Business: Deals & Developments: May 5, 1930

Food. Recent activity in the stock of General Foods Corp. was explained last week with the revelation that Bancamerica-Blair has bought 400,000 shares or 7% of the company’s common stock from “private interests.” Although the only change in General Foods will be the election of Hunter S. Marston, Bancamerica-Blair president, to the Board, some significance was attached to the fact that Blair and California Packing are very friendly. At present General Foods has more than 80 branded products (ten leading ones: Walter Baker’s Chocolate, Maxwell House Coffee, Calumet Baking Powder, Postum, Hellman’s Mayonnaise, Grape Nuts, JellO, Log Cabin Syrup, Swan’s Down Cake Flour, Diamond Crystal Salt) which it distributes through 400,000 grocery stores. The average age of the component companies is 40 years. Hoariest of all is Walter Baker’s Chocolate, now celebrating its 150th anniversary. Chairman of General Foods is Edward F. Hutton, husband of the daughter of Postum-Founder Charles William Post.

Van Sweringen Corp. Last week the Van Sweringen Brothers placed another stone on the pyramid of holding companies they are erecting. First came Chesapeake Corp. in 1927, taking control of the C. & O.; next (last year) Alleghany Corp. which is a general holding company for Van Sweringen railroad interests. Last week Van Sweringen Corp. was formed, and the public invited to buy $30,000,000 worth of notes in it. Although the new company’s excellent charter gives it the power to do almost anything by the phrases: “buy, sell, trade in or hold stocks and securities or other property, and to enter into such other transactions as may be from time to time determined,” its domain is expected to be real estate rather than railroads. The Van Sweringens began as real estate operators in Cleveland, grew famed through their deals in the expensive and fashionable Shaker Heights district. The new $75,000,000 Van Sweringen Corp. will acquire their present holdings in the Cleveland Union Terminals Co. project and will also have 500,000 shares of Alleghany stock, presumably personal holdings of the Van Sweringens.

Marine. When the Government, after the War, disposed of its stock of Cadillac engines, many found their way into boats. Last week Cadillac’s Lawrence P. Fisher announced the company will develop a special form of V-type motor for this use, previously not encouraged. At the same time he said: “Since the General Motors Corporation entered aviation we have been assisting in the development of airplane engines, and in all probability we will engage in their manufacture as a matter of course.”