Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-10
SOVIET is SEEKING
CH|NA'S OIL TRADE
Russians Plan to Take Mar
ket From U. S. and Brit
iSh Producers.
BY JOHN F. SINCLAIR.

DA JOAAAN Es SAANNAAAns
Special Dispatch to The Star.
NEW YORK, March TO- - Premier
Molotoff, youthful Soviet leader, warns
America that Soviet Russia cannot con-
tinue to buy goods from the United
States unless the United States buys
goods from her. He told the 1,479 del
egates to the All-Union Soviet Congress,
now in session in Moscow, that Russia
expects to go ahead with her five-year
plans vigorously, no matter what action
outside countries take against her.
At the same time, a message from
Shanghai tells of Soviet plans to wrest
the oil trade of China from British and
American interests. The principal Amer
lean exporters of oil to China are the
Standard Oil Co. of New York and the
Texas Co., and the principal British ex-
porters the companies forming the
Royal Dutch Shell group.
The Soviet government sees rich
prize here, and the vigorous activity OF
its oil fields attests the fact that it
is planning big things in this industry.
In 1880 Russia produced $4,000, 600
barrels of crude oil-an increase of 81
per cent over 1929. She has trebled her
output of oil since 1924.
Last year Russia exported 32,850,0 600
barrels, most of it going to England,
France. Italy and Germany.
That's why the big American and
British oil companies are watching
every move OF Soviet leaders these days.
Reardon's Rise.
1t took Daniel L. Reardon, new presi-
dent of the United States Trucking Cor
poration OF New York, 35 years to move
up from driving team to the head OF
this cor poration. When he started with
the company only horses were used in
its vast work Now they're nearly all
gone Automobiles have taken their
place.
Corporation, a $50, 100000 corporation,
does 65 per cent of New York City's en-
tire hauling work, as well as 30 per
cent of the armored car deliveries 1t
operates $50 trucks and $50 other pieces
of floating" equipment.
It is the disappearance of horses that
President Reardon regrets more than
anything else, for as late as 1920, when
the company was formed by series
of mergers there were 1850 horses in
the outfit. Now there are but 10.
The trucking business has changed
completely in character during the life
of one individual.
The bond market is taking on new
life. The $100,000,000 New York City
issue of last week and Andrew Melons
SI.493. O00. 600 of Federal Government
oversubscribed. There is nothing to in
dictate any lessening in the demand
since these two large transactions have
been completed.
The $500 600 900 United States Gov
eminent issue of 33s per cent, maturing
in IL years, was really the big test, and
it was oversubscribed more than four
were turned in.
No question, as things stand today,
that the Federal Government could Sc
cure several billion dollars more with
out disturbing banking conditions.
But that is not the most important
point. Should business recovery take
place the credit surplus now lying In
the banks could be absorbed in short
period.
And that hight happen most any
time although there's nothing at the
moment to indicate any change In
business conditions over what they
were month ago.
Brokers' Loans.
In spite of the rise in the stock mar
ket to new highs for the year. brokers
loans have decreased S218,Oo0,000 in
the past 10 weeks. That statement is
good news and to that extent bullish.
The great amount of recent talk,
saying that the public has at last gone
into the stock market with vigor not
witnessed in the last two years, Is large
~ exaggeration. The public has not
gone into the market on as large
scale as some have believed.
From survey of the situation we
have found that the vast majority Of
brokers have very strong cash posi-
ton and could handle large amount
of additional credit without calling
upon the banks for any help.
When the public regains its conf
dence sufficiently to go back into 1.-The
market the vigorous gyrations which
have been witnessed in the last two
weeks will occur less frequently
A. T. g. It. Report.
Walter Gifford's report on the activi-
ties of the American Telephone g. Tele-
graph Co. for 1880 must leave its $751;
694 stockholders, who are scattered in
every part Of the world, somewhat be-
wildered. Not because of it's lack of
comprehensive figures, but by the
breath-taking size of the figures sub
mitted.
Think of one company spending from
1928 to 1927 for expansion a total of
sl.800,000,000! From 1928 to 1880, this
company expended about $500 900 600
for new additions and constructions and
improvements to its vast properties.
For 1881, the expenditure in this
field viii average about S1,25o,Oo0 a
day-or S450, DOC, 900 for the year. Last
year this $1,000, 000,000 company had
a gross income of $283 600 900, and a
net income of S2O1 ,645 900. This was
after laying aside the proper reserves
an average net income equal to SI044
a share on the average number Of shares
-(l5,856, 000) outstanding during the
year.
This compares with the equivalent OF
Sl2.67 on 1918, 746-the average num-
Der of shares outstanding in 1929.
No new financing on a large scale is
contemplated by the company this year
as 1t had approximately $3.50 900 900 or
hand for this work at the beginning oil
1881.