Show tr BABSON'S V Sf ATEl E I aa w Special to THE HE EXPRESS r BABSON DISCUSSES MORE I INFLATION HEDGES I BABSON PARK MASS MASS- Several factors can help to insulate a company against the effects of inflation 1 in l growth A company ing rapid growth will find that Its rate of business in in- in increase crease can lift profits at a faster fas- fas faster ter pace than the rise in costs 2 Vital Industry This in- in includes includes companies in industries which are vital to the econ econ- economy omy or to consumers and which can pass on increased costs by raising prices 3 Diversification and Integration tion Companies whose profits are squeezed by inflating costs can bolster their position through diversification and in- in integration integration 4 Valuable Assets Some companies are in the enviable position of possess possess- possessing possessing ing assets which are vital to their principal business and also potentially valuable in other respects Building Materials Companies in the building materials field also possess inflation hedge characteristics Their timber and minerals properties should gradually become more valuable lotion latIon growth and migration are arc favorable to the building industry's future U US S Gypsum is the largest company in its field it sup sup- supplies plies half the domestic re- re requirements requirements of gypsum wall wall- wallboard board and plaster and also 20 of the building industry's metal lath needs The com com- company pany also produces roofing material siding insulating material and paints Its pro pro- properties include strategically located quarries and acreage Corporation n is the largest domestic producer of hardwood It has large timber holdings In MIssissippi and California Company also derives de- de derives rives oil revenues from Its properties Diamond National Corpora Corpora- Corporation Corporation tion produces paperboard folding cartons containers matches and wooden ware It also sells lumber and building material Company owns acres of timberland Coal Industry This industry has been sub sub- subjected jetted to a long shakedown Elimination of marginal pro pro- producers producers and the shift to mech mech- mechanical anical mining has enabled the surviving companies to em em- emerge erge In a stron stronger er position to benefit from the grow growth l in coal consumption by steel and electric power plants Also research being conducted could lead to discovery of new uses for coal In addition many companies are diversify in lug into other fields Consolidation Coal is the largest domestic producer of bituminous coal and has sub sub- substantial substantial coal reserves The company is a joint owner owner- with Freeport Sulphur Sulphur-in a potash mining venture Eastern Gas and Fuel Asso- Asso AssociatE'S elates S is a large bituminous coal producer rapidly becom becom- becoming ing a gas utility Its wholly owned Boston Consolidated Gas is a consistently import import- ant contributor to profits Company just recently ex- ex exchanged ex changed its holdings in Nor Nor- Norfolk Norfolk folk and Western railway di di- di dividends from which had pro pro- provided vided about half of Eastern's earnings in late years for its own shares and also called some of its bonds This reduced ed Eastern's number of out out- outstanding standing common shares and simplified its capitalization Insofar as future income is concerned the company's coal river barge and other I operations s will from now on onI I become far more significant than in the past Columbia Gas System Is one of the largest gas utility systems systems in the country serving the Eastern Central and Mid Mid- Atlantic regions It owns over acres of land in the Atlantic region which contain large coal oil and gas reserves I belIeve American Agricultural tural Chemical is one of the oldest and largest producers and distributors of fertilizers It also manufactures phosphoric phosphoric and sulphuric acids phosphates and fluorides The company owns acres of land in Florida by beds of phosphate rock sufficient sufficient to sustain production for 60 years International Minerals and Chemical is an important pro pro- producer producer ducer of mixed fertilizer and anda a major rock It also produces potash and phosphate based industrial al chemicals Extensive miner miner- mineral mineral al and land holdings are ed in Florida Tennessee Ida Ida- Idaho Idaho ho New Mexico and Canada Mr and Mrs Aubra Hodgkinson kinson left Vernal Tuesday of last week to take their son Harmon to Logan where he will continue his studies in inthe inthe the field of Forestry at the Utah State University They also visited in Tremonton with witha daughter and son law a Mr and Mrs John Judy Bur Burlew lew and with another daugh- daugh daughter tel ter and husband Mr and Mrs Wesley Joycelyn Williams of Magna They were accompanied accompanied nied as far as Salt Lake City by a niece Miss Norene kinson who spent two days visItIng at the home of her sister and law brother Mr and Mrs James Marie Mc Mc- McKell Kell They returned home late 1 Wednesday I |