Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-20
AVIATION INDUSTRY
SPREADS RAPIDLY
"Boom" Stage Indicated,
Says Business Review.
Firms More Than 700.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
Every great industry progresses from
the experimental stage, through the
boom stage when little factories spring
up all over the country, into the final
era of consolidation and stable bust
ness development.
In analyzing the aviation situation
this week, the United Business Service
says that while We are obviously still
in the boom" stage in the airplane
industry, the later stage Of consolida-
ton and stability is coming much faster
than most people realize.
Today the foundations are being laid
for the companies that are TO become
the United States Steels," the
"R. c. AS" and the General Motors
of the airplane industry.
With more than 700 companies now
in the field, of which more than $50 are
offering their stock to the public, it
seems obvious that there are going to
be some bitter disappointmentS to the
holders of many of these securities
In selecting a stock for investment
in one of the older industries, the in
weston can study the past records OF
earnings and dividend payments. and
thus obtain fairly accurate picture
Of the enterprise in which he is invest
ing. But in a new industry like avia-
ton, the records Of past performance
mean very little 1t is the opinion OF
the United Business Service, therefore,
that a satisfactory aviation stock must
possess the following features:
"a Strong banking sponsorship.
az Management of demonstrated
ability. =,
49, A capital set-up rejecting will
ingness on the part of the management
to share both control and future posi-
bic profits with the investing pubic:
a. Wide diversification OF activity
within the industry but so well 1nte-
grated as to insure effective and EN-
Gent cooperation among the various
units.
Banking Forms Committee Meets.
The District Bankers Association
standing committee on banking form
held its semi-final meeting before the
annual convention yesterday afternoon
at headquarters in the Becker Building.
There was a large attendance and the
finishing touches were given to several
standardized banking forms which Will
be printed and presented at the con-
vention for the approval OF the assocla-
ton. These forms are the very latest
used in the banking world and are sure
to prove helpful to all Washington
bankers.
As the result of previous work by this
committee, local banks are already
using many new and improved forms.
The committee has rendered unusual
service to the association and this years
report is being awaited with deep In
terest. Chairman Frederick H. Cox
presided at yesterdays session.
Reviews Peoples Drug Stocks.
Standard statistics in its April IL is
sue reviews the securities of Peoples
Drug Store preferred, calls attention to
the fact that the common stock is now
priced at about 16 times its earnings,
notes the rapid growth Of the chain,
and says in part:
"Sales for 1928 were ,342 ,604, an
increase of 39l2 per cent over those OF
1927, and profits amounted to $744,52s,
a gain of more than SO per cent. On
the basis of present capitalization, 25,-
600 preferred and 1872, 625 common
shares. the company earned $4.75 per
common share. The year was enoeo
in a sound financial position, with more
than 81 100000 in cash for future oe-
yelopment purposes. Since the nrSt OF
operation and seven more contracted
for. bringing the total to date to more
than 100.
peoples Drug showed marked I'M
movement in operating efficiency, re-
tanning about 81 cents for stockholders
and surplus out of every dollar safes.
This compares with an operating ratio
of 534 per cent in 1921.
The preferred stock is listed on tne
Washington Stock Exchange ana solo
over the counter in New York. Inc COM
mon is on the Curb. Botn are wioey
held in this city, the home ONCE OF the
company.
Women Heavy Stockholders.
Stockholders of the Pennsylvania
Pailroad Co. numbered 1921 on April
! new high record against 156,308 on
March /. former record, increase 9O3,
and 143,O11 on April 1, 1928, increase
1920. o,.
compares with year ago as !ollowS:
Pennsylvania, 1880 per cent, oeeleaS t
453 per cent; New York, 24.67 per cent.
increase Eli per cent; New England,
ISL per cent increase 0.60 per cent;
foreign, 800 per cent, decrease O.54 per
cent, and scattering, 1928 per cent. IN
crease 236 per cent. Number OF holders
compared as follows: Pennsylvania,
SO .429. decrease 1894: New York, 27,451;
increase 5,744; New England, Fl ,465, IN
crease 3,S4O; foreign, 1895, increase 1856,
and scattering. $3.50, increase 8.l24:
Woman stockholders numbered 79,O1z,
increase 1884, constituting $3.50 per
cent of total; decrease O.55 per cent.
They held, 3,92O.736 shares, increase
52e,089, representing 34.88 per cent OF
outstanding stock, increase O90 per
cent. Their average holding was SO
shares, increase, shares. Corporation
holders on April /, 1929, numbered 1000,
against 1887 year ago; increase. 8O3.
Gold Supply Called Ample.
The allegation of shortage of gold
and hence of danger to the credit
structure does not seem quite lngenu-
ous," according to an article in the cur
rent issue of Barron's Financial Week
~. "If the rate of growth OF credit
and currency released during the past
year were used as a scale, our present
surplus of gold would last until Gabriel
sounded his horn"
Total gold reserves and the ratio to
note and deposit liability, the Barron'3
article points out. fell but little in the
last year. Actually, this Is an under
statement. for the figures ''omit some
SS6U,UOu,VOU Oh goio III cHcuiae.oti "AiSl.
could be withdrawn If needed; and
they omit close to 81 000, 900, 900 OF gold
certificates which might also be with
drawn from circulation. Were all the
monetary gold in the country to be
irnpounded' and a very considerable part
of the gold certificates withdrawn from
circulation, the total gold reserves of
the country would make much more
imposing exhibit than they do now"
Financial District Notes.
Check payments for the week ended
April IS showed decline over the pre-
yious week, but were larger than year
ago. according to the Department OF
Commerce. Business failures were
greater in number than in the previous