,500,000 cash. Significant was the comment of Chairman Harry Ford Sinclair regarding this deal: "Conditions with respect to the position of your company have radically changed since the partnership with the Standard Oil Company of Indiana was established. We have plans which cannot be carried out as long as this partnership exists."

Thus shorn of old alliances, Sinclair may crusade as it will. For future offensives, stockholders will soon be asked to approve a remarkable weapon—5,000,000 shares of preferred stock. The unusual feature of this issue (second largest in U. S. corporate history) is that it has no par, may be issued from time to time with any rates, voting power, convertibility, or other provisions decided by the Board.