Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-26
PUBLIC RETURNING
5. TO STOCK MARKET
Expansion of Business in
Last Two Weeks Indicates
Growth in Traders.
BY JOHN F. SINCLAIR.

By JOHN r. SANCbAlh.
Special Dispatch to The Star.
NEW YORK, March 26.-It is now
more than three months since the up
ward swing in the stock market began.
Some industrials have recovered all the
losses they made in the November
crash many of them advancing from
40 to SO points since then.
No doubt cheap money has had
much to do with this advance, but
some unfavorable factors in the pres
ent business situation have been COM
More than 100000 600 shares have
been traded in on the New York Stock
Exchange so far this year, compared
with 275,ooo,0o0 for the same peTloo
last wear. but go back year or TWO.
In 1927 only 120,000,000 were dealt in
during the corresponding period, ana
169 600 900 in 1928. So 1880 Is not
so bad. - oo.,vo
In the stock market in the last two
weeks than at any time since the NO
yen1ber break" said one OF the larger
operators yesterday.
What owen D. Young, chairman OF
the General Electric, told the Uni
yersity of California students Is worm
repeating. -,,.. ,.,..o
Few American industrlallSts are more
widely quoted than he. TO mllI1oiis
outside the United States his name Is
svnonvnous with the best in American
business life. L 40
serves special mention ,..,.
"Tet no man think that the living
standards of America can De perHla7
nently maintained at a measureaply
higher level than those Of other owned
countries . either we must llft theirs
to ours, or they will drag ours down 70
theirs. Tariffs and other petty poliIical
barriers, temporarily justit1able, VIII ~
the long run only accentuate tne
trouble = = we are learning in America
that the highest level of all, rather tnan
Of any class, is a wise objective even
for the group previously privileged.
The United States Government suit
to prevent, if possible, the PROPOSED
merger of the Vacuum OIL Co., ana the
Standard Oil of New York harkS back 10
the dissolution of the Standard Oil Co.
THE Government insists that both the
Standard and the Vacuum are engaged
in the same lines of business, that OF re-
filming and selling oil and gasoline In
the same parts of the United STATES
particularly in New York and New Eng
land.
Today they are in competition. # al
lowed to merge that competition VIII De
destroyed.
The old decree of 1911 enjoined all
defendants, including these two COM
panies, from entering into any compl-
nation in restraint of trade. The Gov
eminent insists that the new merger
violates both the spirit and the letter
of the famous 1911 decree.
Both are very large companies. Inc
Vacuum Oil has SCAT 900 shares OF stock
outstanding, with earnings OF a1ous
$3.50 per share The stock is selling
around $93 and pays 81 q share an
The Standard Oil Co.. of New York
has 1854 900 shares outstanding, Is
earning about SITS per share and is
paying $1.60 per share in DIVIDENDS.
AT present this stock is selling at $50 70
$50 a share. These companies. II al
lowed to merge, will make another Dill
lion-dollar Standard Oil Co.
It's an important case. The merger
movement in oils has just started This
Government action will naturally matt.
matters for the time being.
It's well, however, to have the Gov
ernment,s position stated and ruled
upon by the courts before the merger
movement in the oil industry gets any
1artner along.
Legislation against chain stores is
taking different form.
Georgia has new form Of sales tax
- mills on the dollar of the gross re-
ceipts in retail stores and ! mill on
the gross sales of wholesalers. While
there is an exemption of $4,000 al
lowed, only one claim for exemption
is granted to any taxpayer, regardless
of the number OF stores. This is where
the chain is hit.
The law now in operation says:
when a manufacturer conducts a
manufacturing business and also oper-
ates retail store or stores, all o-'ned
by the same person or corporation, but
one exemption will be allowed for the
entire business"
Is it constitutional? The courts will
have to decide that later.
Texas is handling the chain problem
differently. Its House of Representatives
has already passed bill levying tax
of per cent on the gross receipts of
such stores, taxicabs and shoe shining
parlors, providing there are more than
five in the chain.
On constitutional grounds, this law Is
q question mark
Kentucky is trying something else.
1t adopted graduated sales tax of one
twentieth Of l per cent on sales under
$400, 900 year, increasing to per cent
on sales of more than 100000. Such
q law probably has more chance of get
ting by the courts.
Tied up with this law, Kentucky Is
considering :. bill which will require all
commodities in package form to be
marked with weight, measure or nu-
merical count This is to meet the fire.
uuent charge that chain stores sell food
in packages of smaller size than those
in which the same foods appear on
independents shelves.
Heretofore the chain stores have been
inclined to take things easily and not
react too vigorously against the oppo-
sition to them. In the last few weeks,
however, the managers Of these stores
have become more aggressive and started
to give their side of the story.
And there are two sides to this con-
troversy.
[Copyri9ht, 1880. by North American News
paper Alliance,)