Indianapolis Times, Indianapolis, Marion County, 5 November 1950 — Page 42

“Outlook oy the Nation— ‘High Earnings No Joy to Steel

Profits Provide Union With Big Talking Point for Wage Hike

3 : By J. A. LIVINGSTON TT - NEW YORK, Nov. 4—How attitudes change. Twenty years| sho a chairman of the board of United States Steel Corp. would have popped his buttons making the report Irving S. Olds just released to shareholders. ; «In the nine months ended September 30, U. S. Steel earnings’ x reached the highest level since 1917--$6.12 a share, as against $4.38 in the corresponding period of - 1849. the government decides to crack ‘That's equivalent to more than down, Big Steel usually is “It.” . |° $18 a share .on the old stock— A 10 per cent wage hoost would |

"Stocks Lower | On Pre-Ballot Evening Up

Trading Falls Off On Both Declines And Rallies

By ELMER _C. WALZER United Press Financial Editor NEW YORK, Nov. 4—Pre-elec-tion evening up operations brought a small decline to the! [stock market in the past week. | Trading lightened in all depart- | ments on both declines and ral-|

before the three-for-one splitup. ,But Mr, Olds, in his meeting with newspapermen, was not

.oyefeome with joy. i

In these days of powerful’ jabor unions, - such earnings spell trouble. They provide Philip Murray, ‘president of the United Steel-

workers, with a talking point'in However, during a i the current rnegotiations for al corporate en nation, these afled to sustain Joes) ‘Mrs. Willard Christman sell their home fo Mr. and Mrs. wage ingregse. —an ror on earnings declines. To|" ae 4: gs oa Bel to Anderson, Mr. Dye i is guediated with the Connecticut Mutual Life Insurance Co. t the zame tim ey're go- them; that's a s : ’ . 2 e, v're go em 1at’s a sign that they're the weck’s reports. The com-

ing to put Mr. Olds in line for nother Congressional when and if he raises steel prices, 2s he ‘says he must,

+ No Escape’ cant get typical of all business men. bad economics. It will give infla He argues that steel worker

Whenever!

lop off about $48 million after

taxes from Steel's earnings, bringing

the $133 million earned Jast year.! Thus. U. S. Steel could absorb! a wage rise, assuming other costs didn’t boom,

not keeping up with the inflation! inquiry

especially when the company is lembarked on a eonstruction pro-

off all. by himself, In this, he's

tion another turn. 8 don't need a wage boost, The

nine-month| it down to] [and [$130 million net; -or sHghtly below]

gram, the cost of which is riging.

imore than offset rallies in_ the {subsequent sessions. From time to time high earning reports and increases in dividends had a favorable influence;

on individual stocks, but even 5539 Kenwood Ave. was handled by Mrs. Catharine Winchester. The saleswoman helped Mr. and Oct. 23. The dwelling at 2365 Southeastern Ave. was purchased . Paul Dye Jr. The Christmans have moved by Mrs. Mary DeLong from Mr. and Mrs. Clarence Anderson. Mrs. Delong | is with Alison’ s, while Mr. Anderson is a postal employee.

months of this year were larger than for any full year since 1917.

for any year except one—1917|

when World ‘War 1 profits were |.

cost of living has not increased materiali y since. their last wage) being distributed.

boost in July 1948. In addition, last year the union won its fight

the money to build an Eastern

—* Aeaboard —milt—mear Trenton,

N. J. But Wall Street isn't exactly “wild” about Steel. The common stock sells for around $40 a share. fhgs amount to about $8 a share a year, which easily covers the $3 dividend rate plus extras. The yield is better than 7! per cent. ; Steel common is “cheap” by gtandards which prevailed in the dépression year of 1930 When J. P.

Morgan was chairman of. the

feels the times are not favorable for new financing. — He has to give away too much earning power to raise common-stock money, That also ex plains why most have to finance expansion out of their own earnings. So, in effect, they price the cost of new plants into their products. The consumer pays for capital expansion rather than the investor. That's a basic change in the last 30 years. i

This pay-as-you-go finance

Wages Up, "Prices Up policy Pa corporations is part

of the inflation pattern. When w rai8é prices, which in turn pump

ages go up, corporations in turn y up profits, which in turn spur

workers to demand still higher wages.

