Evening star., 1923-12-31
BUSINESS LEADERS SEE
PROSPERITY FOR YEAR
Outlook i'm Trade and Industry Held Ausn;-
cious-Particularly With Prospect of
Tax Reduction Ahead.

looks right now as though the coun
try should begin CONSUMING more
petroleum than 1T is producing around
the middle of next summer. If new
production does not upset this esti-
mate, there should be a movement OF
storage oil into consumption the Iat-
ter half Of the year There has been
| a decided lift in sentiment apparent
In the last fortnight, and so far
see no reason to think that this new
! titled"
Sees Banner Year.
Nineteen twenty-four should be p
banner year for the petroleum indus
try" declared II. F. Sinclair, chair
man OF the Sinclair Consolidated Oil
eoIporasiGn; eebt anin. In INT the last two years
! covered or brought to their peak of
production. Any two of these fields.
ten years ago, would have demora-
llzed the industry. Naturally. produc-
tion has exceeded the Immediate de-
mand, but the tide began to turn last
| summer and consumption should soon
exceed production.
Present Price Low.
| The American public should realize
I that the present price of petroleum
products is abnormally low and can
! no1 be permanently maintained. No
industry can be expected to continue
operation at a loss. 1t is an eco-
! romic impossibility. A few companies
may be making profits, but the in
dustry as a whole is losing money.
and has been since 1920. This has
resulted in a seeming benefit to the
consuming public. but in the long
! run the Improbable operation of any
basic Industry cannot be beneficial to
consumers.
"A peculiar aspect of the last two
years of depression has been that
during this period crude oil consump-
| tion has actually increased 33 per
cent. This fact in itself gives ample
assurance that the industry will be
aDle TO climb back to a normal con-
| dition and earn a reasonable profit"
Good Year I'm Motors.
1T is not easy at this time to make
| a forecast very far ahead" declared
Alfred T: Sloan, jr, president of the
| theless 1 cannot see any Fundamental
| reason why 1924 should not be AT
least satisfactory business year, and
l can see many reasons why it ought
| to be an exceedingly good year"
There is nothing in my judgment"
Mr.. Sloan added, that would be more
| constructive than a general recogni-
| tion on the part of both parties of
| reduction. j do not think any other
4 single thing would inspire as much
confidence or do as much to stabilize
business in this country, and it would
surely rebound to- the prosperity of
| all classes.
Il do not think European conditions
| are going to have great deal of in
nuence: OF course it is hoped that
!f Ihe situation will be cleared up and.
If 1t does, it is bound to have a good
effect on sentiment in this country.
My own impression regarding that
situation. as evidenced by yearly
Visits SINCE the war. is that irrespec-
tive of the financial status of the
various governments, the econsmic
position of the individual is con-
tinually improving, and as long as
| tnat continues satisfactory result
is sure to work out sooner or later
| Taking it all in all, 1 am optimistIc
as 20 the outlook for 1924, but believe
| that caution should be exercised and
especially large enterprises should
watch their position carefully. Prob
ably that pertains at all times, but
believe it especially applies to the
forthcoming year"
Wants Tax Reduction,
Prosperity for 1924 is assured if
Secretary Melons tax reduction pro
! gram is adopted, in the opinion or
John w. PrentIss, president of the
finvestment bankers Association of
America
Secretary Melons plan for the
reduction of taxes" Mr. Prentiss said.
RS one of the most progressive and
sensible things that the business
interests of the country have had
before them for years The plan is
beneficial to all. injurious to none
1t VIII direct flow of capital from
cead investments to live industry. 1T
is an insurance against unemploy-
ment- 1t will bring greater pros
perity to the farmer to the laborer
to the railroad man, to the doctor
ana to the banker. In short, it will
help us ALL
Expressing the opinion that "the
railroads have adjusted themselves
fairly well to live under the Trans
portation Act" Julius Kruttschnitt,
chairman of the executive committee
of the Southern Pacific Railroad, de-
clared that 'if by mischievous tink-
ering with it the politicians do not
destroy the progress already made
and do not enact other laws requir-
ing new adjustments by the rail-
roads, we believe that the end of the
railroad problem will have been seen
before the end of 1924"
Prospects for Crops.
"While It is early to make estimates
on the crops Of 1924, many OF which
are CONTINGENT on conditions that
may prevail until actual harvest"
Mr. Kruttschnitt added. Eve believe
that conditions are now generally
favorable and good crons can reason
ably be expected in 1924. Demand
will of course. control prices. The
Erans tSst poWer OF the nations In
markets is limited by existing con-
ditions, but unless they get very
much worse our formers may hope
for prices substantially as now pre-
vail.
Consequently. business should be
good and in satisfactory volume"
Mr. Kruttschnitt said also that
railroads are in a position to render
better service next year because their.
equiDment and property is in better
condition. that the relations between
| employees and employers are better
than for many years. and that the
| relations of the railroads to the pub
lie ARE more harmonious and CO.
! operative than they have ever been"
The year 1923 was an exceedingly
interesting period in the cooper
Charles Hayden. of Hayden, Stone &
Co, and an officer and director IN
many of the large copper companies
This condition resulted. Mr.. Hayden
said. from the fact that while pro-
duction exceeded the normal pre-
war OUTPUT, the unusually heavy
consumption by American manu-
facturers, due largely to the enor-
nous business in the electrical and
| greatly reduced foreign consumption
resulting from the unsettled condi-
tions in Europe.
Prospects Abroad
| "It is hardly to be expected." Mr..
HAYDEN continued. "that there will he
| sufficient settlement of European af-
| fairs to warrant the resumption of any
| great increase in foreign buving dur
ing the early part of 1924. but I am
| firmly Of the belief that American
| production is not likely to increase.