The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1941-10-20
TRADE
WINDS"
~ SCHNEIDER

INV s14AAAA 1.sAs-
are rot bearish on Americas busi-
ness prospects. but do lock for a
sharp decline in corporate rev
enues over the next nine TO Il
months. This because the trend
Of industrial production is toward
defense needs and narrowing
down Of consumer goods output.
The automobile and homeware in
dustries are excellent examples.
Bankers say corporate taxes in
the 1912 revenue act may not be
lacked up much and don't expect
Secretary Morgenthau's sugges-
ton of a 100 per cent tax over 6
per cent earnings on invested cap
ital TO take. but they do expect a
high tax on defense production
earnings. with consumer-goods
output reduced to about IS per
cent of industrial capacity-and
on which profits run higher than
war orders-it is foolish TO expect
large corporate earnings.
Banking opinion Is that while
the Industrial production index is
at the highest level in years. mar
gins of profits will certainly not
follow. In all, they look for a
period of deflation in normal busi-
ness activity. All agree we have
witnessed the worst of initiation.
SWAP SALES: The barter sys-
tenn of trade is growing popular
in all industries. War priorities
prevents raw supplies from being
obtained. But some firms have
more than they need In particular
items. Back-door swap sales are
the methods used to overcome
shortages.
FIGHT? = Importers hint that
President Roosevelt is staging a
some-screened fight against the
congressional farm bloc by allow
ing the supply of Argentine but
ter, eggs, meats. etc, to enter the
country. If Argentina may ship,
why not Brazil and other Latin
American countries? And If they
do, it is intimated. that will pre-
vent a skyrocketing of agricultural
prices.
SWTTCH-An investment man.
sger has been switching clients
out of DUPONT shares, at about
$50, into Dow Chemical and Gen.
eral Motors-priced at about SIP
and $40 respectively.
The thought behind the switch
is that Dow Chemical will net
close to IS a share for the year
whereas DUPONT will net only 81 If
dividends from General Motors are
not included.
The switch winds up with a
combined Dow Chemical General
Motor earnings of S12 against a
DUPONT earnings of about SIS
including dividends from General
Motors. This explains recent price
weakness in the DUPONT shares.
RUN FOR CovER-Damaging
Raj air-raids on Nazi and Italian
factories force the run for cover"
into neutral Spain. German and
Italian automobile producers will
establish factories there to pro-
duce 5000 cars annually in addi-
ton to motorcycles and industrial
equipment.
REPORTS ARE THAT-Invest-
ments in Union Pacific retained
because of attractive yield
Cluett Peabody benefits from in
creased consumer spending power
and government buying . 6. Beld-
ing Heminway shifting production
from silk to nlyon and rayon ;.
Pure OILS current earnings war;
rant more liberal dividend policy;
investment trust recent buyer .
Curtiss-Wright's 81 dividend "only
starter" says friends of man.
agement.
Inland Steers 1941 net estimated
at SO after taxes Pepsi-Cola
5O-cent dividend bad news for
those who expected 81; manage
ment conserving cash For
greater trading appeal there's
switching from S. S. kresge into
International Paper common
Plymouth Oil held for attractive
weld and as initiation hedge
Carpenter Steefs operations viii
hold high through defense emer-
gency.
ST. Regis Paper enjoying best
year since 1929 e. Philip Morris
sales expansion may not be a.
large as heretofore, but earning.
/ expected to hold J. I. Case
active on armament parts produe'
ton Republic Steers first nint
months net Will almost equal $3.50
for all of 1910.