NIKITA SEEN AT GERMAN FESTIVAL

Soviet Premier Nikita Kh- | Tushchev is depicted i to put the world ino a

nival at Mainz, West Ger- many. This was one of the many floats in the “Crazy Days” section of the parade

| which critized local as well as

world polities.

_sack on this float in the car-

Price-Earnings Ratios Said Not Always What They Seem

By FORBES RAUDE Canadian Press Business Editor Price-earnings ratios of com- mon stocks are not always what

they seem

This is point out by fn the March issue of Canadian Business, publication of the Ca- nadian Chamber of Commerce.

A price - earnings ratio ex- presses the number of times annual earni at which a stock is selling. Thus, if a stock fs selling at $90 a share and {ts profit in the year is $3 a share, its price- earnings ratio is 10 to one

10-to-one ratio has been long regarded as a sort of base to which markets periodically return, In recent years, how- ever, prices have outpaced the earnings factor. On the Toronto Stoc! hange, for instance, the average price-earnings ra-

tio of 20 industrial index stocks is about 19 to one, with some running much higher.

Market analysts see some Justification for this trend, but it worries them, and they w

more attention

Scobell indi ‘age person may

making an as. sessment because in some cases

S position is better in -an_ indi- Indicate, and

not be

te set aside a ri per cent of their ceneral loans aa a protection against possible

loss. The loss ratio over any period of time, however, has been a mere fraction of one per cent. Therefore, if actual losses in a representative year are deducted, instead of the allowable five-per-cent reserve, earnings would tisually be 30

per cent or so above those ac- tually reported.” An opposite situation occurs

when part of a company’s profit recurring tax credits

arises sources,

from non - such as

time only

Teaspoons Dessert knives Dessert Forks Salad Forks Sugar spoons Butter knives

arising out of past operations or profit on sale of an investment, In such ases the company’s cur- rent earning power is less than the profit indicates. A number of more complicated factors are also outlined by Mr, Sco- bell

Investment house market an- alysts are aware of these sit- uations and they presumably account for part of the varia- tion in the price-earnings ratios of various stocks, though many other considerations enter into the picture. BANK STOCKS NOTABLE

Strength of bank stocks, for instance, has been notable. Ca- nadian Imperial Bank of Com- merce, one of the Toronto ex- change’s industrial index stocks, sells at around 26 times earnings; while one of the stocks whose current earnings contain a non-recurring item, is selling at around 12 times earnings

Mr. Scobell makes some ce: cilatene ot thal tia t ahou take for a three-per-cent return on a common stock to rise to five per cent

Taking a theoretical stock earning $5, selling at $100 and paying a dividend of $3 to yield three per cent, and assuming a growth in earnings of five per cent annually, a current pur- chaser might expect to receive five per cent .on his purchase in about 11 years.

At the same time, however,

|if the price of the stock rose

in line with its increased earn- the purchaser's present $100 stock theoretically would be worth $166 by the time the five per cent return was reached.

MOVE ae GERMAD BERLIN ters) qT forcible evact te of East Ger- mans living near the West Rer- lin border continued Tuesday. At dawn Fast German police with watch-dogs woke the habitants of several hous

In-/ Xanfoam of Canada Ltd ar equally by Bathurst and Sun

(AP. Wirephoto)

British Troops Plan Training

|At Canadian Base | OTTAWA (CP) — British troops will train in Canada again this summer and next winter, Defence Minister Hark- ness announced in the Commons

The Ist Battalion of the Royal Welsh Fusiliers will train with the Canadian Army this sum- mer at a base still to be selected he said. A British battalion trained last year at Camp Gage- town in New Brunswick.

Mr. Harkness said that an ar- tillery battery and a parachute company will come to Canada to train under winter cee late this ye

Bathurst Co. Shows Profit

MONTREAL (CP)—Bathurst Power and Paper Co. Ltd. had net profit of $1,979,270 or $1.51 a share in 1961 Corapared with $1,863,626 and $1 1960,

pared with $39,675,85:

The company's annual report said the increased profit was made despite continuing down- ward pressures on selling prices and upward pressure on wage rates and other expenses.

Teport continued that the compai its position gen- erally in domestic markets but experienced a considerable re- | duction in paperboard ship. ments to export markets be- cause of surplus capacity of North American and Scandina- vian mills.

The company also said it has made arrangements with Sun Chemical Corporation of New York to enter the plastics field.

| Under the arrangement Bath. urst will engage Jointly with with Sun in the manufacture

and sales of extruded polysty- rene foam and related products. The business will be carried on through’ a new company called owned

Cream Soup Spoons Reg. 2.00

c; the British sector district of Staaken and took them away in| a form of plastic which can be trucks, The evacuees were| used as container material for barely allowed time to collect a| foods and other consumer and few personal belongings. industrial goods.

Extruded polystyrene foam is

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22 The Cher

Field Crop Value ae

GivenFo

OTTAWA (CP Canada’s main field crops in 1961 were | worth $1,265,115,000 to farmers, | said a preliminary estimate by | the Dominion Bureau of Statis- ties issued here

The figure is well below the | revised 1960 mark of $1,678,028,- 000 but the bureau cautioned that any comparison is unreal-

istic at this point

While the lower 1961 value reflected Prairie drought losses. it does not fully take into ac- count increases in grain prices. Neither does the estimate in- | clude payments remaining by the Canadian wheat board in 1960 and 1961 wheat, oats, barky.

