I. T. & T. Last fall I. T. & T. completed a deal with German General Electric whereby they would form a new company, Standard Elektrizitaets A. G., to hold stock in companies manufacturing telephone and telegraph apparatus. Just how they participated was not known until last week when it was revealed that I. T. & T. controls the new company with 62.9% of the voting and 55.4% of the non-voting stock against German General Electric's 31.1% and 39.3%. The remainder is owned by Felton & Guilleaume, affiliate of I. T. & T.
Kreuger & Toll. Another match monopoly and another bank merger were among the news items of last week in the offices of Matchmaker Ivar Kreuger. The match monopoly, obtained from the free city of Danzig, will last 35 years. To obtain it, Kreuger & Toll paid the city about $195,000. will make small annual payments, will also buy a $1,000,000 6% bond issue at 93. The bank merger was done through the Kreuger & Toll-controlled Deutsche Union Bank of Berlin, consisted of joining the Preussiche Pfandbriefbank (Kreuger & Toll-controlled) and Central Boden Kredit A. G., into the Preussiche Central Boden Kredit und Pfandbriefbank. Both the merging banks are leading German mortgage institutions, have $238,000,000 mortgage bonds outstanding.
Marine Midland. When Marine Midland Corp., bank holding company, was formed last September by Bankers Ernest Stauffen Jr. of New York and George Franklin Rand of Buffalo it was announced that the group would organize a large bank in Manhattan (TIME, Sept. 30). Later it became known that, instead, Marine Midland would purchase some existing bank. Last week the company offered to exchange its shares for the Fidelity Trust Co., $76,000,000 Manhattan institution. Upon completion of the deal, Marine Midland would control 3 banks, have total resources of $600,000,000 and 350,000 accounts. President of Fidelity is James G. Elaine (grandson).
Gulf States Steel. The by-laws of Gulf States Steel Co. require a majority vote by stockholders before the company can be sold. Last week stockholders were asked to give their proxies for an amendment that would change "majority" to "two-thirds." Said the official announcement: "A situation might arise where a sale . . . might be voted by the holders of 51% of the stock which might not be for the best interests of the remaining 49%"
Stockholders and steelmen knew this was no remote, hypothetical situation, but that Cyrus Eaton's Republic Steel is angling for Gulf, can probably muster at least 40% of the voting power. Meanwhile, U. S. Steel, foreseeing new competition in this territory, last fortnight announced it will spend "millions" on its subsidiary, Tennessee Coal, Iron & R. R. Co.