Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-22
CHANGE IN TRADE
METHODS OPPOSED
Minnesota Banker Objects
to Government Regulation
of U. S. Industries.
BY JOHN F. SINCLAIR.

NEW YORK, september 22.--Lyman
Z. Wakefield, president of the FIRST Ma
t1onal Bank of Minneapolis, does not
give the usual answer to the question of
what is the main factor holding back
business recovery. Most blame slow re-
covery on fear, but his mind travels q
different road.
The uncertainty created by the con-
slant threat of governmental interfer-
ence with the machinery of business is
the main factor" he says. Every in
dividual who has a deposit in a bank
is paying premiums on a life insurance
policy, owns home or Is possessed of
any property whatever should wake up
to the fact that every political effort to
change the methods OF doing business
results in the necessity of some one
writing of a tremendous amount of
value in property.
II refer to such incidents as the re-
vision of freight rates under the Nc
Adoo railroad administration, which, in
theory, was probably right. Yet doubt
whether the benefits have in any way
offset the enormous losses which were
occssioned. such as the decrease in value
OF the textile mills of New England and
the necessity for construction of an
equal amount of mill capacity in other
sections of the country, and the lowered
value of -four mills and the necessity
for building an equal amount of milling
capacity at some other point in order to
meet rate requirements.
In my opinion the finest thing that
could happen at the present time would
be for all governmental bodies to permit
business to adjust itself in some normal
fashion over the next 10 years without
any interference or hampering by legis-
lation."
MIR. Wakefield apparently does not
share the view of George NJ. Verify,
American steel manufacturer. and many
others that modification of antitrust
legislation in certain particulars is badly
needed to give business more breathing
space than it has at present.
Automobile Registrations.
Passenger automobile registrations in
the United States declined 1881 per
cent during the first six months of
1880 in comparison with the first six
months Of 192s-2,l56,ll4 car registra-
tons as against ,653, SOS this year.
Only out of 80 car manufacturers
show an increase, and two of these are
relatively small producers.
One make of auto which last year
showed registrations Of 10000 for the
first six months, showed only $4,000
this year. Another car. with $4,000
last year. had only $500 this year.
Another one had 1877, 900 registrations
for last year as against $4,000 this year.
The total output Of automobiles in
the United States and Canada in 1929
amounted to 5.622. 900 cars.
What will the output be for 1880?
Probably $4,000" thinks the
Brookmire Economic Service
Not before the second quarter of
next year will a satisfactory operating
level be attained. This will mean small
earnings for practically all companies,
deficits for some, more dividend cuts
and probably some failures between now
and the middle of 1884," says this
survey.
What about the future of the used
car? 1t is becoming more and more
o problem to the dealers, where the
amount of tradeins is increasing. Prob
ably the car manufacturers will be
sorced to cooperate more closely with
their dealers in meeting this problem
in the future.
eff So" Brookmire concludes. "the
result will be to increase the working
capital requirements of the automobile
companies, slow UP their inventory turn
over and perpetuate low margins Of
profit on new car sales on account of
the increasing cost of handling trade
FMS"
Air Rates.
The Interstate Commerce Commits
sion has not yet seen mt to take over
rate-making of air-travel routes. Air
travel executives are watching every
move to determine the rate that will
attract the greatest number Of paSsen-
gers and at the same time show q
fair profit.
In most cases the service is unusual
" good During the last IL months
the constant reductions of passenger
fares throughout the country has
caused great expansion in air-travel
T. -1ws~wrn -
the one from Miami to Havana--the
big tri-motor planes are usually run
ming to capacity.
Low operating cost will enable us
to carry round-trip passengers between
New York and Washington at less than
the cost Of railroad fares plus Pullman,
while the single trip will be only slight
" greater than train fare" says Paul
Collins. chief of operations for the
New York Philadelphia Always Cor
poration, the company planning this
new service.
Farmers Income.
o. z. Reed, Federal dairy expert, tells
us that from July /, 1927, to July l,
1928, American farmers received about
Sl225O 900 900 for their products,
fourth Of which, or about $4,000, O00, 900,
was produced by our dairy cows"
This was two and a half times the
annual Ndiue VI Lie COJJOl CEUP, kWO
and half times the beef and veal crop,
more than three times the wheat crop
and more than two times the hog crop"
said Mr.. Reed.
Dairy products are on the increase.
Milk, butter, cheese and ice cream are
included more and more in the standard
diet OF the American family.
THE problem of raising the general
level of quality of milk and cream at
the point of production. the farm, is
one that must be given more consider
ation,'' Mr.. Reed believes. The objects
of quality improvement are to increase
consumption and provide the consumer
with clean, wholesome and nutritious
dairy products"
The Southern States show the lowest
per capita consumption, but this condi-
ton will not last long. For more money
Is being spent for modern. up-to-date
dairy methods in the Southern States
today than in any other section Of the
country.
(Copyright. 1880. by North American News
paper Ailiance.D