Evening Star Newspaper, December 31, 1927, Page 22

THE EVENING STAR. WASHINGTON, n e SATURDAY, DE CEMBER 31 “Lra of Distribution” Is Looming Now as Successor to “Decade of Production” PRUDENCE LEARNED IN 27 TO HELP BUSINESS IN °28 Trade Expe;ng Easier Entrance Into Cost-Cutting Merger Plans and " More Freedom of Action. f BY DAVID LAWRENCE. to buy nlm-n..:.\ ;\ilhmll being ” car | Jected to high prices. HEnu toibe e e W [ “For this reason an amendment has fory as the production decade. been suggested ta the Webh-Pom \nd mext comes the distribu. erene law and the probabilities are o Aoty that Congress will pass it this Win- This is the ortlook which our Gov. ter. It will permit a sroup of Am ernment econoiists foresee. It ex. can purchasers to get together and plains to some extent the period of |aEree on a price at which they will | o L 0L liGRG, oMt LERoRd. e roadjustment and transition which buy abroad. It is really the legaliza- | L TOOOE W0 TONSEEY, SUPINE | made 1927 & moare tion of collective buying. When the | UeB (Hob Sy A %6 . or less unsatisfac- | Sahan v was Baand Be Mch Con | oy " e ware S Saoriily tory vear. Read. j mnceiean thoaengint Seut vl s | T TOE NiltLs b N iy oo only one of many instances in which | 0 . SHleney et American business has found it nec S TSRO T e Teports of Secre: o oD ey methods of meet:“Thyiuction did not cease, however. | as close to the trade has stimulated American |-us|~‘*m = ‘m“hmdw ah e eauIea; miia business situation neas to look for more markets throuxh. | i ofticially is under way except in e out the world. The Depar of | } ’ \ 4 Illinois and the States West. it is apparent | Gommerce has become a m: e | the strike was begun stocks agxre- that while the tution in Washington—second to none | (08 SUIEE WaS FEROE SIOCRS agkie vear as a whole In importance. It is investigating the | oo )" conaumption is only 9,000,000 | would be described opportunities for American trade all | FOTNA1 Colaumiton 18 anly B000000 | as Prosperous, {the time. and by an elaborate sVSted | onijya part of consumers and no ad- | such general of information gathering is placing the | U7 TAe TFt N0 Lons mars B R0 ad| ferms were used cautiously, he. necessary data before American busi-| \GACT T PPEER TS Seak CONCT cause it was recognized that in cer. ness men, | 61 e Vet YRR RGUDYS At | of trade there were mod-| On the financial side on_hand. = Prices in Pennsyl. These “recessions” been aided tremendousl hd ehTns Biles rections uel been recognized as istence of large suppli lower than they have heen in many such in vears like 1923 and 1924, but | The Government again wed | vonyy when comparisons are made between into the SN0 b by Sy wpes l:u It now admitted frankly that and the unprecedented sains of Tegulations concerning the methods by | oy o 15 ROV BIETEC Tan e thET 6 there was a natural faling off.| Which this surplus capital shall be , coiyon and too many miners en-| TUsually. in business, as earnings in-|emploved, but b ain implied re- | o0q in the industry, but the re- crease there is inevitable expansion,|structions that have had the desived J4iidment of this condition so that| so that 1827 found many lines of influence. the soft coal industry can get on a| business expanded to such an extent| Check on German Loans. rezular basis has not heen accom- | that the g of the -‘";" d“:’;‘:' The flotation of loans in Germany. }rlislml. no:\dnm\;mrrml,\‘l;\‘ill it ‘Iw- ;:} no cient to have warrante ! i i - the long as production continues to t suffick for example, has been guided by the | JON% A3 brofucilon continucs But it is an il wind that blows no close line of communication esisting outlays made. The anthracite operators have good, and the general feeling here| ebtween Parker Gilbert, agent found the Winter demand delayed by now is that the prudence which Was| general of reparations in Berlin, and warm weather. so. they now | ed upon the business world inithe American Treasury. Mr. Gilbert have its effect in 1328 (ywas formerly an Undersecretary of the markets which they once con- Businesses have been reorganized 10 the Treasury here and is a close friend | trolled. Those companies. however, | mee: competition, economies have of Secretary Mellon and-4f in touch which are equipped with the mo: heen effected, and it would "not be|with American bankers generally; modern machinery are making surprising to find a year hence that nye the view he expressed in his money. The fact that oil has been in 1928 fizures have closely approxi-imemorandum warni. - German states huge supply and at cheap prices has mated those of 1926. and municipalities not to borrow ex- | militated against the coal companies. | Regulating Production. cessively is merely an expression of !-! has !htlilnr(;w:‘m_llu::; :{-«i" for | On almost every side nowadays the | What Germany’s own prudent bankers, heating and industrial purpos s 5 like Dr. Schacht, head of the Reicl il Government is asked, in one form or 3 another, to regulate production, that |Pank. hav: all along been saying. (AL PRODUCERS " HAVE POOR YEAR | |Demand From Foreign Con sumers Drops Off Sharply. sub- | | 8y Consolidated Coal producers A an unsatis. factory year, and the position, especi- Iy that of ‘the soft coal miners and | operators, is one of the sove spots of | business today. In the early part of 1 the demand trom ubroad. which David Lawrenee America has by the ex- fon For the moment. therefore, there h N w id any legal action . re, Sainst such weluniary curtailments| been a_ stopage of capital ontgo to| #x an industry might want to make. | Sermany for e e | Industry Piles Up Heavy Profits = "';f";‘;"“I’;"’:N:““c‘:;‘:‘;'“:f“’m?,““.:‘f enced the flow of capital to other parts During Year. Usually feels that it should have the 9f the g b A s Cotsaliaad i, right’ in some w: Y to _curt“}e'l_h:(: countries which were neutral during nufacturers of industrial chei production. The Industry 1 el ot | the war. there is a feeling of satisfac. | cals piled profits on profits in 1 e wyars are” still lion here that these dollars will ulti- | having made a gain of 25 per cent | the Government lawy erS_":l that | Mately come back in the form of pur- | Over 1926. They followed this with a e ey e ried chases of American goods and sur- Kain which is conservatively esti- Jooks like a concerted price fixing. pluses mated at 15 per cent as compared with In this problem of 'fl‘:h_“"i Stei| The big outstanding fact is that that year. The point about the situa-| @uction the ‘-0_“'“3"“'"‘ ?