North American's Atwood Would help diversify
shareholders of both companies. Rockwell Manufacturing Co., organized (as was Rockwell-Standard) by Col. Rockwell, will not be affected by the merger. In another move, the board of directors of Draper Corp., a textile machinery firm based at Hopedale, Mass., has approved in principle a proposal to merge the company with RockwellStandard, which now holds about 23.5% of Draper's common stock. In this merger, Rockwell-Standard would issue one share of $4.75 cumulative convertible preferred stock, par value $100, for each three shares of Draper common. This merger should have no effect on the formation of North American Rockwell, and North American Aviation would not comment on it. However, Rockwell-Standard says that North American Rockwell would probably issue to Draper stockholders a new stock which would be about equivalent to the proposed RockwellStandard preferred. The merger between Draper and Rockwell-Standard is subject to the approval of both companies' stockholders.
Sulfur's price rises this week Freeport Sulphur Co.'s and Texas Gulf Sulphur Co.'s 14% increases in the price of sulfur are effective this week. Freeport led off the second major sulphur price change since December's 10% hike by allocating sulfur to its customers with a price increase of $4.00 per ton of dark sulfur, bringing the price to $32.50 per long ton, f.o.b. U.S. Gulf ports (C&EN, March 27, page 2 5 ) . TGS followed with the same rise for bright sulfur to $33.50. 22 C&EN APRIL 3, 1967
Until last December's increases, the price of sulfur had been below its 1953-62 selling price, when sulfur was in oversupply. The new increases, Freeport president Robert C. Hills and TGS president Claude O. Stephens say, are necessary to stimulate the exploration and development of additional sulfur sources. These higher prices, they emphasize, still remain lower than those of U.S. export sulfur, Mexican sulfur ($43.50 per long ton since Jan. 1), and the world market. Free World and U.S. consumption of sulfur continues to exceed production for the fifth consecutive year. In the past four years, excess demand was supplied by withdrawals from stockpiled sulfur. These inventories are now critically low. In 1966, Free World producers supplied 24.0 million long tons of sulfur, short of the 24.7 million long tons actually consumed. Similarly, U.S. producers supplied 9.1 million long tons vs. 9.2 million tons consumed domestically. Of the U.S. production, about a fourth of the sulfur is derived from sour natural gas and refinery gases in the U.S. and Canada; the remainder is U.S. and Mexican Frasch sulfur. Throughout the oversupply period between 1953 and 1962, the demand for sulfur was not strong enough to stimulate large exploration programs. Such programs would include drilling for more sulfur domes and sour natural gas deposits. They would also include developing the more expensive sources of sulfur derived from smelter gas, pyrites, and gypsum. In the early 1960's, it became evident to sulfur producers that consumption was beginning to outstrip production. Accounting for this rise in consumption was the increased use of sulfuric acid in fertilizer materials. About 80% of all sulfur mined goes into making sulfuric acid. The annual growth rate for the production of sulfuric acid in 1956-65 was 4.6%. However, the 1960-66 annual growth rate was 7.2%, almost twice the earlier rate and unforeseen 10 years ago. To meet the new demands, sulfur producers are expanding their capacities. The U.S/s 1966 output of sulfur increased 1 1 % over that for 1965. Freeport points out that during the past four years, its production has increased by 70%. Pan American Sulphur Co., third largest Frasch producer (66% owned by Mexican nationals), has been undertaking an extensive exploratory drilling program to develop additional reserves. The company has also been granted an increased export allowance by the Mexican government for its 1967 shipments.
Owens-Illinois, Rayonier considering merger Owens-Iflinois, Inc., and Rayonier, Inc., have agreed to study the feasibility of a merger, according to presidents of the two companies—Ray onier's R. F. Erickson and Owens-Illinois , R. H. Mulford. Plans call for an exchange of about $300 million worth of stock, with Owens-Illinois the surviving company. Owens-Illinois' sales last year amounted to almost $908 million; its earnings were about $54 million. The Toledo, Ohio, company makes glass and glass products, plastic containers, and forest products. Rayonier's sales last year totaled more than $171 million; earnings were about $20 million.
R. F. Erickson Rayonier president
R. H. Mulford Owens-Illinois head
