Winslow daily mail., 1926-12-30

/ Hot COME Ultll the country enters
q period Of general depression. The
decline in commodity prices is
feared largely because of it's ad-
verse effect on purchasing power
particularly in the agricultural re-
gions.
Many Favorable Factors
Favorable factors in the situation
as the year draws to q close are:
! An abundance Of credit at relatively
low rates; comparatively low in
ventories, resulting largely from
! so-called "hand-to-mouth" buying
i and quick and efficient transporta-
/ ton, increasing industrial effici-
ency,. especially through the more
general use of labor and time say
ing devices; absence Of any serious
labor disputes and a generally higF
rate Of employment, and gradual
economic rehabilitation abroad.
On the other side of the ledger
are: A slowing down in steel pro.
duction and building construction
/ the low price of cotton; increasing
| foreign competition; the relatively
low margin of profit in many in
dustries, and the large volume OF
| brokers' loans.
Steel shares, as group, failed
to make much progress although
United States Steel common sold
at the highest price on record in
reflection of an unusually prosper
i GUS peace-time year, despite the
4 lower level OF pig iron and stee
prices. Despite repeated officia
denials of rumors that the corpor'
alton. was planning to distribute
i part Of its huge undivided surplus
to stockholders, Wall Street gener
ally locks for some action alOns
this line next year, barring an un
i fexpected sharp recession in gen
eral business. The common stool
was definitely placed on a $7 an
nual basis during the year. Diyi
dends on the common stock of th'
Republic Iron & Steel Compan!
were restored, after a lapse of fiv'
years, and similar action is ex
| pected to be taken shortly by tn,
| Bethlehem Steel Corporation.
Oil Prosperity Effect Lost
Oil companies enjoyed unusua
prosperity but this was not gen
orally reflected in the petroleum
stocks. Several false rallies il
this group during the past few
years, coupled with fears that rec
ord breaking crude production thi
year, would unsettle the prize
structure and adversely affect mex
years earnings, led to rather heav.
liquidation by tired and disap
pointed holders on all rallies. Re
tirement of the preferreA stock, Q
the Standard Oil Eon9pahy. lof .Nep
Jersey and the transfer of the com
mon stock of the Standard Oi
Company of New York. from thu
Curb market to the "big board" at
tracted widespread attention.
Establishment OF new high traf
fic and earnings records by Class
l railroads was mirrored in thu
general advance in stock prices
and in increased dividends, th'
raising OF the rate of Pennsylvania
/ Railroad common being a note
worthy feature. Rejection of th'
original "Nickel Plate" mergel
plan by the Interstate Commerc,
/ Commission and the difficulties en-
countered in the preparation of ;
revised plan, together with a gen
eral wage increase to eastern
trainmen towards the end of tn,
year. tended to keep speculative
enthusiasm for the rails in check
Railroad equipment stock
scared to record high levels, du
to the heavy purchase of new
equipment by the principal car
riers and the more general use o
new automatic train control anC
signal devices. Textile and pack
ing shares lost ground in reflection
of poor trade conditions, but the!
showed signs of marked improve
ment as the year drew to a close
Record chain store ant
mail order sales brought highc
prices for stocks of those com
panies. Amusement, chemical ant
food shares lacked a definite trend
Although the production AM
sale of automobiles broke all rec
ords. NOT all automobile Stock
shared in this prosperity. Th'
General Motors Corporation's cara
ings were enormous, exceeding
those of the United States Stee
Corporation for the first min
months of the year, and they wer,
literally shared with stockholders
who received generous cash diVi
dends, in addition to so per cen
| stock dividend. Stocks of many o