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SATURDAY, APRIL 41931.
VOL. 132.
Einantial Chronicle
PUBLISHED WEEKLY
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WILLIAM B. DANA COMPANY, Publishers,
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Published every Saturday morning by WILLIAM B. DANA COMPANY.
President and Editor. Jacob Seibert: Business Manager, William D. Riggs;
Treas., William Dana Seibert; See., Herbert D.Seibert. Addresses of aU,Office of Co.
The Financial Situation.
it seems to us that not enough attention is being
given to the plight in which the railroads of the
country find themselves as a result of the great
losses in earnings, gross and net, which they are suffering. These losses are reaching really frightful
proportions, and unless they speedily stop piling
up the very solvency of these great transportation agencies will be imperilled, and if anything
of that kind is allowed to come about a grave
national disaster will confront the country. The
returns of earnings are now coming in for the
month of February, and the losses are really
appalling in their magnitude. Large and small
roads alike are being affected, and the strongest
and best systems are suffering as severely as the
poorest, thereby reflecting a common condition from
which no class of roads and no section of the country
is exempt.
Our best illustration of what is going on will be
if we take such strongly entrenched and well managed properties as the Pennsylvania RR. and the •
New York Central. Both railroads suffered a loss
in net operating revenue in the calendar year 1930,
as compared with the calendar year preceding,in the
sum of over $40,000,000, and lest there be a failure
to realize or to appreciate what a loss in net income
of $40,000,000 means we will say that it is equivalent
to 4% on a capital investment of $1,000,000,000. The
Pennsylvania RR. statement for the calendar year
has been made public the present week, and it discloses a falling off in gross operating revenues for
the 12 months in the huge sum of $112,237,571, and
a loss in the net revenue, after the deduction of
operating expenses (which were curtailed no less
than $65,967,412) in the sum of $46,270,159. The
New York Central, on its part, according to preliminary figures given out several weeks ago, sus-
NO.3432.
tained a falling off in gross operating revenues of
$111,090,276, and in net operating revenues of $46,574,101. These two systems together accordingly
suffered a contraction of over $223,000,000 in their
combined gross earnings for the year, and of over
$92,000,000 in their combined net earnings from
railroad operations.
But the most unfortunate feature of all is that
these losses in earnings are still continuing, month
after month, during the current calendar year, and
that no relief is apparently in sight, making the condition a desperate one. For the first two months
of 1931 the Pennsylvania RR. shows a loss in gross
earnings, as compared with the poor period of 1930,
of $19,851,569, and a loss in net earnings (before the
deduction of the taxes) of $7,291,807. In like manner the New York Central reports a falling off as
compared with the earnings for the first two months
of 1930 of $17,582,593 in gross and of $5,404,141 in
net. The two roads combined, therefore, have fallen
behind $37,434,162 in gross earnings and $12,695,948
in net. But this is in addition to the heavy losses
sustained in'1930 as compared with 1929. To furnish
a graphic illustration of what is taking place we
introduce here a tabular statement showing for each
system the comparative figures of gross and net
earnings for February and for the first two months
of the three years:
N. Y. CENTRAL.
1931.
1930.
1929.
$
Month of February—
$
Gross
30,932,992
Netaiter expenses
5,566,137
Two Mos.End.Feb.28—
Gross
64,753,778
Net after expenses
11,592,563
PENNSYLVANIA.
Month of February—
Gross
36,150,765
Net after expenses
5,652,817
Two Mos.End. Feb.28—
Gross
74,846,376
Net after expenses
11,981,639
39,196,700 45,246,551
7,561,989 11,103,846
82,336,371 91,978,330
16,996,704 22,047,674
45,719,614 50,358,577
9,525,918 12,446,339
94,697,945 102,700,544
19,273,446 24,143,972
It will be seen that, roughly speaking, the net
earnings of each of these two great systems has been
cut in two during the two years. The Pennsylvania RR. shows net earnings for the two months
of 1931 of only $11,981,639 as against $19,273,446 in
the two months of 1930 and $24,143,972 in the two
months of 1929, while the New York Central reports
net of $11,592,563 in 1931 against $16,996,704 in
1930 and $22,047,674 in the two months of 1929_
In both instances it will be observed net earnings
record a falling off in net for the two years of,
roughly, 50%.
How long can the railroads endure this state of
things? And what is being done to lessen the losses.
for the immediate future. Railroad expenses are
being reduced, to be sure, and outlays in every direc-
2446
FINANCIAL CHRONICLE
tion are being curtailed, including maintenance
charges, but the limit of curtailment in that direction has apparently been reached. Yet the saving
in that way does not suffice. The same remark is
to be made with reference to the possibility of effecting improvement by increasing operating efficiency.
The limit of that seems to have been reached even
before the present great business depression was
encountered.
Necessity •forced economy and
efficiency upon the managers in every direction
before the present crisis arose. The transportation
rates which they were permitted to charge had left
them only the narrowest kind of a margin of profit.
We are citing the appalling contraction in the net
results which the New York Central and the Pennsylvania have experienced because they are representative systems of the highest and best type. All
other railroads, however, find themselves in substantially the same 'unfortunate plight. Again we
ask what is being done to lessen these losses for the
immediate future, for it is too obvious for argument
that the railroads cannot continue to function, not
even the strongest of them, with net earnings cut
to only 50% of what they were in 1929? As far as
we can discover, absolutely nothing is being done
to lessen these losses, and which cannot be escaped
under a continuance of the existing great and grave
paralysis of trade and industry.
As already remarked, the managers are curtailing
outlays in every description and are cutting maintenance expenses to the bone, but this, as we have
seen, does not suffice. Yet the carriers cannot survive indefinitely under a continuance of the present
situation. Everyone is counting upon an early
revival of trade, but the revival remains as far off
as ever. Meantime the losses in earnings, which
threaten insolvency, keep continually accumulating,
and as they accumulate the situation becomes increasingly desperate.
There appears to be only one alternative left, and
that is a reduction in wage schedules. But everyone
in authority seems to be afraid to champion a proposal of that kind, and certainly it is not popular
in political circles. President Hoover, if accounts
in the daily papers are to be credited, has again
taken pains to make it known that he is strongly
wedded to the idea that wage schedules 'should be
and must be maintained. For instance, the Washington correspondent of the New York "Herald
Tribune", in his dispatch printed in the Thursday
issue of that paper, states that persons who have
talked with President Hoover since his return from
his Caribbean trip say that he is carrying on a
struggle :behind the scenes, as it were, to maintain
wages at the present level in the face of a strong
movement in financial circles, as alleged, to lower
them in proportion to the decline in prices.
But is that a correct policy? Have we not tried
it without success during the last 18 months, and
does it lead anywhere except into a blind alley?
May it not be that it is that very policy that has
held up trade revival so long? And is there any
harshness or injustice in asking railroad labor to
accept a reduction in proportion to the lowering
of living costs? Wagesfor railroad labor are notoriously high, and can these workers refuse to make
their proper contribution to lessen operating costs
when there is such imperative need for so doing?
Are the men not standing in their own light when
they adopt such a course? If as a consequence of
[Vol.. 132.
their action the railroads are obliged, not only to
omit dividend payments, but also to discontinue
interest payments on their bonded obligations and
thus are reduced to insolvency, hence becoming
unable to function any longer, will not railroad labor
itself be the worst sufferer?
We are told that any attempt to reduce railroad
wages will result in strikes, thereby paralyzing the
operations of the roads, but are not these railroad
employees men of reason and common sense, and
cannot they be persuaded to adopt a course which
in the end will be so strongly to their own advantage? Certainly there need be no lowering of the
standard of living, since the lower wage scales will
have the same purchasing power as the existing
higher wages.
At all events, there appears to be no other avenue
open for lowering operating costs and lessening the
appalling losses under which the railroads are now
laboring. It will no doubt occur to some that the
Inter-State Commerce Commission might be appealed to to allow the railroads to put into effect
higher schedules of transportation charges, but that
is clearly out of the question in a period of depression, since it would inevitably add to the burden of
conducting business and add to the cost of producing
manufactures and goods. And what shall we say
about asking the farmer to pay higher rates for marketing his products while these products command
such absurdly low figures as is now the case?
The very untenability, however, of the suggestion
clinches the argument in favor of having railroad
labor contribute its mite in the present critical and
acute stage when only close co-operation on the part
of everyone concerned can restore industrial activity
in this country to a normal basis. With railroad
stockholders obliged to go without a return on their
investment, with the farmer eking out only a bare
subsistence, with trade and business paralyzed as
never before, with profits in all lines of human
activity at the vanishing point, can railroad labor
stand apart and alone insist on retaining its former
advantage, an advantage gained when the country
was enjoying what seemed to be unalloyed and unwonted prosperity, but which is now seen to have
been wholly illusory.
What is here said regarding railroad labor applies
with equal force to labor in general in attempting to
maintain wage scales out of accord with economic
conditions. Such a course can only serve to defer
the coming of better times in the business world.
And this view was admirably expressed by George V.
McLaughlin, President of the Brooklyn Trust Co.,
and former Police Commissioner, and also one time
Superintendent of the New York State Banking
Department, in an address before the Envelope
Manufacturers' Association at the Hotel Vanderbilt
a few weeks ago. Unreasoning adherence to high
wage scales and profits of the post-war boom period
is holding back economic recovery, Mr. McLaughlin
affirmed. Wages and profits can come down and
without injury to the American standard of living,
he told his hearers. President Hoover, he said, is
not to be blamed for the business depression, and
payment of the soldier bonus at a cost of approximately $600,000,000 might not be the calamity that
most bankers have warned against. "I am sorry to
say it, but it appears to me that wages must come
down," said McLaughlin. "The dollar, has been
APRIL 4 1931.]
FINANCIAL CHRONICLE
revalued. The cost of living, in my opinion, is
destined to be lowered." It isn't popular to advocate the reduction of wages, McLaughlin admitted,
adding that even comparative affluence for him has
been a matter of only the past few years.
"Labor's best contribution to the return of normal
conditions would be to take wages that conform to
present economic conditions." Prices and margins
of profit, too, must undergo substantial reductions
before normal conditions return, Mr.Laughlin declared. "High prices have been a sort of fetish for
the entire world in recent years," said McLaughlin.
As Richard Whitney and others have pointed out,
the benefits of cost reduction effected through modernization of productive facilities in the last decade
were not passed on to the public in the form of lower
prices. The American business man has shied at
price reductions like a horse at the automobile of 20
years ago. It was said that prices must remain high
because labor, must be paid high wages in order
that it might consume products in large quantities
and thus keep the machinery of mass production
turning. It was forgotten that a vast contingent
of ourpopulation do not receive their livelihood from
wages, salaries and profits. And, of course, there
is the farmer."
Business men were criticized by McLaughlin for
the wide gap between the decreases in the cost of
living and the cost of finished products. Citing
statistics that indicate that between December 1929
and December 1930 prices declined about three times
as much as the cost of the finished necessities of
life, he said. "This comparison indicates that a
severe maladjustment still exists. All the blame
cannot be laid at the door of the wage earner. Even
at this stage we find in many business quarters the
same state of mind as existed quite generally a year
ago. It is said that prices must be maintained, that
wages must not come down, that profits must be
held up as much as possible. Some sections of the
'business community cannot grasp the fact that an
economic revolution has occurred," ie added. "They
still dwell in the twilight of the post-war boom
period, and wistfully quote its maxims and shibboleths. With these gentlemen one feels a sympathy
but cannot express agreement."
How greatly things are changed not only in the
business and industrial world, but also in the case
of Treasury finances at Washington, as a result of
the falling off in Government revenues, and the demands of the soldier bonus legislation is seen in the
rapidity with which the Secretary of the Treasury
is coming to market with new securities. Early in
March it will be recalled he placed $1,518,000,000 of
certificates of indebtedness and new Treasury bonds,
and on Monday of this week he disposed of another
block of $100,000,000 of 90-day Treasury bills. In
addition, notice has now been given of another forthcoming issue of some kind, the nature of which is
not being divulged beforehand, but which gossip
intimates will be a further issue of certificates of
indebtedness, possibly for amount of $250,000,000.
The notice of the forthcoming "new Treasury issue"
was given Mar. 31, and simply said that a Treasury
offering might be expected "on or about Tuesday,
April 7". A fortunate feature about all these Treasury offerings is that abundant funds are available
for the purpose at very low rates of interest. At
the offering of $100,000,000, "or thereabouts", of
2447
90-day Treasury bills on Monday of this week the
total applied for was over three times the amount
of the offering, aggregating $343,857,000, and the
Secretary of the Treasury was able to dispose of
the bills on a bank discount basis of about 1.46% per
annum. This, though very low, was not as good as
the price realized at the sale of the 91-day bills in
February, when the Secretary disposed of $154,218,000 of bills at an average of 1.21% per annum,
and compares with the exceptionally low average
rate to the Government of only 0.95% per annum at
the sale of $60,000,000 90-day bills on Jan. 30.
The amount of Federal Reserve credit outstanding, which was reported a week ago at $847,255,000
as then being at the lowest figure since the summer
of 1924, underwent a substantial increase during
the week ending Wednesday night of this week. The
increase resulted entirely from the fact that the 12
Reserve Banks doubled their holdings of acceptances
purchased in the open market. The amount of such
acceptances for April 1 is reported at $166,622,000
as against $83,272,000 on Mar. 25. The additional
amount presumably represents chiefly acceptances
sold to the Reserve institutions out of bank portfolios to offset withdrawals of Government deposits
from the depositary banks. The discount holdings
of the 12 Reserve institutions, representing direct
borrowing by the member banks, are somewhat lower
this week at $163,630,000 against $165,425,000 last
week. Holdings of United States Government
securities remain virtually unchanged at $598,363,000 against $598,558,000. As a result the total
of bill and security holdings, reflecting the volume
of Reserve credit outstanding, stands at $928,615,000
as against $847,255,000 a week ago. The amount
of Federal Reserve notes in circulation increased
during the week from $1,441,715,000 to $1,497,811,000. Gold reserves are somewhat lower, at
$3,115,202,000 against $3,126,368,000.
Brokers' loans of the reporting member banks in
New York City are now showing only insignificant
changes from week to week. The total this week
(April 1) is reported at $1,875,000,000 as against
$1,908,000,000 a week ago on Mar. 25. This shows,
it will be noticed, $33,000,000 decrease the present
week, and follows $5,000,000 decrease last week,
making $38,000,000 decrease for the two weeks combined. On the other hand, two weeks ago there was
$94,000,000 increase on top of $29,000,000 increase
the week before, making $123,000,000 increase for
those two previous weeks combined. To this week's
contraction of $33,000,000, loaning under all the
different categories contributed; loans for own
account fell from $1,414,000,000 to $1,391,000,000;
loans for account of out-of-town banks from $260,000,000 to $258,000,000, and loans "for account of
others" from $234,000,000 to $226,000,000.
The monthly statement of Stock Exchange borrowing, compiled by the Stock Exchange itself, also
made its appearance the present week, it covering
the month of March. It showed,roughly,$69,000,000
expansion in borrowing by members of the Exchange
during March, following $119,000,000 increase during February. In January, however, and all the
preceding months back to April 1930, there had been
heavy and uninterrupted contraction. The result is
that the amount for April 30, at $1,908,810,494, while
comparing with $1,720,345,318 Jan. 31, compares
with $5,063,131,359 April 30 1930.
2448
FINANCIAL CHRONICLE
The stock market this week took a further downward plunge. It was almost continuously depressed
day after day all through the week, with only occasional temporary rallies. Selling pressure has been
all, the time in evidence, while buying orders have
been extremely limited. Keen disappointment has
been felt because of the lack of any indications of
business recovery, such as had been confidently
looked for with the adjournment of Congress, and
in addition there were some distinctly unfavorable
developments. Some lull has occurred in the steel
trade, and the trade papers have reported mills
engaged to only 55% of capacity against 57% last
week, being the first week since the beginning of the
year when any setback of this kind has occurred.
Furthermore, the course of prices for steel products
has been unsatisfactory and the scheduled increase
in the price for steel bars, plates and shapes, which
was to become effective April 1, appears to have
been abandoned. In the copper trade the price of
that metal has met with another setback, the domestic price for copper delivered in Connecticut having
dropped to 9%c. The railroad stocks have again
been special objects of weakness, because of the further receipt of income returns for February and the
first two months of the year, all making an exceedingly poor showing. Some of the further returns
from industrial concerns for the December quarter,
and the calendar year 1930, of a like unfavorable
character have also come to hand and have played
their part in depressing the market. Additional
dividend reductions and suspensions have also been
in order and have served to impel prices downward.
Call loans on the Stock Exchange have ranged between 1% and 2%,the same as last week. 140 stocks
dropped to new lows for the year during the week,
and 45 stocks new highs.
Trading has continued moderate. At the half.
day session on Saturday the sales on the New York
Stock Exchange were 2,119,170 shares; on Monday
they were 3,188,230 shares; on Tuesday, 2,405,531
shares; on Wednesday, 2,264,710 shares; on Thursday, 2,506,150 shares; Friday the Exchange was
closed, it being Good Friday. On the New York
Curb Exchange the sales last Saturday were 458,700
shares; on Monday, 666,800 shares; on Tuesday,
527,100 shares; on Wednesday, 448,400 shares, and
on Thursday, 448,100 shares.
As compared with Friday of last week, prices are
again lower all around. General Electric closed
4 on Friday of last
/
8 against 503
Thursday at 471/
4 against 12%;
/
103
at
Pictures
Bros.
Warner
week;
55%; United
against
49%
at
Light
&
Power
Elec.
8 against 28; Brooklyn Union Gas at
Corp. at 251/
8
4; American Water Works at 591/
115 against 1201/
against 69%; North American at 76% against 83%;
2 against 52%; Standard
Pacific Gas & Elec. at 501/
Gas & Elec. at 73% against 81%; Consolidated Gas
of N. Y. at 981% against 105; Columbia Gas & Elec.
at 38 against 43; International Harvester at 51%
against 53; j. I. Case Threshing Machine at 93%
against 112%; Sears, Roebuck & Co. at 55 against
.56%; Montgomery Ward & Co. at 22% against 24%;
Woolworth at 62% against 62%; Safeway Stores
at 58 against 60; Western Union Telegraph at 129
8 against
/
8; American Tel. & Tel. at 1877
against 1321/
Amer%;
361
against
8
193%; Int. Tel. & Tel. at 321/
InStates
United
124%;
ican Can at 121% against
Commercial
48%;
against
dustrial Alcohol at 41
4; Shattuck & Co. at 25%
Solvents at 17 against 181/
[VOL. 131..
4; Corn Products at 80% against 79%,
/
against 263
/8 against 11%.
and Columbia Graphophone at 107
Allied Chemical & Dye closed Thursday at 135%
against 152% on Friday of last week; E. I. du Pont
de Nemours at 94 against 98%; National Cash Regis8
ter at 28% against 28; International Nickel at 171/
8 against
8; Timken Roller Bearing at 521/
against 181/
/
8; Yellow Truck
56%; Mack Trucks at 35 against 387
& Coach at 11% against 13%; Johns-Manville at
/8
4; Gillette Safety Razor at 297
/
8 against 733
651/
8; National Dairy Products at 46%
against 311/
against 48; National Bellas Hess at 8 against 8%;
Associated Dry Goods at 24% against 26; Texas
Gulf Sulphur at 49% against 50%; American &
Foreign Power at 38% against 43%; General American Tank Car at 68% against 69%; Air Reduction
at 91% against 94%; United Gas Improvement at
/s, and Columbian Carbon at 79y2
32 against 337
against 84%.
The steel shares have all moved lower. United
States Steel closed Thursday at 138% against 143
on Friday of last week; Bethlehem Steel at 57
8; Re8 against 701/
/
8; Vanadium at 607
against 591/
public Iron & Steel at 17% against 20%, and Crucible Steel at 50 against 50%. In the motor stocks
8 against
/
General Motors closed Thursday at 427
44% on Friday of last week; Chrysler at 20%
against 22%; Nash Motors at 35% against 37%;
Auburn Auto at 235% against 237%; Packard
4; Hudson Motor Car at
Motor Car at 9 against 93
/
20 against 22, and Hupp Motors at 9% against 10%.
The rubber stocks have held up well. Goodyear Tire
& Rubber closed Thursday at 43% against 42% on
8 against
Friday of last week; U. S. Rubber at 171/
17%, and the preferred at 28% against 30%.
The railroad stocks have continued weak. Pend4 against 57
/
sylvania RR. closed Thursday at 553
on Friday of last week; Erie RR. at 26% against
/ against 109%;
297
8; New York Central at 1077
/
Baltimore & Ohio at 73% against 75; New Haven
at 80 against 87; Union Pacific at 181% against
18514; Southern Pacific at 94% against 991/2; Missouri-Kansas-Texas at 18% against 19%; Southern
Railway at 44 against 52%; St. Louis-San Francisco
at 36% against 40; Chesapeake & Ohio at 40%
4 against 52,
/
8; Northern Pacific at 483
against 411/
4.
/
and the Great Northern at 61% against 633
The oil shares have remained depressed. Standard
Oil of N. j. closed Thursday at 41% against 44 on
Friday of last week; Standard Oil of Calif. at 42%
against 43%; Simms Petroleum at 7 against 7%;
8 bid; Atlantic Refining
/
Skelly Oil at 7% against 87
Corp. at 28 against 28;
Texas
19%;
at 17% against
2
against
8
/
27
78; Phillips Petroleum
/
at
Oil
Richfield
at 9% against 11%; Standard Oil of N. Y. at 21
against 21%, and Pure Oil at 8% against 8/
78.
The copper shares encountered another decline in
the price of the metal. Anaconda Copper closed
Thursday at 32% against 32% on Friday of last
8 against 25%;
week; Kennecott Copper at 241/
Calumet & Hecla at 8% against 9 bid; Calumet &
8; Granby Consolidated
Arizona at 38 against 401/
Copper at 16% against 18%; American Smelting &
Refining at 45% against 45%, and U. S. Smelting &
8 bid.
Refining at 20 bid against 221/
Although price trends on the important European
stock exchanges were again irregular this week, the
general tone was more optimistic than in earlier
sessions and moderate advances predominated. The
APRIL 4 1931.]
FINANCIAL CHRONICLE
trading volume was modest at London, Paris and
Berlin, with dealings confined to the first four business days of the week. All the European markets
closed yesterday in observance of the Easter holidays, and business will not be resumed until next
Tuesday. Business conditions remain slack throughout Europe with definite signs of improvement hard
to find, but there were one or two indications this
week that occasioned •cheerfulness. The British
Ministry of Labor figures on unemployment fell by
more than 50,000 to 2,580,118, giving rise to a belief
in some quarters that the tide has turned and that
improvement in business has begun. The end of the
British fiscal year, Tuesday, showed a deficit in the
national finances of £23,275,971. This figure is considerably less than earlier estimates, and it was
therefore regarded less unfavorably than might have
been expected. On the Continent the markets were
cheered not a little by the end of the Parliamentary
sessions in France and Germany. Chief among
the disturbing influences of the week were some
markedly unfavorable company earnings reports.
The Cunard Steamship Company, for instance, published its report for 1930 in London last Sunday.
Profits for 1930 were only $93,005, against $4,048,195
in 1929, and $2,750,390 in 1928.
The London Stock Exchange was depressed in the
initial session of the week. Unfavorable week-end
reports from New York caused declines in international stocks, while British industrial and shipping
shares dropped heavily on publication of the Cunard
line report and a very disappointing report by the
United Molasses Company. The gilt-edged section
was firm, however, with British funds well supported, while Australian bonds advanced on the announcement that the commonwealth Government
would take the responsibility for New South Wales
interest payments due in London. Business was
small Tuesday, but almost all sections of the market
turned cheerful. British industrial issues recovered
smartly, and a better tone also appeared in international stocks. British funds were strong on hopes
of cheaper money in London, while most foreign
issues in the gilt-edged list also gained. Wednesday's
session on the London exchange was again favorable,
with British Government securities the center of interest as further gains were recorded. British industrial issues showed some strong points, while
international stocks were patchy. With the holidays
imminent Thursday, trading dropped to low levels
and fluctuations were unimportant. British funds
remained firm and the industrial section also was
favorable. Trans-Atlantic issues dropped, however,
and foreign bonds generally were off from previous
levels.
The Paris Bourse was extremely quiet, Monday,
but prices dropped sharply on the few transactions.
With the month-end settlements just ahead, holders
showed some desire to lighten commitments and
sharp recessions developed on an almost complete
lack of buying interest. When the settlements were
effected Tuesday, a tendency toward improvement
set in and mild gains were registered in a number
of stocks. Reflecting the plethora of funds available in Paris, the settlements were concluded with
money at 1/4 of 1%. Speculative buying was small
owing to the tendency to await a definite trend and
the end of the Easter holidays. The Bourse was firm
at the opening Wednesday, following the news that
the Chamber of Deputies had rejected a proposal to
2449
re-apply a tax on stock trading. Small recessions
developed as the session progressed and in most
instances levels were slightly lower for the day.
Dealings Thursday were insignificant owing to the
impending four-day holiday. Only a few issues were
turned over in the sluggish trading. Changes were
minute, with the exception of Suez, which dropped
in value.
The Berlin Boerse was dull and heavy at the opening Monday, owing to uncertainties regarding the
international reaction to the proposed Austro-German customs agreement. The average level was off
two points in the beginning, but slow improvement
set in during the day and most of the early losses
were regained before the close. After an uncertain
opening Tuesday, the Boerse turned moderately
strong and continued firm for the rest of the day.
I. G. Farben-industrie was the center of interest on
expectations of an increase in dividend disbursements. The trend was stimulated Wednesday by a
spurt of 27 points in use Mining shares. Although
part of this gain was subsequently lost, most mining
stocks were in demand and the entire group closed
higher. Potash stocks also showed good gains, while
other groups advanced more moderately. Trading
was dull Thursday as the four-day closing neared,
but some good buying was in evidence and the Boerse
again moved forward. Ilse Mining advanced 12
points, giving further stimulation to the mining section. Artificial silk and potash shares also were
firm. Best levels of the day were not maintained,
but the market closed on a confident note.
A series of impressive statements by the Foreign
Ministers of France, Great Britain, Austria and
Germany, made during the past week, has capped
the international discussion of the plan for an
Austro-German customs union, announced in Berlin
and Vienna March 21. The positions taken by the
four Governments in regard to the international
aspects of the proposal were outlined in most cases
before the respective Parliaments. Foreign Secretary Arthur Henderson, of Britain, made the most
important contribution to the discussion, when he
announced formally in the House of Commons Monday, that he would bring up in the next League of
Nations Council meeting the question of the cornpatability of the customs union arrangement with
Austrian treaty obligations. That this procedure
will be acceptable to the Berlin and Vienna Governments was indicated the following day by Foreign
Minister Julius Curtius of Germany, who declared
there would be no objections to examination of the
judicial aspects of the agreement.
Renewed consideration was also given this week
to the status, under the proposed accord, of the numerous most-favored-nation trade treaties maintained
with other countries by Germany and Austria. It
was pointed out officially in Berlin that Belgium and
Luxemburg have concluded a customs union which
does not involve extension of free trade by either
participant to other countries enjoying most-favorednation treatment. Suggestions that France might
bring up this matter were deprecated unofficially
in Paris, where it was pointed out that France now
has free trade with the Principality of Monaco which
is not shared with other nations enjoying mostfavored-nation treatment. Washington reports of
last Saturday stated that Germany would resist any
efforts of the United States to have American goods
2450
FINANCIAL CHRONICLE
admitted duty free into the territory of the proposed
Austro-German customs union due to the unconditional most-favored-nations clauses of existing
treaties. Unofficially, it is stated, the German Embassy at Washington has already pointed out that
an international economic conference held at Geneva
in 1927 under League auspices took the position that
customs unions are exempt from the usual commercial treaties.
Quite as significant as the official pronouncements
on the accord, which were foreshadowed by the diplomatic moves and counter moves of last week, were
numerous unofficial indications of the changed European political and economic alignments, which the
agreement emphasizes rather than produces. The
London Economist considered the agreement an
event of very considerable importance which may
redound to the great advantage of Europe if it indicates that a real start can be made in reducing tariff
barriers. In a Paris dispatch of Wednesday to the
New York "Evening Post" it was remarked that
France has reasons for apprehension over the customs union aside from any possible political connotations. "Austria, little as she now is, manufactures de luxe articles similar to and competitive
with those produced in France," the dispatch continued. "With their free entrance into Germany
these Austrian articles will enjoy a world-wide distribution and the benefits of Germany's new shipping. Germany is seen as ultimately 'becoming the
trade middleman not only for Austria, but possibly
also for Hungary, Czechoslovakia, Poland, Rumania
and Jugoslavia."
There were also some bitter comments in Paris, a
dispatch to the New York "Times" said, regarding recent French procedure in the international economic
and financial fields. "Even to her friends of Eastern
Europe the agricultural interests of France would
not consent at the recent grain conference in Paris
to make the slightest sacrifice or offer any help, and
to those everywhere who have been seeking financial
assistance French financial interests have shown
themselves far less co-operative than harshly commercial," the dispatch remarked. "As a result of
this opposite tendency to all that M.Briand has been
preaching and trying to accomplish, the Quai
d'Orsay now finds itself faced with the extremely
difficult complication of the Austro-German offer to
extend the customs union to other European countries. More than one of them is already tempted
by the offer, and especially so because it seems to
include a practical immediate advantage which the
European union scheme is still far from presenting."
In Germany there was a noteworthy reversal of
the French tendency to consider the customs union
accord from its political aspects officially, and its
economic aspects unofficially. While Dr. Curtius
expounded the official Reich view of the purely economic importance of the agreement, commentators
in Germany made much of the political significance
of the development. "The announcement will probably rank as a historic event in the diplomatic history of Europe, as it marks the actual return of
Germany to the status of a great power," a Berlin
dispatch to the New York "Herald Tribune" said.
"Theoretically, Germany attained this rank when
she was admitted to the League of Nations in 1926.
But in reality the Reich, weakened by the loss of the
war, was not the equal of the other European powers.
There can be no denying that the presence of foreign
[vcr„. 132.
troops on German soil acted as a restraint upon the
Wilhelmstrasse. Everything else had to be subordinated to getting the Allies out of the Rhineland.
Germany now feels free to act for herself. The
evacuation of the Rhineland has encouraged Germany to try diplomatic flights of her own, and
the Zollverein with the sister Teutonic republic of
Austria is the first essay."
Foreign Minister Aristide Briand of France
inaugurated the succession of official statements on
the Austro-German customs union in a defense of
his policies before the Senate in Paris last Saturday. Some caustic remarks regarding the veteran
French statesman's reported ignorance of German
and Austrian'intentions were made by his political
opponents, and to these. challenging comments he
made an extensive reply: "If I remain at my post,
I shall continue to a conclusion the action which I
have begun," he promised the Senate. "That is to
say, I shall try to dissuade these countries from
perseverance in their intention to violate their
solemn engagements. We have told Austria that
she has not the right to do such a thing, a thing
which is in formal contradiction with the treaties
and the agreement made in 1922. On the day when
we can no longer depend upon loyal observance of
treaties, there will be nothing left, neither safeguards nor security. This evidently is a decisive
juncture in our relations with Germany. What is
gravest in this affair is the procedure. Its manner
is not good and it is indeed disquieting, for it is
contrary to all the conditions which have been laid
down for European collaboration." Because of the
serious view which M. Briand takes of the situation,
it was announced that he will not accompany President Doumergue on his visit to Tunisia this month.
Foreign Secretary Arthur Henderson informed
the House of Commons in London on Monday that
he proposes to ask the League of Nations Council
to discuss at its May session the question whether
the customs union agreement infringes upon Austria's international obligations. "The method and
time chosen by the Austrian and German Governments for conveying to the other governments this
information rightly provoked widespread comment,"
Mr. Henderson said. "It was calculated to nullify
the arrangement for a frank exchange of ideas
offered by the frequent meetings at Geneva and elsewhere of representatives of the various governments." He expressed the hope that the negotiations
between Germany and Austria would not be so far
advanced by the time the League Council meets as
to prejudice the friendly atmosphere in which the
League normally discusses its problems. Without
the existence of the League machinery, he added, the
situation might have caused "hotter feelings and
harder words." Mr. Henderson reviewed carefully
the steps taken after his arrival in Paris last week,
where he found French opinion in "a state of very
natural perturbation." His own opinion, he said,
was that the matter was eminently one coming
within the competence of the League of Nations.
This consideration, and the fact that much apprehension had been occasioned in other countries, were
accordingly transmitted to the German and Austrian
Chancellors.
Summarizing the German and Austrian replies,
which were officially disclosed last week, Mr. Henderson said he regarded the Austrian answer as
APRIL 4 1931.]
FINANCIAL CHRONICLE
less open to question than the German answer, since
the latter "might be held to imply that an examination of the juridical aspect of the question would
have to be conducted without their co-operation, and
expressed the intention of continuing the negotiations with Austria in the meantime." The possibility of a misunderstanding occasioned a further
exchange, the Foreign Secretary said. "The German
Government replied that they had perfectly understood my proposal, that the German Government
saw no reason to refer the proposed treaty to the
League Council since they were satisfied it was not
contrary to the protocol of 1922, and that the powers
signatory to the protocol were of course at liberty
to refer the treaty to the Council, but that the German Government must reserve complete liberty of
action regarding any procedure which might be suggested to the Council." Important also was the
opinion, expressed by Mr. Henderson, that "if
nothing were done to calm existing apprehensions,
the task of those who are anxious that the disarmament conference of 1932 should meet under the most
favorable auspices would be seriously compromised."
Foreign Minister Johann Schober of Austria explained in a formal statement at Vienna Monday
that economic conditions had necessitated the Austro-German customs union. Austria had been deprived by the peace treaties of her natural markets,
he pointed out, and she had found it advisable to
appeal several times to "the conscience of Europe
and the world." Although help had been extended
by the League of Nations, that body had been unable
to reconstruct Austria's economic basis, he continued. Referring to the Briand plan for a European
federation, Dr. Schober described the series of "negative" conferences held to further the idea and recalled how his own proposal of regional agreements
between States had been acclaimed. "On Jan. 15
I again attended a Pan-European Commission meeting in Geneva," he said. "I spent two days there,
but there was not one iota of postive achievement.
When the German Foreign Minister, Dr. Julius Curtins, came to Vienna in February we discussed the
whole situation and resolved to attempt something
practical by declaring our willingness to enter an
Austro-German customs union and to invite other
States to join it." With nothing more than agreement "in principle" reached, the two countries decided to inform other European States,"to avoid the
impression of preparing a surprise," Dr. Schober
declared. "I wish to establish that the German
Government on Mar. 18, and the Austrian on Mar.19,
agreed to the decision of the two Foreign Ministers,
that on Mar. 20 the Austrian Parliament was notified through its main committee,and that on Mar.21
most of the other States were informed."
Criticisms of the accord and of the Austrian and
German diplomatic procedure were taken up Tuesday by Dr. Julius Curtius, Foreign Minister of Germany, in an address before the Reichsrat, or Upper
Chamber of the German Parliament. He described
the agreement as the first genuine attempt to rebuild
Europe as an economic unit after its "Balkanization" by the treaty of Versailles, and said that Germany was willing to have the League Council
scrutinize the juridical aspects of the pact. He also
had no objection to study of the accord by the PanEuropean Commission. Since the pact is not contrary to existing treaty obligations and does not
possess political significance, "it is self-evident that
2451
we will not avoid discussion of the legal question in
the Council of the League," Dr. Curtius said. "Our
political objection is limited to our purely economic
agreement being put up for discussion as something
endangering peace. Such an imputation is devoid of
foundation and the line of argument is inadmissible."
To charges that Germany and Austria had neglected to keep other interested powers informed of
their negotiations, Dr. Curtius replied that such
powers were informed as soon as a concrete understanding had been reached and that any earlier announcement would have served no practical purpose.
"From an international standpoint, one cannot act
in better faith than when, before the conclusion of a
treaty, one proclaims the intention and basic ideas
of this treaty to all the world," he continued. "We
would be happy if we had always been dealt with
in the same spirit of good faith and candor." Both
German and Austrian statesmen realized, in conducting the negotiations, that even the appearance
of a violation of Austrian independence must be
avoided under all circumstances, he said. For this
reason, care was taken to see that both States entered
the pact as equal partners. "If Luxemburg and
Belgium can conclude a customs union without the
independence of either country being impaired, why
cannot Germany and Austria do the same?" Dr. Curtins asked. He emphasized again the economic
aspects of the accord, declaring that "within the
framework of existing treaties we propose with the
least posible delay to procure for our respective
economies such benefits as will accrue from the
expansion of their present economic territories."
Study of the world grain situation by delegates
of 46 nations, who gathered at Rome on the invitation of the International Institute of Agriculture,
ended Thursday without concrete results. The
meeting was started by Premier Mussolini Mar. 26,
and in the week of discussion that followed three
main plans for regulating production and distribution of the world's grains were considered. The
three proposals were carefully examined by subcommittees, the first of which dealt with the production and distribution of wheat. The second committee considered agricultural credits, while the
third debated the question of preferential tariffs to
be granted by Western European countries in favor
of the agricultural Danubian States. In the final
plenary session, Thursday, the conference approved
a series of recommendations for short-term loans to
farmers, for increasing the consumption of wheat,
and means of international collaboration on grains.
Suggestions for reduction of wheat acreage by direct
methods were not approved. One of the most important results of the meeting was an agreement
among representatives of the larger non-European
wheat exporting countries to hold a conference of
their own at London May 18 for the purpose of discussing means for disposing of present surpluses.
Canada, Australia, South Africa, Argentina and
India agreed to attend this meeting, and it was indicated that the United States will be invited to send
official delegates. This country was not represented
officially at the Rome meeting.
A prolonged and wearying session of the French
Parliament ended on April 1 with the adoption of
the national budget for the fiscal year beginning on
2452
FINANCIAL CHRONICLE
the same day. The Chamber of Deputies and the
Senate sat almost uninterruptedly for about 36
hours in the final meeting on the budget, which provides for revenues of 50,643,485,395 francs, and expenditures of 50,640,509,352 francs (about $2,024,900,000). During discussion of the budget, Minister
of Finance Pietri admitted candidly that the nominal surplus of $100,000 is merely a paper result, and
that a deficit will probably occur. In the final debate Premier Pierre Laval was forced to pose the
question of confidence three times, but he was sustained by wide majorities on every occasion. One
of the favorable votes occurred on "the issue of a
provision for Government bondholders who had been
ruined by the fall of the franc," a dispatch to the
New York "Times" said. The lengthy budget debate
forced postponement of scheduled interpellations in
the Chamber on the Austro-German customs union.
The Parliament will not reassemble until May 5.
(VOL. 132.
ber national elections and was not occasioned by
the emergency decree. Republican groups in Germany considered the incident an event of the first
magnitude which may signify the end of the Fascist
menace, a report to the New York "Evening Post"
said.
One of the most destructive earthquakes of recent
years laid waste the city of Managua, capital of
Nicaragua, Tuesday morning, causing a toll of
deaths that will probably exceed 2,000. The destructive tremor lasted only six seconds, but it razed the
central sections of the city with an appalling completeness. Other sections of the country, however,
appear to have escaped the terrifying effects of the
shock. The number of injured runs into the thousands, while the property loss is stupendous, late
estimates placing the figure at anywhere from $30,000,000 to $70,000,000. Managua was virtually
leveled in the disaster and almost all of the city's
population of 35,000 rendered homeless. Fire
started in some sections of the town and made intermittent headway, but United States marine forces
were speedily organized to fight this scourge with
dynamite, as all water supplies failed. Buildings
of the American Legation, the National Palace, all
Government structures, 'bank buildings and commercial edifices were tumbled into ruins and the
destruction completed in many cases by the sweeping flames. Government records also were lost,
while the records of Irving C. Lindberg, the resident
High Commissioner, also appear to have been
destroyed. Although there are 900 Americans in
Managua and about 2,500 in all of Nicaragua, the
American casualties were few. Known American
dead include Lieut.-Commander Hugo F. A. Baske,
a doctor of the Nicaraguan National Guard, Mrs.
Joseph D. Murray, two United States officers in the
Nicaraguan National Guard, two wives of National
Guard officers, and the chauffeur of Mr.Lindberg.
Relief work was hastily organized by the United
States forces under Col. Frederick Bradman and
Col. Dan I. Sultan. The afflicted residents deserted
the stricken city by the thousands, most of them
trooping over the roads to neighboring towns where
concentration camps were set up for their benefit.
President Hoover took personal harge of the relief
steps organized in Washington, and under his direction food and medical supplies were rushed to
Managua by air and sea. With the city a mere mass
of ruins, it is considered very unlikely that any
attempt will be made toward reconstruction. Another capital will probably be chosen by the Nicaraguan Government, which already has moved its
headquarters to Masaya, a city of 13,000 population
some 23 miles from Managua. Matthew E. Hanna,
American Minister to Nicaragua, appealed for extensive aid, as it is considered beyond the powers
of the people to recuperate alone. Many messages
of condolence were received by President Jose Moncada. The heartfelt sympathy of the American Government and people was extended in a message from
President Hoover, while King George V sent the
sincere condolences of the British Government and
people.
Drastic measures designed to deal with "political
excesses" of extremist parties in Germany were
adopted last Saturday, when President Paul von
Hindenburg, acting at the request of the Bruening
Cabinet, issued an emergency decree severely curtailing freedom of speech and assembly throughout
the Reich. The decree was issued under the authority granted the German President by the "dictatorship" paragraph of Article 48 of the Weimar
Constitution. Some murmurs of protest were occasioned by this action among the National-Socialist
or Fascist followers of Adolph Hitler, and the Communistic elements, but otherwise the decree was
accepted quietly. Indeed, it was regarded with a
feeling of relief in many responsible quarters as
inaugurating a period of constructive work. The
aim of -the measure, a Berlin dispatch to the New
York "Herald Tribune" said, is apparently to prevent any recurrence of such incidents as the recent
Communist rioting in Leipzig on what was called
"fighting day against unemployment", when a number of persons were killed, and the political murders
in Hamburg, alleged to have been committed by
Fascist followers of Herr Hitler. Since the Reichstag had adjourned two days previously, it was obvious that the emergency decree was not directed
against the Parliament.
As issued, the decree carried the signatures of
Chancellor Heinrich Bruening and Minister of the
Interior Joseph Wirth, as well as that of the President. It suspended in whole or in part the fundamental laws providing for individual freedom, the
inviolability of dwellings, the secrecy of the mails,
the right to express personal opinions without
hindrance and the right of public meeting. Article
48, under which it was issued, provides that the
President of the Reich, "in the event that public
security and order should be considerably disturbed
or in danger, may take all necessary measures to
re-establish such security and order and, if necessary, to intervene with the aid of armed power."
Especially significant in view of this step was an
open revolt within the ranks of the National-Socialists of Thuringia, Wednesday, against the leadership
of Hitler. The Fascist leader is considered in large
measure responsible for the "political rowdyism" in
the Reich that prompted the emergency decree. The
Threats of a default by the State of New South
Thuringian split merely reflected, dispatches said, Wales, Australia, on interest payments due in Lonthe underlying differences among the various groups don April 1 occasioned some perturbation during the
that flocked to the Fascist standard in the Septem- last 10 days, largely because of the singular nature
Arm".4 1931.1
FINANCIAL CHRONICLE
of the incident. John T. Lang, Laborite Prime Minister of New South Wales, declared some time ago
that he might prevent payments to British bondholders in pursuance of his avowed aim to secure
downward revision of the Australian war debt settlement with Great Britain. He advocated this step
throughout the long conferences of Australian Prime
Ministers in Canberra, called to consider the economic situation of the Commonwealth. Announcement by Mr. Lang on Mar.26, therefore, that he had
decided not to pay $3,646,000 due in London April 1,
while meeting payments of $626,000 due in New
York, was not a surprise to bankers. The incident
nevertheless created a painful impression. Mr. Lang
made his declaration in the form of a telegram to
the Commonwealth Prime Minister, James H. Scullin, who promptly laid the matter before the Canberra Parliament. Referring to the agreement of
1929 between the Commonwealth and the States,
whereby the debts of the latter were taken over by
the Federal regime, Mr. Scullin pointed out that
it was for the Parliament to consider the legal liabilities of the Commonwealth. Prime Ministers of
all the other Australian States condemned the action
of the New South Wales political leader, some of
them in round terms. The action, moreover, caused
a split in the ranks of the Labor party of New South
Wales, although solid support had previously been
given its chosen leader. The matter was discussed
by the House of Commons in London late last week,
J. H. Thomas, Secretary of State for the Dominions,
remarking that "in view of the disastrous effect on
Australian credit resulting from such a default, I
refuse to believe that such a situation will be allowed
to arise."
Announcement that the Commonwealth Government of Australia would pay the interest due on
New South Wales obligations in London followed
last Monday. Prime Minister Scullin made the step
known after a special Cabinet meeting, called to
consider the situation. British bondholders were
thus protected, as anticipated in view of the 1929
agreement between the Commonwealth and the sev
eraal State Governments. Legal opinion was sought
on this matter, a Sydney dispatch to the Associated
Press said. Counsel had advised that under the
agreement the Commonwealth was liable for interest
payments on State loans, and the announcement by
Prime Minister Scullin was promptly made. Mr.
Scullin added, a dispatch to the New York "Times"
said, that "Prime Minister Lang has not only struck
a blow at the prestige of Australia, but has raised
questions of magnitude concerning the financial
relations between the Commonwealth and the
States." The understanding prevailed in Sydney,
the dispatch added, that high court proceedings will
follow at an early date. Mr. Thomas announced in
the House of Commons in London, Monday,that provision for the New South Wales interest obligations
had been made by the Commonwealth Government.
The statement was cheered in all sections of the
House.
On Mar. 31 the Rumanian National Bank reduced
its discount rate from 9% to 8%. Otherwise no
changes occurred during the week in the discount
rates of any of the European central banks. Rates
are 6% in Spain; 5I/2% in Hungary and Italy;
in Germany and Austria; 4% in Norway and Ireland; 3I/2% in Denmark; 3% in England and
2453
Sweden; 21/
2% in Holland and Belgium, and 2% in
France and Switzerland. In the London open
market discounts for short bills on Thursday were
/
8% on Friday of last
2 9/16% against 2 9/16@25
week, and 25
/
8% for three months bills against
2 9/16@2%% on Friday of last week. Money on
call in London on Thursday was 11/270. At Paris
the open market rate remains at 134%,but in Switzerland there has been an increase from 1% to 1%.
The Bank of England statement for the week
ended April 1 shows another gain in gold holdings,
this time of £868,686 which.rings the aggregate up
to £145,387,187 in comparison with £157,125,492
last year. As this was attended, however, by an
expansion of £8,249,000 in circulation, reserve fell
off £7,380,000. Deposits, both public and other,
increased, the former £7,743,000 and the latter £2,066,762. Other deposits consist of bankers accounts
and other accounts which rose £1,084,566 and £982,196 respectively. The reserve ratio fell off sharply
from 55.20% a week ago to 43.4% now. A year
ago it was 50.46%. The drop of 11.56% is, of course,
accounted for by the large decrease in reserves together with the expansion in deposits. Loans on
government securities rose £2,655,000 and those on
other securities £14,530,089. The latter consists of
"discounts and advances" and "securities" which
showed increases of £13,266,428 and £1,263,661 respectively. The discount rate is unchanged at 3%.
Below we furnish comparisons of the various items
for five years:
92
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1931.
1930.
1929.
1927.
Apr. 6.
Apr. 1.
Apr. 4.
Apr. 2.
Apr. 3.
Circulation
a357.057,000 357,285,456 389,319,286 136,605,000 137.859.345
17,243,000 18.422,477 17.796.531 25,998,000 21,035,604
Public deposits
93,481,658 100,192,023 104,576,090 88,883,000 103,249,167
Other deposits
Bankers accounts 58,788,220 62.833,897 67,268,161
Other accounts. 34,693,438 37,358,126 37,307.929
Government securs. 30,349,684 54,021,909 59,956,855 34,791,000 30,981,935
Other securities__ 50,314,011 23,015.858 29.579.333 57,351.000 77.765.873
Met.& advances 24,628,884 10.309,949 13,221.208
25,885,127 12,705,909 16.358,125
Securities
196
%
9 40,390.000 33,191.112
Reserve notes & coin 48.331.000 59.860,036 51,145
Coln and bullion_145,387.187 157,125,492 154,467,255 157,244,685 151,300,457
Proportion of reserve
50.46%
41.79%
35.16% 2611-16%
43.64%
to liabilities
5%
3—%
434%
Bank rate
335%
On Nov. 29 1928 the fiduciary currency was amalgamated with Bank of England
note issues adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.
In its statement for the week ended March 28,the
Bank of France records a gain of 13,557,980 francs
in gold holdings. Total gold now stands at 56,116,439,790 francs, which compares with 42,556,853,665
francs last year and 34,186,453,842 francs the year
before. The items of credit balances abroad and
bills bought abroad show gains of 27,000,000 francs
and 3,000,000 francs respectively. Notes in circulation show an expansion of 493,000,000 francs,
raising the total of notes outstanding to 77,863,273,870 francs. Circulation a year ago aggregated
70,825,654,115 francs and two years ago 64,574,941,160 francs. Increases also appear in French
commercial bills discounted of 1,001,000,000 francs
and in creditor current accounts of 609,000,000
francs while the item of advances against securities
fell off 23,000,000 francs, Below we furnish a comparison of the various items for the past three years:
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Menus as o
Changes
Mar. 28 1931. Mar. 29 1930. Mar. 30 1929.
for Week.
Francs.
Francs.
Francs.
Francs.
Gold holdings— -Inc. 13,557,980 58,116.439,790 42,556.853.685 34,188.453.842
Credit baLs.abed_Inc. 27,000,000 6.938,515,453 6.920.235,470 10,577,385,264
French commercial
Ms disco nted.Inc.1,001,000,000 7,072.815,621 6,356.963.265 6,837.904.092
Bills bought abed_Inc. 3.000,000 19,339,669.734 18.714,626,977 18,332,958,505
Adv. Mt. secure. _Dec. 23,000,000 2,858,698.259 2,534,795,139 2,321.794,733
Note circulation—Inc. 493,000.000 77.863,273,870 70,825,654.115 64,574,941,160
Cred,cuff. accts—Inc. 609.000.000 24,349.954.211 15,520.985.257 18.219.335.454
2454
The Bank of Germany in its statement for the
fourth week of March records a gain in gold and
bullion of 37,280,000 marks. Owing to this gain the
item now aggregates 2,323,403,000 marks, as compared with 2,495,931,000 marks the same time last
year and 2,682,702,000 marks the previous year.
Increases also appear in bills of exchange and checks
of 618,321,000 marks, in advances of 187,382,000
marks, in other daily maturing obligations of 44,607,000 marks and in investments of 540,000 marks.
Note circulation increased 689,988,000 marks, bringing the total of the item up to 4,455,670,000 marks.
Circulation a year ago amounted to 4,805,581,000
marks and the year before to 4,821,986,000 marks.
The items of reserve in foreign currency, silver and
other coin, notes on other German banks, other assets
and other liabilities show decreases of 34,527.000
marks, 37,835,000 marks, 16,653,000 marks, 79,193,000 marks and 59,280,000 marks respectively.
The item of deposits abroad remains unchanged at
207,638,000 marks. A comparison of the different
items for the past three years is given.below:
REICHSBANK'S COMPARATIVE STATEMENT.
Changes for
1Veek.
Mar.31 1931. Afar. 311930. Mar.311929,
Reichsmarks. Reichsnuirks. Reichsmark:. Reichsmarks.
Assets—
Inc. 37,280,000 2,323,403,000 2,495,931,000 2,682,702,000
Gold and bullion
207,638,000 149,788,000 128,748,000
Ot which depot. abr'd_ Unchanged
Res've In for'n curr_ Dec. 34,527.000 188,065,000 386,600,000
35,956,000
Bills of exch. & checksInc. 618,321,000 2,249,098,000 2,067,462,000 2,352,777,000
Silver and other coin_ -Dec. 37,835,000 157,157,000 130,761,000 107,042,000
10.144,000
3,918,000
8,508.000
Notes on oth. Ger. bksDec. 16,653,000
Inc. 187,382,000 274,072,000 201,309,000 135.052,000
Advances
Inc.
Investments
540,000 102,802,000
93.245,000
93,136,000
Dec. 79,193,000 476,560,000 529,839,000 550,794,000
Other assets
Liabitities—
Notes in circulation Inc. 689,988,000 4.455,670,000 4,805,581,000 4,821,986,000
Oth.dally matur. obligInc. 44,607,000 397.452,000 729,648,000 478,091,000
Dec. 59,280.000 281,402,000 150,033,000 223.494,000
Other liabilities
Slightly firmer conditions in the New York money
market this week again accompanied the heavy
withdrawals of funds by the Treasury from depositary institutions for the purpose of making loans
to veterans on adjusted compensation insurance certificates. Additional Treasury financing was done
Monday, when $100,000,000 of new discount bills
were sold at an average discount of 1.46%. Payment for these bills was made in part Thursday
and in part yesterday. Call money in this market
remained at 1/
1
2% in most sessions, but for a time
on Tuesday new loans were marked up to 2%. There
were no offerings at concessions in the outside market, as the supply of funds on the Stock Exchange
was not sufficiently large to cause an overflow into
the street.
Substantial withdrawals by the banks were
noted every day, these withdrawals amounting
to $35,000,000 Monday, $25,000,000 Tuesday, $30,000,000 Wednesday, and $30,000,000 Thursday. No
money dealings took place yesterday, as the financial
markets were closed in observance of Good Friday.
Time loans showed no important fluctuations. Both
the regular reports of brokers loan totals were made
public Thursday. The Federal Reserve Bank of
New York indicated a decline of $33,000,000 in the
loan total during the week to Wednesday night,
while the New York Stock Exchange tabulation
covering the full month of March showed an increase
of $69,054,436. Gold movements for the week to
Wednesday night, as reported by the Federal Reserve
Bank of New York, consisted of imports of
$6,220,000. There were no exports and no net change
in the stock of gold held earmarked for foreign
account.
