Detroit evening times. (Detroit, Mich) 1921-1958, 1942-03-23
Forbes
Rails Gaining
Strength on Hope
Of Rates Increase
BY b. c. FORBES

week and closed. on the average,
where they began. Railway
shares and second-grade railway
bonds exhibited strength, since
traffic is enormous and receipts
will be helped by the recently
authorized higher freight and
passenger rates.
All grains declined, rye suffer-
ing a very sharp loss. The one
buoyant item was pork, on
heavy government purchases for
export. An increasing number of
commodities have reached OPA
ceilings, which means elimina-
ton OF active speculation.
Wholesale prices have touched
the highest level since 1928. The
cost Of living continues TO rise.
The upSwing during the last. II
months has exceeded, according
TO authoritative estimates, 10
per cent.
This has not restricted retail
trade. 1t is running "a per cent
above a year ago.
The financial world has been
finding little incentive for bull
ishness. This is reflected by the
shrinkage in the market value
OF stocks since the year started.
Depressing influences include:
Enormously heavier tax bur-
dens, burdens often exceeding
the earnings available for stock
holders. With still heavier bur-
dens looming.
Divided reductions by a num-
Der OF large companies, melting
gloominess- over what many
other directories may do. in
Guiding directors of corporations
overwhelmed with war orders.
The upward trend in wages
and in cost of materials. d.
Apprehension that the Wash
lngton authorities may make
further concessions to the vast
army of Go automot tive
workers who are demanding
another dollar a day and other
costly exactions. as we'll as over
the stand they may take on the
closed shop.
Despite public pressure on
{ ongre SIS, the outlook for
amendment of the 40-hour week
law is regarded as dubious in
face of administration, union
and other opposition.
The powerful farm bloc's"
fight against the administra-
tons plan TO release part of its
huge commodity SURPRISES to
keep prices within bounds.
Relentless attacks upon hold
Ing companies by the SEC.
Notwithstanding that it has been
recently demonstrated that very
large blocks of operating COM
pany securitie cannot be
marketed except at quotations
ruinous TO the sellers.
Bad war news from the
Pacific.
Peace production is being
curtailed faster than war pro-
duction can be expanded. Result:
serious spread of unemployment.
In face of many complete or
partial shutdowns of large
variety of manufacturing plants.
this condition threatens TO
become worse before it becomes
better. Take General Motors:
Its wage earners today total
only 10000 against a peak of
100000 last year. It's president
is hopeful. however. that six
months from now employment
records will be reached.
President Roosevelt forecasts
a scarcity Of workers in the
fall.
Notwithstanding the rapid
swelling of our military forces.
and notwithsta nd ing the
gigantic expansion of war plants
now under way. this writer can
not but feel that the prospective
clamping down of vast numbers
OF peace-time plants will mean
while throw more men and
women idle than are likely TO
be absorbed within a few
months. Drastic curtailment of
pc a C e. time production has
hardly begun. Labor shortages
will come later.
1t is to be hoped that Con-
gress will speedily enact the
small war plants corporation
bill to provide facilities for
enabling many thousands Of
small concerns TO put them
selves into shape for doing war
work. The war production board
would be empowered to tackle
this task. a task which has not
been adequately performed by
the RFC.
Recent events painfully prove
that we need as much war pro-
duction as possible in as little
time nc pOcSihlo