Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-19
FIRMS SHOW GAINS
IN CASH HOLDINGS
Recent Reports for Year of
1923 Reveal Strong Finan-
ciaI Position.
Special Dispatch to The Star.


NEW YORK. March 19.-One Of the
outstanding features of the 1928 report
of the United States Steel Corporation
was the size of its items of cash and
security holdings shown. Together these
aggregated 1853, 900 900. compared with
about $277 100000 at the end of 1927.
They were within S100.000.000 of the
total bonded Indebtedness g ss1c COM
pany.
The Bethlehem Steel Corporation for
the same period also made strong ex-
hibit in the way of liquid assets.
On December 81. 1923, it had cash OF
$28,470,936, compared with $16,721 ,596
at the end of 1927 Government and
miscellaneous securities were somewhat
below those of the year previous. Even
so, they exceeded $29,000,000.
Independent of Money Market.
An analysis of many Of the state
ments for 1928 by industrial and pub
lie utility companies emphasizes their
independence of the money market,
which they have attained in the past
year, as we'll as the dependence of the
money market on them to supply funds
to carry on the current speculation in
stocks. Some illustrations of this fact
are given below:
The Fleischmann Co. had on Decem-
Der 81, 1923, cash and call loans of
nearly S14.000000, or about twice as
much as the year previous. 1t also had
United States Treasury certificates,
Liberty bonds, State and municipal
bonds and Dominion of Canada issues
aggregating over $15,000000, against
SIT, 100000 IL months earlier. Its cur
rent assets were more than twice the
par value of its stocks.
The Borden Co. on December 81,
1923, had cash and marketable Sc
curities of nearly $24 100000, as against
$4,000, 900 the year before. Goodyear
Rubber & Tire carried an item in its
balance sheet of $16,100000 in call
loans, with additional cash of $11 $751;
900, both considerably larger than in
1927. The Union Carbide & Carbon
Corporation showed cash of S17,500.000
and investments of $11 ,522, 900, against
the combined items the year previous of
slightly over $20,000,000. The American
Smelling & Refining Co. had call loans
out Of $5,600,000, but its United States
and Canadian government securities
were down about 100000.
The recent report of the American
Telephone & Telegraph Co. for 1928
disclosed another strong financial posi-
ton. This concern does not lend in the
call money market, but makes tempo
rary investments which may be i'm
mediately transferred into cash. These
on December 81. 1928. were nearly
1923, coo 900. as against $50, 463, 1854 at
the end of December, 1927, with a sup
Elementary item of cash amounting to
$40, 695, 267. Consequently, the telephone
company had available at the end Of
1928 $65,000,000 more for its require
ments than in 1927. A comparatively
small corporation, the Corn Products
Refining Co., showed that it was carry
ing cash. demand and time loans and
marketable securities in its balance
sheet of nearly s40,000,000, or $15.0o0,-
900 more than the entire issue of its
preferred stock.
Contrast to 1920.
Other companies whose reports for
1928 are about due will make similar
exhibits of great financial strength. This
is all in contrast with conditions dur
ing the highly speculative period Of
1920 and 1921, when corporations had
their resources largely tied up in un-
marketable commodities.