[VoL. 132.
FINANCIAL CHRONICLE
Dealing in detail with call loan rates on the Stock
Exchange from day to day, the rate remained unchanged from day to day at 1/
1
2%,all loaning having
been at that figure except that on Tuesday, after
renewals had been effected at 11/2%, there was an
advance in the rate for new loans to 2%. Time
money has continued without noteworthy movement.
Transactions have been at a minimum due to cheaper
money in other divisions of the market. Rates have
remained ,unchanged at 11/
/
4% for 30 days,
2@13
1/
1
2@2% for 60 days, 2@21/
4% for 90-day accommodations, 2@214% for four months, and 21/
4@2/
1
2%
for five and six months. The market for prime commercial paper has shown a gradual increase, and
with a larger supply of paper available, sales have
greatly increased. Rates for choice names of four
1
2%, while names less
to six months' maturity are 2/
/
4@3%. Occasional transactions
well known are 23
have taken place at 2% in the shorter choice
names.
The market for prime bank acceptances has shown
a moderate increase in business this week. More
bills have been available and buyers are more
numerous. Rates show no change. The Reserve
Banks increased their holdings of acceptances from
$83,272,000 to $166,622,000. Their holdings of
acceptances for foreign correspondents further declined from $437,233,000 to $430,784,000. The posted
rates of the American Acceptance Council remain
at 1%% bid and 1/
1
2% asked for bills running 30
days, and also for 60 and 90 days; 13
4% bid and
1%% asked for 120 days, and 17
/8% bid and 134%
asked for 150 days and 180 days. The Acceptance
Council no longer gives the rates for call loans
secured by acceptances. Open market rates for
acceptances have also remained unchanged, as
follows:
SPOT DELIVERY.
•
Prime eligible bills
---180 Days
Bid. Asked.
144
144
—150 Days— ---120 Days—
Bid. Asked.
Bid. Asked.
134
1(
134
134
—90Days— —60Days— —30DMA—
Bid. Asked.
Bid. Asked.
Bid. Asked.
144
134
134
134
Prime eligible bills
134
14
FOR DELIVERY WITHIN THIRTY DAYS.
Eligible member banks
134 Old
Eligible non-member banks
174 bid
There have been no changes this week in the redi-count rates of the Federal Reserve Banks. The
following is the schedule of rates now in effect for
the various classes'of paper at the Reserve banks:
DiscooNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
Federal Eeserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas CltY
Dallas
San Frandsoo
Rate in
Effect on
Apr.3.
234
2
344
3
344
3
3
a
344
334
344
3
Date
Established.
Previous
Rate.
Jan. 2 1931
Dec. 24 1930
July 3 1930
Dec. 29 1930
July 18 1930
Jan. 10 1931
Jan. 10 1931
Jan. 8 1931
Sept. 12 1930
Aug. 15 1930
Sept. 9 1930
Jan. 9 1931
3
214
4
3)4
4
344
3)4
344
4
4
4
344
Sterling exchange continues the firmer trend which
set in a few weeks ago and, except during dull
periods of trading, rates are inclined to move up in
favor of London. In the early part of this week,
owing to inactive trading more than to any other
cause, the sterling rate was inclined to ease, but
on Wednesday and Thursday there was considerable demand for sterling to make settlements before
the Easter holiday and it then became evident that
the undertone was firm. On Good Friday there
APRIL 4 1931.]
FINANCIAL CHRONICLE
was no market in London and, as customary, the
Easter holiday in London will carry over until
Tuesday. Owing to Holy Week and the approach
of the Easter holidays, the foriegn exchange and
money markets in nearly all countries experience a
period of inactivity.
The range this week has been
from 4.85 9-16 to 4.85 13-16 for bankers' sight bills,
compared with 4.85% to 4.85 27-32 last week. The
range for cable transfers has been from 4.85 13-16
to 4.86, compared with 4.85 27-32 to 4.86 a week ago.
Sterling continues firm with respect to French
francs and the London market expresses gratification over the immediate prospects. The optimism
is especially encouraged by the fact that the Bank
of England has again been able to procure South
African gold in the open market, while withdrawals
have been only in nominal routine amounts. Under
normal conditions discount rates would be falling
in London in consequence of the favorable change
in the gold situation, but the official control of the
market is being maintained and there is no indication as yet of a change in policy. The presumption
is that the market will not be given its freedom
until the Bank of England has been able to restore
its gold reserves to a more satisfactory level, which
is deemed not lower than the £150,000,000 recommended by the Cunliffe Committee. The Bank's
success in turning the gold tide in its own favor
naturally implies that its policy has also turned the
foreign exchange situation in favor of London.
This, of course, was necessary first to check gold
exports and then to encourage imports. Almost
without exception sterling exchange is being maintained at much more favorable levels for London
with regard to other centres than those which obtained for the last month or two. There is no
reason to anticipate any material setback unless
there is a recrudescence of financial difficulties in
important foreign centres or unless the London discount market breaks away from official control.
Neither of these events appears probable. All seasonal trade factors favor a firmer sterling rate and
after Easter tourist requirements begin to gather
force, favoring sterling and all the Continental currencies.
The Bank of England statement for the week
ended April 1 shows an increase in gold holdings
of £868,686, the total standing at £145,387,187,
which compares with £157,125,492 a year ago. On
Saturday the Bank of England exported £2,000 in
sovereigns. On Monday the Bank received £250,000
sovereigns from abroad. On Tuesday the Bank set
aside £1,000,000 in sovereigns, bought £84,095, and
exported £5,000 in gold bars. Only £30,000 of bar
gold was available in open market on Tuesday, the
bulk of which was secured by the Bank at near its
minimum price of 84s. 9Y1c1., which was the lowest
price touched for gold in London since November
1928. The low price was due to lack of outside
demand for the metal, and the sellers were forced
to deliver to the Bank of England. The sellers lost
a small margin because the South African bar gold
which was available was without the Rand Assay
stamp and had to be specially assayed. On Wednesday the Bank bought £122,200 in gold bars, released
£750,000 in sovereigns, and exported £2,000 in
sovereigns. On Thursday the Bank exported £5,000
in sovereigns and bought £765 in gold bars.
At the Port of New York the gold movement for
the week ended April 1, as reported by the Federal
2455
Reserve Bank of New York, consisted of imports
of $6,220,000, of which $3,851,000 came from Argentina, $1,981,000 from Mexico, and $388,000
chiefly from other Latin American countries. There
were no gold exports and no change in gold earmarked for foreign account. In tabular form the
gold movment at the Port of New York for the
week ended April 1, as reported by the Federal
Reserve Bank of New York, was as follows:
GOLD MOVEMENT AT NEW YORK, MARCH 26-APRIL 1.
Imports.
Exports.
$3,851,000 from Argentina.
1,981,000 from Mexico.
388,000 chiefly from other LatinNone
American countries.
$6,220,000 total.
Net Change in Gold Earmarked for Foreign Account.
None
The Federal Reserve Bank reported that $7,150,000
gold had been received at San Francisco during the
week, of which $6,602,500 came from China and
$548,000 from Japan. Canadian exchange continues at a discount. On Saturday last Montreal
funds were quoted at 3-64 of 1% discount, at which
rate it remained for every day of the week except
Thursday, when Montreal funds were 1-32 of 1%
discount.
Referring to day-to-day rates, sterling exchange on
Saturday last was dull and inclined to ease. Bankers'
sight was 4.85%@4.85%; cable transfers, 4.857
/
8@
4.85 29-32. On Monday sterling opened off. The
range was 4.85%®4.85% for bankers' sight and
4.85 27-32@4.85% for cable transfers. On Tuesday exchange again opened off, but comparative
firmness developed with trading. Bankers' sight
was 4.85 9-16@4.85%; cable transfers 4.85 13-16®
4.85 8. On Wednesday exchange turned up sharply.
The range was 4.85%®4.85% for bankers' sight and
4.85%@4.86 for cable transfers. On Thursday, the
market was firm. The range was 4.85 11-16®
4.85 13-16 for bankers' sight and 4.85 15-16®
4.85 31-32 for cable transfers. On Good Friday there
was no market in London. The quotations ruling in
New York were 4.85%@4.85 13-16 for bankers'
sight and 4.85 15-16®4.86 for cable transfers.
Closing quotations were 4.85% for demand and
4.85 15-16 for cable transfers. Commercial sight
bills finished at 4.85% 60-day bills at 4.83%; 90-day
bills at 4.823j; documents for payment (60 days)
at 4.83%, and seven day grain bills at 4.853.
Cotton and grain for payment closed at 4.85N•
Exchange on the Continental countries is dull and
irregular and for the most part giving indications of
ease. During the early part of the week the exchanges were under the influence of month-end
shifting of funds and the dullness of trading also
reflected the approach of the Easter holidays. German marks, while comparatively firm, show a slight
recession from the higher quotations of the past
few weeks. An important development in mark
exchange during the week was a small transfer of
gold from Paris to Berlin, amounting to about
$1,000,000. This is the first shipment of the metal
which has been made from France since last July,
when gold was moved to Holland. Cable advices
from Paris on Wednesday stated that this small
shipment of gold was evidently a triangular transaction involving cross rates between London, Berlin,
and Paris. For some days previously marks had
been strong against both francs and sterling, but a
sudden appreciation of sterling against marks, said
2456
FINANCIAL CHRONICLE
to be due to German debt payments, is believed
to have shut off the possibility of further shipments
for the present. The shipment has another angle
of significance in that it is a tangible bit of evidence
of the restoration of confidence in Germany, which
was so badly shattered early last fall at the time
of the elections. German circles particularly are
pleased that the gold should have moved within a
few days following the "rule by decree" which
was put into effect over the week-end and which
at first was severely criticized in radical circles and
feared among the conservatives lest it conceal a
danger point. Since then the realization has become
fairly general that the Government has adopted
this method of insuring its power against radical
disturbances so that the program for economic rehabilitation may be followed with minimum interruption.
It will be recalled that last autumn there was a
wholesale flight of capital from Germany, when
the political future was clouded, leading to substantial shipments of gold to France and leavy losses
of "devisen" or foreign exchange, as the Reichsbank
was obliged to give its support to mark exchange.
The Reichsbank was compelled then to raise its level
of rediscount to 5% on Oct. 9, despite the fact
that the general downward movement among other
central banks of issue had not yet come to an end.
The Reichsbank rediscount rate has ever since been
out of line with other central bank rates. Such an
improvement, however, has since taken place in
the mark exchange situation and in the Berlin
money market that bankers are confidently looking
for a lowering of the Reichsbank rate to 4% shortly
after Easter. During the past few weeks especially,
foreign banks have been offering large quantities of
credit in Berlin. These offerings have come chiefly
from Holland, Switzerland, France, and Belgium,
and are partly responsible for the weakness in these
currencies. This week the Reichsbank shows an
increase in gold holdings of 37,250,000 marks, the
total standing on March 31 at 2,3234403,000 marks.
which compares with 2,495,931,000 marks a year
ago. The adjournment of the Reichstag until
October is considered a most favorable factor in
the German exchange and financial situation.
French francs have been irregular, with rather dull
trading throughout the week. As noted above, the
small shipment of gold from Paris to Berlin is
regarded as an outstanding factor bearing on both
exchanges and of course the outflow of gold from
Paris to London so far as the market can see is now
definitely at an end for the present. Nevertheless
the French bank's gold holdings are at record high.
In its statement for March 28 the Bank of France
showed an increase in gold holdings over the previous week of 13,557,000 francs, the total standing
at 56,116,439,000, compared with 42,556,853,000
francs a year ago and with 29,935,000,000 francs
reported in the first statement of the Bank of France
following stabilization of the franc in June 1928.
Italian lire, Belgian belgas, and most of the other
Continental currencies are ruling easier, but largely
owing to the practical cessation of business in these
countries during the period of Holy Week. Belgas,
however, are partly easier owing to sympathetic
relation of Belgian financial operations with the
movement of French francs. In Tuesday's trading,
belgas as quoted in New York made a new low for
the year when cable transfers were quoted at 13.9031.
http://fraser.stlouisfed.org/
1
Federal
Reserve Bank of St. Louis
[you M.
The weakness of belgas was due in part to the
transfer of Belgian funds to the German market.
Bucharest is one of the minor exchanges in the New
York market, but interest attaches to the unit this
week owing to the fact that the Rumanian National
Bank reduced its rate of rediscount on Tuesday
1% to 8%.
The London check rate on Paris closed at 124.21
on Friday of this week, compared with 124.17 on
Friday of last week. In New York sight bills on the
French centre finished at 3.913g, against 3.91 1-16
a week ago; cable transfers at 3.913I, against
3.91 3-16, and commercial sight bills at 3.91, against
3.90%. Antwerp belgas finished at 13.903 for
checks and at 13.91 for cable transfers, against
13.9131 and 13.92. Final quotations for Berlin
marks were 23.803/i for bankers' sight bills and
23.81 for cable transfers, in comparison with 23.833/z
and 23.84. Italian lire closed at 5.233' for bankers'
sight bills and at 5.23 11-16 for cable transfers,
against 5.23% and 5.23 15-16. Austrian schillings
closed at 14.06, against 14.053.i; exchange on
Czechoslovakia at 2.963'g, against 2.963.1; on
%; on Poland at
Bucharest at 0.59%, against 0.593
at 2.51%,
Finland
11.20, against 11.20, and on
1.29 5-16
at
closed
exchange
5 . Greek
against 2.51%
cable
for
9-16
1.29
at
and
for bankers' sight bills
transfers, against 1.29 5-16 and 1.29 9-16.
Exchange on the countries neutral during the
war is dull and irregular, influenced largely by the
same set of circumstances as affect sterling and
the Continental exchanges. Exchange on Stockholm,
Switzerland, and Holland is ruling fractionally easier,
owing largely to the withdrawl of German funds from
these centres and to fresh offers of credit to Germany
by these markets. A dispatch from Amsterdam on
Tuesday was to the effect that the Bank of The
Netherlands has ceased the issue of gold coin to
prevent "fraudulent exports." The foreign exchange market was greatly interested in the report,
but no details are available. It is not probable,
however, that the decision of the Bank will have
any adverse effect upon the exchange, as it appears
to be purely an internal matter and metal will be
available for legitimate export whenever the guilder
rate goes to the gold point.
Spanish pesetas are firm. The firmness has been
marked since the announcement last week of a
$60,000,000 banking credit. One of the favorable
factors in the situation is the fact that market for
the exchange is very quiet and little speculation is
taking place. From the financial point of view,
the chances of success of stabilization appear good
and the market is impressed by the fact that the
Bank :for International Settlements is lending its
co-operation. There is one angle, however, which
does not meet with general approval . Advices from
Paris state that it is understood that Spanish sentiment does not favor free shipment of gold for exchange purposes. On the other hand, it is pointed
out that in addition to the $60,000,000 credit the
Bank of Spain has 0,000,000 gold deposited with
the Bank for International Settlements, which is
being held in the vaults of the Bank of England
and which can be used to supplement the credit.
Cables from Paris comment on the fact that the
British banks did not participate in the credit, as
London has steadily maintained that Spanish gold
reserves, the fifth largest in the world, are ample
APRIL 4 1931.]
r.A.N7
FINANCIAL CHRONICLE
for currency stabilization. The Spanish holdings
amount roughly to $483,000,000, and are exceeded
only by the United States, France, England, and
Germany. On Feb. 28 the Bank of Spain reported
gold in hand of 2,415,772,210 pesetas and notes in
circulation of 4,688,896,775 pesetas. In addition
to gold, reserves are also held in silver and foreign
exchange. On that date silver holdings were valued
at 713,020,284 pesetas and foreign bills at 112,588,459 pesetas.
Bankers' sight on Amsterdam finished on Friday
at 40.073 against 40.07% on Friday of last week;
cable transfers at 40.083j against 40.093 L, and
commercial sight bills at 40.05 against 40.05. Swiss
francs closed at 19.23%
3 for bankers' sight bills and
at 19.243.1 for cable transfers, against 19.24 and
19.243/
2. Copenhagen checks finished at 26.74 and
cable transfers at 26.75, against 26.743/i and 26.753/2.
Checks on Sweden closed at 26.76 and cable transfers at 26.77, against 26.78 and 26.79, while checks
on Norway finished at 26.74/
1 and cable transfers
at 26.753/2, against 26.75 and 26.76. Spanish
pesetas closed at 11.00 for bankers' sight bills and
at 11.01 for cable transfers, against 10.863/2 and
10.87%.
improvement in China and given a stable Government, a more prosperous China would soon revive
the demand for silver. Altogether he does not
regard the silver position as so hopeless as many
suggest. The Federal Reserve Bank of New York
reported that approximately $7,150,000 of gold was
received at San Francisco during the week, of which
$6,602,000 came from China and $548,000 from
Japan. China has been shipping gold since March
last year, but the current shipment is by far the
largest and represents a Government transaction the
exact nature of which has not been revealed. Thus
far this year receipts of gold from China on the
Pacific Coast have been much larger than from
Japan, amounting to $10,818,000, compared with
$15,704,000 for 1930, while Japanese receipts totaled
but $3,082,000, against $150,928,000 last year. Closing quotations for yen checks yesterday were 49.34@
4932, against 49.34@4932. Hong Kong closed at
24%@24 11-16, against 253.@25 7-16; Shanghai at
31%, against 32%@329'; Manila at 494
7 , against
49%; Singapore at 56 3-16@56 7-16, against 56 5-16
@56 7-16; Bombay at 364,
3 against 363 and Calcutta at 3631., against 3631.
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
MARCH 28 1931 TO APRIL 3 1931. INCLUSIVE.
Exchange on the South American countries
presents no new features from the past several weeks.
Noon Buying Role for Cable Transfers in New York.
Value in United Males Money.
All the South Americans are especially dull this Country and Monday
U.S.
Mar.28. Mar.30. Mar.31. Apr. 1. Apr. 2. Apr. 3.
.week, as the Easter holidays are prolonged in these
EUROPE2
2
$
a
$
countries. Argentine pesos are firm owing to the Austria.
2
se:1111112g
140571
140567 .140556 .140573 .140572 .140584
Balu4um, belga....
.1391'22 .139026 .139037 .139022 .139032 .139025
confidence inspired by the new government through Bulgaria,
lev
007200 .007169 .007169 .007158 .007180 .007169
krone 029630 .029625 .029628 .029027 .029626 .029623
shipments of gold to New York and London for the Czechoslovakia,
Denmark, krone
267494 .267455 .267481 .267447 .267476 .267487
pound
support of peso exchange. As noted above, $3,- England,
4 854781 4.858109 4.858359 4.859218 4.859453 4.859111
sterling
025182 .025174 .025173 .025173 .025175 .024180
markka
851,000 gold was received at New York during the Finland.
Frans., trans
039113 .039123 .039112 .039130 .039119 .039119
Germany, reichsmark .238327 .238164 .238260 .238163 .238964 .238058
week from Argentina. Other substantial shipments Greece, drachma
.012941 .012042 .012942 .012946 .012940 .012945
400873 .400863 .400891 .400316 .400842 .400840
Holland. guilder
are known to be on the way. The present shipment Hungary.
174349 .174347 .174329 .174418 .174354 .174382
pengo
Italy. Ora
052378 .052369 .052375 .052367 .052363 .052364
makes a total of about $27,225,000 that the provi- Norway. krone
267534 .267495 .267525 .267506 .267545 .267538
POLIIIIII.
.111959 .1111)55 .111994 .111918 .111900 .111885
sional government has authorized the Banco de la Portugal.zloty
.044785 .014754 .044754
escudo
044608 .044754 .044754
005947 .005943 .005915 .005945 .005943 .005941
leu
105854 .109152 .109016 .109392 .109812 .109945
peseta
Nacion to ship for the defense of exchange this year 8p581,
Sweden, krona
.267811) .2671162 .267765 .267665 .267700 .267704
franc__ .192411 .192357 .192:198 .192360
192393 .192390
pending the reopening of the Conversion Office and SwItztwiand,
Yugoslavia. dinar- .017583 .017574 .017565 017584 .017579 .017584
aslathe restoration of free gold conversion. Brazilian China
tad.....- .333125 .331041 .332708 .324375 .321875 .321458
exchange continues to be nominally quoted and to Charon
Hatikow tael
.327:143 .324843 .326718 .318593 .316093 .315781.
.320357 .31758o .3I 9285 .310892 .308214 .307500
utel
sag sharply. Owing to the severe drop in Brazilian Shanghai
Tientsin 15c1_ ___
.336875 .334791 .336041 .328125 .325625 .325208
wig Kong dollar
.250714 .2414660 .250178 .245000 .242142 .242142
exchange, prices and business in Brazil are demora- IIMexican
dollar__ .._ .231250 .228750 .230312 .225312 .223437 .221875
Tlellirlill or Pelyang
lized. Peruvian sols show an improvement over
dollar
235000 .232043 .234166 .228333 .226666 .226250
Yuan dollar
.231666 .228750 .230833 .2251100 .223333 .222916
recent weeks, although it became known last week India,
rupee
.361395 .3111012 .3131262 .360875 .360841 .360841
Ja0an, yeti
403540 .49:4490 .4935:44 .49:1540 .49.4565 .493484
that Peru would default the April 1 interest and Singalvme(8.8.)dollar
.560625 .560375 .560025 .560441 .560441 .502441
ts:()ItTli A NI Elt.sinking fund payments on the National Loan 6% CRIIIIIIII. dollar
.999521 .999563 .999526 .999540 .999586 .999827
peso
999296 .999218 .999218 .999335 .999593 .999593
bonds. Argentine paper pesos closed at 34 11-16 Cilba,
Mexico, peso
475668
475666 .475366 .475660 .476033 .475666
Newfoundland. dollar .997000 .99703: .997078 .997000 .997156 .997171
for checks, against 34 11-16 on Friday of last week 80113'11 ANIER.antontina, peso (gold) .769932 .790163 .789954 .790195 .790133 .789831.
3 . lirits11,
.074916 .073875 .075512 .073025 .073527 .073687
'Mirka
and at 34% for cable transfers, against 34%
(Idle. peso
12(.569 .120605 .120565 .1211373 .120375 .120572
PrInplay. now
.720166 .715504 .716194 .713978 .714761 .714761
Brazilian milreis are nominally quoted 7.45 for Colomnia.
nem
.965700 .965709 .965700 .965700 .91147:31 .965700
bankers' sight bills and 7.50 for cable transfers,
against 7.45 and 7.50. Chilean exchange closed at
The following table indicates the amount of bul12 1-16 for bankers' sight bills and at 123/
8 for
lion
in the principal European banks:
cable transfers, against 12 1-16 and 123/
8. Peru
at 28.45, against 28.35.
Apr. 3 1930.
Apr. 2 1931.
RUmanla,
Banks of
Gold.
Exchange on the Far Eastern countries is uncertain and irregular owing to the movement of
silver prices. According to a London dispatch of
March 27 the recent break in the price of silver was
due principally to the fall of Chinese exchange and
the consequent sales from China. The fundamental
conditions in China remain unchanged. Sir Montague
Turner, Chairman of the Chartered Bank of India,
who speaks with authority on Eastern business
affairs, said last week that there is undoubted
England.. 145,387,187
France a__ 448.931.518
(d)
Germany 105.788300(c) 994,60
Spain
96.722.000 28,390,
Italy _
57.385.
Netherrds. 37,167
2,853
Nat. Bele_ 40.981
Switzerrd. 25,717
Sweden__ 13.340
Denmark
9,547
Norway _ _ 8,134,
Total.
Gold.
Silver.
Total.
157,125,492
145,387,18 157.125,4
340,406,829
(d)
448.931,518 340,406.82
994.600118.301,750
106.783.000 117.307,15
28.418,000127.147,000
125.112,000 98.729,0
57,385.000
56,131,000
40.020,000 35.981,000
35,931,000
40,931.000 33.733,000 1,288.000 35,021,000
25.717.000 22,439,00
716,000 23,155,000
13,340.000 13,543,
13,543,000
9,547,000 9,574.000
398,000 9,972,000
8,145,000
8,134.00
8,145.000
Total week989,100,105 32,237,6001021337705893,114.471 31.814.600924,929,o71
Prey. week 986,034.805 31,996,6001018031 405892.197,40 31,823.600, 92,021,004
a These are the gold holdings of the Bank of France as reported In the new form
of statement. b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year Is £10.381.900. c As of Oct. 7 1924.
d Silver Is now reported at only a trifling sum.
2458
FINANCIAL CHRONICLE
[Vox.. 1.62.
to restore the purchasing power of agriculture in
Wheat As an International Issue—The
Europe was through the adoption of preferential
Conference at Rome.
The World Wheat Conference which has been tariffs, and he accordingly urged the overseas promeeting at Rome 'under the auspices of the Inter- ducing countries to waive the most-favored-nation
national Institute of Agriculture brought together clause in their commercial treaties with Europe.
representatives of 46 nations or dominions. The They would still, he thought, derive an indirect
United States, which has recently withdrawn from benefit, since if the price of wheat in the Danubian
membership in the Institute, was not officially rep- countries were raised, those countries would export
resented, but representatives of the National Farm- less and overseas countries might sell more. The
ers' Union and the American Wheat Growers' Asso- head of the Russian delegation declared that Russia
ciation were present and took an active part in the was opposed both to preferential tariffs and to
proceedings. The presence of a Russian delegation acreage reduction. Because of the different system
was peculiarly significant because of the position prevailing in Russia, the world economic crisis was
which Russia occupies at the moment in the pro- not felt in that country, but so long as Russia had
duction and export of wheat. The particular object to provide for the needs of a great population and
of the Conference, aside from a general discussion at the same time export large quantities of wheat to
of the world wheat situation, was to consider the pay for machinery and other goods imported from
possibility of so regulating the production, consump- Western nations, it could not consider a reduction
tion and distribution of wheat as to relieve the wheat of acreage.
The suggestion of preferential tariffs was strongly
growers from the difficulties which they are in as a
result of extraordinarily low prices for their prod- repudiated by Dr. Perez, Argentine Ambassador at
uct,and to protect producing countries from the evils Rome, who saw in the present crisis one of the consequences of the World War, and who resented the
of dumping.
It had become apparent, several days before the idea that the overseas wheat countries should be held
opening of the Conference on March 26, that two op- responsible for it. The Russian competition, which
posing views of the policy that should be followed was a factor to be reckoned with, was due, he
would be presented in the discussions. It was urged, thought, not to dumping or unfair price-cutting, but
on the one hand, that the only way to relieve the to the fact that Russia has got rid of the middleman,
glut in the wheat market and bring back something but he also found a reason for the present crisis in
of stabilization in prices was to limit production. the extreme protectionist policies of European
Those who opposed this view championed the policy States. The Rumanian Minister of Agriculture, on
of increasing consumption, partly by enlarging the the other hand, went so far as to warn the delegates
use of wheat and partly by developing new markets that unless the overseas producing countries waived
or better methods of distribution. It was these two their most-favored-nation privileges and permitted
ideas that dominated the Conference. A review of the Danubian countries to set up preferential tariffs,
the arguments pro and con that were advanced dur- Europe might unite in excluding overseas wheat
ing the sessions affords an instructive view not from its markets. The Australian spokesman
merely of the 'world wheat situation, but also, and ranged himself with the opponents of tariff prefermore particularly, of the attitude of various produc- ence, while the head of the Canadian delegation
pointed out the impossibility, in any democratically
ing or consuming countries towards it.
country, of enforcing a reduction of
organized
the
Conference,
Premier Mussolini, in opening
pointed to a better organization of
and
acreage,
Conference
the
committing
urged great caution in
means of obtaining useful results.
a
as
marketing
He
acreage.
wheat
of
reduction
a
of
to advocacy
If the debates did not succeed in harmonizing difexpressed the hope (we make use of a summary of
his address as reported in the New York "Times") ferences, they nevertheless did something to clear
"that an abundance of grain might not in the future the air. It was evident, from what was said, that a
weigh on peoples as a curse, but would be a reward restriction of wheat production could not very well
for patient and earnest toil." Only after all the be advocated at a time when millions of people were
elements in the situation had been examined, he suffering from lack of food; that Great Britain and
said, should "action on a large scale" for a reduc- other countries which must rely heavily upon imtion of acreage be undertaken. It was possible, he ported wheat would not support a reduction proadded, that "such an 'extreme measure' may be re- gram ; that overseas producers were not disposed to
sorted to provided it does not apply to countries in curtail production in order that Europe might use
which high wheat production is maintained by means more of its own wheat or that prices might be stabilits low-cost production,
of technical improvements in agriculture without ized, and that Russia, with
might be made. Since,
that
plan
any
a
to
was
menace
increasing the area sown in wheat," but he made
go on at whatever
apparently
must
production
then,
clear his opinion that it would not do to talk of
adopt, the only
to
might
choose
country
rate
any
the
restricting production when so many people in
wider
a
and better disdevise
to
was
alternative
Moredistressed.
world were poverty-stricken and
surplus.
the
absorb
and
tribution
depression
world
present
over,if it was true that the
The measures approved by the conference on
was largely of agricultural origin, it was equally
deal mainly with this alternative. PubThursday
business
in
improvement
any
that
true, he declared,
in
favor of a larger use of wheat in breadwould aid agriculture—an intimation, apparently, licity
countries, and of its introduction into
consuming
that the wheat crisis must be viewed in the light of
as in China, it is not now much
where,
countries
the general economic situation in the world, and not
the recommendation being
recommended,
used,
was
merely as an agricultural problem.
suggestion
that the existing surthe
by
accompanied
The speakers at subsequent sessions succeeded in
at
low prices. Reducvery
China
plus
be
in
offered
question.
emphasizing sharply both aspects of the
at all, must be
accomplished
if
acreage,
of
tion
for
spoke
The head of the Jugoslav delegation, who
a
persuasion
and
study
of market
through
sought
way
only
the
the Danubian countries, declared that
711111wAPRIL 4 19311
FINANCIAL CHRONICLE
conditions, but without government compulsion. A
system of agricultural credits based upon short-term
loans was also advocated, the recommendation being
confined to short-term loans in order to avoid conflict with a plan for longer loans which the League
of Nations is elaborating. The subject of preferential tariffs was left for negotiations between the
various countries interested. Finally, another conference,to meet at London in May, was proposed, the
conference to be representative of producing countries only and to consider methods of dealing with
the present carryover stocks and the disposition
the next harvest.
The most important fruit of the Rome Conference
was its exposure of the underlying difficulties of the
world wheat problem. Between the countries which
produce wheat in quantities sufficient for export,
and those which depend upon imported wheat for
an important part of their food, there appeared a
gulf which the Conference was unable to bridge.
Neither Canada,nor Australia, nor the United States
(the latter unofficially) showed any willingness to
modify their commercial treaties so as to give to
European wheat growers a larger share of the European wheat market, nor were either of those overseas countries disposed to accept responsibility for
the depressed wheat situation in Europe. Government intervention, that sovereign remedy with many
persons whenever any part of the economic machinery works badly, appears to have been dismissed as
out of the question, as well as it may have been when
the failure of the grandiose efforts of the American
Farm Board is examined. The only recourse that
seems to have commended itself to the assembled
delegates was the development of a demand for
wheat in countries where the demand at present is
small or virtually non-existent, better marketing
arrangements, and the extension of credit to farmers
to enable them to hold their crops through periods
of exceptionally low prices. The latter device is
hardly commended by the experience of the United
States, but the credit plan upon which the League
of Nations is at work appears to contemplate only
temporary aid to land banks until such time as they
can manage the business alone.
The Conference is not without interest because of
its bearing upon the question of a European union.
The Briand plan of a United States of Europe, it
will be remembered, looked to a union of all the
European States, except Russia and Turkey, for
general political as well as economic purposes. Since
that plan was announced, the obstacles to political
union have loomed larger than M. Briand appeared
to think they were at the time, and the proposed
union seems now to have been relegated to the future.
Meantime, however, the idea of regional economic
unions has grown. Within the past year we have
had a conference of the Baltic States and another
of the Balkan Powers, each concerned with the improvement of agricultural and trade relations between the nations represented. The proposed AustroGerman customs union represents a still more concrete movement in a similar direction. The Rome
Conference found difficulty in separating world interests from European interests, but the reports of
its discussions and proceedings indicate clearly that
the European aspects of the wheat situation bulked
increasingly large as the discussions went on. It is
entirely possible that the London conference in May,
especially if it restricts itself to the question of the
2459
disposition of surplus stocks, may draw the lines
still more narrowly. If it does, and if it sets its face
firmly against the encouragement of governmental
intervention as a means of determining how much
wheat shall be raised or at what prices it shall sell,
it may help in solving in the European sphere an
economic problem which other countries differently
situated may be encouraged to attack in their own.
The Branch-Banking Crusade.
Leading off in "Harper's" for April is an article
by J. M. Daiger entitled "Bank Failures: The Problem and Remedy." Mr. Daiger, we learn in the
magazine, "is a former newspaper correspondent
who has been interested since the war in the public
relations of investment houses and banks, interpreting them to the public and the public to them."
Perhaps no better key to the substance and tenor
of this article can be given than to quote the following paragraph, which is taken from its concluding
section: "Since the Comptroller began to bring the
subject of bank failures into the light of clay tw'o
years ago, many things have occurred to dispose all
of us to face unpleasant facts more resolutely, and
to devise ways to avoid in future some of the colossal
wastes of the post-war years—wastes that have
wiped out,first in agriculture,then in industry, commerce, and finance, nearly all the gains of our years
of prosperity. Our banking system is out of joint
if it dooms such a large proportion of our banks to
failure, and if it deprives one of our major pursuits,
agriculture, of the banking facilities which are essential to its recovery and orderly progress. No other
banking system in the world does these things, and
that we permit ours to do them makes a mockery
of our boasted leadership in world finance. In the
management of our banking affairs in the interior of
our country we have done very badly. We have clung
to a system of little banks and amateur bankers that
cannot succeed under the present economic order,
and that it is plainly futile for us to attempt to perpetuate. Of what ultimate value are the vaunted
individualism and independence of our country
banks if they are only free to fail?"
Two remedies for the terrible state of affairs presented in this article occur to its writer, namely,
the peremptory conversion of all State country banks
into Nationals to become thus members of the Federal Reserve, or, if remaining under State charters,
still to join that system; or, and better, because
feasible under an Act of Congress, the establishment of nation-wide branch banking for banks of
over a million capital according to, or within, arbitrarily defined "trade areas." In a word, Comptroller Pole's plan. As we read this article we seem to
discover considerable bias. Ostensibly, the writer
puts himself in the place and attitude of the individual depositors—the public. He cites and stresses
the large number of bank failures in the last 10
years. He does not in direct and positive terms
point out the underlying truth that it was the World
War and its aftermath which caused communities
to fail and thus compelled the closing of many of
the unit banks. He laments the condition of agriculture, seeming to imply that it is largely due to
some lack in our "banking system" and forgets to
mention the creation of the Federal Land Banks and
the Intermediate Credit Banks which were devised
and established specially in the interest of the farm-
2460
FINANCIAL CHRONICLE
era during this period. He lauds the Canadian system as proof against failures.
We do not know what course this agitation will
take in the next Congress, after the current investigations are reported, but we do know that our State
banks will not suffer themselves to be eliminated
without a struggle. Nor should they, in the interest
of the people, for underneath it all is the undeniable
facts that banking is a common law right, and the
freedom of credit to issue out of business transaction, large and small, to combine and divide, of
supreme importance to both people and government.
In one place this writer sees the individual unit bank
of national scope and significance, but in the end he
visualizes a strong concentrated system which would
unify, strengthen and combine them all by making
them branches of a few great central banks. He
adds nothing to the force of his argument by belittling the "country banker". This banker is something more than an "amateur". His bank may be
"little", though theoretically it may be as strong,
in proportion, as the strongest. Nor is it true that
the small bank is wholly lacking in diversity of loans
unless the community it serves is lacking in business
interests. The country bank has not the wide sweep
of the metropolitan bank, but it serves all classes of
individuals that live and work and want around it.
The old independent unit and correspondent banking system of combined State and National banks
served us well up to and including the war (giving
due repute to the Federal Reserve Regional Banks
and the accompanying flexible currency), and did
not cause the debacle of our present depression.
This is a reversal of the natural order. The "depression", gathering force unawares for many years
after the war, accompanied by a belief in a false
prosperity, accentuated by an "orgy" of speculation
and "fast living", prepared the way, and at least
indirectly caused the rush of small bank failures
of the last few years. Nor do we believe that these
interior small country banks, despite the percentage
statistics cited, have been slowly starving to death
for want of profit incomes. Having become entangled in war-time inflation, they have been all the
while paying losses incurred by over-faith in socalled prosperous conditions. The thing to do with
these statistics is to make them show the cause and
amount of these continuing losses and not attribute
the dwindling profits to the inherent inability of
the small country bank to realize a normal return
on its small capital and small overhead.
We contend, as we have frequently before, that a
"trade area" is almost impossible of definition and
location. It is possible officially to declare and
bound it. But trade and industry in the United
States are constantly changing in extent, direction
and service. It is said the Regional Banks were
forcibly located and their respective territories
bounded, but that did not restrict the natural operations of a single member bank, the tentacles of which
overreached and ignored these boundaries. Nor
can any energetic bank's business be so confined.
In a clearing house sense, the exchange of checks,
these trade area banks may serve a good purpose in
bringing together regions or "areas" of trade. But
"business" worms its way into remote places by its
own energies and ignores all lines, State and Federal. This "trade area" argument seems to be only
a way of getting around State law restrictions, and
plays into the hands of the proposal to make all
[Vori. 132.
country banks come under national control. Take
any point in Missouri, Iowa, Illinois, to go no further, is it not in the "trade area" alike of St. Louis,
Chicago, and Kansas City?
As to arguing in the interest of the people, if they
want this "doubled and twisted" system of allNational banks why do they not make it known?
If they want a branch banking system modeled on
that of England, Scotland and Canada, why do they
not petition for it? We fail to discover any indication that they desire to rest their credit needs upon
permission coming down from the power ultimately
to be concentrated in New York City. Reference is
made to the judgment of Mr. Wiggin and Mr. Traylor as to "what to do". If we read their utterances
right, neither is in favor of the abandonment of the
unit bank and its correspondent allegiance. We
repeat—it is not the old "system" that is responsible
for these thousands of small bank failures (if they
were worthy they could get all the credit and money
from their city correspondent, ofttimes a member
of the Federal Reserve and entitled to all its benefits), it was the times and conditions that prevailed.
Communities left wholly without any bank were
not many. And it is much to be doubted these few
would now welcome a mere branch rather than their
own bank!
California in its banking needs is no criterion for
the other States of the Union. True, its citrus fruit
industry, organized into co-operatives, at times, is
in need of more credit than a local bank can supply
—but that credit can be secured, and was secured,
without a branch bank system. There are still many
successful unit banks there. And the present system
of branch banking is not so much a response to the
wants of the people as a result of the pressure for
extension by a few enterprising bankers. And there
are even in that imperial State critics of branch
banking. No, the people are not pushing forward
this movement. The largest bank failure in history
recently, in New York City, was hastened, if not
augmented, by reason of 59 branches which proved a
weakness.
The people ought to be aroused by this crusade
for branch banks. As the article we are discussing
intimates very truly, the people are the element most
affected, not the big bankers. And even here we
foresee many difficulties to the establishment of
branch banking by "trade areas" over the nation.
The great banks of New York, if we mistake not, by
this system will find their natural national scope
and influence impeded and interfered with by the
artificial establishment of "trade areas" that are
arbitrary and must cut across normal lines. But
branch banking has not come, and will not come,
without a contest between States and nation. (lc\
. Qin‘
(Wik
Wheat and the Farm Boar
Seemingly, the "staff of life" has become the staff
of death—to men and nations. In 1930 there was a
world surplus of this cereal, wheat, which supplies
mankind with white bread. This year promises another surplus in the United States and in other
wheat-raising countries. Yet in America prices are
low, and in China millions are starving. We talk a
great deal about how close-knit, how "small", the
world is, but its peoples are widely sundered, and
their industrial and commercial activities separated
and inharmonious. Agriculture is fundamental,
despite attempts to show that in our modern corn-
APRIL 4 1931.]
FINANCIAL CHRONICLE
2461
pies civilization manufacture is first. Wheat, white the United States. Digest these figures—in 1929
bread, to all advanced peoples, is a prime necessity, the value of exports to foreign countries from contithough rice is food for a much larger part of man- nental United States totaled $5,145,316,000, and our
kind. Corn is food for man and beast, but in the imports from foreign countries amounted to $4,251,continent of Europe is less used for bread than in 530,000. In that year the value of wheat exported
the United States. On the Grain Exchange wheat by us is placed at $111,501,000 and wheat flour at
heads the list. And because in our own country we $80,789,000. :Nov, as is well known, the appropriahave a tremendous terrain naturally adapted to tion made to this Farm Board to increase these
the production of this valuable cereal it has come meager sales, either at home or abroad, was $500,to stand as the chief exponent of farming. Thereby 000,000—first $250,000,000, then $150,000,000, now
hangs a tale.
in July $100,000,000. What has this Board done?
During the World War, because of interrupted Bought in the home market and stored, according to
shipping and the backing up of wheat crops in Can- latest figures, around 275,000,000 bushels at prices
ada, Australia, and Russia, because of increased ranging from $1.25 to 75c., in round numbers, with
consumption by the millions of non-producers en- wheat selling below these prices, to-day threatening
gaged in that horrid though heroic struggle, and to go to 50c. on the advent of the new crop, and
because of the power of the United States to "peg even lower.
the market", wheat rose to the price of $2.20 per
Part of these purchases are believed to be in
bushel, guaranteed by the Government. Acreage in options. Perhaps this dickering on the grain exthe United States increased. For this and other changes did give the farmer a higher price, but a
war reasons land values, all farm values, attained loss is inevitable, and every dollar of this loss comes
unheard-of proportions. Inflation, following the from the taxpayers' pocket. The farmer has been
armistice, came upon "overproduction". Deflation given a subsidy. Surplus at home and surplus
caught the farmer unaware. Riotous speculation in abroad, people in remote countries starving, prices
stocks and bonds, "the longest bull market in his- falling, falling—and the Board stops buying! It
tory", deceived the people into a belief in perpetual never had a chance to succeed! Let us look from
prosperity. The "smash" came in the fall of 1929— another standpoint of supersalesmanship. Accordall trade and industry suffered, but the farmer suf- ing to 1930 estimate of the International Statistical
fered most of all. Wheat and the farmer became Institute of the League of Nations there are now
synonymous. In the clamor of popular discussion, more than 2,000,000,000 human beings on the earth,
wheat and the farmer being one, "farm relief" be- divided by continents as follows: Asia, 950,000,000;
came a political question. Yet wheat values con- Europe, 550,000,000; the two Americas, 230,000,000;
stitute a small percentage of the total value of agri- Africa,150,000,000; Australia, 7,000,000. Asia, with
cultural production in the United States!' Thereby its near billion, China and India, consume princihangs another tale that has disastrously affected pally rice; Africa has but a small population conthe whole world. The successful party in power, suming wheat. Europe and South America are our
aided by the emotional zeal of the opposing political principal buyers—continents that produce wheat.
party, and certain legislators who style themselves Australia especially, while in South America the
independents, enacted a law creating the Federal Argentine is susceptible, in a large way, to wheat
Farm Board.
raising. Canada follows the United States in producNo other Act in the history of Congressional legis- tion; Austria-Hungary in Europe, and Russia, the
lation, it is safe to say, has had such evil effect upon last now attempting vast co-operative farms and mathe economics of our own country and foreign coun- chine cultivation under the "five year plan" and trytries. It promised help to the farmers that it could ing to bolster Communism by exports. Where can we
not bestow. Originally intended to loan to co-opera- sell, and to whom? European countries in varying detive farmers' associations that they might better sell grees produce a minimum of wheat—and in Rome, as
their crops, especially wheat and cotton, it operated recently as Mar. 27, there was held an International
thus in constantly declining prices. Failing in this, Wheat Conference to try to regulate production,
it created a "stabilizing corporation", and by this largely by a proposed limitation of acreage, an immeans entered the markets direct,to peg prices above possible plan but the only one suggested by the Fedthose of the world markets, only to find itself the eral Farm Board.
possessor of huge stocks of wheat (and cotton) it
It has been suggested,looking to price of the 1931
cannot sell, save at a heavy loss, if at all; and now, crop in the United States, that the huge accumulaon the eve of the 1931 crop, is compelled to cease tion of the Federal Farm Board be made into flour
buying, unable to hold up or advance the low price, and shipped to the starving in China—or that it be
and unable to find storage for any addition to what destroyed. In 1919 the value of wheat exported by
it has already purchased. In a word, this Federal us was $424,543,000 and wheat flour $267,966,000.
Farm Board "bucked" the world in wheat and failed But we need deal no longer in statistics, for at best
egregiously. It was a foregone conclusion that it they only indicate general conclusions. TVheat, the
would fail. Let us look at a few figures that are "staff of life", has become at least a staff of political
reasonably reliable, though not of our own primary and economic death. Even with Russia entering the
compiling. The world's wheat crop in 1929 was European markets with increasing exports of wheat,
4,385,000,000 bushels; that of the United States in the peasants in that ill-fated country are eating
1929 was 806,508,000 bushels, valued at $840,921,000. black bread. There is no future foreign market for
The total value of crops in the United States, 1929, the United States, which has added confusion to
was $10,288,000,000, with animal products of trade by the enactment of inordinate tariffs.
No
$6,856,000,000.
government was ever made that could overcome the
In part, this Federal Farm Board emerged upon a law of supply and demand in the long run.
Egotistic
background of wheat overproduction throughout the farm organizations have caught at straws for relief
world, and upon a series of years of bumper crops in that cannot come. Politics has espoused
emotional
2462
FINANCIAL CHRONICLE
fictions to catch votes in elections. Sectional antagonisms have been created between "East" and
"West". Grain exchanges have rushed prices of
necessaries up and down—because the farmer and
wheat have become synonyms, denoting "hard times"
and "production costs" that exceed sale prices. Nor
can our government or any government by plea or
force compel the farmer to "lower his acreage",
though that will come in due timefrom naturalcauses.
What folly, then, in the face of facts to create
and attempt to operate a Federal Farm Board!
What more than folly to destroy by excessive tariffs
the little trade we now have with European countries! Yet wheat is nourishing food and bread is the
staff of life. But it is not of sufficient importance
in our economics and trade to justify the wrecking
of parties and to cause eventually a division of the
people. Furthermore, "debentures" paid on wheat
shipped out of the country may increase exports and
lift up domestic prices, but the taxpayers will pay
the bill, and no man dare say what the bill will
ultimately be.
To place a tariff tax of 42c. a bushel on wheat imported, to shut out Canadian and Australian wheat
tends to increase acreage. To retire 275 million
bushels from the domestic market by storage (out
of a total crop of about 800,000,000 bushels) tends
to increase acreage by increasing price. Distribution is the great leveler. Need seeks need; want
seeks want. But distribution depends on shipping,
upon distance, upon desires, upon racial peculiarities. The bonds of war debts destroy the freedom
of exchange. Governments, laws, conferences, are
all interferences to the natural flow. Wheat is a
commodity—like pig iron, oranges, automobiles.
Politics has given it undue prominence in the world.
Soils and seasons are indubitable factors in control.
But to elect a President on the issue of relief to
the wheat farmer is to campaign with pinwheels of
fire that fizz out in smoke.
Lower Prices fo • An hracite.
In keeping with the times the anthracite operators
and retail dealers have made greater concessions
than usual in spring prices of the larger sizes entering into household consumption, the reductions for
purchases made in April running from $1.25 on stove
and nut sizes to $2 per unit of 2,000 pounds on egg
size, a small concession being made on pea, but buckwheat is advanced.
It is not yet determined just what the monthly
scale of increased prices will be but by fall it is expected that prices which have been prevailing since
last fall will be restored.
April prices on the principal sizes are the lowest
which have been named since early in the war. Of
[VoL. 132.
the total reduction of $2 per short ton on egg coal,
the operators announce 98 cents as their share, and
of the reduction of $1.25 on stove coal the operators
assume $1.16 per unit as their proportion. They also
cut the price of pea coal at the mines 71 cents per
unit, which is nearly all lost to the consumer as the
dealers have cut the price of pea coal only 25 cents
per 2,000 pounds.. Pea coal is the size which the
producers rely upon as a competitor against gas and
oil as fuel and to promote the use of this small size
the use of automatic feeders has been widely advertised. The small decrease in the price of pea coal
would indicate that so much progress has been made
in the use of this size that its popularity warrants
but a small decrease in price when other sizes are
substantially reduced. Buckwheat size, used for
steam-making purposes by factories, is increased 25
cents.
The winter of 1930-31 has not been favorable to
the anthracite industry, demand from consumers being lessened by two unusual factors. Mildness of
temperature, during an exceptionally open season,
naturally reduced consumption and unemployment
imposed another restriction.
Enforced economy, caused by lack of earnings, has
compelled many families to shut off heat from most
of the rooms in their homes so as to conserve fuel.
At the same time the closing of mills and part time
operation have curtailed demand for the steam-making sizes of anthracite.
Production in 1930 dropped about 514% to 62,463,000 tons. There has been some increase in production during the first quarter of this year and
consequently some accumulation of stock on hand
which it is expected will be materially reduced during April because of the unusual opportunity to stock
up bins of consumers at the reduced prices.
Owing to the costs of transportation retail prices
will vary in different cities, but the new prices
named by leading Philadelphia dealers are: stove,
$12.75; nut,$12.25; pea, $9.75, and buckwheat,$7.75
per unit of 2,000 pounds.
The mine agreement entered into last August continues in force and is regarded as a stabilizer of
labor with mutual advantage to mine workers and
operators. Some of the companies, notably the Reading, have much improved their plants so that they
may be operated more economically. The effect of
this is illustrated by the report of the Reading Coal
& Iron Co. for 1930, which shows net earnings exceeding $1,000,000 compared with a loss in 1929 of
$793,076. Both the Reading and the Lehigh Coal &
Navigation Co. have bought common stock of the
National Power & Light Co. from a subsidiary of
which the coal operators will obtain electric power
for mining purposes.
Indications of Business Activityl
THE STATE OF TRADE—COMMERCIAL EPITOME. trade shows no sign of real revival. The production of steel
in many quarters is now not above 55%. The demand for
Friday Night, April 3 1931.
Business for the most part has been on a very moderate steel from the automobile industry has not come up to exscale where it has not been dull on the eve of the Easter pectations. The stock market has continued to decline, and
holidays. The weather has not been altogether favorable this certainly is more or less of a damper to the business world
for business either. Temperatures have been rather low for of the United States. Not that such a decline has any special
this time of the year. In the West it has been more or less ' significance. It is largely the reflectioh of the vagaries of
stormy and in the South abnormally cold. Over the cotton professional stock trade from day to day. Still it has had
country rains have been persistent and freezing weather has more or less effect on the commodity markets, including
penetrated well down into Texas. Frosts have prevailed grain and cotton. Cotton goods in the big Worth St. disin various other parts of the cotton belt. The iron and steel trict have been quiet and prices in some cases have been
1
APRIL 4 1931.1
FINANCIAL CHRONICLE
2463
lowered by both first and second hands. Wool has been firm Others think that this is merely a state of mind and that the
abroad but not in particularly good demand on this side. underpinning of the market as already stated shows no signs
The opening of Lake navigation is close at hand and it is of real weakness. Money was firm on Thursday at 1 %
something that may help business to a greater or less extent. in spite of the persistent importations of gold, circulation
The export demand for wheat has increased of late, but has not showing the usual increase in such circumstances, with
run mostly to Canadian products. The textile news from month-end accounts and bonus payments acting as a bar.
At New Bedford, Mass., fine goods mills are having a
New England in general continues to improve. More mills
are being re-opened at Fall River. New Bedford is doing a better demand than for a long time at better prices and are
larger business in fine goods than for some time past. When more nearly approaching a general basis of profitable operait comes to the woolen industry it seems to be another tions. Yarns show less improvement and ruling prices are
matter. It shows no great life or snap. The cotton textile reported generally below cost. Control of production and
industry is still in the van in this country, but of late it has the greater demands of the season are bringing about a better
slowed down somewhat. In Lancashire, cotton trade is condition of things. Confidence is expressed that such
more or less paralyzed by the situation in East India, where conditions will continue on a more profitable basis. Staple
Gandhi wants a tariff that will exclude foreign goods and spot goods have, it is said, almost disappeared, and there is
also wants the control of the army, finance, internal ad- no disposition to sell cloth on contract beyond what will keep
ministration—everything in fact. Meanwhile, Manchester the mills in operation at a rate around 65%. At Fall River,
is not selling many goods to Bombay or Calcutta; that is Mass., two more of the American Printing Co.'s cotton mills
plain enough. In the machine tool industry the mills are resumed operations with a full complement of help on
running on increased time. The weak link in the chain is Monday, the one remaining idle mill of the company's
the lack of any sign of positive improvement in the iron and cotton division now to be re-opened on Wednesday. The
five mills which employ a total of about 2,000 operatives
steel trade of this country.
Wheat has shown no marked change for the week. The closed last June. A strike followed the re-opening of one
old crop is up 3i to lc. and the new July is down about a of the units on March 1, but was called off upon the comcent. For the most part the export business has been slow, pany granting a slight increase in wages. The shutting
though during the last four days it seems the foreign pur- down of the five mills over so long a period is believed to
chases of Manitoba have reached anywhere from 3,500,000 have materially aided in bringing about the improved conto 4,000,000 bushels. But the weakness of corn, favorable dition in the print cloth market of the past month. Other
weather in the wheat belt and as a rule the apparent lack Fall River advices said that the week's business in the local
of any spirited export demand militated against anything cloth markets has been largely confined to voiles, marlike an improvement in the price. On the contrary the quisetts, pongees and lawns, although some trading has been
drift of the news has been against it. Crop advices have reported in wide and narrow odds of print cloth construction.
been favorable, foreign shipments large. But on Thursday, Moderate transactions were reported in a few standard styles
the ending was practically unchanged, for the technical of print cloths and tobacco cloths have sold in small volume
position was undoubtedly better. Everybody has been at full prices. Fall River also wired that at the Narragansett
bearish on wheat on the dullness of the export business Mills operations would be resumed next Monday morning
and the monumental stocks, together with the big shipments in a small way. It is planned to operate about 100 looms to
from Australia and Argentina. The wheat market, it would run out stock in process which remained when the plant
seem is bound to become oversold from time to time. Corn closed ten months ago. Whether or not the plant will conhas declined 2 to 3 cents at times under the influence of a tinue in operation following the running out of the present
rather dragging market in wheat, a lack of aggresive cash stock in process is undecided. The plant has 1,400 looms
demand and the fact that in the general estimation corn is and 55,000 spindles.
selling too high as compared with wheat. Oats broke badly
The Arkwright Corporation's No. 1 mill, which has been
at one time, but show only a fractional net decline for the shut down for the past two months will be operating, it is
week. Rye is somewhat lower with the trade dull.
said, on a full time day schedule within the next 10 days.
