Indianapolis Times, Indianapolis, Marion County, 22 May 1949 — Page 53

7 8 Y { : © SUNDAY ea The oy 22, 1949 THE INDIANAPOLIS TIMES PAGE 53 he Week in Business 6... Stock List Hits Loca! Women Take Course On Investments On the Farm— «i ye LR i on ne i £ ll an Sales Slowdown Due A = ; Sutficien} Moisture Remains i . : : is Sate: To O duction: New Lows in Problem to State's Farmers 1 verpro uction . | Oats, Pastures and Berries Endangered; ‘ Deo ro I inves Decline owndri TH Agricultural Income Continues ne ft Caused by Inabili ty By HARRY MARTIN, Times Farm Writer ; . <Appear : To Buy All We Can Make ; 1! Indiana farmers breathed a brief sigh of relief last Thursday Saturday . ” No Serious Recessi {when showers dampened their powder-dry corn fields. The raim, By HAROLD H. HARTLEY, Times Business Editor on . {spotty and insufficient, helped, mostly in the north. 1 his Auto BUSINESS is searching the gathering shadows for the] Seen; Industrial §| In the south portion of the state the rain was light. But it their last . dim outline of an invisible spook which i igh the farmers in the northern counties got the benefit of as much as rear on Bex ttle on the of ch is tightening. Output Holds Firm | |an inch-and-a-half of moisture in the Ft. Wayne area. 7 nigh thro flow of gross receipts. ELMER ALZER | Last spring, Hoosier farmers] t Speedway. Actually there is eed i ured Rese Peanut, had too much rain and had er cattle, plus high prices of Acheditled for there 0 spook > fy £0 squint Into the shadows) NEW YORK. "May ai trouble getting their crops into feed and Wayt Mi d Thursday, retreated during the past week to | ry ay the closing But, quite visible in order pets er executives and board new jows for a month on mod- jthe. Sosking Boll ares this year {armer. the Sound vr whicke name el books and warehouses, there| Business counted on a big erate JusHoves. i nat : jare also suffering, and COmmer- ing beef cattle fast, buy , i April pickup. There ick-| On Monday, the market round lclal berry growers were talking] » 0-mile 2200. is a self-created Frankenstein Pickup, Ne on PICK led out five days of advance with lopenly of “a failure’ unless they "3 Sell them whenever you can. sh-roll in a who, when unmasked, is simply up but it was far the a million-share sessio This heny | too much healthy, robust rise which had n. get moisture. ues the roll much production for the de-|peen expected. Manufacturing, ise had followed five sessions of The U. 8. Agriculture Depart- Dodge Invites Families er runs. picted residue of post-war de- especially in metals and textiles/decline which in turn had fol- ment added to the farmers’ woes, Of Work to Plants isting of 27 mand, (principally cotton), continued to|lowed five of rise. Thereafter reminding tillers that their in: oricers an wood’s race The general direction of busi-taper off. Department store sales|the list declined steadily for the {come is still dropping. | Two Indiana plants of the h through a nese os unchanged. It is stillirose 4 per cent the last week in|full sessions and dealings light- Purebred Herds Pay Dodge Division of the Chryster eT, 8 motor. ng down toward a healthy April but were still following the ened. Eggs were a source of trouble, | COP, Will take part in “Dodge idair, and a normal with contingent adjust-jagged downward curve which] While actual market operators too. The Government warned of Family Day," Sunday June 5. by four cars ment pains shortening the tem-|started last October. were reported as bearish, indus- a ‘surplus with trainloads of! Families of the 100 workers in ° igur _ {trial - production held well, and : read {the Dodge transmission plant at ising Figur es Talk oe lle fin In men new predictions were heard that Jonueed wes ul of Yo rag | Kokomo and of the 3300 who s down, found they had risen $50 million to a total of $54 billion, and |there would be fio recession of {larger than ever, | make font end assemblies, Steers retailers had $500 million more tied up in selling stocks. . |consequence in business—merely But purebred cattle breeders 'nS assemblies and shock abp g pM ttle breeders ..rbers at New Castle, will be Employment continues to respond, with a. slight seasonal up-|® Téadjustment to be followed by were in better shape. Forest I. 20TPers Nh ew Lasl\a, May .3 lin dus to a step-up in building and farm activities, to the down- ope period of business Brunton, prominent Clinton Coun-| heats of the company on plant - spiral, . ty farmer, said, “The farmer with; "7" anced ois Manufacturers were still|those heavy inventories, turn Urge U. S. Economy Y {plenty of pasture, good hay and| gap 8 "Big Shrinking payrolls: cosy love) goat nto cash. Tye Mohosy Hise was Be by a ) . {good dairy cows, need not fear AE °3 ‘half-million under e Pennsylvania Railroad has|{growing