Connecticut western news., 1922-06-01
ROGER w. BABSON ON
 THE STOCK MARKET
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 and Lackawanna companies is about i $200,000,000 The combined capital ization of Midvale, ,,,3 with Republic, Youngstown, and other companies rIoposed to merge is7about $350.- CoQ,O00. Thus. If the entireu consoli- dat;tn goes th1 it would mean a capitalization of about S550, 100000. l. is prepostero7s B to 3ciainh that this is an equal revival ofo the United Stect Corporation which has etcday q clear investment of about one l. lion and half dollars. . 4.
 When the ear2iays arc consldc: ed j similar condit.ni will he found/ For instance, for an average period of years the Bethlehem and Lacka- waLna show grr.ss earnings of about $3FO,00O,O0O white the Independents mentioned above show gross earnings of about $45O,0OO,000. Thus the total gross earnings of the combined companies would be not exceeding $500, O,OOO,OO0, including Betehlehem, Lackawanna, Midvale, and the rest. For the same period of time the Uni ted States Steel Corporation did a gross business of 50,000,000.
 "Considering the poor condition of the.steel business at the present time, it rather looks as if a concerted effort was being made by certain parties Eo get out of the stock mar ket or at least to get out of steel and into copper or something else.N Some one asked the other day for my opin- ion regarding a certain New Eng land railroad stock and my reply was, "Show me the stock books and will give you an answer If the widows and children still have their holdings the low point has not yet been reached; but ifsthe small investors have been shaken out, then the stock is due for a good rise", The sarAe principle applies to American Sugar and various other Investments. Ap- parently an expedition has been or ganized to get the public out of cer- tain stocks-such as rails-and into certain other stocks such as the poorer steels. If the public is wise, it will stand pat or else it will do exactly the opposite from what cer- tain big operators are trying to make it do. Be on the lookout for squalls in the stock marked during the next , few weeks. Remember when you see real estate man having house painted, that he usually is preparing to sell it.
 tThe Babsonchart tells the real story as to business conditions. This now stands at 163o below normal compared with a low of 23%o in March 1921. The Babsonchart shows gradual improvement as certain stock market operators would have us be- lieve really existS Study the true fundamental figures and close your ears to rumors."
 The Truth About Retail Prices
 Disclosing the general trend of the business revival, Roger W. Bab- son, the statistician today pointed out one of. the factors that is holding up prices and living costs.
 8"Wherever I have been on my trip these past three months,"y said MT. Babson, "complaints have come from all sources of the high retail prices. NOW, there IS no gam saying the fact that retail prices are out of line with wholesale prices. There has not been a reduction in retail prices to cores pond with the reduction in wholesale prices A part of this difference is perfectly natural as movements in retail prices must of necessity lag from six months to a year behind changes in wholesale prices. But even allowing for this natural lag, 'statis= tics indicate that the retailer has not yet made the readjustment which has been made by the wholesaler. This is m established fact and it is useless for retailers to claim otherwise. Whether retailers are to blame for not making this readjustment is, however, debatable question. My !, investigations thus far lead me to believe the retailer is-not to blame