Cotton declined only 10 to 15 points, in spite of heavy Some machinery was started last Monday and the increments
liquidation, a decline in stocks, more or less depression in will be increased daily. There is no attempt to start night
grain and the lack of outside support. The things which operations. Boston reported a distinct upward trend in
have helped cotton have been the persistent trade buying, New England industry as a whole since Jan. 1. The first
calling by the mills, the gradual improvement in the textile quarter of 1931 was better than the corresponding period
industry, the short position of the market, and, above all, of 1930, allowing for seasonal influences. Textiles continue
the persistent trade demand. The decrease in the use of to improve, notably at Manchester, N.H. Mills throughout
fertilizers this season may reach 30 to 35%, but the decrease that State are distinctly more active. In Fall River several
in acreage has been estimated at 83,6 to 11%. Worth large mills have resumed operations. Lowell and Lawrence
Street and Manchester have been quiet, but there is un- mills are more active. At Lawrence, Mass., in the first
doubtedly a support under the market in the shape of trade quarter of 1931 showed manufacturing is about 30% ahead
buying, all the more insistent to all appearance from the of the corresponding quarter of last year and even 15% above
fact that there was so long a period of abstention from pur- production in 1929. The Pacific Mills have been working
chasing by trade interests.
on an automobile order for the Ford factory for some time.
Lard has declined some 15 to 20 points, reflecting some Many departments have been working all night, and workers
depression in corn and also lower prices for hogs. Coffee in other departments have been employed through the day
has advanced some 10 to 15 points with Brazilian prices of and until 9 o'clock at night, including Saturday, something
late better and shorts covering more freely. Sugar has unheard of in recent years. The print works are likewise
advanced 10 to 15 points in spite of the fact that Licht having a busy season, with many departments being kept
estimates the total acreage of beet root crop at 3,005,000 in operation every night until 9 o'clock. At Lowell, Mass.
against 2,950,000 acres last year. Cuban houses of late on March 30, Mill No. 1 of the Shaw Stocking Co., 92,075
have been buying and also Europe. The market had the square feet of vacant land, all mill machinery and the stock
appearance of being oversold, but the buying was limited on hand brought the sum total of $36,770 at auction.
for the most part to the covering of shorts. Rubber declined
At Montezuma, Ga., the Montezuma Knitting Mills, Inc.,
57 to 62 points, with the Malayan shipments much larger manufacturers of knit union suits, are now operating on a
than had been expected. Hides advanced 25 points and full-time schedule with order for an indefinite period. At
cocoa 10 to 12. Silk fell 8 points.
Moultrie, Ga., the Riverside Manufacturing Co., a unit
The stock market during the week had more or less of a of the Moultrie Cotton Mills, stated that the first three
dragging appearance, with frequent declines. On Thursday weeks of this month business was 100% better than in the
(Friday being a holiday) prices were irregular. There was same period in February and that the plant is on full time.
a rally in the last hour after some early weakness. United One of the wire orders received came from Reno, Nev.,for a
States Steel went to its previous low for the year early in the quick shipment of work suits which went two hours later
trading. Some stocks which acted well in the first two at $77.80 airmail postage. At Kingsport, Tenn., M. C. D.
months of this year showed less steadiness. In general, Borden & Sons announced that beginning on March 30
however, the declines were limited to 1 to 2 points. The the Borden Mills, which supply print cloths for the American
trading amounted to only 2,500,000 shares and continues to Printing Co. would cease night operations and thereafter
be very largely a purely professional affair. It is said that will be operated days on the schedule of 55 hours weekly.
some operators are disappointed at the failure of general At Spartanburg, S. C., the South Carolina Cotton Manubusiness in this country to show a decided improvement. facturers' Association at an executive session held in Colum-
2464
FINANCIAL CHRONICLE
[voL. 132.
Ha, voted to support a legislative bill prohibiting night work Bismarck, 24 to 36; Kansas City, 32 to 38; St. Paul, 32 to
In cotton mills for women and minors under 18. Pacolet, 48; St. Louis, 38 to 50; Winnipeg, 24 to 40; Denver, 32 to
S. C., wired that the Pacolet Manufacturing Co. is reported 42; Los Angeles, 58 to 76; Portland, Ore., 54 to 56; San
Francisco, 50 to 68; Seattle, 46 to 54.
to be planning to cut to five days a week.
Richmond, Va., wired that a recent survey made at MarOn Thursday temperatures here were 43 to 49 degrees;
tinsville, Va., shows that practically every industry in that yesterday, 42 to 48. There was some rain here on March
city is working on a full-time basis or overtime with orders 31st and April 1st but in the main the weather during the
for merchandise of their manufacture pouring into their week has been clear. Over Wednesday night Boston had
offices. Additional help has been required at a number of 32 to 48 degrees; Montreal, 34 to 48; Philadelphia, 44 to 48;
the Martinsville plants. The textile and furniture industries Portland, Me., 40 to 44; Chicago, 34 to 40; Cincinnati, 32
predominate in the industrial circles of the city. Chicago to 34; Cleveland, 32 to 36; Detroit, 34 to 38; Milwaukee,
wired that the sales of Sears, Roebuck & Co. for the four 32 to 34; Kansas City,40 to 52; St. Paul,32 to 48; St. Louis,
weeks ended Mar. 26 showed a decrease of 6.8% compared 42 to 62; Winnipeg,34 to 48;San Francisco,48 to 62; Seattle,
with the same period last year and for the 12 weeks ended 40 to 46. There were hurricanes in Florida early in the
week. Managua in Nicaragua, was practically destroyed by
Mar. 26 a decrease of 12%.
Chicago wired that trade leaders felt more confidence as an earthquake followed by general fires and the deaths
to the future though March will show a greater distribution reach 2,000. The city may never be rebuilt.
of merchandise at lower prices than last year, indicating
smaller profits. Labor conditions are growing better, a New York Federal Reserve Bank on Business Profits
in 1930-42% Below 1929.
feature being the preparations for opening of navigation on
the Lakes April 15, which will give employment to many
The following bearing on business profits in 1930 is from
thousands of men, prviding greater buying power. Detroit the April 1 Monthly Review of the Federal Reserve Bank
reports state that the steady, but acknowledged increase in of New York:
demand for automobiles with the arrival of the first days of
Reflecting the depressed business conditions throughout the past year,
spring is encouraging to both manufacturer and dealer and the 1930 net profits of 722 industrial and mercantile companies for which
reports are available were about 42% smaller than for the year 1929,
during the past week, there has developed a stronger market 32% smaller than in 1928, and 16% below the 1927 level. In fact, industhan has been enjoyed since the first of the year, while in trial profits appear to have been the smallest since 1924. The decline
progressively larger as the year
several cases, production schedules have been increased, compared with the previous year became
advanced; the
shown by reports from representative industrial
especially those in the low and medium priced fields. companies was decline
enlarged from about 25% in the first quarter to 35% in
Montreal wired that difficult collections and a general the second quarter, to 50% in the third quarter, and to about 60% in the
scarcity of money for business operations tended to restrain fourth quarter.
Of the 33 groups of industrial and mercantile concerns listed in the
optimism in Montreal's commercial district last week and accompanying table, only two reported as good earnings as in 1929. These
impatience with conditions reflected itself in a discouraged were the tobacco group, whose net return increased 9%,and the beverage
for which aggregate net earnings were practically the same as a
stock market which tended irregularly downward, following group,
year previous. There were, however, a few industrial groups whose net
the previous week's advance. Providence, R. I. wired profits were not greatly below those of the previous year, notably the food
March 30th that the entire plant of the Alice Mill of the products groups, the motion picture, and the printing and publishing
Profits of certain other groups, including the chemical and
Woonsocket Rubber Co. will be shut down indefinitely industries.
drug, leather and shoe, and railroad equipment companies, underwent
April 11th. Approximately 900 employees will be thrown considerably less reduction than the average. On the other hand, the
out of work. Lack of business was the explanation given. steel, automobile, and oil companies received loss than half as much net
profit as in 1929, and the earnings of mining and smelting concerns, and
At Lawrence, the Washington Mills of the American Wool of automobile parts
and accessories companies showed particularly large
Co. have been enjoying a good spurt since the workers re- shrinkages. The rubber concerns as a group reported a sizable deficit.
turned. The Washington has been busy on orders for auto- Aggregate returns of reporting corporations in the textile and kindred
lines likewise showed deficits.
mobile companies. It is understood they have orders from
Net operating income of Class I railroads for 1930 sustained a 31%
the Fisher Body, Chrysler and Reo. The Arlington Mills decrease from the relatively large earnings of the previous year, and was
smallest since 1922. In contrast to the large decline in industrial and
are busy on a commission order, with overtime in the Top rthe
dlroad profits, the telephone companies reported net operating income
mill.
for 1930 only 3% below 1929, and somewhat larger than in other preceding
London cabled the "Times" that for the second week in years. Net earnings of other public utilities, which in previous years
succession, the unemployment figures in Great Britain have had been increasing rapidly, showed a further slight increcse in 1930.
(NET PROFITS IN MILLIONS OF DOLLARS1.
fallen more than 50,000 and the Minister of Labor announced
registered
as
unemployed
or
were
2,580,118
No. of
that a total of
Corn1927.
1928.
1929.
Corporation Group.
1930.
a loss of 59,515 from the previous week. Karachi, India,
panics.
cabled that the program by the conference headed by Automobile
$384
19
$312
$328
$151
Mahatma Gandhi demands not only Indian independence Automobile parts and accessories
43
33
60
69
19
(excluding tires)
49
with Indian control of its army, finances and foreign afaairs Bakery products
13
53
59
52
13
16
5
19
19
Beverage
and
social
equality
with
commercial
Indian
complete
but
19
21
10
25
23
Confectionery
24
42
15
44
37
Meat packing
the British. The demands include provisions for the protec- Other
123
159
177
miscellaneous food products 34
152
68
39
74
78
41
tion of native cloth by the exclusion of foreign cloth and Building supplies
26
102
124
148
116
Chemical and drug
foreign yarns.
8
9
12
9
def. 1
Clothing
10
10
15
def. 2
8
Kansas City wired March 27 that winter came back. In Silk
24
16
30
14
Other miscellaneous textiles
def.14
10
16
7
13
0
Western Kansas a blizzard closed many schools. Fruit was Coal and coke
26
44
ii
67
17
Copper
24
60
60
damaged in the Walla Walla (Wash.) section, where the Other mining and smelting
85
40
100
116
23
151
Electrical equipment
97
mercury slumped to 22. Snow fell throughout the Pacific Heating
23
24
9
23
and plumbing
7
14
15
13
19
Household
4
equipment
district
and
San
Francisco
Bay
pelted
the
Northwest, rain
82
13
27
19
Leather and shoe
15
44
42
52
85
Machinery
ag
the chill pervaded into the Imperial Valley. In Colorado Motion
9
25
32
58
pictures
52
It
25
31
41
5 school children were frozen to death in a stalled bus. Office equipment
25
154
47
271
332
158
Chicago wired that a Spring storm was pushing northeast- 011
12
10
12
lt
Paper
7
14
29
33
37
and publishing
31
ward on Saturday over the Mississippi Valley States. The Printing
19
57
54
Railroad equipment
72
54
rain
Illinois.
A
drizzling
Central
8
9
8
8
5
Realty
centre had reached South
'13
57
32
42
Rubber
del.21
11
12
fell in Chicago and the forecast said it would turn to snow. Shinning
i 10
16
10
I, 25
159
210
357
Steel
160
Little Rock, Ark. wired March 27 that a high pressure area Storm
I 38
155
164
171
107
18
96
100
110
121
charged with snow and cold moved down from the Rockies Tobacco
223
293
90
344
224
Miscellaneous
with belated Winter fury and spread over the South. The
722
$2,095
$2.574
Total (33 groups)
53.000
$1.751
rains and snows were good for the wheat belt. Floods which
103
$228
$253
$278
$270
(net over, Income)
ravaged Southern Washington, Northern Oregon and Central Telephone
775
889
1,007
Other public utilities (net earns.)- 05
1.025
Idaho were receding rapidly last night after causing damage
198
Total public utilities
$1,003
$1,122
51.285
51,295
estimated at nearly $1,000,000and taking three lives. While
$885
the Pacific Northwest, said the Associated Press, was suf- Class I. RR.(net oper. income) 171 51,086 $1,193 $1,275
fering from flood damage, Los Angeles feared drouth damage
New York Federal Reserve Banks Indexes of
unless rain breaks an unusual dry spell that started Feb. 14.
Business Activity.
On March 31 the temperatures here were 37 to 46 degrees;
the day before 36 to 48. In Boston it was 38 to 50; Montreal,
Stating that "business activity in general has continued to
34 to 38; Philadelphia, 40 to 48; Portland, Me., 36 to 46; show signs of stability" the Federal Reserve Bank of New
Chicago, 34 to 38; Cincinnati, 34 to 44; Cleveland, 32 to 36; York, in presenting its indexes of Business Activity in its
Detroit, 32 to 42; Louisville, 36 to 48; Milwaukee, 28 to 40; April 1 Monthly Review, adds:
APRIL 4 1931.]
FINANCIAL CHRONICLE
Car loadings of merchandise and miscellaneous freight, considered to be
a representative measure of general business conditions, increased in about
the usual seasonal proportions in February, but in the early part of March
the advance did not quite measure up to the usual expansion. Loadings
of bulk freight showed about the usual seasonal decline in February, and
foreign trade showed irregular changes, after seasonal adjustment.
Retail distribution of goods appears to have improved somewhat in
February; in the case of department store sales, increases over the January
level occurred both in this district and in the country as a whole. Tne
number of business failures, though continuing at a high level, showed at
least the usual decline from January.
(Adjusted for seasonal variations and usual year-to-year growth-)
Feb.
1930.
Primary Distribution—
96
Car loadings, merchandise and mhscellaneou.s____
95
Car loadings, other
84
Exports
97
Imports
Panama Canal traffic
80
Distribution to Consumer—
99
Department store sales, 2d District
96
Chain store sales, other than grocery
106
Life insurance paid for
93
Advertising
General Business Activity—
98
Bank debits, outside of New York City
126
Bank debits, New York City
Velocity of bank deposits, outside of N.Y.City__ 115
143
Velocity of bank deposits, New York City
267
Shares sold on N.Y.Stock Exchange
97
Postal receipts
94
Electric) Power
96
Employment in the United States
116
Business failures
90
Building contracts
91
New corporations formed in N.Y.State
69
Real estate transfers
173
*General price level
226
*Composite index of wages
170
*Cost of living
Preliminary. r Revise. •1913 average=100
Feb.
1931.
Dec.
1930.
Jan.
1931.
78
80
60
91
62
78
78
60
76
63
78
75
65p
749
63
85
85
88
76
86r
84
89
77
91
86
84
91
103
95
95
196
90
84
82
123
62
80
60
168
219
159
88
89
97
83
159
88
819
80
132
63
78
59
158
216
158
82
91
91
87
242
86
__80
131.
68
85
61
157
218
152
2465
must be taken by those who, in the face of uncertaintites and perhaps
memories of previous false starts, have sufficient confidence in the
recuperative powers of our economic structure to place commitments. There
is evidence on all sides that business men are more optimistic, or perhaps
less pessimistic than they have been for several months. Salesmen traveling throughout the country report that their customers, although justly
cautious, are in the buying frame of mind.
Political Obstacles Removed.
The adjournment of Congress has gone far in removing the inhibitions
of many business men who have been withholding contemplated commitments in the fear that Congress might pass legislative measures which
would have a restraining influence on business recovery. Nor was this
fear without justification. In its last session Congress seemed unwilling
to confine its appropriations to immediate relief needs; and, at a time
when Government economy was essential to speedy recovery, there was an
eagerness on the part of many Congressmen to raid the Treasury to finance
projects that, it was alleged, would have a stimulating influence on
business.
With the disappearance of any likelihood of further unfavorable legislation, with a few industries reporting a fair improvement, and with a
strengthening tendency in commodity and security price levels, the outlook
is perhaps more encouraging at present than it has been for several
months.
Prof. Cox of University of Chicago Believes Industrial
Activity Will Reach Normal in First Half of 1932.
Prediction that industrial activity will reach normal
during the first half of 1932, after making some recovery
during the summer and more rapid advances during the
autumn, is made by Pxofessor Garfield V. Cox, Professor
of Finance in the School of Commerce and Administration
of the University of Chicago. Professor Cox's prophecy
is made in an article on "The Business Outlook for 1931,"
in the current issue of the University of Chicago magazine.
Comparing the present depression with the previous
Guaranty Trust Company of New York Says Read- major declines of the last fifty years, Professor Cox finds
Are
Under
Recovery
justments to Assure Business
that the current decline has already lasted longer than
Way—Political Obstacles Removed with Adjourn- the total period of
recession in two-thirds of the previous
ment of Congress.
major depressions. He says:
Those who predicted earlier in the year that the business "Business has now been below computed normal for sixteen months.
recession was gradually approaching bottom and that a This is slightly longer than the time taken by the index to reach bottom
Busimeasure of recovery could be expected some time during in any previous depression after it had crossed the line of trend.
ness has now fallen 25% below normal, which is as low as it has ever
the subsequent few months have so far had no reason to gone, except for one month in the summer of 1894, when industry was
alter their views, states the Guaranty Trust Co. of New temporarily paralyzed by strikes.
"In previous depressions the index, after reaching bottom, has alYork in the current issue of "The Guaranty Survey", pub- ways
begun a definite advance within a few months. Once begun, this
lished Mar. 30. "In fact, actual developments and reports advance has always ccntinued at least to normal without serious interissued during this month not only offer support for these ruption. The interval of subnormal business has been two years or
less in every instance save that of 1884-86, when activity remained
earlier opinions but also present the most encouraging signs below normal for 30 months.
"The despondent argue that the present major depression is worldin some time," "The Survey" says. It continues:
Evidence accumulates that the way is being cleared for business recovery
and that the necessary readjustments to assure it are under way, but that
this will be a slow and uneven process seems equally evident. That
progress cannot be accurately timed or measured but that it seems to be
started is of real importance and carries with it a degree of reassurance
and improved business psychology.
Business Curve Scraping Bottom.
The business index of the Guaranty Trust Co. stood at 64.8 for February as against 63.8 for January, 64.1 for December, 63.9 for November,
438.1 for October, and 89.6 a year ago. Of course, to maintain that the
slight increase for February following three months of comparative stability
is irrefutable evidence that the low point of recession has been reached
would constitute an immature diagnosis; but, nevertheless, in the light of
all past experiences, it certainly is a strong indication that the business
curve is at least scraping bottom. Furthermore, the Guaranty Trust Co.'s
index of wholesale commodity prices on Mar. 15 stood at 54.0 as against
53.4 a month earlier, 55.5 two months earlier, and 75.0 a year ago.
Although the increase in March is small, it marks the first advance in
this index since September 1929.
The slight upturn lately demonstrated by statistical indices is entirely
supported by business reports. In general, the keynote of the present
business situation is irregularity, which in itself offers a very hopeful
sign at this particular phase of a major business movement. However,
within this irregularity, the preponderance of evidence lies on the side of
betterment. The Department of Labor reported an increase of 1.4% in
the number of employed last month and an increase of 7.5% in total
wages. Improvement has also been reported in such important industries
as steel, pig iron, building construction, and automobile production, while
the declines in cotton consumption, foreign trade, and copper production
were less than seasonal. Some types of retail trade have shown a turn
for the better, and sales of department stores during February were somewhat above those in the preceding month. Reports indicate that more war
veterans have applied for bonus loans than was anticipated and that a
considerable part of these funds is being spent directly in the retail
snarkets.
Financial Conditions Satisfactory.
In the field of banking and finance, also, reports are of a highly irregular
nature. Bank clearings and bank debits have so far shown no improvement in comparison with those of a year ago. Bank failures throughout
the country have continued, but at a diminishing rate; and the number of
suspensions reported for January and February indicates that the high rate
of mortality among the smaller banking institutions last year, especially
in the last quarter, has been checked. Member banks of the Federal
Reserve System report a low level of loans and investments, a small amount
of indebtedness to the Reserve Banks, and large balances with correspondents. In general, the financial structure of the country should
present no serious obstacles to industrial expansion.
Another hopeful sign, and one that is far from insignificant, is the
more constructive state of mind of most business men. While this factor
is highly intangible and difficult to appraise, it does, nevertheless, constitute a very important part of the process of recovery. The initial steps
leading toward the expansion of business after a period of severe depression
wide, but so was each of the others except that of 1896-98. It is said
that we are now in a long-time period of declining prices, but so were
we in the eighties and nineties. There are, admittedly, novel elements
in the present situation, but some of these are as favorable to recovery
as others are unfavorable."
Recovery will not be as rapid as in 1922, when a boom
based on war shortages of housing and great demand for
automobiles was under way, or as in 1915 when war demands of Europe produced a spectacular revival, Professor Cox says. Great volume of war debts and reparations and the uncertainty concerning the future of these
obligations; high tariffs which constitute a heavy burden
on world commerce; heavy stocks of raw materials which
producing companies built up during years of artificial
price control, and the contrasts in the extent to which
commodity price deflation has proceeded are among the
unfavorable factors to recovery listed by the economist.
Factors regarded as favorable include signs of stabilization of wholesale prices; low inventories, opportunity
of consumers to liquidate instalment contracts during the
last eighteen months, use of reserve buying power to prevent serious curtailment of living standards, improving
confidence on the part of those who have jobs, and the
upward trend in construction.
Index of National Association of Real Estate Boards
Shows Slight Rise.
The regular monthly index figure computed from realty
deeds recorded in 64 cities by the National Association of
Real Estate Boards is 66.7 for February, showing an increase of more than a half a point over the figure 66.0 in
January. These figures are based on the norm 100 used
for deeds recorded in the year 1926.
Improvement in New England Business Seen by National
Shawmut Bank of Boston
New England recorded further improvement in business according to the March issue of "New England Business" published by the National Shawmut Bank of Boston.
The review notes particularly a relatively large increase
in volume of building contracts awarded for both commer-
2466
FINANCIAL CHRONICLE
cial and residential structures. It notes also a more than
seasonal improvement in manufacturing. The review
says:
[VoL. 132.
THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY
PRICES.
(1913=100)
Mar. 31 1931. Mar. 24 1931. Apr. 1 1930.
"Productive activity in New England manufacturing plants as measured by the consumption of electrical energy, apparently increased more Farm products
99.8
99.5
127.8
Food products
than seasonally in February as compared with January.
114.8
114.4
137.6
Textile products
101.6
"Adjustment of these indices of productive activity for seasonal vari- Fuels
101.6
130.6
127.6
128.1
150.1
ation and long term trend indicates that the February pick-up in New Metals
105.0
105.3
121.4
England was greater than that for the country as a whole and that the Building materials
123.3
123.3
149.9
level of productive activity in New England is not as subnormal as in Chemicals
101.1
101.1
110.3
Miscellaneous
85.4
87.6
116.6
other sections.
All con modities
108.1
108.5
134.2
"Increased employment in manufacturing plants was accompanied by
*Revised.
slightly higher weekly wages per wage earner. Distribution of goods
continues at approximately the same rate as during the previous three THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
months."
(1913=100).
Mar. 1931.
Feb.
1931.
Mar. 1930.
National City Bank of New York Notes Symptoms of BusiFarm products
99.8
101.3
127.6
Food products
ness Recovery.
115.4
115.2
136.1
Textile products
102.3
103.1
131.4
According to the National City Bank of New York, Fuels
131.2
139.4
150.7
Metals
105.7
105.7
122.9
"economic conditions, despite much that is discouraging, Building
materials
123.2
128.3
150.8
104.1
100.4
display many symptoms characteristic of the early stages Chemicals
110.3
Miscellaneous
87.8
88.9
115.8
of recuperation. It looks as though the low point had All commodities
109.3
111.2
134.0
been passed," says the bank, "but progress on the upgrade is likely to be slow." The April Bulletin of the General Index of National Fertilizer Association Shows
bank, from which we quote, also comments as follows on
Decline of Only Three Fractional Points During
general business conditions:
• Latest Week.
The past month has brought no very startling change in the business
The weekly wholesale price index of the National Fersituation. The decline in industrial activity, has been halted, and business, aided by seasonal influences, has shown a tendency to expand. tilizer Association, consisting of 476 commodity prices,
Thus far, however, the recovery has been irregular and slow, and the declined three fractional
points during the week ended
question as to its permanence is still a matter of opinion rather than
practical demonstration. This is to be expected at this stage, following March 28. During the preceding week the index number
so profound a disruption of economic conditions as has occurred all over declined six fractional points. The index number now
the world.
stands at 74.9 compared with 75.2 last month and 91.4 for
Unfavorable developments of the month have :ncluded a large number of important dividend reductions and omissions, which not only the corresponding week a year ago. (The index number
serve as an unpleasant reminder of the heavy decrease in corporate earn- 100 represents the average for the three years 1926-1928).
ings last year, but imply that these companies do not see enough im- Building
materials alone of the 14 groups in the index
provement ahead to warrant dipping into surplus to maintain dividends which are not being earned. March tax collections, falling 40% advanced during the latest week. Seven of the groups
below those of March last year, were a further reminder of the severity declined, while six were unchanged. The groups that
of the depression, and mean that the Treasury faces a probable deficit declined
were metals, other foods, fats and oils, fuel (includof between $700,000,000 and $800,000,000 at the end of the year, with
a possible increase in taxes to follow. Commodity prices have shown ing petroleum and its products), chemicals and drugs,
an outcropping of renewed softness here and there, while the announce- fertilizer materials and miscellaneous commodities.
The
ment of the Farm Board that it will not undertake to valorize the 1931
largest drop was shown in the group of chemicals and
wheat crop, though by no means unexpected, and undoubtedly constructive in the long run as indicating the abandonment of Government inter- drugs. The Association further reports:
ference with the market, has nevertheless revived concern as to the
immediate outlook for agriculture. Reflecting these developments, and
the general sluggishness of trade revival, the stock market displayed
considerable weakness towards the end of the month and prices lost a
substantial part of their earlier gains.
Symptom of Recovery
As opposed to these more or less discouraging aspects of the situation
have been a number of favorable developments which are entitled to
consideration. Of these, the most important, to our mind, is the improvement in the foreign situation. This has manifested itself in
more tranquil political conditions in many disturbed areas, a stronger
tone in several of the leading foreign exchanges, a sharp rise in the
prices of foreign securities, and the beginnings of a freer international
movement of capital. So important do these developments appear that
they may easily mark the turning point towards world economic rehabilitation. For a fuller discussion of the foreign situation we refer our
readers to later paragraphs of this Letter.
Other hopeful develcpments of importance are the broadening out of
the bond market, particularly as regards capacity for absorbing new
issues, and growing indications of commodity price stabilization. It is
bale that prices of some commodities have recently shown weakness, but
with a few notable exceptions the declines have not been great and
most quotations are already so low that they seem hardly likely to go
much lower. For all commodities to reach a point of stability at the
same time would be a good deal to expect, and the significant thing is
that for over a month composite price index curves, both in this country and abrcad, have shown a distinct tendency to flatten out. As an
illustration of the increasing confidence on the part of many large
buyers in present prices may be cited the recent announcement of the
General Motors Corporation that it had covered its requirements for
certain raw materials through October.
Declines were noted In the prices for 30 commodities, while the prices
for 15 commodities showed slight gains. Lard, butter, cheese, flour, cotton,
silk, steers, lambs, hay, finished steel, copper, silver, petroleum, gasoline,
kerosene, alcohol, coffee, rubber and tankage declined. Slight advances
were noted in the prices for wool, cottonseed meal, hogs,
tallow, corn,
oats, wheat, sweet potatoes, rosin, turpentine, calfskins and hemp.
The index numbers for each of the 14 groups in the index are shown
In
detail in the table below.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
PRICES (476 QUOTATIONS 1926-1928=100).
LatestWeek Preceding
Mar. 2831
Week.
All Croups (14)
Textiles
Fats and Oils
Other i'dds
Grains, feeds and livestock
Fertilizer materials
Mixed fertilizer
Metals
Agricultural implements
Automobiles
Building materials
Fuel
Chemicals and drugs
House furnishings
Miscellaneous commodities
74.9
65.1
65.7
77.8
70.1
84.2
91.5
80.8
95.4
87.8
83.6
67.2
90.8
92.2
69.9
75.2
66.7
66.4
77.8
70.1
84.3
91.5
81.6
95.4
87.8
83.5
68.0
93.8
92.2
70.6
Month
Ago.
Year
Ago.
75.8
66.6
64.2
77.6
67.4
83.9
92.4
81.8
95.4
88.4
83.1
73.9
93.9
02.5
70.9
91.4
86.5
84.9
95.3
91.8
92.3
98.4
98.3
96.8
95.7
94.8
85.0
96.0
98.4
83.7
President Hoover Reported as Gratified at Maintenance of Wage Scale by Industry-Representative
Wood Notes that Wage Scale Is Far Above Selling
Level of Commodities.
President Hoover was described at the White House on
"Annalist" Weekly Index of Wholesale Commodity
April 2 as being highly pleased with the manner in which
Prices.
the principal industries of the country have supported him
The "Annalist" Weekly Index of Wholesale Commodity in his determination that wage scales shall be
maintained
Prices continues its steep decline and, at 108.1, is at a new during the business depression. The account from
Washinglow for the depression period, 0.4 point lower than last ton, April 2, in the New York "Times" from
which
we
week (108.5) and 1.2 point lower than the March average quote, continued:
(109.3). Farm products, fuels, textiles and the miscelThe statement was in answer to reports, published in several newspapers
The this morning, that the President had become aware of an organized effort
laneous group are at the lowest levels since 1914.
In
certain quarters to force a reduction, and that he was carrying on a
"Annalist" continues:
struggle
The March index (average of five weeks in March), at 109.3, i 3.5%
below February and 4.6% below January. As compared with February,
farm products have declined 2.4%, fuels 6%, building materials 2.6%
and the miscellaneous group 4.6%. With the exception of chemicals all
groups are lower in March than in February, and it is significant that, with
the exception of building materials and chemicals, the six remaining groups
comprising the composite index are lower the last week in March then
the March average, and that the composite index in the last week is 1%
lower than the March average.
A recent release by the Department of Agriculture indicating "an
advance of general prices of farm products from Feb. 15 to March 15" is
not borne out by the "Annalist" Index, probably because the Department
of Agriculture deals with farm prices of farm commodities while the
"Ann dist" Index deals with wholesale prices.
"behind the scenes" to maintain wage levels.
Reports attributed to the White House were that the chief pressure for
a wage reduction was coming from a source described as "the bankers."
Representations made on behalf of the President took no direct issue
with the published statements, but merely called attention to Mr. Hoover's
stand at the outset of the business decline, that wages should be main-
tained at American levels.
Early in the depression the President called conferences of business
leaders and urged upon them the necessity of keeping wages up for at
least a year. The year has passed, and the wishes of the President are
said to have been carried out entirely to his liking.
Continues Earlier Policy.
Mr. Hoover, it was said, will continue to advocate high wage scales.
It was emphasized that there had been no major strikes, no general wage
APRIL 4 1931.]
FINANCIAL CHRONICLE
2467
reductions and no social disorders, a result which was attributed by Presi- cess, are discussed by C. W. Steffler, writing in the current
dent Green of the American Federation of Labor to President Hoover's issue of
"Trade Winds", magazine of the Union Trust Co.,
quick action in "pegging" wages at the high levels.
In contrast to the stand taken by the President, Representative Wood Cleveland. There are now in operation, or have bem
of Indiana, Chairman of the Republican Congressional Committee, de- within the past few years, plans aimed at the stabilization
clared to-day that either wages must come down or commodity prices
of markets in no less than 36 staple raw commodities, it is
must be increased.
Mr. Wood made his statement as he emerged from Mr. Hoover's private declared. With few exceptions every major world comOffice, but said that he did not discuss the subject with the President.
modity is or recently has been affected to some extent by
"The wage level in this country," Mr. Wood declared. "is far above the
selling level of commodities. How that is to be adjusted is a problem. controlled plans, many markets being entirely dominated by
Those things naturally adjust themselves after a while just like water them, according to the 'writer. The article says:
seeks its level."
A few of these plans, most notably in rubber, have been abandoned for
National Industrial Conference Board Finds Practical the present at least. Others probably are on the verge of failure. Operation
of some is just beginning.
Step Toward Stabilization of Employment Through
These plans are all animated by one idea: to keep markets stable, to
Budget System of Control in Industry.
avoid excessive surpluses or deficits in supply, and to assure the prosof producers. Their common effort is to keep prices up to a
A practical step toward stabilization of employment and perity
profitable level, always by control of the rate of marketing, and usually
scientific regulation of production In industry is set forth by control of production as far as possible.
The all-embracing extent of these commodity control plans would be
in a report on "Budgetary Control in Manufacturing Indusless surprising if their record in the past had been more successful. Their
try", just completed by the National Industrial Conference history is strewn with many calamitous failures. Some disinterested
Board. The Board states that the adoption of the budget economist has ascribed to them a major share of the responsibility for the
system of control in industry has become a subject of greatly oversupply of commodities and the decline in prices in 1930.
Undoubtedly leaders in the organization of the more recent plans think.
increased interest among both economists and industrialists they have learned from the failures of the past, and that the technic of
In recent months because of the unemployment situation. control can be and is being improved. From schemes now abandoned they
drawn these principles:
It has been stated by leading industrialists who have already have
1. Mere allocation or restriction of shipment and withholding of surplus
tried out the budget system of control and have permanently supplies fails because it encourages continuance rather than curtailment of
adopted it that it produces greater evenness of factory opera- production. This is the first lesson to he learned from the Brazilian
coffee plan.
tions, increased regularity of factory employment, and de2. Even rigid control of production is ineffective unless the percentage
creased labor turnover. As these are the improvements most of actual and possible output controlled is great enough to dominate the
needed by industry the study made by the Conference Board market, so that no important competition can arise from new sources.
Failure to meet this qualification was largely responsible for the downfall
is both timely and useful. Budgetary control in govern- of the Stevenson plan in rubber.
3. A market that is stabilized up must also be stabilized down. Otherin
use
been
mental administration, it Is pointed out, has
wise too high prices will induce excessive production. Stocks withheld to
since early in the present century. It started in New York prevent
a calamitously low price must, when necessary, be thrown against
City, spread to many other large cities, then to State govern- the market to prevent an uneconomically high price
Herein lies another explanation of the failure of the Stevensin rubber
ments, and was finally adopted by the Federal Government
plan. It provided for adjustments in the quota allowed to be shipped no
in 1921. The Board says:
oftener than once each quarter, and the quantities released, as the price
In industry the budget is essentially a post-war development. It may advanced to a level far above the cost of production were insufficient to
be said to have arrived shortly after the national budget. A few companies stem the rise.
In industry, especially some of the large companies, had used systems of
Eventually the market reached economically absurd heights, with a top
financial estimates or forecasts and occasionally a company had extended of about $1.20 a pound. The consequence was opening of new areas to
the idea to its operating functions. But not until the efficacy of budget rubber growing, violent stimulus to planting, to reclaiming of old rubber,
methods in public corporations had been demonstrated, and not until and other measures.
confronted with disaster by the 1920 deflation, did private corporations
It is apparent, therefore, that any plan which does not contain the
give any widespread consideration to the budget program.
seeds of its own destruction must (1) provide an effective control of pro(2) include all principal producers; (8) prevent uneconomically
The report calls attention to the fact that a great change duction;
high as well as uneconomically low prices. Further the plan must be
has taken place in manufacturing industry since the war. guarded from internal disaffection and violation of the spirit, if not the
This change, which is still in process, Is nothing less than "a letter, of the agreement, and from maladministration. The recent abandonment of the European zinc cartel is in illustration in point.
management,a
change
revolution in the intangible devices of
('1) from making what the management willed, expecting
to find ready buyers, to making what can be sold, and (2)
from hiring and firing men accordingly as they were or
were not required to an endeavor to increase profits through
reducing labor turnover by providing steady jobs for a
trained force. The first change was based on time studies
of human efficiencies and mechanical speeds, on machine
designs, on cost accounting, and on wage incentives; the
second, on market analysis, through budgeting sound
scheduling, and broad-minded personnel co-operation. One
of the greatest forces in this basic change that is taking
place throughout manufacturing industry is budgetary
control."
In a system comparatively so new there is naturally a
lack of uniformity in methods. In the manufacturing industry especially there has been for several years a real need
for up-to-date, complete, accurate, and dependable information concerning the budgetary methods adopted and the
results accomplished. This need the Conference Board
undertook to supply in compact form, much of the existing
literature on the subject being fragmentary in character.
The report says:
"The results of the Conference Board's study of budgetary control in
manufacturing industry show a wide variety in practice, ranging from no
budgets at all through partial budgets, relating to certain definite phases
of business operations to an elaborate series of budgets that seek to cover
all operations in complete detail. This variety of practice seems to suggest
that budgets are being recognized more and snore as an effective method
of expressing the forethought and planning essential to the successful conduct of business. While many enterprises have not yet adopted the budget
In form, none can dispense with the spirit that lies behind it. Where the
bedget is used, as the present study shows, that spirit is successfully
embodied in a definite form, the adoption of which has smoothed the way
for the judicious conduct of business affairs."
Perils Incident to Proposals to Stabilize Commodity
Prices Cited by C. W. Steffler of Union Trust
Company of Cleveland.
Perils in the path of concerted schemes for stabilizing
commodity prices and underlying principles which must be
observed if such schemes are to have any measure of suc-
Gov. Roosevelt of New York in Message to Legislature
Urges That Unofficial Commission on Stabilization of
Employment Be Continued Officially—Also Proposes
Study of Unemployment Insurance.
In a special message to the New York State Legislature
on March 25 Gov. Franklin D. Roosevelt urged that a
legislative committee be created to study and report upon
a plan for unemployment insurance.
"The serious unemployment situation which has stunned
the Nation for the past year and a half," said Gov.
Roosevelt, "has brought to our attention ... the need for
some sort of relief." Gov. Roosevelt likewise in his message asked that the Unofficial Committee on Stabilization
appointed by him a year ago "be continued under State
auspices in an official manner." The Governor's message
follows:
To the Legislature: It would be in the public interest if your honorable
bodies would, before adjournment, enact legislation affecting two important phases of the unemployment problem. The first relates to the
present emergency. I sincerely recommend the passage of legislation,
which is being introduced in both Houses, making an official commission
of the unofficial Committee on Stabilization which I appointed in April,
1930.
This Committee was created for the purpose of making surveys to
obtain accurate data relative to unemployment; stabilization of employment; co-operative organization and supervision of public and private
philanthropic activities; active stimulation of small job campaigns in
every city and town in the State; establishment of local free employment
clearing houses linked up with the State public employment service;
and the encouragement of local public works.
This Committee has been a volunteer unofficial one and I believe that
their work should be continued under State auspices in an official manner.
It has rendered a fine and useful service.
The second need relates to the broad problem of providing in the
future against the results of some new period of economic depression.
The serious unemployment situation which has stunned the Nation for
the past year and a half has brought to our attention in a most vivid
fashion the need for some sort of relief to protect those men and women
who are willing to work but who through no fault of their own cannot
find employment. This form of relief should not, of course, take the
shape of a dole in any respect.
The dole method of relief for unemployment is not only repugnant
to all sound principles of social economics, but is contrary to every
principle of American citizenship and of sound government. American
labor seeks no charity, but only a chance to work for its living.
2468
FINANCIAL CHRONICLE
[VOL. 132.
The relief which the workers of the State should be able to anticipate, industries.
Consumption of power by municipalities, and street cars and
when engulfed in a period of industrial depression, should be one of railroads was larger
than a year ago. Purchases for lighting purposes also.
insurance, to which they themselves have in a large part contributed. were greater.
Each industry itself should likewise bear a part of the premium for this
insurance, and the State. in the interest of its own citizens, and to prevent
(natty Average)
a recurrence of the widespread hardship of these days, should at the least
Electric Power-Philadelphia Federal
supervise its operations.
February
Change Change
Martel.
11 Systems.
(Total for Month) from
Any nation worthy of the name should aim in normal industrial periods
from
Feb.
Jan.
to offer employment to every able-bodied citizen willing to work. An en1931.
1930.
lightened government should look further ahead. It should help its
1.852,000 kw.
citizens insure themselves during good times against the evil days of Rated generator capacity
+5.4%
output
17,855.000 kwh. -0.0% -4.8%
hard times to come. The worker, the industry and the State should all Generated
Hydro-electric
1.882,000 kwh. +80.3% -56.4%
assist in making this insurance possible. The successful experience of
Steam
12,018,000 kwh. -6.3% +13.3%
Purchased
several large industrial concerns has shown the wisdom and feasibility
3,955,000 kwh. -0.8% +3.2%
Sales of electricity
19,069,000 kwh. +2.2% -4.5%
of some form of unemployment relief.
Lighting
4,406,000 kwh. -3.1% +6.5%
I strongly recommend that your honorable bodies create a commission
Municipal
474,000 kwh. -3.3% +6.7%
Residential and oommerclal
to investigate this whole subject and report to the Legislature of 1932
3,932,000 kwh. -3.1% +6.4%
13,181,000 kwh. +3.6% -3.1%
a plan for accomplishing some kind of scientific unemployment insurance. Power
Municipal
331,000 kwh. +16.3% +1.9%
As to the nature of the commission, I would suggest that it be a small
Street cars and railroads
2,375,000 kwh. -2.5% +6.3%
Industrial
commission of experts, to be appointed by the Governor, with two or three
*10,475,000 kwh. 4.+4.7% -5.2%
All other sales
1,482,000 kwh. +6.6% -33.1%
members to be appointed by and from the Legislature.
I mean no disrespect when I state my belief that a large legislative
* Working days average-other Items are computed on calendar days.
committee is not the proper way to investigate this kind of subject, which
will necessarily entail minute technical and expert consideration of
various economic, financial and actuarial problems and material. Bills Manufactured Gas Sales Increased in January
have been introduced creating a commission which I think has the most
First Gain Since April 1930.
advisable form, namely, two legislators and four laymen-one to repreThe month of January witnessed the first signs of an
sent labor, one to represent employers, and the others to represent the
upturn in the manufactured gas industry, when gas sales
general public.
I hope that your honorable bodies will enact these two recommenda- registered an increase of 1% over January of the preceding
tions into law.
Jobs for About 10,000 Provided by Subways-Construction
of City Lines Now Averages 9,895 a Day, Board of
Transportation Reports.
About 10,000 men are employed daily on city subway
construction contracts, figures of the Board of Transportation showed on March 29, it was stated in the New York
"Times" in which it was further stated:
The latest figures of the Board, compiled from reports of the several
contractors, showed the average daily number to be 9,895. At the peak
of subway construction activity in Manhattan, where the work is snore
difficult and expensive, the number has gone up to 11,000, and at other
times it has sunk slightly below the present average.
The greatest number employed on any one contract is 916, of the
$14,000,000 contract for the Houston-Essex Street route from Sixth
Avenue to Broome Street. On a number of the completed sections only
two or three men are employed as watchmen and inspectors.
Manufacturing Gains in Electrical Trade-February
Operations 3% Above January.
Electrical manufacturing establishments were busier,
on the whole, in February than in January, according to
reports of energy consumption received by "Electrical
World," and taking into account the smaller number of
working days. The increase over January was 3%, the
report shows. Only Washington's Birthday was counted as
a holiday in this computation; if allowance is made also for
some curtailment of work on Lincoln's Birthday, the increase is somewhat greater than that here shown. January
registered a 9% rise over December, the lowest month in the
present period of depression. The survey also says:
The slightness of the response of the electrical manufacturing industry
to adverse economic conditions deserves mention. In the first part of
1930 it ran at a higher level than in 1929. The retardation was so gradual
that the averages for the first nine months of both years were about equal.
although 1929 had been by long odds the banner year. The monthly
average was 6% lower in 1930 than in 1929.
December 1930. was only 17% below the monthly average for 1929.
The subsequent rise brings February within 10% of the corresponding
month of 1930, almost on a level with 1929 and 22% above 1928.
By contrast, the weighted average for all manufacturing in the United
States attained its high point just two years ago, dropped more rapidly
in the fall of 1929,suffered another drop in the middle of 1930, and despite a
rise of 11% since December stood, in February, not at the level of 1928.
but at that of 1923.
It appears, then, that electrical manufacturing responded much later
and less strongly than most other branches ofindustry to negative influences
but that the up-turn-so far as returns for a short period may be accepted
as establishing a trend-is not correspondingly delayed.
COMPARATIVE INDEX NUMBERS.
149.0 February 1930
February 1931
165.2
144.7 January 1930
January 1931
156.2
132.4 Average 1930
December 1930
150.0
137.5 Average 1929
November 1930
159.8
Daily Output of Electric Power in Philadelphia Federal
Reserve District in February on Par with January.
The daily output of electric power showed practically no
change from January to February and was 5% smaller than
in Feb. 1930, according to reports received by the Philadelphia Federal Reserve Bank from 11 central stations. A
large gain over the January report by the hydro-electric
plants was principally offset by reduced generation by
stenm plants, says the Bank, which adds:
Daily sales of electricity in the aggregate increased about 2% over the
previous month. This was due mainly to a larger consumption of electric
power by industries. The use of electricity fOr lighting purposes declined
seasonally.
In comparison with February 1930, total sales declined nearly 5%.
This drop was caused primarily by the smaller use of electrical energy by
year, according to the Statistical Department of the American Gas Association. This is the first time the industry
has reported an increase for any month over the preceding
year since April 1930. Revenues of the 152 reporting companies, comprising about 90% of the manufactured gas
industry, aggregated $34,665,992 for the month, as compared with $34,554,508 for January 1930, an increase of
0.3%. The Association's advices March 20 also state:
While natural gas utility sales did not show the same upturn, the decline
as compared with the year previous was much less severe than for the
preceding months, amounting to only 6%. Revenues of the 156 reporting
natural gas utilities, which represent nearly 90% of the public utility
distribution of natural gas, amounted to $32.563,202 in January, as compared with $33,384,931 for January a year ago, a decline of only 2.5%.
This generally improved trend was not uniform throughout the country
however. In New England sales of manufactured gas rose nearly 7% in
January from a year ago, while in the Middle Atlantic States, comprising
New Jersey, New York and Pennsylvania, sales were up 2.4%. In the
East North Central States however, including Illinois, Indiana, Michigan,
Ohio and Wisconsin total sales for the month were down 6% from January 1930. This was the result in large part of a drop of 15% in sales of
gas for industrial-commercial purposes, together with abnormally mild
weather conditions characterizing this area during the month.
Four Billion DollarsInvested in Natural Gas According
to Goodbody & Co.-14,162 Miles of New Pipe
Lines Added During 1930.
More than four billion dollars is now invested in the natural
gas industry, it is pointed out by Goodbody Sr Co., who
state that natural gas has been used in the United States for
commercial purposes for 68 years and that the first natural
gas pipe line was completed in 1872. The statement says:
The stimulus to the industry in the last few years has resulted from the
discovery of how to manufacture pipe with welded joints that would
withstand the pressure necessary to transport the gas long distances.
We now have about 94,162 miles of natural gas lines in this country of
whl 11 14.162 were added in 1930.
Consumption of gas over the last ten years has increased 10% annually.
During 1929 1.917.693.000.000 cubic feet of gas was consumed, an increase 0( 22% over 1928 in which year that was a gain of 8% compared
with 1927. Due to the drastic curtailment of industrial plant activity in
1930, it is estimated that consumption of natural gas only gained 1.7%
over 1929, despite the very rapid increase in new pipe line mileage.
Of the 1929 natural gas production. 19% was consumed for domestic
and 81% for industrial purposes. Latter figure emphasizes dependence,
at this stage of development, on industrial plant activity. Of total gas
used Industrially in 1929, some 62% was used in the ell and gasoline
Industry for refining; 7% was used in carbon black industry; 7% in public
utility power plants, and 24% for general industrial purposes. On Dec. 31
1929 there were 5.116.000 domestic consumers of natural gas in the United
States as compared with 4.344,000 on Dec. 31 1928, and the domestic
consumption in 1029 was valued at $223.172.000.
Natural gas fields have a life offrom 12 to 50 years. Contrary to popular
opinion, engineers claim that reserves in any particular field can be quite
accurately measured. In this country, production costs are lowest in
the prolific Southwestern and Californian fields, with the mid-Continent.
Appalachian, and Northern fields following in respective order. In 1929
average cost of natural gas in this country was 8.2c per thousand cubic
feet at the wells. Areas where average cost was under this figure included
Arkansas, Colorado, Kansas, Louisiana, Mississippi, Montana, New
Mexico, Oklahoma. South Dakota, Tennessee, Texas, Utah, and Wyoming.
Costs above the 8.2c. average prevailed in California, Illinois, Indiana,
Kentucky, Missouri, New York, Ohio, Pennsylvania, and West Virginia.
Average selling price of natural gas to consumers in 1929 was 21.6c.
per thousand cubic feet. Price varied widely depending on distance.
Selling price was below average in Arkansas, California, Illinois, Louisiana,
Michigan, New Mexico, Oklahoma, Texas, and Wyoming. In Indiana
for 1929 average selling price was 51.2c.; in Missouri, 50.6c.; in New York.
66.0c.; in Ohio, 56.8c.; in Tennessee, 44.0c. and in West Virginia. 44.1c.
Production of Electric Power in the United States
Continues to Decline.
According to the Division of Power Resources, Geological
Survey, electric power produced in the United States by
public utility plants during the month of February 1931
amounted to 7,140,173,000 kwh., a decrease of about 6%
as compared with the same month in 1930 when production
totaled approximately 7,627,000,000 kwh. Of the total for
February 1931 there were produced by fuels 4,973,333,000
kwh., and by \Neter power 2,166,840 kwh. The Survey's
statement follows:
PRODUCTION OF ELECTRIC POWER BY PUBLIC-UTILITY POWER
PLANTS IN THE UNITED STATES (IN KILOWATT-HOURS).
Total by Fuels and Water Power.
Dec. 1930.
Jan. 1931.
Change in Output
from Precious Year.
Feb. 1931.
591,000,000 579,679.000 520,537.000
New England
Middle Atlantic...... 2,259,446,000 2,189,166.000 1,943,404,000
East North Central_ 1,898,772,000 1,857,347,000 1,654,643,000
West North Central_ 513,252,000 497,209,000 453,692.000
854,173,000 851,942,000 782,110,000
South Atlantic
East South Central_ 310,902,000 332,146,000 317,628,000
West South Central_ 391,093,000 374,070,000 340,071,000
273,426,000 268,214,000 238,170,000
Mountain
Pacific
1,015,750,000 995,173,000 889,918,000
Total for U.
8,107,814,000 7,944,946,000 7,140,173,000
Jan.
Feb.
-2%
-4%
-10%
-2%
-23%
+2%
-9%
-16%
-3%
-1%
-3%
-9%
+1%
-19%
+13%
-11%
-13%
-3%
-8%
-6%
The average daily production of electricity by public-utility power plants
In the United States in February was 255,000.000 kwh., 0.5% ess than
the daily output for January. This is about the normal change in the
daily production from January to February.
The average daily production of electricity by the use of water power in
February was about 2% larger than in January. This also is about the
normal change.
TOTAL MONTHLY PRODUCTION OF ELECTRICITY BY PUBLICUTILITY POWER PLANTS IN 1930 AND 1931.
a 1930.
KW. Hours.
January _ _ __
February. __
March
April
May
June
July
August
September
October_..__
November....
December...
2469
FINANCIAL CHRONICLE
APRIL 4 1931.]
1931.
KIT. Hours.
1931
Under
1930.
8%
8,652,000,000 7,944,000,000
6%
7,627,000,000 7,140,000,000
-8,187,000,000
8,019,000,000
8,064,000,000
7.784,000,00
7,699,000,000
7.906.000,000
7,792.000,000
__-.
8,195,030,000
7,693,000,000
8,108,000.000
95,936,000.000
Total
a Revised. y Increase over 1929.
-_-_
Produced by
Water Power.
1930
Under
1929.
1930.
1931.
y5%
y3%
72%
y2%
34%
36%
40%
41%
30%
30%
--
39%
37%
32%
29%,
28%
29%
29%
____
-2%
-5%
-3%
-6%
-7%
-5%
-1.5%
34%
-____
----
----
The quantities given in the tables are based on the operation of all power
plants producing 10,000 kwh. or more per month, engaged in generating
electricity for public use, including central stations, both commercial and
municipal, electric railway plants, plants operated by steam railroads
generating electricity for traction. Bureau of Reclamation plants, and that
part of the output of manufacturing plants which is sold for public use.
The output of central stations and electric railway plants represents about
98% of the total of all types of plants. The output as published by the
National Electric Light Association and the "Electrical World" includes the
output of central stations only. Reports are received from plants representing over 95% of the total capacity. The output of those plants which
do not submit reports is estimated: therefore the figures of output and fuel
consumption as reported in the accompanying tables are on a 100% basis.
(The Coal Division, Bureau of Mines, Department of Commerce, co-
operates in the preparation of these reports.]
Silberling Research Corporation on Outlook for
National Buying Power.
