The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1940-02-13

W." hORh AtAAdotAPtAAa ~
is the chief intermediate holding
company in the Standard Gas 4
Electric system and furnishes most
OF the income received by the
parent corporation.
There had been serious appre-
hension In financial circles that the
securities and exchange commits
sion would order Philadelphia Co.
to stop dividend payments on its
common stock. The result Of such
a ruling would have been to plunge
Standard Gas & Electric into bank
ruptcy, just as Associated Gas &
Electric was pushed off the deep
end by a similar decision several
weeks ago.
The SEC, however, was more
lenient than expected. 1t author
lied Philadelphia Co. to continue
dividend payments provided it
makes certain financial ADJUST
ments within a reasonable time"
These adjustments include the re-
funding Of Philadelphia Co.'S SO
debentures now outstanding in
the amount of $50, 900 900, and the
sale of its common stock holdings
in Duquesne Light Co. in order
to realize the profit which the
company claims to have on this
stock.
DisintegratiOn-The latter stip-
ulation is the concealed mailed
fist inside the velvet glove. Du-
quesne Light, which serves the
Pittsburgh area, is by far the big
gest and most valuable operating
property in the Standard Gas &
Electric system. If 1t has to be
sold, Standard may still get divi-
dends from Philadelphia Co. for
while, but 1t will have been de-
prived of its principal ultimate
source of income. 1t is most I'M
likely that it can reinvest the
funds received from the sale of
Duquesne Light anywhere nearly
as profitably elsewhere.
So the SECS kindness" in eff
feet cuts the heart out of the
Standard setup. Wall Streeters
call it neat back-door method of
forcing the disintegration of a
utility holding company in accord
ance with the commissions long
range program. The Philadelphia
Co. is hardly in a position to pro-
test or fail to comply.
Comment runs that Victor
EmanuePs efforts to be friendly
with the administration aren't do
ing him much good. Mr.. Emanuel
controls the Standard system. In
view of the unfavorable long-term
outlook, insiders are avoiding COM
mitments in any of the securities
of Standard Gas & Electric and
Standard Power & Light.
Foresight-1nformed New York
ers say that Standard Oil of New
Jersey obtained exclusive Ameri-
can rights to the German artificial
rubber process-"Bu na"-through
its connections with !. G. Farben-
industrie of Germany. The latter
company has an important inter-
est in the product.
'Buna" is used in place of rub
Der on practically all German
army trucks and a good many
German passenger vehicles. 1t
costs about three times as much
as natural rubber, but is said to
have much longer life.
The relative cheapness of natu-
raj rubber will limit the market
for the substitute at present. In
siders say, however, that Standard
of New Jersey showed foresight in
its acquisition. If the exigencies
of war should cut off rubber sup
plies from the Orient, American
ownership of the "Buna" patent
would become an extremely prof
liable asset.
Reports Are That: American
Telephone d Telegraph earnings
for first quarter estimated between
$3.50 and S2.s5 a share against
S2.12 for same period last year
Strong institutional buying
in this stock for income
Associated Dry Goods avoided as
highly speculative Pacific
Lighting in favorable position be-
cause of immunity to utility hold
ing company act and growth of
territory Eagle-Picher Lead
expected to profit from impending
war orders.
Investment buying in virginian
Railway common :. Snider Pack
ing net for fiscal year ending
March 81, 1910. estimated at So
a share against Sc cents year ago
F.. Twin Coach has record back
log Foreign aircraft orders
lift Brewster Aeronauticars back
log from $4,000. 900 to S21, 000.-
600; Republic Aircraft's from s11,-
SOC. 900 to sl5.200, 900
Brmswick-Balke-Collender may
declare so cent dividend next
month Industrial development