Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-13
BRAZILIAN COFFEE
RICE-F|X|NG PLAN
MAY Be ABANDONED
State of Sac PauIo Expected
to End VaIorization
Scheme.
LOAN WILL PLAY PART
| IN DETERMINING POLICY
Financing of Present Situation
Contingent Upon Free Mar
ket in Future.
BY JOHN F. SINCLAIR.
cial Dispatch TO The Star.

EAPA1 1G.-AIG We see
ing the end of the coffee valorization of
Brazil? 1t looks that way now.
The state of Sac Paulo the coffee
center, In urgent need of money, is Sc
rlously considering dropping the coffee
prlce-nXlng, as a condition to securing
a loan.
The loan is being arranged by Spever
d Co, Bancamerica-Blair Corporation
and Dillon, Read e. Co. in the United
states and Barring Brothers, Limited: N.
M. Rothschild g. Sons and j. Henry
schroeder & Co. in London. About l6,.
o0O.OOO bags Of coffee valued in excess
Oh SzOO'OOO,O0O, have been stored as Sc
curity.
The important thing, however, is that
the state of Sac Paulo is expected to
agree that within maximum period of
iO years 1t will liquidate its accunu.
lated stock of coffee and will place fu-
lure crops upon the market currently.
ceaslng to hold them in order to main
tain prices.
On July / next all the unsold ac-
cumulated coffee remaining will be
placed against the loan.
= definite loan announcement, mark
ing the death-knell to the coffee Valori-
zatlon plan, is expected soon.
Eastman's Warning,
Regulate all holding companies buy
ing railroad securities or be prepared
for an uncontrolled and unsatisfactory
railroad situation
This is the warning of Joseph B.
Eastman, interstate commerce commits
sloner, who has been fighting to bring
the holding companies under the domi-
nation of the Interstate Commerce
Commission, just as the railroads are.
cc irV1A 80 all u
rected particularly against the two big
holding companies organized so far by
railroads; the Pennroad Co., owned by
the officers of the Pennsylvania Rail-
road, and the Allegheny Corporation,
controlled by the Van SWelingen Broth
ers of Cleveland.
Mr.. Eastman says that the Van
Sweringen5, working through their
holding companies, have not only Sc
cured control of nearly all the lines
that were allotted to them by the In
terstate Commerce Commission in the
East. but, in addition, they have pur-
chased large stock holdings In roads
that were not assigned to them, the
Missouri Pacific, for instance.
The commissioners position is that
If railroads are under the control Of the
Interstate Commerce Commission, the
agencies of those railroads (railroad
holding companies) should be, too.
Otherwise, confusion worse confounded
Will result.
Congress is studying the subject now.
Newspaper Advertising.
Newspapers received more than $780,
600 900 last year from their advertising
columns. according to an estimate of
the Bureau of Advertising of the A. N.
F. A.
While the publication of the individ-
ual accounts is not allowed, it is known
that % companies manufacturing auto
mobiles and trucks put $64,245, 900 into
newspaper advertising; 10 tobacco COM
panieS put another $21 1896 900: SO food
companies $2o.660000, while "a radio
and photograph companies expended
$16.320,0 900.
Forty-seven companies merchandising
drugs spent $13,975, 900 for white news
paper space. while ii firms dealing in
toilet articles added another SIC, 565, 900.
The growth of national advertising
through newspaper space is one OF the
remarkable phenomena of the last Is
years.
New York Customs Receipts.
The port of New York has always
been and remains since Revolutionary
! times the most important port OF entry
|
in the United States.
Last year the United States Govern
ment collected $610,900,000 in customs
receipts, of which $34,213 900, or 81 per
cent, was taken in at New York.
But the passenger baggage duties.
which constitutes but three flfths OF l
per cent of the total receipts, cause all
! the congestion and delay. Last year
397. 1923 passenger declarations were
made out at New York. So Secretary
Mellon has asked some business men OF
that city for suggestions as to how to
relieve the congestion.
Why not have customs men board all
| important ships coming to the United
States from Europe and inspect all pas
Senger baggage before landing? This
would eliminate unnecessary delay and
congestion.
Certainly, heroic measures will have
to be taken to relieve the port landing
difficulties. The present situation Is in
excusable.
The National Geographic Society of
Washington has issued an interesting
bulletin on the subject. Tobacco was the
most important American export for $50
years-cotton for the next $50 years. 1t
was only for a short time after the Rev.
dictionary War and the Civil War that
flour and wheat took first place.
The exports of the Colonial period
and of today in the order Of their i'm
portance are:
Colonial Period. 1929.
groho