Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-23
.S8|lD,O0O,O()D FOOD
COMPANY IS SEEN
Other Units May Be Included
in FIeischmann-GiIlette
Combine.

Special Dispatch to The Star.
NEW YORK, June 22.-Further ex-
pansion Of the Morgan-flnanced food
merger announced Thursday and which
includes Fleischmann, Royal Baking and
T.. w. Gillette, Ltd, as the initial units
was indicated yesterday in sources con-
cerned In the consolidation.
Meanwhile, Washington advices re-
ported and later denied that the De-
partment Of Justice would investigate
the merger as a possible violation OF
the antitrust laws.
An expansion In the corporation-as
yet unnamed-to the extent of $780,
DOC, 900 Is indicated by the unused por-
ton Of its 100000 shares Of common
stock remaining after full exchange of
IL, 800, 900 shares Of the new stock for
Fleischmann, Royal Baking and Gil
lette has been effected. On this basis,
and taking into consideration the SELL
ing prices Of the stock in four different
quarters In the financial district yes
terday around $35 share, the money
value Of the consolidation, 50 far as Il
has gone, Is approximately $3.50, 000, 900.
the company has 1000, 0O0-share issue
OF no-par preferred, of which 100, 220
shares are required under the exchange
OF stock plan In the consolidation.
Offers Explained.
An ofi1eial of one Of the companies
stated that the consolidation was purely
In the interests of bringing about operat,
ing and administrative economies in
the various companies concerned and
that the boosting of retail prices would
not occur rs result.
The units In the consolidation are
FOOD specialties or Injuries only and
are not essential products. We would
not consider the inclusion of any COM
pany manufacturing or dealing In food
necessities" he stated.
He declined to designate by name
any OF the new units which the
corporation Is planning to acquire, but
admitted that in the "A hours elapsing
Q number Of tentative offers had been
received.
Some Of these companies are total
strangers to me-" Mr.. Cochran re-
marked, snilingly.
New Units Rumored.
Meanwhile, however, the Street was
Seething with rumors In regard to the
identity Of the new units which may
ultimately be included. The original
announcement indicated that Chase
q Sandbcrn, coffee importers and dis
tributors, would be the first. Others
rumored were Postum Co, Inc; Camp
ben Soup Co., Gobel's, sausage makers;
Gold Dust Corporation and the Kraft
Phenix Cheese Corporation. No con-
firmation Of the possibility Of their In.
clusion was available in any case.
Morgan interests, for some time
heavy stockholders In Fleischmann, be-
lieve that the merger win utilize to
more nearly its capacity the wide
spread distributive organization of the
Fleischmann Co., which has 900 direct
selling agencies in the United States,
stitutions and ESQ, 1000 retailers.
Fleischmann operates IL plants in
the United States and Cuba, manu-
featuring yeast, vinegar. Industrial and
denatured alcohol, malt extract and
"stoX" and other products. The COM
pany's share capital consists Of 1920
shares Of preferred and 100000 shares
of common. Gross earnings last year
were $64,0o4.S66 and net income $ls,-
$40, 600.
The Royal Baking Powder Co., con-
trolling the Canadian firm of Z. W..
Gillette, Ltd, has eleven manufacture
ing plants. The company has 100000
shares Of preferred and 100000 shares
Of common. Gross sales for 1928 were
$4,s45. 1895 and net income $l,265,ooo.
Stock Sold in Four Quarters.
Wall Street gave the stock In the still
unnamed company o good send.oh and
during the day transactions In the
shares on O when-and-if-issued basis
were conducted In four different quar-
tiers under four different designations.
On the Produce Exchange dealings
proceeded under the name Of Food
Products Holding Corporation: the
over-the-counter trading was conduct
ed under the title of Food Products;
unlisted security dealers called 1t New
Fleischmann," and on the curb. where
It was admitted to unlisted trading dur
ing the afternoon. It was launched un-
der the designation "Fleischmann-
Royal" The curb close was San. COM
pared with high for the day of 35k.
Sales on the curb totaled 5000 shares
and were estimated elsewhere to have
aggregated $4,000 to 10000 shares.
On the big board Royal Baking closed
AZ AMI. off " net ON aAlea Of 40 000