Both management and labor have responded, have yielded to

the economic pressure of the everywhere.

1000, 000. Labor is in great “demand

Most companies

Chrysler Eardings Gain Chrysler reported its operations

for pensions. But this year, auto board. Then the common sold late Friday and showed sharp workers and electrical workers between 13435. and 198%, the gains in earnings in the third got wage increases. So, as a dividend -was $4.25 a share, and quarter of the year. practical matter, says Olds, “1 after preferred dividends Jor declared a $2 dividend. don’t see how we can escape.” company registered a deficit - n ; dividends for the year Nor is that the end of Olds’ the common to 89 equal to $19.50 a shara " inflation problem. He must find That explains why. Mr. Olds = 4... 14 stock before the two-|

for-one split in 1947. record high.

Favorable news for the rail-

“roads in the form of earnings and

car-loadings failed to help the|

Yet earn- big corporations foday feel they | Igroup and most of them declined. |

Utilities held in a narrow range with. few exceptions, and actually] managed to show a small net] gain on the week. Industrialists resisted pressure late in the week but lost a small amount on the week, Oil issues stood out on the gaining =ide, hiiped by fnicreases in ineome and predictions Of more gains to come. Most of them closed higher. Steel issues were sustained by the U. S. Steel report this week and Beihlehenry report last week. Chrysler statement was iri the after the close Friday the stock

boom, which is exemplified by | 514 rather raise wages than rose In anticipation of the good

electric power output. It's running 20 per ‘eent ahead of a year ago—at an all-time high. Demand has expanded so

Nobody the market for

rapidly that the. utility com- goods at ever higher prices.

panies are now engaged in a fight with government officials ovér whether there's enough

power to meet defense require- and the

ments, The "industrial upsurge has re-

However, higher taxes next

year are likelv to put a crimp in 2 crease wages.

The rumblings— stiffer controls—now the upward climb of profits—and in corporation willingness to in

duced unemployment close to the toming out of Washington point

trreducible minimum — around 2,

Hog Prices O

the way.

ff in Week:

‘Cattle Up on Few Receipts

** Sheep Close Weak to 50 Cents Lower;

|able, but the

islightly on

‘risk strikes or lose workers to News. higher-paying plants. wants to miss

Alrerafts Advance

Such a stock as Allis Chalmers were 325

was boosted substantially on dec-, aration of a raised dividend and extra. A split-up proposal lifted Minnesota Mining. Some of the aircratts managed to gain on high earnings outlook. Tire issues ‘were sustained by higher prices for tires. Business news continued favortrading element feared higher taxes and new controls would cut into production land profits. Steel operations held just under. thefr all-time high. Automobile production also was down only the week. The. oil continued to operate

lies. A sizable decline Monday one of lesser Yorce Tuesday |

pany’s net profit for the first nine]

It declared dividends totaling]

3 Mr. Olds is on an economic treadmill and $1.50 a share, and lifted the total <i0f dividends declared or paid so!

He believes a wage increase in steel js far this year to an all time high|

That Is a;

Las

f Among top property transactions for the Bruce Savage Co., this “thres-bedroom: residence at

| i

This three-bedroom house at 2412 E. Northgate was sold last week to Mr. and Mrs. W, C. Eggert by Mr. and Mrs. Raymond C. Thomas. The transaction, completed. Oct. 24, was handled by Miss Catherine Mansfield of the A. E. Thompson Co. Mr, Eggert is with Shell Petroleum Co. Mr. Thomas i is with the McBee Co..

Home Builders’ Group To Install Officers

Home-Building Records Tumble

Contractors Start $3.1 Million Work

{Continued From Page 41) . units million started in town.

