Evening star., 1921-03-06
NATION NOW ENCOURAGED
TO LOOK FOR IMPROVEMENT
Business Administrator and Policy Out
lined in Address of President Harding
Meets With Approval.
re needed because war days are pass


Earnings are very unsatisfactory.
Even the big increases in freight and
passenger fares have not been Sufh-
cient to place them on d solid basis
The movement of merchandise is
not active and this restricts trans
portation returns.
Local Securities.
The past week has--witnessed the
highest prices on this movement of
Washington Railway and Electric
Railway shares, and also bonds. The
public utility situation is brighter
The practical market price of the pre-
fcrred shares of railway company is
60, as compared with a low of 3S y
last year.
Graphophone shareholders, of whom
there are many, have been grlevouS-
ly disappointed by the action of the
market for these shares but have
some little cause for thankfulness. in
the manner in which the market took
the passing of the dividend on the
common stock. This action should
have helped the preferred stock. but
it did not cause the slightest change
for the better.
Holders of local bonds have been
satisfied with prices lately. With
easier money there should be some
improvement in these old-time Sc
curities. which are at present not in
line with gong interest rates.
Tidf>yatcr Lines. Inc.
The Tidewattr Lines. Inc. com
mcnced business in June 1920. hav-
| ing taken over the entire holdings of
the passenger lines preVioSuly oper-
ated by the Semmes Motor Line.
Tie company is operating busSes for
passengers and ten freight trucks. 1t
| is the only transportation service
serving various communities in south
ern Maryland daily.
Under the present management the
| company increased its business from
s14.5S6 in July. 1919. to $1S.167 for
| the same month in 1920. added $4,000
! to receipts in August, practically dou-
! bied the revenue for october. re-
| peated Oh the same basis in Novem-
I Der and December. The open winter
| may have aided in creating the in
! creased business
| The company has earned per mt
| on its authorized preferred stock and
/ 8 per cent on its authorized common
! for the entire period of operation
/ The average net receipts per day for
! passenger traffic is $3.50: for freight,
! $l25. and miscellaneous returns are
| s35 day.
| f.. D. Hathaway is theSpresident of
! the company: George Wigginton. vice
! president. and Henry Allyn. general
| manager.
The company is now Offering one
! share of the common stock. no par
| value. and one share of preferred.
/ 800 par value at $95. Howard FL
! iiott. president of the Universal Bond
i ma Share Company, of 1000 Vernon
l avenue. is in charge Of the stock sale.
In the Way OF Adjustment.
| The American National Bank of New
York makes the following comments:
| Three factors-high wages. high
! coal prices and high freight rates
| were mainly responsible for delays i'll
1 the reimbursement process during Feb
| ruary. Other factors were active and
| contributors to the general result
but the removal of the three named
| would open the way for permanent
,rogress and disperse the doubts
| which still infeSt the business mind
| Further improvement in the credit
| situation. as evidenced by gains in
| he reserve ratios of the federal re
! serve banks, and a bold facing of the
| consequences of readjustment by in
lus rial corporations as reflected in
| heir Willingness to take losses rep
| scented the distinctly forward steps
| f the month. The spotty' aspect Of
| the business revival reported last
month was replaced by a slightly bet
| er general forward movement. but
! t was felt that readjustment must
| o further before the situation can
! g expected to show permanent inn
Irovemcnt. The irregularity of the
,ric decline as between the primary
| md the retail or Gost of living mar
kets continued, although some of the
| 'ctail markets have evidently receded
| .s far as is practicable in advance of
! reductions in wage scales and other
| items of cost. Steel prices showed
| further reductions. petroleum and
! rude oil prices declined for the first
/ time. and cotton. which had already
| hav
| material, went lower. touching the
| 1914 level. Corn also reached the
! Nr:-war levels, and hides. hogs and
/ .ther farm products approximated
| hem. These reductions have stripped
| roduccrs of their buying power in
nc retail markets, where prices con-
| 'inue at from so to 10 per cent above
| he pre-war level. Reductions in
wage rates have been small. running
/ rom 10 to 80 per cent. but the re-
! tuction in wages paid has beer con-
! siderable. as the steady increase in
| unemployment shows.
Expect Revival.
| In part the resistance TO the re-
! adjustment of prices to conform to
| he changed conditions is due to the
| expectation of sudden revival of
Nusiness and an incidental advance
m prices. Those who refuse to take
'osses know that there is a potential
!
| tcVelop into a real shortage with the
| reopening of trade. IF the London
| conference Of the premiers succeeds
! working out plan by which Ger
many can pay indemnity and re-
| estabi'sh her credit al the same time
a revival such as those who are re-
| sistlng price cuts anticipate. is prob
| able. Otherwise. the readiustment
! process Will have to go on until all
interests have shaken out the wa
err \ reparations settlement that
could be made the basis of credits in
| his country would restore prices in
! the primary markets. revive indus
! trial activity and increase purcha sing
! power. In the main. resistance TO
| IuadJustment has been short-sipbted
anc foolish. The persistence Of biph
| cost OF living retail prices into the
| planting season means that the
/ farmer Will have an immediate in
ccntive for reducing acreage and
adopting diVersification. The oreani-
zatlon of cooperative societies also
| VIII De given increased. impetus and
| manufacturers who have been made
| TO suffer by the refusal of retailers
TO take losses will be more than ever
inclined to adopt systems of direct
| distribution" VII ee'