demand in ashington 3 ithe future in Indiana” | to its 1949 lusyears Smbloyment. lannounced it will lay off several for economy in government ex- Thuse or Canirl luchiana’s women of wealth who are taking a six-weeks course on investments | N. EB. Leep, Lowell, Ind, dairy.) “Printer’s Ink,” publishers) penditures and attempts started) —conducte errill, Lynch, Pierce, Fenner & Beane, 317 Circle Tower. The opening session, held man, owns the largest Brown) monopolized trade magazine, reported national| thousand employees in Altoona, ;, i gome excise taxes. Utill-| Wednesday i ' a a refed iv aud: Fred SK er MFPFAB unt |SWiss herd in the state dnd also] [3 . nesday in Ayres’ auditorium attracted a capacity audience. Fred S. Keuthe, accoun >: Intercollegi advertising rising to an all-time|Pa. within the next month. This|ties got a lift when the Supreme gr : : : : - the top producing cow of thelf s 8 up executive is lecturing. Th k he will share + t th Charles S. Galbreath, firm sale PP £ the their own high of 10 per cent over a year is, as the PRR puts. it, merely a Court refused to hold up the eciuning. his week he. will share platiorm wy aries 3. 'zalbreath, Tirm sales ;u0d In."the nation. He said, | § ARE a TT et ST ting the Hest ago. This is an effort to move| “seasonal move.” Electric. Power & Light Corp. re-| manager. Ne I Pode cows I a ig must |} IUAJRATL FRSTERL U SUIOT Eur PR | neatly s At the same time, the New York Of8anization plan. eo . i ave a very high market to pay . in . ing a $2 million job of reconditioning *100 standard passenger tions played a part in the dip. ® The Mapleton Business Assocl- Among the beef cattle breed-|| ta] wa a coaches—and this means spending to perk up business. It is actually |Added to them were such items as S ent m nt Ch tion will hold its monthly meet- ars there was a different story. Ro Ia spending to improve income. Stuffy coaches in hot weather provide [the CIO policy group insisting on } © ange ing in the Merchants Bank Bldg.» Long-feeding to put steers and Bh by a poor competition for a luxury family auto on the open road. And wage increases in big industries, : 38th Street Branch, Tuesday heifers in market condition is Lan, op Sir-sonditioning may lure added Tar 8 tod x thls ooh an demanding lowes prices ard * ; night. Lou Walter, president, willirated as risky. The reasons are (a ess during the money-spend-|€ls,” as repor s column higher government spending t reside. ' the high cost of stocker and feeddoles. Taam ing vacation months. Several mostha ago, ah] In the aid the economy; the Ford strike, ou n in ar £ Toul P eh Strangely, production is not off| Wa reet Journal las nes- and a dip in steel operations. v 0» th scores of as much as employment. This re- day. These more than offset such Pessimists Become Confident ively. flects the heavy swing-over to la-| Transcontinental & Western Air favorable items as statements by : o » . good enough bor-saving machine tools. It also|Inc., unveiled a loss of $3,264,434 |Standard & Poor's and Alfred P. On Approaching Business Decline eam honors. helps get prices down to competi-| for the first quarter ‘this year|Sloan Jr., chairman of General . ”. Pauw, an8 tive level ! will be By J. A. LIVINGSTON » ve levels. while American Airlines, Inc. an-Motors Corp., that there YOU'D NOT NOTICE th : rdue, carded The race to lower price levelsinounced a record in airfreight,|no serious recession—merely & re- ICE the slight change in sentiment n the No, 12 is prdisgulsed. Where fapes costs|6.9 per cent over March. adjustment; a new high for 15 for the worse by looking at stock prices. canno cut, manufacturers are] This is the trend today. But the market sho r- 3 : stripping down appliances, trim-|there are some who Ts big Joars on a better than expected, United States Steel common is quoted just about where ports, ming off the frills and fancy gad-|question mark to the declining|gytomobile production figure. it was a month ago; ditto for American Can, General Elec- : gets, introducing “economy mod-'figures. Net Losses Small tric, General Motors and the ~~ ———————— : Net Josges BE he Hy a Dow-Jones average for indus- 130,000 ane 8 in 9: hope rd all. : , id gre and talk of price trial stocks. |be able to buy them back at cuts being forced. Rails were The pessimists are becoming lower prices later. That increased! wn (fractions to more than aimore confident. hey're in-/the total short interest to 1,628,-| point. Reduced earings DISUENt SeAsingly Willing id Fone along shares, of the highest level the oils down. Utilities sev-icline in e stock market and since Feb, 27, 1033. Seemingly! eral gainers although that group business, {more persons (or persons with | i was down on the week. Auto| You see that in the statistics of bigger bankrolls) are jumping on!

