BIG BUSINESSES FOR SALE.

Chronicle (Levin), 16 June 1949, Page 5

BIG BUSINESSES FOR SALE.

Received Wednesdav, 10.20 p.m. NEW YTORK, June 14. Many big eompanies with long prosperous histories are for sale, reports the Jonrnal of Commerce. Many ot these eompanies are worth several millfonrof MolTars:" Tlfey'Tinge'from dorrespondence schools to steel mills ana. television eompanies. Funds that a few months ago were available for such transaetions have now either vanished or beeome overcautious. The sellers will have to offer a new product or almost guarantee a market, tlien depreeiate their land, plant and inventory and throw in their good name- and perhaps some really topflight management, in ordel* to eonsummate a deal. Tlie Journal of Commerce says a survey of industry just completed showed the following reasons for the trend: Firstly, eompanies whose profits had begun to decline and whicli realised n6w eapital was needed to prevent them losing monev, were finding it incre*-s-ingly difficuit to interest new eapital. Seeondlv, high taxes were forcing many businesses to liqnidate. Tliirdlv, nihny businesses anticipated labonr difficulties. Fourthly, the utmost pessimism concerning future world political conditions. Fifthly, ms»y marginal operators were experiencmg considerable saies de clines. The Journal of Commerce also Teports that some motor ear manufacturers intend building smaller and eheaper cars. Wiser producers think the automotive market has rMurned to the normal pattern of supply and demanu. Cotton textile men, however, believe their industry has passed the worst phases of the recession crisis whicn other industries are just beginning to encounter. Mill men assert that relative stability of earnings is in sight— at a level far below the fabulous 1.947 and 1948 peaks but still qnite high in relation to prewar levels.