Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-24

II a combination Is effected, It is
likely that the shares of the two COM
panies will be treated equally, II one
is to judge by quotations which. for
some time past, have been practically
identical even though. from the stand
point of earnings, the California COM
pany makes somewhat better show
ing. For the past year its net per
share amounted to $2e3 Is against
$l.65 for the Jersey company, while
the average net per share for the past
four years was 5000 for the Jersey
concern, as compared with 1886 for
the Standard Of California.
However, the contamination OF this
merger as well as the one planned by
a number of companies under the de
rection Of Harry r. Sinclair viii de-
pend on the attitude of the Department
of Justice. The latter Is reported TO
plan an investigation with q view to
determining any possible violation OF
antitrust laws.
Drugs Picking Up.
Drug, Inc, is having its most pros
porous year, according to George M.
Gales. vice chairman of the company
and president of the Louis K. Liggett
Co. Of chain drug stores.
Returning from q Nationwide tour,
Mr.. Gales finds that New England
continues 10 show a relatively greater
degree OF stability with signs of fur
Their improvements; that New York Is
responding to the pickup. and that
conditions In the South are materially
better. The situation In the West,
however, the great farming section,
continues poor, according to Mr.. Gales
observations.
Is Eaton Coming Back?
Is Cyrus S. Eaton coming back? The
formation Of a new corporation, in
which he is the leading figure, under
the Delaware laws. with capitaltza-
ton Of 5000 shares, would seem TO
indicate that the Eaton sun has not
set. Many recall the meteoric rise Of
Mr.. Eaton out of quiet Canadian
town, not so very many years ago, as
well as the litter battle he waged
against. the merger Of the youngstown
and Bethlehem Steel Cos. He Is q
very resourceful man, and If he does
return to power he Is likely to prove a
wiser and more peacefully disposed
person than he formerly was.
Foreign Investors Beware.
To the losses which holders of for
eign bonds have thus far incurred as a
result of the disastrous decline, new
dificulty has been added, against which
a timely warning is in order. Many
overenterpriSing American brokerage
firms are employing high-presSure sales
men to canvass holders Of foreign bonds,
especially among the country banks
with viey to obtaining these holdings
g. - arlwa frrff
others seemingly selling out of line.
The knowledge on the part of the
average American investor in foreign,
securities is admittedly restricted, which
accounts for his being easily impressed
by sales talk, which, to the uninformed,
conveys the idea of understanding of
and familiarity with the foreign Sc
curities problem.
France Expands Activities.
France is gradually expanding her
activities, adding new fields by means
of the gold which the Bank of France
has succeeded in building up and which
today ranks highest in the world, next
to the United States.
The Baltic republic of Latvia is about
to get accommodations in France The
Schneider Creusot concern, the United
States Steel Corporation of France, is
about to grant the republic credit OF
$4,000, 900 10000, 900 lats) for the pur-
chase of railway materials, and an adj
ditional cash credit Of 100000
Apparently the default of the bonds
Of the City Of Riga, capital of Latvia,
and Of the bonds of the Wolmar Rail-
way, guaranteed by the government,
does not interfere with the French plan
to do business.
Uruguay Takes Drastic Step. !
While many Americans may derive
satisfaction from the fact that their
country's stock Of gold Is the highest
In the world. they ignore the conse-