Discussing the outlook for National Buying Power, the
Silberling Research Corporation, Ltd. of San Francisco on
March 21 said in part:
Agriculture will doubtless be the heaviest millstone around the neck of
business this year. Reports from the Weather Bureau indicate continuation
of conditions very unf tvorable to growing crops in many sections and a
year of subnormal precipitation seems again to be in prospect. If this
proves true there will be a more serious situation than last year because
there wit be the combination of low prices and sma.1 yields in sections
.which last year suffered only from low production at fair prices or low
prices with good crops With one of the dryest winters on record we must
not overlook the possibilities in this situation.
On the other hand, there is a better feeling among industrial and financial
leaders regarding foreign conditions and while this must necessarily be a
slow development resting upon extension of long-term credits. it Infuses
the hope that the latter part of the current year will see a somewhat better
situation in some of the basic export manufacturing industries with a
corresponding gain in employment and hence urban buying-power.
Loading of Railroad Revenue Freight Show an Increase.
Loading of revenue freight for the week ended on March 21
totaled 741,942 cars, the Car Service Division of the American Railway Association announced on March 31. This
was an increase of 7,680 cars above the preceding week this
year, but a reduction of 133,443 cars below the same week
last year. It also was a reduction of 220,458 cars below
the corresponding week in 1929. Details are outlined as
follows:
Miscellaneous freight loading for the week of March 21 totaled 283,778
cars, 76,302 cars under the same week in 1930 and 118,062 cars under the
corresponding week in 1929.
Loading of merchandise less than carload lot freight amounted to 222,227
cars, a decrease of 29,218 cars below the corresponding week last year
and 41,188 cars below the same week two years ago.
Coal loading amounted to 127.971 cars, an increase of 1,152 cars above
the same week in 1930 but 8,519 cars under the same week in 1929.
Forest products loading amounted to 33,963 ears, 24,437 cars under the
corresponding week in 1930 and 34,433 cars under the same week two years
ago.
Ore loading amounted to 5,916 cars, a reduction of 4,127 cars below the
same week in 1930 and 5,970 cars below the same week in 1929.
Coke loading amounted to 7,995 cars, a decrease of 1,705 cars below the
corresponding week last year and 4,221 cars under the same week in 1929.
Grain and grain products loading for the week totaled 38,634 cars. 977
cars above the corresponding week in 1930 but 3,477 cars below the same
week in 1929. In the Western districts alone, grain and grain products
loading amounted to 25,814 cars, an increase of 1,153 cars above the same
week in 1930.
Live stock loading totaled 21,458 cars, 217 cars above the same week
in 1930 but 4,588 cars under the corresponding week in 1929. In the
Western districts alone, live stock loading amounted to 17,059 cars, an
increase of 303 ears compared with the same week last year.
All districts reported reductions in the total loading of all commodities
compared not only with the same week in 1930 but also with the same
week in 1929.
Loading of revenue freight in 1931 compared with the two previous years
follows:
Five weeks in January
Four weeks in February
Week ended March 7
Week ended March 14
Week ended March 21
Total
1931.
3,490,542
2.835,680
723.534
734.262
741,942
1930.
4,246,552
3,506,899
873,716
881.308
875,385
1929.
4,518,609
3,797,183
947.539
958,601
962.400
8.525,960 10,383,860 11.184.332
Federal Survey of Drug Store Sales Is Begun-St.
Louis Selected as City in Which Exhaustive Study
by Department of Commerce Is to be Conducted.
The Department of Commerce announced on Mar. 24 the
beginning of its national drug store survey in line with its
effort to place in the hands of American business merchandising information which will help to eliminate losses from
distribution waste which have been estimated at nearly
$10,000,000,000 annually. The "United States Daily", in
indicating this, also said in part:
The survey is to be conducted in St. Louis, Mo., and in one neighboring
small town in co-operation with representative leaders of the drug industry
in St. Louis and the National Drug Store Committee, consisting of representatives of 33 national associations representing industries which sell
their products to drug stares. One year will be required to complete
the survey and the results obtained are expected to be helpful to the
retail drug trade in all parts of the United States.
Central Aim of Survey.
In announcing the beginning of the survey on Mar. 24, William L.
Cooper, Chief of the Bureau of Foreign and Domestic Commerce of the
Department of Commerce, said the central aim of the survey is to present
such a detailed analysis of the retail drug business that the druggist will
be able to identify the sources of profit and loss in his trade. A similar
survey for the grocery trade was conducted by the Department in 1929 in
Louisville, Ey. That survey embraced both wholesale and retail grocery
establishments in Louisville.
The importance of the drug store survey now being undertaken was
empha.sized by Representative Cochran (Dem.), of St. Louis, Mo., in an
oral statement Mar. 24. Mr. Cochran said it would be helpful to manu-
facturer, merchant, and consumer alike. . . .
The Department of Commerce statement announcing the beginning of
the survey follows in full text:
Commencement of active work on the national drug store survey to be
made by the United States Commerce Department in St. Louis, Ito., was
announced to-day (Mar. 24) by William L. Cooper, Director of the Bureau
of Foreign and Domestic Commerce. Under the guidance of a group of
trade specialists of the Bureau the recording machinery was set in motion
for what is expected to be one of the most comprehensive studies of retail'
Flour Output Continues to Decline.
any field.
General Mills, Inc. summarizes the following compara- merchandising ever undertaken in
Confronted.
Problems
New
tive flour milling activities as totaled for all mills reporting
"The rapidly changing conditions of modern retail selling make it imperain the milling centers as indicated.
tive that merchandising methods keep pace with the trends," Mr. Cooper
PRODUCTION OF FLOUR.
said. "In no line is the effect of altering conditions more apparent than
in the drug store. The buying public has come to look to the druggist
Cumulative
Cutnulative
for a wide range of merchandise that a few years ago was totally foreign
Production
Production
Production
Production
to his field. With these new commodities have come new problems as to
Four IVeeks
Since June
Same Period
Same Period
proper methods of marketing, and the need for closer cost accounting and
1930.
Ended Mar.28.
Year Ago.
1929-1930.
more effective systems of stock control.
Barrels.
Barrels,
Barrels.
Barrels.
"The central aim of the national drug store survey is to present such a
Northwest
17,214.908
1,720,063
1.579,272
17,598,794
detailed analysis of the retail drug business that the druggist will be able
Southwest
19,110,286
1,912,569
1,749,442
19,731,580
Lake Central and
to identify the sources of profit and loss in his trade. With this informaSouthern
19,409,533
1,833,445
2.107,437
19,321,564
tion at his hand he will be in a position to take steps to increase his
Pacific Coast
254,620
301,578
3,282.588
3.679,222
profits and improve service through the elimination of unprofitable items
Grand total.-and reduction of unnecessary waste.
58,997,315
5,416.779
6,041,647
60,331.160
The national drug store survey thus is seen to be in line with the general
Note.-This authoritative compilation of flour mil Ins activity represents approxieffort of the Commerce Department to place in the hands of American
mately 90% of the mills In principal flour producing centers.
2470
FINANCIAL CHRONICLE
business the merchandising information which will enable it to wage
effective war against the alleged $10,000,000,000 annual nation-wide loss
from distribution waste."
Report on Monthly Sales of Buffalo Drug Stores.
The Bureau of Business and Social Research of the University of Buffalo, Buffalo, N. Y., made public on Mar. 23
the following report on monthly sales of drug stores in
Buffalo:
With the co-operation of druggists of Buffalo we are able to present
this month a comparison of the monthly total sales of 33 drug stores in
this city for January and February 1931. For every $100 of sales in
January 1931 the drug stores of the city sold $105.86 in February, after
proper allowance for the number of days in the month. This is believed
to be the first attempt in the United States to furnish current sales figures
for retail drug stores. The stores have been selected, according to character and location, so as to provide a representative sample of the drug
store business of this city.
The actual total sales of these 33 stores (including 19 "independent"
stores and 14 "chain" stores) were $162,595 in January and $155,475 in
February. Since February contains only 28 days, the January total is
reduced to a 28-day basis for comparison, and the totals are as given in
the table below, showing a gain in February sales of 5.9% over the
preceding month.
The above figures are useful as an indication of tendencies in retail
sales generally, but are not exactly representative of the Buffalo drug
store business, because they are too heavily weighted with chain stores.
If the results of the Eleven City Census of 1928 be accepted, about 70%
of retail drug store sales are by independents and 30% by chain stores.
Applying these proportions to the sales of chain and independent stores
for these two months in Buffalo, it is found that February sales show a
gain over January of 7.28%.
January
February
Sales.
Sales.
33 Stores (unadjusted)
$162,595
$155,475
Adjusted for days of month
146,860
156.475
Unweighted adjusted index
100.00
105.86
Weighted average of chain and independent stores_
100.00
107.34
More Than Usual Seasonal Increases Report in New England by Boston Federal Reserve Bank.
In February, says the Federal Reserve Bank of Boston,
"there were increases of more than the usual seasonal
amounts in many lines of general business activity in New
England, which caused a distinctly encouraging improvement from the low level which prevailed in January."
Further surveying the New England situation, the Bank,
in its April 1 Monthly Review says:
The textile industry has been reported as increasingly more active
since the first of the year, and the amount of raw cotton consumed in
New England mills in February again increased from the preceding
month as it did in January from December. Cotton mills in this district have been reporting more orders in hand, and the cloth markets
have been steady during recent weeks. Raw wool consumption in February increased considerably from January, and exceeded the amount
consumed in February a year ago. Production of boots and shoes by
factories in New England during February is usually substantially
larger than in Jannary, and this year the increase was more than seasonal, bringing the total number of pairs produced nearly up to the
number reported for February, 1930. Between January and February
increases were recorded in the number of wage-earners, average weekly
earnings, and aggregate payrolls of manufacturing establishments in
Massachusetts which report to the Department of Labor and Industries.
The increases amounted to 2.5, 1.5, and 4.1%, respectively. Woolen
and worsted goods mills and boot and shoe producers reported substantial increases in aggregate payrolls, and the number of wage-earners
employed likewise increased considerably in these industries. In February the total value of building contracts awarded in New England
was approximately 34% greater than in January, and also exceeded that
of the corresponding month a year ago by about 10%. Although increases occurred in the volume of new contracts awarded for residential building and commercial and industrial building during February,
an adjusted index for each of these divisions stood at 51.5% and 48.5%,
respectively, of the average month of 1923-25 as 100%. The volume
of new ordinary life insurance written in February in this district was
materially less than in the corresponding month a year ago, making
a second consecutive decline from the amount reported for 1930. Although the number of commercial failures in New England during February was smaller than in January and less than in February, 1930, an
increase of about 16% in total liabilities was recorded over February a
year ago. Sales of reporting New England department stores in Feb-ruary were 9.3% less than in that month last year, with declines
reported in each New England state. Between February, 1930, and
the same month of 1931 in Boston stores there were decreases of 6.1%,
14.4%, and 16.6% in cash sales, in regular charge sales, and in instalment sales, while the corresponding declines in New England stores
outside of Boston were 13.4%, 15.3%, and 30.4%, respectively.
Further Seasonal Expansion in Business Reported by
Cleveland Federal Reserve Bank—Conditions in
Rubber and Tire Industry.
A further expansion in business in the Fourth District
(Cleveland Federal Reserve District) was evident during
the past month, says the Federal Reserve Bank of Cleveland, which notes that the improvement was chiefly of a
seasonal nature and operations are still much below normal.
The Bank, in its "Monthly Business Review", dated April 1,
continues:
Manufacturing activity in February and early March in this district
appears to have been benefited to a greater extent than in the entire
country, chiefly because of the large amount of iron and steel produced
[you
132.
locally and because of the importance to many concerns of increased
activity in the automobile industry.
After allowing for seasonal variations, automobile production increased
over 8% in February, and based on weekly production reports, a further
improvement was attained in March. This was reflected in operations at
auto parts factories in the central and northern parts of the Fourth District.
It also had a very favorable effect on the steel industry of this section,
and the slight lag in operations apparent last month disappeared. Production at Cleveland mills was at 70% of capacity in the third week
of March, having advanced from 53% in February, principally because of
increased demand for theets and bars from automotive concerns, and for
general wire products.
Activity at clothing and textile factories, stimulated somewhat by an
early Easter, increased by more than the usual seasonal amount and
employment at these concerns advanced five points in comparison with a
five-year average increase of 2%. Shoe production also expanded more
than seasonally, a 16% increase in output being shown in February. Operations at china and pottery centers improved more than the usual amount.
Retail trade also was larger in February after allowing for the difference
in the number of business days.
The improvement shown, however, was by no means general, weakness
still being observed in several lines. Operations at Ohio glass factories
increased in February, but at those in western Pennsylvania were smaller
than in January. Coal production declined both from January and last
year, and building activity remains at very low levels. The rubber and
tire industry continues to show irregularities, little change being evident
in production after allowing for seasonal variations. The agricultural situation is quite unfavorable, though recent rains have largely corrected the
drouth deficiencies which have existed for many months.
We quote from the "Review" the Bank's further comments regarding conditions in the rubber and tire industry:
Rubber Tires.
The rubber and tire industry continued to show irregularities, with
production showing little change after allowing for seasonal variations.
Employment reports showed a decline of 3% in February from the preceding
month in the number of persons working at 19 concerns. This compared
with relatively little change in similar periods of the past five years. The
number employed in February was 26% below one year ago, a general
downward movement being observed since last May.
Output of tires in January, the latest available, increased 81% from
December, most of which was seasonal. Last year production expanded 46%
In January, but in 1929 and 1928 the increase was about 20%. Compared
with one year ago, production was down 18%. Shipments during January
exceeded production for the third consecutive month and inventories showed
a further slight reduction.
Reports received during the past month from individual companies are
somewhat conflicting. Some concerns stated that little change is evident
In the general tire situation, while others reported an improvement in early
March. One large manufacturer reported a tendency on the part of
dealers to order in larger volume, shipments to be made by express, than
was true in early February or one year ago.
Prices of raw materials continue at low levels, and manufacturers by
this time have worked off most all the high-priced materials and are now
in position to benefit from the lower raw material costs.
Imports of crude rubber in February totaled 36,646 long tons against
43,728 last year and 37,098 tons in January. Stocks continue large, with
rubber still being produced in excess of present requirements, and bringing
a price below production costs in most cases. This has resulted in a new
restriction proposal based upon a Compulsory (legislative) restriction
Plan coupled with taxation system on exports of native plantations.
In its survey of retail and wholesale trade conditions,
the Bank says:
Retail sales of principal department stores in the Fourth District, on a
daily average basis, were slightly larger in February than in the preceding
month, the improvement being just about the usual seasonal amount. The
index of sales, therefore, remained unchanged in February, but at 86%
of the 1923-1925 average was lower than for any month since August 1922.
Compared with one year ago, February sales were down 10.8% and in the
first two months there was a decline of 8.4% from the same period of
1930. As has been pointed out previously, an unmeasumble part of this
drop can be accounted for by the reduction in retail prices. In the individual cities, Toledo stores reported an increase of 3.7% in February, but
all other cities showed decreases ranging from 9 to 19%.
Stocks were 6.5% larger at the end of February than a month earlier,
being increased in preparation for Easter buying. Despite the expansion,
they were still 14% below those carried one year ago. It is apparent
that retail stores are now operating on a proportionately smaller volume
of stocks, the monthly dock turnover being at a rate exceeding three times
a year in both January and February. Accounts receivable on February 28
were 7.4% smaller than one year ago, the largest part of the decline being
in installment accounts. Collections were down 17%, and the ratio of
collections to accounts receivable was slightly under one year ago.
Sales of wearing apparel stores declined in about the same proportion
as department store sales. Furniture store soles continue at very low
levels, being 27% below February last year. Sales of furniture departments of 34 department stores were only 13% smaller in February than a
year ago.
Wholesale trade in all lines continues in a very unfavorable way. Grocery
sales were 18% smaller than one year ago in February. Dry goods and
hardware sales were down 31% and drug sales showed a decline of 6.4%.
Chain store sales, on a unit basis, are holding up better than other
types. Chain grocery sales were 9% smaller in February than a year ago,
and chain drug sales were only 1.2% smaller than in February 1930.
Real Estate Market in Philadelphia Federal Reserve
District Quiet.
According to the April 1 Monthly Review of the Philadelphia Federal Reserve Bank "activity in the construction and contracting industry declined in February by
about the usual seasonal amount and continued at levels
cosiderably below those of recent years." Construction
costs increased slightly in February but were the lowest
for that month since 1922 says the Bank which also has
the following to say regarding building and real estate:
2471
FINANCIAL CHRONICLE
APRIL 4 1931.]
The value of contracts awarded for new construction was somewhat terings of cattle and calves. Daily production of cigars increased further
larger than in January although it was considerably smaller than in by a larger amount than was to be expected while that of tobacco and
February, 1930. Awards for residential buildings increased sharply snuff declined from January.
The groups comprising transportation equipment and fabricated metal
last month and were larger than a year ago; contracts let for commercial buildings also showed a gain, while those for public works and utili- products sustained declines in their output when the necessary allowance
ties and factories declined and were substantially smaller than a year is made for seasonal changes. Gains made during February in production
earlier.
of such items as pig iron, steel castings, and structural steel were more
Ii the first fortnight of March, awards for public works and utilities than offset by declines in the output of a great variety of other products
increased noticeably while those for residential and non-residential con- included in these groups. Nevertheless, operations of steel and other
struction were appreciably smaller than in February; the value of total plants during March showed some expansion.
awards, however, continued upward but remained substantially smaller
As a result of a seasonally active demand, the output of some of the
than a year ago. The proposed expenditure under permits issued in basic building materials increased noticeably during February. This is
seventeen cities increased and was the largest since November, although especially marked in the case of brick and cement though not of lumber.
it was by far the smallest for February in several years.
In consequence of curtailed production in earlier months and of larger
The real estate market remains quiet although there has been more purchases by construction concerns, stocks of cement in February were
inquiry regarding the purchase of moderate and lower priced homes. lower than in the same month of the past four years. Prices of building
Such improvement as has taken place in the renting demand for houses materials showed further declines in February but changes in the first
and apartments has been restricted largely to dwellings renting at rela- three weeks of March were insignifiant.
tively low rates. Funds for second mortgages remained scarce and unusual caution is still being exercised in extending first mortgage
money.
Increase in Daily Production of Hosiery in the PhilaBoth the number of deeds and the value of mortgages recorded in
delphia Federal Reserve District in February.
Philadelphia County declined sharply in February and were the smallest
for that month in recent years. Foreclosures, after declining from the
Daily production of hosiery increased 4% from January
unusually high peak reached in January, rose sharply in March and
to February, according to preliminary reports from 135
exceeded those of any like month on record.
hosiery mills to the Bureau of the Census and released by
the Philadelphia Federal Reserve Bank. This gain, says
Philadelphia Federal Reserve Bank Reports More Than the Bank, was due chiefly to women's full-fashioned hosiery,
Seasonal Improvement in Business.
which made up nearly two-thirds of all the production cov"Somewhat more than seasonal improvement in in- ered by these reports. The Bank's survey continues:
Shipments showed a gain of 26% over January, all types of hosiery
dustry and trade occurred during February, following
'ring in this increase. Stocks at hosiery mills at the end of February
the extraordinary low level of activity that marked the sh
were reduced by 7%, men's full-fashioned alone showing a slight gain
previous month," says the Federal Reserve Bank of over the previous month.
Orders booked by mills during February showed a noticeable gain, but
Philadelphia, in summarizing in its Monthly Review,
unfilled orders showed a decline of ne rly 1% at the end of February.
dated April 1, conditions in its District. The Bank conPRELIMINARY REPORT ON THE HOSIERY INDUSTRY BY 135 HOSIERY
tinues:
RESERVE DISTRICT
IN THE
The upturn was broadly diversified, not confined to a few lines of
highly seasonal character. Preliminary returns for March indicate that
the spring gain continues well sustained, though at substantially lower
levels than in several past years.
Loans to customers have not increased despite the recent increase in
business activity, but the banks have added to their investments. Discounts at the reserve bank declined and the reserve position continues
exceptionally strong. Money rates are steady at the lowest level in years.
Manufacturing.
The demand for manufactured products showed a little larger gain
than usual in February and was well maintained in the first half of
March. Wholesale prices of manufactured products showed a further
decline in February but since the latter part of that month fluctuations
have been negligible.
Orders on the books of manufacturing concerns generally have increased somewhat since the middle of last month. This is especially
noticeable in most textiles, shoes and leather, and some of the building
materials. Stocks of finished goods have declined further in the month
and are noticeably smaller than a year ago.
Factory employment in this District increased a little more than usual
from January to February but it was 17% lower than in February, 1930.
Wage payments advanced 3% from the previous month but were almost
30% below the level of a year earlier. This upturn from the exceptionally low point reached in January was the first change for the better
since the fall season. The index of employe-hours worked also rose 3%
in Pennsylvania and 5% in Delaware, indicating a higher rate of plant
operations in February than January.
More than seasonal gains in employment occurred in the textile, food
and tobacco, stone and clay, lumber, chemical, and leather and rubber
industries. The transportation equipment and paper and printing groups
showed declines, while a slight increase in the metal group was less than
customary. Wage disbursements showed striking increases from January to February in textiles, foods, some of the building materials, leather
and rubber products, and paper and printing, while metal products and
transportation equipment reported slight further recessions.
Our preliminary index of productive activity, which is corrected for
the usual seasonal variations, was 4% higher in February than January,
the latter month being the lowest in output of manufactures in the past
eight years. Seven out of nine manufacturing groups reported larger
gains in output than is ordinarily expected for February, while production of transportation equipment and metal products failed to measure
up to the expected schedules.
The textile industry recorded by far the most pronounced gains from the
exceptionally low level prevailing in January. Increased output occurred
in such major branches as woolen and worsteds, cotton, knit-goods, floor
coverings, and silk, although the demand for thrown silk, cotton yarns,
and rayon has been somewhat hampered by labor difficulties in hosiery
and upholstery mills. Daily mill takings of wool fibers by local factories
increased by a larger amount than is customary. Deliveries of silk and
cotton fibers also showed marked daily increases from January even
though they continued in smaller quantities than in the past two years.
Prices of textile raw materials and other products in the first three weeks
of March fluctuated within a narrower range than in many weeks before
and lately they even showed some advances.
In response to an active demand, shoe factories showed more than
seasonal expansion in their schedules. The daily output in February
increased sharply for the second successive month after a marked falling
off in the latter part of last year. There has also been some improvement in the bide market. Hide prices have advanced recently but they
continue lower than a year ago; they are also below the pre-war level.
The situation in the leather industry likewise shows some betterment and
local tanneries are more active though at levels materially lower than
in the past six years. Weakness in prices is still noticeable.
Seasonal upturn is evident in chemical and allied products. The
daily output of explosives and by-product coke continued on the increase.
Production at petroleum refineries also showed a decided improvement.
The increase in paints and varnishes, on the other hand, was somewhat
smaller than is normally expected.
The manufacture and preparation of food products, while continuing
at lower levels than in past years, showed gains in the output of bread
and bakery products, sugar, canned and preserved goods, and in slaugh•
MILLS
PHILADELPHIA FEDERAL
FROM DATA COLLECTED BY THE BUREAU OF CENSUS.
PERCENTAGE CHANGES FROM JANUARY TO FEBRUARY 1931.
Boys
WOMR11.11
Men's
Misses'
/wFull- Beans- Pull- Seam- and
rong. faard. less. lash'd. less. CNN's. Janis.
Hosiery knit during
month •
+3.7 -20.1 -0.7 +5.7 +14.9 +4.0 -7.7
Net shipments during
month •
+26.2 +29.6 +14.1 +19.7 +107.1 +59.9 +8.6
Stock on hand at end of
month, finished and In
the gray
-7.2 +1.2 -3.3 -3.4 -20.8 -16.6 -15.1
Orders booked during
+10.8 +4.4 +9.2 +3.7 +8.5 +72.1 -12.2
month
Ratio of cancellations
In February to unfilled
orders on hand at end
0.1
5.1
of January
3.0
0.6
1.0
4.7
Unfilled orders at end of
Innnth
-0.9 +4.7 +3.6 +7.1 -42.3 -15.9 -39.6
*Calculated on working day basis.
Chicago Federal Reserve Bank Reports Gains in Midwest Distribution of Automobiles-Orders Booked
by Furniture Manufacturers.
The following on manufacturing conditions is from the
Mar. 31 Monthly Business Conditions Report of the Federal
Reserve Bank of Chicago:
Automobile Production and Distribution.
Production of passenger automobiles in the United States expanded
during February for the third consecutive month. The increase of 30%
over January was Innen larger than for the same period a 3e,r ago, although
output of 151.735 compared with 280.906 in February 1030, representing
a decline of 35%, and tot 'led 55% below the same period of 1929. Trucks
produced during the month aggregated 37.633, gaining 19% over the preceding month and declining 22l.% from last Febraury.
Substantial gains were shown in February over January in distribution
of automobiles in the Middle West, although the increases in both wholesale and rut- us-le.s flied to equal those recorded a year ago for the same
period. Comparisons with February 1st year were unfavorable. Almost
half the retail de,lers. however, reported sales equal to or larger than last
Febrtv ry. In contr: St to the usual upward trend, stocks of new cars in
de..lers' hands changed little between the nd of January and February 28.
Used car sales mare sed considerably during February and were only 3%
under a year ago. The number on hand showed a slight gain over a month
previous and a snr,11 decline in value. Stocks of both new end used cars
remained considerably lighter than last ye..r. Deferred payment sales,
though constituting a somewhat larger portion of the tot:-.1 retail sales of
de-lers reporting the item, were below a year ago. the ratio of 44% this
February comparing with 41% a month previous and 50% 1st February.
MIDWEST DISTRIBUTION OF AUTOMOBILES.
Changes In February 1931 from previous months.
Per Cent Change From
New cars
WholesaleNumber sold
Value 2
RetailNumber sold
Value
On hand February 28Number
Value
Used cars
Number sold
Salable on handNumber
Value
companies
Included.
January
1931.
February
1930.
+37.7
+38.9
-34.1
-36.8
25
25
+45.7
+45.1
-20.2
-15.9
53
53
+0.4
-0.6
--43.2
--39.1
54
54
+25.5
--2.9
54
+0.8
-2.6
--31.0
--42.2
54
54
[Vox.. 132.
FINANCIAL CHRONICLE
2472
reported toe largest percentage gain, with 215.3%. Chicago increased
186% and the 23 reporting cities outside the metropolitan area increased
18.8%. The increases were mainly due to gains by non-residential building, although residential building also showed some improvement in each
of the three classifications. Chicago reported an increase in total valuation of 41.4% above February a year ago. The suburban cities, however, decreased 12.7% from last February, and the cities outside the
metropolitan area decreased 39.5%.
Most of the Chicago total was accounted for by permits for four school
buildings, with a combined estimated cost of $6,250.000. Permits for a
$200,000 church and a $350.000 hospital were also issued.
Fifteen of the 21 suburban cities reported a larger valuation than in
January and 10 reported a larger valuation than in February 1930.
Increases for Cicero, Maywood and River Forest were caused by permits
Industrial Employment Conditions in Chicago Federal for school buildings; the increases for Berwyn. Evanston and Forest Park
Reserve District-Fair Recovery From Recent Low mainly to residential construction: and the increase at Lake Forest mainly
to a permit for an amusement place.
Levels.
Among the 23 reporting cities outside the metropolitan area, 12 reported
"Monthly
its
in
Chicago,
larger valuation than in January, and 12 a valuation larger than in
a
of
'Bank
The Federal Reserve
a year ago. The large increase for Alton was due to permits for
Business Conditions Report", issued Mar. 31, states that "a aFebruary
convent and a school, and the increase for Rock Island to a tuberculosis
emmanufacturing
of
levels
low
recent
from
fair recovery
sanatorium.
Of the total valuation for all reporting cities, 15.1% was for residential
ployment and payrolls was indicated for February by reportbuilding. 79.3% for non-residential building, and 5.6% for additions,
ing firms in this [the Chicago] district" The bank con- alterations,. repairs and installations. For Chicago, the corresponding
percentages were 8.9, 86.7 and 4.4; for the suburban cities, 31.6, 61.0 and
tinues:
The expansion in numbers employed was small in most lines and averaged 7.4: and for the remaining cities, 41.1, 46.5 and 12.4
A total of 203 residential buildings were authorized during February
about 1% of the 10 groups, but significant increases in working time at
These buildings were to provide for 252 families
many plants gave rise to a 5% gain over the middle of January in aggre- for all reporting cities.
to cost $1.625,985. Eighty-six of these buildings were
gate payrolls. This enlarged employment brought these groups to slightly and were estimated
Chicago, providing for 128 families at a cost of $731,200:
under the December 1930 figure, while payrolls rose to approximately the to be erected in
39 were to be erected in suburban cities, providing for 42 families at a cost
figure for last November.
Of $454,630: and 78 were to be built in cities outside the metropolitan
Expansion in manufacturing activity is customary in February, and the
area, providing for 82 families at a cost of $440,155.
upward turn recorded compares favorably with the usual February trend,
During the month permits were issued for 307 non-residential buildings,
even exceeding the increases of February 1930. However, in view of the with a total estimated cost of $8,541.150. Of this total expenditure,
continuous declines of the previous 11 months, February 1931 employment 83.9% was for Chicago buildings. 10.3% for buildings in suburban cities,
was about 80% and payrolls were about 70% of the February 1930 level.
and 5.8% for cities outside the metropolitan area. Permits for 506 addiThere was a noticeable lack of uniformity in trend between sections of tions, alterations, repairs and installations were issued during February,
the district and between specific industries. Industries in Wisconsin involving a total cost of $602,077. Sixty and two-tenths per cent of this
showed a relatively greater increase than in other portions of the territory total was to be expended for Chicago buildings, 17.7% for suburban
surveyed. Among the specific industries reporting better than average buildings, and 22.1% for buildings in the remaining reporting cities.
gains throughout the district were several of the iron and steel lines,
During the first two months of the year permits have been issued for
automobiles, knit goods, men's and women's clothing, shoes, furniture, 1,769 buildings, with a total estimated cost of $15,234,612. These figures
paints, brick, and miscellaneous groceries.
represent decreases from the first two months of 1930 of 11.7% in number
Non-manufacturing totals, including several groups characterized by of buildings and 8.8% in estimated cost. The decrease in valuation from
the
of
registered
months
year,
three
or
two
first
the
seasonal slackness in
last year for Chicago was 3.7%, for the suburban cities 17.6%. and for the
further recession in both number of men and aggregate wages. These cities outside the metropolitan area 24%. Ten of the 21 reporting suburban
declines account for the failure of the total of all groups to show a more cities reported an increase over the first two months of last year, and 11
of the cities outside the metropolitan area also reported such an increase.
favorable trend.
The decrease from last year for all cities combined was due mainly to a
A reduction of the labor surplus in towns where free employment offices
of
ratio
the
in
applicants decline of 52.2% in residential building. Non-residential building increased
are located is indicated by the declines shown
to jobs available. The increase in this ratio for Wisconsin was due to an by 29.1%. In Chicago residential building decreased 68.6% while nonresidential building increased 45.1%. For the suburban cities both types
unusually large number of registrations at one office.
of building decreased, but the non-residential decrease was only 7.4%
REGISTRATIONS PER 100 POSITIONS AVAILABLE AT FREE
while the decrease in residential building was 21.5%. Among the cities
EMPLOYMENT OFFICES.
outside the metropolitan area, non-residential building suffered most
Iowa.
Indiana.
Illinois.
Wisconsin. heavily, with a decline of 26.6%, while residential building decreased 5.5%.
Month.
Furniture.
Furniture manufacturers in the Seventh district booked orders during
the month of February aggregating only 19% under those of the preceding
month, as compared with an average January-to-February decline of 26%.
Shipments, despite heavy cancellations in February, increased twice the
usual amount for the month-by 48%. Unfilled orders fell off slightly
from a month previous and stood at the close of February at 84% of orders
booked during the month, an increase of 12 points over the 72% obtaining
at the close of January. In the year ago comparison, orders booked,
shipments, and unfilled orders were 19, 30 and 27% lower this February.
The average rate of operations maintained was 53% of capacity, comparing
with 48% in January and 63% a year ago.
471
123
250
250
1931-February
158
497
230
331
January
181
348
188
248
1930-February
315
198
184
257
January
-SEVENTH
FEDERAL
EARNINGS
RESERVE
EMPLOYMENT AND
DISTRICT.
Weat Ended
Feb. 15 1931.
Industrial Group.
No. of Number
Reporeg of Wage
Firms. Earners.
P.C. Changesfrom
Jan. 15 1931.
EarnWage
Earnings. Earners. ings.
+1.0
+1.2
+7.4
-2.1
7
249
157,502
28.524
27,811
49,929
9.305
24,418
11,322
14,388
2,785
31,909
23,932.000
898.000
585,000
1,285.000
226.000
475.000
297.000
262.000
41,000
925,000
+2.7
+2.3
+2.4
+1.2
-2.2
+4.6
+13.8
+23.7
-2.6
+8.8
+14.9
+10.0
+11.8
--5.3
--1.8
1,830
178
73
30
194
357.889
29.017
87.665
8,561
6.926
88,704,000
741,000
2.954.000
183.000
180,000
+0.9
-6.6
-1 0
+0.8
-12.8
+5.4
--4.5
-0.5
--4.8
--14.5
475
132,189
4,058.000
-2.9
-2.2
2.305 489,838 12,782,000
-0.1
Total, 14 groups
a Other than vehicles. b Wisconsin only. c Illinois and Wisconsin.
+2.8
Metals and products_a
Vehicles
Textiles and products
Food and products
Stone, clay and glass
Lumber and products
Chemical products
Leather products
Rubber products b
Paper and printing
P Total manufac'g, 10 groups_
IMerchandtsing_c
Public utilities
Coal mining
Construction
Total non-manufateg.4 groups
634
66
137
332
120
237
80
es
Review of Building Situation in Illinois During February-Gain Reported by 45 Cities over Previous
Month.
Howard B. Myers, Chief of the Bureau of Statistics of
the Illinois Department of Labor states that 45 Illinois
cities reported for February a total gain over the preceding
month of 34.9% in number of buildings authorized by
permits and 141.2% in the volume of estimated expenditure on such buildings. The total estimated expenditure
for February 1931, was 16.3% above that for February
1930. Mr. Myer's survey continues:
While building activity, as shown by the expenditure authorized by
Permits, normally increases in February, the percentage increase this
year was considerably larger than the normal, a fact which may indicate
some recovery during the coming spring from the extremely low level of
building activity during 1930. It should be noted, however, that the
total of 810,769.212 for February this year was small despite the increase
-except for February 1930, it is the lowest figure shown for this month
by the records of the Department of Labor.
All three of the major geographical classifications shared in the increase
4n valuation from the previous month. The 21 reporting suburban cities
Mr. Myer's statistics follow:
TABLE 1.-TOTAL NUMBER AND ESTIMATED COST OF BUILDINGS
BASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES IN FEBRUARY
1931. BY CITIES.
Feb. 1930.
Jan. 1931.
Feb. 1931.
No. of Estimated No. of1 Estimated No. of Estimated
Cost.
Bidet.
Cost.
Bldgs.
Cost.
Bldgs.
Cities.
$
1,016 310.769.212
Total all cities
8431 9.897.804
Metropolitan area
Chicago
Metropolitan area, excluding ChicagoBerwyn
Blue Island
Cicero
Evanston
Forest Park
Glencoe
Glen Ellyn
Harvey
Highland Park
Kenilworth
La Grange
Lake Forest
Lombard
Maywood
Oak Park
Park Ridge
River Forest
West Chicago
Wheaton
Wilmette
Winnetka
'
Total outside metropolitan area
456
8.258,910
187
1,440,894
17
13
9
22
10
8
8
12
10
1
1
11
8
9
14
6
5
.
6
18
4
373
$
a
753 84.485.400 01,211 2a9.281.080
3.561,659
712
7.489.398
365, 3.104.660
,
458.999
1081
508
5.839,590
204
1,649.808
23
5
18
44
12
3
4
8
12
31.650
3,200
238.835
930,500
13,100
27.800
2.650
8,740
92,500
473
12.000
4.025
53.070
27.000
6,110
58.350
25.500
4.945
5,400
7.700
3,500
1
58,450
4
19,854
9
161.875
8
71,250
5
82,770
5
11.500
7
32,078
4
4.495
3
25.850
4
18.500
3
1.000
149.858 2
5,275
18
193.725
13
23.085
6
45.550
2
448.298
600
88,390
23.625
30.300
18,700
2
8
4
18
12
15
3
2
27.500
35.782
66.450
10.310
29,850
81,986
8.800
5,230
13,400
55,335
18.550
3
10
3
33.000
53,884
4,100
4
9
1,950
38,975
1,071.608
280
903,741
499
1,771,882
21
15
1
8
7
1
7
21
89
11
4
13
34
4
57
193,174
24.300
200
53,000
142.148
11,520
101
Alton
20
181
17.077
42,518
27
Aurora
200
1
4.000
1
Batavia
159,000
7
2
84.000
Bloomington
10,000
4
Canton
Centralia
12,015
8
3,650
a
Danville
35,250
15
83,000
13
'
Decatur
18
52,350
17,950
21
East St. Louis
7
8,945
45.550
30
Elgin
28,988 ..
9
Freeport
17,000
2
Granite Ow
27
79,500
17
76,500
Joliet
3,450
3.000
3
I
Kankakee
22
81.435
84.701
Moline
28
2.500
1
Murphysboro
7
39.800
87.000
9
Ottawa
gg
41
90,125
124,750
Peoria
2,100
4
50,210
7
Quincy
24
Rockford
57,750
35,635
88
81
31
Rock Island
123,381
11,980
42
35
Springfield
90,110
68,605
18
83,850
50.530
14
Waukegan
a These revised totals Include corrections in the figures for Rock
8.131)
6,000
8,400
21,800
160,311
8.335
19,500
18,500
75,680
3,140
45.558
7
7.500
83
217.480
12
12,325
83
163,560
33
8853
41
837,096
14
5520
Island.
TABLE 2.-TOTAL NUMBER AND ESTIMATED COST OF BUILDINGS
BASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES FROM JANUARY
THROUGH FEBRUARY 11131, BY CITIES.
Jan.-Feb. 1931.
Jan.-Feb. 1930.
No. of I Estimated
Bldgs.
Cost.
No. of Estimated
Bklgs. I
Cost.
Total all cities
1.7691 $15,234.612 a2,004 416.697.937
Metropolitan area
1.116
13,259.263
1,2151
14,100.752
Chicago
821
11,361,570
987
11,796.615
Metropolitan area excluding Chicago...
295
1.897.693
318
2.304.137
18
17
18
30
15
13
15
16
13
5
4
11
8
25
27
12
7
..
8
26
7
70.450
23.879
214,945
98.250
88.880
67.850
57.576
9.440
31,250
26.200
4.500
149.858
5,875
283,115
46.710
75.850
464,996
37
13
22
58
18
14
5
12
23
120.600
11.225
260.985
1,018.500
25,300
119.550
27,650
8.282
123.150
6
18
6
20
19
15
8
4
1
13
72.000
105.731
67.000
14.008
95.025
81,986
35,950
21.655
9.000
14,865
71,675
653
1,975,349
789
2.597,185
Berwyn
Blue Island
Cicero
Evanston
Forest Park
Glencoe
Glen Ellyn
Harvey
Highland Park
Kenilworth
La Grange
Lake Forest
Lombard
Maywood
Oak Park
Park Ridge
River Forest
West Chicago
Wheaton
Wilmette
Winnetka
Total outside metropolitan area
2473
FINANCIAL CHRONT_CLE
Apitn, 4 1931.]
46,400
109,019
22,650
a
Alton
38
222,591
153,668
30
Aurora
59.593
32
57,585
45
Batavia
1
4,200
200
2
243,000
12
9
71,000
Bloomington
Canton
10,000
11
4
22.080
Centralia
1
6.000
Danville
15,665
--171
10
14,900
Decatur
118,250
28
39
68,100
East St. Louis
70,300
39
89
190,886
Elgin
52,495
37
34
39,271
Freeport
26,986
9
9
27,075
Granite City
17,000
2
8
18,000
Joliet
156,000
44
53
194,260
Kankakee
4
6.450
6
7,765
Moline
146,136
48
75
62,923
Murphysboro
2,500 .
1
Ottawa
106,300
12
16
25,000
Peoria
79
214,875
83
293,130
Quincy
11
52,310
19
67,725
Rockford
62
93,385
107
278,770
Rock Island
62
135,341
49
46,003
Springfield
77
156.715
70
787,721
Waukegan
30
134,180
31
96.200
a These revised totals Include correct ons In t is figures for Lombard and Rock
Island.
The gain for February over January of 11% in the dollar volume of
furniture and house furnishings sold by dealers and department stores was
smaller than usual for the period, and the decrease of 12% from the same
month of 1930 was somewhat larger than recorded in January. Installment
sales by dealers increased 21 and declined 14% in the respective comparisons. Stocks increased in the monthly comparison but totaled well
below those at the end of February last year.
Chain store trade, as reflected in sales of 20 chains operating 2,627 stores,
declined 5% in February from January. Average sales per store fell off
in the same amount, as little change was recorded in the number of units
operated. As compared with a year ago, total sales were less by 6% and
average sales by 10%, the number of stores increasing 4%. Practically
all reporting groups, which include groceries, drugs, five-and-ten cent
stores, cigars, shoes, furniture, musical instruments, and clothing, experienced declines in business from both a month and a year previous.
DEPARTMENT STORE TRADE IN FEBRUARY 1931.
Locality.
Chicago
Detroit
Indianapolis
Milwaukee
Other cities
Seventh District
Per Cent Change
February 1931
from
February 1930.
Ratio of February
P.C.Change
Collections
2 Months
to Accounts
1931 from
Outstanding Jan. 31.
1930.
Net
Sales.
Stocks End
of Month.
Net
Sales.
1931.
1930.
-11.2
-9.0
-10.0
-11.2
-8.8
--17.0
--I4.0
--I5.9
--6.0
--I8.0
-10.5
-11.4
-6.8
-10.4
-5.7
30.7
34.8
39.6
32.1
40.8
37.5
31:6
33.4
-10.2
-15.3
-9.8
34.3
37.0
Northwest Bancorporation Finds Conditions in Its
Territory Better Than Might Have Been Expected.
The Northwest Bank Review for March 20. published by
the Northwestern National Bank of Minneapolis, while
observing that "statements that can be made concerning
business and banking are still of a negative nature" adds
that "conditions here are better than might have been expected, or are better than they are elsewhere." It likewise
says:
Car loadings of revenue freight originating in the Northwest in the first
nine weeks of the new year totaled 762,313, including less-than-carload
shipments; the corresponding number in 1930 was 930,721. Freight shipments have been forwarded in volume somewhat more favorable, compared
with last year, than in the country at large. Check payments made through
banks, reflecting lowered price levels as well as business activity, continue
to run smaller in dollar volume than in 1930 and 1929. Of the 33 leading
cities in these ten states, only two show a larger volume over either of the
two preceding years-Dickinson, North Dakota, with a slightly larger total
Further Decline in Wholesale and Retail Trade in than in 1930 for the nine weeks ending March 4, and Sioux Falls, which
city still is able to maintain its lead over volume reported two years ago.
Chicago Federal Reserve District.
Payments by check in these 33 cities during the first nine weeks of 1931
According to the Federal Reserve Bank of Chicago, amounted to $2,506,516,000 as compared with $3,105,882,000 in 1930, and
"wholesale distribution of commodities in the Seventh $3,076,099,000 in 1929. This is a falling off of 19.2% from the same
considering
[Chicago] District continued to decline in the second month period in 1930, and 18.5% when compared with 1929, which, in quantity
the precipitate drop in prices, does not indicate any great decline
of 1931, the recessions in the majority of reporting lines of business transacted; our decline of about 19% in dollar volume is to be
being contrary to seasonal trend. In its further account of compared with a falling off in 141 of the largest cities of the United States
1930 volume and 46.0% from that of 1929.
wholesale trade conditions in its district, the bank, in its amounting to 26.8% from the
Northwest Stability Shown in Trend of Failures.
"Monthly Business Conditions Report", dated Mar. 31, says:
Both in number of 1930 commercial failures and in aggregate liabilities
Such were the declines in hardware sales of 21
/
2%, in dry goods of 3%, of firms involved, this region stands in a favorable position compared with
and in drugs of 7%, together with the failure of shoe sales to show a gain. that of the country at large, although our 1930 record is somewhat above
The decreases of 91
/
2% in grocery trade and of 9% in electrical supplies the average for the preceding ten years. In the light of everything conwere larger than usual for the period. Because of the dullness in February cerned the record is notable. Figures used are based on reports made perioditrade, comparisons with a year ago remained unfavorable, although with a cally by R. G. Dun and Company. For the United States as a whole, both
few individual firms, notably in groceries, business was better than last the number and amount of liabilities in 1930 were the largest ever recorded;
February. In groceries, hardware, drugs, and electrical supplies, ratios the number was 29% greater than the ten-year average and liabilities were
of accounts outstanding the end of the month to sales during the month 40% greater. In this region the number was 6% in excess of the 1920-29
were higher than in January or a year ago, while the ratio rose over the average and the amount was only 1% greater. Liabilities of failed commerpreceding month for dry goods, but was lower than for last February, cial concerns in these ten states in 1930 were exceeded in each of the five
years from 1921 to 1925; in subsequent years, up to 1930, such liabilities
and that for shoes showed an opposite trend.
were comparatively small-those of 1928, for example, being but slightly
WHOLESALE TRADE IN FEBRUARY 1931.
greater than those reported in 1920, a year in which almost any concern,
however tottering, managed to keep going. As for number of commercial
Per Cent Change
Prom Some Month Last Year.
Ratio Of
failures, the 1930 record in these ten states was exceeded in the years 1922,
Acc's. Out- 1925, and each succeeding year up to and including 1929. It is likely that
Commodity.
Accounts
Colstanding to
Net
the fact that a proportionately larger number of northwestern industries
Rates.
Stocks. Outstantrg. lectiont. Net Sales.
are concerned with the production and distribution of foods than obtains
--8.0
--7.9
Groceries
--7.7
--5.2
99.3
elsewhere, is responsible for our relatively better business stability; current
--17.2
--24.1
Hardware
--15.6
--31.6
323.0
evidence that this class of industry, foods, is one of the most stable, con--29.9
-24.7
Dry goods
--29.9
--37.7
384.2
Drugs
--6.4
--11.1
tinues to multiply.
--I0.0
--12.1
180.7
--12.6
Shoes
--17.9
--34.3
--19.4
554.3
According to data compiled by R. G. Dun and Company from its credit
Electrical supplies
--38.4
--23.5
--36.8
--9.8
173.0
records the number of business concerns operating in the United States in
The hank has the following to say regarding retail trade 1930 was 2,183,008, from which fact it is computed that the percentage of
mortality last year was 1.21, which indicates a relatively greater number
conditions:
then, since 1897. According
Aggregate sales of 106 reporting department stores In this district than has been recorded since 1915, and, before
business concerns operatdecreased 4% in February from the preceding month, as against a decline to the same source of information, the number of
percentage of mortality
of only 1% shown in the same period of 1930. An increase of 9% recorded ing in ten states in this district was 256,860; the
smaller proportunate
In the total for Detroit stores largely counteracted the effect of declines in these states was 0.99 in 1930, which indicates a
the national ratio. A
of 7, 121
/
2, and 11%, respectively, for Chicago, Indianapolis, and Mil- mortality than in all states combined-1.21% being
and liabilities of comwaukee stores, sales in other cities falling off only 5%. There were a few table is given elsewhere in this issue showing number
the preceding ten
Individual instances of gains being shown over February last year, but mercial failures in this district in 1930 and averages for
the total was less by 10% in the comparison, and trade in the first two years.
Last month a report was made concerning net sales of industrial, mercanmonths of 1931 likewise aggregated 10% under the corresponding period
utilities, operating in this
of 1930. As will be noted from the table, Chicago and Milwaukee stores tile, and miscellaneous companies, and revenues of
and for the full twelve
experienced the heaviest declines from a year ago of the larger cities. The territory, for the fourth quarters of 1930 and 1929,
bring the number of
rate of stock turnover for the year through February was very slightly in months of the two years named. Subsequent additions
and
for the annual figures,
231
excess of the same two months of 1930, as stocks continued to be main- concerns reporting for the quarterly period to
industrials
represent net sales
(figures
for
with
results
as
follows
to 247,
tained at a low level.
A decline of 7% took place between January and February in sales of and for utilities, gross revenues):
shoes by reporting retail dealers and department stores, although a number
FOURTH QUARTER
1930
of firms in the latter group showed increases in the comparison. Sales
No.
1929
$137,595,227
totaled 6% smaller than for last February, while those in the first two Industrials
202
$175,430,294
months of the year aggregated 5% less than in the corresponding period of Utilities
29
33,853,766
34,508,689
1930. Stocks expanded between January and February, but were slightly
smaller than a year ago.
231
$171,448,993
$209,938,983
2474
Industrials
Utilities
[VOL. 132.
FINANCIAL CHRONICLE
209
38
ANNUAL
$700,848,846
343,410,012
$779,517,766
336,558,976
$1,116,076,732
247
$1,044,258,858
Many Gains in Volume of Sales in 1930.
From this it is indicated that industrial (including mercantile and miscellaneous) concerns operating in this part of the country transacted a
dollar volume of business during the final three months of 1930 which was
21.5% less in amount than in the same three months of 1929, and that their
full year's volume, expressed in dollars, was 10.0% less. As stated a month
ago this is apparently a better result than obtained in the country at large.
Considering the downward price movement, the decline in dollar volume of
209 industrials is suprisingly small. Of these 209 reporting companies,
151 furnished estimates of percentage price changes which might be applied
to their individual 1930 sales figures in order to reduce them to the price
basis of the preceding year. With the price factor eliminated, adjusted
figures give a rough estimate of quantity volume. These adjusted figures,
together with those of 15 utilities furnishing similar estimates, indicate an
actual quantity increase in 1930 over 1929; the figures are as follows:
1930
1929
No.
(Adjusted)
(Actual)
Industrial
151
$394,672,113
$364,243,922
15
Utilities
53,173,425
50,590,854
166
I 447,845,538
$414,834,776
new business 2,555.000 feet. The same number of mills reported a decrease of 1% in production and an increase of 6% in orders compared
with the same week last year.
The Northern Hemlock and Hardwood Manufacturers Association, of'
Oshkosh, Wis., reported production from 19 mills es 2,022,000 feet, shipments 1,062,000 and orders 1,196.000. The 18 identical mills reported
production 10% less and orders 13% more than for the same week in 1930.
The North Carolina Pine Association, of Norfolk. Va., reported production from 88 mills as 5,452,000 feet. shipments 7,466,000 and new
business 5,335,000. The 49 identical mills reported production 38% less
and new business 58% less than for the same week a year ago.
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
production from 226 mills as 19,952,000 feet, shipments 21.941,000 and
new business 22.861.000. The 187 identical mills reported a decrease of
41% in production and a decrease of 12% in orders compared with the
corresponding week of 1930.
The Northern Hemlock and Hardwood Manufacturers Association, of,
Oshkosh, Wis., reported production from 19 mills as 2.877,000 feet, shipments 1.824,000 and orders 1,928.000. The 18 identical mills reported
production 44% less and new business 1% more than for the same week
last year.
CURRENT RELATIONSHIP OF SHIPMENTS AND ORDERS TO PRODUCTION FOR THE WEEK ENDED MARCH 28 1931 AND FOR 19
WEEKS TO DATE.
ProduoShip- P. C.
P. C.
Association,
lion
meats,
of
Orders
of
M Ft.
M Ft. Prod. M Ft. Prod.
Southern Pine:
Week-137 mill reports
39,142
38,115 97
36,309
93
Orders 7% Above Lumber Production Which
12 Weeks-1,663 mill reports
454,415 490,308 108
507,633 112
Continues Low.
West Coast Lumbermen's:
109,515
125,496 115
Week-222 mill reports
127,216 116
Lumber production continued low during the week ended
12 Weeks-2,682 mill reports......_ 1,198,100 1,262,848 105 1,359,045 113
Pine Mfrs.:
March 28 and orders were again above the cut by approxi- Western
28,104
26.877 96
Week-86 mill reports
26,669
95
234.675 328,445 140
12 Weeks-1,043 mill reports
307,791 131
mately 7%, it is indicated in reports from 785 leading hard- California
White & Sugar Pine:
Week-mill reports (no report).
wood and softwood mills to the National Lumber Manu10 Weeks-252 mill reports
57,065
152,218 267
149,288 282
facturers Association. Shipments from these mills were 8% Northern
Pine Manufacturers:
1,937
'
2,949
152
Week-7
mill
2,555 132
reports
above the cut which amounted to 209,001,000 feet. A week
12 weeks-84 mill reports
15,426
31,317 203
32,525 211
Hem lock&Hardwood(softwoods)
earlier 809 mills reported orders 15% above a combined No.
Week-19 mill reports
2,022
1.062 53
1,196
59
production of 213,950,000 feet. Comparison by identical
12 Weeks-325 mill reports
24,090
15,524 64
16,465
68
North
Carolina
Pine:
mill figures with the equivalent week a year ago shows- Week-38 mill reports
5,452
7,466 137
5,335
98
12 Weeks-1,083 mill reports
87,649 129
67,947
66,382
98
for softwoods, 455 mills, production 39% less, shipments
30 less and orders 24% less than for the week in 1930; for Softwood total:
Week-559 mill reports
186,172
201.965 108
199,280 107
hardwoods, 205 mills, production 42% less, shipments 23%
12 Weeks-7,132 mill reports
2,051,718 2,363,309 115 2,439,109 119
orders
11%
under
the
volume
for
and
the
week
a
less
year ago. Hardwood Manufacturers Inst.:
Week-226 mill reports
19,952
21,941 110
22.881 115
Lumber orders reported for the week ended March 28
12 Weeks -2,546 mill reports
213,083
248,569 117
265,479 125
1931, by 559 softwood mills totaled 199,280,000 feet, or Northern Hemlock & Hardwood:
Week-19 mill reports
1,824 63
1,928
67
2.877
7% above the production of the same mills. Shipments as
12 Weeks-325 mill reports
58,005
33.741 58
36,085
62
reported for the same week were 201,965,000 feet, or 8% Hardwoods total:
Week-245 mill reports
22,829
23,765 104
24.789 109
above production. Production was 186,172,000 feet.
