Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-28
Economies in Management
and CurtaiIed Output Tend
to Correct Situation.
COLLECTIONS ARE GOOD
Cheap Money Has Already
Shown Its Effect in Re-
storing Conditions.

should be able to work out their own
salvation, provided they are not unduly
interferred with by unfavorable legisla-
ton.
The shipping business, on the other
hand, took a distinct squirt in 1880.
This was promoted by the allotting of
ocean mail contracts which provided
for loans, aiding the successful bidders
to construct new ships Of improved
design.
Lines of Communication.
The lines of communication by wire
and radio improved strikingly in eff
cheney and gained customers through
out the year. The companies are fol-
lowing out steady, well formulated
plan of development and expansion, and
the depression did not serve to turn
them from their policies. Many new
lines of telephone communication to
foreign countries were opened, and it
is now possible to telephone almost any
where in the world from America. Ra-
dio communication showed unmiStak-
able signs of growth, but its pace was
slowed by number of important law
suits which involved both routings and
patent rights.
The public utility companies sold
more current in 1880 than they did in
1929, but the rate of gain was far I'M
der the percentage which had obtained
in preceding years. The number of
new domestic customers for electricity,
which appropriated 800 900 in 1929,
did not anywhere nearly approach that
figure for the current year. Consump-
ton of electricity probably will equal
approximately 00,000,000, 900 kilowatt
hours in 1880, however. The utility
Nil
new equipment, especially on steam
generating plants.
The production of electric current
by water power was hampered by the
drought which struck the country dur
ing the Sur1mer. No embarrassing
shortage was experienced as the sub
Sidiary steam plants Suff1ced to furnish
the required amount. The electric
utilities spent $l,250,000. 900 in 1880 in
new construction and equipment.
Pipe Lines a Feature.
The real feature of the year in the
power field was the development of the
natural gas pipe lines. This product,
which had for years gone to waste in
the oil fields, is new being piped to
practically every section of the coun-
try. Lines exceeding a thousand miles
in length are no longer unusual. The
major use for this produce lies in the
industrial field, but the superior heat
producing qualities of the natural gas
have resulted in mixing natural and
artificial gas for the benefit of domes-
tic consumers in scores of cities.
The construction of these lines was
one of the main buttresSeS of business
during the year. Orders for pipe kept
steel companies busy when otherwise
they would have had to reduce produc-
ton sharply. The laying of the lines
furnished employment and wages for
hundreds of thousands of men. The
development of the industry would
year not been one of general depreS-
sion, because users of power were loath
to eXpend the sums necessary to change
from the use of coal to the use of gas
Between $400, 000, 900 and $500, 100000
was spent in the construction and ex-
panSion of these lines during the year,
according to estimates by men closely
associated with the business.
The electric street railroads were
granted the right to additional rate in
creaseS In many cities, but none the
less the competition of automobiles and
buses and the difficulty with which
new financing in the street railway field
was accomplished left the industry in
decidedly unsatisfactory state as the
year closed In spite of that fact,
large sums were spent for new equip
ment and for maintenance.
Foreign Trade.
The country maintained a favorable
trade balance, but the foreign trade OF
the Nation was curtailed by the de-
preston in the foreign nations. This
depression resulted in a drop in foreign
exchanges. That, In turn, was followed
by a flow Of gold toward the United
States and France. At the close of the
year those two nations held approx
mately one-siXth of the total gold sup
ply Of the world.
Plenty of Money for Play.
The tremendous buying and spend
ing power of the country was exempli-
fed in the volume of tourist traffic dur
ing the year. Visits of Americans to
Canada and Mexico were somewhat
curtailed, but still were in huge volume.
The Outdoor sports of the Nation &C
counted for the expenditure of larger
sum than has been the case in many
years. Base ball had its best year in
a decade In 1880. The foot ball season
showed a remarkable gain in the total
volume of money spent by spectators.
Attendance at motion picture thea
The legitimate stage, however, had
fairly disastrous year, with many actors
unemployed and many theaters dark.
Psychological Setbacks.
The fall in commodity prices was re-
garded by many as prime factor In
the depression of numerous industries,
but as the year drew to q close it be-
came more evident that prices were
stabilizing and that the trend had re-
versed itself and turned upward. There
Is no doubt that the lowered commodity
prices aided to sustain the volume of
buying throughout the major part of
the year.
It would seem from a general exami-
nation of the major industries of the
country that the majority of them had
suffered SetbackS in 1880. These set
backs, however, were more psychologist
cal than real. The weaker companies
unquestionably suffered severely. Many
Of the stronger companies sat tight and
took the opportunity presented Of en-
trenching themselves within sound
financial breastworks and protected
themselves by thoroughly up-to-date
business policies.
As the year closes 1t Is sure that the
states have been rubbed clean. Bad
debts and deteriorated inventories have
been written on. Business has read
justed itself to new conditions and Is
ready to take advantage of the turn
which every sensible business man in
the Nation knows is bound to come.
The United States is q going con-
cern," and its progress cannot be
checked sven ~ an extended depres-
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