The Washington times., 1927-12-31
VISIONS
BIG YEAR
By RICHARD HATTON

OF the year interest In the market
and financial outlook as 1927 comes
to q close. The following inter.
view obtained from George 3. Chip,
| man. resident partner Of Hartman
and Company. members Of the New
| York Stock Exchange, contains 8
concise general summary Of the
| situation from the standpoint OF an
! expert analyst and is q straight
unbiased exposition Of conditions
and possibilities well worthy Of se.
rious consideration. Mr.. Chipnan
said yesterday:
THE security market during the
year 1927 has enjoyed phenomenal
rise, and the principal argument IN
favor OF the advance has been low
interest rates and a plethora Of in-
vestment funds. During the year
general business has not been salts.
factory, and we have now reached
the level Of prices at which it is
well to consider that IL we are to
have q good business year, the
money which has been turned into
the stock market for It's activity
win have to be withdrawn to be
used In business, and this win have
tendency to raise the level Of
money and lessen the supply. This
viii withdraw one OF the arguments
against further advances In security
prices.
Much Increased Capital
SHOULD business not improve as
/. 10 hoped it win, then the question
will be whether. many Of the cor.
porations that have increased their
capital during the year 1927 or be.
fore, viii be able to maintain their
present dividends. This, too. will
have an effect Of bringing about a
decline from the present level Of
prices. A matter Of fact, We prob.
ably viii zee towards the end Of 1928
some reduction in dividends that are
now being paid.
There 10 no particular. reason to
look FOR drastic decline in the early
part Of 1898, except what declines
may take place due to q technical
condition that may exist within the
market. But as the latter part OF
1928 approaches. and we approach
then the election Of President, and
the uncertainties that this makes,
we may look for lower prices.
"a great deal has been said about
the advantages of installment buy
ing, but there has never been q true
test of this buying. Since this
method Of purchasing has become
general we have had no decline or
dullness In business conditions. Take
for an example the condition that
existed In tbs coal fields during the
last anthracite strike, which lasted
only for short period. There was
a total collapse on the part Of the
merchants Going business on time
purchases in the anthracite fields.
Automobile companies that are
selling the major part Of their prod
uctS on time probably viii suffer
during 1928 IL business does not i'm.
prove.
Neither do / picture the rain.
road situation as one which should
be viewed with optimism; certainly
not until the present proposed
cancellations are allowed or dis
allowed. and until the Supreme
Court has passed on the question
involved in the o'Fallon case, which
il the question OF the valuation
Of the railroads"
The Savings Banks
The directors Of the u. 8. Sav.
ings Bank have declared their
regular quarterly dividend Of ~
per cent. payable December 81,
1927. The U. s. Savings Bank has
a capital Of 100000. q surplus Of
$150,000. undivided profits of about
100000. and total resources OF
nearly $3.000.000.
THE board Of directors Of the
Allied Utilities Corporation has de,
clared q semiannual dividend Of 3is
per cent, payable January /, 1928,
on the 100000 Of preferred stock
outstanding. This company owns
and operates number Of elec.
tric, gas and water companies and
reports satisfactory earnings during
the past year"
"Tho board OF directors Of the
John Fl. wilkins Company. coffee
merchants. on Wednesday, Decem'
ber 28, declared the regular semi.
annual dividend Of 4 per cent on
the outstanding preferred stock, and
a dividend Of $1.50 per share on
the outstanding common stock. Both
dividends payable January 10, 1928,
to stockholders OF record Decem.
ber 80. 1927"
Outside plant facilities and cen.
tral office equipment added to
the system, of the Chesapeake and
Potomac Telephone Company in
Washington during the IL months
ending November 80. amounted to
$2:745,S6S, according to q state.
ment Just filed with the Public
Utilities Commission,