| Show S. S r Business Faces Coming Coining Year 0 With Conservative A Optimism l By STANLEY STANLEY W. W Associated Press Pres Financial Editor Editor- r NW NEW YORK YOm Dec 31 AP AP- AP Business men ncr ana and bankers bankes view the out outlook ok for 1928 1028 with wih conservative ons e optimism There is isa a a feeling In Jn many man quarters quarters that political uncertainties invariably in ill- variably arising during presidential y years ars are likely to have a retarding effect up upon fl n some lines of or business I but it is pointed out that other factors ac fac lae- tors are arc decidedly t favorable I Credit supplies are ample inventories tories tores low transportation systems ef efficient lent labor plentiful and relations relations rela rela- between capital antI and nd labor generally lons' lons pleasant Most concerns are able to I finance themselves without extensive recourse to bank credi credit The stupendous flotation of new securities during 1927 has created cre ee a demand for labor Jabor and mf- mf ma ma- terI ls Increasing competition from irOm Europe has been been- offset offset to to a a certain ln extent by higher exchange hither rates Wall Wal street street faces the future with wih confidence Easy money rates raes resulting lr from froma m ma a tremendous tremendous increase in investment invest invest- ment c capital and ii a moderate e recession recession recession reces reces- sion In in- In commercial demands formed the basis for virtually an unchecked kec rise Jn In stock prices prIces' to o new high le levels els du during n 1927 Business Business' ienI generally generally ien- ien gen gen- however as a reflected in freight freish ca car loadings automobile I and steel production and corporation corpora corpora- corpora tion earnings fell fel slightly bloW below the figures From an an economic standpoint de- de one ono or of f the tire most lost significant of ot 1927 was the return of farm prosperity due jo to a gradual gradual grad grad- gra- gra ual correction of the he disparity be bc between be- be between tw tween en agI agricultural ulu al l and tural prices The Tho northwest which produced the larg largest st spring wheat crop since jince 1915 is reported t to be bein bein bein in the best best cond condition since sinco the war CROPS CROPS BUSINESS BUSINESS Crops were off to a bad ad start in 1927 Unseasonable oft weather in midsummer aroused feats fears of f a poor n. n wheat h harvest a dIs disastrous short shortage short short- age of of cotton and nd th the tho sm smallest lest corn crop p in 25 years So warm warm was Vas the cr weather in September and and October however that l t a substantial Ual Vat part of the wheat wheat and n cotton cr crops s which had had been given up as as lost bios blos blossomed bIos bIos' bIos's s med into The gover government govern govern- ment ment estimate of of the th corn com cr crop p pw w was wag s 's raised bushels in November and the they years year's corn corn out out out- out out- i put instead of or being the since 1903 surpassed that of 1926 Several l disturbances affected business Disastrous DIsastrous' floods last spring wiped out of dollars in lot property in the Mississippi ard Missouri MIssurI riv river r valleys Similar dam damage although on on a smaller scale scale was ca caused sed in New Engl England n nIn in the fall tal The soft coal industry suffered red from from a thin miners miners' rs rs e still sti in iii li effect affect as the year year sup cose closed a al alth although al- al th though ugh mediation efforts were un under under un un- der der- er way ny Several industries particularly particularly par par- in the automotive field were h hard rd hit by the he six six-i six month shutdown hu down of the the Ford plants EXCHANGE N E. E Europe's economic progress progress' was wa r reflected in Jn the sUn return of or sterling and several continental l currencies to p parity iy and the beginning of f arrangements ar for the stabilization of o othe the Fren French h and Italian currencies n les which probably probably will wI be be effected In 1928 One difficult problem will wi be transfer ne of German r reparation n p paymentS payments pay pay- y- y ments menU which reach ach their maxim maximum m under tile the Daw Dawes Daes s plan pian ln next fall al This drastic probably involves involves' changes in G Germanys Germany's financial policies pol Ides Ides' as ns pointed out In the rec recent l wa warning w of Agent nt Gen General Tal of Reparations Rep Rep- Gilbert who vho urged restriction tion ton of of- t. t foreign loans t to te productive Uve purposed and curt of unproductive expenditures ures As 1927 closed 1927 closed cosed laige lai-ge