The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1943-12-31

Gas rationing doesn't bother
electric company superintendent.
car he built during his spare til
four reverse, it operates on thre
Is miles an hour and 100 miles t.
sometime during 1914 than they
are at present. In case a Repub-
lican President should be elected
in November a big bull market
could quickly develop.
WHAT STOCKS TO BUY :.
Some industrial groups appear
more attractive than others. Build.
ing stocks should benefit from the
expected boom after the war.
John-Manville, Lone Star cement
Eagle-Picher Read hold pros
poets for good postwar earnings
and liberal dividends. Flexibility
of merchandising companies makes
their stocks favorites. I have rec.
cmmended American Stores, Nc.
Crory Stores, Kroger, Jewel Tea,
General Shoe, United Stores 6 pei
cent Preferred and Preferred ga"
The railroad and farm equipment
! groups ought to show better-than
average progress. Favorites in
clude American Brake Shoe, Gen
eral American Transportation
, Baldwin and Harvester; although
postwar prospects convince me tia
selected steel and iron issues hold
appeal. U. S. Pipe Line & Foundry
should benefit from building. Re.
public Steel S. Pfd. "a" offers
liberal income. National Steel and
Allegheny-Ludlum are sound is.
sues. Electrical equipment should
experience heavy postwar demand
General Electric is the outstand
ing leader.
The government forbids a cor
|poration to manipulate the price
LOT its securities but the govern
ment is using artificial means t.
force down interest payments need
ed by widows, orphans and other:
dependent upon savings or life in
surance. This is unfair. Govern
ment Bonds dominate t h high
grade field. Corporates are being
called in increasing amounts. In
stitutiona1 investors and trustees
have to bid very high on the few
remaining corporates or buy Gov
ernments. In view of the rela
lively greater risk in corporates
favor combining high-grade bono
purchases to the E, F and C Wal
Series, preferably Els. Otherwise
hold cash. Municipals are toe
high.
expect no near-term shift ir
interest rates. They may remain
low as long as government financ
ing must be carried on in large
volume, or as long as restrictions
are placed upon the expansion oil
business to meet civilian demands
and the money hoard continues tt
grow When the readjustmen1
comes the investor should not be
tied up in long term, low-coupor
bonds. Current yields on better.
grade issues have b n forced
down too low Investors looking
for liberal income are, therefore,
buying cumulative preferreds.
Such issues are also in favor with
investors skeptical over the gen.
eral trend of common stocks; but
the field is very salective My
usual advice is to buy only first
mortgage bonds or else common
stocks of companies with no Gu
mulative preferreds.
TAXES
There may be small increase
in 1914 taxes. This increase will
hurt only a few industries through
increased excise taxes. n m e
taxes, inheritance taxes, gift tax
es, and probably corporation taxes
will remain about where they are
lowered. Furthermore, 1874 may
be the last year of tax misery.
Taxes should begin to decline in
1915. Investors should especially
keep in mind that--When excess
profit taxes are eliminated-many
corporations can make more mon
ey and pay more dividends with
much smaller gross earnings.
POSTWAR JOBS
Men and women who left jobs
to enter the armed forces should
have no trouble getting jobs when
they return. Those who entered
the armchair forces at Wash
ington or elsewhere may have real
trouble with getting postwar jobs.
Men who were unemployed when
they entered the armed forces will
get postwar jobs based on their
war record and behavior. Charac-
ter and habits will be an impor-
tant consideration. Men and wom-
en- who left employers in the lurch
to get more money or thrills may
be left high and dry when the
war is over. There will not be a
good job for everyone after Ger
many cracks. In fact, there will
begin to be unemployment when
Rumania, Bulgaria or Hungary
give up, which I expect fairly soon.
POLITICS AND INITIATION
Unless Germany collapses before
I