Contraction in Crude

FACTS & FIGURES

Too Many Tires. The three biggest U.S. mail-order houses (Sears, Roebuck & Co., Montgomery Ward & Co. Inc., Spiegel, Inc.) cut tire prices as much as 12%. But tires were not the only things catching up with demand in the rubber business. Since rubber was decontrolled on April 1, the price of natural rubber has dropped more than 5-c- a pound to 18 1/2-c-. Rubber for delivery in September (futures) dropped to around 16-c-, less than the 1939 price. Caught by the drop was the RFC, which bought & sold all U.S. rubber until April 1. It owns 110,000 tons of salable rubber which cost it 23-c-. Paper loss to date: $13,500,000.

Thawed Prospects. The Admiral Corporation made an old joke come true. Its dealer in Fairbanks, Alaska, has sold six refrigerators to Eskimos. An awed New York executive confessed: "It was one of the markets we overlooked."

Up. The ICC granted 10% boosts in interstate passenger fares to 60 eastern railroads. The increase, to compensate for higher operating costs, will raise one-way fares from 2.2-c- to 2.5-c- a mile in coaches, and from 3.3-c- to 3.5-c- a mile in Pullmans. The 60 railroads expect to get $42,500,000 more in revenue a year.

Bearing Down. From April 15 to May 15, the short interest on the New York Stock Exchange jumped about 30% to a total of 1,314,391 shares. It is now the highest since December 1945 and the rise was the sharpest since 1934. Despite this bearish view of the future, the New York Stock Exchange rallied from the year's low. At week's end the Dow-Jones industrial averages were up over three points to 166.29.

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