The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1942-01-01

He YPslLANTl DAILY PRESS, YPs
ton, and non-defense foreign
trade generally go In the same
downward direction.
Utilities Should Improve
The utility industry is basically
sound. With a few exceptions
when high-hnance crept in, the uti-
lities have been conseryatively and
efficiently managed. They have
been foremost in reducing the cost
and improving the quality of their
service. Yet for some unknown
reasons the. utilities have. been
prosecuted, taxed, sandbagged, and
strangled as never has any legiti-
mate industry before. When a fin
ancial history of the Goth century
is written this unjust and unneces-
starry abuse-climaXed with the
SEC death clause be its
big black spot. What OF their fu-
ture? They will continue to grow
and improve their service. All
the bonds and stocks OF the Operat-
ing companies should be good in
vestments. The bonds and pre-
ferred stocks Of the holding com
panies should sell during 1912 for
more than present prices. What
ahOut-.th common stocks of the
holding companies? Well, those not
preceded by bonds and-or prefer
reds should be okay. In liquida-
ton they should get more than
they are now selling for. As for
holding company stocks. preceded
by bonds and-or preferreds, have
my doubts. Yet some Of these at
present prices may be worth hold
ing. Price-hXing should help the
utilities.
What About the Railroads?
Nineteen-forty-one has been the
best year that the railroads haze
had since 1928. The total gross
for 1941 will be about $780, 100000
compared with S4,300,0O0,OO0 in
l940; while the net for 1871 will
be about 1925, 900, compared
with S6S2,000,000 in 1910. The
coming year 1912 will show higher
figures both for gross and net
earnings; but If SO, 1912 may be a
good time 10 get out OF railroad Sc
curities. Yes, get out and stay
out. After World War ii the rail.
roads are sure to get an awful lick
ing. from shipping, airplanes, pipe
lines, auto. trucks, motor coaches,
and private cars of all kinds. Be.
sides, the recent railroad wage
award is very unfair to the rail
roads. The ice and the Brothe.'-
hoods are killing the railroad in
dustry. The sooner the govern.
ment buys the railroads, the better
off investors will be.
Money Rates and Bond Prices
Money rates will stiffen during
1912; perhaps not apffeciably, but
some. Certainly any change that
does take place will be on the up.
side. The L. S. government can
not spend about $50 billions a year
tS575,0O0 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 ultimate
ly means higher yields for govern.
ments and corporation Jonds. Ger
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-
tlnue to swing. The present de-
cline in gold imports foretells the
next swing. Gold imports are now
running only rs per cent of 1910,
while loans are increasing.
Cost of Living
The official government cost.of.
living figures, which will be publish
ed during 1912, will show a small
increase each month. The reason
is that these figures must cover
the same items, brands, and grades
in order to have them useful for
comparative statistical purposes.
As a practical matter, however. a
family can switch its purchases
from sirloin steak to top-of-the-
round without any increase in the
cost-of-living. The same family
can cut down on desserts and save
money on both food and dental
bills! Hence. there need be no
increase in the cost-of-living for
wellmapaged families during 1912.
This is especially true as Is per
cent now goes into the garbage
pail Of is wasted in other ways.
Will Wages be Frozen?
Some engaged in the defense in.
dustries may get wage increases
during 1912; but not more than
enough to Offset the rise in the gov
ernment's cost-of-living indices.
Certain concerns engaged in the
non-defense industries will be oblig-
ed to pay key people a little more
to hold them. The great majority
OF workers in the non.defense in.
dustries will get no increases in
1912, while some will get their
wages reduced. The year 1871
saw. the peak of strikes and wage
INCREASES, The Canadian labor
policy: may be adopted by our