Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-26
Everybody's
Business
Railroad ExeeutiOes Believe
a Reduction Of 10 Per
Cent IN Wages Is Nee
sssGry, says D. 8 II.
Official.
BY DIR. MAX WINKLER.

ecutives that reduction Of 10 per cent
should be made in wages, according to
r. w. Leamy, vice president Of the Del
aware & Hudson and secretary of the
Eastern railroad presidents conference.
The railroads, says Mr.. Leamy. would
naturally prefer to have reductions
made through voluntary action by labor
and there would be some advantage to
labor in such a procedure. If, on the
other hand, the attitude of labor toward
voluntary reduction is negative, the
presidents will be obliged to undertake
reduction in wages under the pro-
cedure provided by the labor provisions
Of the transportation act.
Seeks to Maintain Wages.
The Standard Oil Co. of Indiana
wants, If possible, to weather the storm
and be able to say that it was among
the corporations that did not cut the
wage scale, according to Edward G.
Schubert, president.
Mr.. Schubert adds, however, that no
sane management can go through times
like these, when low prices have Sc
riously reduced incomes, without con-
Sidering reduction Of wages as one pos
sible means to effect necessary reduc-
ton in cost of operations. The situa-
ton, he continues, may force the COM
pany eventually to resort to that eX-
IRENE measure.
Decries Public Ownership.
A warning against the heavy hand Of
government in affairs of the power in
dustry is issued by j. S. Tritle, vice
president and general manager OF the
Westinghouse Electric & Manufactur-
ing Co.
Except for equitable supervisory pow
erS, continues Mr.. Tritle, the Govern
ment must be kept out Of the affairs
Of the country's great utilities through
the creation by the latter OF public
sentiment that will make itself felt
at the very seat Of the Government 50
forcibly that vote-Seeking politicians
will not dare to uSurp the right of the
utilities to life, healthy growth and
prosperity guaranteed every one under
the Constitution.
Scaling Down Share Value.
The proposed change in the capital
structure of the Gillette Safety Razor
Co. should remove an important obsta-
Gle in the way CT resumption Of divi-
dends on the common stock, says
Gerard B. Lambert, president.
The plan contemplates scaling down
the value of the shares from $15.86 to
$3.50 and transferring the difference to
CaplLdl surplus. al IlLo way MA . Lc'A1A-
bert points out, the company will be
able to make necessary charges in con-
nection with the various contingency
reserves and do away with the policy
adopted In April of this year to charge
$500, 900 for ordinary obSolescence,
which, If continued, would render 1t
difficult for shareholders to get true
perspective Of the company'S earnings
and might preclude the payment OF
5fIyf[ For
come.
Outlook for Sugar.
A somewhat more optimistic view
may be taken in regard to sugar, which
has been declining steadily in the face
of appreciable gains registered by most
leading commodities. The world beet
sugar crop for 193l-1932 Is placed at 10
per cent below the previous years flg-
ure, while raw sugar production is esti-
mated at 3 per cent below the 1880
1881 output.
Competent observers maintain that
there is no reason for apprehension over
increased production in Russia, because
the Soviet government Is understood
20 be short of beet seeds. The current
crop of the latter is regarded as a fall
ure and it is doubtful whether Russia
will be in position to import seeds In
sufficient quantities to enable her to
play a very important factor in the
Tobacco Shares.
Liquidation which has been in evil
dence recently in tobacco shares Is
doubtless due, in part at least, to the
decline in cigarette production for Oc-
tober, amounting to more than ID per
cent, as compared with the same month
last year. The shrinkage may be as
sumed to be the direct result OF an in
crease in the price of cigarettes effected
about four months ago, which was fol-
lowed by the levying Of additional taxes
on cigarettes by number Of States.
It may be Of interest to point out
that the company which introduced
new cigarette at q price below that of
other manufacturers Is continuing to
register very marked monthly gains In
sales.
BIames War for Slump.
The crises of important industrial ma
lions is not the result OF normal in
naturalization Of backward countries.
but is due chiefly to the sudden i'm
poverishment caused by the war, &C
cording to M. ManoileScu, minister OF
industry and trade Of Rumania.
If the eastern countries OF Europe,
continues M, ManO1leScu, naQ progressed
normally in a period of uninterrupted
peace, they would have been able to
create industries for themselves, thereby
increasing their purchasing power and
becoming important consumers OF the
industrial products Of the great powers.
In this way the economic equilibrium
would not have been upset and the
great industrial nations would have
avoided the crises in the grip OF which
they find themselves today.
ShOrt-Term Loans.
Regardless Of the desires Of lenders,
short-term debts are very often con-
verted into long-term obligations. The
Argentine province of Santa Fe is the
latest example. In February Of this year
90-day credit of $5000,000 was ar
ranged with New York bank. In May
1t was renewed for another 80 days at
1855, the credit bearing interest at 6
per cent per annum At the end OF
august the issue was renewed for a
second period Of 80 days at 1885, the
province availing itself Of the option
contained in the contract.
In addition to the above credit, which
has not been placed with private in
vestors, Santa Fe has outstanding a
long-term dollar debt, which Is traded
in on the New York Stock Exchange, on
which the service has so far been met
promptly.
(Copyright. 1881. by the North American
Newspaper Alliance, 1nc)
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