12 Weeks-2,871 mill reports-a-.
271.088
282,310 104
301,584 111
Reports from 245 hardwood mills give new business as
total:
24,789,000 feet, or 9% above production. Shipments as Grand
Week-785 mill reports
209,001
225,730 108
224,069 107
12
-9,678 mill reports.-- 2,322,806 2.650.619 114 2.740,673 118
Weeks
the
same
week
were
for
reported
23,765,000 feet, or 4%
above production. Production was 22,829,000 feet. The
Association's statement further shows:
Canadian Pulp and Paper Exports in February Totaled
Unfilled Orders.
$10,934,205-Decline $456,098 from January and
Reports from 478 softwood mills give unfilled orders of 680.999.000 feet.
$2,613,728 from February 1930.
on March 28 1931, or the equivalent of 15 days' production. This is bised
Canadian exports of pulp and paper in February were
upon production of latest calendar year-300-day year-and may be
compared with unfilled orders of 528 softwood mills on March 21 1931. of valued at $10,934,205, according to the report issued by
775,851.000 feet, the equivalent of 16 days' production.
the Canadian Pulp & Paper Association. This was a deThe 419 identical softwood mills report unfilled orders as 663.000,000
feet on March 28 1931, as compared with 837,222.000 feet for the same crease of $456,098 from the previous months, says the
week a year ago. Last week's production of 455 identical softwood mills Montreal "Gazette" of March 25, which went on to say:
was 178,229,000 feet, and a year ago it was 293.469.000 feet; shipments
were respectively 193.596,000 feet and 275,217,000: and orders received
190.183,000 feet and 251.791.000. In the case of hardwoods, 205 identical
mills reported production last week and a year ago 20,639,000 feet and
35.303.000: snipments 21,962,000 feet and 28,685,000: and orders 21,848,000 feet and 24.518,000 feet.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 222 mills reporting
for the week ended March 28:
UNSHIPPED ORDERS.
NEW BUSINESS.
SHIPMENTS.
Feel.
Feet.
Feet.
Domestic cargo
Coastwise and
Domestic cargo
delivery ____ 47.684,000 delivery .._A82,830,000 intercoastal _ 46.185,000
28.230,000 Foreign
148,065.000 Export
26,903,000
Export
44,737,000 Rail
117,853,000 Rail
43.843.000
Rail
8,566.000
I.ocal
8,566,000
Local
Wood-pulp exports for the month were valued at $2,518,190 and exports
of paper at $8,416,015, as compared with $2,411,533 and 58,978,760 in
the month of January. Details for the various grades of pulp and paper
are as follows:
reUridUry Ivan.
$
365,838
1,368.073
378.761
362.162
19,834
23,522
reuruury ilrao.
Tons.
14.775
24.816
14.937
9,448
2,537
s
PulpMechanical
Sulphite bleached
Sulphite unbleached
Sulphate
Screenings
other
Tons.
11.624
20,351
8,137
5,581
1,107
448
Total
PaperNewsprint
Wrapping
Book, cwts
Writing, ewts
All other
47,248
2,518.190
86,511
3,567,070
144,236
959
1,243
178
8,086.266
91,036
15.526
1.815
221,572
163,204
1,434
4,041
215
9,418,742
151.041
37,336
3,084
370.660
435,128
1.815,782
751,669
521,789
42,704
127,216,000 TotaL
448.549,000 TotaL
125,496,000
Production for the week was 109,515,000 feet.
8.418.015
9.980.863
Total
For the year to March 21. 166 identical mil s reported orders 9.2%
above production, and shipments were 5.7% above production. The same
For the first two months of the year the exports of pulp and paper were
number of mills showed a decrease in inventories of 3.1% on March 21, as valued at $22,324,498. In the corresponding months of 1930 the value was
compared with Jan. 1.
$29,554,275, so that there has been a decline this year of $7,229,777.
Southern Pine Reports.
Details for the various grades are given below:
The Southern Pine Association reported from New Orleans that for
Two Months 1931.
Two Months 1930.
were
below
orders
shipments
3%
production,
and
137 mills reporting,
Tons.
Tons.
Pulp
shipments.
New
below
business
taken
dur5%
production
and
below
7%
26,189
794.065
38,595
Mechanical
1.085,822
ing the week amounted to 36,309,000 feet, (previous week 41,055,000 at Sulphite bleached
2,450.471
36,768
46,435
3,497,412
916.144
20,036
34.993
139 mills); shipments 38.115,000 feet, (previous week 42,273,000); and Sulphite unbleached
1,744,771
694,114
11.158
19.050
1,078.298
production 39,142,000 feet. (previous week 38,883,000. Orders on hand at Sulphate
2,904
74,929
4,748
84.361
the end of the week at 129 mills were 116.718,000 feet. The 122 identical All other
mills reported a decrease in production of 32%, and in new business a
97,035
4,929.723
141,821
Total
7.490,654
Pastedecrease of 23%, as compared with the same week a year ago.
297,598
16,728,203
362.977
21,028,668
The Western Pine Manufacturers Association, of Portland, Ore., Newsprint
2,086
201.230
2,833
Wrapping
279,317
reported production from 86 mills as 28,104,000 feet. shipments 26,- Book,
3.488
32,059
8,081
cwta
70,328
877,000 and new business 26,669.000. The 61 identical mills reported Writing,(mai
388
4,601
321
3.801
428.682
production 41% less and new business 20% lass than for the same week All other
681,507
of 1930.
fetal
17,394,775
22,063,621
The California White St Sugar Pine Manufacturers Association, of San
Francisco. did not report.
Pulpwood exports for the first two months of this year were 152.713
The Northern Pine Manufacturers of Minneapolis, Minn., reported cords valued at $1,363,172, as compared with 258,336 cords valued at
production from seven mills as 1.937,000 feet, shipments 2,949.000 and 22,400058 In the corresponding months of last year.
Total- _
APRIL 4 19311
FINANCIAL CHRONICLE
German Reichsrat Compels Sugar Industry to Joint
International Agreement.
The following Berlin cablegram March 29 is from the
New York "Times":
The Reichsrat has approved the ordinance designed to compel joint
action in the sugar industry with respect to the regulation of production
and sales. This action was necessary because it had been found impossible
to effect a voluntary agreement. The plan thus forced on the industry
Is to remain in effect until Dec. 1 1936.
2475
To the broad aspects of this proposal, nearly all European beet-sugar
producers seem to have given their assent. Its adoption, or what is
more likely, fixing a figure somewhat under 2% cents, now depends upon
a favorable reply by the Dutch next Wednesday.
That such a reply would be forthcoming was the expectation of most
of the participants in to-day's session. This would clear the way for
the determination of the remaining details of the world contract and the
final signing, which would bring the Chadbourne plan into operation.
Higher Duty Voted on Sugar Imports—French Deputies
Approve Tardieu Plan to Protect Growers from
Dumping.
Automotive Parts-Accessory Output Shows Further
The following (United Press) from Paris March 20 is
Gain.
the New York "World-Telegram":
The February output of manufacturers of parts and acces- from
The Chamber of Deputies to-day approved Minister of Agriculture
sories continued the upturn that has been taking place in Andre Tardieu's project for an increase of duty on sugar imports from 14
the industry since the first of the year, and indications francs (about $5.60) to 170 francs per 100 kilos.
Tardieu insisted on passage of the plan to protect French sugar beet
are March will show still further improvement, according producers, although previously the Government had delayed action, due
to the Motor and Equipment Association. It further states: to strong domestic opposition to an increase in retail prices. The vote
Manufacturers of parts and accessories for original equipment registered
the largest gain in February as they did in January, and that augurs
well for increased car production schedules for the next month or two.
Manufacturers of service equipment, service parts and accessories also
enjoyed increased business for the month.
The grand index of shipments for all groups of manufacturer members.
reporting their figures to the Association for February stood at 93% of
the January 1925 base index of 100 as compared with 84 in January, 69 in
December, and 138 in February 1930.
Reports by divisions of member manufacturers in February follow:
Parts-accessory makers selling their products to the car and truck makers for
original equipment made shipments aggregating 95% of the Jan. 1925 base as
Compared with 84% in January, 64% in December and 141% In Feb. 1930.
Shipments to the trade by makers of service parts were 99% of Jan. 1925 as
compared with 98% in January, 100% in December and 131% in Feb. 1930.
Accessory shipments to the trade In February were 53% of the 1925 base as
Compared with 46% in January, 55% in December and 66% in February last year.
Service equipment shipments,that is, repair shop machinery and tools, in February
were 97% of the 1925 base as compared with 92% in January, 75% in December
and 151% In February a year ago.
was 456 to 116, with Socialists opposing.
The sugar beet growers, however, do not consider the present increase
sufficient, since it represented a compromise. They had demanded an
increase to 200 francs, pointing out that Italy has a tax of 225 franca and
Germany of 195 francs.
Jamaica Sugar Planters Win Respite.
The following cablegram from Kingston, Jamaica, April 1,
is from the New York "Times":
The Legislature has been informed by the Governor that a telegram has
been received from Lord Passfield, Secretary of State for the Colonies,
that the British Treasury has approved suspension of payment of the war
subvention of 1931 and 1932 to assist Jamaican sugar planters.
World Coffee Meeting Called by Brazil—Postponed to
May 15.
The Brazilian national coffee growers' conference, scheduled to open March 31, which all foreign commercial
attaches, as well as many important foreign banking
house representatives have been invited to attend, has
been postponed until May 15, according to Rio cables,
said the "Wall Street Journal" of March 23. The item
added:
Adjournment Until After Easter of Paris Conference
on Chadbourne Sugar Restriction Plan—Demand
by Javanese Interests that World Sugar Price Be
Fixed at Two Cents.
The world sugar conference at Paris adjourned on April 2
until after Easter. A proposal which came before the conInability of the various delegates invited to arrive in Brazil by the
ference this week was that of the Dutch delegates, who end of March, as well as a time extension necessary to further prepare
urged that when raw sugar reaches a maximum of two cents data on coffee crop conditions and the methods of disposing of the exsupply, were offered as reasons for the postponement.
a pound they be permitted to release sequestrated stocks. cessive surplus
It is believed that the final arrangements for the purchase and segregaOn March 31 (said a cablegram from Paris to the New York tion of the 18,500,000-bag retention in Brazil July 1, next, by the govern"Times") Thomas L. Chadbourne, author of the plan to ment, as well as a definite announcement of the opening of a free marwhich all the big producing nations have tentatively agreed, ket, will come from this conference.
The proposed conference was referred to in our issue of
definitely informed the Dutch-Java trust representatives
that Cuba could never accept their proposal for a 2-cent March 14, page 1897.
knock-down price during the five-year life of the project.
If the Dutch persist in their stand, Mr. Chadbourne em- Forty-Eight-Hour Law Killed in New Hampshire—
Manufacturers' Association Calls Act Restrictive,
phasized, the responsibility for the breakdown of the conDangerous to State's Industries.
ference must rest squarely upon their shoulders. The
"Times" cablegram continued:
From the New York "Journal of Commerce" we take the
After issuing what might almost be called an ultimatum, Mr. Chad- following from Manchester, N. H., March 29:
bourne, as spokesman for the Cuban and American sugar interests, made
a counter-proposal to the Dutch which the other participants appear to
have endorsed. It was pointed out to the Dutch that the Cuban and American interests did not feel that the price should be stated in the world contract, but that if it should be stated the figure should be 2% cents instead
of 2 cents to start with, and that authority should be given to the permanent
international commission to reduce the price if and when necessary.
Various beet sugar growing nations stated their opinions in the two long
sessions to-day and while there did not appear to be a unanimous agreement on the actual price there was suffcient agreement to warrant the
hope that a compromise would eventually be reached, fixing the price
somewhere between 2 and 2% cents.
The Java Sugar Trust to-day withdrew its demand for 2 cents a pound
knockdown price for sugar and informed the conference of the principal
sugar exporting nations it would give serious consideration to any counterproposal that was made. The threatened collapse of the present meeting,
and with it the successful institution of the Chadbourne plan for rehabilitation of the world sugar industry, has thus been averted.
Compromise proposals were put in writing late this evening, and representatives of the Java Sugar Trust left soon afterward for Amsterdam where
to-morrow a full meeting of the Visp (the Java trust) will consider the new
suggestions.
To permit the 40 delegates to return home for the Easter holidays,
Thomas L. Chadbourne adjourned the conference until next Wednesday,
when it is confidently espected a solution of the delicate price issue satisfactory to all the signatories of the provisional accord will be found.
• • *
Mr. Chadbourne re-stated the terms of the Cuban-American counterbriefly,
as follows:
proposal, which is,
The Cuban-American Commission does not think a price should be inserted in the world contract, but if one must be written in, it should be
2% cents for one year instead of five years. Furthermore, they proposed
that an international commission of control should be constituted and
required to release additional stocks of sugar if and when sugar touched
the 2%-cent figure and remained there for 30 days.
Until such time as theme is a National 48-hour-a-week law, New Hampshire manufacturers, as intimated in a recent editorial in their monthly
publication, "The New Hampshire Manufacturer." are content to leave
the State laws as they are. The editorial commends the Legislature for
killing a bill which would have made obligatory a 48-hour law in this State.
The editorial reads:
"The New Hampshire Legislature very wisely repeated its stand on the
so-called 48-hour law. Counsel for the New Hampshire Manufacturers'
Association, familiar with every detail of the problem from long years of
dealing with, stated the case very clearly and convincingly at the committee hearings. In the House some of the very serious things such
legislation would do for our small State were made obvious. The House
killed the bill by a very substantial margin.
"So far no opposition has been voiced by the manufacturers to a National
48-hour law and they would doubtless be willing to stand solidly by the
proposition of Hon. Francis J. Murphy for a concurrent resolution memorializing Congress to this end.
Score Adverse Legislation.
"New Hampshire, with disadvantages of distance from markets and
many other things of this nature, does not want to be placed further from
the running when so much of its competition comes from States which are
not on a 48-hour basis. In the minds of those who have never had to
look a payroll in the face and have never been up against the twin devils
of cancelitis and price-cutting competition, there is a feeling that somehow
or other, no matter what the Legislature does to the factory, the latter
can take care of itself in some mysterious way.
"If this was only true how much fewer failures would there be! Manufacturers do not fail and liquidate because they enjoy the experience.
It is because they have been overcome by conditions beyond their control,
and adverse legislation is one of the real and serious difficulties which the
manufacturer is powerless to overcome.
"In the same category is the so-called Act to prohibit night work for
women. It was well stated by counsel for the association at the hearings
on this question that night work or evening work by women, when necessary, makes work for everybody the next day. It is not proffered when
it is not necessary, and when it is it benefits everybody.
Releases Set at 5%.
The first release, it was proposed, should be 5% of the fixed quotas.
A second release, also for 5%, should become effective if the price remained at 2% cents for four months, and if it persisted at that total, a
final 5% should be allowed to flow out, making a total of 15% for a period
of one year.
State Would Lose Industries.
"We are quietly but definitely assured that if certain legislation which
has been proposed as we go to press for this issue is enacted it will be
necessary to definitely curtail, and on a permanent basis, certain business
operations which are now of material benefit to their respective communities and others will be abolished altogether.
In its accounts from Paris on April 1 the same paper said:
2476
FINANCIAL CHRONICLE
"New Hampshire needs these industries and parts of industries. Some
can and do get along on less than 48 hours. Some never find it necessary to ask their employees to come back even an hour in the evening,
much less operate a night shift. Others cannot conform to this schedule
and exist at all, and still others, receiving the final order by mail or telephone, with the cryptic words from the purchaser: 'You may have this
order if yea can get it out at such a time, otherwise not,' are faced with
the necessity of a temporary night shift, meaning work for two sets of
employees, or of declining the order, which means no work for both. Counsel Woodworth is right in indicating that the privileges of work makes
more opportunities for employment and work unnecessarily hampered and
restricted means employment eliminated.
"These two, and similar restrictive measures, are considered pivotal
points in adverse business legislation. Upon the decision of the general
court in relation thereto rests New Hampshire's invitation to industry.
both now and for the future, in which every citizen of the State is interested.
We believe that decision will be for sanity, soundness and success."
[VoL. 132.
Majestic Household Utilities Company Resumes Production
Adding 2,000 Men to Payroll.
The Majestic Household Utilities Company resumed
production on March 30, according to Associated Press
advices from Chicago, after three months' shutdown,
adding 2,000 men to the payroll. The first mechanical
refrigerator was turned out March 30 it is stated.
Pottery Workers at West Virginia Plant of Homer Laughlin
China Company Resume Full Time.
Associated Press advices from Newell (W. Va.), March
27 stated:
Nine hundred pottery workers will resume full time at the Homer
Laughlin China Company plant No. 6 next week, officials announced
World Production of Cotton Over a Million Bales Less today. The plant has been idle since last May. The No. 8 plant of
than Early Indications According to New York the company will increase its working force next week, increasing the
daily payroll to $10,000.
Cotton Exchange Service.
World production of all kinds of cotton during the current
season is proving to be about 1,100,000 bales less than early Total of Unemployed in Great Britain Drops More Than 50,000 for Second Successive Week.
season indications, and is less than last season by about the
London Cablegram, March 31, is from
following
The
same amount, according to the New York Cotton Exchange
Service. This reduction in the world crop it is noted, is due the New York "Times."
For the second week in succession the unemployment figures in
to the fact that the crops in several important countries are
Britain have fallen by more than 50,000. The Ministry of Labor
turning out less than was indicated last fall. "The decrease announced today that a total of 2,580,118 was registered as unemployed,
of 300,000 bales in the estimate of the American crop, as 59,515 less than a week ago. Similarly, last week's total represented
of 52,104 below the preceding week's figure.
disclosed by the final ginning report issued 10 days ago, was a fall
Although the total remains almost 1,000,000 above the figure last
only one of a series of reductions in crop prospects in various year, there was a strong feeling among the Cabinet Ministers today
countries this season," says the Exchange Service, under that the tide has turned and that a slow improvement in business has
begun.
date of March 31. It adds:
The Indian prospect was reduced by 400.000 or 500.000 bales, the EgypCopper Price Off in Dull Trading—Tin Lower.
tian crop by about 100,000 bales, the Brazilian crop by 150,000 bales, and
the Peruvian crop by 25.0O3 or 50.000 bales. The net result is that, accordto the general tenor of somewhat gloomier news
Sensitive
ing to data now available, the world has produced this season only about
and business centres, the market for nonfrom
financial
with
conpared
equivalent
bales,
478-pound
26,733,000 last
25,650,000
season, and compared with the record crop of 27,865.000 In 1926-27.
ferrous metals gave a poor account of itself in the last week.
World consumption of all kinds of cotton, in equivalent 478-pound bales,
Trading again fell to an extremely low point, with prices
was approximately 11.365.000 bales during the first half of this season
compared with 12,965.000 in the corresponding period last season, and for copper, zinc, tin and silver slightly easier, "Metal and
12,720,000 two seasons ago. World consumption in the first half of this Mineral Markets" reports, and then goes on to say:
season was at an annual rate of 22,730,00 bales, as compared with the production this season of 25.650,000 bales. However, there are some indications of an upward trend of consumption in the second half of the current
season.
Decline in Production of Cotton Cloth in United States,
The Association of Cotton Textile Merchants of New York
estimates the production of cotton cloth in the United States
during the month of February 1931 as 502,242,000 square
yards. This compares with 522,781,000 square yards in
January 1931 and 582,578,000 yards in February 1930.
These yardages are computed from spindle hour figures
released by the Bureau of the Census.
Actual consumption of the major metals is unquestionably higher than
earlier in the year, but the gains have been below expectations. In fact,
stocks are being reduced so slowly that a number of producers are considering the advisability of another general cut in production, especially of
coppir. Negotiations in London for the regulation of lead output continue. and operators here appear to be hopeful about the outcome. Legisdon in connection with the tin restriction plan has been introduced in
the Federated Ml ay States.
Domestic and foreign business in copper was dull throughout the week
and with custom smelters in no mood to accumulate supplies under existlag conditions, the price structure developed slight weakness early in the
period. Only custom smelters sold at the lower levels, though all of the
operators in this group did not participate in the business booked. Large
producers were virtu Ily out of the market, holding their price at 10 cents.
Export copper sales for ti e month of March totaled approximately 20.000
long tons, a sharp drop from the preceding month.
Although lead sales for the week exceeded the two preceding weeks, one
good order for corroding lead was entirely responsible for the improvement.
Prices held at 414 cents, New York, and 4.20 cents St. Louis. Lead sales
for March shipment are slightly ahead of February. Though zinc was
offered freely throughout the week, the market showed little change.
Silk Association of America Reports Increase in Employment on Broad Silk Looms in February.
Employment on broad silk looms increased 1.7% in February as compared with January, the Silk Association of
Its Products—California Crude Oil
America, Inc. reports. Narrow looms employment declined Petroleum and
Again: at Lowest Levels in 25 Years—
Cut
Prices
1.3% and spinning spindle employment 0.5%. Operation
Texas Proration Argument Still Raging.
of broad silk looms increased 2.5% in February as compared
March 30, Union Oil of California posted the
Effective
spindles
spinning
with January, narrow looms 12.5% and
cut in California crude oil prices during that
third
consecutive
3.7%. Employment in the industry fell in February 13%
month and in consequence, brought about the situation where
below the February 1930 average.
the high gravity crudes, with large gasoline content, are
companies met
South Haven, Mich., Has Four Industries Employing 800- selling at less than the fuel oil crudes. Other
the cut during the week and California crude prices are now
1,065 Work in 5,000 City.
at their lowest levels in more than 25 years.
In its March 29 issue the New York "Times" published
For fields in the Los Angeles area, the new prices range
the following (Associated Press) from South Haven, from
65c. a barrel for oil below 21 gravity, with 21 gravity
Mich., March 28:
priced at 62c., and a reduction of 3c. for each higher gravity,
In this city of 5,000, the four leading industries are employing 800
up to 30 degrees and above, priced at 35c. The previous
persons.
Smaller industries bring the city's roster of workers to 1,065, an list quoted up to 700. a barrel for 40 degrees and higher.
average of one to each 4.6 population.
No change has been posted in oil from 14.0 to 19.9 gravity.
Prices in the San Joaquin territory range from 500. a barrel
2,700 Men Dropped from "Made Work" Payroll of Phila- for 11.0 to 13.9 gravity, to 35e. for 29 gravity and above.
delphia Unemployment Committee.
Previous range was from 55 to 58c.
About 2,700 unemployed men in Philadelphia will be
The new prices are based on the values obtainable from the
dropped from the payroll of the "made work" division different grades of crude under existing market conditions,
of the Committee for Unemployment Relief at the end of according to Pacific Coast oil men. It is pointed out that
this week, because of lack of funds, Horatio G. Lloyd, in view of the present low prices for gasoline, due both to
chairman, announced on March 29, according to a Phila- general conditions in the industry and the current price war
delphia despatch to the New York "Times" which also raging on the Western coast, the low grade crude, fuel and
stated:
gas oils are now more valuable. Under present market
He said funds given in direct relief would go about twice as far as
prices, a refiner suffers a loss on gasoline sales, therefore the
must
hand
on
funds
that
and
work"
"made
when used to employ men at
be conserved as much as possible because the depression period would values of the higher gravity grades slump in proportion to
last longer than had been expected.
the increase of gasoline content.
"At the present rate of expenditure, $300,000 a week, the funds now
No settlement of the current controversy over proration
available would be exhausted before the end of April," said Mr. Lloyd,
made as yet. The counsel for
"and at this rate even the proposed $3,000,000 municipal appropriation allowances in Texas has been
the royalty owners and independent producers of the east
would only carry the work ten weeks longer."
APRIL 4 1931.]
Texas fields has threatened injunction proceedings against
the State Railroad Commission if any unsatisfactory level is
set. However, it seems probable that this matter will be
adjusted shortly.
One encouraging feature in the import question was the
news that Pan-American Petroleum, subsidiary of Standard
Oil of Indiana, will curtail its imports from Venezuela 23%.
This is the last large company to agree to limit its imports,
with Shell Union, Standard Oil of New Jersey and the Gulf
Oil Co. previously agreeing to voluntarily curtail their
imports.
The Oklahoma Corporation Commission's action in retracting the increased allowable output in the Oklahoma City
fields was attacked by the Sinclair Oil & Gas Co. during the
week in the II. S. District Court in the Western District of
Oklahoma.
Sinclair Oil & Gas asked for an injunction restraining the
Corporation Commission or any of its agents from enforcing
orders of the Commission relative to proration in the Oklahoma City fields on the plea that the action of the company
was "arbitrary, capricious, and without due process of law."
The action referred to was the retraction of the Commission's order of March 4th, increasing the flow in the Oklahoma City fields. The Commission retracted its order the
following day, when, following the announcement of the
increase, several companies posted price reductions in the
Mid-Continent area.
Price changes follow:
March 30.-Effective this day, the Union Oil Co. of California posted
reductions ranging from 25c. to 35c. a barrel in the principal fields in California. Competing producers met the cut during the week.
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown.)
Bradfort, Pa
$2.15 Smackover, Ark.. 24 and over
5.45
.80 Eldorado, Ark., 40
Corning, Ohio
.67
CabeII, W. Va
1.05 Rusk, Texas, 40 and over
.67
.80 Urania, La
Illinois
.75
Western Kentucky
.75 Salt Creek, Wyo., 37
.61
.67 Sunburst, Mont
Mldcontinent. Okla., 37
1.55
Hutchinson, Texas,40 and over____ .50 Santa Fe Springs. Calif.. 40 and over .35
Spindletop. Texas. grade A
.80 Huntington. Calif., 26
.72
.69 Petrone. Canada
SpIndletop, Texas. below 25
1.50
.40
Winkler, Texas
REFINED PRODUCTS-BULK GASOLINE MARKET IMPROVES10 CENTS A BARREL CUT IN DIESEL OIL POSTED-KEROSENE EASY.
A slightly improved bulk gasoline market was the only
feature of the local refined products market during the week
with the exception of a 10-cent a barrel reduction posted in
the price of Diesel oil. Prices were irregular and market
activities seemed to be more-or-less marking time. The
Chicago and Mid-Continent markets have not shown any
improvement yet, although the settlement of the East Texas
proration argument, looked for shortly, is expected to exert
a bullish effect on these markets.
All major refiners are now quoting U. S. Motor gasoline
to Sc. a gallon.
in tank car lots, at the refinery, at 6
Some price shading below the latter figure is reported by small
independents, but the general market level is firm at this
range. Demand is said to be increasing slightly, and marketeers seem more willing to take on future requirements.
Retail demand is holding up well and with the start of the
spring season here, is expected to show great improvement
within the next few weeks.
The export demand for gasoline is showing slight improvement although American exporters are suffering bitter competition from Rumanian and Soviet companies. Rumanian
gasoline has been offered abroad at levels that would be folly
for American producers to meet, and this price-shading has
made its effect felt on the foreign markets.
Effective April 1, the Standard Oil Co. of Now Jersey,
reduced the price of Diesel oil at New York Harbor 10c. a
barrel to $1.75 a barrel. The company posted the same price
at Baltimore, Norfolk and Charleston. Bunker oil remains
unchanged at $1.05 a barrel, refinery, New York. Domestic
heating oils were irregularly lower, although no further reductions were reported.
Kerosene was weak with distributors offering 41.43 water
white at 5% to 6c. a gallon, tank car lots. Buyers, however,
continue their policy of covering spot needs only. Demand
for kerosene has dropped off with the end of the heavy winter
consumption period, and prices seem likely to go to lower
levels before present stocks are disposed of by refiners.
Price changes follow:
March 30.-Effective Saturday, the Standard Oil Co. of New Jersey
announced a cut of 34c. a gallon in the price of bulk gasoline, making the
new price 634c. a gallon, New York Harbor. This met the cuts made by
other refiners during the past week. Crew-Levick also posted new prices
in line with the recent reductions.
April 1.-The Standard 011 Co. of New Jersey posted a cut of 10c. a
barrel in the price of Diesel oil in New York Harbor, making new price
2477
FINANCIAL CHRONICLE
$1.75 a barrel. Similar cuts were made at the company's terminals along
the Atlantic Seaboard.
Gasoline, U. S. Motor, Tank Car Lots, F.O.B. Refinery.
$.04-.0434
Arkansas
N. Y.
N.Y.(Bayonne).05-.07
Colonial-Beacom _8.0954 California
Stand.011, N..l..$.06)4
Sinclair Ref
.0634 LosAngeles,ex_ .043.1-.07
tStand. 011, N. Y__ .004
.0634 Gulf Coast, ex_ .0434-.05
Tide Water011 Co. .0634 Crew Levick
North Louisiana_.04-.041
Texas
.08
Richfield 011(Cal.) .0734
Gulf
0634 North Texas_ .0334-.0334
Warner-QuianCo .07
.0334-.04
Pan-Am. Pet. Co. .0634 Chicago- -- - .0334-.0434 Oklahoma_ _
Pennsylvania_
New Orleans ex._ _ __ .05
.0531
Shell Eastern Pet. .07
Units freight.
Gasoline, Service Station, Tax Included.
$.153 Cincinnati
$ 16 Minneapolis
$ 162
New York
16 New Orleans
.22
195
Atlanta
16 Philadelphia
19
1.62 Denver
Baltimore
.158 San Francisco
.105
155 Detroit
Boston
.19 Spokane
.22
158 Houston
Buffalo
.21 St. Louis
.139
13 Jacksonville
Chicago
149
Kansas City
Kerosene, 41-43 Water White Tank Car Lots, F.O.B. Refinery.
$.0234-.0334 New Orleans, ex_ N.Y.(Bayonne)$.0534-.06 Chicago
Tulsa
0334-.033.4
Los Angeles. ex.04%.-043
North Texas- .0234-.03
Fuel Oil, F.O.B. Refinery or Terminal.
Gulf Coast "C"__ $.65-.70
California 27 plus D
New York (Bayonne)5.75-1.00 Chicago 18-22D--423.5-.50
$1.05
Bunker "C"
1.85 New Orl'ns 18-20D .70-.75
Diesel 28-301)
Gas Oil, F.O.B. Refinery or Terminal.
TulsaN.Y.(Bayonne)Chicago32-36D Ind.S.0134-.02
32-36D Ind.$.01114-.02
2813 plus_ _$.0434-.0534
Weekly Refinery Statistics for the United States.
Reports compiled by the American Petroleum Institute
for the week ended March 28, from companies aggregating
3,571,200 barrels, or 95.7% of the 3,730,100 barrel estimated
daily potential refining capacity of the United States indicate
that 16,327,000 barrels of crude oil were run to stills daily,
and that these same companies had in storage at refineries
at the end of the week, 47,444,000 barrels of gasoline and
127,268,000 barrels of gas and fuel oil. Reports received on
the production of gasoline by the cracking process indicate
that companies owning 94.9% of the potential charging capacity of all cracking units manufactured 2,867,000 barrels of
cracked gasoline during the week. The complete report for
the week ended March 28 1931 follows:
CRUDE RUNS TO STILLS, GASOLINE AND GAS AND FUEL OIL STOCKS
WEEK ENDED MARCH 28 1931.
(Figures in barrels of 42 gallons each).
District.
Per Cent
Potential
Capacity
Reporting.
Crude
Runs
to
Stills.
Per Cent
Gasoline
Oper.
Stocks
of Total
Capacity
at
Report. Refineries.
East Coast
100.0
Appalachian
93.8
Ind.. Illinois, Kentucky
97.5
Okla., Kans., Missouri. 89.4
Texis
91.9
1.ouislana-A rkansas
98.3
Rocky Mountain
93.1
California
98.8
3,335,000
654.000
2,079.000
1,805.000
3,846.000
1,039.000
340.000
3,229,000
77.8
70.5
78.0
62.6
73.9
56.6
34.8
52.0
Total week Mar.28
95.7
Daily average
Total week Mar.21_. 95.7
Daily average
16.327,000
2,332,400
16,079,000
2,297,000
Total Mar. 29 1930._
Daily average
17,436.000
2.490.800
70.9
95.6
Gas
and
Fuel
Oil
Stocks.
8.690.000
1,766.000
5.743.000
3,468.000
8.088.000
1.994.000
1,893.000
15.802.000
7.244.000
1,107.000
3.082.000
3,727.000
8,096,000
2,254.000
829.000
100.929.000
65.3
47,444,000
127.268.000
84.3
46,758,000
127,691.000
054,999.000 a136.057.000
b Texas Gulf Coast_ _ __ 100.0
2,921.000
78.8
6.950.000
5.791.000
b Louisiana Gulf Coast. 100.0
706,000
68.4
1,805,000
1,213,000
a Revised due to change in California. b Included above In table for week ended
March 28 1931 of their respective districts.
Note.-All figures follow exactly the present Bureau of Mines definitions. Crude
oil runs to stills include both foreign and domestic crude. In California, stocks of
heavy crude and all grades of fuel oil are included under the heading "Gas and
Fuel 011 Stocks."
Crude Oil Output in United States Slightly Higher.
The American Petroleum Institute estimates that the
daily average gross crude oil production in the United
States for the week ended March 28 1931, was 2,275,350
barrels, as compared with 2,268,050 barrels for the preceding week, an increase of 7,300 barrels. Compared with
the output for the week ended March 29 1930, of 2,514,200
barrels daily, the current figure represents a decrease of
238,850 barrels per day. The daily average production East
of California for the week ended March 28 1931 was 1,744,950
barrels, as compared with 1,736,150 barrels for the preceding
week, an increase of 8,800 barrels. The following are estimates of daily average gross production, by districts:
DAILY AVERAGE PRODUCTION (FIGURES IN BARRELS).
Week Ended,Mar, 28'31, Mar, 21'31. Mar. MI. Mar. 29'30.
Oklahoma
552,800
572,100
509,800
615,000
Kansas
109,300
109,800
111,400
114.500
Panhandle Texas
55,550
53.700
52.350
89,900
North Texas
57,800
58,30059,450
80,450
West Central Texas
25,350
25,300
25,300
51,150
West Texas
243,500
234,650
231,350
322,000
East Central Texas
169,000
138,900
129,650
25,400
Southwest Texas
62,750
74,650
75,600
61,000
North Louisiana
39,700
39,950
40,500
43.300
Arkansas
46,700
47.300
Coastal Texas
151,250
147.500
11211
late()
Coastal Louisiana
26,100
26,75020,500
Eastern (not Including Michigan)
101,700
101,000
120,000
Michigan
8,550
8,550
8,650
11,750
Wyoming
40,800
43,950
41,800
50,850
Montana
8,900
8,650
8,400
9,300
Colorado
4,200
4,250
4,150
4,750
New Mexico
41,000
40,850
11,000
California
530,400
531,900
631,100
Total
2.275.350
2,268,050
2,190.550
2,514.200
N:12
,N1,3
Wide fluctuations in Oklahoma pools due to proration tests and adjustments.
The estimated daily average gross production for the Mid-Continent
Field, including Oklahoma, Kansas, Panhandle, North. West Central,
West. East Central and Southwest Texas, North Louisiana and Arkansas,
for the week ended March 28. was 1,362,450 barrels, as compared with
1,354.655 barrels for the preceding week, an increase of 7,800 barrels
The Mid-Continent production, excluding Smackover (Arkansas) heavy
oil, was 1,330.600 barrels, as compared with 1,322.550 barrels, an increase
of 8.050 barrels.
The production figures of certain pools in the various districts for the
current week, compared with the previous week. in barrels of 42 gallons.
follow:
-Week Ended-Week EndedSouthwest TexasMar.28. Mar.21
Oklahomahfar.28. Mar.21
4,700 4,800
25,850 6,400 Chapmann-Abbot
Bowlegs
18,200 28,500
12,600 12,750 Darst Creek
Bristow-Slick
9,400 9,400
13,000 13,300 Luling
Burbank
13,000 14,650
14,900 13.850 Salt Flat
Oarr City
15,300 34,300
Earlsboro
North Louisiana27,000 10.750 9arepta-Carterville
East Earlsboro
1,400 1,450
7,050 6,450 Zwolle
South Earlsboro
7,650 7,600
13,000 13,650
Konawa
Arkansas42,800 12,850
Little River
4,200 4,300
11,450 6,800 thnackoyer, light
East Little River
2,300 4.650 Smackover. heavy
31,850 32,100
Maud
15,400 2,100
Mission
Coastal
Texas
Oklahoma City
120,800 149,200 Barbers Hill
21,200 18,800
17,150 38,050 Raccoon Bend
Bt. Louis •
9,000 9,400
4,800 7,650 Refuglo County
dearight
29,100 28,600
Seminole
10,300 26,500 Sugarland
11,800
11,800
1.550 3,050
East Seminole
Coastal Louisiana!CamasEast Hackberry
2,050 2,150
18.500 18,000 Old Haekbert7
detlytalkk County
800
800
18,300 19,200
Vteen
WyonsinePanhandle Texas24,850 27,500
42.200 39,600 Salt Creek
Gray County
UutchInson County.. __ _ 8,850 9,400
MontanaKevin-Sunburst
4,450 4,250
North Texas11,750 11.800
archer County
New Mexico9,200
9,150
31,600
32,100
County
North Young
Hobbs High
10,500 10,500 Balance Lea County-- 7,000 6,300
Wilbarger County
West Central Texas'Muth Young County
2,600
California2,600 Elwood-Goleta
Huntington Beach
Inglewood
24,400 Kettletruin Hills
7,300 Lang Beach
22,500 Midway-Sunset
26.450 Playa Del Rey
47,800 Santa Fe Springs
89,850 Seal Beach
4,100 Ventura Avenue
West TexasCrane & Upton Counties
Ector County
Howard County
Reagan County
Winkler County
Yates
Balance Pecos County__
24,500
6.300
27,050
29,700
49,700
93,000
4,200
East Central TexasVan Zandt County
Rusk County:
Joinerneld
Kilgore
Gregg county:
Longview
Pennsylvania Grade35.050 35,500 Allegany
Bradford
47,850 40,350 Kane to Butler
56,500 136,850 Southeastern Ohio
Southwestern Penna
17,750 14,350 West VIrenla
35,000
21.800
15,200
25,000
89.600
53,000
29.800
74,000
15,700
45,000
38,500
21,600
15,200
25,000
90,600
52,300
30.300
71,500
16,400
45,000
6.700 6,050
21,000 21,850
7,450 6,800
6.700
5
2.800 2,300
14.000 13,809
Wide fluctuations in 0!:lahoma pools due to proration tests and adjustments.
Output of Crude Petroleum in February at Higher Daily
Rate than in Preceding Month the First Increase
Since May 1930-Inventories Again Fall Off.
According to reports received by the Bureau of Mines,
Department of Commerce, the production of crude
petroleum in the United States during February 1931,
amounted to 60,645,000 barrels, a daily average of 2,166,000
barrels. This represents an increase in daily average of
37,000 barrels over the previous month; this was the first
increase reported since May 1930. Production in the two
leading States, Texas and California, was virtually unchanged from the previous month but the daily output of
the third-ranking State, Oklahoma, increased 15,000 barrels.
The major portion of this increase was recorded in the Oklahoma City field, where the allowable production was raised
by the Oklahoma Corporation Commission. Daily average
production in Kansas increased for the first time in several
months; this resulted principally from increased activity in
the Voshell pool. The only other important increase noted
in February occurred in Texas, exclusive of the Gulf Coast
and West Texas. The daily average production of this
area rose from 283,000 barrels in January to 293,000 barrels,
which increase was due almost solely to the production from
the new East Texas fields. The Bureau, in its statement,
further goes on to say:
Stocks of crude petroleum continued to decline as runs to stills continued
in excess of production. Total stocks east of California on Febrwwy 28
amounted to 361.887.000 barrels, a decline from the previous month of
more than 4,000.000 barrels. Stocks of light crude in Cblifornia showed a
slight increase but the downward trend in heavy crude and fuel oil stocks
in that State was continued. Total stocks of all oils were reduced 3,472,000
barrels during the month. This decline occurred in crude stocks rather
than in refined oils as the increase in gasoline stocks more than compensated
the withdrawal from fuel oil stocks.
Daily average runs to stills of crude petroleum in February amounted to
2,330,000 barrels, an increase over the previous month of 71.000 barrels.
The Increase in crude throughout was reflected in motor fuel production,
the daily average of which increased to 1,119,000 barrels from 1,055,000
barrels in January. Daily average exports of motor fuel fell to 129,000
from 158.000 barrels the month previous. The daily average indicated
domestic demand for motor fuel amounted to 933.000. a decline from a year
ago of slightly over 1%. Stocks of motor fuel were increased by 2,537,000
barrels and amounted to 45,355,000 barrels at the end of the month. Those
stocks represent 43 days'supply as compared with 42 days'supply on hand a
month ago and with 47 days' supply on hand a year ago.
The refinery data of this report were compiled from schedules of 335
refineries, with an aggregate daily recorded crude-oil capacity of 3,692.840
[Vou 1732.
FINANCIAL CHRONICLE
2478
barrels, covering, as far as the Bureau is able to determine, all operations
during February 1931. These refineries operated during February at 63%
of their recorded capacity, given above, as compared with 336 refineries
operating at 61% (revised figure) of their capacity in January.
SUPPLY AND DEMAND OF ALL OILS.
'
(Including wax, coke and asphalt, in thousands of barrels of 42 U. S. gallons.)
Jan.
1931.a
Feb.
1931.
New Supply-.
Domestic production:
Crude petroleum
Daily average
Natural gasoline
Benzol
Total production
Daily average
Imports:
Crude petroleum
Refined products
Total new supply, all oils
Daily average
Increase in stocks, all oils....
DemandTotal demand
Daily average
Exports:
Crude petroleum
Refined products
Domestic demand
Daily average
Excess of daily average domestic
production over domes. demand_
Stocks (End of Month)Crude petroleum:
East of California
California c
Total crude
Natural gasoline at plants
Refined products
Feb.
1930.
Jan.-Feb. Jan.Feb.
1930.
1931.
60.645
2,166
3,631
172
64.448
2,302
65,991
2,129
4,140
184
70.315
2,268
74,243 126,636 153,964
2,652
2,146
2,610
4,248
7,771
8,658
356
469
229
78,720 134,763 163,091
2,284
2,764
2,811
4,789
2,917
72,154
2,577
4,353
3,601
78,269
2,525
9.142
9,771
4,321
6.518
7,030
3.224
86,265 150,423 179,892
2,550
3,049
3,081
b3,472
134,313
75,626
2,701
82,582
2,664
80,721 158.208 169,681
2,876
2,681
2,883
1,710
7,992
05,92-3
2,354
1,919
10,091
70,572
2,227
3,629
3,539
1,731
10,123 18,083 22.160
68,867 136,496 143,982
2,313
2,440
2,460
c52
c9
351
c29
324
361,887
142,093
503,980
692
153,613
365,989
142,757
508,746
606
152,405
387,356
151,980
539,336
572
159,469
361,887
142,093
503,980
692
153,613
387,356
151,980
539,336
572
159,469
5,544
b7,785
10,211
658,285 661,757 699,377 658,285 899,377
arand total stocks, all oils
246
243
244
248
243
Days' supply
Elunker oil (Included above in do8,288
4.065
7.166
3,622
3,544
mestic demand)
a Revised. b Decrease. c Deficiency. d Includes residual fuel oil.
PRODUCTION OF CRUDE PETROLEUM BY STATES.
(Thousands of barrels of 42 U. S. gallons.)
February 1931.
January 1931.
Total. DatlyAv.
Total. Daily Av.
Jan.Feb.
1930.
Jan.Feb.
1931.
2,910
50
Arkansas
1,539
49
1,371
California:
5,535
93
Long Beach
2,877
95
2,658
4,218
72
Santa Fe Springs
2,223
71
1,995
367 21,664
Rest of State
367 11,386
10,278
Total California_ _._
532 31,417
533 16,486
14,931
265
Colorado
5
139
126
5
785
Illinois
13
409
13
376
135
2
69
ee
Indiana-Southwestern _
3
Northeastern8
143
i
73
3
Total Indiana
70
6,133
100
3,102
108
3,031
Kansas
1,070
17
546
19
524
Kentucky
1,672
28
842
30
830
Louisiana-Gulf Coast
2.433
40
1,244
42
1.189
Rest of State
4,105
68
2,086
72
2,019
Total Louisiana
504
261
9
9
243
Michigan
493
8
256
8
237
Montana
2,272
38
1,185
39
1.087
New Mexico
559
9
285
10
274
New York
747
13
301
13
356
Ohio-Central & Eastern
196
3
105
3
91
Northwestern
943
16
496
16
447
Total Ohio
5,206
84
2,588
94
2,018
Oklahoma-Okla. City
9.073
161
5,002
145
4,071
Seminole
244 14,901
7.578
265
7.413
Rest of State
489 29,270
504 15,168
14,102
Total Oklahoma
1,772
30
925
30
847
Pennsylvania
2
__
---2
Tennessee
8,889
151
4,336
150
4,203
Texas-Gulf Coast
254 14.847
7,887
249
6,960
West Texas
283 16,976
8,766
293
8,210
Rest of State
688 40,712
692 21,339
19,373
Total Texas
725
12
379
12
346
West Virginia
1,537
26
803
26
734
Wyoming-Salt Creek...
1,019
17
514
18
505
Rest of State
2.556
43
1,317
44
1.239
Total Wyoming
3.29a
6,485
10,320
26,064
42,869
292
962
154
7
161
6,246
1,260
1,163
2,279
3,442
740
445
652
644
875
215
1,090
4.717
16,415
16.719
37.851
2,289
3
10,025
20.117
17,800
47,942
909
1,712
1,159
2,871
2,129 126,636 153,964
2,166 65,991
60.645
U.S. total
NUMBER OF WELLS COMPLETED IN THE UNITED 5TATES.a
February
1031.
Oil
Gas
Dry
450
218
397
January
1931.
487
202
441
Jan.-Feb.
1931.
937
420
838
Jan.-Feb.
1930.
2,029
393
935
2,195
3.357
1,130
Total
1,065
a From "Oil and Oas Journal" and California since of the Amer can Petroleum
Institute.
Production of Natural Gasoline Again Falls Off.
According to the United States Bureau of Mines, Department of Commerce, no cessation in the steady decline in
natural gasoline production was apparent in February,
when the total output amounted to only 152,500,000
gallons (3,631,000 barrels) as compared with 173,900,000
gallons produced in January. On the basis of daily average
output, the decline was from 5,610,000 gallons in January
to 5,450,000 gallons in February, the latter representing the
lowest figure since January 1929. Practically all the producing fields reported a lower output of natural gasoline in
February, the decline in the Kettleman Hills field being the
most outstanding. Stocks of natural gasoline held by plant
operators on Feb. 28 1931, continued to increase and
amounted to 29,079,000 gallons as compared with 25,470,000
gallons on hand the first of the month. The Bureau's
statement shows:
APRIL 4 1931.]
FINANCIAL CHRONICLE
2479
PRODUCTION OF NATURAL GASOLINE (THOUSANDS OF
GALLONS).
Production.
Appalachian
Illinois, Kentucky, &c
Oklahoma
Kansas
Texas
Louisiana
Arkansas
Rocky Mountain
California
Total
Daily average
Total (thousands of bbis.)
Daily average
Feb.
1931.
Jan.
1931.
Feb.
1930.
7,600
1,000
38,900
2,600
36,700
4,700
2,400
4,800
53,800
8,900
1,100
43,100
2,700
40,800
4,800
2,600
5,700
64,200
9,200
1,300
47,300
2,800
36,700
6,000
2,400
3,800
68,900
152,500
5,450
3,631
130
173,900
5,610
4,140
134
178,400
6,370
4,247
152
High.
Low.
1931
$11.33 Jan. 6
$11.08 Feb. 17
1930
15.00 Feb. 18
Stocks End of Mo. 1929
11.25 Dec. 9
17.58 Jan. 29
14.08 Dee. 3
1928
16.50 Dec. 31
Feb.
13.08 July 2
Jan.
1927
15.25 Jan. 11
Nov.22
1931. 1931.
18.08
1926
17.25 Jan. 5
14.00 June
20.83 Jan. 13
4,761
15.08 May 5
4,197 1925
546
327
Outstanding in a puzzling cross-current of indicators of
10,476
9,401
1,617
1,052 the iron and steel markets is the fact that for the second
7,380
6,357
866
1,113 consecutive week steelmaking operations have declined,
293
206
745
608 states "Steel" of April 2. The decrease this week, like last
2,395
2,209 week, is one point, leaving
29,079
25,470
692
-ooi
Slight Reduction in Steel Output-Prices Unchanged.
The award of 124,000 tons of structural steel work by the
Pennsylvania RR., less than a fortnight after the placing
of 125,000 tons for the Radio City project in
New York,
has made construction activity the center of interest in
the iron and steel market, according to the "Iron Age" of
April 2. Including the Pennsylvania letting, fabricating
contracts for tihe week reached the record total of 166,000
tons, forging ahead of the 155,000 tons reported in the
previous week. The "Age" continues:
A large amount of fabricating steel is still pending and many
additional
structural projects will doubtless mature with the coming of open weather,
which is counted on to give impetus to construction work generally,
not
merely expediting the placing of bridge and building contracts, but
hastening the closing of heavy inquiries for line pipe and the launching
of
extensive highway programs and other public engineering work.
Demand
for reinforcing steel and road-making equipment is already feeling
the
stimulus of impending seasonal requirements. Concrete bar awards,
at
nearly 13,000 tons, are the largest in more than a year.
The rising importance of construction work as an outlet for tonnage
again
directs attention to the wave-like character of steel demand since the
year
opened. Inventory replenishment, together with rail and tin plate
tonnage,
accounted for most of the improvement in mill operations early
in the
quarter. Later a fresh stimulus was provided by the growing
needs of
the automobile industry. In the past week or two specifications
the motor car builders have receded, and the operations of some from
mills,
particularly those making flat-rolled products, have been adversely
affected.
This setback, however, is not regarded as signifying anything
more than
exaggerated caution, since April output of motor vehicles
for this country
and Canada promises to total 330,000 to 350,000 units, as
compared with
an estimated production of 275,000 to 300,000 in March, and
further seasonal gains seem probable in May. The keynote of
the
that automobile makers are taking nothing for granted, in situation is
some cases
readjusting factory operations every seven days as reports come
in from
the retail trade.
Close-range specifying by the motor car industry and
irregularities in
demands from other sources have resulted in a slight reduction
in average
raw steel output, ingot production now being estimated at 55%
as compared with 57% in the two previous weeks. Chicago,
Buffalo, the
Wheeling district, Youngstown and Pittsburgh all reported declines,
moot
of them small.
The price situation shows signs of clarifying. Sheets have achieved
more
stability, following the placing of second quarter contracts at rather sharp
concessions in one or two finishes. Weakness persists in black sheets,
which are rather generally available at 2.25c., Pittsburgh, with as low as
2. 20c. reported in some instances. The recently announced advances
on
strip steel have been withdrawn. The outcome of the advance on plates,
shapes and bars is in doubt. In some cases consumers are specifying
fully
against contracts for the first quarter entered at 1.60c., Pittsburgh,
but
there has been no rush to place second quarter contracts at 1.65c. and
the advance to 1.70c. scheduled to become effective on April 1 has
not
been taken seriously.
Pig iron demand is listless and increase in melt has been confined mainly
to automobile foundries. March shipments of iron to the
motor car
industry were 15 to 20% above those of February. Pig iron
prices are
highly sensitive and recent advances in quotations at Pittsburgh
and at
Birmingham for Northern delivery are largely untested.
The scrap market is moving aimlessly, with demand light
and prices
weaker in tone.
The "Iron Age" composite prices are unchanged. Finished
steel, at
2.128c. a pound, is $4.72 a net ton lower than a year ago.
Pig iron, at
$15.71 a gross ton, is $2.04 below the level of 12 months ago.
Steel scrap,
at $11.08 a gross ton, is off $3.50 compared with a year
ago. A comparative table follows:
Finished Steel.
Mar. 311931, 2.128e. a Lb.
Based on steel bars, beams, tank plates
One week ago
2 128e, wire, rails, black pipe and
sheets.
One month ago
2 142c. These products make 87%
of the
One year ago
2 264e, United States output.
High.
Low.
1931
2 142c. Jan. 13
2.121c. Jan. 6
1930
2362c. Jan. 7
2.121c. Dec. 9
1929
2 412o. Apr. 2
2.362e. Oct. 29
1928
2 3910. Dec. 11
2.314e, Jan. 3
1927
2 453o. Jan. 4
2.293e, Oct. 25
1926
24530. Jan. 5
2.403c. May 18
1925
2.560e. Jan. 6
2.396e. Aug. 18
Pig Iron.
Mar. 31 1931, $15.71 a Groin Ton.
Based on average of basic iron at Valley
One week ago
$15.
furnace and foundry irons at Chicago,
One month ago
15.711 Philadelphia, Buffalo,Falley and BirOne year ago
17.75 mingham.
High.
Low,
1931
2115.90 Jan. 6
815.71 Feb. 17
1930
18.21 Jan. 7
15.90 Dec. 18
1929
18.71 May 14
18.21 Dec. 17
1928
18.59 Nov.27
17.04 July 24
1927
19.71 Jan. 4
17.54
Nov. 1
1926
21.54 Jan. 5
19.46 July 13
1925
22.50 Jan. 13
18.96 July 7
Steel Strap.
Mar. 311931. $11.08 a Grose Ton.
Based on heavy melting
One week ago
$11.08 Latham at Pittsburgh, Psteel quodladelPha
One month ago
11.171 and Chicago.
One Year ago
14.58
the industry at approximately
55%, adds "Steel", which further goes on to say:
Whether this slight easiness in production is merely a breathing spell
or whether it marks a definite relapse from the upturn which was unbroken
from the holidays to the week beginning Mar. 23 is as yet an unsafe
generalization. A two-point loss in two weeks is not great, but it is
being searched for a trend.
