Evening star., 1922-01-07
Special Dispa tch to The Star,

special Dlspatch to The Star.
NEW YORK, January 7.-Business
has learned that there are more ways
Of killing cat than choking it with
butter. There are two methods Of dis
posing Of some Of the troubles that
harass business men-through con-
solidation and diffusion Of production
and those methods will be extens-
lively used during the coming year.
This year Of 1929 will be one Of
mergers. Business dispatches receiv-
ed within the last twenty four hours
Indicate unmistakably that many Of
these are well on the way to COM
pletion.
These consultations and expan-
sions are based on the sound prin-
ciple Of reduction OF costs in over
head. in production and in distribu-
ton as means Of meeting competi-
ton and lower level of prices. Con-
Germs with national markets are not
waiting for reduction in freight
to competitors more advantaseously
placed. They are arranging to put
themselves on an equal footing
through consolidation with other
companies adjacent to these fields. or
by the erection of plants in widely
separated sections, which will produce
like results.
These tendencies are especially
prominent in the iron and steel in
dustry. The Jones & Laughlin
Company. one of the largest inde-
pendents. is preparing to erect
Competition in the Chicago district.
and will operate a feet of river crafs
to equalize freight rates to southern
markets. Youngstown Independents
are working on q combination which
will give them plants in fields far
removed from their present locations.
To Avoid Disaster.
The general trend toward reorgani-
cation is scarcely less noticeable in
houses are absorbing concerns OF less
er stability, not to stifie competition
but to avoid commercial disasters det-
rimental to business as whole. The
day Of widespread bank and business
failures is fast passing. for experience
has shown that such disruptfons Of
business confidence are only slightly
the storm than to those who go under.
Throughout the country, therefore,
holding companies are being formed
to take over sound but non-qiquid as
sets Of concerns in doubtful positions.
paying such concerns the cash and
managing the assets until they can be
realised upon advantageously. This
is relieving banks and business houses
Of burdens which. while Of undoubted
Value, would hamper them at every
step toward business rehabilitation.
Companies operating chain stores are
expanding and some are absorbing
smaller concerns in whole or In part
to Ia IND tVyf a.
ual and commercial overhead Is COM
ing through widespread revival in
building operations. which give as
surance Of the reduction OF high rents.
one of the chief overhead items. Ho.
tells in buying centers are crowded
with buyers for retail establishments.
and. while many OF these are looking
spring lines are attracting moro and
more attention.
Coal q DARK Trade Spot.
Tho coal situation, which has been
one Of the dark spots Of the business
armament for months. Is showing de.
cfded Improvement. Prices are not
expected to advance. but costs of pro-
duction, 1t is felt. will be effectively
reduced. Development Of new oil
wells give promise Of increased oil
production throughout tho year.
Lumber demand in many sections is
fully equal to production. and In some
cases e1oeeds 1t. Prices are steady
and set,ysly on the ino.s.ss; The The
the Industry has been stabilised both
with regard to prices for manufao-
tured goods and in respect to wages
for textile workers.
Crop conditions are brighter now
than they we're at this time last year.
and the situation Of the farmer is
gradually assuming a moro cheerful
aspect. Better financing Of crops
seems practically assured for the
COMING Drop seasons. Tho steady
diminution Of the stocks Of copper in
this country has led mine owners to
prepare for resumption Of production.
and nearly half the normal force em-
ployed In the Michigan copper coun-
try now fs at work preparing the
properties for active operation.
Automobile manufacturers are add.
ing to their pay rolls as q move to-
ward capacity production; and tire
companies arc following similar tao
tics TO keep pace with demand.