# i

shares were irregular. Special| issues here and there showed

gains.

| Commodities moved back snd Why Be Long?

short-selling on the New. York the we're-going-to-h a v e-a-reces-Btock Exchange. Between Apr. sion bandwagon.

The theory is obvious enough: Why be | long stocks when business is heading

forth and were little changed on

SEE

{into a decline and profits are going lower? Yet the case isn’t open |the week. Bonds Riso held Seo and shut. Enough people were willing to bet the other way to buy the 8 Numerous pr oS ES a orsifie al stock the short sellers offered. That's why the market did not go off| RO hil EY Sine from | Tich—only wo pots in the Dow:Jones industrial average. | ’ | a oor’'s Corp. offers cameras to iceboxes. Several Co | this explanation of the P to ck| panies announced -new aye fr market's strength in the face of |a source of negative strength in Railroads were cutting the upagn news: “For more than 21 the economy. Heretofore, during maintenance costs and some &n-|yeapg jt hag prepared for the periods of rounding a top in busi-| nounced furloughs for several .p,.ze now taking place in the ness, the stock market — by its| thousand employees. |economic trend.” volatile declines — has increased Steel Output Drops | Investors and speculators have the tendency toward bearishness. | + Steel production dropped to. taken it for granted that the Each decline in the market gene-|

: | The stock market has Become

Fe

£2. No, not really? . . . But it is—a Rolls-Royce truck, an old i car, cushioned and powered for presidents, prime ministers 1 and kings, and put info a business harness at a $500 conversion i gost by the Springs Cotton Mills of Lancaster, S. C. Officials of the mills said it still functions satisfactorily but has an extra appetite for gas. It is used for medium light hauling to and from the mills.

BER

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® J. A. Livingston, whose column inks the Which Way? opposite side of this page, recently raised the question of whether the fall will be uninterrupted to the point of distress, or whether the country is rearranging its economic house in order, as after World War I, for an even bigger boom. It will be remembered that in the very early 20’s business had a

scare which turned out to be

cent of capacity, but total tonnage output was 3 per cent over the corresponding week of last year. { Construction rose 20 per cent on the week for heavy engineer-|

new low for the year at 95.6 per at 2 of 1947 and 1948 would not rated another wave of bearishness |

last forever. So stock prices did|in business. Result: Today the re-|

not go up. And now that earnings sistance of the market to decline] ¢

promise to go lower, stocks — not is a psythological bracer against

{having risen — show no disposi- {reduced sales, orders, and back- |

tion to go down. logs.

The pessimists have a logical case. They |

nothing more than the buying power of the country changing

If business enterprise is strong enough, and risk capital goes to

ing building and the Moi ll Avery's ldea

total for this item was 19 per argue: After every war, you have a boom

from army uniforms to factory work, we may get over the hump ~ overalls.. Then we went to town, 3 ' hog wild, with all stops out, until

the economic ship nosed over in the depression waters of 1929-30. What is really necessary is to find a way by. which the consumers of the country can afford to buy the bulk of their own production. If we can do that, the business cycle is both complete and healthy. There still is plenty of money in the banks, and it could happen.

and neck-deep in a boom which would make the roaring 20’s seem like a Sunday School picnic.

cent over the corresponding perfiod of last year. Crude oil pro-

and then you have a correction for the boom. Prices go up during |

wars, and inevitably after wars, prices decline, (Sewell Avery, chair- | man of Montgomery, Ward & Co., uses a chart which shows the price

duction made a small gain but was under a year ago. Wholesale and retail trade held about even with the previous

drops after all American wars to justify his conservative conduct of the company’s affairs. He's not)

But this possibility does not change the truth now. Prices are| still going down. Employment is edging downward. And manufac-| turers -are staying awake nights trying to find ways of turning| what they are making, and what | they already have made, ‘into! bankable bucks. .

drop.) {mand seems more than ample to

week and slipped back slightly from a year ago when prices were higher than they are today.

