Show THE DAILY NEW YORK Financial F i n a n c i al Whirligig W h i r I i gig Written for The Telegram by JAMES McMULLIN NEW YORK YORK New New York is disquieted disquieted dis dis- 1 quieted b by ominous reports that I legislation will be introduced In the new nc congress which would place a stiff ti t graduated tax on corporate a earnings earnings-a a new version of oC the soak the Hie rich movement The scale o of oE levies eves th that's ts t's being talked about would leave large lar e corporations corpora ti ns grapes to slice lice instead of melons Its It's known that enough congressmen congress m men n favor avor action alon along these lines to make sure such a bill will be drafted and md will get considerable support from rom representatives of the thc west and south However it is not likely to muster enough strength to pass without the administrations administration's O. O K so so the thc big question among business leaders is where F F. F D. D II R. R will stand Most insiders believe he will interpose to save them from drastic punishment unless unless unless-as as one shrewd observer expresses it H- H there are too many in inthe inthe inthe the woods The Con Can Gas reprisal for the Edison In Institute declaration of war has sunk In Quite a few timers big timers big especially In the financial financial finan finan- cial ciJI world world are are convinced that end bitter opposition is a form of slow suicide S. S S S. S Some of the participants In that White Sulphur Springs conference which framed a recovery platform from the business angle are beginning beginning begin begin- nin ning to wonder whether it t was wise to be bo so frank trank Their scouts report of at public opinion from various sectors In In particular their recommendation that the federal government turn back relief relic problems problems lems hems to states and cities didn't go over so well Too many people have discovered that the real objective is a sharp cut in relief relief relief-on on the basis that states and municipalities just haven't the mone money to carry carryon on the present outlay A conservative leader remarks that too many people are still in distress for those with large incomes incomes incomes in in- comes to feel fecI complacent about the future J If those who wo have money want to ta keep it they'd be wise vise to todo todo todo do everything in their power to speed reemployment It behooves us to speak very softly the softly the more so because we have no big stick stickS S 0 t S S 0 Managements of ot automobile and steel companies are quietly getting read ready for the labor trouble they feel certain is on the way That's one reason steel production production production tion has stepped up In recent weeks Customers have b been n tipped off to ta get their orders for the next few months filled now now now-In In case a prolonged prolonged prolonged pro pro- longed shutdown makes it impossible impossible sible to fill them later So steel statistics arent aren't as encouraging as they look on the surface The auto makers have tried to minimize the effects of a Mechanic Mechanics Educational society walkout by getting get ting their new tools and dies earlier than usual Even so they're not out of the woods This union could come clo close to tying up a great many plants by pulling out a few key workers Moreover a although 1 If t h o 0 u ugh g h motor unions unions' affiliated d with the thc federation o of labor are unlikely to start anything on their own account ac ac- ac- ac they count count they might e easily join the game once the Educational society has kicked off Proportional representation representation representation rankles more than ever everand everand everand and they the would jump at a chance to redress what they th think is a gross injustice One thing you rou can bank on Both sides will be prepared for a bitter and protracted struggle if it comes And this time the government will need more than d diplomacy to settle basic differences S 09 S S Banking prejudice against long long- term loans to business doesn't apply apply ap ap- ap ply to large and prosperous cor cor- If you have a few v ew mil million million lion in cash and your earnings are healthy the banks will be delighted delighted de dc- dc lighted to help you save e Interest on bonds and md spare spate you the annoying details of or a refunding operation Watch American Tobacco in this connection By the terms term of a 99 year ear agreement it pays the interest on Tobacco Products' Products 36 million dollar dollar dol dol- dol- dol lar Jar issue of 6 2 1 per cent bonds These bonds dont don't mature for for- 88 years years hut but the they can be called for payment at any Ume time and insiders predict the they will vilI be bc shortly Why not not when when the banks will be happy to advance the thc necessary funds at around 3 per cent on month 6 notes with assurance of renewal as required re re- re- re This method of refinancing Is easy and attractive now It eliminates costly and complicated re also marketing problems problems lems ems and underwriters underwriters' fees But some companies m may wish they hadn't grabbed the bait so eagerly when money rates get back to normal normal normal nor nor- mal and md the banks delicately suggest suggest suggest sug sug- gest they'd Jike like their loans refunded refunded re re- re- re funded into new bond issues S 00 Financial New York has a 3 nervous nervous ner ncr votis eye on the great inflation conference conference conference con con- ference of January 16 On that day Senator Thomas Father Coughlin the committee for the nation the sound money league and other advocates advocates ad ad- of doing things to money will assemble to formulate a program program program pro pro- gram agreeable to all aU If they ever get together they will be hard to stop Conservatives are glad so many cooks will vill attend the party part and fervently fervently fervently fer fer- fer- fer vently hope the old adage holds good S 00 1935 prospects are gloomy gloom for a number of ot private New York charities Most of them are running running run run- ning deep In the red and customary contributions have dried to a trickle Even endowed institutions have had to effect drastic economics s sto to fit tit their curtailed income Several Several Sev Sev- eral cral hospitals may not survive the year year which which would mean a n substantial added load to be carried by public funds 0 S When the New York elevator strike as was on on landlords in the affected area pleaded urgently for fora a settlement When they got it they regained their courage criticised criticised its us terms and inferred that the mayors mayor's committee had exceeded ex cx- its authority One of them upbraided n a committee member for LaGuardia's interference and demanded de de- de to know why the mayor hadn't been told to go to the devil 0 S S S STo To which the reply was There are three people you dont don't tell to togo togo togo go to the devil the devil the president t of of- the United States the governor and the mayor If youre you're more than witted half you pay darn close attention attention attention at at- to anything they have to say S S S The bankers are recovering from Jesse Jones' Jones blast at them for tor not boosting the mortgage market and have thought up several sc retorts One n is that they would think more of oC Mr Jones' Jones generous offer to match capital contributed by banks with willi R F C money dollar for dollar dollar dollar dol dol- lar if it he didn't insist that R F C claims must rank ahead of their investments mv They also suggest that a mortgage corporation such as Mr Jon Jones e. e wants should be financed by private private vate investors rather than banks But what percentage does the government government gov got give the investor Hed He'd get all tangled up in the securities act and if iC he made any money it would probably be grabbed o off in m taxes The prospect is about as enticing enticing en en- as a a banquet of spinach Cop Copyright McClure Newspaper Newspaper Newspaper News News- paper Syndicate |