Evening star., 1932-11-24
debts ISSUE HELD
IMPEDING FACTOR
Conference at White House
Put Off Vital Problem,
Writer Believes.
BY DIR. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, November 24-The
status Of political debts remains prac-
tically unchanged. President elect
Roosevelt has seen the President. He
| has discussed war loans. On the basis
| of press dispatch that the talk be-
tween President Hoover and the Presi-
| dent-elect lasted for 10 minutes, the
war debts were disposed of at the
| rate of more than billion q minute.
A new record!
Nothing concrete has been accom-
| plished at the Capital. The world will
have to wait before this problem, which
| constitutes one of the most serious i'm
pediments to the economic recovery OF
nations, will be solved. If those who
, are charged with guiding the destinies
Of the American people were to analyze
the question from purely American
bility conclude that, while cancella-
ton may not be desirable and should
not be resorted to, an adjustment on
the basis Of existing conditions would
be regarded as most constructive step
and would have far-reaching conse-
quences.
In the meantime, conditions are per-
mitted to drift, not alone in the United
States, but the world over. The Sc
curities market displays the same
tendencies which characterized trading
last Summer, notably the months pre-
ceding the spectacular July-August
rally, following the Lausanne Confer
ence. Investors, as well as the trading
fraternity, hesitate to enter into any
commitments on an appreciable scale,
awaiting more definite signs Of a
change either at home or In the inter-
national field.
Earnings Unfavorable.
Weakness in the obligations OF
Youngstown Sheet g. Tube may be at
tributed to the unsatisfactory showing
reported for the first nine months.
Operating income for the period, avail
able for depreciation, taxes, interest,
etc, amounted to less than $500,000,
while the loss, after all charges, aggre-
gated well over $9,500,000. Interest on
the bonds outstanding at about $780,
600, 900 Is not being earned.
Although the financial position OF
youngstown continues strong, with cash
and Government securities amounting
to over $15,500,000, and with current
assets exceeding current liabilities by
about $67 ,000, 600, the question may well
be asked how long the corporation can
go ON paying interest out Of cash and
surplus.
Unless turn for the better sets in
at an early date, the future of the
Youngstown bonds, although adequately
protected by assets, is somewhat un-
certain. Last year charges were not
quite covered. In 1890 they were earned
over three times, compared with seven
and one-half times in 1929, and more
than four times in 1928.
Cudahy Securities Firm.
Relative flrmness in Cudahy Packing
securities, including the common, Is at
tributable to the satisfactory showing
made by the company and its ability to
report, for the fiscal year ending Octo-
Der 81, profits in excess Of dividend re-
quirements of $250 a share.
Action Is scheduled to be taken IN
about three weeks, and regular pay
ment is expected Assuming mainte-
nance of the present rate, the return
on the investment amounts to almost
9 per cent, while quotations are equiva-
lent to about ga times earnings for the
past IL months.
Stockholders will be interested in the
remarks by e. A. Cudahy, jr., chairman
of the board, that while the decline in
prices affected the company's profits
last year, prices are now so low that
it looks impossible to have any further
declines.