“3.’“";_l ust | America has learned in the Iast 10 | tion ‘Was thal mast of the business | part. b«au"l ihe bhem‘d:m" books VEars to produce economically and to | done was done under contract and | e e I roment of Justice still| 0utbid other producers in world mar- | the producers were able to cut their | B e e o over the| kets. Quantity production has be- | “coats according to their cloth | D e en that wapt 1o fix | €OMe 2 fact in many lines. The prob. | This policy undoubtedly will be car. | heads of businesses bl want e TF|lem s how 1o distribute the jarge |Fied forwand into 1933, althouch the R rant “Attorney: General Donovan | SUrDIus left atter our production takes e L I e e o the Department of Justice has de. Care of domestic requirements. | ably wil ower than those of 19 veloped a new practice of conference| AN important factor is the question it industry. Twhich tells business | Of ocean freight rates. which depends In advance the apparent dangers of UPOn the policy of the Government i Artuate | toward the merchant marine. Whether | S " ¢ | the present fleet of ‘Government ves O minet prose. | tels 'is maintained and replaced b cotion “but " net infrequently some of | new ones or whether the Government | The pitfalls that might lead to prose.| lends money, under the so-calied Hur- cution can be avoided In informal | 1=¥ plan. at a low rate of interest to the railroads or to private operators K e, Principals and the | L orallv. %0 as to establixh a private. - [1v-owned American merchant marine. Business Seeks More Freedom. |, f.ct iu that whatever is done wili There has risen. nevertheless. a cry | have a bearing on the subject of ocean from business men that the Sherman | freight rates as an element in the ! snti-trust laws ought to be lm':r;dml eompetition against foreign prices s0 that husineas will not be embar- : russed and restrained from natural Tariffs and War Debts combinations that must be set up in Very little talk has heen heard in order to compete in home markets as the last six months tn Government well as abroad. The Government at | circles about revision of the war debt titude is that there may be certair | agreements. There has been much economic reasons for combinations of | more agitation really about the pro- | big units, but the consumer must be | tective tariff. Again the argument | protected against arbitrary use of nas been advanced that if the Euro- | economic power by big business pean countries are to pay America mergers. Business, on the other |their war debts they must do so hand, says tha* a new efliciency has through goods purchased by the o be developed, and that margine of | United States. and that these pur- profit are constantly being reduced chases cannot increase materially and that overhead can he eliminated | until the tariff wall comes down. by eombinations of various concerns | In other words, it is being reiterated in the same line of business. 0 that |that America cannot expect much | | of them will conceivably make money from Kurope on the war dobis more money in combination than as unless the tariff is revised consider- separale unite. ably. But men like President Coolidze The past year, therefore. and other wtalwart protectionists many mer % Most of these arose would rather xee a postponement of from a derire to eliminate waste. cut war debt payments than o dixturh down overhead and reduce the sclling | the tariff structure. They feel that hikh cost. Labor already has been exempt- wages at home are dependent upon od from the operations of the Sherman | keep'nz up a certain level of prices Jaw, and so has agriculture. Business yxsured by the tariff wall. and that is not sanguine about getUng any- greater disturbance would follow a thing like a repeal of the Shernan revision of the tariff than could pos law, but does want a better defini- | «ibly he made up in maney benefits tion of what can and cannot be done through war debt payments Also, The Department o Justice susgests | there ix the fact that the amount of that such a definition can best be ob- money in the next 10 years, under tzined by a merier of test cases In | the gradually increasing scale of pay which concrete instances are placed ments. i» only a drop in the bucket hefore the Supreme Court. The View | compared to the billlons of dollars in is taken that the Eherman law is lke | volved in the American tariff struc @ charter of principles snd that a yure test of whether an actual restraint of The agitation for 1rade exists must be Jeft 10 the ape- | ariff, however. will cific case, and that big combinations 1925 and. while it is conceded. even 4re permissible, provided no undue in protectionist quarters. that many s¢vantage is taken of the public parts of the tariff law are inequitable ’ men & fear that if the subject Government Kegulation Probable. | 108 B 5 OO IV G Golig mean 1f the entitrust laws mended | 1o, much Adisturhance. sorue day—and the movem # ing in that direction—any chenge Polities and Business probavly will be accompanicd by some | » ux to a discumsion of measure of regulation on the part of polities as it wffects business. Should the Government. Jhis will be the | there be an overturn of administration price that business will have 1o pay iand the Democrats come into power ] - for such amendment 1o other words, (1 tx generatly predicted that some [through the Chamber of Commerce of | the Government wmust retain some | revision of the tirdf will he understhe United Htates. for n $460,900,000 Power 1o siep in M It becomen ap. | taken: but here again the prowsur