Historical Newspapers of South Carolina

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J f \ 4 THE CHRONICLE " ' Strives To Be A Clean Newspaper, Complete Newsy and Reliable -i If You Don't Read THE CHRONICLE You Don't Get the News Volume LI Clinton, S. C, Thursday, September 7, 1950 Number 36 A Regular Chronicle Feature Babson Is Bearish On Rail Stocks Despite War Profit Trucks And Planes Have Unfair Advantage He Says In Analysis By ROGER BABSON Glouchester, Mass., Aug. 31—In view of the railroad strikes in the United States and Canada, and the bullish tips that are being put out to get people to buy rail road stocks, I will this week discuss the railroads as an investment. At the close of World War II in 1946 the In dex of Railroad stocks averaged about 88.00. This declined to around 44.00 in June, 1949 and continued around these low figures until the % Korean War broke out Since then the Railroad Index has gone up to nearly 65.00. This means that these railroad stocks are now selling for almost as much as they did at their height during World War II. 1. Railroads have always pros pered during wartime. This applies not only to the railroads serving such industrial centers as Pittsburgh, De troit and Chicago but particularly the transcontinental lines. This should especially be true so long as the Ko rean difficulty lasts. 2. During the last depression many railroads cut their bonded debts and reduced other charges which should help the stocks. Even roads that were not re-organized were able to spend huge sums on improving their road beds, bridges, equipment, machine , shops, etc. 3. Most railroads have little to fear from excess-profits taxes be cause they have such a large basic investment. In other words, the rail roads have no watered stock. In some cases the asset value of railroad stocks is 10 times the price at which they are selling on the market. Some Mileage Abandoned 4. After the war the railroads will have no reconversion problems such as many industrials will have. This is because war traffic uses the same rails, locomotives and equipment that peacetime traffic uses. The railroads should also benefit from the increase in population. 5. The railroads have been able to abandon much unprofitable mil eage and to streamline their organ izations! This latter is especially be ing illustrated by what the New York New Haven A Hartford RaiLroed Company is now doing. BearlA Reasons Given 1. The oldest of the strong labor unions arc in the railroad field. These unions in peacetime have usually “skimmed the cream” from the rail road earnings and have been a source of great trouble. If railroad wages could be reduced when earnings de clined after a war, a fair readjust ment could be made. As a matter of fact, the railroad wage increases giv en during war, when the earnings are abnormally good, cannot be with drawn after the war is over, when earnings again decline. 2. Railroads have (subject to dis puted Government rate concessions) more or leu, a monopoly during wartime; but after a war is over, they are confronted with more air planes, more buses and more trucks than ever before. Therefore, rail roads normally are subject to tre mendous competition during peace- ♦ 7-* - t * t ' I S' A. tmmvwuUTW ike 500 MILLIONTH , GOODYEAR Pneumatic Motor Vehicle TIRE A hiall billion Href . a production record un equalled in the tire industry. Here is experience that has made Goodyear the world's leading builder of tires ior 35 consecutive years. A famous Goodyear "first" . , . the Super-Cushion tire . . . introduced in 1947, holds the distinction of Jaeing the 500 millionth pneumatic motor vehicle tire. SUPER-CUSHION ^ good/year The first successful low-pressure tire! The tire that .was built to give you new softer, smoother, safer riding comfort . . . the tire that revolutionized the tire industry. MORE KOftE RIDE ON GOODYEAR TIRES THAN ON ANY OTHER KINO SU US FQR NEW GOODYEAR TIRES TODAY ♦ > time. This will certainly be true as a settlement is gradually made with Russia. 3. When the Interstate Commerce Commission was formed railroads had a monopoly of transportation. There then were no private auto mobiles, no trucks, no buses and no airplanes. Such highways as then existed were very poor. Hence, the regulation of railroad rates and ser vice was a necessity. Today, this reg ulation has turned into a nuisance to all concerned,—railroads, ship pers and the public. Yet, the va rious railroad commissions, both fed eral and state, continue in office. In order to hold their jobs, they feel obligated to continue to regulate the railroads in both an unreasonable and a costly manner. In addition, the Federal Government is now su ing the railroads for “over-charg ing” on War II business. Railroad Speculation A study of the above facts and other factors leads a