Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-28

volume of insurance placed during the
year was perhaps under that Of 1929.
A variety of causes contributed TO this.
In 1929 many holders Of policies bor-
rowed extensively on their policies, TAX
ing out new insurance to compensate
should they be unable to repay those
loans BY the end of this year that
trend had passed and there was ten
dency toward the writing of as many
policies as in 1929, but for smaller
amounts
Fire insurance undoubtedly was af-
fected by the decline in building during
the year. The insurance companies,
however, continue to be one OF the
main stabiliZing factors in the finances
of the country. Regulated and managed
as they are, they provided background
of solid, stable finance which was Of
inestimable value to the business world
in general. Now that the bottom of
the depression has been passed, 1t is
anticipated that the investments of the
life insurance and fire insurance COM
panies in the next six months will rise
materially and probably will approach
close to billion dollars.
The building year was not satisfac-
tory one. Construction was supported
mainly by the public utility companies,
which spent huge sums in the develop
ment of power projects, power houses,
SubStations and other equipment, and
by State, county and Federal public
works Despite all the stimulus given
to it, the constructing of buildings could
not seem to gain momentum. Among
the public works the building of roads
was the main standby.
However, President Hoover's an
nouncement that more than $500, 0O0, 600
will be spent in the next six months
for public works Is sustaining factor
which should help to reassure property
owners and construction men.
Rents were fairly well maintained for
business structures, but there was a dis
tinct falling off during the annual NOV
ing period in the number of families
which changed habitations. Usually
these changes are toward higher priced
quarters, but this was not the case this
year.
Farm lands dropped in value, and
this brought some of the country banks
into straitened circumstances. 1t was
responsible to some extent for failures
in the Middle West and South in the
from bad banking practice In the past
rather than from depression in the
present.
Railroad Efficiency.
The railroads of the country operated
more efficiently than in any other previ-
GUS 12-month period. There was an
increase in the tonnage loaded in each
car and an increase in the miles trav-
eled by each car. Despite this fact, the
carriers of the country suffered a Sc
we're setback. For the Class l steam
roads the drop during the first 10
months of the year in operating reVe-
nueS amounted to nearly Is per cent.
Against this was curtailment OF only
SO per cent in expenses and taxes. Net
railway income available for interest
and dividends was 100000 less
than for the corresponding period of
1929 This represented decline OF
nearly SO per cent.
Not only did the railroads suffer from
decline in revenue, but they are men
aced as the Interstate Commerce Com
mission admits, by competition from
motor transport, inland waterways and
pipe lines. Car loadings showed no ap-
preciable increase as the year drew to
a close. Despite this fact, the railroads
made tremendous expenditures for new
equipment, betterments and improve
ments There was a distinct trend to-
ward the supplying of more comfortable
and more luxurious passenger coaches
| in an effort to win travellers from the
buses and other means of transport.
The announcement of the plan for
consolidation Of the railroads by the
Interstate Commerce Commission has
so far produced no concrete results.
Violent opposition has been met to the
plan of the commission from the State
governments and from individuals, as
well as from the carriers involved. It
would seem that the best change for
rehabilitation of the steam carriers lies
in consolidation.
President Hoover expressed this In his
message to Congress on December 2.
He declared, however, that additional
| legislation was necessary This is de-
MED by the railroads in general, except
in so far as they say that legislation Is
necessary to enable them to overcome
the opposition Of small minorities. De-
spite all these facts, most Of the car
| riers Of the country ere in good shape