It is evident, however, that the markets lack the broad, sustaining
base which many believed the successive improvement of January, February,
and March was building up to. There are many elements of strength,
and yet the irregularities in price and sluggish contracting for the second
quarter indicate a drifting, uncertain situation at the moment.
Certainly there is no lack of confidence among promoters of large
projects. The Pennsylvania has let the 100,900 tons of steel for its
improvement program; the New York Central is proceeding with a warehouse at New York requiring 65,000 tons; the Marshall Field estate at
Chicago is taking bids on 25,000 tons; the 12,000 tons for the East Boston
traffic tunnel have been awarded.
Presumably, moderate and small-size consumers of steel would be equally
willing to cover if they had definite requirements. But with purchases
of railroad equipment negligible, the automobile industry as a wholedespite marked activity by Ford and Chevrolet-finding it difficult to
attain a faster gait, and farm implement production extremely slack,
there is no incentive to cover.
Final statistics for March undoubtedly will disclose gains in the production both of pig iron and steel ingots. The booking of 125,000 tons for
the Metropolitan Square-Radio City project in New York will mitigate
any loss in Steel corporation unfilled tonnage as of Mar. 31. A fair record
has been written for the first quarter, but as the second quarter opens the
outlook is obscure. Since seven of the last 10 Aprils have developed
declines in production, any easiness now indicated would not be unseasonal.
The Pennsylvania RR. distributed 100,900 tons of steel, chiefly structural material, as follows: McClintic-Marshall Corp., subsidiary of Bethlehem Steel Corp., 34,000 tons; American Bridge Co., subsidiary of United
States Steel Corp., 26,000 tons; Shoemaker Bridge Co., 14,000 tons;
Ingalls Iron Works Co., 13,000 tons; Mt. Vernon Bridge Co., 4,300 tons;
Lehigh Structural Steel Co. and Fort Pitt Bridge Works, each 4,000 tons,
and Phoenix Bridge Co., 1,600 tons. This week's structural awards, at
143,904 tons, were second only to the 146,484 tons placed two weeks ago
when the Radio City steel in New York was let.
March freight car orders were boosted to 2,249 with the award of 1,000
refrigerator cars by the Merchants' Despatch line to its own shops. In
three months of 1931 freight car awards have totaled 2,399; a year
ago, 28,217.
Rarely has the price structure been so inconclusive. On steel bars, plates,
and shapes measurable progress has been made in applying 1.65c., Pittsburgh, or equivalent to second quarter contracts. In some cases 1.60c.
arrangements have been extended, but in the main consumers have consented to the $1 advance. The 1.70c. spot price for the second quarter is,
of course, yet untested.
Black, galvanized, and autobody sheets continue irregular, and tend
toward weakness. In strip the attempt to advance the price has failed.
Carryover business in wire products bears heavily on the higher asking
prices. Railroad spikes are off $2 per ton. Scrap is variable, with weakness preponderant. Cast iron Pipe has been shaded. Iron ore levels have
definitely been reaffirmed on the Ford inquiry.
Buffalo steel operations, at 49%, are up three points this week. Pittsburgh is unchanged at 52%, Birmingham at 65%, and Chicago at 60%.
Cleveland at 62% is off six points, Youngstown at 48% in down three
and eastern Pennsylvania at 49% is off two.
Softness in sheet prices lowers "Steel's" market composite 4c. this week
to $31.67, compared with an average of $31.66 for March and $31.65 for
February.
Steel ingot production during the week ended Monday
(Mar. 30) decreased about 2% from the preceding seven
days, according to the "Wall Street Journal" of April 1.
The drop was due entirely to a falling off of 3%% among
independents, which is generally attributed to a reduction
in specifications from •lihe automobile companies. This
affected operations of some independents rather severely
In the past week. An increase of 1% is recorded in the ingot
output of the U. S. Steel Corp. The "Journal" also reports:
For the entire industry the average is now estimated at a shade under 55%
of the theoretical capacity. This compares with a slight fraction under
57% in the preseding week and 561
/
2% two weeks ago.
The U. S. Steel is credit with running at around 563453, contrasted
with 5514% a week ago and 55% two weeks ago. Leading independents
are at 54%, against 571
/
2% last week and nearly 57% two weeks ago.
In the corresponding week of 1930 there were increases of about 3% in
the operations of the steel plants, U. S. Steel being at 83%, independents
at 69%, and the average above 75%. However, this gain was a "flash
In the pan", for the activities decreased in the succeeding weeks and the
peak of ingot production in 1930 was reached during February.
During the final week of March in 1929 the Steel Corp. was running at
97%, leading independents at above 93%, and the average was nearly 95%.
In the same week of 1928 the Steel Corp. was at 90%, independents at
better than 80%, and the average was nearly 85%.
Coal Miners in Indiana District Reach New Wage
Agreement.
From the New York "World-Telegram" we take the following (Associated Press) from Terre Haute, Ind., April 3:
2480
FINANCIAL CHRONICLE
A new wage and working agreement has been reached between District
11, United Mine Workers of America and the Indiana Coal Operators
Association. The agreement, subject to approval of a district miners
convention, calls for the same wages under which the miners worked last
year with a few changes in working conditions.
Signing of the agreement will send back to work between 5,000 and
7,000 shaft coal miners at $6.10 per day. 67 cents per ton for loading in
machine mines and 91 cents for loading in pit mines.
Coke Lowest Since War-Chicago Prices at Ovens Cut
$2 for April Only-Monthly Advances to Follow.
Chicago advices to the "Wall Street Journal" of April 2
said:
Effective April 1, Chicago coke prices at the ovens in the city were reduced $2 a ton for April only. New prices f.o.b. ovens, freight allowed to
retail yards within the Chicago switching district, are $5.75 for egg, stove
and No. 1 nut. No. 2 nut is $5.25 a ton. These prices are the lowest
since 1917.
An increase of 25 cents. on May 1, and another advance of 25 cents a ton,
on June 1,on egg,stove and No. 1 nut,have also been announced. Monthly
advances after June 1 are anticipated and may be announced later.
4 Cents a Pound.
Price of Copper Down to 93
The following is from the New York "Times" of March 31:
Sales of copper by custom smelters at 9% cents a pound or a quarter
cent less than the producers' official domestic price were made yesterday.
For several days dullness in the copper market had led second hands to
offer a substantial tonnage at 9X cents but custom smelters and producers
had continued to ask 10 cents.
Sales of custom smelters have been small in the last fortnight, and with
stocks of copper accumulating, lower prices were quoted in an attempt to
move the metal.
Malaya Introduces Legislation to Enforce Tin Regulation Plan.
Legislation defining the operation of the international tin
regulation plan has been introduced in the Federated Malay
States, according to a cable message received in New York.
The measure, which is entitled "Tin and Tin Ore Restriction Enactment," is designed "to give effect to the international agreement to restrict, regulate and control the production, possession, sale, purchase and export of tin and tin
ore, to which agreement the Federated Malay States are
a party and which shall be deemed to have commenced to
operate on March 1 1931 and shall remain in force until
the Chief Secretary by gazette notification cancels same."
It is also stated:
[VOL. 132.
with 507,407,000 tons in the coal year to March 22 1930.
The Bureau's statement follows:
BITUMINOUS COAL.
The total production of soft coal during the week ended March 21,
including lignite and coal coked at the mines, is estimated at 7,403,000
net tons. Compared with the output in the preceding week, this shows a
decrease of 968,000 tons, or 11.6%. Production during the week in 1930
corresponding with that of March 21 amounted to 7,832.000 tons.
Estimated United States Production of Bituminous Coal (Net Tons).
1929-30
1930-31
Cal. Year
Cal. Year
to Date.a
Week.
to Date.
Week.
Week Ended8,565,000 491,498,000
7,705,000 414,179,000
March 7
1,710.000
1,428,000
1,443,000
1,284,000
Daily average
8,077.000 499,575,000
8.371,000 422,550,000
March 14..b
1,703,000
1,346,000
1.442,000
1,395,000
Daily average
7,832,000 507,407,000
7,403,000 429,953,000
March 21-c
1,695,000
1,305,000
1,438,000
1,234,000
Daily average
a Minus one day's production first week in April to equalize number of
days in the two years. b Revised since last report. c Subject to revision.
The total production of soft coal during the present coal year to March
21 (approximately 299 working days) amounts to 429,953,000 net tons.
Figures for corresponding periods in other recent coal years are given
below:
466,896,000 net tons
507,407.000 net tons 1927-28
1929-30
578,567.000 net tons
500,368,000 net tonsI1926-27
1928-29
432,121,000 net tons.
1921-22
As already indicated by the figures above, the total production of soft
coal for the country as a whole during the week ended March 14 is estimated at 8,371,000 net tons. Compared with the output in the preceding
week, this shows an increase of 666,000 tons or 8.6%. The following table
apportions the tonnage by States and gives comparable figures for other
recent years.
Estimated Weekly Production of Coal by States (Net Tons).
Mar. 1923
Week Ended
Mar. 14'31. Mar. 7'31. Mar. 15'30. Mar.16'29. Average.a
423,000
341,000
281,000
258,000
262,000
Alabama
22,000
18,000
13,000
18.000
18,000
Arkansas
195,000
149,000
125,000
142,000
132,000
Colorado
1,694,000
894,000 1,051,000
1,114,000 1,070,000
Illinois
575,000
358,000
286,000
309,000
Indiana
329,000
122,000
81,000
63,000
66,000
Iowa
71,000
84,000
55,000
37,000
54.000
Kansas
50,000
Kentucky560,000
824,000
628,000
Eastern
612,000
704.000
215,000
252,000
179,000
164,000
Western
201,000
52.000
55,000
44,000
44,000
Maryland
42,000
32,000
15,000
15,000
Michigan
14,000
16,000
60,000
68,000
53,000
Missouri
65,000
66,000
68,000
58.000
39,000
Montana
49,000
43,000
53,000
50.000
30,000
New Mexico
28.000
28,000
34,000
25,000
23,000
North Dakota__ _
32,000
31,000
740,000
382,000
371,000
Ohio
391,000
506,000
55,000
51,000
28,000
Oklahoma
32,000
36,000
Penna.(bitum.)_ 2,156,000 2,045,000 2,421,000 2,786,000 3,249,000
118,000
107,000
92,000
96,000
108,000
Tennessee
19,000
22,000
17,000
11,000
Texas
11,000
77,000
68,000
55,000
64,000
63,000
Utah
256,000
230,000
227,000
198,000
224,000
Virginia
49,000
74,000
38,000
32,000
31,000
Washington
West Virginia1,818,000
1,172,000
1,424,000
1,294,000
1,500,000
_
_
Southern_b_
683,000
717,000
596,000
536,000
544,000
Northern_c
126,000
136,000
96,000
79,000
83,000
Wyoming
7,000
4,000
2,000
2,000
2,000
Other States_d
The bill gives authority to the Chief Secretary to issue rules which shall
operate forthwith. No decisions made according to the new provisions
are disputable in courts and no suits may be brought against the Government.
Production will be controlled by assessment committees for each State,
from whose decisions there will be no appeal. Certificates allocating permissible production will be issued only for quota periods not to exceed six
months, and will be granted only to owners of land which was mined in
made to open
1929 or 1930 unless it can be proved that preparations were
the cermines in 1930. Sales are permissible only in accordance with
tificates of production.
Total bitunfs_ 8,371,000 7,705,000 8,077,000 9,761.000 10,764,000
Penalties for contravening the regulations range from cancellations of
are sub- Penn. anthracite. 1,085,000
917,000 1,147,000 2,040,000
957.000
licenses and confiscations to fines of $2,000. Deliberate evasions
lect to fines of twenty times the value involved or a flat penalty of $5.000.
Total all coal 9,456,000 8,662,000 8,994,000 10,908,000 12,804,000
a Average weekly rate for the entire month. b Includes operations on
Siam and Burma Invited to Joint Other Tin-Producing the N.& W., C. & 0., Virginian, and K.& M. c Rest of State, including
Panhandle. d Figures are not strictly comparable in the several years.
Countries in Regulation Plan.
PENNSYLVANIA ANTHRACITE.
anThe British Colonial Office has issued the following
The total production of anthracite in the State of Pennsylvania during
York
New
in
cable
by
received
was
which
nouncement,
the week ended March 21 is estimated at 1,267,000 net tons. Compared
with the output in the preceding week, this shows an increase of 182,000
on April 2:
tin
of
export
and
production
tons, or 16.8%. Production during the week in 1930 corresponding with
The international committee to regulate
of the that of March 21 amounted to 940,000 tone.
held its first meeting in London on Wednesday. Since the date
informal meeting held on Feb. 27, the governments of Bolivia, Nether.Estimated Production of Pennsylvania Anthracite (Net Tons).
and are
1930a
1931
lands East Indies, Malaya and Nigeria have formally accepted
meeting.
Daily
Daily
that
at
up
applying the regulation scheme drawn
Avge.
Week.
Ave.
organizathe
Week.
to
Week
Ended-chiefly
relating
nature,
domestic
a
of
Various questions
1,156,000
192,700
159,500
discussed and March 7
957,000
tion of committees and preparation of statistics, were
917,000
152,800
180,800
Burma and March 14
1.085.000
decided. The committee is asking the governments of Siam.
940.000
156,700
211,200
to adhere to the March 21
1,267,000
certain other countries whose tin production is important
slightly to insure comparability with 1931.
as
to
revised
intimate
Figures
for
a
requested
been
1930
have
governments
scheme. Participating
The total production of beehive coke during the week ended March 21
in principle the suggestion that
soon as possible whether they approve
research is estimated at 35,100 net tons. This is in comparison with 36,400 tons
the international research scheme be elaborated to examine
to
and
promote
tin
of
during the preceding week and 68,800 tons in the week of 1930 corresproblems connected with the use and potential uses
ponding with that of March 21.
development of the tin industry.
Estimated Weekly Production of Beehive Coke (Net Tons).
1930
1931
Week Ended
Comas
Decrease
Shows
Output
Bituminous Coal
Mar.21'31.bMar.14'31c Mar.22'30. to Date. to Date.a
RegionPennof
oduction
700,400
387,200
62,000
32.400
Penn., Ohio & W.Va. 30,600
pared With a Year Ago-Pr
65,300
35,800
4,400
3.400
Tenn. and Virginia... 3,600
sylvania Anthracite Higher.
2,400
32,700
12,400
600
Colo., Utah & Wash. 900
According to the United States Bureau of Mines Department of Commerce, production for the week ended March
21 1931, amounted to 7,403,000 net tons of bituminous
coal. 1,267,000 tons of Pennsylvania anthracite and 35,100
tons of beehive coke, as against 7,832,000 tons of bituminous
coal, 940,000 tons of Pennsylvania anthracite and 68,800
tons of beehive coke in the week ended March 22 1930, and
8,371,000 tons of bituminous coal, 1,085,000 tons of Pennsylvania anthracite and 36,400 tons of beehive coke in the
week ended March 14 1931.
During the coal year to March 21 1931, there were produced 429,953,000 net tons of bituminous coal, as compared
435,400
68,800
798.400
36,400
United States total 35,100
11,467
6,310
11,571
6,067
5,850
Daily average
a Minus one day's production first week in January to equalize number
to
revision. c Revised since last
of days in the two years. b Subject
report.
for the 28 days of February
coke
by-product
The total output of
amounted to 2,897,866 net tons, a decrease of 194,287 tons when compared with the 3,092,153 tons produced in the 31 days of January. The
daily rate of output in February was 103,495 tons as against 99,747 tons
in January. Beehive coke production during the month of February is
estimated at 162,900 tons in comparison with 163,000 tons in January.
The total quantity of coal consumed in the production of coke during
February is estimated at 4,407,600 net tons of which 4,155,300 tons
was used in by-product ovens and 252,300 tons in beehive ovens.
APRIL 4 1931.]
FINANCIAL CHRONICLE
2481
President Lewis of United Mine Workers Declares 3,600,000 gross tons, or
about 5Yao. In its survey, issued
Strike of Coal Miners at Glen Alden Collieries Un- Jan. 5 the Anthraci
te Bureau of Information further
warranted and Illegal.
says:
Associated Press advices from Wilkes-Barre, Pa. on April
When the general depression which prevailed in 1930, the restricted
purchasing power of the anthracite-consuming public, and the growing
1 said:
habit
of hand-to-mouth buying are taken into consideration, and when compared
John L. Lewis, International President of the United Mine
Workers, in with declines
a telegram to-day to leaders of the strike of 20,000 Glen
in other industries, this loss in anthracite production becomes
Alden Coal Co.
practically negligible. And, moreover, the first four of the coal-burnin
employees here, declared the suspension of operations
g
"unwarranted and
months of 1930 were notable for their mild temperatures, resulting
illegal."
in a
Over a score of Glen Alden collieries in Luzerne County
decreased production in those months of a little over 2,650,000 gross
have been idle
tons,
for more than a week as a result of the general strike called
by the miners' or more than 75% of the decrease for the entire year. It would appear
grievance committee without the sanction of the district
officers. The from this that, all untoward conditions considered, the anthracite industry
strikers sent a telegram to President Lewis yesterdc y asking
him to come in 1930 held up remarkably well, and it may be anticipated that if only
here and investigate their complaints.
normal weather conditions prevail during January, February,
and March
Mr. Lewis in his reply urged the strikers to return to work.
1931, the production of anthracite for the coal year 1930-31
will not be
"It is an amazing thing that thousands of men will unnecessari
ly and less than its immediate predecessor.
without Justification pursue a course which penalizes
Shipments, as reported to the Anthracite Bureau of Information, for
themselves, their
the
families, their neighbors and their employers," he said.
eleven months from January to November 1929, amounted to 53,070,728
The strike "violates the principle of collective bargaining,
the text of gross tong. For the eleven months, January to November inclusive in 1930
the joint wage agreement, and the pledge made by the
officers of your they amounted to 49,456,323.
union to the anthracite operators," Mr Lewis said.
The shipments of anthracite by months from January 1 1929
to November 1930, were as follows:
Pittston Anthracite Coal Mines to Close-Shut Down
Adds 2,500 to 15,000 Idle by Strike.
The following Associated Press advices from Wilkes-Barre
(Pa.), March 29 are from the new York "Times":
The closing of two collieries, throwing 2,500 men out of work,
was added
to-night to the troubles of Pennsylvania's anthracite coal
field, harassed
during the past week by the deadlocked strike of 15,000 employees
of the
Glen Alden Coal Co.
Officials of the Pittston Coal Co. announced that two of its
five mines
In the Pittston field will close Tuesday for an indefinite period.
Depression
In the coal markets was given as the reason.
Meanwhile, all collieries of the Glen Alden Co. will remain idle to-mo
rrow
by decision of the general grievance committee of the miners.
The company officials have refused to negotiate on differences over
working conditions until the men return to work.
1929January
February
March
April
May
June
July
August
September
October
November
December
Gross Tons. 19305,811,972 January
5,168,197 February
3,628,691 March
5,160,520 April
4,817,334 May3,778,679 June
3,687,586 July
4,564,426 August
5,360,130 September
6,477,729 October
4,615,464 November
5,831,534 December
Gross Tons.
5,405,788
4,708,707
3,430,940
3,662,647
4,750,368
4,052,939
4,345,841
4,821,790
3,899,405
6,177,851
4,200,047
In the review of the anthracite industry for 1929 it was stated that
its
history for that year was marked more by preparation for the future than
by productive activity as compared with preceding years. The
same is
true of the record for 1930. Mr. Noah H. Swayne, in a comprehensive
article contributed to the Mining Congress Journal for December, has shown
with marked clearness how those preparations have been carried forward.
It is a record of notable achievement to which Mr. Swayne, himself, has In
The strike at the collieries of the Glen Alden Coal Co. was no small degree contributed.
referred to in these columns March 28, page 2295.
There is nothing to add to what Mr. Swayne had to say except to emphasize his statement that the anthracite industry is neither decadent nor
despondent. Its confidence in the future is attested by the large capita
investments made in recent months and still being made. That the indusDecrease in Employment in Pennsylvania Anthrac
ite try is faced with serious problems is granted, but it has faced no, or little,
Colleries Reported by Philadelphia Federal Re- less problems in earlier stages in its history, as when it was, at recurring
periods, driven from the bled furnace, the locomotive, the ocean liners,
serve Bank-Wages Increased in February.
and the gas works. The problems the industry faces to-day had their beginAnthracite employment in Pennsylvania was 1.4%
smaller ning principally in the labor troubles of 1922 and 1925-26, which for
a period of more than
while the wage payments were 5.3% larger in February
months in each instance shut off completely the
than supply of hard coal andfive
produced in the minds of the anthracite-consuming
January, according to figures received by the Philadel
phia public a feeling of antagonism for the time being and a not unreasonable
Federal Reserve Bank from the Anthracite Bureau of In- doubt as to their dependence on anthracite for the future
fuel requireformation which obtains reports from 159 collieries employ- ments.
The
need
for
apprehensio
any
n
on
the
part
of
the
public
along these
ing 123,000 workers with a weekly payroll of nearly $3.lines has passed, for on August 8 1930, an agreement was entered into
700,000. The Bank also says:
between the anthracite operators and their employees, which renews for
The employment index stood at 87% of the 1923-25
average or about a period of five and a half years, or for six winters, assurances of indus19% lower than in Feb. 1930. The payroll index was almost
80% of the trial peace and an uninterrupted supply of that domestic fuel-Pennsylthree-year average or 23% below that of a year ago.
vania anthracite-for which there is no satisfactory substitute. The signComparative indexes follow:
ing of that contract was the outstanding feature of the anthracite industry
in 1930. The conditions under which the negotiations were conducted
and
1923-1925 Averag100.
the agreement reached were unique. There was no strike or suspension,
and there was no stage play or trial of the cause in the newspapers
prior to
Employment.
Wage Payments.
the reaching of an agreement. The negotiations were carried on quietly
in
a
New
York
office,
when
but
agreement
1929.
was
1930.
reached
1931.
1929.
the signing at the
1930.
1931.
contract was made in public in the city of Scranton, and the event was
made
January
109.8
105.6
112.6
88.3
92.1
the occasion for a celebration. It marked a new era and a
75.8
February
109.4
new spirit
107.8
107.0
87.1
103.7
79.8
March
in wage negotiations. Strikes are taboo and the means for avoiding
101.3
83.3
79.5
67.1
them
April
104.1
are provided in the contract. Their utter futility had been demonstrate
84.8
77.4
63.9
d
May
107.2
92.8
85.4
85.8
in
the
controversie
of
1925-6.
1922
s
and
Neither miners nor operators have
June
95.4
89.5
71.0
78.2
July
recovered
the
losses
sustained,
then
but
with
85.6
peace
90.3
for the future secured,
56.8
72.6
August
with the industry on its toes in the solving of the problems that
93.6
81.7
68.9
68.2
confront it
September
105.5
91.9
83.4
78.2
and for service to the public, confidence in its continued
October
progress is
109.8
96.2
116.6
102.3
justified.
November
107.6
94.7
87.6
83.2
December
110.8
96.5
110.3
85.0
The Anthracite Industry in 1930-Production
Below
That of 1929 by About 33/
2 Million Tons.
Anthracite Coal Prices Reduced at Mines-Retail
Prices Also Lowered.
Press advices from Philadelphia on March 27 said:
Effective April 1, prices at the mine of egg, stove and chestnut grades
The production of anthracite in 1930, as estimate
of
d by the
coal will be reduced and the prices on pea and buckwheat grades
Anthracite Bureau of Information in Philadelphia, will fall anthracite
advanced.
short of that of the preceding year by about 3,500,000 gross
At the same time operators announced that the new prices are based on
tons. The total production of anthracite for eleven months, 2,000 lbs., instead of on the previous basis of 2,240 lbs. The reductions,
therefore, are not so large proportionately as they would appear, and
the
January-November 1930, as estimated by the United
States price rises on the cheaper grades are slightly higher than they appear.
Prices compare as follows:
Bureau of Mines (these figures including coal sold at the
New
Old May 1.
mines for local delivery and that consumed in the operation
Price.
Price. 1930.
of the properties, and which are not included in the shipment Broken
$6.50
$8.50
68.00
figures) amounted to 56,663,000 gross tons. The total pro- Egg
6.75
8.65
8.10
duction in December 1929, as estimated by the Bureau of Stove
7.00
9.15
8.60
Chestnut
Mines, was 6,837,500 gross tons, which was somewhat above
7.00
8.65
8 10
Pea
4.75
5.00
4.40
the average for that month. Weather conditions in the closBuckwheat
3.25
3.00
3.00
ing month of 1930, while recording a few days of snappy
The following Philadelphia advices are taken from the
temperatures, were generally favorable to the consumer
s "Wall Street Journal" of March 31:
rather than the producers of anthracite. Production deRetail coal prices in Philadelphia will be cheaper in April
following
clined accordingly and, it is estimated, will not exceed reductions made by large anthracite operators in
quotations at mines.
Dealers
began quoting 2,000-pounds unit or net ton basis a year
5,800,000 tons, bringing the total for the year up to $62,463,ago
and their April prices are about $1.75 lower on stove $1.50
lower on egg
000 tons which, when compared with that of 1929 (65,918,000 at $12.50 and $1.25 lower
on chestnut at $12.75 than their prices for
gross tons), will show a decrease of between 3,400,000 and this year. Pea is down about 25 cents to $10.25 while buckwheatMarch
is advanced 25 cents to $8.25.
[VOL. 132.
FINANCIAL CHRONICLE
2482
r Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve Bank credit
outstanding during the week ending April 1, as reported by
the twelve Federal Reserve Banks, was $919,000,000, an increase of $39,000,000 compared with the preceding week and
a decrease of $178,000,000 compared with the corresponding
week in 1930. After noting these facts, the Federal Reserve
Board proceeds as follows:
$943,000,000, an
On April 1 total Reserve Bank credit amounted to corresponds
with
increase of $85,000,000 for the week. This increase
member
Increases of $74,000,000 in money in circulation and 835,000,000 in
in monetary
bank reserve balances, offset in part by increases of $9,000.000
gold stock and $13,000.000 in Treasury currency, adjusted.
Reserve
Holdings of discounted bills declined 89,000,000 at the Federal
York, RichBank of San Francisco and increased $2,000,000 each at New
a small
mond and Atlanta, all Federal Reserve banks combined showing
open
decrease for the week. The System's holdings of bills bought in
securities
States
market increased $84,000,000 while holdings of United
were practically unchanged.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not previously included in the condition statement,such as monetary
gold stock and money in circulation. The Federal Reserve
Board's explanation of the changes, together with the definition of the different items, was published in the May 31
1930 issue of the "Chronicle" on page 3797.
The statement in full for the week ended April 1, in
comparison with the preceding week and with the corresponding date last year, will be found on subsequent pages—
namely, pages 2534 and 2535.
Changes in the amount of Reserve bank credit outstanding
and in related items during the week and the year ended
April 1 1931 were as follows:
April. 1 1931. Mar.25 1931. Aprli 2 1930.
2 523,000,000 2,515,000,000 1,956,000,000
Investments—total
1 398,000,000 1,404,000.000 1,118,000,000
1 125,000,000 1,111,000,000 838,000,000
U. S. Government securities
Other securities
793,000,000
42,000,000
822,000,000
41,000,000
Reserve with Federal Reserve Bank
Cash in vault
758.000,000
46,000,000
Net demand deposits
Time deposits
Government deposits
5,849,000,000 5,869,000,000 5,426,000,000
1,235,000,000 1,213,000,000 1,368,000,000
77,000,000
112,000,000 131,000,000
Due from banks
Due to banks
125.000,000 116,000,000 122,000,000
1,427,000,000 1,311,000,000 1,039,000.000
15,000,000
Borrowings from Federal Reserve Bank
Loans on secur. to brokers & dealers;
1,391,000,000 1,414,000,000 1,547,000,000
For own account
258,000,000 260,000,000 1,104,000,000
For account of out-of-town banks
226,000,000 234,000,000 1,316,000,000
For account of others
Total
On demand
On time
Loans and investments—total
1,875,000,000 1,908,000,000 3,968,000,000
1,506,000,000 1,517,000,000 3,474,000,000
369,000,000 391,000,000 494,000,000
Chicago.
1,918,000,000 1.963,000,000 1,846,000,000
1,302,000,000 1,325,000,000 1,483,000,000
Loans—total
On securities
All other
Investments—total
U.S. Government securities
Other securities
Reserve with Federal Reserve Bank
Cash in valult
767,000,000
535,000,000
781,000,000
544,000,000
882,000,000
602,000,000
616,000,000
638,000,000
362,000,000
310,000,000
306,000,000
339,000,000
299,000,000
158,000,000
204,000,000
170,000,000
15,000,000
172,000,000
12,000,000
181,000,000
13,000,000
1141,000.000 1,194,000,000 1,241,000,000
637,000,000 619,000,000 532,000,000
7,000,000
31,000,000
27,000,000
Net demand deposits
Time deposits
Government deposits
161,000,000
365,000,000
Due from banks
Due to banks
Borrowing from Federal Reserve Bank-.
171,000,000
390,000,000
133,000,000
346.000,000
1.000,000
Increase (+) or Decrease(—)
Since
April 1 1931. Mar.251931. April 2 1930.
$
—77,000,000
164,000,000 —1,000,000
167,000,000 +84,000,000 —134,000,000
+68,000,000
—1,000,000
598,000,000
—36,000.000
+4,000,000
15,000,000
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
As explained above, the statements for the New York and
Chicago member banks are now given out on Thursday,
with the figures for the Reserve banks themTOTAL RES'VE BANK CREDIT— 943,000,000 +85,000.000 —181,000,000
simultaneously
+9,000,000 +275,000,000
4,698,000,000
Monetary gold stock
+4,000,000
the same week, instead of being held
+13,000,000
covering
1,778,000,000
selves,
and
adjusted
currency
Treasury
4,621,000,000 +74.000,000 +104,000,000 until the following Monday, before which time the statistics
Money in circulation
+17.000,000
2,392,000,000 +35,000.000
Member bank reserve balances
covering the entire body of reporting member banks in 101
Unexpended capital funds, non-mem—21,000,000
407,000,000
6‘c
cities cannot be got ready.
deposits.
ber
In the following will be found the comments of the Federal
Returns of Member Banks for New York and Chicago Reserve Board respecting the returns of the entire body of
Federal Reserve Districts—Brokers' Loans.
reporting member banks of the Federal Reserve System for
Beginning with the returns for June 29 1927, the Federal the week ended with the close of business on March 25:
Reserve Board also commenced to give out the figures of the
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on March 25 shows decreases for the week
member banks in the New York Federal Reserve Districts of
$65,000,000 in loans and investments, $92,000,000 in net demand deas well as those in the Chicago Reserve District, on Thurs- posits and $114,000,000 in Government deposits, and increases of $29,days, simultaneously with the figures for the Reserve banks 000.000 in time deposits and $8,000.000 in borrowings from Federal
Banks.
themselves, and for the same week, instead of waiting until Reserve
Loans on securities increased $28,000,000 at reporting banks in the
the following Monday, before which time the statistics New York district, and declined $23.000.000 in the Chicago district and
loans declined $32.000.covering the entire body of reporting member banks in the $16,000,000 at all reporting banks. "All other"
000 in the New York district, $7,000.000 in the San Francisco district
different cities included cannot be got ready.
and $32,000,000 at all reporting banks.
Below is the statement for the New York member banks
Holdings of United States Government securities declined 858,000,000
current
the
at reporting banks in the New York district and increased $18,000,000
for
banks
and that for the Chicago member
in the Philadelphia district, all reporting banks showing a, net reduction
week as thus issued in advance of the full statement of the of $46,000,000. Holdings of other securities increased $15,000.000 in the
the
until
available
be
not
will
latter
which
New York district, $6,000,000 in the Philadelphia district and $29,000,000
member banks,
all reporting banks.
coming Monday. The New York statement, of course, also atBorrowings
of weekly reporting member banks from Federal Reserve
The
banks.
member
reporting
of
loans
brokers'
the
includes
Banks aggregated $35,000,000 on March 25, the principal change for the
Bank
the
for
figures
of
exclusive
week being an increase of $11,000,000 at the Federal Reserve Bank of
present week's totals are
San Francisco.
on
doors
its
closed
which
city,
this
in
States
United
of
A summary of the principal assets and liabilities of weekly reporting
loans
showed
bank
this
of
report
last
The
Dec. 11 1930.
member banks, together with changes during the week and the year ended
aggregrand
March 25 1931, follows:
and investments of about $190,000,000. The
Increase (+) or Decrease (—)
Since
gate of brokers' loans the present week records a decrease
25
13 1931. Mar. 26 1930.
Mar.
1931.
Mar.
at
standing
1931
1
April
on
of $33,000,000, the total
$
$
$1,875,000,000. The present week's decrease of $33,000,000 Loans and investments—total----23.046,000,000 —65.000.000 +483,000,000
15,470,000,000
—48,000,000 —1,415,000,000
follows a decrease last week of $5,000,000 and an increase Loans—total
—16,000.000 — 834,000,000
of $94,000,000 two weeks ago. Loans "for own account" On securities
7.349,000,000
—32,000,000 —581,000,000
8,121,000,000
All other
decreased during the week from $1,414,000,000 to $1,391,—17,000,000 +1,898,000,000
7.576,000,000
000,000, loans "for account of out-of-town banks" from Investments—total
3,814.000,000
—46,000,000 +970,000.000
$260,000,000 to $258,000,000 and loans "for account of
U. S. Government securities
+29,000,000 +928,000,000
3,762,000.000
Other securities
others" from $234,000,000 to $226,000,000.
Bills discounted
Bills bought
United States securities
Other Reserve bank credit
BANKS IN CENTRAL
CONDITIONS OF WEEKLY REPORTING MEMBER
RESERVE CITIES.
New York.
April 1 1931. Mar.251931. April 2 1930.
Reserve with Federal Res've banks 1,779,000,000
205,000.000
Cash in vault
—67.000.000
+60,000,000
7,000,000
13,690,000,000
7.278,000,000
408,000.000
—92,000,000
+29,000,000
—114,000,000
+485,000,000
+193,000,000
+170,000,000
1,866,000,000
3,912,000,000
—90,000,000
—82,000,000
+662,000,000
+990,000,000
35,000,000
+8,000,000
—12,000,000
Net demand deposits
Time deposits
Government deposits
Loans and investments—total
7,974,000,000 8,036,000,000 7,850,000,000
Loans—total
5 451,000,000 5,521,000,000 5,894,000,000
Due from banks
Due to banks
3 183,000,000 3,244,000,000 3,393,000,000
2.268,000.000 2,277,000,000 2,501,000,000
Borrowings from Fed. Res. banks_
On securities
All other
APRIL 4 1931.1
FINANCIAL C1TRONICLE
J. P. Morgan Sails for Cyprus from Athens.
J. P. Morgan and his party, including the Archbishop
of Canterbury, left Athens for Cyprus on April 3 aboard
the "Corsair." Mr. Morgan and his party reached Athens
April 2. Items regarding his trip abroad appeared in these
columns March 21, page 2103, and March 28, page 2298.
Montagu Norman, Governor of Bank of England,
Confers in New York With Heads of New York,
Philadelphia and Chicago Federal Reserve Banks—
Will Confer in Washington with Secretary Mellon
and Governor Meyer of Federal Reserve Board.
Montagu Norman, Governor of the Bank of England,
whose arrival in this country was noted in our issue of a
week ago, page 2298, will, with Governor Harrison of the
New York Federal Reserve Bank, confer in Washington
with Secretary of the Treasury Mellon and Eugene Meyer
Jr., Governor of the Federal Reserve Board. On Thursday,
April 2, Mr. Norman and 0. M. W. Sprague, American
adviser to the Bank of England, were entertained by the
directors of the New York Federal Reserve Bank, at their
regular Thursday luncheon preceding the Board's meeting.
The New York "Times" account of the gathering said:
2483
The latter has also prepared a draft of an international convention for
establishment of the bank.
These texts are being withheld and the delegation is meeting in private.
It is understood the plant is so arranged that the bank would be useful
only to farmers of backward Balkan and Eastern European countries,
whose desperate need for credit is indicated by the fact that interest
rates of 20, 30 and 50% are now being charged to them. The institution
is thus not a complete international mortgage bank, such as private interests recently established at Basle to deal largely with Germany.
The new institution, though semi-public in character, will be run like
a private bank. It is understood its President will be named by the
League Council, and the League financial committee will enjoy certain
rights of supervision, but as soon as the bank is on its feet the League
will withdraw, as it did in the reconstruction in Austria, Hungary, Greece
and elsewhere.
The figure favored for the bank's capital is $50,000,000, of which
$5,000,000 would be paid in. In addition, certain governments would be
called on to provide the bank with a reserve fund from the outset. Both
its stock and bonds would be issued in the open market. The capital is
expected to come chiefly from France, no need for New York's help
apparently being felt.
The delegation is presided over by Meinherr Meulen of the Amsterdam
banking firm of Hope & Co. and includes high officials of the national
mortgage banks of France,,Italy and Germany; Dudley Ward of the
British Overseas Bank; Wilem Pospisil, president of the National Bank
of Czechoslovakia, and M. Ilynarski, former vice president of the Bank
of Poland.
The delegation is expected to sit most of this week, and the scheme
as approved by it will go to the Financial Committee of the League and
the Pan-European Commission. It is confidently expected that the convention for establishing the bank will be ready for signature in May.
The League's proposal for a farm loan bank was previGeorge W. Norris. Governor of the Federal Reserve Bank of Philadelphia, and James B. McDougal, Governor of the Federal Reserve Bank of ously mentioned in these columns February 21, page 1333.
Chicago, were also present, having come here to pay their respects to
Mr. Norman. At the Federal Reserve Bank the official spokesman said
Federal Reserve Bank of New York on Gold Movement
the meeting had been purely social, a courtesy to Mr. Norman.
As is the practice when visiting Federal Reserve officials are in New
in March.
York on Thursday, Messrs. Norris and McDougal were invited to attend
The following is from the April 1 Monthly Review of
the meeting. The presence of a full board and of these new faces caused
the rumor to run through the financial district that an important con- the Federal Reserve Bank of New York:
ference was being held.
Gold imports through the Port of New York during March included
It was reported that Mr. Norman had attended the board meeting chiefly receipts from South America and Mexico; $11,500,000 came
and that several members of the Federal Reserve Board had been present. from Argentina,
$2,900,000 from Colombia, $1,200,000 from Uruguay,
These reports were officially denied. Neither Mr. Norman nor Mr. and $3,600,000
from Mexico. At San Francisco, $1,600,000 was reSprague, it was said, attended the board meeting, nor did any members ceived from
japan, and $1,600,000 from China. There was in addiof the Federal Reserve Board come from Washington to be present.
tion a gain of $3,000,000 to the country's gold stock through a decrease
From the New York "Journal of Commerce" of yesterday in the amount of gold held under earmark for foreign account. Exports
were negligible, and a preliminary estimate indicates that the coun(April 3) we take the following:
try's gold stock has
While official comment as to the subjects under discussion were withheld, it is understood that the more important problems discussed included
the gold position of the Bank of England, the balance of payments of
Germany in relation to reparations and inter-allied debt payments, the
silver problem with particular reference to India and a program for financial rehabilitation of Brazil through co-operation of the Federal Reserve
banks with the Bank of England.
Negotiations with foreign central banks have hitherto been handled by
the heads of the Federal Reserve Bank of New York alone,since that institution has agency contracts with foreign central banks. This was par-
ticularly true when the late Gov. Strong carried on important negotiations
with foreign central banks, as for example in the summer of 1927. when
a world-wide easy money policy was adopted. In view of the widespread
been increased about $26,500,000, as the result of
net imports and changes in earmarked holdings during the month.
During March the Bank of England was able to increase its gold
holdings by 13,000,000, mainly through the purchase of £2,600,000 of
gold in the open market and the receipt of £750,000 in sovereigns from
South Africa. On the 17th of the month the Bank of England made
its first open market purchase since March, 1930. Of the South African
gold offered in the open market earlier in the month, France obtained
11,200,000 and Belgium £1,300,000. About 20,000,000 reichsmarks of
gold were received by Germany from Russia during the latter part of
March.
Price of Gold in London Drops Lowest in Five Years.
criticism of the results of previous international banking conferences of
The following is from the New York "Evening Post"
this sort, it was believed by bankers that there is now a desire to have
the entire system represented and assume responsibility in such negotia- of March 31:
tions. Mr. Norman will now go to Washington where his conversations
The price of gold in the open market in London fell today to a new
are expected to be carried further on all the topics discussed here.
low level since 1926. It was quoted at 84 shillings, 9 pence, as comNo difficulty has arisen in working out an agreement for the co-operation pared to a previous quotation of 84 shillings 1054 pence.
of the Federal Reserve Banks to help protect the position of the pound
The decline is attributed to the absence of buyers from the market,
sterling in coming months, according to informed bankers here. Since particularly since the French banks no longer are
purchasing the metal.
the Reserve authorities are for the most part in favor of low money rates Germany also has been out of the market.
as an aid to business, the continuation of conditions of ease through low
When no other buyer appears the Bank of England takes the gold at
bill buying and rediscount rates involves no difficulty.
its set price of 84 shillings, 9 pence.
German Question.
The discussions on Germany's international balance of payments, with
special reference to reparations and inter-allied debts, constitutes perhaps
the most delicate subject which-Mr. Norman will take up on his mission
here. In his forthcoming discussions with Secretary Mellon in Washington, this subject is expected to loom large. However. the British position
favoring a reduction of the war debt burden all around is well known to
be diametrically opposed to the views of the Washington Administration,
so that, despite the favor to a debt reduction program shown by
leading
bankers here, Mr. Norman is likely to meet a cool reception to his proposals on this score. His major argument, it is expected, will be
that
world-wide trade revival, leading to business improvement in this country,
necessitates debt reductions, and he is expected to present a mass of statistics to uphold his view. .
It is understood that substantial progress has been made by Mr. Norman
In his discussions covering the South American situation, and notably
Brazil, where Sir Otto Niemeyer of the Bank of England is now carrying
on an investigation preliminary to the drafting of a financial rehabilitation
plan. Mr. Niemeyer's proposals, it is widely expected here, will involve
International stabilization credits in which the Federal Reserve System
Is expected to be invited to join.
The National Bank of Holland today stopped the issue of gold coin for
inland circulation after discovery of illegal exports of the metal.
Amsterdam Stops Gold Issue.
United Press advices from Amsterdam to the "Wall
Street Journal" of March 31 stated that the National
Bank has stopped the issue of gold coin for inland circulation due to fraudulent exports.
Professor Laski of London Opposes War Debt Rebates Before Disarmament—Addresses League of Nations
Branch at Yale.
The United States was advised not to rebate a cent of
the war debt from European nations.unless they give satisfactory pledges of disarmament in an address on March
23 at New Haven by Professor Harold J. Laski of the UniGovernor Norman is to remain in the United States until versity of London at Yale University, under the auspices
April 14.
of the Connecticut branch of the League of Nations. A
"Times" quoted him as follows:
Group Named by the League of Nations Financial Body dispatch to the New York
"Any one who saw the methods by which the Polish National party won
Considers Details of Charter of Farm Credit Bank— its recent majority," he said, "must realize how near our feet are to the
Capital to Be $50,000,000.
abyss. If the German minority is treated as it was in the last election
and Germany, and only
The work on the plans for establishing a national bank all Europe will be affected, especially Russia
the thin line of the League of Nations will then stand between it and
for farm credits under the League of Nations' auspices has possible war.
ripened to a point where the delegation appointed by the
"In the relationship of Italy to Yugoslavia are plenty of combustible
might admire Mussolini, his popularity is not asFinancial Committee to formulate a definite scheme met materials. Much as Iinvariably
embarks upon foreign adventure, drawsured. The dictator
at Geneva on March 29 to consider the detailed text for ing attention from home affairs. Italian internal conditions may lead to
the bank's charter which had been drafted by a subcom- a conflagration.
"Russia is convinced that Poland is the nation out of which war
mittee. A Geneva message to the New York "Times" will
come. A breaking out of war may come there into which- we shall
from which we quote, further said:
be drawn. Above all, there is the problem of Russia."
2484
FINANCIAL CHRONICLE
Profits on Silver Coinage at South African Mint Counterbalance Losses On Gold.
Losses on the refining and minting of gold coin at the
Pretoria Royal Mint have been more than counterbalanced
by the profits on silver and bronze coinage, according to
recent reports from the Comptroller and Auditor General
for the Union of South Africa, forwarded to the Department of Commerce by Acting Commercial Attache Edward
B. Lawson, Johannesburg. In announcing this March 26
the Department also says:
The Government's profit on silver coinage from 1922 to 1930 totaled
£862,323, of which £192,056 related to 1929-30 operations. Profits on
bronze coinage in the 8-year period totaled £7,117, and in the past year
£3,462. The Mint's present surplus of £411,104 is due almost entirely
to profits on silver coinage.
Gold refining and minting operations presented a more favorable
financial return in the past year than formerly but the improvement is
due to the recovery of gold from flue sweepings of several years.
Jean Monnet, Vice-Chairman Transamerica Corporation on Return from Abroad Reports Tendency
Toward Effecting Economic Rehabilitation.
Jean Monnet, Vice-Chairman of the Board of Directors
of Transamerica Corp., upon his return to the United States
aboard the Berengaria, on Mar. 27, stated:
"Six weeks in the principal countries of western Europe leave me with
the distinct conviction that there is definite evidence of the progressive
accomplishment of the preliminary developments that must precede an
economic rehabilitation.
"The Franco-Italian naval accord, for example, is not only a specifically
important accomplishment, but its larger significance lies in the manner
in which it has helped to clear the air and so to bring other and further
similar achievements within the range of practicability.
"The creation and operation of the Bank for International Settlements
Is another factor that makes both a tangible and intangible contribution
to commercial, industrial and financial recovery. It is daily taking a
more important part in the stabilization of the affairs of Europe. Happily,
its modus operandi has been the opposite of spectacular. Bui the mere
fact—even if it stood alone—of bringing the governors of every central
bank of issue into monthly consultation is an item of incalculable importance in facilitating the return of more normal conditions.
"The gradual opening of the French market furnishes an additional
reason for the conclusion that the factors that must underlie and sustain
a general recovery are taking shape. From the great accumulations of
capital possessed by France and the United States, large amounts have
been employed by the latter nation in recent years for the purposes of
international financing. The resources of France are now beginning to
flow in larger volume to other nations—as in the Rumanian loan, for
example, or the participation in the proposed Spanish credit, &c.—and the
result of this movement of capital will eventually be felt in a quickening
of trade and in stimulating opportunities for employment.
"The German authorities, in my opinion, have energetically attacked
the sizeable problems of their country. Wages and cost prices have been
reduced with the result that there has been an appreciable improvement
in the balance of trade. More than that, the prestige of the present
administration seems to have surmounted the difficulties which have
beset It, and appears to have very much fortified itself in the confidence
of the country.
"The processes of recovery—without overlooking the setbacks that have,
been encountered—are, I believe, making a creeping progress. Economic
difficulties will not be wholly redressed at once and the unemployment
question will not be solved in the immediate future. But confidence in
continued peace and the flow of money into the countries that need it will
lessen unemployment and will improve business. The rate of improvement
from the trough of the world-wide depression lately prevailing is hardly
likely to be swift, but such observations as I have been able to make in
western Europe persuade me to believe that the major trend is clearly
upward."
[vol.. 132.
Import Duty on Wheat in British India.
A bill, the early passage of which is indicated, has been
introduced into the British Indian legislature providing for
a duty on wheat of two rupees per cwt. (112 lbs.), says a
radiogram received in the Department of Commerce from
Trade Commissioner Donald W. Page, Calcutta. Wheat
has heretofore been admitted duty free. The bill is described as a temporary measure effective until March 31,
1932. Pending passage by the legislature, the duty is
already being collected provisionally, it is announced. A
previous reference to the duty appeared in our issue of a
week ago, page 2310.
Paul May, Belgian Ambassador to U. S., Here to Assume
Post.
Paul May, successor of Prince Albert de Ligne as Belgian Ambassador to the United States, arrived on March
27 on the Steamer Berengaria to take up his new duties.
The Ambassador began his diplomatic career as an attache at the Belgian Legation in Washington in 1896,
and is returning to the diplomatic service after a year's
leave of absence. He was Minister to Brazil when he
became ill. With his arrival here on March 27 he said:
"It has been my ambition all my life, to be Ambassador from my
country to the United States. I am most happy in the prospect.
"There is one thing I cannot repeat too often. That is the gratification I derived from my appointment as Ambassador to the United States
and that, never from my fault, will a shadow creep into the sunny picture of Belgo-American friendship, which is based on gratitude on our
part.
"Not having visited here since 1919, I feel certain you will appreciate my reluctance to speak about America. But as to conditions in
my country let me tell you that, like others, Belgium suffers from the
effects of the world crisis. Even if unemployment has not reached
alarming proportions and our commerce and industry show a fair amount
of activity, things are not exactly as we would like them to be. We
may, however, look forward to a bright future, taking into consideration the industrious and hard-working qualities of our people and our
accomplishments in the Congo."
- -------------Owners to Cut Belgian Mine Pay—Import Curb Asked.
A new 5% reduction in miners' salaries will become
operative from April 1 said an Associated Press despatch
from Brussels, March 25, to the New York "Evening
Post" which added:
With 3,000,000 tons in coal stocks, the highest figures ever recorded,
colliery owners have suggested that the Government re-establish import
licenses for foreign coal.
Deutschebank und Discontogesellschaft of Berlin Buys
Own Shares—Acts When Price Falls.
Under date of March 24 a cablegram from Berlin to
the New York "Times" said:
According to its yearly report, the Deutschebank und Discontogesellschaft, the largest German bank, bought back last year 35,000,000 marks
of its own shares, thereby practically reducing its capitalization from
285,000,000 marks to 250,000,000. Legally the capitalization remains
the same, since the shares are not cancelled but are kept by the institution, their ultimate fate to be decided later. The reason given is that
the bank's shares were depressed last Summer by sales on the Stock
Exchange.
For the first time the bank has abandoned its old custom of reviewing
the economic course of the past year in its report.
Extension for One Year of Law Authorizing German Gov- Darnistaedter und National Declares Dividend of fi% for
1930, Against 12% in 1929.
ernment to Modify Agricultural Duties.
A cablegram as follows from Berlin March 25 is taken
A law extending to the Government, for one year, the
authority to modify import duties on rye, wheat, barley, from the New York "Times":
The Darmstaedter und National Bank, one of the biggest German
oats and dried beans, peas and lentils, was passed by the banks,
announces in its report for 1930 a reduction in dividends from
German Reichstag on March 26, 1931, according to cables 12 to 8%. It is stated that 10,000,000 marks were written off from
of March 26 and 28 from Ambassador Frederick M. profits. The income from interest shows an increase over that of the
year.
Sackett and Commercial Attache H. Lawrence Groves, previous
Business in the first six months of 1930 is said to have been excellent,
premust
this
Government
the
using
authority
In
Berlin.
the slump having come in September. The turnover increased to 261,vent an increase of bread prices above the average for the 000,000,000 marks from 245,000,000,000 marks in the previous year.
last six months, the Department of Commerce says, the
Germany's Budget Deficit—Including Deficits Carried Over,
advices continuing:
This law also grants the Government authority, during the next fiscal
Shortage Is 251,000,000 Marks.
year, to adjust the duties of the agricultural section of the present tariff,
From Berlin March 20 a message to the New York
in order to prevent competition dangerous to German farm products, but
having due. regard for the provisions of commercial treaties.
"Times" said:
The Government is also authorized, until March, 1932, to put into
effect commercial treaties provisionally, subject to ratification by the
Reichstag.
The Government is to endeavor to overcome the spread between the
prices of farm products and other prices. In case the cost of living
index exceeds a given point for more than three months, tariff rates on
foodstuffs are to be lowered, until the index figure falls below that
Point. Should a change in Government occur, any duties fixed in accordance with this measure are to become void three months after the
formation of the next Government, insofar as the new rates are not
bound by commercial treaties.
The law as passed is an important deviation from the draft submitted
by the Government, which sought authorization to vary, by decree, the
duties on the whole range of industrial products, as well as on agricultur:' products.
The ordinary budget of the Reich for the first ten months of the fiscal
year shows a deficit of 728,000,000 marks. The ordinary budget shows a
surplus of 521,000,000, mainly due to loans.
The deficit in the combined budget, allowing for deficits carried over
from preceding years, is 251,000,000.
Gross Profits of Dresdner Bank Below Those of
Previous Year.
Press accounts from Berlin on March 18 stated that
the Dresdner Bank reports gross profits for year ended
December 31, 1930, of 76,560,000 reichsmarks, against
Rm. 77,791,000 in previous year. After deducting ex-
APRIL 4 1931.]
FINANCIAL CHRONICLE
2485
penses of Rm. 64,190,000, against Rr. 67,001,000 and de- It totals 2,850,000,000 zlotys, or approximately $318,000,preciation of stocks of Rm. 6,000,000, against none in 000, showing a slight excess of revenues over expenditures
1929, net profit for 1930 it is stated totaled Rr. 6,370,000, —$111,000—said the cablegram, which added:
Minister of Finance Ignaz Matuszewski, however, has already declared
compared with Rm. 10,790,000 in 1929.,
the revenue estimates too optimistic and will have to find no less than
$39,000.000 in order to balance the budget. He has advocated new increases in taxes and reductions in the salaries of State officials of 15%.
thereby saving $22,000.000.
All capital investments will be suspended and numerous reductions
will be effected in all departments. A number of taxes already have been
increased, 10% has been added to the income tax on salaries and wages and
a heavy tax has been put on playing cards, cigar lighters, &c.
A reduction in the State payroll is not expected before June, but the
"The End of Reparations" will be the title of Dr. Hjalmar Schacht's State
Bank, the Postal Savings Bank and the Bank of Poland already have
new book, which is scheduled to appear here early in March and which,
announced
reductions in sal,ries on April 1. Their lead probably will be
It is understood, will dwell chiefly upon the "unescapable fact" that repafollowed
by private banks and business in general. A campaign for lower
rations can only be paid out of an excess of exports over imports.
