The Washington times., 1930-12-05
Foods Bewilder

discrepancy in ratio Of selling
price to earnings Of the various
food companies. General Foods
with net estimated at $3.50 Tor
the year, is on a 13 for ratio;
National Dairy, with net running
better than 81 a share, is selling
ct 10 times earnings.
Gold Dust, am told, will net
about $3.50 share this year.
bringing it down to less than 10
times earnings. Standard Brands
with net put at slightly above
the new $1.20 dividend rate, Is
one Of the highest Of the lot on
this basis, with better than a 16
to / ratio. Beatrice Creamery
reported over So a share for the
first six months yet is only selling
In the lower 70s. Proctor and
Gamble. usually put in the food
class, will earn about $3.50 a
share for the year, and Is cur
fently selling at about 18 times
earnings. All these companies
have good ratings and their in
dustry is proving itself compare.
lively depression proof. Thus it
Is no wonder investors get head.
aches at times wondering about
the why's and wherefores Of
things.
Rumors of food mergers are
being revived. One Is linking ur
Gold Dust and Ward Baking with
Standard Brands. Another puts
Gold Dust with General Foods,
Interests in the know sum up the
situation aptly when they say
that the difficulties Of underwrit-
ing any mergers Of this type at
present is sufficient answer on
their probabilities.
Telephone Is Hit
The bears got to work in Tele-
phone again yesterday and put 1t
down over three points. Selling
was said to have come from the
same crowd that has been active
for lower prices all year. Stories
that Telephone will meet good de-
mand, at 180, where the return
viii be 5 per cent, do not seem
linked with the yield alone for
there will undoubtedly be a lot
Of short covering at that level.
Radio continues under pressure.
Questions on who is selling the
stock bring the response, "every-
body" Prospects that Christmas
business will make up the deficit
Of the first nine months are said
to be less promising. The ire
ferred B, which carries a c,mu-
lative S. dividend, broke to a new
low at 339s, at which the yield
Is about is per cent.
Uncle Sam Helps
Suggestion Of Secretary Mellon
that interest rates on money
railroads owe the Government be
reduced will benefit ii carriers.
These and the amounts they owe
are: Boston and Maine, $13,943,-
600: Chicago Western Indiana,
1885,, 900; Georgia and Florida
Gin receivership), 100000: Min
neapolis and st. Louis, $2.632,-
600; Missouri and North Arkan-
sas, $3,500,000: Salt Lake and
Utah, $872,0 900; Seaboard Air
Line, $14, ,443,887; Ssaboard Bay
Line, $1,845,000; Waterloo Cedar
Falls and Northern, SLIGO, 600;
st. Paul, $3,207 900, and .Des
Moines and Central Iowa, $685.
500.
It is believed that a new rate
Of 4 or AZ percent against the
present 6 per cent will be estab-
lished. The Seaboard, which is
sup against raising new money to
continue its existence, will be
the biggest beneficiary.
The sharp break In Johns Man
vile to within striking distance of
z its low reflects as much as any
thing the uncertain outlook for
the building industry over the next
six months. The company is ex.
spected to report about 81 a share
for the year, as against $500 last
year.
Northern Looks Cheap
a An oId-tinnH1. dnScrihas tho ni11.