County contractors started 158 singles and two doubles worth| million last]

more than $14 month. A year ago the figures read 147 units worth $1.2 What little - effect credit controls are having here was re-

valued at $1.8]

million. |

New. officers of the Indianapo- hay, secretary; Robert E. Schreilis Home Builders Association ber, {reasurer; O. C. Winters, hetter real will be installed Wednesday at a sergeant-at-arms. ~ tary”

dinner in the Severin Hotel. J. Harry Miles Jr., president, dent of the organization. His new dent, co-officers will

no finer cabinet...no better picture...

flected in number of applications!

for government gages. Federal Housing Administr; ation here issued 810 commitments throughout the state for housing aid. That's oD from 730 granted during September, before the Oct. 12 tighter credit reguiations For the vear. FHA

commit-

insured mort-

Walter Stace will be re-in-up from vice stalled as Association historian. will wirl be seated as presi- Ernest E. Hinkle, : and Fred C.

be Forrest Kel- new

Broker Frank Oakes completed the sale of this five-room house

The wrap-up of ‘

will be held Wednesday. More than 3! 3 sift through five retiring presi- steno aids given by office experts Tucker will be in the Secretaries’ Seminar, a new members of the board of Real Estate Board help:for-real. logg, vice president; Robert Dille- directors. : tors function.

. in the Seminar. ¢ will be

Heoampanies PAAAAAARAA > Choice Steers Bring Top of $33 at practical capacity. Railroads ments far exceed the number is- TN IARI CHICAGO. Nov. & (UP)—Increased receipts and lower whole- moved 50: per cent more freight Shey during the - comparable . pe- ANAND sale pork prices drove live hog prices down 40 to 50 cents a hundred cars than they did a year ago. MO re paunds this week at Chicago's stockyards, while fewer cattle re- while automobile’ makers an- Yelerans Admijistzation ut ceipts ‘boosted those prices as much as $1. ticipated an eventual effect of rored “this report. Last month Sheep-ended the week weak to 50 cents lower. stiffer-eredit terms-on- sates they 910 applications - for mortgage. ! “Cattle receipts this week were 7000 head fewer than last week, continued to anticipate sufficient ey NE ued. Thats ply: of steers weigh-| —— w—————— - - only 10 under the number granted with ‘the supply 200 pounds rr In the e hog market, barrows orders . to keep plants running, September ‘dnd 110 under the! ‘Ing more than 12 poun land gilts ended the week 40 to 60 full tilt. The big problem for this jo. peak set in Tune for the a siderably reduce .d 25 industry, it was noted, it its : 3g for tra area] Compared to last week's close. Serie Swe: hie ah Slazed 2 ability to get steel YA too, was far ahead of appli 0 cents lower. ne trade in © D : a cations—-approve I “the general market of slaughter this market again wa¥ featured Rétail -.and wholesale trade a) Tpiove in. comparabte steers ‘and heifers yesterday ''° . . rice FRR allke ' suffered somewhat from by a narrow price range on Mater y } b THE WINNER closed 50 to 75 cents higher virtually all weights of butchers. imposition of credit controls, ac Materials and—labor-were still ; ally 8 8 . i on the - tight side, wit t with ali grees and weights. shar- Receipts were —matnty— composed €0rding -to-—Dun-and Bradstreet. HT EX Si aL FASHION Jag in the upturn. “of 200- to 260-pound weights, However, part of the. sales de-i ui, ier slow-down time appro a ACADEMY There were some Instances iy the week's average around cline was attributed to unsea- pares the constr io Behes. _where prices were $1 higher on. 230 pounds. sonably warm. weather In many Yad a. fon chart AWARD “high- good and choice steers Reach $19.40 Top rections” which cut down pur- Ov ee fdianapolis weighing 1200 pounds and up and = The week's top price was $10.40 chases of apparel. 1S cto or, 1950 __- October, 1949 on heifers under 900 pounds. Oth- ith a closing top of $19.15. Most Morey in circulation and bisi- ry, x aid units 325 units er slaughter classes were SCArCe. good and choice 170- to 280-pound ness loans rose sharply, while ale. .f 1,795,300 $1,867,650 : Cow Prices Active butchers sold at $18.75 to $19.00. gold reserves were reduced Tenth-Month Comparison ‘Sows weighing. 400 _pounds And Whylesale —prices—rose—shightly : 1950 :1949 0 CEES PE f sHghty—72 = “Cows were active and 0 4 less cashed in mos 5 to’ Commodities were higher in..the Starts 3170 ni its . 26882 ils : —n a steady Yall Cents $18.50, while 400- to 500-pounders futures markets. notably tin. ' 0 ue 821,343,980 $16, 9 TAR re Fh nm atts hi ong and stockers "and feeders Vent at $1700 to $17.75. A few pai lures declined... © a Marion County, > : 18 oy — heavier wererdown to $16.60. “(2 other incorporated towns ase 5 strong. . cw In thé sheep market, : wooled N J omitted ; he late atk : of good 2 slaughter lambs were weak to 25 ew Pro wetion Record October, 1950 Octuber. 1949 . choice slaughter steers-and-vear- °C. + 1954 Octoher, 1948 : lings sold . £20.50 to $33. Sev- Lente J Ba { Spon J bs Set by Inland Steel or rea 60 units 147 ‘units Larger than a 0h Tele = :. 2 ended 25 to 50 cents lower op : alue ©. $1,414,300 S1.208.65( . : gral 20ads of «choice steers weigh~ ico tor wooed tambs was - 50 CHICAGO, Nov. 4 (EP) In Tonti-Montt = 30 li f 4 a a0 -to 15s0- Bunge Beri a with shorn offerings at $29.05 land 8teel Ceo: - “Toh ona Lefpurison 1e- size Ra hl WHE SEVCLR] OROR er Cp RF SR rei nnicnentd LA Le Le — J 8 TAC AIT RE a re SET = of ~high-choive to prime. 085. to Mast good to chilis SH Thi Ftd fit October by shipping 300.1 sr THR TTT ais

