Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-06
FOOD MERGER TALK
GRIPS ATTENTION
Combines Partly Due to ST.
fort to Avoid Higher Price.
Business Resume.
BY j. {. ROII.E.


special Dispatch To Inc star.
NEW YORK. February 6.-The
business atmosphere is filled today
with rumors and combinations Of
mergers and consultations. In these
the joining Of food production con
Germs assumes first place largely be-
cause it directly affects q larger por-
ton of the population This trend
toward consultations is not an in
dication of weakness i'll the CONNER
cial and manufacturing structure. II
is a notable fact that in most cases
the concerns joined or considering
amalgamation are those whose earn
ing reports are good.
The mergers reflect customer resist
anCe to higher prices. Business men
today are not inclined TO kill the goose
that lays golden eggs and are avoid
ing a check to buying such as IN
creased prices would entail by increas-
ing production and decrea sing costs
Ford Denies Merger Plan.
one rumor of big steel concern
involving the Ford Motor Co. and
the American Rolling Mills. Ioungs-
town Sheet and Tube. Trunbull steer
and other Ohio concerns was finally
disposed of when the great auto
mobile manufacturer emphaticaily
Utnlpu lilai his COMPANY H'S''' go
sidering any merger with any com
panv. 1t is probable that the merger
of some of the Ohio concerns VIII
take place eventually. as was fore
cast in these columns last Autumn.
In the meantime, preparations Tor
increased output in the Pittsburgh
district reflects remarkable commence
in business conditions throughout
1926. although actual present pro
duction has fallen TO about so per
cent of capacity.
Auto Efficiency Grows.
The efficiency of the Ford forces
has shown an improvement lately, as
is usually the case when the Ford 20
laws off some of its workers. IhoSe
remaining instinctively speed up. II
is claimed. TO obviate further cuts
A. r. Clancy. president OF the OAK
land Motor Car Co, SAD To-Day tne
outstanding feature of automooiIe
production at present was the polcE
of keeping output on an even keel anu
not overstocking dealers.
1.-The manufactures have their nm
gers on the pulse of retail safes. ne
said. and the market is not likely
to be glutted. Dealers have no more
cars allotted and shipped to them than
they can handle with profit.
The steel and automobile trend was
thoroughly indicated in Cleveland.
where the level Of employment this
week was higher than since May.
1928 The tire price cuts announced
by two firms have been resented by
some manufacturers who feel the
price of crude rubber has not suffi-
GENTLY stabilized around present levels
tn warrant them However, 1t Is
likely all markets will follow the re-
auctions.
The situation of crude oil bettered
materially during: the week owing to
reduction of stocks and the gasoline
position benefited to Il lesser degree.
The demand for coke continued strong,
and bituminous production is we'll
maintained.
Possibilities of labor disputes in the
building trades have instilled a slight
feeling of uncertainty into the con
struction situation in some sections
although the volume of contracts let
this week is we'll above that of the cor
responding period of last year. The
price movement in building materials
for the moment is slightly downward
Blocked Florida shipments had an eff
feet on lumber prices, but lumber pro
duction is stable.
Non-ferrous metals showed an i'm
proved tone, with some price better
ments in copper, tin and zinc due tC
improved business conditions in Eu
rope. Cuban sugar production today
is 100, 900 tons heavier than at this
time last year.
Copyright. 1eo6D