The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-12-19
Forbes Business and
Financial Analysis
Bv 2. C.. FORBES.


Here's a piece of news that may
have great significance.
I have just received word that Max
May, at one time vice president Of the
Guaranty Trust Company of New
York and recognized as the largest
handler of foreign exchange opera
tons in America, has just been ap-
pointed director Of the Russian Com
mercial Bank at Moscow.
Mr.. May was vice president of the
National Bank Of the Republic, Chi
cago, when he recently left for Eu-
rope.
The Russian Commercial Bank, I
understand, has been formed, Jointly
by the SOVIET Government and impor-
tant foreign interests, notably Swed-
ish. In communication just re-
ceived Mr.. May says, IT am highly
, pleased with my new position"
Does this suggest that it is at last
becoming possible to conduct real
way in Russia?
Did you catch on to the significance
of the fact that John D. Rockefeller,
Sr., no longer owns a single share of
standard
Oil Company of New Jersey, the big
gest of them all?
President Teagle revealed on the
witness stand at Washington this
week that it is John D., Jr., who now
owns the Rockefeller share, amount
ing to ia per cent of the total. AS
the total common stock capitalization
of the company is $685., 900 000 this
means that young Mr.. Rockefeller's
holdings represent market value of
about 100000
Why this transfer?
By adopting this course no inheri-
lance tax will have to be paid by the
estate of the elder Rockefeller-at
least no inheritance tax on this chunk
of his fortune.
If the whole truth were known, 1t
probably would be found that the
great bulk of the Rockefeller fortune
has already been handed over to John
D., Jr. His father has implicit con-
fidence in the judgment, the integrity
and the soundness of purpose of his
fonly son, Mr.. Rockefeller, Sr., once
told me that it was one OF the deep
est joys Of his life that his son had
become so earnestly interested in
life.
The control of the Rockefeller mil
lions will be in safe, sober, well-inten-
toned hands.
The foremost business man in the
northern half of the Pacific Coast, E.
A. Stuart, president of the Carnation
Milk Products Co, with headquarters
in Seattle, sends me this friendly let
ter: 81 have been reading your ar
ticles on finance and am very much
interested in what You say about the
probability of rise in prices and
your warnings against unnecessary
price boosting. I think you have the
situation about as well analysed as
it is possible for any human being to
do at this time Surely the situation
is such that 1t is difficult for a bust
mess man to predict with any degree
of certainty what the future has in
store.
PERSONALLY l greatly regret to see
prices advancing at this time, for
feel that later on they will surely de-
cline, and under these conditions, the
most of the people naturally become
unsettled-not knowing what turn
business may take. Nothing upsets
business more than to have times, as
it were, unsettled
1 have encountered several respon-
sible business men lately who express
uneasiness over the way prices have
been rising and who fear that the
coming year will bring a reversal of
conditions unless the price brake is
vigorously applied from now on.
I've been writing a good deal lately
about the outlook for the automobile
industry. I've just received letter
from an old friend. Horace De Lisser,
Chairman of the Ajax Rubber Com
pany, who says he feeles as l do on
the subject. Then he adds the fol-
lowing interesting comment, which
take the liberty of printing;
LAS for the rubber industry, par
ticularly these manufacturers who
are producing tires, ! would say that
prices have been marked down so low
that there Is only one movement for
prices, and that it is an upward di-
rection. Especially is that true since