Earnings

Cities Service. When a U. S. Business shows net earnings of more than 25 million dollars a year, it becomes emphatically a Big Business. And well in the Big Business class did unique Henry Doherty's Cities Service Company last week show itself.

With an extraordinary 31 to 1 ratio of gross earnings ($36,902,526) to expenses ($1,193,614) Cities Service reported net earnings (year ending April 30, 1929) of $35,708,912, compared to $31,916,734 for the previous twelve months.

Alleghany Corp. Formed last January by Cleveland's Van Sweringens, Alleghany Corp.--an investment company which thus far has functioned chiefly as a holding company for Van Sweringen rail stocks--last week showed a paper profit of approximately ten million dollars. The Company paid 125 millions for securities which on April 30 had a list value of 134 millions, and most of its stocks have further appreciated in value during May. Profits of more than two million dollars a month (the company was incorporated Jan. 26) are sufficiently pleasing. But such gains are, of course, "paper profits," which would sadly diminish upon an attempt at realizing them. Common stock of Chesapeake Corp., Nickel Plate, Chesapeake & Ohio and Wheeling are included in Alleghany Corp. holdings.

Hahn Dept. Stores, Inc. Organizer Lew Hahn's department store chain (TIME, Dec. 24), headed by Boston's 78-year-old Jordan Marsh Co., last week reported net income of $6,033,489 for the year ending Jan. 31, 1929. Operations for eleven of all these twelve months preceded the formation of the chain. In 1928, R. H. Macy reported a net of slightly more than seven million dollars.