Evening star., 1938-08-15
LOAN DEMANDS
HELD ABSORBED
Banks Unable to Look to
Industry for Further
Extensions, Claim.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, Aug. 1s.-According
to q survey of the working capital
position of 50 major and so moderate
sized United States corporations an
nounced today by the New York in
vestment management firm of Young
e. Ottley, Inc, American banks will
be unable to count on industry as
source for the greatly increased loans
recently urged upon them by the Re-
construction Finance Corp.
The whole question" said President
Walter Won Tresckow of Young e.
Ottley, Inc, "is not one of wanting to
lend money on the part of the banks
nor the desire Of the Federal Govern
ment for loans, but one of facts as to
the need for loans on the part of in
dustry."
Our research department has just
completed a study of the working
capital position of so of the largest
United States corporations covering
these 13 major industries: Auto and
auto equipment, agricultural equip
ment, aviation. building products,
chemical, containers, electrical equip
ment. foods, mining. oils, railroad
equipment, retail trade and steel, and
Of 50 moderate-sized corporations i'm
portant in the 13 industries above
and also representing public utilities
and tobacco"
Needs Held Well Covered.
This survey indicates that Ameri-
can industry as whole has working
capital sufficient both for present
needs and for handling substantially
expanded volume of business"
In the aggregate the so large cor
porations had $4,070,354, 900 of net
working capital on December 81 last,
as compared with s3.967,317, 900 at the
end of 1885 and s3,87l ,032 900 at the
end of 1885, gain of 2l2 per cent
over 1896 and gain of per cent
over 1885. These totals are quite sur
prising in the face of the common
expectation that the existence of the
undistributed profits tax would result
in scaling working capital way down
The analysis of the so moderate
sized corporations discloses a similar
situation: s308, ,564. 900 working cap
ital at the start OF this year as against
s3l4.3 900 the year before and $270,-
804 900 two years ago, a loss of 2 per
cent over 1885 and a gain of l3 per
cent over 1885.
Corporations Analyxed.
The corporations which Young A
Ottley, Inc. analyzed were:
Auto and Automotive Equipment
Yellow Truck & Coach. Studebaker,
Mack Truck. Midland Steel Products,
Motor Products Corp, Borg Warner,
Chrysler, General Motors, Goodyear,
Timken r. B.
Agricultural Equipment-Minnea
olis-Moline Power Implement Co.
Oliver Farm Equipment Co., Deere L.
Co. International Harvester
Aviation.-Lockheed Aircraft Corp,
Boeing Airplane Co., Douglas Aircraft,
United Aircraft.
Building Products-Flintkote Co.,
Holland Furnace Co., Masonite Corp,
Certain-teed Products Corp, National
Gypsum Co.. Yale 6s Towne Mfg. Co.,
American Radiator Co. Crane Co.,
Johns-Manville Co., National Lead Co.,
U. S. Gypsum Co.. Minneapolis Honey
we'll Reg
Chemical. - American Agricultural
Chemical Co. Freeport Sulphur Co.,
Mathieson Alkali Works, Inc, New
port Industries, Inc, Westvacs Chic
rine Products Corp, Allied Chemical,
du Pont, Eastman Kodak Co., Union
Carbide Co.
Container Companies.-Crown Cork
L. Seal Co, American Window Glass
Co., American Can Co.. Continental
Can Co.. Ovens Illinois Glass Co.
Electrical Equipment.-Driver-H -Har-
ris Co., General Gable Corp, Square D.
Co., Western Electric instrument Co..