Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-03
Everybody's
Business
Strengthening Of Securities
Markets Attributed TO
Agreement on Rail Con-
solidation Plan and New
York Bank Merger.
BY DR.. MAX WINKLER.

BY DR.. MAX WINKLER.
! Special Dispatch to THE star.
NEW YORK. October 3.-Improve-
ment in the securities market, with ad-
vanceS somewhat more marked during
the early part Of trading, may be at
tributed primarily to two developments
which appear to have been accorded a
favorable reception. The response mar
ketwiSe should have been more i'm
presSive. These developments include
the agreement on the four-party con-
Solidation Of Eastern railroads, and the
absorption of the Bank of America by
the National City Bank
The plan to consolidate the Eastern
carriers was reached last December,
but a number of problems remained to
be solved, relating chiefly to the allo-
cation OF trackage rights TO conflicting
interests These differences are under
stood to have been ironed out. thus
bringing TO an end years OF discussion,
which was interrupted by the publica-
ton Of a fve-system plan for the East
ern roads by the Interstate Commerce
Commission in December, 1929. The
recent weakness in the market has
, given the trunk lines ample opportunity
to acquire blocks OF shares in systems
which they will acquire under the plan.
Bank Merger.
The combination of two of the old
est financial institutions in the United
States will result in the creation OF an
ente! prise whose combined resources
will be exceeded in the United States
only by the Chase National Bank. The
plan will become effective only II IS
per cent of the Bank Of America stock
is voted favorably, on or before Oc-
tober II.
According to Elisha Walker, head NJ
the Transamerica Corporation. in whlch
lies the Bank of America control. the
proposed merger should tend TO restore
the ownership of the control OF the
banks directly to the people OF the re-
Spective localities served and thereby
obtain the greater BENEFITS which, as
experience has shown, come TO the
banking institutions from local control
and sponsorship. He also pointed out
that direct community ownership is the
strongest guarantee OF continued pup4c
favor and support.
If the merger is favorably acted upon.
Transamerica will have substantial
interest in one of the countrys largest
! banks. instead of controlling interest
in a small institution.
It would not be surprising If further
bank mergers would be put through in
the not distant future.
Dual Money Standard.
Sound economists will approve Wash
| ingtons intimation that any EFFORTS 10
impose a dual money standard upon
the country will be resisted. The solu-
ton of the existing problems does not
lie in the adoption OF olmetaIism 4, pc pc
, cause of the fluctuation in the price OF the
metal. which. If adopted as a monetary
unit. would merely tend to aggravate
an ALREADY serious problem. This. OF
course, does not mean That staolllza-
| ton in the price of silver would not De
OF immeasurable aid to world recoV-
cry, but this applies to other metals ana
| commodities as well.
Columbia Gas g. Electric.
Due to depressed industrial and sea
sonal conditions the revenues OF the
/ Columbia Gas & Electric Corporation
| during the past two years nave Deeh
affected adversely, according TO Pnlllp
| c. Gosler, president.
However. these declines are oeing
largely offset by operating economies,
which are not fully reflected in the
/ earnings. Mr.. Gosler adds that under
the most adverse conditions yet en-
| countered the earnings per snare o!
| common stock have been in excess OF
| $3.50 on the number of shares now OUT
standing and are equivalent to the
present dividend rate.
Corn Products Refining.
! Because of several outstanding con-
| ditions no material increase in the
business of the Corn Products Refining
| is expected, according to j. w. BlrS-
ham, trafic manager of the company
and chairman of the Corn Products
Committee of the Midwest Shippers
| Advisory Board.
r. 80; b
of about is per cent for the coming
quarter, as compared with 1880. A good
deal of the decline he attributes to
! prevailing low prices of agricultural
products and the falling of in orders
during August and September, due to
the hot weather and the effect 1t had
upon the manufacture Of candy, for
which Corn Products makes glucose,
and upon the consumption Of table
sirup.
II Mr.. Bingham's estimate Of is
per cent decline Is accurate, as it prob
ably is, it may be of interest to point
out that corn products, at present prices,
represent a decline as compared with
a year ago Of more than 81 per cent.
Tobacco Companies.
There are few enterprises which are
more susceptible to advertising than
tobacco companies. This is amply
borne out by the substantial increase
in the sale Of one of the products Of
the American Tobacco Co., for which
a new advertising campaign was started
less than month ago. AS result.
the company found it necessary to
double the production Of the new brand
and make a substantial addition to the
working force at its plant in Durham,
N c. Although, normally, this de-
velopment should have a favorable ef-
feet upon the shares Of American To-
bacco, today 1t is overlooked or en-
tirely ignored.
| Coca-Cola.
Those who maintain that the return
Of light wines and beer viii AFFECT Ad-
'yersely the status Of the Coca-OolA