Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-19
Everybody's
Business
Renewed Pressure in Securities
Indicates Vicious Raid, Helped
by Adverse News.

York securities market throughout the
greater part of yesterdays trading Is
attributed primarily to selling for
European account. This Is only partly
true. Those who know Europe know
better.
The Old World Is less subject to the
whims and moods than the younger
and more temperamental continent.
The renewal of pressure bears all the
earmarks Of q vicious raid, which has
helped materially by combination OF
adverse news, both domestic and
foreign.
Among these adverse reports, England
once again occupied the center OF the
stage. Too much emphasis Is, however,
laid upon the fact that substantial
part OF the recently granted credit has
been used up and not enough attention
is paid to the victory of the Macdonald
government on financial resolutions
relative to the reform OF the unem-
ployment dole.
The alarming statement by the
Finance Committee of the League Of
Nations to the effect that the present
crisis may become more acute and
widespread did not help the situation.
The wisdom of such statements at this
time may well be questioned.
Van sweringen Puzzle.
What e called the Van Sveringen
situation Is admittedly one Of the most
interesting and at the same time most
puzzling facing Wall Street today. A
few years ago the name Van Sweringen
and the meteoric rise in the railroad
field Of the Cleveland wizards filled
every American with surprise. Within
a relatively short period OF time they
1.
Those familiar with the operation and
management of American railroads
likened the Van Sweringens to all those
great Americans who had played such
3 prominent role in the development
of the country's carriers.
Amid the noise of fanfare and drum,
the various projects evolved by them
were launched by Wall Streets leading
1inanciers. 1t was q privilege and a
rare distinction to be invited to partici-
pate in the various deals. Chief among
these was the Allegheny corporation,
created in January, 1929, by o. P. and
M. j. Van Sweringen, to take over from
themselves and associated companies
certain stocks of railroad companies
and engage primarily in the business Of
investing. directly or indirectly, In rail-
road securities.
A syndicate of American banking
houses, than which no better are
imaginable, offered to the public col
lateral trust per cent bonds, rnatur-
ing in 1914, 1949 and 1850, at prices to
Weld 5 per cent or slightly In excess
Of that figure, to an aggregate amount
of $85, 100000 There was also offered
51S per cent preferred stock at 100,
and common stock at "a. Today, the
above securities constitute, as regards
quotations. mere shadow of their
former grandeur. Some Of the 5 per
cent bonds sold as low as "a; the pre-
ferred is down to 10, and the common
sells below 4.
The entire Van sweringen picture
would seem to require adjustment, and
it is believed that good deal Of the
pronounced liquidation in evidence re-
Gently, may have been due to the exist
ing uncertainty in connection with the
various Van Sweringen enterprises.
Those who have played so prominent a
part in making possible the phenomenal
expansion of the Van Sweringen activi-
ties, have as yet done little, when their
aid Is most needed.
Reading Common Recovery.
Only after selling down to the lowest
level In more than two decades, Read
ing common recovered somewhat,
largely as a result of short covering.
It would seem that little or no at
tention is paid to past performances,
which, after all, should constitute a
guide to the future. During the past
three years, Reading reported aggre-
gate profits on the common Of almost
$22 q share, and even II 1881 shows
very little or no profit on the common,
the securities appear unduly depressed,
unless. of course, one assumes that the
railroad situation in the United States
has reached a point where no measure
of relief can restore the carriers to
normality-a hypothesis which the best
informed financiers reject unquali-
fiedly.
Consumption of food declined only
per cent, as compared with a shrink
age in corporation profits OF about 40
per cent, according to Lewis w. Waters,
vice president Of the General Foods
Corporation. In other words, the food
bill Of the American Nation has not
been affected very materially by gen.
eral business conditions.
Mr.. Waters advances the rather
optimistic thought that the projected
DEVELOPMENT of low temperature freez-
ing of goods was strong potential
factor for helping to relieve the de-
preston.
The fact that farmers among the
main part OF the Burlington SySVem are
financially able to hold their grain is an
encouraging sign, according to r. O..
Williamson, president of the road.
Mr.. Williamson ascribeS this situation
to the principle of diversification prac-
ticed by farmers in the Burlington dis
trict, contrasting with conditions in the
Southwest, where growers, depending on
grain alone were forced to rush their
crops to market Immediately after their
harvest, regardless of the price offered.
New Product Pushed.
According to a reliable report emanat-
ing from Sweden, Thomas Edison, Inc,
has acquired the exclusive right to
manufacture and sell in the United
States the product Of the Swedish PulVis
Transmission Co. Of Sweden and has,
for that purpose, organized together
with the Ramsay Chain Co. a new con-
Germ called the Transmission and En-
cheering Co., in which the swedish
concern Is also represented.
From the same source, 1t Is learned
that the leading Swedish wireless COM
pany. Aga Baltic, has been appointed
exclusive representative for the Scandi-
navian countries and Finland OF the
Hazeltine Corporation Of America.
OF the seven South American repub-
lies which thus far have obtained f1nan-
cial accommodations IN the American