The former Reichsbank President will, it is learned, also take up the wages is in full swing in industrial circles.
M. Ala tuszewski has considerably strengthened his position in the
Intricate problem in some of its social and economic phases and explain
capitalism
the reasons, economic and political, for his recent opposition to The Hague Cabinet. He is for strict economy and against that form of State
called
"etatism," which has flourished in Poland for the last five years,
protocol.
and new
"The economic consequences of reparations will themselves force a with the Government owning and building up new enterprises
solution of the problem which meets the capabilities of German economy," industries. When Stefan Strazwinski, an eta tist in the Government,
politics.
resigned
his
economic
post there was a turning point in Poland's
Dr. Schacht declares. "A retrogression into the field of politics would
The Sejm's budget session closed to-day. Parliament may be summoned
mean the end of reparations."
next May to discuss the Constitution.
Dr. Schacht of Germany Writes on Debt—His Book
"The End of Reparations," to be Published in
March.
The following Berlin cablegram Feb. 16 is from the New
York "Times":
Austrian Ills Laid to Factory Costs—Have Risen
$150,000,000 Annually in Five Years, With 330,000 More Wage Earners.
From the New York "Evening Post" we quote the following (copyright) from Vienna, Feb. 14:
National Debt of Portugal.
Associated Press advices from Lisbon Feb. 17 said:
Portugal's national floating debt as of Dec. 31 last was 892,709,827
escudos (about $35,708,931) and foreign credit balances 15,396,672 escudos
(about $615,867).
A Committee consisting of economic experts recently has investigated
the causes of the Austrian economic crisis and has published the results
Italy Reported as Planning to Issue $360,000,000 Bonds.
of the investigation in a pamphlet.
As the last economic inquiry into Austrian conditions took place in 1925,
Associated Press advices as follows were reported from
when two experts of the League of Nations, Sir Walter Layton and Professor Rist, studied the situation, the new report considers changes since Rome, March 30:
1925. The Committee found that there was an increase in wage earners
It Was learned on excellent authority to-day that Italy is soon to issue
of about 330,000. Cost of production increased almost $150,000.000, internal bonds totaling 7,000.000,000 lire, approximately $360,000,000.
while the total value of production in the same time was $1,140,000,000,
The revenue will be used in part to pay off the nine-year treasury 5%
which meant that the costs of production increased by more than 12%.
bonds due in November and amounting to 3,000.000.000 lire; to finance
This rise in the costs of production took place in spite of the cheaper public improvements, and to cover the budget deficit.
money, the fall of the prices of raw materials, rationalization and a conThe issue will carry no redemption date. The bonds probably will pay
siderable increase in consumption. The chief reason of the increase costs 534% interest and will be issued several points below per, yielding a net
of production is, according to the Committee, the enormous increase in income of about 6%. Of the bonds due in November, 2.200,000,000 lire
taxes and rates.
now in the hands of banking institutions will automatically be exchanged for
The revenues of the Federal State and of the Federal Provinces increased an equivalent amount of the new issue.
In the last five years by 31.4%. Social welfare costs have increased from
News of the internal loan appears to put an end to rumors which have
$37.000,000 in 1925 to $55,000,000 in 1928. and during the last two years circulated for 'several months that Italy was negotiating for a foreign loan
this rise was even higher. Wages also rose. In the iron and metal industry in France or the United States.
they were increased 32%, in the electrical industry 40%, while in other
branches they gained at a lower percentage in the last five years.
The report concludes that public expenditures must be cut in order to
reduce taxes and rates: that a greater efficiency in labor ought to be at- National City's Share in Rumanian Loan—Takes
tained and that railroad freight rates ought to come down.
250,000,000 Francs of 1,325,000,000 Franc Credit—
To foster foreign trade closer co-operation With the neighbors is recomLed Only by Paris Bank.
mended, and the report advocates the departure from the present most
favored nation principle in the trade treaties and recommends preferential
The following is from the New York "Times" of April 3:
tariffs.
The components of the international financial group that took part in
the loan to Rumania of about 1,325,000,000 French francs, or $53,000,000.
Loan of $40,000,000 to Poland Completed—French were made known here yesterday in advices from Paris. The principal
are the Banque de Paris et des Pays-Bas, the National City
Bank and Steel Company Join in Advancing Fund participants
Bank and the Stockholmes Enskilda Bank.
to Finish Railway Line.
Participation of the National City Bank was in connection with the inof American public utility corporations in Rumania, notably the
A cablegram as follows from Paris, March 31, is taken terests
International Telephone & Telegraph Corporation, which had lent to the
from the New York "Times":
Rumanian Government money welch will be repaid from the new loan.
The French loan to Poland, which had been in process of negotiation This consists of an issue of forty-year 7% bonds, issued at 8634.
The American & Foreign Power Co., Inc., which is supervised by the
for several months, has finally been arranged. A contract between the
French lenders—the Schneider-Creusot steel interests and the Banque dos Electric Bond & Share Co., is interested in Rumanian public utilities. Its
Pays du Nord—and the Polish Government WPS initiated this morning in President, C. E. Caldres, recently was elected a director of the National
City Bank.
the offices of the bank.
The participants in the Rumanian loan and their shares are: Banque
The amount of the loan is approximately 1,000,000,000 francs (about
$40,000,000). Polish Foreign Minister Zalewski, who came from Warsaw de Paris et des Pays-Bas, 450,000,000 francs; National City Bank. 250.000.000; Stockholmes Enskilda Bank, 246,450,000; Krueger & Toll. 76.for the final consultation, returned to his country to-night.
Coincident with the conclusion of the loan, a Franco-Polish company, 000,000; Banca Romaneasca and Banca de Credit Roman, 75,000.000;
to be known as La Compagnie Franco-Polonaise des Chemins de Fer, Scandinavian Credit Aktiebolaget, 57.000,000: 'Mendelsohn & CO. of
was formed for the purpose of leasing and operating the new railway line Berlin and the Dresdner Bank, 43,750,000; Mendelsohn & Co. of Amsterfrom Upper Silesia to the new Polish port of Gdynia, on the Baltic. The dam, 37,500,000: Czechoslovak banking group, 35,000,000; Credit Suisse.
construction of the line, which was begun several years ago, will be com- 25,000,000; Belgian banking group, 17,590.000. and Banque du Pays
l'Europe Centrale, 12,000,000 francs.
pleted with the proceeds of the present loan.
The details of the bonds which will be issued under the loan agreement
have not been decided upon, but it is understood the terms will be somewhat
less severe than those surrounding the recent French loan to Rumania. Fiscal Agents Pay $1,750,000 on Bonds of San Paulo Coffee
The Polish operation is the second of three so-called allied loans which
Realization Loan Called for Redemption.
French interests with the full consent of the Government are making to
Speyer & Co. and J. Henry Schroder Banking CorporaFrance's European allies.
The third loan, also for 1,000,000,000 francs, will be granted to Yugo- tion, Fiscal Agents, paid on April 1 at par $1,750,000
slavia, but the negotiations appear to have been indefinitely delayed because of difficulties in connection with the settlement of the Ottoman debt. State of San Paulo 7% Coffee Realization Loan Bonds,
Just what part of the loan will go to Poland in cash has not been dis- which were recently drawn for redemption. This is the
closed, but it is almsot certain that a substantial share will remain in first semi-annual sinking fund redemption amounting to
France in payment for equipment and necessary rolling stock. The
Schneider-Creusot group will no doubt receive those orders which are one-twentieth of the $35,000,000 Loan due 1940. This
week's announcement in the matter also says:
placed in this country.
The railway when completed will connect the great Upper Silesian
Results of the Coffee Realization Plan of the State of San Paulo for
Baltic.
Some
port
on
the
coal fields with the only all-Polish
observers February, the eighth month of the Plan's operation, have been received
have viewed the new rail connection as one of considerable stratetgic value by the Fiscal Agents. During February, as in the seven previous
and destined to strengthen the potential military position of France's ally.
months, the agreed amounts of Government and Planters' coffee have
been sold and the regular payments have been made to representative of
the Fiscal Agents. For the eight months these payments have totalled
Poland Adopts Budget Totaling $318,000,000—Slight $6,488,667 for the Sinking Fund and $324,433 for the Reserve Account
Excess in Revenues Is Shown, but Finance Minister for the whole Loan.
The interest on the Bonds is provided for by .a special tax on all of
Says Estimate Is Too High.
the coffee transported for export from any point within the State of San
In a Warsaw cablegram, March 21, to the New York Paulo. The receipts from this special tax for the eight months of the
operation equalled $6,779,068, as against interest requirements
"Times" it was stated that the budget for the next financial Plan's
for the whole Loan of approximately $4,542,067 for this period.
year, beginning April 1, was finally balanced and passed
The calling of $1,750,000 of the bonds for redemption
that morning by the two Houses of the Polish Parliament. April 1 was noted in our issue of Feb. 14, page 1139.
2486
FINANCIAL CHRONICLE
Profits of Hungarian General Savings Bank, Ltd., for 1930.
According to advices received by J. & W. Seligman &
Co. the net profit of the Hungarian General Savings
Bank, Ltd. for the year ended December 31, 1930, as
shown by its balance sheet as of that date, amounted to
$464,861, compared with $541,557 for the year ended December 31, 1929. Total assets of the bank on December
31, 1930, were $30,757,258, compared with $29,286,095
on December 31,1929. Capital and reserves on December
31 last amounted to $5,827,500 and, total deposits to
$15,537,168, of which 62 per cent consisted of savings
deposits. The bank has declared a dividend for the year
ended December 31, 1930, of 6 pengoe a share on its common stock. A dividend of $5.21 per American share will
be payable April 10 to holders of record April 6 of the
28,000 American shares against which 140,000 pengoe
shares have been deposited with the Central Hanover
Bank & Trust Company.
[VOL. 132.
Banco del Commercio closed Sept. 27. It was organized in .1.1nuary 1920.
According to the report presented in connection with the suspension of
payments, the bank had assets of $5,500,000, deposits $2.000,000 and
securities, cash and balance in other banks of $1,000,000. In October a
plan was presented to the Cuban courts in which payment of creditors in
full was promised according to the following terms: 10% in 30 days: 0%
in 90 days, and remainder in four payments of 20% each every six months
thereafter. The plan was approved.
The suspension of payments by the bank was noted in
our issue of Oct. 25 1930, page 2620.
Secretary Stimson Denies He Is Making Special Stu
of Sugar Situation with View to Aiding Cuba.
Published reports that Secretary Stimson was conce
trating attention upon the Cuban situation and had determined that something should be done by the United States
to bring about a better state of affairs in that republic,
were denied by the Secretary on March 30, says a Washing
ton dispatch to the New York "Times," which also stated:
Mr. Samson said he is following the Cuban situation closely, but tha
this carried no greater significance now than it ever had. The problem
of Cuba have been of general concern since long before he became Secretar
of State, it was said, but there never has been any indication that Mr
Stimson was dissatisfied with the service of Harry F. Guggenheim, Am
bassador at Havana, or that some definite move by the United States under
the Platt Amendment, or otherwise, was in prospect.
$45,000 of American Portion of Greek Government Loan
Drawn for Redemption.
Speyer & Co. announce that $45,000 bonds of the
American portion of the Greek Government 7% Refugee
Loan of 1924 have been drawn for redemption at par, Uruguay to Take Up $6,000,000 Deficit—Council
on May 1, 1931. Of this amount, $40,000 were drawn
Favors Co-operative Societies to Have Monopoly
for the regular semi-annual sinking fund and the balance
of Nation's Trade—Bond Flotation Planned.
the
sale
of $5,000 out of additional funds received from
Stating, on Mar. 22, that Uruguay's new Congress was
of land to refugees.
about to begin consideration of projects for solving the serious problem facing the country in the shape of a deficit of
Estonia Remits Funds to Meet Coupon and Sinking Fund
$6,000,000, a cablegram from Montevideo to the New York
Installment Due May 27
"Times" further said:
Hallgarten & Co., fiscal agents of the Republic of
These projects are framed, not by the House of Representatives, as in
loan
1927,
Currency
Reform)
'7%
Estonia (Banking and
the United States, but by the National Administrative Council, which is a
sort
of commission form of government, attached to the executive branch
announce the receipt of funds for the payment of the
of the Government. The majority of this council is formed by members
July 1, 1931 coupon and the semi-annual sinking fund of the
Colorado party, which recently elected President Gabriel Terra.
installment. Remittance of these funds is not actually
Former President Baltasar Brum has drawn up a program for new legisrequired by the Fiscal Agency Agreement until May 27, lation designed to solve the country's financial and economic problems,
and this program seems to be the one most likely to be approved by
1931.
Congress.
Mexican Government Made Party to Action Against
Lamont Group Under Court Ruling.
Supreme Court Justice Ford decided on April 1 (according
to the New York "Times") that the Mexican Government
is properly a defendant to the suit brought by Gustavo
Gallopin in behalf of himself and other holders of Mexican
bonds against Thomas W. Lamont, as Chairman, and the
other members of the International Committee of Bankers
on Mexico. Gallopin is suing to restrain the committee
from paying out any of the $43,000,000 alleged to have
been received from the Mexican Government in behalf of
the committee's bondholders and is demanding an accounting. The "Times" says:
Mr. Lamont and the other defendants asked the Court to make the
Mexican Government a party to the suit. This was opposed by G dlopin
on the ground that the move indicated an intent to plead diplomatic immunity for the defendants and to take it out of the courts. The plaintiff
contended that the Mexican Government made no claim to any of the
funds held by the committee and for that reason had no interest in the
matter.
An item relative to the ruling sought appeared in our issue
of March 28, page 2303.
Loans of $100,000,000 Reported as Offered to Mexican
State Governments.
The following (Associated Press) from Mexico City,
April 2, is from the New York "Times":
Press reports to-day said that the Frederick Morton Construction Co. of
London has offered loans totaling $100.000,000 to Mexican State governments. The money would be for use in public works. Federal approval
would be required.
Banco del Comercio of Havana Reopens.
After remaining closed for six months because of frozen
assets, the Banco del Comercio of Havana reopened on
April 1, said Associated Press accounts from Havana; the
accounts also said:
Extended a helping hand by the Banco Hispano-America of Madrid,
the bank, one of Cuba's oldest and best-known financial institutions, was
able to meet the demands of depositors Once more. There were few withdrawals, however.
The milling crowds that gathered about the bank when it closed last
fall and precipitated a run which necessitv ted the shipment by plane and
by ship of more than $20,000,000from the Federal Reserve Bank at Atlanta.
Ga., were nowhere in sight to-day.
A small line formed in front of the cages, but, apparently reassured
by the fact that the bank was again on its feet, most of the depositors,
stayed away.
Senor Brian and the supporting members of the council are in favor of
following Russia's example, and eventually making the government the sole
purchaser and seller of all national products, but they are inclined to
think the time is not favorable, and therefore will ask Congress to put the
monopoly of trading in the hands of co-operative societies to be formed
for that purpose.
They propose to float internal bonds to cover the deficit of $6,000,000,
and then enact legislation designed to correct the economic difficulties on
which they blame the financial deficit. They propose to cure unemployment by increasing public works, and to enact protective measures for
industries with the idea of increasing production and decreasing costs.
The Colorado party seems determined to bring before Congress again
the general old-age pension scheme, which is being vigorously opposed by
business men, and which caused a general closing down for 48 hours of all
business activities throughout the republic several months ago as a protest
against this scheme, which would place an added burden on business, which
is already overloaded with social welfare taxation.
Bolivians Warned of Weak Finances—Minister Pleads
for Strict Economy and Legislation to Promote
Industry.
The following cablegram, from La Paz, Bolivia, Mar. 27,
is from the New York "Times":
The Finance Minister notified Congress to-day that Bolivian finances
were in a poor condition and that stringent economy must be the rule
henceforth.
The Minister declared that the country's monthly income for the last
four months was 52% below that of the same months in 1929, without
taking into consideration services necessary on the external debt and a
monthly deficit of $200,000 in public administration. In addition, he said,
the present constitutional government must carry a deficit of $15,000,000
inherited from previous administrations.
He remarked that the budget for the Ministry of War was criticized as
the most expensive but that military experts declared it could not be
reduced further. The only relief he saw was that of preventing any growth
of the armed services.
The Minister suggested several ways of building up the Bolivian economic
situation—legislation to promote exploitation of the country's enormous
natural wealth, guarantees of public order, respect for the rights of
capital by creating a banking system which would insure sound currency
and stable international exchange, State budgets without deficits and good
faith by the Government to fulfill obligations.
Peru's Inability to Meet April 1 Interest on Bonds—Government Endeavoring to Set Finances in Order With
Aid of Kemmerer Commission.
The inability of Peru to meet the interest and sinking
fund payments due April 1 on the $24,469,500 6% bonds
of the National Loan second series, is the subject of a
communication received by the Lima representative of J.
& W. Seligman & Co. and the National City Bank of New
On March 21 Associated Press advices from Havana York, fiscal agents of the Republic of Peru, from M. A.
stated:
Vinelli, Minister of Finance of the Republic. Finance
APRIL
4 1931.]
FINANCIAL CHRONICLE
Minister Vinelli indicates that the present Government
took office on March 11, and "finds the Treasury bare of
funds." It is added that the Government is "making every
endeavor to set its finances in order" and "will be aided
in this work by the report and recommendations of the
Commission of Financial Advisers headed by Prof.
Edwin W. Kemmerer." It is stated that the Government
expects to continue to pay the service charges on the
Tobacco loan and the Guano loan. Finance Minister
VineIli's communication follows:
"I am addressing you with respect to the interest and sinking fund
due April 1st next on the Peruvian National Loan, Second Series.
This Government took office on March 11 last, after a period of political disturbances extending over the past six months. It finds the
treasury bare of funds, with a substantial volume of unpaid accounts
owing for salaries and supplies, and with revenues steadily declining,
both as a result of these political disturbances and of the economic depression which has obtained for more than a year. As a result of these
conditions, for which the present Government is not responsible, it has
not the capacity at this time to pay in full the service charges on the
Republic's entire debt. The Government, is, however, making every
endeavor to set its finances in order. It will be aided in this work by
the reports and recommendations of the Commission of Financial Advisers, headed by Professor Edwin W. Kemmerer, which is now completing a study of the economic and financial condition of the Republic,
and expects to render its final reports during the month of April.
Meanwhile the Government has authorized me to state that it is anxious
to maintain in the money markets of the world the reputation of Peru
for integrity in meeting its debts; and authorizes me to repeat the assurances given by preceding Governments that it recognizes the obligations represented by the Republic's outstanding loans, and that it will
endeavor loyally to comply with them to the limit of its capacity.
"The Government expects to continue to pay in full when due the
service charges on the outstanding external secured loans of the Republic including the 7% Dollar Bonds maturing in 1959 (known as
the Tobacco Loan) and the 7TA% Sterling Bonds maturing in 1948
(known as the Guano Loan). The Government also intends to pay as
much of the interest due on the 6% National Loan Bonds of 1960 and
1961 as it may be able to pay during the period of transition to normal
economic and political conditions. The Government wishes to receive
and give careful consideration to the reports and recommendations of
the Kemmerer Commission before attempting to propose to bondsholders
how long such transition period should be and how much it will be able
to pay during that period. Pending such proposal, the interest and
sinking fund payments due April 1, 1931, on the Peruvian National
Loan, Second Series, Bonds will not be made. Meanwhile the Government is making every effort to reduce its expenditures.
"The Government requests that, as Fiscal Agents, you cooperate with
them in arriving at a solution which will be satisfactory to the
bondholders and within the capacity of the Republic to carry out."
A reference to Peru's default appeared in our issue of
a week ago, page 2305. From the New York "HeraldTribune" of March 28 we take the following:
A total of $87,300,000 bonds of Peru have been floated in the
United States. They are: $48,400,000 of 6s of 1960, $24,469,500 of 6s
of 1961 and $14,400,000 of 7s of 1959. The next interest date
after
April 1 is June 1 on the 6s of 1960. The two issues of the 6s have
been selling on a default basis for some time. The 1960 issue closed at
29 yesterday and the 1961 issue at 27%. The 7s of 1947, on the other
hand, closed at 50, up 1% points.
Peru is the second South American republic to default in recent
months, for on January 1 and March 1. Bolivia failed to provide service
on two of its issues.
Tenders Asked for Purchase of Argentine Bonds
Through Sinking Fund.
J. P. Morgan & Co. and the National City Bank, as
fiscal agents, have issued a notice to holders of Government of the Argentine Nation external sinking fund 6%
gold bonds, issue of October 1, 1925, due October 1, 1959,
to the effect that $199,930 in cash is available for the purchase for the sinking fund of such bonds of this issue as
shall be tendered and accepted for purchase at prices
below par. Tenders of such bonds with coupons due on
and after October 1, 1931, should be made at a flat price,
below par, at the office of J. P. Morgan & Co., 23 Wall
Street, or at the head office of the National City Bank,
55 Wall Street, prior to 3 p. in. May 1, 1931. If the
tenders so accepted are not sufficient to exhaust the available moneys, additional purchases upon tender, below par,
may be made up to June 30, 1931.
J. P. Morgan & Co. and the National City Bank, as
fiscal agents, have issued a notice to holders of Argentine
Government Loan 1926 external sinking fund 6% gold
bonds public works issue of October 1, 1926, due October
1, 1960, to the effect that $107,396 in cash is available
for the purchase for the sinking fund of such bonds as
shall be tendered and accepted for purchase at prices below par. Tenders of such bonds with coupons due on
and after October 1, 1931, should be made at a flat price,
below par, at the office of J. P. Morgan & Co., 23 Wall
Street, or at the head office of the National City Bank,
55 Wall Street, prior to 3 p. m. May 1, 1931. If the
tenders so accepted are not sufficient to exhaust the available moneys, additional purchases upon tenders, below
par, may be made up to June 30, 1931.
2487
Bonds of Department of Antioquia (Colombia) Drawn.
Pedro J. Berrio, Governor of the Department of
Antioquia, Republic of Colombia, announces to holders of
Department of Antioquia Highway to the Sea 8% internal gold peso bonds, due November 1, 1946, that 11,000
pesos principal amount of such bonds have been designated by lot for redemption on May 1, 1931. Drawn
bonds will be paid at the office of Central Hanover Bank
and Trust Company, 70 Broadway, New York, at their
nominal value in U. S. dollars at the then current rate
of exchange. All future interest on drawn bond ceases
with the coupon due May 1, next.
Bonds of Nitrate Company of Chile Reported Fully
Subscribed in London.
Cable advices received in this city from London April 1
state that the entire offering of "Cosach" (Nitrate Co. of
Chile) bonds has been fully subscribed. It is added:
The London issue of £2,000,000 6% gold bonds has been entirely sold
by the bankers and largely taken as an investment by insurance companies,
trust companies and similar financial interests who form part of the underwriting group.
It is also stated that the issue was well received and that if the supply
of bonds had been available, several times the amount offered could have
been similarly placed.
A reference to the sale of bonds for the new National
Nitrate Co. appeared in our issues of March 21, page 2106
and March 28, page 2305.
Australia Acts to Meet Interest Due to British Holders on
Bonds of New South Wales—Commonwealth to Sue
State for Defaulted Interest,
The Australian Government announced on March 30
that it would meet the interest due in London April 1 on
the New South Wales bond issues, the interest which Premier Lang of the State Government had announced would
not be paid. Stating this, Associated Press accounts from
Sydney, N. S. W., on March 30, added:
Premier Lang, who heads the Labor Government of New South Wales,
last week announced a default on the interest due in London, April 1,
but said that that due in New York on that date would be paid.
Premier Scullin, who made the Commonwealth announcement, said that
counsel had advised that under terms of the financial agreement of the
Commonwealth and States the Commonwealth was liable for interest
payments on State loans. It was understood here that the Commonwealth would sue the State for defaulted interest.
The default by New South Wales was referred to in our
issue of a week ago, page 2303. On April 1 a wireless
message from London to the New York "Times" said:
Warrants were received in London today from the Australian Government for $3,645,000 interest due the Bank of England and Westminster
banks on loans to the government of New South Wales.
Interest due American banks and amounting to $626,885 has been
in London for the past five days, it was revealed today, and today
Sir Granville Ryrie, High Commissioner for Australia here, handed it
over to American agents.
Thus the sensational "default" episode is ended, except for the legal
proceedings which the Commonwealth Government will take against
New South Wales for refusing to pay. It is understood here that
Attorney General Brennan of Australia is now preparing suits against
Premier J. T. Lang and other New South Wales Ministers individually
and collectively for recovering the interest amounts.
Regarding the announcement in the House of Commons
of the receipt of a message from Prime Minister Scullin of
Australia making known the intention of the Commonwealth to meet the interest, we quote from the New York
"Times" the following cablegram from London, March 30:
There were cheers from all sections in the House of Commons today
when 3. H. Thomas, Secretary for the Dominions, announced that the
Australian Government had decided to pay the interest due on New
South Wales loans. On the Stock Exchange Australian securities leaped
forward and by closing time had reached the levels at which they stood
before Premier Lang began talking of repudiation.
"I am sure the House and the country will be gratified and relieved
to learn," said Mr. Thomas, "that I have this morning received from
the High Commissioner of Australia in London the following message
sent to him by Mr. Scullin:
" The Comonwealth Government has taken counsel's opinion regarding its position under the financial agreement in relation to the New
South Wales interest falling due in London on April 1 which the State
has declared it will not pay. The advice received shows the Commonwealth
is under legal obligation to the States which are parties to the financial
agreement to pay interest and also that the Commonwealth has.a legal
right to pay. The Commonwealth, accordingly, will make provision to
pay the interest falling due in London which New South Wales has
declined to pay.'"
Question Annoys Thomas
Sir Hugh O'Neill, Conservative, asked a question which hinted that
the British Government had brought pressure to bear on Mr. Scullin,
but Mr. Thomas rebuked him for asking it. The question was whether
"If Australia shows a determination to face up to the real facts of the
situation it will be the policy of his Majesty's Government to give that
great dominion all possible help in this country."
"A more undesirable question I cannot conceive," Mr. Thomas retorted. "Do remember the position of this country and the Government.
I expressed the opinion on Friday, speaking for the Government, that I
could not conceive that the plan of the New South Wales Government
to repudiate its obligations would be allowed to continue. No greater
FINANCIAL CHRONICLE
2488
mistake could be made than to associate the decision of the Australian
Government, which I have now announced and of which I have expressed appreciation, with any outside question. A profound mistake
would be made by my attempting to answer it. I am sorry such a
question should even be raised because of the possible repercussions in
other places."
Mr. Thomas's indignation merely reflected the present-day sensitiveness of the dominions toward any attempts at dictation from London
and the equally great reluctance here to bring even the slightest open
pressure to bear on dominion governments.
Sir Edward MacCartney, Agent General for Queensland in London,
received a cable today from Premier Moore of Queensland saying the
people there were "overwhelmingly opposed to any repudiation of payment" such as that proposed by Premier Lang.
D. M. Dow, official Secretary for Australia in the United
States, received on March 30 the following cablegram from
the Prime Minister's Department, Canberra, Australia:
"The Government of the Commonwealth of Australia has taken counsel's opinion regarding its position under the financial agreement in relation to the State of New South Wales interest falling due in London
on April 1, which State has declared it will not pay.
"Advice received shows that the Commonwealth is under legal obligations to the States, which are parties to the financial agreement, to pay
the interest, and also that the Commonwealth has the legal right to pay.
"The Government of the Commonwealth of Australia, accordingly, will
make provision to pay the interest falling due on London which New
South Wales has declined to pay."
A previous cablegram made public by Mr. Dow on March
28 said:
[VOL. 132.
to avoid national bankruptcy. Acting on this principle, the government
of New South Wales will control interest payments."
Recently, Mr. Lang announced a cessation of payments of interest
due on the New South Wales debt. That is considered in Australian
financial circles as a definite repudiation of the public debt. James H.
Scullin, prime minister of the Australian Commonwealth, supports that
view.
The Federal Government also proposes to reduce interest rates. E.
G. Theodore, the Federal Treasurer, has introduced a bill for the formation of a Government Advisory Board on maximum interest rates on
deposits with banks and advances by banks, maximum discount rates
charged by banks, and interest rates on bills, drafts and other securities.
The bill authorizes the establishment of a bank interest board. "As
a result of this measure," said Mr. Theodore, "the government proposes
a reduction of 1% in the interest rates on deposits and a reduction of
PA% on advances."
Would Use Gold to Pay Debt
Mr. Theodore also recently introduced a bill providing that the gold
held in reserve by the Commonwealth be used for payment of the overseas debt. The bill also provides for the limitation of the issue of
Australian notes to $300,000,000. "The Australian note issue," said
Mr. Theodore, "will be backed by securities in the same manner as
that portion of the present note issue which exceeds the present gold
reserve. It is said that by this bill, Australia will abolish the gold
standard. Australia is now off the gold standard. We can restore the
gold standard by reducing the value of the pound sterling."
In 1928 and 1929, exports of Australian gold reached record levels
at $134,334,000. The United Kingdom received the largest proportion
of the total exported, as $114,735,000 was consigned to the Bank of
England. Purchases by India amounted to $11,092,500 and by the
United States, $5,000,000. In the seven months ended January 31,
1931, there were additional exports of Australian gold amounting to
$31,814,000.
"The Prime Minister, the Rt. Hon. J. H. Scullin, announced in the
House of Representatives that he had received a telegram from the
Premier of New South Wales stating that New South Wales does not
intend to meet interest due to holders of New South Wales bonds in
Survey of Retail Shops Planned by Philippine Bureau.
London on April 1," the cablegram declared.
A survey of the amount of business done by small re"This applies to all New South Wales interest payable in London,
, tail stores belonging to Philippine merchants is to be
whether through the Westminster Bank or the Bank of England.
had
been
arrangements
already
"The Prime Minister also stated that
made with the approval of the Loan Council for provision of funds for undertaken by the Philippine Bureau of Commerce and
remittances necessary to meet interest payments of the States of Victoria, Industry, with a view to making a comprehensive study
Queensland, South Australia, Western Australia and Tasmania. Mr. of merchandising problems and ways and means of imScullin understood that the Government of the State of New South
Wales is making arrangements for remittance to New York of interest proving the present position of Filipinos engaged in the
payable there.
business. As announced by the Director of the Bureau, a
"The impending default on the part of New South Wales, Mr. Scullin co-operative system of buying the goods in greatest deadded, is a matter of vital concern to the Commonwealth and every
Australian State, and will have highly detrimental effects on the good mand at the retail stores may be developed as a result
name of our people and on our credit as a nation.
of the survey. A plan suggested at a recent meeting of
"The Commonwealth Government is closely considering its position in Philippine retailers and members of the Philippine Chamthe matter, more especially in view of the financial agreement existing
ber of Commerce calls for the establishment of wholesale
between the Commonwealth and the States in relation to State debts.
"Issues raised by the action of the New South Wales State Govern- stores in Manila where the retailers could buy their merment involve important questions of law and policy in relation to the chandise. Such a plan is calculated to lessen the comperights as well as the obligations of the Commonwealth. These questions,
which are now being inquired into, require most careful consideration, tition from the many Chinese retail shops which operate
as well as consultation between the Commonwealth Government and the in Manila, says the Department of Commerce at Washgovernments of other States which are parties to the agreement.
ington, which on March 26 added:
"Serious questions to be considered are:
For the proposed survey, the city will be divided into districts, each
"1. The legal liabilities of the Commonwealth for interest due to of
which to be covered by a commercial agent of the government. The
holders of State bonds in the event of default by a State.
lines of business carried by each Philippine store and the kinds of
"2. Whether the Commonwealth has the right, in such event, to meet
goods sold will be recorded.
default of one State by applying revenues contributed by the six States."
A second cablegram, dated Canberra, March 28, stated:
"The Government of New South Wales has remitted to London the Holders of 5% External Bonds of New South Wales, Notified
interest due in New York on April 1, and the amount in question will
by Chase National Bank that $104,432 Is Available for
be remitted to New York from London."
Purchase of Same Through Einking Fund.
The Chase National Bank of New York, as successor
fiscal agent, is notifying holders of State of New South
Wales, Australia, external 5% sinking fund gold bonds
due April 1, 1958, that $104,432 is available in the sinking
fund for purchases of as many of these bonds as will exhaust that amount at prices not exceeding par and accrued
interest. Tenders of bonds will be opened at the corporate
trust department of the bank, 11 Broad Street, New York,
at noon Monday, April 6th, and preference will be given
to bonds tendered at the lowest prices. All tenders made
by persons or firms unknown to the fiscal agent must be
accompanied by the bonds offered or by a satisfactory certificate
of a bank or trust company, stating that the bonds
From the New York "Times" of March 31 we take the
have
been
deposited with such bank or trust company to
following:
Securities Rise on Wall Street
be held for delivery to the fiscal agent in case the tender
Further substantial recoveries were made by Australian Government, is accepted.
Canadian Press advices from Sydney, April 1, said:
Prime Minister James Scullin and Premier J. T. Lang of New South
Wales met on the same platform at the luncheon of the Agricultural
Show here today.
Premier Lang made a bid to capture the farmers' support by declaring that the withdrawal of the necessary funds to pay the interest
would have injured the farming community. He made a spirited defense of his decision to default.
The Prime Minister of the Commonwealth, however, spoke with considerable emotion of the, decision of the Commonwealth to meet the New
South Wales payments. He spoke of the moral and material results
that would have followed dishonoring of government obligations.
Premier Scullin announced that a conference on the organized marketing of wool, following the suggestion made at the Imperial conference by Parker Moloney, Minister of Markets, would meet at Melbourne in June. South Africa, Australia and New Zealand would all
be represented, he added.
State and municipal loans on the Stock Exchange here yesterday on
the receipt of official advices that the Commonwealth Government had
announced its intention of assuming the services on the debt of its
various political subdivisions if they defaulted.
Australian Government bonds were up half a point to a point here
yesterday, State of New South Wales issues recovered half a point to 1TA
points, City of Brisbane loans half a point to 3 points, and City of
points. Bonds of the State of Queensland proved
/,s,
Sydney 5,
the only exception to the rule, closing fractionally lower for the day.
lg.
Lang of New South Wales, Proposes Legislation
for Reduced Interest Rates.
From the "Wall Street Journal" of March 30 we take
the following from Sydney:
Premier
John T. Lang, premier and treasurer of New South Wales, has introduced legislation calling for a reduction in interest rates in that
state. The interest rate on fixed deposits will be limited to 154% and
3% and on government borrowing to 3%. In introducing the bill, Mr.
Lang said, "In being confronted with repudiation of their debts, the
Australian governments must realize the duty of formulating a proposal
Remit Next Year on Bonds—Partial Payment
on Loans May Be Made Early in 1932.
The following is from the New York "Journal of Commerce" of April 1:
Bolivia
May
The Republic of Bolivia may be able to resume partial payments on
its dollar obligations early in 1932, but there is little expectation that
funds can be remitted for the servicing of the bonds before then, it
was declared yesterday in informed banking quarters. On January 1
the republic announced that it could not meet its interest payments on
the 7% bonds, due in 1958, and in February the Financial Commission
of Bolivia, in New York since December 12, announced that March 1
payments on the 7% bonds, due in 1969, would also have to be postponed.
The financial commission of the republic sailed for Bolivia on the
Santa Clara Saturday. The members of the commission are Carlos
Aramayo, Alberto Palacios and J. Arturo Arguedas.
In its announcement issued on February 9 the commission estimated
that Bolivian revenues for 1931 would total 28,500,000 Bolivian pesos.
Out of this total, it was declared, the earmarking of 4,000,000 pesos for
the servicing of the dollar bonds might be possible. This amount, how-
APRIL 4 1931.]
FINANCIAL CHRONICLE
ever, would be less than $1,480,000, while the interest on
approximately
$60,000,000 of bonds is close to $4,000,000.
In banking quarters yesterday it was held that the
estimate that it
might be possible fcr the Bolivian Government to
set aside 4,000,000
pesos might prove optimistic. When the commission
reaches Bolivia it
will survey the efforts of the military government to
revise the budget
and if possible will seek to institute new economies.
Whatever is set aside, it was said, would be remitted.
When the
funds are deposited in New York they will be paid to
bondholders, even
though the amount is far less than actual requirements.
It was pointed
out that partial payment would attest to the recognition
of the debt by
the Bolivian Government.
The Bolivian 7% loans, due in 1958 and 1968, closed
at 26 and 253.,
respectively, yesterday. The Bolivian 8s of 1948 closed at 38.
Offering of $11,000,000 Debentures of Federal Intermediate Credit Banks.
Offering of a new issue of $11,000,000 Federal Intermediate Credit banks 3% debentures for refunding
purposes
was announced April 1 by Charles R. Dunn, Fiscal Agent.
Dated April 15, 1931, and maturing in six, nine and ten
months, the debentures are priced on application. Secured by loans and discounts representing advances made
for production and marketing of crops and livestock under
an Act of Congress, approved March 4, 1923, the debentures are exempt from all income taxes. No capital loans
are made by the banks. The entire capital of the 12 Federal
Intermediate Credit Banks was subscribed for by the
United States Treasury and all 12 Banks are liable for
the principal of and interest on the debentures. The
Banks constitute a permanent system of intermediate
banking. Previous offerings were referred to in these
columns Dec. 6, 1930, page 3637; Jan. 10, page 212; Feb.
14, page 1146, and March 7, page 1717.
Farm Debenture Demand Revived by National Grange—Organization Urges Plan Backed by Borah Because Federal Farm Board Quit Buying.
The enactment of the export debenture or similar plan
of bolstering agricultural prices was demanded on March
29 by the National Grange as a substitute for the policy
of stabilization abandoned by the Federal Farm Board.
This is learned from the Washington reports March 29 to
the New York "Times," which went on to say:
The program is favored by Senator Borah and other Progressives and
many Democratic Senators.
The Executive Committee of the Grange made its announcement after
a four-day conference here on problems raised by the Farm Board's announcement that it will not endeavor to maintain the price of this year's
wheat crop above world levels by buying in the market.
"The statement of the Federal Farm Board that it will not attempt
to stabilize the 1931 wheat crop clearly emphasizes the need for additional machinery, if the announceed purposes of the agricultural marketing
act are to be made effective," the statement read.
"Although definite figures are not available, it is altogether probable
that if a moderate rate of export debenture had been in effect during
the past year, the returns to the farmer would have been greater, the
cost to the Treasury would have been less, and we would not now be burdened with such a price-depression carry-over.
Says Need Is Imperative
"The National Grange, therefore, reaffirms its advocacy of the export
debenture program as an amendment to the marketing act. The volume
of wheat on hand and the certainty of continuing surplus indicate the
imperative need of providing adequate machinery to make possible
orderly marketing of farm products.
"The National Grange has given the Federal Farm Board its heartiest
support in its efforts to develop co-operative marketing agencies, and
will continue to do so, but believes that recent experience has demonstrated that in the marketing of our farm surplus, the export debenture
or similar machinery is essential."
Although stressing its advocacy of the debenture plan, the Grange's
declaration left the question open by saying that this or "similar machinery" is essential. It did not mention the McNary-Haugen bill, which
through the equalization fee would levy the cost upon the farmers rather
than the treasury.
The Committee declared that the debenture plan would have disposed
of the wheat surplus instead of backing it up in this country.
The Executive Committee of the Grange consists of L. J. Taber, Matter, of Columbus, Ohio; A. S. Gross of Seattle, Chairman; Fred J. Freestone of Interlaken, N. Y., and E. A. Ecker of Mascouth, III., Secretary.
Mr. Taber explained that the Committee had full authority to speak
for the organization between its annual sessions. The decision, reached
while the Progressives and Democrats are considering farm relief legislation. means that the agricultural issue is to be revived in the next
Congress, and probably will be one of the chief problems in the Presidential campaign. Two years ago the Republican Administration offered
the agricultural marketing act, with its stabilization program, as the
most practial means of helping the farmer. The equalization fee and
export debenture plans were rejected by the administration despite Western Republican advocacy of the former and the support given to the
latter by the Senate coalition of insurgent Republicans and Democrats.
In the opinion of Republican leaders, the Farm Board's decision
not
to buy this year's wheat for price stabilization has made necessary
some
substitute legislation and a remodeling of the present system.
Follows Senator Reed's Demand
The announcement by the Grange followed closely the statement made
by Senator Reed, Republican of Pennsylvania, in which he attributed
the treasury deficit partly to the Farm Board's activities, and urged its
abolition and a return to the laws of supply and demand. He said that
no artificial system could keep up prices under adverse trade condi-
2489
tions, and felt that the stabilization experiment, recommended by President Hoover, had been a failure.
In face of the world surplus of wheat, however, many advocates of
the equalization fee, notably Senator McNary, Republican, of Oregon, one
of its co-authors, hold that the fee plan would be of no assistance to
the farmers.
Senator McNary believes that there is little that can be done now to increase prices, and that neither the equalization fee nor export debenture
plan would operate successfully.
He and others who have studied the problem argue that the Farm
Board should withhold the 1930 crop surplus from the market for
three
years and, by keeping this crop out of competition with future crops,
agricultural prices next year might be stimulated greatly.
The recent Progressive conference's agricultural committee of which
Senator Borah is chairman, favors the debenture system, and will
recommend that the Progressives support the legislation in the next
Congress.
The New York "Herald Tribune" in Washington advices
April 1 said in part:
Plans for farm legislation which will combine the principles of the
equalization fee and the export debenture are being worked out at the
Capitol.
• • •
Representative Campbell Studies Plan
Representative Ed H. Campbell, Republican, of Iowa, one of the
House "progressives," has taken the subject up recently with some of
the leaders of the farm organizations. He expressed today the belief
that such a bill would have the support of nearly all the "progressive"
groups in the House and the Senate, as well as of many Democrats and
regular Republicans.
Representative Campbell is convinced there will be a determined effort
in the next session of Congress to pass another farm relief bill. And he
believes the prospects for passage are good. He holds that the conditions of agriculture are such as inevitably to result in Congress being put
under strong pressure. The announcement of the Farm Board that it
will buy none of the 1931 wheat crop has served to eccentuate the trend,
in Mr. Campbell's opinion.
Sir Josiah Stamp Due in Canada April 9 to Assume Duties
Incident to Inquiry Into Grain Situation.
Premier Bennett announced in the House of Commons
at Ottawa on April 1, that Sir Josiah Stamp, English
Economist, will arrive in Canada on April 9 to head the
Canadian Government commission which will investigate
the sale of grain futures. Associated Press accounts from
Ottawa April 1, also stated:
He said the function of the commission will be to inquire into one
question: "Does the sale of grain futures operate to the detriment of
the producer?"
In Western Canada, said the Premier, the opinion has been prevalent
for some time that the sale of grain futures adversely affected the Western farmer, while a directly opposite opinion is held by another section of
public opinion.
He said the Government had decided to have the question studied by
a Government commission and the prairie provinces had agreed that the
Government select the commission's chairman. The selection of Sir
Josiah followed.
A previous item in the matter appeared in our issue of
March 28, page 2308.
All U. S. Grains Barred by Mexican Decree—Sorghums,
Celery, Rhubarb and Other Products Under Ban in Latest Quarantine.
A copyright message from Mexico City, March 27, to the
New York "Herald Tribune" said:
An embargo similar to that applied by President Pascual Ortiz Rubio
two weeks ago on American and Canadian wheat was declared by the
President today on all foreign grain as well as on certain other agricultural products grown in the United States and alleged to carry plant
infection. Among these products are any part of the corn plant, sorghums, celery, rhubarb and the straws of all grains. The decree declares
that this measure is taken to prevent a specific plant plague from entering the country.
The grain embargo follows protests by Mexican dealers against the
importation of wheat and corn. Local growers argue that there is enough
home grown grain to supply the needs of the country in spite of decreased production figures. According to the Ministry of Agriculture.
Mexico imported 74,000 tons of foreign corn during 1930, of which
46.000 tons came from the United States and 27,000 tons from Africa.
Nicaragua and Santo Domingo also supplied Mexico with corn during
this period.
President Hoover Holds Federal Farm Board Is Free to
Shape Its Own Policies.
President Hoover, whose attention was drawn March 30
to the latest developments in the wheat situation following his return to Washington from his trip to the Caribbean, was described at the White House as feeling that
the Federal Farm Board has done "Herculean work" during the emergency in the agricultural and business depression. The "United States Daily" of March 31, from
which the foregoing is taken, also said:
The Federal Farm Board, it was stated orally on behalf of President
Hoover, formulates its own policies in dealing with the agricultural
situation and was given complete responsibility to do so by Congress. The
Board's status is the same as the United States Shipping Board and the
Inter-State Commerce Commission.
2490
FINANCIAL CHRONICLE
Loan Losses Expected
The Board, it was explained, is representative of the farmers themselves and is devoting itself to their interests. It is amply able to define
and defend its own policies, it was said.
The Board expects to receive, in repayment on loans it has made, a
' very large percentage of the amounts loaned so that these funds will
be available for new loans during the next crop year, James C. Stone,
Chairman of the Board, stated orally March 30.
Mr. Stone said the members of the Board would be "miracle men,"
however, if there were no losses on the loans, pointing out that most of
the money is in supplemental loans, other lenders having priority in
collecting on the security. Under the Agricultural Marketing Act, the
Board is "supposed to take chances" in its loans so as to make more credit
available to farmers.
Few Renewals Made
While there are some renewals of loans included in a recent statement of the Vice Chairman of the Board on the amount outstanding, Mr.
Stone said, no renewals to any extent were made because of inability
of the borrowers to pay at the time when the loans were due.
There appears to have been a reversal of sentiment on acreage reduction
among wheat growers in the heavy producing States of Kansas and
Oklahoma and sentiment now seems to be "quite favorable" toward reductions, Mr. Stone said. On his trip to these two States, from which
he has just returned, Mr. Stone said he encountered none of the opposition met when former Chairman Legge started the reduction campaign
a year ago.
Farmers will derive the greatest benefit in years to come from their
abandonment of the one-crop system and adoption of diversified farming, Mr. Stone said.
According to the New York "Times" Washington advices March 30 the White House statement was variously
interpreted by Senators. Some of them said that it might
be accepted as upholding the Board's recent decision,
while others thought that the President intended to place
the full responsibility for the changed policy on the Board
itself. Announcement that the Grain Stabilization Corporation will discontinue wheat buying with the 1930
crop, made by the Federal Farm Board, was referred to
in our issue of a week ago, page 2305.
In its issue of April 1 the New York "Times" reported the
following from Washington:
President Hoover informed visitors to-day that he approves the record
of the Federal Farm Board and is in accord with its policy of abandoning
stabilization buying of the 1931 wheat crop. He said that the experiment
has been as successful as trade conditions permitted, and that he intended
to support the Board.
The President was also represented by some of his callers as being
strongly opposed to the equ ilizitlon fee or export debenture plan, which,
he said when the present law was enacted, would prove inadequate to
aid the f rmers and would impose a heavy burden on the Government.
Democratic Congressmen who have been considering legislative policies
were represented to-day as unwilling to resurrect the export debenture
plan, which they and the coalition forces urged in the list session.
Chairman Stone of Federal Farm Board Says Sales
Policy for Disposal of Wheat Holdings of Grain
Stabilization Corporation Will Be Governed by
Spring and Fall Plantings.
Referring to the announcement, Mar. 22, of the Federal
Farm Board that the Grain Stabilization Board will discontinue the purchase of wheat (inaugurated to maintain
prices), Chairman Stone of the Board stated that "what
wheat growers do at planting time this spring and fall will
be an important factor in determining the sales policy for
stabilization stocks." • This statement was made by Mr.
Stone at Hutchinson, Kansas, on Mar. 25, in addressing a
joint -meeting of the Farmers' Co-operative Grain Dealers'
Association of Kansas and the Farmers' Co-operative Commission Co. Mr. Stone stated that "it is too early yet to
cast up the accounts in dollars and cents In this whole
matter. We believe, however, that a fair examination of
the results of this action, when set against the damages
that were imminent when the policy was inaugurated will
dhow the credit side of the operation in actual dollars will
be far in excess of the debit side, including any losses the
Grain Stabilization Corp. may sustain." "If we produce a
surplus we must take the consequences," declared Chairman
Stone. "Therefore," he said, "the Board renews its recommendation to wheat growers that they adjust production
gradually downward to a domestic market basis." Chairman Stone's remarks are taken as follows from the "United
States Dairy":
firm. M.
These central associations are farm-owned and controlled, great care
being taken to see that they are set up on a sound financial basis and that
they have competent management.
Their services are open to all farmers on an equitable basis.
Their function is to mechandise the products of their member associations in a manner that will return to the grower the full market value,
based on supply and demand conditions, and not to withhold products from
the market or artificially raise prices.
The Farmers' National Grain Corp. was the first national sales agency
the Farm Board helped the co-operatives to organize. It is composed of 26
group or regional co-operatives, operating in every State in which grain
is grown. These co-operatives gather the grain from the local units and
market it through the Farmers' National Grain Corp., or subject to its
supervision and control.
Amount Handled.
Since July 1 1930 the Fanners' National Grain Corp. has handled more
than 110,000,000 bushels of grain, thus becoming the largest marketing
agency in the United States. In addition to this, the member co-operatives
of the Farmers' National Grain Corp. have handled many millions of
bushels.
The members of the Farmers' National Grain Corp. are handling more
wheat than ever before.
In the development of the nation-wide co-operative movement the Farm
Board, since it was established on July 15 1929, has loaned $217,969,748.07
to 101 associations, many of which are national or regional marketing
organizations with their memberships composed of hundreds of local
co-operative units. Of the money borrowed, the co-operatives already have
repaid $82,461,458.18. Products handled by these associations include
alfalfa seed, beans, canned goods, citrus fruits, coffee, cotton, dairy
products, dried fruits, figs, coarse grains and wheat, honey, livestock,
poultry and eggs, grapes and raisins, grass seed, pecans, potatoes, processed
deciduous fruits, rice, sour cherries, tobacco, and wool and mohair.
Kansas is the heart of the territory that has been expanding its wheat
acreage and production in recent years and contributing most to the
national surplus over domestic requirements.
Growers Ignored Advice.
Last Summer Secretary Hyde and Chairman Legge addressed public
meetings in the Southwest in a serious effort to bring home to wheat
farmers the black outlook for the wheat export market. They called attention to expansion of wheat production in Canada, Argentina, and Australia,
and the special threat of Russian exports under the stimulus of Soviet policy
to order to sell for export.
They emphasized the restrictions on the expansion of export markets
as a result of high tariff duties in importing countries. 4'hey urged
reduction of wheat acreage toward a domestic basis as the only means of
avoiding the consequences of seriously depressed world prices reflected
back to our own farm prices. I am sorry to say the wheat growers of
Kansas gave little heed to the information and advice presented to them
at that time. However, we are getting considerable evidence that they
now are coming to realize that they must reduce acreage if conditions are
to be improved.
The dark outlook materialized all too quickly. World wheat prices
have fallen to levels not previously reached, except for a few months in
1894 or 1895, since the international wheat market has existed in anything like its present sense. On Dec. 31 1930 a sale of wheat was made
in Liverpool at the lowest price recorded in the history of the Liverpool
Corn Exchange.
Wheat has been selling in England at levels corresponding to 40-45c.
in Chicago. In Argentina and Australia returns to wheat growers have
covered little more than harvesting costs, and I am told that the average
Australian farmer cannot buy an ounce of smoking tobacco with a bushel
of wheat. Canadian wheat growers also have suffered severely, though
not as much as Southern Hemisphere-growers, in part because of the high
average quality of their wheat and their stable currency.
Large Crops Blamed.
The causes of this disastrous drop in wheat prices are chiefly those which
were presented to wheat growers last summer. Over several years wheat
production had outrun consumption and world carryovers last July were
again abnormally heavy, though less than a year earlier after the record
world crop of 1928. The 1930 wheat crop, outside of Russia, was second
only to the world crop of 1928, and apparently ample for world requirements without drawing upon the carryover; and, in addition, Russia, in
consequence of excellent yields on increased acreage, proved to have an
exceptionally large crop. Tariff barriers in importing countrie,s were
nowhere reduced, but were maintained or in several cases increased—in
Germany to $1.62 a bushel.
Export markets were further restricted by milling regulations imposed
In a number of importing countries, which limited the percentages of imported wheat that oculd be used, and made it too risky for merchants
and millers to stock up with foreign wheat even at low prices. The worldwide depression restricted wheat and flour imports by various countries,
far and wide. Onto the export markets thus restricted there were pressed
not only wheat supplies from the usual exporting countries, some of which
were in financial straits, but also upwards of 80,000,000 bushels of
Russian wheat, much of it shipped on consignment and eventually sold
at distress prices.
When the Liverpool market was breaking below 75c. a bushel, last
November, the Grain Stabilization Corp. entered the market to prevent
further severe declines in our domestic markets and avert the accompanying disasters which were imminent. The operation was not a speculation
in wheat, in the sense in which the term speculation is commonly used,
for it was not the aim to buy or sell out at a profit. It was possible,
however, only at risk of loss to the revolving fund.
The Board believed that the extreme emergency justified the operations
and that farmers have been saved substantial losses, direct and indirect,
proof
adjustment
and
interest
their
in
operating
A marketing system
that they would otherwise have suffered, and the country as a whole has
duction to the probable consumer demand are perhaps the most basic been benefited. The costs and other consequences, however, are such that
needs of American farmers. Their attainment requires organization of these stabilization purchases cannot be continued indefinitely. Accordingly,
producers.
the Board gave notice, Monday, that such purchases will not be made from
There are a number of points in regard to the various central cooperative the 1931 wheat crop and that stabilization holdings will be handled so as
their
of
scope
the
sales agencies, whether national, regional, or local, in
to impose the minimum burden upon domestic and world prices. However,
activities, to which I would like to call attention.
what wheat growers do at planting time this spring and next fall will be
Local co-operative associations, whose members are the people on the an important factor in determining the sales policy for stabilization
farm, constitute the foundation of all the central marketing organizations, stocks.
which means the latter are built from the farmer up.
Surplus to Mean Low Prices.
Policy of Board.
