Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-15
YUGOSLAWAN LOAN
PLAN IN JEOPARDY
Political Factors May Pre-
vent Advancement of
Credit by France.
BY JOHN F. SINCLAIR.

Special Dispatch to The STAR
NEW YORK, April 15.-Negotiations
in Paris for a French loan to Yugo-
slavia, similar to those France already
has advanced to her allies in Eastern
Europe, Poland and Rumania. appar-
emily have reached an impasse on the
question of the old Ottoman debt. At
the close of the war the public debt OF
the new dismembered Turkish Empire
was divided among the countries in
heriting slices of her territory Yugo-
slavia was held responsible for 5A per
cent of this debt under the treaty
of Lausanne. Since she was not rep
resented at the formulation OF that
document Yugoslavia has never ac-
knowledged this obligation and large
portion of the Ottoman creditors are
French, who seem determined to coll
1ect.
The French government now wants
Yugoslavia to accept her share OF the
ottoman debt as a prerequisite to
loan of $40,000.000. Banking circles,
on the other hand, feel that 20
litical issue is being forced into
purely financial question and fear that
unless France acts without delay Yugo-
slavia will be drawn into the orbit OF
the Austro-German economic bloc.
The latter combination is certainly
sapping French economic influence IN
a way that will weaken, not only her
political influence, but her economic
connections with Central and Eastern
Furope. The Soviet threat has hitherto
kept several of these countries in East
ern Europe close to the French aid and
protection. but they may now md II
more practical to cooperate with the
Austro-Gerlnan Zollverein on one side
and Russia on the other, as a more
easily controlled defense. No wonder
Moscow appears as elated as Paris
looks depressed over the possible defeat
of a French-inspired economic blockade
around the Soviet Republic!
Utilities Earnings.
While utilities. especially electric light
and power, are maintaining their Levels
in most of the country, even increasing
in some sections. those operating IN the
East and Northeast industrial areas con-
tinue to move on lower levels indicating
little change in the general nlanufac-
turing scene. The Philadelphia Co..
with gross earnings 1888 per cent below
the previous year, as shown in the re-
cent annual report, Is an example.
The net earnings of this company, IN
fact. show a decrease of 4.38 per cent.
Total gross earnings were over SCI, $780,
900 and net earnings about $31,470,OOO.
These statistics are not, of course, synp-
;omatic of any weakness IN the organize
ton. AS a matter of fact, its stock,
after deductions for depreciation and
payment of dividends, stood at $2.55
share as compared with $2.51.
The Philadelphia Co. system IS made
I'D of four subsidiaries supplying light,
heat and power. Since industry around
the Pittsburgh territory is diversified,
the. earnings are not as low as they
might have been with plants located in
districts identified more or less with a
to be expected as a reflex of general
conditions in an industrial province.
Stock Holdings Adjusted.
Announcement that Incorporated In
Vestors has increased the value of its
stock holdings by adjusting them TO
market prices is an indication that in
vestment trusts are gradually, though
with reluctance, getting back into the
path of realism. Incorporated Investors
has done the handsome thing getting
down to bedrock by first writing of the
fictitious value of its portfolio and then
squaring matters by marking down its
capitalization. The happy result is APP
parent in an increase in stock value
that, while not large is bonaf1oe.
Different trust companies are adopt
forlorn hope of bull market that would
enable them to stave of reorganization
of their books until they had chance
to recoup losses. The abandonment of
their former Alice-in-W Wonderland atti-
tude toward the drab facts will serve to
restore them, according to the funda-
mental soundnesS of their various stock
portfolios.
Some are making a move to establish
10 I'D ~ nf cir
holders, as in Great Britain; others
have taken reductions in capital sur
plus or drastically revised their divt-
dend policies. Several have accepted
decrease in earnings or net asset values.
But one and all have been brought to
the point where the coal bucket at the
door is being taken up for use instead of
hunting the pot Of gold at the end Of
dubious rainbow.
Schwab Wins Fight.
Charles M. Schwab emerged yictori-
Gus after a violent fight over bonuses at
a stockholders meeting on Tuesday
afternoon, 70 per cent of the proxies
voting for the management. This may
net prove to be the triumph it seems,
however, as the battle is due to be con-
tinued in the courts.
But this preliminary skirmish had
plenty of action and color. The ruler Of
the Bethlehem Steel Co. was scorched
with invective from a woman stock
holder. but preserved his Olympian
calm and ineradicable smile. He was
charged with wasting the stockholders
money and golfing in the Sunny South.
When Mr.. Schwab invited the woman to
come over and sit down beside him to
talk it over, she replied: mo thanks, 1
can see enough Of you from here!"
The bonus issue will be decided finally
by law and precedent. Its too important
70 be decided in rush
Copyright. 1891. by the North American
Newspaper Alliance