Evening star., 1932-01-20
Everybody's
Business
Geymany's Fiscal Situation
Gets no Better as Pros
tects Indicate POSTPONE
ment Of Rsfarat'ons Ses-
SION.
BY DIR. MAX WINKLER.

Special Dispatch to The Star
NEW YORK, January 20 (N.AN,A).
The Lausanne Conference, scheduled
to be held Monday is likely to be post
poned It was originally called for jan
uary 18. The various problems per-
tanning to interallied debts and repara-
tions which were to be taken up at the
conference will have to wait
In the meantime the German flScal
situation is not getting better. Short
term credits have already been adjusted,
1t is authoritatively reported. That Is
to say. the Reich's creditors have been
obliged to agree to an extension.
Reparations payments are also likely
to be postponed, thereby putting on
once more the final solution OF a PROB
lem which for nearly decade and
half has been impeding genuine prog
ress and complete rehabilitation OF
the world.
The last year has not been one OF
uniform shrinkage in profits for Amer
ican corporations. Two enterprises
stand out rather prominently in that
they are able to report the best years
in their histories.
One of these rare concerns is the
International Business Machines Corpo-
ration. which, according to Thomas J.
Watson, president, will report 1881
earnings as the largest in the history
of the company, maintaining 10-year
record of unbroken gain in profits;
Auburn Automobile is the other
President E. L. Cord states that not
only was 1881 the best year In the
conpany's history, both In number OF
cars sold and profits, but that 1882
ka fnTpcQ
is based on the fact that retail sales at
three automobile shows held SO far this
month have been about Is per cent
greater than in the corresponding
period last year.
Employees Of the Lackawanna Rail-
road should be treated on the same
basis as workers on other lines, ac-
cording to j. M. Davis, president OF
the carrier, in rejecting a voluntary
offer to accept 10 per cent wage cut
on the part of more than $4,000 work
ers. Mr.. Davis deems 1t advisable to
await the result of the Chicago meeting.
The offer by the Lackawanna force
may possibly be regarded as lore
shadoWing q satisfactory adjustment OF
the wage question.
A somewhat better feeling seems to
prevail in the steel trade. Prices OF
r1anv products have shown hrner
tendency, while orders from the auto
mobile and railroad industries are con-
fidently expected to improve over the
next few months.
Due to the financial plight in which
the carriers find themselves, buying has
been greatly reduced. Any improve
ment in the status of the roads
should, therefore, result in a consldera-.
Bile volume of business to take care OF
repair and replacement needs OF the
various transportation systtms.
1t is not unlikely that the relatively
firm action of United States Steel IN
borrowing is in anticipation of this ana
is not entirely the result, as many
seem to believe, of large short po-
sition which has been permitted to be
built up.
Competent observers maintain that In
the early part Of the first quarter OF
the current year operations OF General
Motors will be on a favorable OASIS IN
comparison with last year, when total
sales in the first three months aggre-
gated 100000 cars and trucks, with
net profits totaling 81 cents snare.
"A
Is such that any improvement in sales
in comparison with 1881 should bring
a still sharper gain in profits, due 10
the larger spread of fixed expenses on
increasing volume.
For the same reason, even II the
volume of last year should be main
tanned, larger earnings may confidently
be looked for, assuming, Of course, the
absence Of some untoward happenings
beyond the corporations control.
The United States is rapidly ap-
preaching, if it has not already ap-
proached, the danger line of financial
stability because of the continued dellri-
Gus extravaganza of Federal, State and
municipal spending, in the opinion OF
2, C. Grace, president Of the Bethlehem
Steel Corporation. Mr.. Grace believes
that salvation resides in reduction OF
taxes.
Reduce the tax bill, he says, both of
the individual and of business, and a
long step will have been taken toward
restoring confidence. He concludes his
observations by pointing out that pros
perity will return only when purchas-
ing power will once more become avail
able and generally used.
The causes of the depression are now
lifting, according to Sir Hugo Cunliffe
owen, chairman of the British Ameri-
can Tobacco Co., basing this opinion
upon the fact that there seems to be a
better world understanding OF them.
AS to his own company, Sir Hugo does
not wish to indulge in prophesies. He
does, however, state that the prospects
of British American Tobacco for the
current year may be regarded with a
degree of cheerfulness lacking last year.
(Copyright, 1882 By the North American
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