of fiax reduction. hut the ndministration | perent that a large business combing | Amer.can business. even on a Demo- [ han felt this was too high The Demo | s fixing prices and developing a | eratie ndymv.)»lm!lul:‘, ‘h.;- k always :l-‘m.h:,,.v\l. l,;nnnllnl :,.' |-ul| lllll apoly which lea he conzumer | been very strong. and It is : sgh the House nvolving a tax eul m.wl:. um.; of H;.I:A'm‘l- ::tm' .':.: ‘red ikely thut wuy radical ! clome to $300.000.600, hut wlien the ap. | try huve naturs) monovo. | dislon of the tarifl would be sitempted. | propriations for fiocd eonirol are def ey sre regulated the! It weems to be taken for granted 'nitely known, in Janu, or Vebru | 4 ki | here that Gov. Bmith will be the Demo | ary. the Bonute wiil huve to trim safin | slirusds are regulsted by the | ¢ wominee. Neports from bual [in order 10 tuke care of the increased e e e s | e e as 16 Gov. Bmith's attitude |exponditures, for It In fat that §308. x Goes Dot want Lo bring | oward economic questions tend 19| 000,000 1x not Ikely (o he enough for o tiagfonsiromorinlhdopiee vary His views on water power are |00od control, or. vather that tnore e » inetitytion | notrelizhed Ly the public uillity in-|money wil ‘mv. lo be apent in the Tradde Com o ustry nd this 1o some extent colors | Nex Iree yeurs han Is planned hy ‘,,.,. u,,,:.'..... Thist eff |!7‘y.'...nnuu. of other businews groups (the War Department in Itn © e of ecunomic power or te | But, on the other hand. there is the |moncations The Minsinsippl Vallev of G The Vedersl Trade statement witribuled prominent [Bpprehensive ab anather flood and | Ion B hiTlhak Tttt Lo don | st are angaged in bui. | ixlous that more money he apent fiigtn within s industry wnd | pess in New York. thut the New York I the next three yearn than in the [ enforced Jovernor une aiways golten slong ""'”"“,’f“ ven Bt of Justice well with the husiness Interests of L Bk Tux ( Sight Anyhow. > u school of th b Emple Slate | OBut there 1eon big tax ent In wight e ing ch Kleet of Contidge Statement Tanyhow, wnd this e expected to stim erference (0 business sy publiesn wituation, | BI8e Dusiness, not only by parmitein | recognition 1o 0 doubit EnaL the stateimant (010 A Ui taxpayer Lo apend e f the embmrrassments of inter by resident Conlidge an Au | MOney that he otherwise would give bt Af industry s1d wann | e b ot hime 16 run. |19 the Government. but alao by pros 0 curtadl production wn "i el g effect at tha Ume | SO0E an lncentive Experiance han the inevitebis veauit hers ) Biad an uieetnE SERCE L FY aatly, | BKDE that low tax raten do have & Government regulution vt | s (4ct that It wus inde vers eas g | ptimulating effect on individual initln wone kind es protection o 1he cun ey, S y © {Hva oo i S o { Giscaunt its effacta, und ',’”(""‘:": iy 150th the Demoerac. and the Jtepub | sre mioe ur lase rasigned Lo i\ Deans reulize that the sucgens of of & change o thoughit of change | Auerican businuss depeids upon beln han bewts 1o woma extent witeviated by | GUGHET DLORGR develop patu the knuwledge thit former Guv I;W [rally and without excessive Govern from & period of big groduction 1o | den. Vice President Dawes, Herbertdyen “oivaint, Brondly spaakong an ers of distribution The Govern | Hoover and Betwtor Curtls, who 816 | (hury 1y 1iitle fonr s to the setlon ment Bgslu comes tuty the ploture | the i Republican candidates |y uoggont Congrens so far nw | bece use of Lhe eagernese of Americnn | sl b @ of the bueiness | oun” prosperity s concerned The b se 16 get tisde shaved It world large ul'm" II'I\"A"‘:"‘ ‘.lul;lt i of husiness are sl in the yeplized ‘hat our sur st Aod | apondent convinoed lan g hande of Lusiness » mer kel Our expe v'v " B been | thut Mr slidge merely meant 1o e The big avestion shead 1o to apply s by bounda | uove bimselt from the race so 88 10 |ihe jsanons of eMclency that have besn srtels &t wive oiherm # chanea and (o &lve the Linained In production snd 1o apply dentlal dictation or influence. "here is no doubt that Gev. Smit is the best vote-getter the Democrat have had in the Eastern States. whe big electoral votes are counted. The | epublicans know that they must hav an equally strong vote.getter, or a bet- r one. Opinions differ as to just how strong Mr. Lowden. Mr. Dawes, M¥. | Hoover ar Senator Curtis would be in | the Kastern States: but opinions do | | not_ differ as to what Mr. Coolidge's | strength would be in the East if he | wers 1o be renominated. This convic- | tion on the part of many political lea s has led (0 an undercurrent to the effcct that Mr. Coolldge should he drafted in apite of his personal wishes. Many husiness men have given up | hope that Mr. Coolidge could be per- | suaded to accept the nomination, but athers stil eling to it. 1t by any | chance the Republican National con- | vention should decide to usk Mr. Cool. | idge the definite question of whether | he would accept the nomination when tendered to him. and if Mr. Coolidge #hould accept, there is no doubt that | the business world would be very happY. indesd. Such a sentiment for Mr. Coolidge would probably develop more intensity if business conditions In the first xix months of 1925 were above expectations —a elrcumstance that is considerad not unlikely If agel. | culture should have a good beginning | | h | a has seen Congress in Chaotic Sexsion, ngress ix in the midst of a chaotic session, but many of the things which are getting the hesdiines do not iterially affect business. ‘The contest | over the ting of Senntors elect | | Smith and Vare in Interesting rvIle{.