Evening star., 1928-05-18
SOUTHERN carries
CONTROL BOUGHT
Kraft -Phenix Cheese Co.
Buys Major Stock Interest
in Local Concern.
By EDWARD c. STONE.

BY EDWARD c. STONE.
Stock control Of Southern Dairie:
Inc. has been acquired by the Kraft
Phenix Cheese Co. of Chicago. accord
;ng 10 information carried on the DoN
Jones news service this morning.
The Kraft-Phenix Cheese Co. is on
Of the largest firms of the kind IN TN
country and the news of the tranSfe
in control of Southern Diaries is o
great interest and Importance TO Wash
;nrton. which is the home of the com
pany and where great deal or the
stock Is held.
IT has been known for some time
that Hartman & Co, has been ac'
curing large blocks of the stock OF
behalf Of some out-of-town firm seek
ing control. but G.. Bowie Chapman
resident partner. said today that he hao
M statement to make at tlaS time.
1t is understood that Southern Diaries
viii not be consolidated with Kraft
Phenix Cheese, but will operate as a
separate company with the kraft
Phenix management closely identifleo
with Southern Diaries. Another report
current today was that the KRAFT CON-
many will later make an offer TO the
minority shareholders in Southern
Diaries regarding an exchange OF STOCK
The Southern Diaries Co. ooeS a large
ice cream business throughout tht
South. The company has plants eX'
tending from washington and Baitl'
more to Atlanta. Chattanooga anc
many other Southern cities. A year agt
the company carried out an extensive
EXPANSION policy, but business last SUM
rer was Disappointing on account oi
SO much cool weather.
Southern Diaries A stock has beer
advancing for some time. closing yester-
dav on the New York Stock Exchange
at 56s4, q gain of Si2 points on the
CAV, The B stock is now selling around
24lg. Kraft Cheese jumped points
yesterday and closed at 75ss.
The Kraft-Phenix Co. expects to use
the Southern Diaries Co. to extra ao-
vantage. During the quiet season N
the ice cream business the surplus prod
net of all the creameries will be put into
cheese, which viii be in prime conol-
ton for sale during the rush periods IN
the cheese business.
Treasury Secs Business Gains.
The tightening of the money market
Is held by Treasury officials to be Que
10 the demand for funds resulting from
recent increased business activity.
Business activity with its increased
pay rolls calls for more funds, and an
awakening Of business and Tightening
of money usually run arm in arm.
Another reason for the Stlfening oi
money rates. Treasury officials said, was
the continued export movement OF gold
without a counter offsetting by the
Federsi Reserve system. No immediate
move is contemplated by the Federal
Reserve system for offsetting gold ex-
ports.
Bankers Oppose Fertilizer Move.
The board Of governors of the Invest
ment Bankers Association OF America.
in session at White Sulphur Springs.
w. Va. passed a resolution IN oppoSi-
ton 10 the bill before Congress which
TO manufacture fertilizer at Muscle
Shoals and the selling Of the same at
retail. The resolution. forwarded TO
Speaker Longworth. concluded:
we feel that for the Government TO
10 into the business Of manufacturing
and selling fertilizers would be unfair
competition with established private
enterprises and would be contrary 70
that great fundamental principle on
which our Government has always op-
Grated. namely that the Government
should not attempt TO do for the citi-
zen what private enterprises can do
equally as wen or more efficiently"
Eugene z. Thompson OF this city. a
member Of the board. and Paul v. Key
ser. counsel for the association, attend
ed the sessions
Local Securities Reniain Steady.
Capital Traction sold at lOsss on the
local exchange today, Washington Gas
came out al es. Merchants Transfer a.
Storage preferred at ifl8 and PEI Piles
Drug Stores preferred at i16ts.
Railway & Electric preferred sold at
psr and n. Mergenthaier changed
hands at 10ls.. and the first sale this
year was recorded in Security Storage
az i33N. One bank stock was out,
American Security Ss Trust opening at
$50 and closing at 452.
On the bond side Railway a. Electric
Is sold at 93i2. City & Suburban SIS a.
5D0i2. and Washington Gas SIS, series
a, at 1864.
Financial District Notes.
The Mergenthaler Linotype DIVIDENDS
are payable on June 30 TO shareholders
Of record On June 6.
Judge Etadord's ruling in favor OF
the Riggs National Bank, in the test
tar case made In behalf Of local banks,
as noted elsewhere in today's Star, wiz
arouse vide interest In financial circles.
A4toruey Frank j. Hogan. argued for
the bank, the verdict being given this
afternoon.
All he officers of the Seab0ard Air
Lire were reelected In New York yes
ferday and all the directors with the
exception Of NJ. II. Caniil and NJ J.
Caples.
Concert Tickets Set Aside.
The unusual demand made upon the
international Exchange Bank for tick
els 10 the Sunday afternoon eonceri
xrrscf Il in giving al the washington
Auditorium. with Rafaelo Diaz, tenor
and Rosa Low. soprano, of the Metro
poiisan Opera Co. az the guest artists
has caused Fernando Cllniberti. pTegt.
dent Of the bank, 10 set aside block o.
tickets for the use of those who were
not included In the invitations. Thes'
tickets may be procured by calling d
The International Exchange Bank Fifti
ard n streets northwest any time dur
iag today ard tomorrow UP To z O'Clock
Brokers' Loans Increase.
Loans 70 brokers and dealers held b.
kB9e New YORK Federal Reserve n1embe
banks for the week ended May j.
amounted 10 s4,S02, ,0zk 900. the Fedora
Reserve Board announced yesterday
compared With 3l,56i ,i0s 600 the pre-
ce6ang week.
s-~1--~s~e1 e~~7rs-~vae-ssr
SALE REPORT DENIED.