Trend Narrow

salers, retailers, and consumers piles on contraction. live on their inventories and wait for lower prices. At the same time, indugtrial til inventories are hopelessly in-

Right now, the ration

going to get caught in a price catch tp with high post-war oy

The argument goes on: When meet demand. New industrial con- | prices drop, manufacturers, whole- | struction stops. Thus, contraction |

You get a period of subnormal | | consumption—or depression—un~|

plant which had been increased to adequate. Then a turn comes. | ts for a repeat perform-|

|

* a Evidence ance a la 1920-21 have plenty of evidence. David § A-Crawford, president of Pullman, Inc., complained to shareholders ° have arisen 5,631,000 families (Encyclopedia Britannica) between CHICAGO, May 21 (UP) at a recent annual meeting uy imingtan, Daj} Luis pov Seen) i : . when there was suc earth of inquiries . 1910 ana d 3 Federal census the number of U. 8. households totaled (Grain future prices ended opal Bd en are waiting for lower steel prices before placing orders : 5 cars... As a ose ST errr > ik a a) ora Ere Had Inoreased 0 10720000. tualing within a comparatively 206 (CETL cars on order are year. Steel operations are now at re {means measures the market.[Darrow range on the Board of i}. | west they've been in two 96.8 per cent of capacity as Again of 16 per cent in any There are an additional 2,858,000 Trade this week. | years. _ |against a high of 102 per cent. market is important to those who|persons living in institutions.| Rye and soybeans showed the |”) “ster evidence of the de- And business loans continue to make and sell goods to Ameri-|transient hotels, boarding housés,|most decline as compared With ning trend, Kennecott Copper contract. cans. It means that we can sus-|etc., rather than in family units, |Prices of a week ago. |Corp. will curtail production at Aside from the stock market, | tain 16 per cent greater produc- And they all eat food, wear cloth- Wheat was particularly sensl- isp. ong of the month. Eastman the business signals — the statis-| tion and the same increase ining, have to be kept warm. tive to influence, but showed little 4,1 hag announced price cuts. | tics — point downward. Yet the sales and employment. We are a| These figures also reflect the U .mate change when trading (gears Roebuck’s midsummer cat-| very resistance of the market to bigger, faster-buying and faster- “undoubling” of families mer: eq cnded yesterday. In spite of the, ov. shows quotations on some the trend suggests that pessimism consuming nation. |auring the money-scarce days of Arrival of two shiploads of cash yong down as much as 50 per|is not all-pervasive. But we are not quite the family the depression, A good many |BT2ID from Duluth, which occa-l,.n¢ American Woolen has re-| Many persons feel that on a pation we wers .in 1940. The married sons and daughters had |S0ned some price dips, the May 4,ceq its dividend from $1.50 to, yleld basis, stocks aren't too bad | delivery closed only about’a centigy nyarterly, reflecting the drop|a bet. S80 they're saying by in-|

rb Le a9 PAt the rt a eh amare ey ie 15 |pelow last Saturday's $2.24% a, .ornings from $5 a share in the | ference, that the economy isn’t] ral pe + 164% bushel first quarter of 1048 to $1.25 this’ ready to go to pot. |

of last year the average dropped light, phone, etc. . : to 3.5 persons er family. Anal This is the cheerful and promis- | Boma” Shivesivs. Drop Ww izve| the pop n increage was only ing side of the picture which C § Gc Pl Ob 10 per cent, measured against the weighs heavily on the side of freictet Eeaipls 9 Jucisties 10 « O ® ans servance 16 per cent gain in family units. business revival. | western A greater percentage of people] But we wunfortunately cannot

. 3 Here's Hope We are not the same size market we were! [ll Grain Prices

before the war. From somewhere there

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general lack of demand here.