} but it has no reiationship to the husi. | {ness world, any me - than the inves. | ation into the uperation of Mexican |finances The investigation of the | | public utiiity ndustry in. however, an [ exception. and there Ix no concealing the fact that public utliity executives | (are worried over the extent to which ! | the Investigntion may o 1 ! The big probiem of flood a Kource of much worry. ber flicts between the Statox und the Ked {eral Government probably will not he froned out in a single sexalon of Con. grems The lowmex 1 th Lenusdppl New Eng. | land due to th ave playved n | vital part in putting exn {0 a re centive maod toward lnrge nppropl ations for flood prevention The {nmount that will ba expended will uf feet the tax cut Buniness men have been asking ma- | a revision of the inue during rontrol Is | con- | Thix br con Ly 3 hiide b on sny 1 reg Yedera have Vntair huresus like thy | [ ight | ernment | £ sie As the It there winong otfein Serene b imsued Foreign Trade Problems Thees tendencies ure wigniticant of the transition stage~the tronster 1 il s the confl sl o Wi ‘ e } ‘ combinations al | vather | which wou! y tlon which once w GREATEST “GIFT YEAR” RECORDED IN AMERICA Nearly $200,000,000 ity for _Education, Char- Health, Art, Libraries and Other Philanthropic Enterprises. Y R. 8. PICKE) (Associated Press Staft Writer.) MERICAN wealth to tha extent of almost $200,000,000 has been given away in 192 Records of the Russell Sage IFoundation Library show that this sum makes the twelvemontl nded probably the greatest " in the history of the warld. With tremendous Christmas gifts from foundations not yet reported and had | with gifts of less than $100,000 not in- | cluded in the summary, the total for the year at November 1 was close to $150,000,000, Those familiar with the customs of the Nation's large givers are expect- ing the total to go far heyond the £200,000,000 mark by January 1, push. and the advancement of knowledge within the last decade beyond billion-dollar mark. Huntington Gift Largest. Creation of the Henry K. Hunting- ton Foundation on the West Coast, with its endowment of hetween 340, 000,000 and $30.000.000, was the larg est single contribution of the year and one of the largest in history.” Of this amount $8.000,000 was set aside for earch in American history, the argest amount ever given for the specific purpose of advancing cultural knowledge. Mrs. Mary E. Emery, inventor and manufacturer of the cmery wheel, left ,000.000 in the form of a foundation for charitable and educational purposes, The foun- wife of the | dation will establish offices in Cincin- nati, where Mrs. Emery lived. The will of Henry Buhl, Pittsburgh capitalist, ereated a fund of $15,000,000 admit that they have lost a part of for charity, the largest single fund set |* » during the year for that purpose. | The people of the United States zave $10.000.000 for Red € food relief when the Mississippi hrok through its banks and flooded lar, areas in half a dozen States. Other Causes Enriched. Whila the advancement of knowl. | edge and charity wers the objects of | the principal benefactions of America's weaithy, there were cantributions for |in the United States was in Philadel. | fighting disease, for the “Weltare of ! Youth " and for the building of model \ ciety was organized for helping | tenements. Aviation also received its | ring women who wis millions, Large sums of American money { went abroad. the Rockefeller family tions, such as the Rocefeller ¥ I | leading the way in the foreign field | with a $2,000,000 gift for a League of Nations library and $1.600,000 to the people of France for restoration of | national manuments destroyed during | amounts to the advancement of k the war. The University College of London received $390.000 for educa tional work from the Rockefeller fam- ily, and George E. Eastman, Kodak manufacturer, gave $1,300,600 to the Royal Fres Hospital of London for a dental clinie. Edward 8. Harkness Rave Andrew's University of Eng- land $500,000, and Samuel Untermeyer contributed $100,000 for a Hebrew | university at Jerusalem Among the unusual gifts of the venr were those of Frank ¥, Camp- hell of Atlantie City, who set aside $1,000,000 for the advancement of the welfare of youth; B. G. Dahlberg of Chicago, who gave $1,000,000 to ad- nce home ownership in the United E Dr. W. F. watkee, who left $100,000 for “re. | =earch in delinquenc: and Fred R. Lavenburg of New York. who offered £1.000,000 for the building of model tenements. Jargest Single Gift. Aside from the big foundation cre- When | inz the total amount given for charity | 5o, the largest single gift to charity | was from Mrs, C. Sellew of New York. the | who gave $2,000.000. John Whalen | of Brooklyn left $1.400,000 to the | Roman Cathelic Church. Diocese of sw York, for use in its charitable work, and 8. Friedman of New York left for Hebrew charity $1,000.000 Elimination of disease was the ob- Ject of # number of big eontributions. R. F. Cutting of New York gave $250.000 conditionally for cancer re- search. J. P. Morgan gave $200,000 for research in sleeping sickness, the malady of which Mrs. Morgan died. The fraternal order of Elks set aside | $2.000,000 for fighting tuberculosis and aiding crippled children. Eldridge R. Johnston. president of the Victor | Talking Machine Co., gave $400,000 to | the University of Pennsylvania for | medical research. | The Carnegie Trust Fund made {one of the unusual gifts of tha year when it donated $1,000,000 for play grounds for British children. Home for Aged Women. Davis Warfleld, president of the Seaboard Air Line, left between $5.000,. 000 and $10,000.000 for the buil ind upkeep of a home for women. and Abraham E. Fitkin, re |tired power company head. gave ;sn.(ulm.u% for a crippled children's hos- pital, The Russell Sage Foundation file: how that the first foundation created | I | bhia in 1870, when the Magdalen “er- h to regain the paths of rectitude, nce that time perpetual founda- ound: tlon, the Carnegie Foundation, the | Russell Sage Foundation and other. have been established and are daily contributing in _ large and small nowl. | edge and (o charity. These founda. tions have many millions at their com | mand and employ thousands of per- sons who spend theair ent time in- vestigating charity cases and in the advancement of science. 'GRAIN FARMERS VIEW 1997 | AS FAIRLY PROFITABLE YEAR cree. Results of Past 12 Months Bring Plans for Greatly Increased Acreage for 1928. BY GEORGE (. SCHNACKEL. HICAGO. December 31.