Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-23
AVIATION STOCKS
RISE ON PROSPECTS
Few Companies Engaged in
Industry Have Paid
Any Dividends.
by JOHN r. SINCLAIR.

NEW YORK, June 22.-"There is
more romance than finance in many
recent mergers" one Of the shrewdest
of Chicago's business men told me re-
Gently.
This man, very successful, was re-
ferring to the fact that the aviation In
dustry. which has had so much atten-
ton in the press in recent months, has
| to date paid virtually no dividends on
the hundreds Of millions OF stock in the
hands OF the public. In fact, think
only one cash dividend Of per cent
has been declared.
While 1t Is true that some Of the
larger organizations have been blowing
back earnings into the business, we
have had no earnings to pillow back,
But they, too. have been riding the
| crest OF prosperity and romance"
There Is distinct disadvantage in
aviation stocks continuing to rise" the
Chicagoan said, "for this increase in
stock prices Is not based on earnings
but on what people think earnings may
be in the future. This, Of course, Is o
distinct gamble. Many Of those most
vitality interested In aviation are the
| most concerned with the stock prices
today.
They want aviation stocks to be well
| considered, but they see that distinct
reaction Is coming II prices are boosted
far beyond reasonable earning power,
and many Of them today are in Just
such . situation"
Street car transportation has not
kept up with the modern procession
Severe competition from the private au-
tomobue continues and the downward
trend Of street car traffic noticeable for
the last decade Is still evident,
The American Electric Railway Asso-
citation reports decline Of about / Der
cent IN the aggregate Of passengers car
rted the first four months Of 1929 as
compared with the corresponding period
last year.
Increasing the fare does not meet
the problem, though the industry has
been successful in raising the average
cash fare from 8.1274 cents at the be-
ginning Of 1928 to 8.33ls cents last
April. This increase has not been
enough to offset declining trafic, for
the gross revenues have shown q fur
ther falling on.
Many Of the street car systems have
run down at the heel. Their cars are
dilapidated and worn out. This year il
Is expected that about $229, 500, 600 will
be expended, much Of 1t to purchase
new cars, but due to the low credit
standing OF many Of the companies the
cost OF procuring money in the open
market has become very high.
The bus has come In and Ii substi.
tuttng for improbable trolley lines In
many places. This development Is ike
~ TO continue. Bus routes now cover
more than $4,000 miles in the United
states and are carrying almost q BIZ
lion passengers . year.
New York State recently passed an
act allowing the substitution Of or sup
Elementary bus service without any
cnange IN franchise. The public seems
to approve the modern bus.
Taken rs whole, the outlook for the
street car company in most American
cities - not good.
The Dead Sea is to be made alive
A concession has been granted the Pal.
estine Economic Corporation BY TIA,
British government to exploit the vas
mineral resources Of this famous sea
The syndicate IS headed by MAJ r a
Tulloch, q British engineer, who sur
veyed the entire region IL years 40
oy order OF Gen. Allenby.
Inc estimated value Of these re,
sources Is beyond the most fantasti,
Of dreams. The figure has been out a,
high Is 81 ,200. 900 900 900. Three year,
ago the British government, after sew.
eral years study, published figures K
snow the value Of the minerals Ia tn,
Dead Sea. They include 2,o0o. 200, DOT
tons OF potassium chloride, $4,000, 600,
900 tons Of sodium chloride (ssit1 ant
large amounts Of calcium and mag,
nesium chloride and magnesium bro.
mide.
But this 10 not all. DR.. George,
Claude, famous inventor OF the Claudl
Neon light, estimates that the gold ir
tnls sea. recovered, would be worth
| $50, 000, 000, 900.
That is five times the value of tn,
gold now owned by all the banks Of
Why were such riches allowed to .,
undeveloped up to this timer The rea.
son Is that up to the war the Dead Ses
was the private property Of the Sultan.
OF Turkey, who always opposed the in.
PRODUCTION Of modern methods and in.
dustries there.
The sea Is supposed to have beer
formed by . fracture caused after thu
Eocene period. when an earthquake
movement raised the whole region out
or the seas. In later era the fracture
was filled with water. making \ AZ
zoo miles long. But the lake gradually
became smaller through the centuries
and now 1t IS only a. miles long. It Il
situated 1900 feet below the level OF
the Mediterranean Sea.
Working conditions therefore in the
industrial development must have the
below-sea-level factor In mind in max
ing plans.
The Diesel engine may yet make
travelling by air as cheap as travelling
by rail.
It's REPRESENTATION idea makes 1t
possible to use cheap oil fuel instead OF
gasoline. This principle not only elini-
mates fire risk. but does away with the
complex system Of current generators
coils. ETC., the hane Of the air pilot.
But the weight OF the Diesel engine
makes it impraeticable for the air al
present. The latest airplane engine
weighs less than three pounds Der
horsepower. The Diesel, under the
same comparison, weighs SO pounds.
The best engineers Of the world are
working now to reduce this weight
When they do they viii revolutionise
airplane cost.
(copyrisht. 1899, BY North American News
paper Alliance0
SOUTH LEADING NATION