DRUGS: McKesson Leaves the Court

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That done, Trustee Wardall could finalize his reorganization plan. Against total osterized assets of $86,556,000 (1937), the new company's assets are valued at $76,900,000, most of the difference representing Coster's fictitious "crude drug" inventories. After subtracting $15,725,000 of debentures and some $17,400,000 in creditors' claims, preference and common stockholders are left with around $43,800,000 equity. Last year's indicated net profit was $4,396,000.

The new company will issue $11,800,000 in new debentures, 59,000 shares of 5½% preferred, and 1,685,901 shares of common. Allocation: —

> To creditors and debenture holders a package of cash (40%), new debentures (40%) and preferred stock (20%).

> To old preference stockholders, 2.3 shares of new common (worth about $26 a share) for each old share.

> To old common stockholders, ¼ share of new common for each old share.

The plan looked good enough to do Trustee Wardall out of his $25,000-a-year job. It provides for a maximum of 18 directors, names ten of them. Probable new president and boss of McKesson & Robbins: First Vice President William J.

Murray Jr., longtime head of South Carolina's Murray Drug Co., now part of McKesson.

Last fall Benton & Bowles advertising agency lost its share of the $6,000,000-a-year account of Colgate-Palmolive-Peet Lo. (No. 2 U. S. soapmaker), with it a large part of its billing (TIME, Oct. 28) This week B. & B. snapped back into soaps, got a contract to handle the $1,250,000-a-year Ivory Snow account for Procter & Gamble Co. (No. 1 U. S. soapmaker)