Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-20
Washington Ticker
BY CLINTON COFFIN.
Associated Press Financial Writer.

Hasty national survey of the business
situation facing the food canning in
duStry, undertaken since the stock mar
ket collapse of recent weeks, has dis
closed complete absence of cancellation
of orders and considerable evidence OF
expanding demand. The contrast be-
tween conditions disclosed today and
those that were precipitated in 1921,
after the previous great market break
Is both matter of wonder and salts
faction to the people most concerned.
"On the Pacific Coast, where the
largest fruit and fish canning enter
priSeS are coming to the close of sea-
Sonal operations, we found buyers look
ing for opportunities to pick up stock, +"
explained F. E. Gorrell, secretary of
the National Gamers Association. "I
couldn't locate a single cancellation,
and two or three of the larger concerns
are showing week by week this month
substantial percentage gains over the
1928 business during the same period.
Jim Dole. head of the greatest Hawai-
ian pineapple enterprise, told me the
same thing. The demand for salmon
and sardines has remained undisturbed
Coming back East, the same state
OF affairs has been found. Those IF
us who went through the experience
of 1921 were little hard to convince,
SSSCsd AoC N4-SAA StOCA PRIZES DUKE II1Sl
buying OF canned goods not only STOP
ped, but shipments, started back to
plants, and orders on the books were
Withdrawn en- maSSe. But this wear.
though We have a Government request
TO estimate the extent of cancellations.
we can't do it, for there aren't any
In our industry.
MY only explanation of the findings
is Chat the country has been witnessing
what might be called a paper panic,
an affair confined largely to stocks,
which hasn't much connection with the
essential business of the country.
=, Because some of the symptoms are
the same as those which appeared in
1921 and 1923 people are naturally
moved to concern. But our experience
ana our immediate investigation in our
own industry makes me feel certain that
Inc national economic structure, so diff
terently based today from what it was
a few years back, is pretty nearly I'M
touched. I think it will be found that
our 1ndustry's condition is matched by
similar ones in most of the staple lines
of production.
between 1929 and 1921 that showed up
In the study has to do with credit.
canning Is normally done on a good
zeal OF borrowed money. perhaps as
much as 100000, 900 being absorbed at
the peak of the packing operations, to
carry the stock. In 1921 that sort of
commercial credit for a period became
unobtalnable, or obtainable only at ruin
Gus cost. This year we haven't a single
report of trouble. I repeat, what the
country has come through is a paper
panic and 1t will be almost forgotten
pretty soon."
President Hoover's railroad callers
yesterday. among whom were included
several OF the foremost transportation
executives of the country. mostly STOP
ped In Washington between trains that
took them on to Chicago for the annual
meeting OF the American Railway Asso-
citation. The regular session of that
body Will bring together representatives
OF nearly all the greater rail carriers
IN the country, and are expected to
formulate general statement of what
capital expenditures the lines will I'M
dertake in 1880. The Presidents pur-
pose as conveyed to them, it is under
stood, is to have the country given re-
assurance, whether such reinsurance
Is necessary or not, that business stop
page is not in contemplation, and that
carriers will spend at least their regular
budgets on bettermentS and improve
mentS.