Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-07
RETURN TO NORMAL.
BUSINESS IS URGED.
Corporation Head Believes
Present Depression Has
Been Exaggerated.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, August 7.-R. W
Woodruff of Atlanta, 40, president o.
the White Meter Co., which employs
about 5000 people, as well as president
of the Coca Cola Co., which employs
another $4,000, In reviewing the Dusi.
ness situation, makes this Signlncan'
statement:
"The general slump in business, in
my opinion, has been greatly exagger-
ated and conditions will show a decided
Improvement when all of us get back 70
normal vision, normal standards OF
comparison and normal acting. Wnen
we adjust ourselves to conoltlonS the
conditions will improve, and the sooner
we realize that business Is what we
make it the better of we will be.
Its anybody's guess-this matter OF
predicting how long the depression is
going to last. We will probably nno
that it is now pretty well along. It's
largely psychological anyhow: II we
would all go at things as we old year
ago conditions would adjust themselves
speedily, as they always have In 'ne
past"
Mr.. Woodruff is strongly opposed to
any reduction in wages. Neither COM
parly of which he is the head has par
ticipated in any reduction.
Mexico, having arranged her public
debt in New York, starts her third at
tempt in 10 years to pay her way In the
international field.
Big concessions were made to Mexico
by the foreign bond holders. Back in
terest, defaulted for several years, was
practically wiped out.
past arrears. including interest on
both Government and railway debts, to-
falling sS4s, 796, 900 are to be paid at the
rate of $4,000 900 q year, which Is 10
be accumulated out of annuities In the
next few years. In addition to the In
terest cancellation, about $21 100000 OF
the principal were thrown on Tor gooo
measure.
So the Mexican delegation led by
Luis Monies de Oca, came out OF the
conference with $3.50, 600, 900 less of for
eign obligations than wher they went
in. The theory being, as one writer
puts it, that half loaf Is better than
none"
To make it binding. the new arrange
Ment must be ratified by the Mexican
Congress and accepted by the bond
holders by the first of the year.
With her foreign debt out of the way,
Mexico has now a splendid chance to
re-establish her credit in the eyes OF
the world.
How much does 1t cost to raise wheat?
1t depends upon the yield per acre, and
the cost of putting in an acre of wheat:
Divide the total cost by the number OF
bushels and you have it.
The Department of Agriculture esti-
mated that 1t cost 81 "a to raise bushel
in 1929. Up to the time Of the hot
weather, two weeks ago, the crop was
expected to be about normal. II so, the
cost per bushel might not have exceeded
81. But the scorching weather has
ehanged all that. Now 1t makes the cost
almost as much in 1880 as in 1929.
But with farmers, receiving 68 or SO
cents q bushel on the farms, the situa-
tion Is anything but favorable.
Incidentally the farm machinery COM
panies are spending plenty Of time these
days on their credit books. Thousands
of individual pieces of machinery, sent
out on consignment to be paid out Of
this years crop, are being returned to
the factories and warehouses.
When the purchasing power OF the
farmer drops it affects every one who
deals directly with him, farm machinery
companies especially.
It looks now as though the wheat and
corn farmers will have to wait another
~ months for a piece of luck.
An unmistakable drift toward trust
companies is everywhere evident, in
New York particularly
VINO W0ulQ nave QTSdIIltQ bllhL -uuI
the last IL months-in a year of declin-
ing prices and uncertainties-the IS
trust companies would gain $1,000
O00, 600 In average net funds over the
preceding year? Today they stand at
$3.50 978, 0o0
Figure one trust company earning more
than 100000 net month. The
Guarantee Trust Co. earned more than
that-S27 967 900 for the year-eQual to
31.6 per cent of its average capital, or
2.36 per cent on the average net funds
OF 81, 188, 400, 900.
Investors In every State in the Union
have helped to make such q record
possible.
one investor know, not wishing to
let his associates In Middle Western
town know anything about his business
affairs, has recently deposited large
sum of money in one of the New YORK
trust companies-exceeding $1,000, 600
for the exclusive benefit of his family.
And so 1t goes. One can hardly pic
tIre a business recession by reading the
figures OF the New York trust COM
panies' records during the last year.
While New. York Is taking action to
prevent riveting on steel structures be-
fore am. and after pm, other cities
are building large buildings without
noise via the new welding process.
Witness the new 15-story building
now being erected in Boston by the
welding process; another one going up
in Los Angeles, nearly as high, by the
same method. No rat-a-tat-tat at all.
Buildings in the future will be much
taller than they have ever been.
Many engineers vision buildings 200
stories high, designed in such way
that four of these, in turn, will be cap
ped for airplanes, which, in turn, will
be caught as they go by. rather than
land on field.
"Riveting is not necessary any longer
A up-to-date, modern machinery is
used" said a well known engineer in
discussing this matter. mo city need
suffer from the riyeting noise. Build
1ngs can be put up Just as speedily and
Just as stoutly without any noise. A
strong civic leadership can accomplish
this"
What city, Boston, Los Angeles or
New York, is to become the real leader
in this important step to demonstrate
Just how a noiseless skyscraper can be
built? Whichever one does will, and
should, receive the everlasting gratitude
of harassed city jewellers.
(Copyright, 1890. by North American News
paper Alliance
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