Evening star., 1931-06-27

chain stores. The chain stores have in
recent years become the largest dis
tributors of cigarettes because they have
been able to sell leading brands at two
for a quarter, while the independent
man had to demand IS cents a package.
Chain store executives have been
holding conferences to determine their
respective future selling policies as
result of the action by the manufac-
turers. Spokesman for some of the
leading firms have given opinions that
retail prices eventually would be in
creased to is cents package
Increase in Earnings.
One Wall Street statistician figured
that, based on the 1880 published earn
ings figures and estimated 1880 output
of 45,000, 900 900 cigarettes for Amer
ican. Tobacco, 35,000,0 100000 for Rey-
Myers and 10,000,000,000 for Lorillard,
the increased wholesale price of
cigarettes from $6.40 to $6.85, when in
effect a full year, would increase Amer
! ican Tobacco'S earnings from $3.50 a
share to $1193 a share, Reynolds from
$3A2 share to $4.68 a share, Liggett &
Myers from $7.15 a share to $1021 a
share and Lorillard from SLAB a share
to $3.50 a share.
sales are running about 10 per cent
ahead of 1880 figures, so that the price
! increase applied to American for full
| year on the present reduction rate would
bring earnings closer to $13 a share.
Powerful Securities Organization.
It probably is not generally realized
what an enormously powerful security
distributing machine was created when
the old investment banking firm of
| Harris, Forbes g. Co. was merged with
the Chase Securities Corporation. The
greater institution formed by the
J merger will be called the Chase Harris
1 Forbes Corporation. The new inSti-
tuition will begin operations in So of
the leading cities of the country and
in Canada and Europe on July l.
Harris, Forbes & Co. was one of the
oldest investment firms in the country
In the last five years it has underWrit-
ten and distributed to Investors billions
of dollars of stocks and bonds. The
| Chase Securities also had an enormous
distributive power.
An idea of the size of the 6iStribut-
! ing business of the combined institu-
| tionS may be obtained from the fact
| that together the two have headed
syndicates selling securities at the rate
of $450,O00,OOO a year thus far this
year.
This does not take into consideration
the amount of distribution in which
both participated as members of syn
dicates which they did not head.
The power behind the new institu-
ton will be the Rockefellers The
! Chase National Bank is now known
as the Rockefeller Bank, although the
Rockefeller group is not believed to own
the largest block of stock. The group
holding the largest amount is said to
be the so-called "Wiggin" group, head
ed by Albert H. Wiggih, chairman. of
the governing board of the bank, with
the next largest stockholder being the
Rockefeller group and the directors
of Harris, Forbes & Co. forming the
third largest group.
Will Merge Offices.
Harris, Forbes g. Co. had q working
agreement with the Harris Trust &
Savings Bank of Chicago whereby the
latter handled the sales west of the
Mississippi. This agreement will not
continue under the new organization,
although very cordial relations will be
maintained. The new organization will
now operate through its own chain of
Offices from coast to coast.
In some cities there are offices of
both Harris, Forbes & Co. and the
Chase Securities Corporation. This
duplication will be eliminated and only
one Office will be retained in each city.
The main Office of the Chase Harris
Forbes Corporation will be located in
the Chase Bank Building, in Pine street,
New York City.
l This merger of Harris, Forbes & Co.
and the Chase Securities Corporation
brings one very interesting character
to the fore in the person of Harry M.