Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-28
Clay Makes Forecast for 1880.

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Clay Makes Forecast for 1880.
In his address before the Washington
Bond Club at the Carlton Hotel yes
terday afternoon, Paul Clay, former
economist with Moody's Financial Serv-
ice. discussed the outlook in the f1nan-
cial world for 1890. He is now vice
president of the United States Shares
Corporation.
1.-THE rapid growth of American in
dustries is the best assurance that we
shall quickly outgrow the present busi-
ness depression" said the speaker.
American industries grow more rapid
ly than those of other nations and this
tends continually to enhance invest
ment values.
I'VE have Just experienced in the
short space of so days as great a bear
movement as usually occurs in a couple
of years. Its violence was due to a
panic among the lenders on CALL How
ever, American experience has always
been that financial and trade disasters
are quickly outgrown. Owing to this
unusual power of expansion, our ma
tional wealth has increased from
$1,000, 100000 in 1850 to about $780,
000.000,000 at the present time.
Besides this, the real foundations Of
prosperity are solid, meaning that the
causes of this marvellous growth of the
past are still in force. In fact, re-
viewing the serious business depreSsions
of the past, none of the causes of those
serious depressions are now present
The Nations financial and industrial
machinery is unhurt and prompt re-
coyery Is assured.
6; Finds Value Basis Restored.
Furthermore. the defiation of
brokers loans means that we are going
right back into a plethora of capital
like that of 1924 to 1927. Interest rates
and rediscount rates seem bound to
decline much further and the bond
market will doubtless be stimulated by
the cheapness of capital
Risks have been eliminated even
from stock investments since these are
no longer selling way above their true
values. On the 18th of November the
New York stock market as a whole was
selling pretty close to a z per cent
basis.
'.These low prices afford one of the
greatest bargain days in American his
tory. During the past century there
have been only Is previous occasions
when security prices were so thoroughly
debated as they are now"
Mr.. Clay praised the few invest
nlef1t trusts which made good during
this debacle. Service to the investing
public, he said, must be the basis upon
which investment trust growth is
founded, and this service consists
mainly in knowing when to take profits
and when to purchase. Mere diVersifi-
cation Is not sufficient. since the in
weston can attain that for himself. The
best managed investment trusts took
profits so freely before the smash that
their shares declined only half as much
as did the general market, he said in
conclusion.
wilkins Coffee Dividends Voted.
President John H. wilkins announced
today that the directors of the John
H. wilkins Co., coffee merchants, yes
teruay declared dividend of $3.50 per
snare on the outstanding common stock
and the regular semi-annual dividend
of 81 per share on the outstanding pre-
ferred stock. Both dividends payable
January 10, 1880, TO shareholders as
of record December 81.
Murphy on American Ice Board.
The American Ice Co. has declared
an extra dividend of 81 and regular
quarterly dividend of IS cents on COM
mon and regular quarterly dividend of
81. so on preferred, all payable January
Fl, to stock of record January IS.
Three months ago the dividend rate
SO annually from 50.
Col. Grayson M. P. Murphy was
elected member Of the executive COM
mittee
November profit of American Ice Co.
was S250.045 after interest, but before
depreciation and Federal taxes, COM
pared with S202.5 23 in November, 1928.
For II months ended November 80.
1929, profit before depreciation and
Federal taxes was S5,528475, against
S5,256l60 in corresponding IL months
OF preceding year.
Pennsy's November Net on.
The gross operating revenue of the
Pennsylvania Railroad for November was
S53.768073, decrease from November
last year. Of S3,244, 961. The gross oper-
ating income for the ii months end
ing November 80, 1929, was S633.14O.255
This represents an increase of S35 Asa, =
sos over the first II months of 1923.
The net revenue for November was
$l1,9454 4S, a decrease of S3.527, 686
from November 1929 The net revenue
$3.50 ,593, an increase of S21 ,696, :
S94 over the corresponding period in
1923.
The net income for November after
deduction Of tax accruals, uncollectible
revenues. joint facility rents etc, was
S7,06l ,480, a decrease of S4,133.253 from
November, 1928. The net income for
the II months period was S126.820. 1893
an increase of $17.564,3l0 over the first
IL months in 1928.