conservative in vestor to avoid being tempted to buy railroad stocks at this time. Some railroads may increase their divi dends temporarily, but very few which now pay no dividends will go on a dividend basis. They will need the additional money for buy ing more equipment, etc. It prob ably would have been smart to have bought railroad stocks immediately when our troops first landed in Ko rea; but to buy them today for in vestment will be risky. Probably some cheap railroad common stocks, upon which I never expect a dividend, may go up more in price due purely to speculation on the part of small speculators. There are only a relatively few shares of these stocks outstanding; and a little increased buying could easily send them up in price. Fur thermore, they have such a big lev erage when selling at low prices, they could double or perhaps triple in price. Street Railrmy Stocks Street railrays and buses should profit from any war especially if the war leads to the rationing of gasoline, tires, etc. or to the curtail ment of the sale of new automobiles. Street railray*securities have not yet gone up in price as have railroad securities, in fact, in some instances, they are now selling for less than they sold for many years. Although the market is thin for street railray securities, yet certain income hoods are worthy of consideration. Dove Season Opens Sept 16 South Carolina Dove hunters must wait until September 16 to begin their asault against the feathery den izens of the air, according to a re minder of Chief State Game Warden A. A. Richardson. This was announced to forestall the premature action of those hun ters who had gotten the idea that the dove season here opened Sep tember 1. The actual dates for the split dove season are September 16- 30 and December 23-January 6. Additional season informatiori was announced as being for rails and gallinules (Oct. 2-Dec. 1); on wood cock (Dec. 12-Jan. 11), and on Duck (Nov. 27-Jan. 5). These seasons are set by the Federal Fish and Wild life Commission. COMMERCIAL PRINTING This completely equipped combi nation Newspaper-Commercial Print ing plant can serve yea better. Oar goal Is to give oar easterners the kind •f service they want—to give Clinton a BETTER NEWSPAPER. Special Fall Motor Check We will inspect your engine from fan to transmission WITHOUT the high cost of tearing it apart. Our modern instruments tell us what adjustments are needed, and the cost to you is amazingly small! ' Vm0 MRMU W’est Main Street Cooper Motor Company Phone 515 Soy "I Sow It In The Chronicle" — Thank You! 'HOME Use gay colorful doilies for meal time whenever possible. If a drop spills, you'll have only one doily to wash in piace of a whole large tab lecloth. If you’re thinking of saving time serving a first course of fruit or veg etable juice, don’t give it up readily. A small glass of the juice can be placed on the $able next to the water fclass, and it can be sipped while you’re serving the main dish. Use little sauce or side dishes on ly when you’re having such foods as really need them, like stewed to matoes, vegetables In sauce, or cream- style corn. A three way platter saves dishes and space on the table. You can place meat in center or on one side, then potatoes to the other side, and veg etables next to them or to the meat. It’s a pretty way of serving! Plan to cook and serve in the same dishes whenever possible because of the time and dishes saved, as well as the fact that you can bring them to the table at the peak of perfection. Every now and then, add variety to serving, by preparing the plates in the kitchen. Arrange the plates right near the range where you can serve them easily, set them on a Ir&y and bring the dinner, all served, to the table at one time. RECIPE OF THE WEEK Apple Crisp (Serves 6) 2% pounds (8 cups) sliced, tart apples % cup sugar 1 teaspoon cinnamon 1-8 teaspoon nutmeg Vi teaspoon grated lemon rind Va teaspoon salt 1-3 cup butter 1% cup crushed cornflakes Wash, peel and core apples. Slice 1-8-inch thick. Mix together sugar, spices, lemon rind and salt. Layer apples in greased casserole, and sprinkle each layer with sugar mix ture, com flakes and dot with but ter. Repeat until all are used, leav ing a larger portion of the cornflakes and butter for the very top layer. Cover and bake in a moderate (350 degrees F.) oven for 15 minutes. Un cover and bake for about 30 min utes longer or until apples are ten der and the top crisp. Serve with cream or hard sauce. THE CHRONICLE Completely Coven Clinton’i Trade Are* for Advertieen There Is No Substitute for News- Advertising DON'T WAIT! BUY YOUR DIAMONDS NOW AND SAVE 20% CHECK THESE SENSATHHMLIADY AMERICA" DUMOHD VALUES 10 DIAMOND LADY AMERICA Diamond Sat' HOW W 50 % CARAT OF SELECTED DIAMONDS HOW *124» J. G. THOMAS, Jeweler \ “It’s Time That Counts”