exports pf o of god reid cold went to Europe India and So South th America T Thy They Y represented only a small i part rt of the supply in iii inthis thi this country which roughly was es estimated es- es the g during the summer ummer as about abou half of the worlds world's total stock stock but nevertheless aroused c considerable ble discussion as as' as t to tl their lr eff effect up upon n Interest t rates c. c n STOCK SToCK MA MARKET MAET ET the stock market of 1926 which which- which was was upset s t by a drastic reaction ton tion In was March the rally raly in prices was accompanied only by moderate recessions in Jan January r June October OctOber October Octo Octo- ber a and d December ext extending ding the te duration of the current curent bull bul mar ke ket to to ne nearly four years ears Tho The av average average av- av v- v erase o of twenty twenty- leading Industrials c compiled by the the Associated Press ov move moved l within a a. range of ot 45 points and the av average rge of hv twenty nty leading leding rails rais within a range ranse of 30 pin points s. s both closing cosIng th the year ear within a few points of the high high- levels STEEL Prices of st steel el shares followed closely the trend of trade trade conditions s which rich showed showed- considerable promise In n the spring ring b became came disappoint disappoint- promse dull dun In the summer and fall falland falland and nd developed develop d signs igns of ot improvement j as the year yer clos closed d. d United Stat States s Stel Steel common was va bid up to a a new ligh f following the declaration of a 40 per pel cent stock dividend which preceded by a fes' fes months the the- he d death ath p of pf Elbert H Gary Gar or for more than twenty five years head of ot the tle corpor corporation cor cor- por tion and and recognized spokesman spokesman spokes spokes- es- es man of the industry T Talk lk of steel mergers was wag rife rie but ut he the the- absorption n of Trumbull by Republic was the only important development Some disappointment was caused by by failure o of ot Bethlehem Steel to resume dividends on common cornmon com corn mon although such action acton barring unexpected business depression Is Js widely predicted for 1928 Sensa- Sensa to lonal al gains were wee recorded by MIdland Mid- Mid Midland land and Steel Products preferred American Ia Machine hine and Foundry and American Amerian Steel Foundry RAILROADS Railroad shares bares particularly those hose of ot Investment merit enjoyed a a- a substantial s adv advance nce Failure of tie the lie interstate commerce commission commis ion slon to approve pending major consolidations con- con and decisions against the lie r railroads in in the lower oWer s cout-s courts on n the disputed recapture recapture clause claus of f the n act had a tendency ten- ten den dency ency to chill spec speculative laUve cathu- cathu Depie Despite the setbacks setback the s i-s of or the Yap Yan and ard nd Southwestern railroad mergers continued Continued- efforts to organize organize SS S'S terns ems which would meet with wih the thc co approval approval Eastern railroad executives also held a se sees e- e ries es of me meetings meetings-In an an effort l to iron iron out ut differences over division of t neg along dong the Atlantic seaboard ne Thc he St. St Paul reorganization was approved ed b by th the United States su IU- IU supreme su- su I preme court after a a long Jong and bit bitter r fight by minority bondholders Dividends were resumed on Chicago Chi Chi- ChiCago cago Rock Island Iland Pacific com com com- Jion then mon Tile The annual dividends un on Bang or Aroostook oost ok Chesapeake Ohio and Southern Souther Railway were were increased Directors of the Mis- Mis is- is Couri Pacific appointed a committee to consider elimination of an ac ac of nearly 50 50 In dividends divi on preferred stock The Ne New Haven railroad paid Is its debt to 9 the government through the proceeds proceeds pro pro- of dr f a preferred stock Issue and ani early resumption of dividends on the common is looked for AUTOMOTIVE Shutdown of the Ford plants pending introduction of new models medals in December generally was h. h lidid d responsible for the decline in a automobile automobile auto auto- to- to mobile mobie production Unusual prosperity prosperity pros proS- was shown sho by a few companies com corn ra le particularly General Generl Motors wholesales and earnings broke all al records and Chrysler Nash Studebaker Studebaker Studebaker Stude- Stude baker Hudson Hupp and Packard hut but lut many smaller companies made madea a poor poor- showing Automobile executives executives tives have predicted record breaking break break- ing inS in