The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1942-12-05
. TRADE
WINDS


Security Firms 10
File Reports
BY LOT SCHNEIDER
Business chartlsts say that No
vember's federal reserve board In
dustrial index was 100. against
ISIS for October. and forecast that
December's figure AZ lei. which
would be q gain Of ~ points over
the 1ss average for the like
month last year.
These chsrfists also forecast
that the FRB index figures win
show monthly gains al through
1e43 This In based on the belief
that about 500. ooo. 900. 900 worth Of
armament goods win Be produced
next year.
Margins Of corporate profits for
1913. however. are expected 10
average below ie<2 because Of
government contract negotiations.
higher labor and raw materials
cost and possible new increases in
taxes.
In manufacturing circles the
advices are that certain war plants
may be closed down or the pace Of
production sharply reduced. The
changes in fighting activity and
areas make 1t necessary. But a.
certain plants are closed. others
win have to increase production
schedules.
1t Ia no secret In WPB circles
that there will be q five per cent
reduction in the output of tanks.
artillery and shells and q sharp
pickup in the construction Of ship
building and airplanes.
The closing of plants win ne
cessitate lsyoffs of workers. But
as other plants pick up produc-
ton speed. labor shortages are
likely. II il because of this cross
current that Washington needs
immediate control OF the nations
manpower so that necessary
shifts can be made.
As certain war plants are closed
and workers are laid off. there
viii be a howl out of congressman
under the pressure of labor lead
ers-that something 10 wrong in
the WPB. In fact, that some
thing" already has a scapegoat.
Here's what will happen:
Congress will yell that WIPE
Chief Donald NJ. Nelson never did
get tough" ss he promised: that
the WPB In stili loaded With in
competent help; that In granting
full production power TO Ferdinand
Eberstadt he put the war program
in the hands Of an investment
banker. not one Of production
ability.
The above may sound far fetched
at this time. but wait and see II
II isn't 20. See II the yell doesn't
sweep the nation. So. say indus
trial leaders. the time IL coming
when either Chief Nelson will stand
up for Mr.. Eberstadt. or Eberstsdt
viii have to step out to relieve con-
gressionsl pressure on Nelson.
Net earnings of 400 corporations.
with securities listed on the New
York stock exchange. amounted To
81, 521 ,274, 900 In the first nine
months Of the year. Compared with
earnings Of the like period last
year, II shows a decline Of 1873 per
cent This from the big boards
monthly publication. The Ex-
change. That makes bad reading
TO stockholders.
Here's q more detailed report
from the department of commerce:
Net earnings Of all corporations
for the first nine months Of 1912
totaled about "a, e03. 900 900 against
$3.50. 600. 900 for the like period
last year. That's q dip OF only 5
per cent from a year ago. More
over, income for that period was
40 per cent above the like period
last year before taxes.
The big boards publication says
that none Of the IS common stocks
which had declared dividends with
out interruption for from Is to 40
years failed TO make payments In
the first nine months Of this year.
OF these. 40 per cent voted the
same amounts. 81 per cent paid
less and 70 per cent paid more.
In all. then. the earnings picture
as revealed by the monthly isn't
as bad as painted.
The department Of commerce
figures estimate all corporate earn
ings. not q select few as those Of
fered by the New York stock sx-
changes publication. And the gov
eminent agency estimates that all
corporations viii show no more
than q five To six per cent net de-
cline from last year for is4z.
In other words. high war taxes