—The &rain farmer, looking back over 1927, has felt o well wat. isfied with the results he ob. tained trom his erops that he | TAKIng Spring and Winter wheat to- | plans to plant a much larger acreage for the coming year. Prices. particularly of wheat, have not been high, but apparently the grow- ers consider that they are profitable They have planted from cent larger ucreage to Winter wheat than u year ago and plan a bumper yieM. Corn selling from 14 to 15 conts over 1920, %o relurns 1o Krowers are satisfactory except on feeding te livestock, And oats have heen the center of a bull movement, with ues 710 X cents over last vear. tiona to plant point to increased acre age of hoth of these crops in 1928, But_even ot that this has been a r of comparative quiet on the Hoard of Trade. The price r ® has been narrow for the period, with nothing sensational to divert tha trade or increase dealings, except for a brief “purt In corn early in the Summer when the crop outlook appeared dark An unusually late and mild Fall saved the situation, bul hrought about a 3. cant drop in pr Concerned Over Polities, Thin perlod of quiet Is causing con or three of two the threat through ciuses political Foremost bilt, ulative trade This has dixcouraged outsiders and af fected professionul dealers who hest tate to make long time commitments ‘Then there s the boom on the stock market which has uttvacted specula Mt into krain sides thix, there are manv traders who belleve that the Canadlun whoeat pool now ta dominating the world murket In that grain and that individuals are handicapped In thelr efforts to anticl pate price movements One large operator recsntly xaid that thereaftar ha was plani 1o transfor hin netivitles from wheat (o which wans more of n domestic market He expluined that the Canadian poal now ham & membership on the Liver pool morket and that Keroun o tnke u declded wtand on the market when this ngendy might dump whenever it wiw AL or support the market at It whim. The world situation has been rather beurinh 0 wheat. and as a orices pald Amacican farmers fo yeur's product were five to nine under i yoar ago. Neverth fuirly profitable Jardine Optimintic Bocretary of Agrloulture Jardine in fact. ta optimiatle over the outlook confranting the farmer and wt the wame time foels (hut agricultuve has had w goud year “Farming has vey thieo he of the by ita products In poat wip de. cline” b explained 0 fewer uoren and with a farm population 5,000,000 ean than In 1919 the ageicultaral o dustry winve 1928 han averaged i r production than in (h yeara Imimediately following the war The furmer through inoreased effiolency, In offwstilng, In some degree at leaat, o more (han R power tost the effect of unfavorable prices. “Although unfuvorable weather de. Inyed planting and the weason sturiod [ Alecouraging conditions.” he ways “produotion principal orops was eatimated on October 1t | per cont whove (he averaye during (he lusl Nva years cent be I . Republican apportunity 1o Lihem tntensively in the coming decade ol distiibution, ‘ sking A ety an ¢ Americen bumnces men | make ita Cigg s unaffected by wo called St 10 o corin helt prodiction af copn » vooent gieator than st 5 to 9.8 per | Inten. | cern to the trade and (s attributed to | o | yyear, although 1 per cent helow the five-year averuge. The wheat belt, especially the northern pact of the Winter wheat and all of the Spring !wheat area, has had a good year. Plh'r. the country has harvested its argest crop since 192 Wheat pro- | duction is " estimated at $57,000,000 bushels, compared with $33.000,000 | bushels iast year and a five-year aver- age of 508,000,000 bushels. Wheat produced in 38 countries of the world totaled 3,392,000,000 for this on year, or 104,000,000 bushels larger A vear ago. Naturally prices re 1 this situation. Bumper Canadian Crop, Canada was particularly fortunate in producing another bumper crop de the late start of the season. vield ix set at 415,000,000 bushels, compared with 353,000,000 bushels last year. This wheat ,is in direct competition with that fram the United | States and has weighed somewha beuvily an prices espite the big world o traders consider | valuew will be falrly stable. The i forelkn buyer hay been satisfied to DAy present prices. He has ubsorbed 11.600.000 bushels more wheat during | the first five months of this erop yuar than during the same period In [ 1926 And st year's exports were oAt on record, totabnk ap ely $12.000.000 bushels irope thi {eron than a year ugo, but the quality was nothing to brag wbout. A wet harvest made the crop rather poor for milling purpos d has neceanitated the mixing of good North American wheat to bring it up slandards, Xporters loc t tlect & vield, that how- present for a steady demand for our wheat for that purpose This helps the wituation for the American farmer as every country in the world WIth the exeeption of Australia | produced a larger crop this vear than st Latest reports from the Nouth v Hemisphere indicate thut Austealia W hava about 60,000,000 bushels for axport, compared with ubout 110,000 | 000 husheis exported (his year Lat Oxt fgures show (hat (he Northe Heminpher bushels of wheat, SOL4000.000 lunt vear and the South. srn Hembsphere whout 400,000,000 Dushels, compared with 431.000.000 » year ueo, OF this totul Import countries pro. duced 1.105,000,000 hushels, compared WIth 1,014,000,000 luwt year, and ex porting countries produced 1,940,000, 00 hushels, compared with 1,908,000 [ 000 lawtyar. Corn Rivaly Wheat trade haw civaled that of Wheat for interest during the yvear Out of the Hummer Murry. when i Anpoared that the lat would 1y o frost d before maturing hiw come a aubatantially higher price Vel In wplte of & crop eatimated to b lavger than in 1936 and in splie of the autlook far lnereaned produe HON next vear and redyced fnem eon SUIDLON hecause of the smaller num hor of live atock an foad. The oorn cron e esthnated a2 788,000,000 Wushels. compared with 2847,000,000 or husking returne Droapeot ive yield (Cooviieht 10er L Cofte: !;lpom D«Nkln‘ Caffue Imports into the t'ni Htatea in the first 10 month of | Wers upproximataly 400000 ponnds Than 10 1020 bt the privces ot Mraxittan oo showed marked wd an W came on In Onie ey weare approsimately & eents a pound m.h!.