The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-07-08
Giants of Industry Arise
Out of Consolidation in
Many Fields.
BILLIONS ARE INV0LV WE'D
Other Deals of Vast Size
Are Reported to Be in
the Making.
BY RAY TUCKER
Times staff Corresnondart

N~AS4AAAN1A ONs July S.-In6
huge mergers affecting almost every
American industry are attracting
the attention of federal officials and
congress.
Within the last six months-or
since President Hoover's election
there have been unprecedented COM
binations of groups engaged in
banking, power development, radio.
shipping, railroad transportation,
automobile manufacture, depart
ment stores, food production and
aviation. Hardly a single field of
financing, producing or distributing
has been left untouched.
The new age of mergers involves
the stage, motion pictures, radio
broadcasting, cosmetics, insurance
companies, jewelers., cigar and gro
Gerry store chains, hotels, textiles,
express companies and chemicals.
Many have ramif1cations as extern
slve as the cartels of Europe, in
volving interests in Canada, South
America and Europe
Other Mergers Rumored
There are reports of further con-
solicitations. Negotiations are UNI
der way to bring together some of
the steel companies now independ-
ent OF Bethlehem and U. S. Steel.
Today's merger precipitates tomor-
rows combination of rival groups to
meet changing conditions and more
powerful competitors.
Through various branches of the
government are studying these eco
nomlc changes, no definite poll
icy has been formulated to deal with
them. Each important merger is
submitted to scrutiny-nore than
sixty are being studied by the de-
partment of justice-to determine if
violations of the antitrust laws are
involved.
But the neWness and naGuralness
Of the economic advance so hewil-
ders even those trained to observe
such changes that William j. Dom
ovan, formerly in charge of the an
THRUST division, has suggested a new
agency for dealing with these COM
binations 1t is probable congress
will ask an inquiry with a view to
regulatory legislation if any is found
necessary.
Morgan Backs Deals
Behind several spectacular mer-
gers stands the House Of Morgan.
This financial institution recently
effected a combination of the three
greatest power companies of New
York-the Carlisle, the Schoelkoff-
Brady and General Electric-with
the United Gas of Philadelphia,
which has ramif1cations in New Jer-
sey, Pennsylvania, Delaware and
Maryland
With additional units to be
brought in, this will be $500,000000
combination, controlling power re-
sources at Niagara, on the Hudson,
st. Lawrence and Susquehanna
rivers and at the New ConoWingo
dam in Pennsylvania.
Almost on the same day this COM
bine was announced came word Of
a rival power group that would en-
brace the Electric Bond and Share
Company, the National Power and
Light Company, the American and
Foreign Power Company and the
American Gas and Electric Com
pany.
The InSul groups also are said TO
be negotiating for a reaching
tie-up of middle western hydro
electric units. In the far west with
the new government power house at
Boulder Dam in prospect there has
been formed a $192,O00O0 merger
uniting the Pacific Lighting Cor
poration and the Southern Cali
fornia Gas Corporation.
Power Is Centralized
Even without these combinations
the power resources of the nation
are centralized closely. The Nor
gan interests are estimated to con-
troll 10 per cent, the Electric Bond
and Share IS per cent, and insult
10 per cent
The house Of Morgan also organ
lied the great combine Of Fleisch-
mann company, the Royal Baking
Powder Company and z. w. Gillett
Ltd, the largest baking powder con-
Germ in Canada. Other firms manu-
featuring household necessities
mentioned as possible units in this
s43O,o0o,O0O merger are Chase and
Sanborn coffee, Campbell soups,
Gold Dust, Postum and Kraft
Phoenix cheese.
General Motors long ago set the
merger pace in the automobile
world, but its example recently was
followed when the Dodge and
Chrysler interests combined into a
s160,O00,00o corporation. and the
Studebaker and Pierce ARROW linked
fortunes. Further combinations In
this field are forecast.
Railroads Are Merged
The interstate commerce. commits
sion has before it merger applica-
tons that would divide the railroads
into a few empires controlled by
the Baltimore & Ohio, the Van
Sweringens. the pennsylvania. the
New York Central, the Loree in
terests and the Wabash. These ap-
plications envisage railroad systems
OF $4,000 miles of trackage, valued
- &c.. Ao nan nna ann - 20