The Hardin tribune-herald., 1942-01-01

now paying. Don't speculate in
merchandise. Keep well stocked
on standard goods, but avo.d d
style goods which are hard to
carry over. Initiation is with us
and is gradually increasing pri-
ces at the rate of from 1O-15%
a 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 sudden
ly. Therefore, merchants should
keep close to shore.
RESIDENTIAL BUILDING
WILL DECLINE
Residential building during
1941 increased, as a year ago I
forecasted it would increase.
Hence, I do not like to risk my
good reputation now in giving
a figure for 1912. I believe,
however, that rising costs, scar
city of certain materials and
the provoking way in which
labor has acted is hurting resi-
Dental building. Surely it will
show no increase in 1912 over
1941; while I should not be
surprised if it fell back to 1910
figures possibly TO the extent
of 1919 to 1879. Public works
and highway construction will
be less in 1912 than in 1941.
The building of industrial
plants will continue in good VOL
ume during the first six months.
Pleasure car production will be
cut 50%. 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. Re
member that-as a rule the
curves for residential building,
auto production, and non-de-
fense foreign trade generally
go in the same downward di-
rection.
UTILITIES SHOULD
IMPROVE
The utility industry is basic
ally sould. With a few excep-
tions when high-finance crept
in. the utilities have been con-
servatively and efficiently man.
aged. They have been foremost
in reducing the cost and i'm
proving the quality of their
service. Yet for some unknown
reasons the utilities have been
prosecuted, taxed, sandbagged,
and strangled as never has any
legitimate industry before.
When financial history of the
goth century is written this un-
just and unnecessary abuse -
climaxed with the SEC death
clause" - will be its big black
spot. What of their future?
They will continue to grow and
improve their service. All the
bonds and stocks of the operat-
ing companies should be good
investments. The bonds and
preferred stocks of the holding
companies should sell during
1912 for more than present pri-
ces. What about the common
stocks of the holding compan-
les? Well, those not preceded by
bonds and/or preferreds should
be okay. In liquidation they
should get more than they are
now selling for. AS for holding
company stocks, preceded by
bonds and preferredS, I have
my doubts. Yet some of these
at present prices may be worth
holding. Price fixing should
help the utilities.
WHAT ABOUT THE
RAILROADS?
eteen-fOrty-one has been
the best year that the railroads
have had since 1928. The total
gross for 1941 will be about S.
300 100000 compared with 81
300, 100000 in 1910; while the
net for 1941 will be about $685.
100000, compared with $685.
600, 900 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 to get cut of railroad Sc
curities. Yes, get out and STAY
out. After World War II the
railroads are sure to get an aw-
full licking from shipping, air
planes, pipe lines, auto trucks,
motor coaches, and private cars
OF all kinds. Besides, the recent
railroad wage award is very un-
fair to the railroads. The ICCl
and the Brotherhoods are kill
ing the railroad industry. The
sooner the government buys the
railroads, the better off inves-
tors will be.
MONEY RATES AND
BOND PRICES
Money rates will stiffen dur
ing, 1912; perhaps not apprec-
lably, but some. Certainly any
change that does take place
will pe on the upside. The u. S.
government cannot spend about
$50 billions a year ($575 900 per
second) mostly for fire crack