The Western news. [volume] (Libby, Mont.) 1933-current, 1942-01-01

for cheaper homes as well as for
cheaper cars. Readers who have
real estate which they would like
to sell should make strong effort
to sell it during l942-at least sell
enough to get out Of debt.
What About Retail Trade?
Merchants in the defense areas
should have good year. am not
so hopeful for those outside defense
areas. Certainly, the number OF
sales will be smaller although the
total gross may hold UP. Expanding
the draft age may have dampen-
ing effect on retail trade later in
the year The new draft call may
also cut the labor supply of many
industries. Blackouts are another
factor in retarding consumer buy
] ing. Hence, merchants should in
crease advertising appropriations #
they expect good year IN 1912. l
advise merchants to keep down ex-
penses; avoid wage increases, and
get out of debt. If comeone else Of
fers your employees more money
than you are now paying, let him
have such. After the war they will
come back to you glad to work for
less money than you are now payt
ing. Don't speculate in merchant
disc. Keep we'll stocked on stand7
ard goods, but avoid style goods
which are to carry over. Initiation
is with us and is gradually incre3s-
ing prices at the rate of from 10
Is per cent year Legislation can
check it, but it can no more stop in
flation than can legislation stop
crime. Remember that when the
war stops, it will stop suddenly.
/ Therefore, merchants should keep
close to shore.
Residential Building Will Decline
Residential building during 194l
increased as year agoI fore
casted it would increase. Hence,
do not like to risk my good reputa-
ton now in giving figure, for 1942.
believe, however, that rising costs,
scarcity of certain materials and the
provoking way in which labor has
acted is hurting residential build
: ing. Surely it will show no in
crease in 1912 over l94I; while |
should not be surprised if it fell
back to 1910 figures,-possibly to
the extent of 10 per cent to ID per
| cent. Public works and highway
. construction will be less in 1912
than in 1941. The building of indus
trial plants will continue in good
volume during the first six months,
Pleasure car production will be cut
SO per cent. General export trade,
except for war purposes, will also
! fall off. This will especially be
{ true in the Pacific due to Japan's
attack upon us. Remember that
as a rule-the curves for residen-
: tial building, auto production, and
: non-defense foreign trade general
| ly go in the same downward direc-
ton.
Utilities Should Improve
The utility industry is basically
sound With few exceptions wher
high-finance crept in, the utilities
have been conservatively and eff
ficiently managed. They have beer
foremost in reducing the cost anc
improving the quality of their serv-
ice. Yet for some unknown rea-
sons the utilities have been perse.
cuted, taxed, sandbagged, anc
strangled as never has any legiti-
mate industry before. When fl
nancial history Of the 10th century
is written this unjust and unneces
lsary abuse-climaxed with the SEC
death clause"-will be its big BLACK
. spot. What of their future7 They
: will continue to grow and improve
! their service. All the bonds anc
! stocks of the operating companie!
: should be good investments. Thu
bonds and preferred stocks Of tht
: holding companies should sell dur
ing 1912 for more than presen
prices. What about the common
1 stocks of the holding companies
S Well those not preceded by bond
Y and/or preferreds should be okey
s In liquidation they should get NOR
0 than they are now selling for. A
d for holding company stocks, pre-
o ceded by bonds and/or preferreds
Il / have by doubts. Yet some OF thes'
), at present prices may be Wortl
: holding. Price-fixing should he'll
: the utilities.
4 What About the Railroads!
!, Observation-Disclosures has been Tn
!, best year that the railroads hav
!. had since 1923. The total gross TO
= l941 will be about $4,000, 10000
y compared with $4,300000,000 il
= 1910, while the net for l94l will b
: about 1925, 100000, compared wit
$ S682, 100000 in 1910. The comm
!. year 1912 will show higher figure
both for gross and net earnings
but if So 1912 may be a good tim
to get out Of railroad securities
Yes, get out and stay out. Ate
World War II all the railroads ar
sure to get an awful licking fror
shipping, Mrplanes, pipe lines, aut
| trucks. motor coaches. and privat
cars of all kinds Besides, the II
cent railroad wage award is yer
unfair to railroads. The ICC an
the Brotherhoods are killing tn
railroad industry. The sooner tn
government buys the railroads, III
better off investors will be,
Money Rates and Bond Prices
Money rates will stiffen durin
1912, perhaps not appreciably, bl
some. Certainly any change Thu
l does take plara will no IN the LII