production In 1928 1028 Copper developed unusual and and strength th in iii response t the to the he improved trade outlook now I considered the best est since th the war Greene Cananea the sensation more than quadrupled quadrupled in quoted value upon the discovery of a rich rih pre re body on Its is Colorado property OIL Copper shares developed unusual depressing influence of tion ton Discovery Discover of prolific oil 01 fields felds in west Texas Texas- TexaS followed the tremendous tremendous tremendous dous output t In the Seminole area In Oklahoma which however later showed signs of petering out Agreements Agreements Agreements Agree Agree- ments to curtail production thou though h successful in some localities failed t to influence nce greatly greaty the general sit sit- si- si The decisive stand taken by the American Petroleum In Institute Ins ti tute to conserve oil oi resources ap approved approved ap ap proved d by bY government authorities I aroused hopes of a better beler outlook for for- 1928 Several oil 01 companies were forced to reduce or omit divId divi divI- d dOnds Rapid progress was mae made In the development of the South American oil i fields fields- particularly in Venezuela due to sC a practical shutdown in Mex Mex- ex- ex leo ico because of f the controversy ven over land la laws ws A A Mexican supreme court decision in fax favor faor or of or the AmerIan Amer Arner- ican Ian oil companies held o out t hope of ofa a ar settem settlement nt Purchase of Russian soviet oi oil by by the Oil 01 company com corn pany controversy of ot New between York York- Yok started started that corpora corpora- a bitter biter tion ton and the Royal Dutch Shell Shel in interests in- in of Great Britain but hut predie- predie tion tona of ot a worldwide price cutting price war nar ar had not m materialized a as the year neared its Is close ELECTRICAL Record breaking Record Record-b ele electrical tr l. l output was reflected in the steady appreciation elation in quotations of public utility util util- ity Iy shares hares T TJ The E rally raly was held ut- ut in incheck incheck check by threats of ofa of-a a congressional con con- gressional Investigation into recent super power super power projects project and the growth of holding companies in the public utility fi field ld The shift from office buildings and ard residences residences' to public works and engineering ering projects characterized the building industry which main main- tamed a relatively high rate rate af af activity ac ac- ac Textile p packing leather and rubber rubber rub rub- ber stocks made little material progress although the outlook in e each ch industry showed bowed improvement Improvement Chemical shares also responded to better trade better trade conditions Strength of ot the mall aU order st stocks was associated with wih the In Increased re sed purchasing pow pow- er of tho agricultural regions The Ee steady dy growth groh of chain chain- st stores res was mirrored r d In the rise of f their se- se se-f se thelo Speculation n stocks was by worldwide interest in transoceanic nn ann and other long distance flights Wj-ight Wj Aeronautical manufacturers manufacturers manufacturer man man- of ot th flier Whirlwind motor motor matar mo- mo tor tar us used d by Lindbergh h and others othere therE appreciated about bout per cent in value Extension of commercial air all routes approved by y President Coolidge Cool- Cool idge and the interest In air development development development devel devel- shown by Henry Ford also were important factors in the rise TOBACCO TOBACCO Unprecedented Unprecedented- tion ton and lowering cigar manufacturing ing costs through installation of la- la bor devices device provided a background background background back back- ground for th the the advance In tobacco stocks Food and drug shares were helped by consolidations and by clever advertising popularizing scientific entitle terms Keen competition in inthe inthe inthe the electrical refrigeration industry had a disastrous effect on the e so- so Fi- Fi e- e of some of ot th the smaller man man- Two important stock market de developments developments de- de wore v ro the tremendous le- le growth in investment trusts making pos poss rapid appreciation in many stocks through reduction in the floating sup supply ly and decision of ot the New York stock exchange to admit admi shares of foreign to limited trading privileges One of the most difficult problems with Ich stock exchange authorities had ha to deal was Wa the acceleration of ot the stock ticker to record promptly lr market maret transactions Some Soe headway headway headway head head- way w was s made by further furher abbreviation tion ion of quotations |
