The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-03-19
Trends
Farm Machine Units
Disclose Wide
Recovery.
Recovery.
by ALBERT X. ETTLINGER-.

~ XIV AOksAAs NAdA NAA ~ 4 AEdk
4 y manufacturers of agricultural
machinery were able to make SUBJ
stantial progress in 1885 in the
improvement Of earnings is indi-
Gated by annual reports now being
published. The Case showing was
excellent, exceeding expectations,
attracting large buying orders to
the stock. The Allis-Chalmers
statement, the latest of these TO be
released, moreover, has furnished
further proof Of the accelerated
operations in the industry.
After a succession of deficits, be-
ginning with 1882, the company re-
ported a net profit of S1,985,137
after all charges, the equivalent of
STAT share on its stock, compared
with loss of $1,039, 406 in 1884,
1t was the first time Allis- Chalm-
ers had an annual profit since 1881
and was the best showing since
1880. when income was $3,604,6
While no forecast can be made
concerning resumption of dividends,
continuance of the uptrend in
earnings would enable the manage
ment to take some action along this
line.
A T the close of 1885 the corpo-
IA ration had current assets of
$32,453 ,642. including $3,620,111 cash
and marketable securities, and total
current liabilities of $6,272,788. 1t
was able last year to redeem a $13,-
$4,000 5 per cent debenture issue
and refinance with new convert
ible security a 4 per cent coupon,
thus affecting a saving in interest
charges.
Because of the diversified nature
of its business Allis- Chalmers is in
good position to benefit in 1886
from the anticipated betterment in
heavy industries.
Not only does the corporation
produce tractors for farm and gen.
eral use, but it is an important
manufacturer of other types of ma
chinery, including electrical and
road building. Air conditioning is
another field in which it has OBJ
tanned foothold.
Optimistic forecasts on Fajardo
Sugars earnings for the fiscal year
ending July 81 have done much to
stimulate buying interest in the
stock around current levels. Esti-
mates of as high as SIS a share are
heard in the trade.
NNE of the explanations for
~ poor performance of the rails,
aside from the general weakness in
the market, is that this group may
be discounting an adverse decision
by the Interstate Commerce Com
mission on freight Surcharges.
Little has been heard on this mat
largely overlooked this as a poten-
tial factor. The possibility that the
commission may eliminate these
charges which have added millions
to revenues in the last five years
could easily have been responsible
for the failure of the carriers to
follow up their recent rise.
Stocks that have held well or
have resisted the current selling
drives are attracting new outside
following, which apparently feels
that there must be something of
special bullish Importance in their
situation. Standard of New Jersey,
United States Rubber preferred
and Electric Power and Light are
three issues being favored on this
account.
EOREIGN investment quarters,
Il according to private cables
from abroad, are less concerned
over the Franco-German squat
than the rank and file of traders
here. Nearly all of the oils are
meeting good grade of buying on
scale-down being aided by Jerseys
blue ribbon showing.
Investment trusts, several of
which already are important hold
ers of airplane stocks, are reported
to have extended commitments in
the group on the sell-off. :. New
mont Mining, with more than 80
600 shares of Amerada in its port
folio. acquired at an average of
less than $50 share, is distinctly
beneficiary of the sharp rise in
that issue.
The first real breathing spell in
months is most welcome to shorts
In Chrysler, many of whom are
now covering. Leather stocks
are getting bulliSh mention in an
alytical quarters. This minor in
dustrial group has been relatively
steady on the decline. "Spon-
sored" issues are giving a better
account of themselves than those
which are going it on their own.