1205-pound averages ch i ed yy XK *%

hands at 5to $34. * 1338.95 fo Weights ~The previous record was 208.162 Grand Total, ( Ea Most ghod and choice fed heif- 100 ee were dis May 1950. A company “IR OCT OSU “Tan.-Oct., "1549 Starts 5426 units* 4314 units

the Week went at.

“tOhs of steel

ers-and- mixed’ yearlings brought counted $1 to as re as £2 on officjal said that defense orders |

$29 to $32.75

More than 190 real astale brokers enjoyed Times following a cockta iin real estate, and w

and medium to big weight ewe and wether and are : wehdice vealers went at $29 to $34. heavy

native buck lamba,

Real Estate Brokers Are Guests of The Times

reception.. Harold ihfroduced by Edits.

faking progressively amounts of steel prod wed.

ip ———

“larger

dinner at the Columbia Club Friday as the guests of

Hartley, Times business editor, | Walter Leckrone. Henry Manz, * fig,

advance price rises ig oth yesterday senti was swayed news from Ko

last week 3% to 4; cents corn 4% to 5% Higher to 4% higher; soybeans 14 to 18% high er, and lard 40 points a pound higher to 85 lower.

REDE REPEATS

Value ..$42,654.526* $28,105,729 Preliminary figures, includ ng unincorporated estimates,

Soybeans Continue . Zooming Ascent

CHICAGO. Nov. 4 (UP)—S8ovbean ures prices continued their zooming ascent and established new seasonal highs at the Board of Trade this week. - Within the past

three weeks

soybeans climbed around 45 cents a bushel.

To a large exten? influenced

the soybean appreciable er grains. And

ment

apparently favorable

Compared

wheat vesterday cinsed

higher; "rye 4%, to 4%

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New East Side residents, Mr. and Mrs. Berkley Peck purchased this two- hed room dwelling at 5915 Julian Ave. from Mrs. Anna Clark. The tranaction topped those handled recently by Realtor Manson H. Phillips. Mr. Peck is associated with International Harvester Co. The sale was completed Oct. 18.

Realty Stenos Take Final ‘Look’

The delegates in a panel discus« sion will review the idéas fostered The final session moderated by Realtor Walt Veon, dean of the school, in the Columbia Club. The final. meeting, like the others, will start at 7:30 a. m.

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