Coast Frosts

To the Pacific Coast last week came frosts. Blighted were peaches, apricots, walnuts, plums, prunes, almonds, grapes, potatoes, and Kolster Radio. The frost on the crops was an act of Providence. The slump in Kolster Radio proceeded from a 1928 earnings statement that showed earnings of 20-c- a share. Kolster stock has been prominent on the Coast partly through the fact that Sugarman Rudolph Spreckels (TIME, Nov. 19) is chairman of its board, partly through public interest in radio television, talking pictures, and similar manifestations of science in the fields of entertainment and communication. Thus Kolster stock boomed. Lately, however, worried by the Federal Reserve Board and its anti-speculation activities, frightened by untrue rumors of a great Kolster deficit, California operators began to sell Kolster short. This bear movement was strengthened by the Kolster report which showed, indeed, no deficit, but small earnings. It should not be concluded, however, that Kolster radios sold poorly in 1928 or that its 1928 earnings are indicative of a bad 1929. During 1928, Kolster showed a 43% increase in gross sales, but had so much difficulty in obtaining supplies that its expenses, unduly large, reduced a large gross to a small net. Much more serious, however, were the crop frosts. In Chico (Butte County) 75% of all fruit was estimated to be frost-touched. Damages included 100% of early walnuts, 95% of peaches, 100% of apricots, 90% of pears. In Sutter, Yuba, and Butte counties combined, the loss was some $10,000,000. Citrus crops were not harmed. Over many a California county hung last week the stinking smudge of oil-fires, burning to keep the frost away from the remaining crops. Possible losses to banks and insurance companies have not been estimated. Farmers in many sections, particularly the San Joaquin valley, are heavily mortgaged, and many a bank has become, involuntarily, a farm owner* Makers of tin cans, too, may notice a slackening demand for their goat-food.

*Much as the Manhattan banker, in a famed textile story, entered the textile business. The story tells how a struggling pants-maker, unable to meet a note, asked his banker: "Was you ever in the pants business?" Said Banker, horrified, "Certainly not." Said Pants-maker: "Well, you are now."