Saskatchewan was by far the hardest hit as the major grain producer. Estimated value of its main field crops was $240,000, or less than half that in 1960. PRELIMINARY FIGURES

and

Preliminary value figures by province in 1961 with 1960 fig- ures in brackets

Manitoba—$109,164,000 310,000) ; 097,000

Saskatchewan

Alberta—

New Brunswick — $21,441,000

($27,421,000); Nova Scotia—$14,- 216,000 ($15,140,000); Prince E

Principal Named For New College

TORONTO (CP) — Dr. Frank W. Wetmore has been ap- pointed principal of a new resi- dential college at the University of Toronto, it was announced here,

Dr. Wetmore, a native of Saint John, N.B., is professor of chem- istry and associate dean of the faculty of arts and sciences. He will continue teaching and re search, but will give up his po- sition of associate dean when the new appointment becomes effective July 1.

Plans are still being drawn for consiruction of the new college, believed to be the first of its kind in Canada. It is expected to be ready for use during the

season, Wetmore graduated from the University of New Bruns- wick, He did Preearen nee work at the Univer nto and Joined the staff in chemistry In 1933.

He has specialized in chem istry concerned with electrical energy and {s chairman of the defence research board advis- ory committee of electrical | Power sources.

Mees

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nd—$18,974,000 ($22, e policy was issued to pay res land — 4 a pb old lady here by an available, agency that said that it was

the first ever issued in Wis- consin to a person more than 100 years

Mrs, Hunt will be 101 on May 22. She says she seldom has been ill but thought she needed -a policy so that her son-in-law and daughter, Dr. and Mrs. Wilford Evans, would not have to pay in the event she was injured or ill.

The bureau gave a revised estimate for the 1960 crop, gross value on farms, of about $1,700,000,000, against $1,600,000,- 000 in 1959 and the record of $2,350,000,000 in 1952.

Soprano Wins Club’s Award

NEW YORK (CP) — Elinore

a a River Runoff meateen Reported Low

ner of the Canadian Women’ Club of New York's 1962 schol-

TARIFF AGREEMENT IS SIGNED

OTTAWA (CP)—River runoff ee | ucts are also involved, arship. lim February w: normal| Herman Walker, right, vice- | tions are West Germany, The cash award of $300 18| due to drought and cold.weather| chairman of the United States | France, Italy, Belgium, Ne {ar Wireol va radio from

therlands, and Luxembour; ‘urrent Geneva sieoiaions

also reduced tariffs with 10 |

other nations. Reductions will

made annually to a Canadian-| in most regions east of Alberta, born singer already | studying the water resources branch of voice in New York. Miss Sat-| the northern affairs department luy is studying opera here. |

delegation, signs agreement at Geneva for lower tariffs with

the six-nation European Eeo-

Miss Sarl dmother, | S228 announced in the Commons.| nom} John | will be about 20 per cent on De dln Leahene tees ee ane below. normal t6 Evans, U, 8. delegation chair- | many industrial ems,

mrss pe Langhsaw, lives im) dericient in the Maritimes, Que-| man, is at left. The six White House says, Agricultu-

Granby

2 Bell Telephone gue. Has Big Program |

MONTREAL (CP)—The Bell Telephone Company of Canada will spend a record $210, on construction of new tees in 1962, President Thomas — told the annual mete

eer year $192,000,000 was spent on construction. The com- pany’s previous record con- struction program was the 203,000,000 spent in 1960,

Mr. Eadie said mechanization

has played an important part |

in the higher return on invested

capital achieved in the last two *

years by tight control of operat- ing expenses.

He addéd allocations to de- preciation and payment for the use of capital are increasing at a faster rate than the com pany's payroll, and as a result the company's cost structure has grown more rigid and the opportunities for cost reduction more limited.

He said significant reductions in individual long istance rates and the company's Night Ecoromy Plan should “‘encour- age greater use of the com- pany’s facilities,

LARGEST PRISON

the world is the Lubianka Jail, Moscow, with room for 80,000 prisoners,

c, the Prairies and lane. The only exceptions were

James Bay region, Cape Breton " Theatre pala | New

| Island and northern N

ee erent ee ate Said Abandoned

| normal or excessive.

bodies are so different.” Te. British treasury had to back the national |

tea with an appropriation of| spokesman said]

a treasury will consider | whether to go ahead with only) Old Vic and Salder's Wells

LONDON (AP) — The

| ELMSDALE Shakespeare Theatre has with-| drawn from a proposed national | Mr. Charles Y. Dunn has) theatre project which would undergone surgery in Prince) have linked it with the Old Vic = County Hospital. Theatre and Salder's Wells Op- Mrs. Charles Dunn, Louis and| era Company. James Dunn motored to Sum-| The board of governors said | merside on Wednesday. here it had decided the merger Messrs. Merrill, Harvey and| “would be a difficult artistic en- Raymond Dunn visited Mr. and| terprise, in that the needs and Mrs, Frank Dunn at Summer-| the tradiions of the separate side also their father Mr. Cat ————<<—<—<—<—— les G. Dunn, who is a patient in Prince County Hospital. Mrs. Minnie MacNeill is visit- ing at the home of her son, Mr, Leigh MacNeill and Mrs. Mac:

Royal

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Mrs. R.A. McKénna, Dale and as. pretty and priced to Catherine, were visitors to Sum- Oo Please. By favorite dress merside on Tuesd FLORAL makers, . . . Leo Donal and

Mr. and Mrs. Michael Morri- Tack Polina pi son and their son Roderick of FANTASIES pany ar che Fredericton, N.B. motored to i

‘ See the new silhouettes in at Island Furriers, of course. Elmsdale recently and were| gam meron, Sinoveites, | guests of Mr. and Mrs. James| weizht straws now on. dis- O'Brien. mes

Mrs. Georgina Whelan has re- | ?*° turned from Charlottetown Hos- ’ pital and will spend some time a d i. | | ans as the guest of her daughter,

Mrs. Horace O'Brien, and Mr. | 177 Grafton Dial 4-8114 O'Brien.

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