“lhm n June, compared with nn Becker of Mil- | year produced 4 larger | 10 required | hax | hax produced 3,030.000,000 | MOTOR INDUSTRY 1S SEEN IN SLUMP Production This Year Ex- pected to Be 300,000 Under 1926 Figures. By Consolidated Pre: There was a sharp line of demar- cation in the automobile industry be- tween those companies which did well in 1927 and those which did aet. There were five great automobile com- panies which had a successtul year. General Motors, now tha leader of the industry in point of size and produc- tion, had the most remarkable year of | ita career, There were at least feur |other concerns which did splendidly. | Then followed a number of eorpera- | tions which had fair profits, but the net income of which fell materially be- low the level of 1926, At the tall of the | procession came a still larger number of companies which had disastrous years, Competition was extremely severe. | There is every Indication that tetal production of “passenger automabiles | this year will fall at least 300,000 short of the figures for 1926, which oximated 4,000,000 ears and trucks. This is not surprising when it Is realized that the Ford company was jout of production for approximately | eight months, | Exports Inecrease. Fixports of automobiles during the year have run over 35,000 ahead of the total for 1926. when 233,440 were aent abroad. There seems but littie queation that the Ford activity in the early months of 1928 will mean a big increase in | automobile production, It will also | mean a decided tightening of the lines | ot competition and, In consequence. | there are many of the weaker com- panies which are looking longingly toward possible mergers or consoli- dations; .nne of the features of l.:u ;‘::l mpaign of the year was the N Tarite of the roadster and collapsible coupe types and the indieation of a trend back toward the open cars. Automabile truck mlnuhclute;:ai: | betier than passenger ear ma - | turers, in general, in 1927. The num-| | ber produced was only slightly under | | that af 1926. In 1928 it is fully ex pected that production will rise abov: the half-million mark. Lighter Trucks !.I‘hl.m‘ The feature of the truck Industry ‘mnhm' demand for the lighter one |and two ton vehieles against the mand for heavy duty trucks. | Several comipanies suffered material- {1y a< a result of the wking in of used | trucks on too high a basis. They are ! not likely to make this mistake during | the ensuing year. Russes are grad | | | al aged | | dually passing nto ands of public service utility opera- tors and :h- private Arms eperating | busses are growing fewer. It is esti- mated that there in slightly over 80,008 motor busses in the United States, of which the larger number are engaged |in common carrier operations. How- | ever, there are nearly 40.000 private carrier busses in operation. . e OUTPUT HOLDS | FIRM GAIT AT YEAR END| | Customers Show Readiness to Buy | in Advance—Economies in Production. By the ' Amociated Press. Contrary to the mermal procedure. | steel production at the close of lh(‘ year was well sustained. with cus- lomers showing an increased willing | ness to contract slightly ahead for heir requirements. | e Earegate. production In 1937 tei | slightly under that of each of the last three years. Production was approxi- mately 8 per cent compared with the record.breaking fgutes ef 1926, Profits dropped atill turiher in some cases owing ta the low which were obtained for steel prod: uets, On the other hand. igon has been nurkably dy. ‘There have heen few ups and downs and this has gone fur to cut costs. assisting the margin of profit. Further curiailment of expenses | has been achieved by the intreduction of new methods and by electrification of plants, An example of the former is the new system under which | wrought iron Is produced. Mill orviers were placed later than usual this Fall. | but aggregate about the same ton | nage as a year age. Siructural steel orders in the late months of the vear | | ran 20 per cent ahead of this type of | bustness in 192 | SUGAR AT LOW | { | | | | i | \ LEVELS THROUGHOUT LAST YEAR Cuba Cuts Production, dut Prices Did Not Rise—Eurepean ! Output Increases. By (ha Associated Press Prices of sugar were gtable, but they were ut conaist: ently low levels. Thix was not a0 trimental to domostlo sugar pro- ducers as it was to Cuban factors in the indusiry. Cuba restricted Ita 192697 output (o 4,500,000 tons, This | did not werve to ralse prices. La this year the Cuban Congress passed restrictive sugar logisiation further rexuluting the mavketing and produe Ing of sugur in the island, and beet P sugar wnd cane sugar producers in | (orelgn countries wre understood 1o have agreed (o help the Cuban ve | wtrietive campaign Up Lo the present time, hawe s program has not sufoed to vance prices materially and probably will not do we. until geinding starts sometime after January 1. 1t | indi sated that Cuban produotion will be l;muo\l Lo not more than 4,000,000 tons (hin you he European production has shown A materinl (ncrease this year, aecord: g (o cron statisticians, and anless they also cut mavketing appreciabl { the decline in Cubw will be oftset b e production wbroud e " PACKERS SHO\'" GAINS. ldated ching houses did 8 decidedly 1avuer gromn business 1907 than in (he previons year Mueh of (his wis of domestic origin xlnee (he expwrt trade toll of Most of the companiey WL veport net inovmes elossly ap. Proximating those of & vear ago Cattle prices have been higher than over befure and this has been e Hooted In the beef trude throusn o diminntion of demand How prices have deonped off and this han mea W better margin of profit te the paek: throughout 1937 [l It throughout the entire industyy Wwhen the disastrons war with the Bngliah packers for the ¥outh Ameri : o fnally was browahie (o w definite canelisinn Phis prive it e slingkle cost mll the packes milliona of dollave | Ance of power consisted | France and Jugosiavia PEACE, AS PROSPERITY’S HERALD, RULING EUROPE Peoples Abroad Working Hard to Clean Up Mess of War, With Locarno S BY WILLIAM BIRD. ARIS, December 31.