The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-12-03
HUGE PROJECTS
CAUSE ANXIETY
IN STOCK MART
Rubber Combine and An
other Issue for so Mil
lion Announced.
BY L. Walter MOckler


NEW YORK, Dec. 3.-Most of the
really important news in Thursdays
market happened outside Of the mar
ket.
Details of a huge rubber combine
leaked out into the street and started
what is likely to be quite a furore
before it is finished. According to
such details as are now available,
a group of rubber companies, includ.
ing Fisk, Firestone, Goodyear, United
States Rubeber, Goodrich, Kelly
Springfield and many others are
linked up with a powerful group Of
automobile interests, including Cen
eral Motors, Studebaker, Packard,
Dodge, Willys-Overland and many
others in a huge combination which
has as its basis a plan for the pur-
chase of a substantial amount of
crude rubber which could be used
to forestall any effort on the part
of those in control of the market
to advance the price artificially
through restriction plans, as has
been done in the recent past.
Obviously it is the banding of
American distributors to the great
est rubber consuming market in ex-
istence, to guard against the effects
Of the Stevenson plan as operated
by British interest in control of the
Far East rubber supply.
To Exert Influence
With all of the companies bound
together by a contract which stipu-
lates that each will be assessed q
nominal amount for the purpose of
accommodating capital the ramifica-
tons Of the combination are poten-
TALLY enormous. The General Rub
Der Company subsidiary Of the
United States Rubber Company, has
been selected as the sole purchasing
agency for the entire group. This
company will do the purchasing in
the open market, financing the rub
Der through the banks after the
operation has been completed. 1t is
understood that the National Bank
Of Commerce will do the financing,
which will run in the neighborhood
of $40, 100000. From now on it ap-
pears that America, the worlds lead
ing consumer of rubber, is going to
exert some influence in the shaping
Of prices for the commodity.
STANDARD Oil Issue
Another item of more than pass
ing Importance developed after the
actual close of the market, although
indicated before that time. This is
the coming issue Of 10000 900, TWEEN
ty-five year Az per cent debentures
for the Standard Oil Company of
New York. Incidental to this issue,
Standard Oil Company of New
York makes a formal application to
the stock exchange to list it's COM
mon stocks. The Importance of this
issue is emphasized by the fact that
the whole issue Is being taken by
one house, Dillon Read & Co., and
that Clarence Dillon is Offering the
bonds at 97%. to yield about 4.67 per
cent. This is the lowest price that
Standard Oil has ever paid for
money.
While this financing is In no way
connected with the recent issue Of
$120,O00,000 per cent debentures
for Standard Oil OF Jersey by J. p.
Morgan & Co., the rush of pre-
ferred stockholders to get aboard
the offering Of new IS at par in
Dictated the standing of good oil
debentures in this market and UNI
doubtedly encouraged standard of
New York's bankers to bring out an
even lower yield.
Money verified the expectations Of
most market judges by dropping
from the peak attained earlier in
the week. The 515 and even the
per cent rate had brought floods Of
funds this way and this accumula-
ton forced a further decline in the
posted rate to a basis OF Az per
cent at the close today.