Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-14
PASSAGE OF TARIFF
HELD BUSINESS AID
Industry Is Expected to Go
Ahead With Plans for
Expansion.
BY JOHN r. SINCLAIR.

.UsTTsff
io' BY JOHN r. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, June 14.-The stoct
market leaders came back strong yes
terday and gave the bears a trimming
United States Steel the leader showed
strength and encouraged the rest of thu
list. The foreknowledge that the
Hawley-Smoot tariff bill would pass
the Senate was considered factor ir
market use. That the House Of Repre-
sentatives will pass the act today is
generally accepted.
Will the President sign the bill? Sc
far there are many observers who say
that he will veto it, but the vast ma jor-
ity of those 'in the know" think he
will sign 1t as soon as 1t reaches his
desk
Whatever the President does, the
tariff question, after Is months of I'M
certainty, will be disposed of in the
next few days Business will be re-
lieved to get the job out of the way,
% as to know just how to proceed.
Nine companies in the United States
have more than 100000 stockholders
each, according to the latest off1cial
reports The American Telephone d
Telegraph Co. leads the list with 400
900. The Cities Service Co. follows
with $4,000, General Motors is third
with 1882, the Pennsylvania Railroad
fourth with 206,470, and the Associated
Gas e. Electric Co. fifth with 100, 139.
The other four follow in this order
The Transamerica Corporation with
$4,000 the Standard Oil Co. of New
Jersey with 103677, the Public Service
Corporation of New Jersey with los, 1885,
and the Anaconda, which moved into
the 100000 class since the stock market
crash.
1t would not be surprising to have
It recorded that at the end of 1880 the
number Of corporations in the 100000
stakeholder class will be doubled.
BUY stocks when they look the worst,
and sell them when they look the
best is the advice followed by many
successful brokers.
The market has been listless, with a
tendency to soften and sag. except in
few particular stocks, during this past
week 1t reflects, undoubtedly, the
waiting tendency evident throughout
the country.
IS the uppermost question now. The
Alexander Hamilton Institute, after
making a study of trade cycles, found
the average length of industrial re-
actions during the past 40 years, was
approximately IL months. AS the pres
ent drop in business started about July
last year, we should now be pretty well
through the worst.
The Brookmire Economic Service be-
Ieves that factors are working which
will bring about recovery before many
more months.
Two important factors pointing to-
ward business recovery before the end
OF the year are cheap. money and low
commodity prices" says this service.
"Cheap money alone is not enough to
-, H1xei v,aE I1tsf &c
powerful aid toward recovery when
conditions become favorable"
AS this column has stated repeatedly,
Q major handicap to business recovery
seems to lie in the field of foreign trade.
Purchasing power throughout the world
has been declining for IL months.
When John D. Rockefeller, ST., estab-
lished the General Education Board in
1902 for the purpose of promoting edu-
cation throughout the United States,
he turned over to the board assets with
ledger value of SCI, 159, 300.
Most of this amount was invested in
Standard Oil stocks, carried on the
books at very conservative figures.
The board has spent many millions
and given away other millions. Yet its
last issued statement showed assets with
ledger value of $65, 500, $40, of which
~ per cent is in various common stocks.
carried on the boards books at SAT, 1884,
642, we're worth on the market yester-
day $89, 083 900.
Substantial stocks held include Stand
ard Oil of New Jersey, South Penn Oil
Co., Ohio Oil Co. and Anglo-American
Oil
The General Education Board is the
most successful investment trust in ex-
tstence.
Exports of United States foodstuffs
direct to the European markets showed
mp we'll in 1929. increasing 100000 in
value over 1928. During last year the
total of all foodstuffs shipped was $780,
100000 as compared with $422,000,000
In 1928.
Grains and grain preparations conn
priSed 319 per cent of the total while
fruit and fruit preparations, 215 per
cent, and edible animal oils and fats
amounted to 20.1 per cent
The United Kingdom took over $780,
000,0o0 of the total; Germany took
$71 ,729,e54, and the Netherlands, S49,-
1861. Other leading markets, in the
order of their Importance, were: Bel
GUM, Italy, Denmark, France, Sweden,
Norway, Greece and Finland
The Europeans are buying more
American canned goods than ever be-
fore, with pears and peaches leading.
Exports to Europe in this field have
reached total of more than 100000
O month.
Chain store competition has brought
about some interesting changes in de-
partment store operation. The steady
decline in net profits during the last
fve years has forced department store
executives to adopt chain store methods.
Several factors, such as increased
taxation, advances in rents and salaries,
are responsible for these changes, but
the chief influence has been chain
store competition. The definite eco
nomtc advantages which the chain store
claims over the department store are
greater capacity for mass buying, abil-
1ty TO sell standardized goods at lower
prices, and economies in cooperative
advertising
Meeting the chains on their own
ground, many department stores have
resorted to chain management. Depart
ment store chains grew from 1879 in
1927 to more than 500 today, including
almost 5000 units. The majority of
these chains were established by the
consolidation of existing stores, each
store preserving its identity. For the
nlent stores have outnumbered those in
any other field of retail trade.
These chain department stores are
meeting with a fair degree of success,
but the movement is still too young to
furnish any conclusions as to the future
Decentralization has been the chief need
OF the department store, and the chain
organization seems to be a distinct help
In the right direction
(Copyright, 1880. by North American News
paper Alltance)