GOLDEN STATE L Deal Completed on Basis of 1 for. 2 Shares of. Stock; Contracts for Employee Purchases Are Reduced jf Successful termination of tha negotiations for the consolidation of Golden State company with National Dairy Products company, was announced today: As Indicated in The TRIBUNE yesterday the eastern concern will exchange its stock for the local corporation, on a 1 for 2 basis. Golden Stat company has-assets in round numbers of $20,000,000 which Joined up with the $233,000,000 worth of properties of National Dairy Products scattered throughout tha. northeastern and middle Western states, will create a consolidated enterprise valued at $263,000,000, HISTORY OF GOLDEN STATE. Golden State company. 1 a corporation successor to the Golden State Milk Products .company, which in turn was an outgrowth of the former Central California Creameries. Organized originally; as a butter producing concern. Golden State about six years ago embarked In a campaign of extension when the stock-boom waa at Its height and purchased several large milk distributing concerns in the Eastbay and in Log Angeles section. Among the concerns acquired hsra were the Central Shuey Creamery, the Walnut Grove Dairy, and finally that Berkeley Farm Interests of Frank E. Heath. These were the threa largest units In the Eastbay. Their purchase was acquired for tha most part on a stock exchange plan. Acquirement of large like concerns In the southern end of the state waa made on the same basis. STOCK CONTROLS CHANGED. It Is understood the agreement provides that if the merger i completed, the contract price at which employees are now purchasing stock in the Golden Stat company will be reduced from tha present basis of $31.26 a share ta $24 a share. Through this consolidation present stockholders in Golden State company, Ltd., will become owners In National Dairy Products corporation, which 1930 figures show was the largest distributor of dairy products in the United States. The National Dairy Product! corporation reported sales volume of $374,568,411 In 1930 as compared with estimated sales of about $29,000,000 for the Golden State company. Stockholders of the National Dairy Products company who purchased stock In 1921 and who have held all stock benefits since, had holdings valued on December 31, 1930, inclusive of cash dividends paid and stock rights at $434.49 for each $100 of original Investment, an appreciation of 884 per cent. WIDESPREAD INTERESTS. The company now operates, through subsidiaries in New York, the New England States, New Jersey, Pennsylvania, Delaware, Ohio, Illinois, Michigan, Wisconsin, Iowa, Nebraska, Missouri, Virginia, Kentucky and Tennessee. Through the proposed merger with the Golden State company, Ltd., National Dairy Products corporation expands its operations on tha Paciflo coast and becomes an Increasingly Important factor in the export trade. Chairman James Henderson et Golden State company, In presenting the proposal to the directors, pointed out that by the merger stockholders In the Golden Stat will acquire interest in a much larger company, whose shares enjoy a more stable and much wider market than now enjoyed. I