—Europe en- ters today on ghe tenth year ¢ the Great War, and it is plain to anyhody who lets his memory travel back to 1918 that a tremendous work of recon- struction and pael- fication has been aceomplished in what is after all, in the life of na- tions, a very short in- is easy to grow impatient be- cause this werk does mot progress faster. Yet only 10 shert years ago it most of Europe was in ruins or in flames. Twenty million men were in a death grip on the battlefield and had been dead- locked for almost four years. America | ‘was rushing her military preparations, and had. In fact, already landed a vast Army in France. But also the Ger- mans, on sea and on land, were pre- paring for a final thrust which they believed (and which many of their enemies feared) would win the war | before America's strength could make itself feit. Few would have cared to pradict in those dark hours that enly 10 years later the wounds of war weuld have so largely healed. Millions had been killed, millions more maimed and dis- abled. still other millions had died or lost their health irretrievabiv throuzh pestilence and famine. Mines, rail- roads, tories in every belligerent country had been dJestroyed or di- verted to war purposes and thus erippled far peaceful production Woerst of all, perhaps. a_spirit of re- | bellion had spread from Russia, troops were mutinous, workmen were strik- iug. KEven if the war could be brought 10 a quick and vietorious end, which ssemed unlikelv, what hope was there of checking the march of Red revolu- tion* Picking up the pieces, “cleaning up the meas." after such an orgy of de- striction was an arduous task for the lisgruntied and exhausted peoples of Kurope. The victors complained that they were being cheated of their spolls; the vanyuished lamented that they were being martyred. Mutual recriminations fle'~ thick and fast, the allies quarreled ameong themselves. But_graduaily, after a few years of fumbling. Europe began to go to work laboriously te rehuild what had been destroved. It is passible today ta di eern what form the new Europs 1aking. ful, Lecarne and Balance of Power. Aristide Priand and Gustav Strese- r.ann, as foreign ministers of the twe principal belligerents, are the archi- tects of this new order. Both have had three almest unintarrupied years® in oMice. and while hoth have their eritics and taeir enemies in their own countries, they have enjoyed practi- | eally a tree hand in the development of their foreign policy This policy, which has been dubbed the “palicy of Lacaroo.” from the Swiss village where it first was shaped, appeara today to have as lis principal effect—if no: its avowed object—the eveatual elimination of Great Britain as arhiter in continental affairs. The traditional Rritish policy of the hal in dividing the Continent as equally as passible into two hestile groups. which bak anced each other as at the ends of a see-saw, with Rritain ng in the middle and lending her weight to one wide or the other as British interests might diciate. Thus, when the cen- tral Eurcpean group, headed by Ger- many, appeared 1o be getting too powerful. Britain swung her welght to the side of France. fust as a hun- dred vears earlier she had taken the Prussian side against the France af Napoleon. For a short time after the war it looked very much as if the Rritish foreign ofice were preparing to return 1o this svstem. again taking the German side. as being the weak. and thus curbing the supposed atm of France to estadlish a centi nental hegemeony. Indeed, those who take ne stack In the Locarno paliey today are con. vineed that the iraditional British pol tey is still workinz. Enzland and Italy have & working agreement—necessary %o far as laly is concerned, because of England's masterv of the sea. on which Italy depends for coal and food Enecouraged by Britain's benevolent attitude, ltaly takes a decidediy provoe alive air towant her neighbors. France re. taliates by a “defensive™ aliiance with | Jugaslavia ~ defensive againat Italy. | of course. because it is only via ltaly that the French and the Jugosiavs can make contact, and ltaly is their only conceivable comman enemy Similarly the French entertaln cor dial relations, consecrated bv similar Ve treaties, with Crechosko . Poland and Rumanla, all inter like France, in malntaining the Quo, and particularly in pre ventng anv revenge movement by Hungary, despotled of her border prov- inces, e two rival groups— Ia.an en the e hand, and thy leading the chain of duller states of eastcontral Kurope. But they are of unequal atrength, and there cannot be | the silghtest quest o0 tul The answer to this. fram those wha are skeptical about Locarne, is that It ever the French and the Malians Ome to KU, the Germans will nat miss such & aplendid oppertunity o Jump an France's back. But What About Russia® Rt this would bring the Pules into the frav and the inevitable interven. ton of Noviet Russia against the Foles That Polund woull again be wined out and divided between Gen many and Russia fs handlv to be doubted Such & result would he a catastrophe for Great Britain, which WILh reason has always feared the Ruasian bear more than any other POWSE A trlumphant Russta would O course, menace Kngland s eastern trade routes (o sy nothing of the added danger of spwading revoluthon Ay propaganda in India and tn the e Rast Mch consilerations. of ecourse, are Behind (he diplowatic bieak that oo Cued (RIS year between the Soviet vepublics and treat Weitatn T 1%, hewever, another and pers RADY V0N ALIIKSE TRaROn (0 sUDinwe that Bngland will hardly carcy her NeW friendahip tor tialy to the point of encouraging talian agytession BRI BYanee 1 the event of such W WAE an hae been desvribed. it iy WbVIous that the United States wysin w.