Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1924-12-28
BUSINESS Sees
PROSPERITY IN
1875, IS REPORT
Settlement of German
Reparation Problem is
Believed Factor in Bet
ter Times
(By The Associated Press.)

ing 1924 is generally summarized as fair
by banking ana industrial leaders. Pros
poets Tor 1925, however, are considered
unusually bright, many business men
echoing the sentiments expressed by
President Coolidge in his annual mes
sage to congress that under the as
surance of a reasonable system of taxa
ton, there is every prospect for an era
of prosperity of unprecedented proper
tions."
The prediction of further business pros
perity is based on several we'll known
facts. Settlement Of the German repara-
tons problem through the adoption of
the Dawes plan is widely believed to
have removed the greatest obstacle TO
the economic recovery of Europe. upon
whose prosperity we are more or less de-
pendent, because of our position as a
big creditor nation and an important
participant in international trade.
Foremost among the domestic factors
is the caSinesS of the money market and
the huge sums available for commercial
credit. In addition most stocks Of mer-
chandise are relatively low. railroad
traffic is at record levels, exports are
increasing, the principal European eX-
changes are at par, or heading there,
several important industrial and railroad
mergers are pending. the high prices re
ceived for current crops has brought
prosperity back to the agricultural re-
gions, gasoline consumption is at record
high levels and an ambitious program
of hydro-el"ctric power development is
under way.
Railroads Prosper
Railroads enjoyed one of their best
years in 1924 since their restoration t.
private control. Economies effected
through the cutting down If operating
expenses enabled many systems to in
crease their net income despite reduc-
tions in gross earnings. One OF the
most important development OF the year
was the completion Of plans for the gi-
gantic Nickel Plate merger to include
the gigantic Nickel Plate. Hooking Val
Icy, CheSape axe q Ohio, Pere Marquette
and Erie systems. The Southern Paci-
fic also acquired the FL PaSo & South
western during the year. with consider
able progress made towards other i'm
portant consultations The less Of the
balance of power by the so-calied rad
zeal bloc in the congressional elections
removed thc fear Of adverse legislation
and has enabled the roads to proceed
with important consolidation and de-
v%elopment plans. Inauguration of divi,
dends on the common stocks of the
Southern, st. Louis-San Francisco and
Pere Marquette railways and the re-
,- ~ H.. l IL. D.l..uz r.
Ohio also were among the years i'm
portant railroad developments. Several
other possible dividend developments
are. pending.
Building Sets Record
The steol industry enjoyed a good
first quarter. but the second and third
quarters were poor, untitled orders of
the United States Steel Corporation
falling to the lowest level in 10 years
in July with operations below so per-
cent Of capacity. Business picked up
in the fourth quarter with indications
CT a steady increase into the new year.
The oil industry was again hampered
by the excess production of crude oil
which. combined with the extraction Of
more gasoline through improved crack
ing processes, made it a particularly
poor year for thr refining companies
and the smaller roducers.
New building construction during the
year was estinated by members of the
trade nj $1,000. OOO, 900. a new high rec
cord
Automobile output for the year was
estimated at $500. 900 vehicles, or less
than 10 per cent below the high rec
ord established in the previous year.
Several companies found it necessary
TO cut prices in the last few months Of
the year in order to dispose Of heavy
inventories before starting work on
new models.
Copper prices stiffened towards the
close of the year with indications of an
increased export demand, but the in
dustry was still hampered by the COM
petition afforded by the low-cost pro-
ducing red metal received from Africa.
Public utilities enjoyed one of the
best years in their history, with large
economies effected through several inn