Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1942-01-08
WHAT. ABOUT THE
RAILROADS

DeSC year CnaC Tie railroads nave
had since 1928. The total gross for
1941 will be about $1,000, 000, 900
compared with $4,000 100000 in
1910; while the net for 1941 will be
about 1925 OO0, 900, compared with
1852, 100000 in 1910. The coming
year 1912 will show higher figures
both for gross and net earnings;
but if so, 1912 may be good time
to get out of railroad securities,
Yes, get out and stay out. After
World War II the railroads are
sure to get an awful licking from
shipping, airplanes, pipe lines, au-
to trucks, motor coaches, and pri-
vate cars of all kinds. Besides, the
recent railroad wage award is very
unfair to the railroads. The ICC
and the Brotherhoods are killing
the railroad industry. The sooner
the government buys the railroads.
the better off investors will be.
MONEY RATES AND BOND
PRICES
Money rates will stiffen during
1912; perhaps not appreciably, but
some. Certainly any change that
does take place will be on the up
side. The U. S. Government can
not spend about 80 billions a year
5000 per second) "mostly for
fire crackers" without an ultimate
strengthening of money rates even
though one-half Of the sum is
raised by taxation. This ultimately
means higher yields for Govern
ments and corporation bonds. Ce.-
tain medium-grade bonds should
sell at higher prices during 1912
The money-rate pendulum has
swung from high to low and vice
versa for 1000 years. 1t will con-
tinue to swing. The present de-
cline in gold imports foretells the
next swing. Gold importers are
now running only $3.50 of 1910,
while loans are Increasing.
COST OF LIVING
The official government cost-of-
living figures, which will be pub
lished during 1912, will show a
small increase each month. The
reason is that these figures must
cover the same items, brands, ano
grades in order to have them use.
full for comparative statistical pur,
poses. AS a practical matter, how.
ever, family can switch its pur.
chases from sirloin steak to top
of-the-round without any increas,
in the cost-of- living. The same
family can cut down on dessert!
and save money on both food an,
dental bills! Hence, there need b.
no increase in the cost-of-living fo1
well-managed families during 1912
This is especially true as 15%
now goes into the garbage pail o.
is wasted in other ways.
WILL WAGES BE FROZEN
Some engaged in the defense in
dustries may get wage increase,
during 1912; but not more thai
enough to Offset the rise in tn,
governments cost-of Living in
dices. Certain concerns engaged il
the non-defense industries will b,
obliged to pay key people a littl,
more to hold them. The great ma
jority of workers in the monde
Tense industries will get no in
creases in 1912, while some will ge
their wages reduced. The yea
1941 saw the peak of strikes an,
wage increases. The Canadian la
Dor policy may be adopted by on,
Congress. The law of supply AM
demand is still working. Cost-of
living in the defense areas ma,
have already seen its peak. The
new workers who are flowing into
these areas may so food the mar
4 ket as to prevent further wag,
raises. Besides, I'm in hope tn,
government will issue a supple
mentary table of living-costs af.el
providing for switches in purchas
ing and waste Examinations.
WHAT WILL CONGRESS DO?
Ny forecast year ago as t.
what Congress would do in 1911
was 1000 correct Now, / am ever
surer of my ground. When Con
gress declared war it performed it:
most important single act unit
peace comes. From here out it will
become of necessity somewhat o.
a rubber stamp. War emergency
powers of the President will re
quire but little action ON the par
of Congress. Remember that Their,
are important Congressional Elec