\\\‘n\l be the pawerful neutial suw Pyl money o pay fae theml (o one or the Olher group of belliserenta perhaps both. "1t e equally ebvious that France Woull be our mest apvess ble custamer. It tair te wsaup IR were & halligerent Franve mnd 1t s hod e how Bagland oot ansing Blaly otherw el that the Freach binatlon is immensely mare power h on the other. | armaments Wil leinding the | pirit Big Factor. there would be a British attempt to blockage the French ports, particu. larly against American supplies. Few can doubt that the Unlteq States wauld determinedly resist any such effort to restrict ita eemmerce. It is inconceivable that a British bloek: could effectively enecireis Fran Even if that were accom. plished, supplies could still be ship. ped to Spanish ports fer conveyance to Franee. In such a eontingeney Britain would have to fall back on the doctrine of ultimate destination against which our Department »f State protested so vigorously between 1314 and 1917, ! “Disarmament.” What is a nation's navy for, it not to protect fts trade? 1Is it imagina that after the scenes at Geneva ! ast Summer during the so-called Naval Arms Limitation Conference. the American Navy could tolera:. complete denial of American right trade with Europe? The conference which Presiden: Coolidge summoned together, amorg England, Japan and the United States, showed clearly the rivalry that between the British and American navies. Both governments insisted on the absolute right to have a navy sufficient to protect their foreign trade. And as foreign trade is re. stricted only in war-time, it is clear that the United States Navy is use less uniess it can be calied upen :in such an emergency as haa just been pictured. Nobody cares to say what mig happen it Britain and America were thus brought to grips on the sea. The easiest way to avoid this question is to assume that Britain will ge a Jong way 1o prevent such a happening. And that makes it seem fairly certain th she will not hack Italy in an aggres sion against France, and particulariy that she will not encourage Germany to unchain hastilities. which eouid not fail 1o bring Russia thundering into the fray. Or is it easy to believe that Itals herself. on sober eonsideration. would care for a war in which German: would be an ally? Should Germamy join Italy In a successful war. it would mean the annexation of Austria to the German Empire, and thus wou'd give Italy a stronz and eventualiy hostile neighbor on the north. instead of a weak and submissive one. How long would the “greater liaiv" re main intact under such eonditions Most thinking people in Eurepe are thus led to hope that ~Locar n reality the begtnning of a new erm of peace for Europe. No douht the routine dipiomats of all countries find it hard to believe. They tilh pa'k in terms of the ald order Rut there are alwavs “die-hards’ and ver as Valileo said. the 1 does uine. atter all The year 19 and Eurcpean e n J Alr communication for the Rrsg (ine The vear 13:3 and will ne do wee uther yet undreamed of The greutesy they could bring to Eurupe, vi for a score of centuries uf fratrs wars and periodical devastation be the gift of pesce. fure prasperity. i | | ) 2 | marvels AKERS HAVE SPLENDID YEAR Ford Demand Seon Will Stimulate Market—Supply of Raw Adequate. By Consalidatad Press. Conditions in (he market for e-vde Tubber, assured suppligs, mederate prices for eotten fabric and remark able replacements demands combdined 1o give the tire manufacturers, !a gea- eral, a spiendid year Not all the pro ducers partivipated in the improve ment. but some showed increases in sales of 10 per cent or mare w more than carvesponding profits High I‘n'\"d rubber supplies have been P ally liqui oblie production was met a: throughout tha year and erig inal equipment demand was smaller i» consequence. dut this was more than offset by the replacement sajes Th Ford company alope will shortly re QUIre 4,008 tires a day, and thie de mand will he increased stasdily tn the early months of 1% Fully 65,008 s SINZS were produced and seld dy the year as compared with 53,0000 in 193 Net income of the 18 leading pro ducers showed a gain of over “'l:l cent as compared with the previeus vear. Throughout the emtire pariad bher supplies were fully adequa:» desnite the Hritish restoietions Rubber prices for the year avera, well under thase for 1 and it Only in the late manths that QUALALIORS moaved adhout 44 can pound. Stocks appreximate 149 tens at present. CIGARETTES BEAT 1926 OUTPUT BY BILLIONS | Fine Cigars and Other Porms of Tedaceo Pail to Record During 1037, B Consalidated Bosa Ulgarette consumntion Moke & PROTES R I Dimestie dema was § per cent greater has Jn e * Brevieus hanper yea Cumpetition was extremelv heen ant |millane of dollars were seen: fm 4 Vertining various bramds. Severs) mew thrands wers puk i the mariet a some of these Devame (ncreasing foRular under the spuy of heavy ad [Vertiaing. One of the huae grece: fohain stores injeoted an element o funcertainty {nte the business by cam [encing o handle cigarettes amit 1out prives sharply. ClEar outhut has shown wo Srorease OVer 1hat of 1314 se far as the mocv Sihensive hoands are coaerned However. the machine made qgers jloveloped from & detter tvpe of Bota than has been sed 1w wes Iproduets neeviousty, hecame decited « PORUHE R Eher sales sxcesded (hase OINN by A substantial | wacg FUMAE advertising alsw has Deen Jereaning materialiy PoDemand w smoking tohaces was faitly stalle. While the sales af ehew NE NS A SN faiied By sl MArging o squal the revwnds of 135 | Ulkarette consumption ameuntad 1o fappranimately 3508 00000 an o [pared with 39,048 200000 n 1036 the Four Nills Show Gail Alter a poriod of oamparatively s P raduetion the flour mide reapendd [ARAPRIY 10 the heavy shipments TRIMIN WHIGH toak pice 0 Septes e AN Outober of 1830, and ewduetins Wan stepped up in Al et the gres Four produoing canters 1 moat canes the profts far the vear af the S Wrndiceia have vanged fam 19 e 1S A1 vent Adete the retwrie foe INA