Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-23
Stocks React Favorably.

COOChS nC8Eb oNOAAD
The readiness with which offerings
Of stocks are absorbed suggests That a
favorable reception will be accorded to
whatever announcement may follow the
Hoover Laval conference. The French
statesman, as might have been eX-
pected upon his arrival, did not refer
to the exact nature of the economic
and financial problems he and his group
will take up with President Hoover.
Although it Is understood that COM
muntcating the nature Of the discus
sions to the public was contemplated
originally, there are rumorS to the eff
feet that the French delegation pre-
ferS that the views expressed in the
course of the meetings should not be
divulged until they assume more con-
crete aspect.
1t is possible that marked improve
ment in German bonds on the New
York Stock Exchange may foreShadow
favorable action in regard to Germany's
According to we'll informed circles,
the creation of O revolving fund to aid
weak railroads through loans at low
rates Of interest is expected to receive
serious consideration shortly.
The pooling device suggested by the
Interstate Commerce Commission, If
put into effect, will make unnecessary
leans from this fund to cover deficits
of the individual transportation sys-
TENS. But many Of the roads require
funds to meet maturing obligations and
for equipment, expected to come out Of
the revolving fund referred to above,
which President Hoover is understood
to favor.
Acceptance Doubtful.
It is doubtful whether the important
roads will accept the pooling arrange
ment proposed by the commission. Fur
thermore, since the decision is not eX-
pected to afford the relief which the
carriers had anticipated, it is not i'm
possible that attempts will be made to
bring about reduction in the wages
Of railway employees. The meeting of
railroad executives, now convened at
Atlantic City, may throw some light
upon this question.
Belief is widespread that national
constructive measures now being put
into effect will soon bring the steel
industry out of the lethargy in which
it has been for some time. Inquiries
from small users Of steel products are
picking up, and 1t is hoped that the
heavy consumers, such as the automo-
bile companies and railroads, will also
make their appearance on an appre-
ciable scale in the not distant future.
In view Of the proposed rate increase
on shipments of raw steel, those who
have been extremely cautious about
placing orders may be obliged to resort
to buying.
Investigations made by the General
Foods Corporation indicate that an UNI
derstocked condition prevails among
jobbers and retailers, according to C.. G.
Chester, jr., president, who also calls
attention to the fact that actual con-
sumption of many of the companyS
products have been running ahead of
production.
Expected Its Benefit.
This situation. according to Mr..
Chester, has been quite general
throughout the industry for several
months, and many food companies
should benefit through the inevitable
repleniShing of inventories. The rela-
tive slight Shrinkage In earnings for the
first nine months Of the current year,
amounting to less than 6la per cent,
as compared with the corresponding
period in 1880, may be attributed to
large advertising and other promotional
expenses.
Orders totaling about $17,500, 900 have
been received by the Westinghouse
Electric & Manufacturing Co., accord
ing to A. w. Robertson, chairman of
the board. This probably accounts for
the relative firmness in the shares Of
Westinghouse, despite low earnings.
For the nine months ended September
80 the company reported deficit OF
almost 81 100000, as compared with a
net prcflt of more than Sill 900, 900 for
the same period last year.
The September quarter, however,
shows q gain from the preceding three
months of more than per cent. and
the balance of the year is confidently
expected to bring about further gains.
(Copyright, 1891, by the North American
Newspaper Alliance, 1nc.)