• U.S.

Business: More Mergers: May 21, 1928

3 minute read

Banks. President Nathan S. Jonas of the Manufacturers Trust Co. of Manhattan last week announced that his bank had arranged to acquire the United Capitol National Bank & Trust Co. to form an institution with 30 offices and total deposits of $275,000,000. In the 23 years of its history, the Manufacturers Trust has made twelve consolidations. In every case Mr. Jonas and his associates have permitted the executives of the merged banks to function as though they continued to be independent and untrammeled bankers; ant to that shrewd managerial policy, other bankers attribute Mr. Jonas’ eminence in banking.

The Boards of directors of the Merchants National Bank and the Citizens National Bank of Baltimore met last week; agreed to consolidate to form the largest banking institution in Baltimore, with total deposits of $76,000,000.

Shoes. The Kahler Shoe Co. (sum of the Dr. Peter Kahler Sons and Lounsbury-Soule Co.) of Manhattan was acquired last week to become a part of the newly incorporated Henne-Kahler Shoe Co. Other constituents of the new chain are: Physical Culture Bootery, Physical Culture Shoe Shops of Jersey City, William Henne & Co., Fashion & Comfort, Inc.

Automobile Parts. Four companies (with combined assets of $15,000,000) which make automobile parts last week agreed to consolidate into the largest manufacturing unit of its kind: Borg & Beck of Chicago (clutches); the Marvel Carburetor Co. of Flint, Mich., and its subsidiary, Wheeler-Schebler (carburetors for automobiles, boats, and motorcycles); Mechanics Machine Co. of Rockford, Ill. (“Universal” joints); and Warner Gear Co. of Muncie, Ind. (transmission gears). A holding company, called the Borg-Warner Corp. will be formed, with George W. Borg, of Borg & Beck, as president of the new concern.

Roofing Materials. The oldest manufacturer of composition roofing is the Rubberoid Co. of New York (founded in ). It has paid dividends for the last 39 years. Last week it absorbed an old and a young rival company: the H. F. Watson Co. of Erie, Pa. (founded 1891) and the Continental Roofing & Manufacturing Co. of Baltimore (founded 1922). Total assets of the new Rubberoid Co. are $16,089,596.

Electricity. Bonbright & Co., investment bankers who specialize in public utility securities, last week brought about another huge merger of electrical concerns.* To two light & power companies already in process of merger—the Northern Ohio Power Co. (controlled by Hodenpyl, Hardy & Co., organizers, developers and operators of public utility properties) and Penn-Ohio Edison Co. (controlled by Stevens & Wood, general engineers & constructors, who also manage, supervise and finance public utility corporations)—to these Bonbright & Co. and Hodenpyl, Hardy & Co. are adding their Commonwealth Power Corp. (extensive power lines in Michigan and Tennessee). Assets of the consolidation are $500,000,000; its name, Allied Power & Light Co.; its president, Ray Parker Stevens of Stevens & Wood; its chairman Bernard C. Cobb of Hodenpyl, Hardy & Co.

*Last year there were 828 mergers and realignments of U. S. electrical concerns. Fifteen holding and operating groups control four-fifths of the national production—60 billion kilowatt hours out of 75.1 billions produced last year— according to the analysis made last week by the Kational Committee on Coal and Giant Power.

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