Even the Department of rer OF World Trade Week

have been able to afford marri- report what is going to happen and sound together— per. ? culture's downward revision of its . : i Be! BO 8 ts 40 DITO De BY HONE Sant). THe Trend 1a 48 estimate of the 1949 crop failed Speeches, Foreign Exhibits, Dinner feedly byochsonized. Ma: 1 * {to hold prices up. At the end of . s : i ogany, conso cabin Synthetic Gas M8 Jetlun industry, with an eveithe week, all deliveries were) Are Highlights of Special Program | hoguay, consoles cabinet, th Y cocked toward the high compression about three cents below last Bat-| World Trade Week will be observed with speeches, reports, a Philco 1150. bel moves of General Motors, has developed a process for making high urday’'s level. {dinner and foreign exhibits by the World Trade Committee of the ; . : gest octane synthetic fuels from natural gas, Dr. W. E. Kuhn, chairman| Soybeans suffered primarily Indianapolis Chamber of Commerce Thursday. | rect -of the petroleum division of the American Chemical Society, dis-|from a sell-out that occurred late Mrs. Lillian Kreps, secretary of the World Trade Committee, eres closed last week, | in the session yesterday. sald yesterday the observance is in keeping with the Presidential Q 5 By stig The Carthage Hydrocol plant [ndustrial Conference Prices dropped from two to proclamation to focus attention on the importance of foreign v iy at Brownsville, Tex., will produce gop Ly three cents under liquidation markets, | : oly some 6000 gallons of synthetic ere Tomorrow [based on trade expectations ofl w. Rr. Spurlock, marketing r- Capehart Warns DOWN N ’ gasoline before the end of 1049, An industrial conference under| "wo U0 © Fo hl Lt Cy TU (search director, Ell Lilly & Co. Full Cash Price $349.50

J

UL 2431

Dr. Kuhn predicted. » Dr. Kuhn reported that any carbonaceous material can serve as a source for the basic reaction ~the synthesis of hydrogen and Sarbol SoTGide Bas 1 Dratuse

the three-cornered sponsorship of the Indianapolis Chamber of Commerce, the Indiana Manufacturers Association and the National Association of Manufacturers will be held in the Riley Room of the Claypool Hotel tomorrow noon. Wallace F. Bennett, president of the National Association of Manufacturers, will speak on “A Vital Program for Industry.” Ralph Robey, chief economist

begins : synthesize natural Produc ts. But|,¢ the NAM, will discuss the busi-

ness outlook.

Cab Lift Truck Here

The new cab-lift model of the White truck was shown in In-

octanes dignapolis last week. The cab is

millions of barrels (they power-lifted forward to leave the

they engine at workbench height. B.

$2.35, down three cents for the week In review. . Price Range Narrow Corn futures held to moderate price limits in spite of some large scale spreading transactions between the May and July deliveries. As compared with last ‘Baturday’s prices, May ‘corn was only % of a cent lower at $1.33% a bushel. The September apd December contracts were also down less than a cent, However, the latter delivery met with fairly lberal commission house offering. Oats were mostly steady throughout the week. At the close yesterday, the May delivery sold at 67% cents a bushel, unchanged as compared with last week's price. Only oats were

will dl and mar oun fine uskets OF Jobless Trend FT. WAYNE, May 21 (UP)—

the Marott Hotel at 4 p. m. A| social hour will follow. U. 8B. Ben. Homer E. Capehart be-

aon Grunving. Sie promotion eves that unemployment in this Bi nage of . iS Minmeapota. aria | country may increase because of Trade dinner in the ballroom othe U. 8. money sent to bulld up the Marott stressing the trade in| "dustry in Western Europe. farm machinery abroad. a. Capetiast, =n 3 iii speech ws ere last night, said he World Trade Scrap Bore Ghehoot came to Pt. Wayne to find out will reseive their essay awards yin » haa Fectived veyorts of at the dinner, Mrs. Kreps said. Spread umemployment . in

{| Allen County, Special exhibits on foreign| «1 want to prevent additional

marketing are being set up in the unemplo: ent and Marott by local manufacturers.| jobs Ips ye want to Festore oo

| senior Senator from Indiana said. LOCAL CADET CITED: | “If we continue to give our Kurt ¥. Pantzer Jr, 4310 N./money to build European in-

the U. 8. Field Artillery Associa-| bid

»

Meridian St, has been awarded EAP gl) American labor on the world

Plus $1.90 Federal Tax. Installation ond Service Worranty Extro

YOU ARE INVITED TO SEE THE ‘500’ MILE RACE TELEVISED AT OUR STORE |

Open Monday, Friday and Saturday Evenings

GUS KASPER

FURNITURE and APPLIANCES (062 VIRGINIA AVE. ‘On Fountain Square ~~ FR-{85I

; EB. , local White Branch down as much @s one cent. Cash tion citation as the ding market, we may expect additional . one who even hints of competi- , sald several thousand oats premiums also showed little cadet in the Field senior unem| % this country,” " tion, A a visited the showroom. change, ’ 3 class at Yale University, - he # r *