The Washington times., 1930-08-02
Traditions

zone never sells Consolidated
Cas-
This was the stand taken by an
investor a number Of years ago
when the company was in situa
tion similar to the present one,
and is being repeated now. The
company is proposing to cut rates
to 5 cents a kilowatt hour from
7 cents. This would cut It's
income $5,396, 900, it is estimated,
or about so cents share. Yet
those who hold the stock ignore
the momentary effect OF this
action and point out the COM
pany's aggressive management and
its past record.
The stocks weakness the past
two days has brought conflicting
stories. One is that insiders are
waiting for it to go much lower.
On the other hand, some profess
to see high-grade buying. I do
believe. however, that investors
who hold the stock outright can
afford to ignore the adverse de-
,velopment and remember that
Consolidated Gas has always come
through in the past.
The squirt in Peoples Gas was
accompanied by bullish reports
from Chicago, stating that a big
move was under way. The
reason, I hear, is in the decision
of the Chicago Public Service
Commission to allow the company
to sell natural gas on heat
unit basis instead of cubic feet.
Peoples Gas is going to be the
big outlet for the companies who
are laying. a gigantic pipe line
from Texas to Chicago.
Warner Brothers
I hear that Warner Brothers
will pay the regular dividend at
its meeting Thursday, but that
payment will be made in script.
This is in line to my statement
yesterday that there had been
some inside buying in the stock
during the break.
Earnings for the past quarter,
I understand, will show a decline
of 80 per cent from last year.
Better results are hoped for the
rest of the year, since most of
the company'S houses were able
to come out about even despite
the slump in attendance, it is
said.
American Tobacco, consistently
recommended here, came through
with an 8-point gain. The new
stock was up in proportion. I
am still bullish on the stock and
my advice is to hold it for big
profits and ignore day-to-day fluc-
tuationS.
The company is expected to
earn at least $18 on the old stock
this year, which brings it down
to q conservative price-earnings
ratio, and it has shown ability
to gain each year.
Those who bought Lorillard
lower down at my suggestion
should take their profits. hear
the move is almost over.
Throttled Down
It looks as though oil stocks
need a "shot in the arm" to
wake them up. More good news
came out yesterday in the Gov
ernment'S announcement that
storage Of oil dropped 1884, ,O0O
barrels in June against big in
creaSes in both the preceding
month and in June last year
Curtailment in Texas is also
being lined up; yet both might
never have happened as far as
the stocks themselves were con-
cerned.
Of course the markets nervous
and irregular action Is against
a concerted move in any one
group. However, it seems likely
that there viii be a move in the
oils soon. The industry seems
to have its production problems
in hand for the time being and
there are rllnors Of higher gaso
line prices soon.
Standard Of New Jersey is the
best of the oils and the leader
of the group. Mexican Seaboard
and Houston are the most specu
lative. Other good oils are
Standard of California, Cont
mental and Sinclair. Standard
of New York probably won't dc
much until there is some indi'
cation of how it is going to come
out in the Vacuum Oil merger
suit.
Those bullish on Atlantic Re.