The plain facts are that so long as we continue to produce a large
In every instance the plan of organization was developed by a majority surplus of wheat over our domestic requirements, our growers, and parof the co-operatives handling the commodity and without dictation from ticularly the wheat growers of this Southwest territory, must expect to
get prices pretty closely in line with what our surplus wheat will bring
the Farm Board.
APRIL 4 1931.]
FINANCIAL CHRONICLE
In Europe. After having considered a great many proposals, we see no
escape from this conclusion. If we produce a surplus we must take the
consequences. Therefore, the Board renews its recommendation to wheat
growers that they adjust production gradually downward to a domestic
market basis.
There is one phase of the stabilization operation in wheat which I want
to discuss in more detail. The reason for it is because I think there are
but few people, and especially but few business men of the country, who
have followed through in their line of thought, first, why these stabilization efforts were begun, and, second, what they have meant to the
country as a whole.
Our efforts to steady wheat prices began in the fall of 1929 at the time
of the crash in the stock market. The information before us relative to
world wheat stocks led to the conclusion there was no economic justification
for serious price declines here in sympathy with the securities market. As a
means of preventing such declines the Board announced that it was prepared to make loans of fixed values to co-operative associations to enable
them to withhold wheat from the market. Until early in the new year this
action, which was taken in cotton as well as wheat, was effective, but
pressure resulting from the world-wide business depression and consequent
decreased consumption became so strong on the wheat market that additional
measures were made necessary.
Accordingly, the Board, under the authority given in Section 9 of the
Agricultural Marketing Act, caused the Grain Stabilization Corp. to enter
the market in February. As a result of this operation the corporation had
accumulated approximately 60,000,000 bushels of 1929 wheat when the
1930 crop harvest began. Due to an increase in our wheat production
and world conditions, last summer, the Board felt that stabilization purchases of the new crop were unwarranted. It did, however, announce that
the stabilization holdings of 1929 wheat would not be marketed in competition with farmers selling their 1930 crop. This permitted wheat from
the Southwest to move freely into the export market at the time when
our wheat exports are usually greatest
Largely from pressure caused by Russion dumping, the world wheat
market began a sudden decline last November which threatened to spread
to our wheat market with serious consequences. When wheat prices
dropped, about Nov. 15, to a level close to 70c. in Chicago, we found out
definitely that if the market dropped another cent or two per bushel there
were at least 40,000,000 to 50,000,000 bushels of wheat held by various
parties upon which moneys had been borrowed from the banks which would
have been dumped on an unwilling market at this level to protect these
loans.
If this had been done, it was the opinion of some of the best informed
grain men in the country that American wheat prices would have gone
considerably below 50c. per bushel at Chicago, which would have meant
financial disaster not only to the farmers who still had their wheat on
hand, but would probably have meant the closing of hundreds of banks
in the Middle West. The damage this would have done is almost incalculable. It would have reached and affected practically every character
of business in the country and would have meant a loss not only in wheat
values but in all cereal values as well, as many huhdreds of millions of
dollars of loss to the general business of the country.
Losses in Operation Called Justifiable.
Arriving at our conclusions from this situation, we decided to authorize
the Grain Stabilization Corp. to re-enter the market to prevent the domestic
price from going any lower in sympathy with the demoralized world
wheat market. This was done and will be continued through the 1930
crop marketing year.
It is too early yet to cast up the accounts in dollars and cents in this
whole matter. We believe, however, that a fair examination of the
results of this action, when set against the damages that were imminent
when the policy was inaugurated, will show that the credit side of the
operation in actual dollars will be far in excess of the debt side, including
any losses that the Grain Stabilization Corp. may sustain.
These facts you never hear the average business men discussing. As a
rule, he picks up the morning papers, sees in the headlines that the
Stabilization Corp. has bought more wheat or that the market has gone
down below what he thinks the wheat already bought has cost and what
the loss is. We do not think that this is a fair way to arrive at the
serious aspect of the problem.
While such stabilization efforts are an important part of the Board's
work, they are by no means as important as the long-time program on
which our major activities have been centered. They are only temporary
measures intended to deal with emergency situations, whereas the longtime program seeks, through organized action of producers, to correct the
basic ills of agriculture.
I have great faith in the Agricultural Marketing Act. In it Congress
has laid down a program that is sound and workable. Success is going
to depend pretty largely upon farmers yourselves.
Grain Trade To Ask Suspension of All Price Fixing
Plans—Condemnation of Federal Farm Board To
Be Voiced by United States Chamber—Failure
To Stabilize Market To Be Laid on Shoulders of
Board's Members.
The Washington correspondent of the New York "Journal
of Commerce" states that condemnation of the Government's price fixing surplus crop control activities will be
voiced at the forthcoming meeting of the United States
Chamber of Commerce, when representatives of the Chicago
Board of Trade will propose a declaration that these activities
should be abandoned. The Washington account (April 2)
from which we quote went on to say:
From within the Republican Party comas the declaration that the
President is preparing to meet the issue of the Farm Board and agricultural
relief in the next Presidential campaign, and that the viewpoint of the
grain dealers is of minor concern compared with the more pressing problem
of what to do with the 200.000,000 bushels of wheat now in the hands of
the Farm Board.
The determination to stand behind the Board came when the National
Grange issued its announcement at the next session of Congress it would
agitate the debenture as a major farm relief measure. It was made known
at the White House that the action of the Farm Board in deciding not to
engage in price stabilization measures for the 1931 crop was taken independent of the Presidential influence; that the Board determined its own
policies. This was interpreted as meaning that the President was about
2491
to pass the buck to the Board, leaving with it the responsibility for lack
of success for its undertakings.
May Win Farm Support.
A breakfast conference was held with Republican leader Senator James
E. Watson (Indiana). and then it became known that the President had
decided to stand four-square behind the Board and defend it against its
enemies. So the proposed discussions before the Chamber of Commerce
in Atlantic City, April 29 to May 1 next, will merely add fuel and perhaps
according to some of the leaders here, bring greater support from within
agriculture for the President.
While the Chicago Board of Trade proposes a declaration that the present
and all other price-fixing, surplus-crop-control organizations of the Federal Government should be abandoned, other organizations will voice
similar views. The grain and feed dealers' national association proposes
reiteration of the declaration against use of public funds for the purpose of
competing with private business in the handling and processing of agricultural commodities.
The Minneapolis Chamber of Commerce and the Omaha Grain Exchange
propose a declaration recognizing the fundamental services performed by
futures markets, recognizing future exchanges themselves as best equipped
to devise rules of procedure which will protect all interests, opposing legislative regulation and advocating that States change laws now permitting
unscrupulous debtors by pleading law of gaming to escape liabilities incurred under futures contracts.
A Serious Problem.
Two hundred million bushels of wheat on its hands, most of it bulldog
high in the terminal elevators of the country, and no place to sell any
material amount of it, constitutes the most serious problem the board has
had to face since it met two distinct crises in the agricultural and economic
life of the country. The problem presents two distinct phases: First, its
relation to the transportation demands of the impending crop;second,its relation to the world market and to the world needs.
As to the first phase, the board membres declare that there are no signs
of transportation difficulties and that a sufficient amount of wheat will
be out of the way when the heavy crop movement starts. As to the second
phase, its existence has caused several of the most prominent and ardent
farm organization leaders to lose all faith in the equalization fee and the
debenture, and even the stabilization purchases.
The National Grange would like to see the 200,000,000 bushels in question dumped abroad or destroyed in some way and the debenture plan
adopted to take care of the situation for the future. Some time ago the
board started to sell some 35,000,000 bushels out-of-position wheat abroad,
but with little success—not more than perhaps 4,000,000 bushels having
been disposed of in Great Britain, Belgium, Holland, France, Germany and
China. It was sold at about the same price obtained by Canada, which is
from 12c. to 18c. above that paid for Argentine and Australian wheat.
Cash wheat at Liverpool yesterday was quoted at 61 gc., the price for lowgrade Argentine wheat, which means, minus transportation charges,
around 52c. to 54c. in Argentina, and that would make the Americgn
wheat price 66c. to 72c. a bushel, at American seaboard.
No Market in Sight.
Great Britain might well be able to absorb our holdings, but she has
own problems in Canada and Australia and the only other potential market
is China, but one Farm Board member asked, "What will China use for
money?" and the Danubian countries and Russia will be coming into
the world markets about the same time our spring wheat begins to move.
The bulk of the wheat in question is being held in terminals at Kansas
City, Omaha, St. Louis, Minneapolis, Duluth, Buffalo, Indianapolis,
Wichita, Baltimore, New Orleans, Galveston, and small amounts in
Chicago and Toledo. The latest figures on capacity available at those
terminals indicate to the Board considerable space that still can be utilized.
The mills should be cleared out of stock!, by July 1, in the opinion of
members of the Board. This clearing-out process will be more thorough
than ever before, it Is said, and then the mills will have to buy, which will
take some of the surplus off the market.
Russia Out Till August.
The export market for the next four months, the Farm Board officials
feel, will be left pretty much to the Stabilization Corporation. Argentina
and Australian crop movements are drawing to a close and Russia won't
figure in the export business until the beginning of August. This leads
the Farm Board men to the belief that during the next four months there
should be considerable export business for the Stabilization Corporation
without interference with the American farmers.
According to Chairman James C. Stone of the Board, the United States
has not been invited, so far as the Board knows, to participate in any
European wheat conference.
International Wheat Conference at Rome Ends—Its
Work Praised—Soviet Delegate Denies It Has
Served Useful Purpose in Crisis—Asserts Russia
Will Not Curb Wheat Exports—Conference of
Producing Countries in London May 18.
The international wheat conference closed at Rome, Italy,
on April 2 amid floods of mutually congratulatory statements over the results achieved,said the Rome correspondent
of the New York "Times," whose account also stated:
The most notable of these results may be summed up as follows:
The adoption of plans for propaganda to increase consumption both in
countries where wheat is already consumed and in those where it is consumed only in negligible quantities.
Plans for the use of persuasion and educational propaganda among
farmers to induce them to reduce the acreage sown to wheat.
A decision to call a conference of producing countries to formulate a
common plan for dealing with the next harvest and the present accumulated stocks. That conference to meet in London on May 18 under the
Chairmanship of George Howard Ferguson, Canadian High Commissioner
to Great Britain.
A recommendation to importing countries to organize their purchases.
The assignment to the International Institute of Agriculture at Rome
of the task of collecting statistical data and a recommendation to
adhering
countries to increase the financial means at the disposal of the
institute
for this purpose.
The conference also adopted a motion recommending that
governments
encourage short-term loans to farmers and suggesting that
transfers of
capital for that purpose between countries might be made
advantageously.
The conference also adopted a motion to the effect that a
discussion of
preferential tariffs could not serve a useful purpose in a
multilaterial cooference but was better left to direct negotiations through
the regular
diplomatic channels of the various countries interested.
2492
FINANCIAL CHRONICLE
All of the measures listed above were accepted by every delegation
except the Soviet group. Especially violent were the Russian objections
to the resolution on preferential tariffs, which the Russian spokesman
declared would place one group of countries in a privileged position with
respect to all the others.
This drew an indignant protest from the Rumanian delegate, M. Madgearu, who said it had been repeatedly explained to the Soviet delegates
that no European countries would be excluded from the eventual benefits
of the proposed preferential tariffs. He added that the Russians had
systematically voted against all the resolutions proposed to conference
and concluded:
"We are therefore now enlightened to know what to think of this attitude."
The Russian delegate, Professor Kritzmann, thereupon again rose to
reply, reading a long prepared statement. The president of the conference, however, cut him short, considering that his speech had exceeded
the bounds of the matter then under discussion. Professor Kritzmann,
however, completed his speech at the end of the conference, when the
heads of the delegations were called upon to express their views on what
had been accomplished.
Professor Kritzmann denied that the conference had served any useful purpose.
"The solution of this crisis cannot be sought in conferences," he said.
"We see on the one hand a world filled with goods, the result of overproduction, and on the other hand millions of unemployed who cannot
enjoy those goods. The cause of the crisis, therefore, is inherent in the
capitalist system, which still obtains in the greater part of the world and
which no conference has the power to modify.
"In Russia, where landed property has been abolished completely,
things are quite different. There is no crisis there, and there are no
unemployed; the workers are happy and satisfied."
He ended with the statement that while Russia refused categorically to
take any action tending to limit her exportations of wheat, which were
necessary to pay for her purchases of machinery and other manufactured
goods, the Soviet delegation would recommend that its government take
part in the conference of exporting countries in London next May.
The conference ended on a humorous note. Senator Guiseppe de Michells, President of the conference, rose and, with every appearance of
warmth, thanked Professor Kritzmann for his speech.
"In these days," the President said, "when every one is complaining
of hard times, it is a real pleasure to come across some one who is satisfied
and to hear of a country where every one is swimming in prosperity."
He ended with the statement that all the delegates could leave Rome
convinced they had achieved something really useful and practical and
that civilization and economic peace had taken a step forward. Another
world grain conference will be held in 1932.
With the opening of the conference on March 26 United
Press advices from Rome, published in the "Wall Street
Journal," said:
Representatives of 46 Nations are assembled here to study methods for
meeting the world wheat crisis.
No fewer than 74 Nations. Dominions and autonomous territories were
invited. Among the Nations represented are Germany, Argentina,
Bulgaria, France, England, Ireland, Australia, Canada, South Africa,
British India, Greece, Mexico, Uruguay, Russia, Hungary, Holland,
Poland, Switzerland, and Czechoslovakia. Participating as observers
are representatives of the League of Nations and the International Commission of Agriculture.
The agenda to be laid before the conference follows:
I. International organization of agricultural production.
2. Organization of international agricultural credit for cereal culture.
3. Organization of international commerce in wheat.
The conference is preparatory to a second conference of the same character, the date of which will be fixed during the present meeting.
Considerable work of preparation preceded the conference. On March 20
a meeting of the major wheat experts of the world took place at the International Institute here for an exchange of views.
At the opening meeting Premier Mussolini of Italy stated
that the world's wheat crisis comes not so much from overproduction but from under-consumption. Therefore, he said,
"it would be rash indeed to call for limitation of cultivation
of cereals when in the world there are all too many people
poverty stricken and grievously distressed." "Bread," he
said (according to the Associated Press), "has somewhat
been replaced by more choice types of food with improved
standards of life among the masses." "This conference,"
he said,"must regard not only the interest of production and
markets, but also the interest of the consumer."
On March 26 the State Department at Washington, in
a formal statement, asserted that no Americans attending
the international wheat conference at Rome represented
officially the American Government. Associated Press
accounts, in noting this, further said:
[Vor,. 132.
said they had not caused. The real remedy, he declared, lies in the free
play of competition under the law of supply and demand and the unrestricted operation of economic forces.
Generally speaking, it was agreed that there would be no acreage reduction on the farms of Europe, on the contrary the consensus of opinion was
that the production for the coming season should be increased, or at least
that it should equal normal.
At the same time the possibility of a preferential wheat tariff agreement
among European nations was discussed, as a means of virtually shutting
out importations from the great wheat growing countries of the world and
providing for the absorption of the European crop at home.
It would be impossible to reduce the wheat-growing area of France,
Alfred Massee, President of the French Academy of Agriculture, said
because bread is a chief staple food of the French. He promised France's
assistance in any international agreement which might be formulated.
Adam Rose, head of the Polish delegation, declared Poland's willingness
to co-operate in the proposed agreement.
Russia entered the world wheat conference to-day and made its problems
triangular. Professor Leon Kritzman, Vice-President of the Soviet fiveYear plan, declared that Russia would have nothing to do with the preferential tariff proposed by the European bloc at the conference, and added
that it would not be possible for the country to curtail its wheat acreage.
F." On the succeeding day (March 28) Abraham Kissin,
Soviet delegate, declared that, far from reducing her wheat
production, his country would increase it this year, and
that instead of giving up her policy of so-called "dumping"
she intended to increase her wheat exports in order to pay
for her imports, which now exceed $500,000,000 a year.
The Associated Press advices of that date likewise said:
Russia will return soon to the position of wheat exporter that she occupied
before the war, Kissin predicted. He added that this would enable her to
handle her exports in such a way as to correspond more closely with the
seasonal demand. Canada will be unable to reduce her wheat acreage,
Sir George Ferguson, Canadian High Commissioner at London, told the
conference. He said Canada had already tried to help the world market,
with detrimental results to herself.
From the Rome message (March 28) to the New York
"Times" we take the following:
G. Howard Ferguson, Canadian High Commissioner to Great Britain
and leader of the Canadian delegation, said the present crisis was not
due to overproduction but to the falling purchasing power of wheat. Last
Year, he said, Canada had less wheat available for distribution than at
any time during the previous five years. Overproduction, therefore, could
not be laid at Canada's door. he said.
On March 30 the conference ended its general sessions
and dissolved into several committees which met to investigate special phases of the difficulties; the press advices in
making this known, said that the conference up to that
date was hopelessly divided. All countries, it was stated,
admitted there has been over-production, but each emphatically declared it would not reduce its own acreage.
From the "Times" Rome advices we learn that the
Committee on Agricultural Credits on March 30 unanimously decided after only 45 minutes' discussion to recommend setting up international machinery for extending shortterm credits to farmers. April 1 Associated Press cablegrams
from Rome stated:
Elimination of the world wheat surplus by disposing of it at e ctremely
low prices in China and other countries where little wheat is consumed
was recommended to the World Grain Conference to-day by a special
Committee.
Wiping out the surplus, the Committee said, would result in better prices
for the next crop. The Committee also recommended active propaganda
for greater consumption of wheat in other countries.
It would be impossible, the Committee decided, to obtain a world-wide
reduction in wheat acreage by any international agreement or law. Buyers'
organizations should be created in each country to purchase wheat and
collaborate with producers' organizations, the Committee said.
Further Associated Press accounts on that day said:
The United States will be asked to participate officially in a new international wheat conference at London May 18.
The conference, announced to-day by George Howard Ferguson, _Canadian High Commissioner at London and chief Canadian delegate to the
world grain conference here, will be made up of delegates from the large
Argentina, Canada, Ausnon-European wheat exporting countries.
tralia, South Africa and India have agreed to attend.
A wheat export pool will be one of the proposals the conference will be
asked to consider.
A secretariat will begin preparations immediately, it was announced.
A preferential tariff for which the Danubian countries have fought at
In issuing the statement, the Department repudiated press dispatches
describing John A. Simpson of Oklahoma City, Okla., President of the the present conference was turned down by the report of a special comNational Farmers Union, and Charles W. Croes of Aberdeen, S. flak., mission.
It Was said the conference was unable to decide this matter because it
as official American delegates.
"This Department has not been advised of the views which these repre- must be approached through diplomatic channels. Thus delegates from
sentatives hold and any opinions which they might express cannot be overseas countries, particularly Canada, Australia and Argentina won a
construed as reflecting the attitude of the American Government," the decisive victory.
statement said.
An invitation to the United States by the International Institute of
Federal Farm Board Averted Farm Ruin, Say Secretary
Agriculture to send a representative to the conference was declined after
of Agriculture Hyde and C. C. Teague of Farm
the State Department consulted the Agriculture Department and the
Farm Board.
Board—Declare That but for It Wheat and Cotton
In part Associated Press cablegrams from Rome on
March 27 stated:
The protesting yoke of the broad wheat fields of the Americas and
Australia was raised this afternoon, at the session of the World Wheat
Conference here, against Europe's proposed virtual boycott of foreign
wheat.
Amirlasador Perez of Argentina, speaking for his own country for the
representatives of the North American Wheat Growers and for the Australians, laid the World War at Europe's door and charged that it was responsible for the present situation of the wheat growing industry.
It is unjust, the Ambassador told the European delegates to the conference, to ask the American countries and Australia to relieve miseries he
Prices Would Have Collapsed.
The practices of the Federal Farm Board, including its
recent wheat stabilization operations, were defended by
Secretary of Agriculture Hyde and C. C. Teague, ViceChairman of the Board, on March 27, according to advices
from Washington to the New York "Times," which added:
That the Board has had a favorable influence on American agriculture
was declared obvious by Mr. Hyde, during a press conkrence. He said
that apart from its wheat stabilization operations the Board had had "a
tremendous psychological effect on wheat prices."
APRIL 4 1931.]
FINANCIAL CHRONICLE
On the basis of figures compiled by the Department, Mr. Hyde said,
without the assistance of the Board and its stabilization activities, domestic
wheat prices at the end of February would have been at the Buenos Aires
level or about 50 cents a bushel.
With the mere existence of the Board and without wheat stabilization,
said Mr. Hyde, domestic prices at the same period would have been at
the Winnipeg level or about 60 cents a bushel, slightly below Liverpool,
on the basis of the same compilation. He said that with the Board's
activities and its stabilization domestic wheat was sustained at about 83
cents a bushel at Chicago at the end of February.
Mr. Hyde said that with the creation of the Farm Board the spread
between future prices at Liverpool and Chicago were diminished from 15
to 5 cents, narrowing the Liverpool advantage to mere transportation
costs.
Commenting on the Department of Agriculture's report issued yesterday,
on the extent of intended wheat acreage planting, Secretary Hyde said that
the proposed reductions of 24 and 12% in durum and other spring wheat,
respectively, were due, in part at least, to the program of the Federal
Farm Board.
"The philosophy of regulating production to demand is being accepted
by the American farmer and is taking root," he declared.
Loans for seed, feed and fertilizer and agricultural rehabilitation until
March 24, Mr. Hyde said, numbered 133,874, representing $20,440,315.
He added that loans were being made by the department under the $45.000,000 appropriation at the rate of about $750,000 daily.
With reference to the stabilization activities of the Board. Mr. Teague,
In a radio address over the National Broadcasting System, said:
"The Board realized that large sums of money would be required, involving withholding from the market large volumes of both wheat and cotton,
the object being to support the market for wheat and cotton during this
depression and as far as possible to prevent a disastrously low price on these
two Important commodities which exert such an important influence.
"The hazards were fully realized and the operations undertaken deliberately, and the Board was convinced, and is now convinced, that the
conditions justified the means.
"I am of the opinion that benefits to the country resulting from efforts
to sustain prices of wheat and cotton during these trying conditions will
far outweigh any cost, even through considerable money is lost in the
operation."
2493
"There will be no need for us to stay in the market should that occur,"
he said, "for the South will then be in a good condition. Our offer only
concerns the Southern planter while the price is at such a point that he
is producing below production costs."
Mr. Wrigley explained that the formation of the Wrigley Cotton Investment Fund includes five banks, which will handle all the money involved.
Those banks are the Hibernia Bank & Trust Co. of New Orleans, the
Citizens and Southern National Bank of Savannah, Ga., the Bank of
Commerce & Trust Co. of Memphis, Tenn., the First National Bank of
Mobile, Ala., and the People's State Bank of Southern Carolina, Charleston.
S. C.
The whole plan, Mr. Wrigley said, was "in no sense a gamble. Nor is it
an advertising stunt. It is our sincere desire to shoulder some of your
burden in this offer to take cotton in payment for our goods rather than
The Cotton Investment Fund, Mr. Wrigley continued, was planned after
the Canadian wheat project, which "has proven 100% successful."
The fund of $12,000,000, Mr. Wrigley said, was the amount which the
William Wrigley Jr. Co. would normally take in from its sales between
April 1 and Dec. 1 1931. The Southern gum-chewers, he said, must keep
that figure up to normal before the plan can be successful.
"And if cotton goes down below the figure which we pay for it," Mr.
Wrigley concluded, "we may use it for packing instead of excelsior. Our
company has become cotton-minded."
In the "Times" Mr. Wrigley is quoted as saying that
"we offered 18 years ago to buy cotton in exchange for our
products in the South when it was selling for around five
cents a pound." The Chicago advices to the "Times"
also had the following to say:
Wholesalers are to be supplied with Wrigley cotton fund certificates.
indicating that an amount of cotton has been purchased by the fund equal
to receipts from Wrigley company retailers or Jobbers. If money is sent
to any Southern bank or to Chicago from Southern buyers, it also will be
used in whole to buy cotton the New Orelans or New York Exchanges.
The plan, which is similar to that in which the Wrigley firm was successful in 1913, is now in force in Canada, where the receipts from sales of the
Canadian Wrigley Co. in three Western Provinces are being used to buy
wheat.
The Federal Farm Board's Stabilization Corp. has been holding nearly
2,000,000 bales of cotton and continues to carry this load at a financia
loss, according to fiber merchants in local trade circles.
In commenting on this, Mr. Wrigley said;
"We can be more effective than the Farm Board in bettering Southern
conditions, because we have something to trade."
Federal Farm Loans for Purchase of Stock in Agricultural Credit Corporations Approved.
Approval of Federal loans for the purchase of stock in
three more agricultural credit corporations was announced
on March 31 at the Department of Agriculture by Lewis T.
Associated Press accounts from New Orleans on March
Tune, Chairman of Secretary Hyde's National Advisory 31 stated:
Loan Committee. The Department's announcement says:
News of the proposal of William Wrigley Jr. had no effect on to-day's
A loan of $37,500 will be made to increase the capital stock of the
Planters' Agricultural Credit Corp. of Memphis, Tenn.; a loan of $17,500
will be made to stockholders of the Pemiscot Agricultural Credit Corp. of
Caruthensville, Mo.; and a loan of $8,500 to increase the capital stock
of the Madison County Agricultural Credit Corp. of Canton, Miss. Checks
to several others will probably be sent out within a few days. These credit
corporations are all going concerns. The Federal money will enable them
greatly to extend the making of loans for the benefit of farmers.
Nineteen applications have been received to date by the National
Advisory Loan Committee from the State committees, and complete
information has been supplied in 11 cases.
The granting of loans to stockholders in agricultural credit corporations
at Blytheville, Ark., and Andalusia, Ala., was announced March 2 .
Mr. Tune, commenting on the progress of the loans to these credit
corporations, said that in all cases the officers and stockholders look upon
the business of their corporation as permanent. He says there are still
many uninformed people in regions in which this Federal money will be
loaned who consider these agricultural credit Corporations and livestock
loan companies as emergency stop-gaps. "Although they will give credit
relief to suffering communities immediately with these new facilities,"
he said, "they are decidedly permanent organizations and should be looked
upon as necessary institutions for normal times. The fact that many
organizations of this type have been operating successfully since 1923,
and have shown increases each year, demonstrates their usefulness to
agricultural communities."
William Wrigley Jr. Plans to Purchase 100,000,000
Pounds of Cotton at Not to Exceed 12 Cents a
Pound.
William Wrigley Jr. plans to purchase up to 100,000,000,
pounds of cotton on the American market in the next eight
months at prices not to exceed 12 cents a pound, according
to Associated Press advices from Chicago March 31, which
further reported his proposal as follows:
"All remittances from jobbers," Mr. Wrigley. the chewing gum manufacturer, announced to-day, will be credited to the Wrigley cotton investment fund and cotton will be purchased for delivery in December 1931.
"Our object is to purchase up to 100,000,000 pounds of cotton, thus
leaving our cash in the South."
The project is similar to Mr. Wrigley's offer last year to aid grain producers by accepting wheat in payment of obligations to his Canadian
corporation. From April 1 to Dec. 1, provided cotton does not rise above
12 cents a pound, this company will accept cotton in payment for its products shipped to the South.
The purpose of the plan, M.Wtigley said, was threefold:
"(1) We do not take cash out of the South. but on the contrary we leave
our money in the South, in the South's own coin.
"(2) We believe cotton at 12 cents per pound is a good investment and
that we will make money by locking up some of the company's resources in
cotton and holding it indefinitely if necessary.
"(3) We believe our plan will relieve, to the extent of our ability a
carrying strain on planters, Southern business and banks at this critical
time in the South's affairs.
"If cotton goes up, as we feel is probable, we will profit, but if it goes
down, we become partners with the South and as such take our loss with
them. Our real object is to let the South pay us in kind—pay in cotton
for what the South owes us, and, unless cotton goes up, we propose to
invest further of the company's resources in cotton until we actually own
100,000,000 pounds."
Should cotton go above 12 cents per pound, Mr. Wrigley explained, his
company would withdraw.
LA.
early trading on the New Orleans Cotton Exchange.
Traders professed interest in the proposal, but explained that the plan
involved only 200,000 bales, or 4% of the crop. They said that the only
way in which the Wrigley plan could affect the market would be by purchases in the contract market for future delivery,
Otherwise, cotton dealers said, a mere promise to buy cotton over eight
months would have very little effect, as it would involve such a small
proportion of the cotton marketed.
Farm Loan Board Issues Charter for Corn Belt Joint
Stock Land Bank.
The Farm Loan Board announced on April 2 that a
charter had been issued for a new Joint Stock Land Bank
to be known as the "Corn Belt Joint Stock Land Bank of
Taylorville," with its principal offices at Taylorville, Ill.
The advices from Washington (Associated Press) added:
The new bank is to begin business immediately, with a subscribed capital
stock of $250.000 and an authorized loan territory consisting of the States
of Illinois and Iowa. The Bank brings the total in the Farm Loan System
to 49.
Senator Reed Favors Discontinuance of Federal Farm Board
—Says Government Cannot Artificially Manufacture
Prosperity for Any Industry.
Abolition of the Federal Farm Board was advocated
March 27 by Senator Reed (Rep.) of Pennsylvania according to the "United States Daily," which quotes the
Senator as saying:
"I cannot see that the Farm Board has helped the farmer and I see
no reason for its further existence," Senator Reed said. In commenting
upon the Farm Board's determination not to attempt stabilization of
1931 wheat, Senator Reed declared that the action is proof that the
Government cannot artificially manufacture prosperity for agriculture or
any other industry.
"There is no use crying over spilt milk, but we cannot artificially
manufacture prosperity for a given section without eventually breaking
the back of the rest of the country. Our experience has exactly paralleled the experience of every other country that has tried to fix the
price of some of its products. Cuba had the same experience in sugar.
Brazil has its in coffee. Chile had it in nitrate. England had it in
rubber, and so it has gone all over the world. The expenditure is worth
while if we have at last learned our lesson," he said.
Germans Call Wheat Cut Move of Federal Farm Board
Futile—Trade Papers Also Predict Further Price
Fall—Russia Avoids Restriction.
Under date of Mar. 28, advices from Berlin to the New
York "Times" said:
The trade press comments that the American Farm Board's decision not
to support the price of the new wheat crop is due to a desire to prevent
further losses, predicts a further price fall of 15 to 20%, adding that the
Board's recommendation for a reduction in the wheat area is likely to
prove fruitless.
The Soviet journal "Izvestia", in editions received here, declares that
Russia in her own interest desires to advance world grain prices, but is
2494
FINANCIAL CHRONICLE
unwilling to enter any agreement restricting Russia's export, which in the
last business year was only 22% of pre-war volume and was not the
cause of the price fall.
"The mistake," says the paper, "lay with overseas countries which
increased their cereal areas and production in the erroneous belief that
Russia could never resume export."
The Institute for the Study of Trade Fluctuations predicts large shipments of Russian wheat in the next few months, as there is a big stock
remaining from the good crop of 1930.
German Farmers Try Collective System—Entire Village
Pools Efforts in Move to Overcome Agricultural
Crisis.
The New York "Times" of Mar. 15 reported the following
from Ulm, Germany, Mar. 12:
All farms in a peasant village near here have been organized into one
great farm which the whole village will cultivate with the most modern
machinery, including tractors, until harvest time. But each peasant will
receive the harvest from his own land and keep all his property rights.
As a move in the direction of the Russian collective system, the new
idea is viewed as dangerous, but it is generally granted that the success
of the experiment would point the most hopeful way out of the present
bankrupt condition of German small farmers who, like the English yeomen,
are treasured as the backbone of the nation.
The "new" plan in its essentials is really a return to the manor system
of the Middle Ages—plus tractors and minus aristocracy. Commentators
here naturally question the likelihood that the smaller land holders will
show as much energy or initiative in working their land as their snore
prosperous neighbors. The plan, however, is not advanced as a social
experiment but is a desperate effort to meet the serious agricultural crisis.
India Seeks Legislation to Tax Wheat Imports.
Imposition of a duty of two rupees per hundredweight
on wheat imported into India is proposed in a bill which has
just been introduced into the British Indian Legislature,
according to a radio report to the Department of Commerce
from Trade Commissioner Donald W. Page, at Calcutta,
on Mar. 28. The New York "Journal of Commerce", in
noting this, added:
Wheat has heretofore been admitted irsto India duty free. It is apparently
not intended to make wheat dutiable permanently, the bill being described
as a temporary measure effective until Mar. 31 1932.
Pending passage by the legislature, the duty is already being collected
provisionally, the department was informed.
Argentina Urged to Use Corn As Fuel—Proposal to
Burn 4,000,000 Tons of Surplus Made As Price Drops
to 32 Cents a Bushel—Farmers Abandon Crops.
A Buenos Aires cablegram, Mar. 29, to the New York
"Times" stated that the prices for corn of the new crop
have reached a level so low that there is a serious movement on foot to burn a large part of the crop as fuel in factories and electric light plants, as was done in Argentina
during the World War. The cablegram went on to say:
The Minister of Agriculture has devoted much attention during the past
week to studying the corn problem and conferring with exporters regarding
measures which might be taken to prevent further price declines. Among
the suggestions made to the Minister was that 4,000,000 tons, or 157,400,000
bushels, of the new crop be used as fuel.
The price of corn at Rosario last week sank to 3.65 paper pesos a hundred
kilograms, which, at the present exchange rates, is equivalent to 32 American cents per bushel, a price at which the farmers cannot afford to
harvest their corn. Many small farmers on rented land already have
abandoned their standing corn and moved elsewhere, and the landowners
find it unprofitable to harvest the abandoned corn, which would coat them
nothing except the expense of harvesting and marketing.
The prices of wheat and flaxseed also have declined to new low levels.
Shipments of all grains continue much in excess of last year's exports
and total 3,327,340 tons to date this year, as compared with 2,217,566
tons at the end of March last year, an Increase of more than 1,000,000 tons
for the first quarter of this year.
Wheat shipments last week totaled 3,533,120 bushels as compared with
3,103,200 bushels the previous week and 2,415,000 bushels for the corresponding week last year. The total to date is 39,280,164 bushels, as compared with 30,672,800 bushels on the same date last year.
Corn exports last week totaled 3,962,940 bushels, as compared with
2,840,785 bushels the previous week and 1,092,700 bushels during the corresponding week last year. The total to date is 51,458,200 bushels, as compared with 30,561,256 bushels on the same date last year. No corn was
exported to the United States during the past week.
Flaxseed exports last week totaled 2,055,683 bushels as compared with
1,385,260 bushels the previous week and 757,490 bushels the corresponding
week last year. The total to date is 26,698,000 bushels as compared with
19,804,700 bushels an the same date last year. Shipments to the United
States totaled 311,800 bushels last week. There will be only three trading
days this week, as Thursday and Friday are legal holidays.
Co-operative Grain Elevators in Operation in Argentina.
Work has now been completed on the fourth grain elevator
to be constructed by the Association of Argentine Co-operatives and the Argentine Grain Pool, the Department of Commerce is informed in a report from Jule B. Smith, Assistant
Trade Commissioner in Buenos Aires. The new grain elevator Is located at Tancacha, Province of Cordoba. The
Department's .advices, Mar. 27, state:
It has a capacity of 7,000 metric tons (260,000 bushels), which will
be augmented by 2,000 (73,000 bushels) capacity in the terminal elevator
Fou 132.
being built at Rosario, Province of Santa Fe. The construction is of
reinforced concrete, steel, steel frame, and galvanized siding, and is
fireproof throughout.
In addition to the four completed elevators, construction is well advanced
In two more structures, and these will be followed by several others, on
which construction has been begun. The terminal grain elevator now under
construction at the Port of Rosario is to be the receiving and forwarding
point for all grains shipped from the above mentioned interior elevators.
This terminal and shipping elevator is to have a capacity of 60,000 metric
tons (2,275,000 bushels), and it is intended that 30 interior elevators will
each have a 2,000-ton interest in it. The first section of this terminal
elevator will have a capacity of 20,000 tons (730,000 bushels), and will
be completed very soon. Three or more sections will be added as required.
The latest and most modern machinery will be installed especially for
cleaning, grading and classifying the grain into the most convenient grades
to meet the export demand.
This is the largest chain of grain elevators in Argentina or under construction at the present time. It is to serve some 15 to 20 thousand members and it is thought that it will save them upward to 6,000,000 paper
pesos annually. (A paper peso equals $0.425 United States currency at par.)
Vienna Grain Brokers to Discontinue.
From the New York "Evening Post" of March 28 we
take the following (Associated Press) from Vienna,
March 26:
Strasser L. Koenig of Vienna and Budapest, at one time one of the
most important grain concerns in Central Europe, is to go out of
business. Banks in London, Vienna and Budapest, it is said, have
declared themselves unwilling to further extend the time necessary
for the repayment of the firm's obligations, which run into many
millions of shillings.
Marketing Agency to Handle Fruit and Vegetables
Planned—Federal Farm Board to Hold Sectional
Conferences to Consider Project.
The development of a co-operative marketing agency for
fruits and vegetables, to act as a sales agency for producers
at terminal markets throughout the country, Is contemplated
by more then 160 local co-operative associations, with the
aid of the Federal Farm Board, C. C. Teague, Vice-Chairman of the Board, stated orally Mar. 26. The "United
States Daily", in making this known on Mar. 27, also said:
The Board on the same day announced a series of sectional conferences
of representatives of co-operatives favoring the plan, to discuss the best
form of organization.
Would Stabilize Prices.
Such a centralized organization, Mr. Teague said, would operate to prevent gluts of the market, to reduce distribution costs, and to stabilize prices
by regulating the flow of products to market.
The plan would not result in elimination of the commission man, wholesale dealer, or jobber, he said, the market agency acting as a sales
agency dealing with these men. It probably would eliminate some of the
speculators who have been going to the producers and buying products at
low prices for sale at much higher quotations, he added.
It is quite probable that some of the commission houses or other agencies
already on the markets may be taken into the system as agents of the
co-operatives, he said.
Control Impossible at First.
Such an organization could not satisfactorily control the flow of products
to market at its inception, Mr. Teague said, but as it grew its ability
along this line also would grow. The percentage of the products handled
by the co-operative at first would be too small to give it much control, he
explained, but this percentage should increase.
The Board's statement follows in full text:
The Federal Farm Board announced to-day that during April several
sectional conferences will be held for the purpose of discussing plans of
organizing a co-operative terminal marketing agency for the selling of
miscellaneous fruits and vegetables.
Replies to the Farm Board's questionnaire, sent out several weeks ago,
reveal that more than 160 different fruit and vegetable co-operatives favor
the establishment of such a terminal organization.
If the general principles of the proposed plan are approved at the
conference an organization committee will be appointed to develop the
details in co-operation with the Farm Board.
Three sectional conferences of representatives of co-operatives favoring
the proposed terminal organization already have been called by the Farm
Board. The dates and places of these meetings are: Jacksonville, Fla.,
April 3; St. Louis, Mo., April 6; Washington, D. C., April 8.
Texas Cotton Association Calls for Repeal of Agricultural Marketing Act—Also Demands Tariff Policy
Which Will Restore Free Market—Federal Farm
Board Criticized—Sees $350,000,000 Appropriated
from U.S. Treasury "Irretrievably Lost."
At an executive session of the Texas Cotton Association,
at Dallas, Tex., on Mar. 20, a resolution was unanimously
passed calling for repeal of the Federal Agricultural Marketing Act, charging that the troubles of the cotton farmers
to-day were due in part to "the partial destruction of the
accustomed machinery of distribution and substitution of a
socialized and inefficient governmental machinery, the encouragement of production of foreign cotton and grains,
and displacement of American cotton and grains in foreign
consumption." The Dallas "Morning News" of Mar. 21,
in reporting this, also said:
Demand Free Market.
The Association adopted the following other resolution, summarized:
To demand a tariff policy that restores the farmer's natural right to
APRIL 4
1931.]
FINANCIAL CHRONICLE
buy his requirements in a free market, like competitors abroad, and which
permits him to make free interchange of goods with his foreign customers.
That it be the duty of the Texas Cotton Association to advertise these
facts to all who may be concerned and to urge representatives in Congress,
confronted as they are with the failure of this promised "relief", to repeal
the Agricultural Marketing Act, provide for orderly liquidation of business
now in Government hands or under Government control.
Since less than half of the American cotton crop is consumed in the
United Stales this country must sell its product in competition with
foreign countries. Therefore, unless production is reduced by more than
one-half the United States must sell its cotton in competition with foreign
countries and its price cannot he divorced from that of foreign prices.
That this is unworkable is evident from the fact that such a reduction
would throw half of the cotton producers out of work.
Aside from rent and taxes, cost of production of cotton is the cost of
what the farmer must buy for his living and his work. These costs are
higher to the American farmer than to competing foreign farmers due to
a prohibitive tariff that deprives him of his natural right to buy his requirements at the cheapest sources and compels him either to pay the foreign
price, plus duty, for foreign articles, or the inflated domestic price, for
domestic articles.
The resolutions pointed out that the $500,000,000 appropriated from the
United States Treasury already is irretrievably lost, and that the whole
program of uneconomic legislation has been accompanied by a rapid and
wholesale loss of world markets for American cotton through substitution
of foreign growths and catastrophic declines in prices of agricultural
products.
As long as the present tariff policy is maintained it is inevitable that
debts owing to the United States cannot be liquidated.
The paper quoted also said, In part:
Condemnation of the policies and practices of the Federal Farm Board,
and prediction of early repeal or drastic amendment of the Agricultural
Marketing Act perhaps with The ultimate passing out of the picture of the
most powerful Government agency ever established In peace times, by
Dr. James H. Boyle, professor of rural economy at Cornell University,
roused 400 members and guests of the Texas Cotton Association to stand
and applaud heartily at the opening session of the two-day twentieth annual
convention at the Adolphus Hotel, Friday. . . .
Branding as fallacious practically all the underlying principles on which
the Federal Farm Board's marketing plans are based, Dr. Boyle enumerated
in detail what he termed these unsound and weaknesses in its setup:
1. The large pool idea, which he said is not original with the Farm
Board, but was brought to the farmers of the South by a "thrifty young
lawyer of San Francisco," aiming at power of price control through
monopoly, but is really built upon quicksand.
Against Acreage Cut.
2. The far-famed farmer-owned and fanner-controlled marketting system
based upon fallacious construction of the Agricultural Marketing Act which
In its language includes "other agencies".
3. Orderly marketing, which implies holding cotton off the market to
obtain a higher price later.
4. Surplus, which Dr. Boyle asserts the Federal Farm Board has tackled
from the wrong end since the United States no longer can control the world
surplus of cotton, but can bring about lower cost of producing the South's
cotton crop.
5. Reduction of cotton acreage, which Dr. Boyle maintains is wrong
because it is the size of the crop which determines world prices and
acreage reduction in this country would only lead to increased acreage
in competing foreign countries.
Cotton now is grown in some 60 countries of the world, Dr. Boyle stated,
and it is time for the United States to learn that it has no longer a
monopoly of this crop.
Says Salaries Too High.
Dr. Boyle charges the co-operatives working under the Federal Farm
Board with indulging in extravagance when they pay muds larger salaries
to men in their employ than are paid in competitive business lines. He
cited an instance when one man's salary in a co-operative was to be four
times what he previously had been paid before entering their ranks.
In building a system of big commodity pools the Federal Farm Board
was charged by Dr. Boyle with erecting a marketing structure which is
certain to collapse. He reasoned if farmers are to be encouraged to control
their marketing associations, why should there not be a demand for
farmerowned railroads, farmer-owned banks, and fanner-owned implement
factories?
But the chief fallacy in the entire Federal Farm Board plan is a mistaken conception of farmer psychology, Dr. Boyle asserted, which is
largely opposed to large centralized cooperatives. The speaker said that
the Board had overlooked the suspicious attitude of the farmers toward
a head office remote from his locality and operations. Not even such a
powerful agency as the Farm Board can successfully buck farmer psychology,
Dr. Boyle believes.
Holding Cotton Costly.
"The Farm Board's advice to farmers to hold back their cotton did not
cost the Board anything," said Dr. Boyle, "but it cost the farmers many
millions of dollars. Furthermore, in practice, the Farm Board says one
thing and does another thing. It says that the big pools now financed
by it are strictly farmer-owned and farmer-controlled, but ordinary business sense tells us that when you hold a big mortgage on a property you
more or less control it. In practice we know that Federal control always
follows Federal financing.
"We know that all important decisions concerning Farm Board cotton
and wheat are made by the Federal Farm Board, not by the farmers.
Nobody asks the Southern farmer about the final sale of the 1929 cotton
now held by Farm Board agencies; Congress looks to the Farm Board to
decide this question. This very effectively takes away control from the
farmer. He does not own the system and does not control it, yet members
of the Farm Board repeatedly and publicly have denied this very simple
fact."
Touching upon exclusion of "other agencies" to aid in the marketing of
farm crops, as implied in the Agricultural Marketing Act, Dr. Boyle
said:
Foresees System's Collapse.
"My feeling is that if the Farm Board goes ahead, wrongfully construing its powers and duties, and does erect a great farmer-owner marketing system, built from the top down with taxpayers' money, it will
Indeed drive out many private dealers, who have built from the bottom
up under the fierce law of the survival of the fittest. When this day
comes, if it ever does, then we will have a much poorer service at a much
2495
higher cost, and I feel that such an inefficient system would collapse of
its own dead weight."
Dr. Boyle then reviewed the "100% failure of the Government as a
cotton speculator." He asserted that it is costing the Government $44,000
a day to carry its supplies of cotton and wheat. At this rate it will take
only a short time more for the general public to recognize the fallacious
efforts of the Federal Farm Board, he said. . . .
President Bush covered similar ground in his annual address, charging
that the Federal Marketing Act affected the cotton grower "by accumulation of large quantities of cotton by the American Cotton Co-operative
Association and the Cotton Stabilization Corp., which stocks are known to
the entire cotton world and act as a depressing factor upon world markets,
causing a world-wide decrease in demand.
"Federal Farm Board's continued urging and pressure upon producers
to reduce acreage, in face of intended increase of acreage by foreign
countries, without the least effort to assist producers in reducing their cost
of production, at a time when it is most evident that other countries are
producing at costs below those of America, are detrimental," Mr. Bush
said.
Mr. Bush believed that the gigantic speculation by the American Cotton
Co-operative Association in the future market and in spot cotton had
upset the normal hedge.
"The Farm Board sees all and can do no wrong—is subject to no regulations, a tyrant to the trade," Mr. Bush added. Ile further stated that
an investigation by the Federal Trade Commission ordered by Congress had
failed signally to show that cotton merchants made any large profits nor
were they in any combination against the price of cotton, and that cotton
merchants are keen but fair competitors in purchase and sale of cotton.
C. C. Teague of Federal Farm Board In Answer to
Senator Reed Says Large Part of Money Loaned By
Board Will Be Returned—Loans Aggregated
$462,233,826—$173,183,806 Repaid.
C. C. Teague, Vice-Chairman of the Federal Farm Board,
in a statement issued Mar. 29 answered allegations by
Senator Reed that practically all the Treasury deficit represents money lost through the Farm Board and loans to
veterans. Mr. Teague stated that so far there have been
no losses from secured loans made from the revolving fund.
He added "It is certain that a large part, if not all, of the
money loaned will be returned to the Treasury." Mr.
Teague's statement follows:
Senator David A. Reed of Pennsylvania was quoted in newspaper stories
yesterday as saying:
"Our deficit this year will be about $750,000,000. Practically all of this
comes from the money lost through the Farm Board and the money loaned
to veterans not in distress.
It is probably true that the difference between the total amount of money
the Government appropriates for all purposes and the income from all
sources is figured as a deficit. It seems to me,however, that money should
not be counted as lost that has been appropriated as a revolving fund to be
loaned to farmers' CO-Operatives under the provisions of the Agricultural
Marketing Act. Congress authorized the sum of $500,000,000 to constitute
a revolving fund to be administered by the Federal Farm Board as provided
for in the Agricultural Marketing Act. Up to Mar. 21 1931 $400.000,000
had been deposited with the Treasury to the credit of the revolving fund.
The other $100,000,000 will not be made available until July 1 1931.,
Very few loans are made from the revolving fund that are not secured by
facilities or commodities. None of this money can be counted as lost unless
the collateral is not realized upon, or notes, representing a part of the loan
from the revolving fund, are not collectable. So far, there have been no
losses from these secured loans. It is certain that a large part, if not all,
of the money loaned will be returned to the Treasury.
At the close of business Mar. 21 1931 the loans aggregated $462,233,826.
Of this amount $173,183,806 had been repaid. The total loans from the
revolving fund outstanding on that date amounted to $289.050,019. Interest collections amounted to $3,021,544. Congress appropriated,entirely
separate and apart from the revolving fund, one and a half million dollars
for the administration of the Agricultural Marketing Act during the first
year's operations of the Federal Farm Board. Of this amount, $500,000
was not spent and was returned to the Treasury. Later. Congress appropriated $1,900.000 for the administration of the Act during the Farm
Board's second year of operation.
Reference to Senator Reed's remarks appears in another
item in this issue.
Three Southern States Plan Farm Credit Corporations.
Conferences on the proposed establishment of' State-wide
agricultural credit corporations in North Carolina, South
Carolina and Georgia were held in Columbia, S. C., March 28
by the Secretary of Agriculture, Arthur M. Hyde, Lewis T.
Tune, Chairman of the National Advisory Loan Committee,
and the State Advisory Loan Committees for the three
States, it was stated orally in behalf of the Department of
Agriculture. Noting this, the "United States Daily" of
March 30 said:
The State committees aid the Department in administering the loans
from $10.000,000 Federal fund set aside for loans to aid in financing credit
corporations in drouth and storm Staves, it was explained.
The proposal under consideration, it was said, would provide for a
system of branches of the State credit corporation so that the entire State
could be served.
Outstanding Brokers Loans on New York Stock
Exchange on March 31 Totaled $1,908,810,494-Increase of $69,054,436 in Month.
Outstanding brokers loans on the New York Stock
Exchange, which have been mounting since the low figure
of $1,720,345,318 was recorded on Jan. 31, totaled $1,908,810,494 on March 31 comparing with $1,839,756,058 on
2496
FINANCIAL CHRONICLE
[VOL. 132.
Feb. 28, the increase during the month being $69,054,436. because of news of the investigation, held firm yesterday in the face
a generally weak market.
The March 31 statement issued by the Stock Exchange shows 'i of"The
Attorney General is empowered to investigate possible irregudemand loans of $1,629,863,494, as against $1,505,251,689 larities in the sale of securities," said Mr. McCauley in discussing the
investigation.
"He is not permitted to express opinions as to the inon Feb. 28; time loans on March 31 stood at $278,947,000
trinsic value of any security, except, of course, where that is a necessary
against $334,504,369 on Feb. 28. The March 31 figures incident
of a proceeding brought to restrain fraclulent practices."
were made public as follows by the Stock Exchange on
Mr. McCauley made it clear that, while no disclosures so far would
warrant
action,
the investigation was going forward.
April 2:
Total net loans by New York Stock Exchange members on collateral,
contracted for and carried in New York as of the close of business March
31 1931, aggregated $1,908,810,494.
The detailed tabulation follows:
Demand Loans. Time Loans.
(1) Net borrowings on collateral from New
York banks or trust companies
1.425,450,390
266.774,000
(2) Net borrowings on collateral from
private bankers, brokers, foreign bank
agencies or others in the City of New
York
12,173,000
204,413,104
The New York Stock Exchange has furnished Mr. McCauley with
information desired for the investigation and it is understood in Wall
Street that its business conduct conunittee has been watching the action
of the stock. The Exchange management had no statement to make yesterday on the investigation.
From the March 29 issue of the "Times" we take the
following:
Announcement yesterday that the State Bureau of Securities was investigating the market action of the stock of the Auburn Automobile
company precipitated a sharp break in that issue on the New York Stock
Exchange. The stock fell from a high of 2384 to a low of 22354, at
$1,629,863,494 $278,947,000 which it closed with a net loss of 144 points.
Violent fluctuations in the stock over a long period led to the investi$1,908,810,494
Combined total of time and demand loans
The scope of the above compilation is exactly the same as in the loan gation, the purpose being to determine whether a "corner" or a "squeeze"
had developed. Assistant Attorney General McCauley, in charge of
report issued by the Exchange a month ago.
the State Bureau of Securities, said yesterday that his office had conTime Loans.
Total Loans.
1926—
Demand Loans.
ducted
an investigation to determine if a corner existed in Auburn
83.513,174,154
Jan. 30
82.516,960,599
$986,213,555
1.040,744,057
3,536.590.321 stock and that nothing had been disclosed to warrant action. He added
Feb. 27
2.494,848,264
966,612,407
3.000,0416.167
Mar. 31
2.033.483.760
that there was no indication that there would be intervention in the
865,848,657
2,835,718,509
Apr. 30
1.969.869,852
May 28
780,084.111
2.767,400.514 immediate future. The inquiry resulted from a rise in the price of
1,987,316.403
the
stock from a low of this year of 13156 to 237.
2,926.298,345
700,844,512
June 30
2,225,453,833
2,996,759,527
July 31
714,782,807
2,282.976,720
Mr. McCauley said that in the investigation Deputy Attorpey Gen3.142,148,068 eral Abraham Davis and Frank Meehan, statistician of the
Aug. 31
2,363,861,382
778.286,686
Securities
3,218.937,010
2,419,208,724
799.730,288
Sept.30
821.746,475
3,111,176,925 Bureau, had received the cooperation of the officials of the Stock ExOct. 31
2,289,430,450
799,625,125
3,129,161,675 change.
Nov.30
2,329.536,550
3,292,860,253
Dec. 31
751,178.370
2,541,682,885
Aid Given in Investigation.
1927—
"After the Auburn stock rose in January and February in a way
2,328,340,338
810,446,000
3.138.786.338
Jan. 31
2,475,498,129
780.961,250
3,256,459,379 best described as spectacular," Mr. McCauley said, "I determined on
Feb. 28
3,289,781,174 an investigation to learn the reason for the rise. I have had the full
2,504,687.674
785,093,500
Mar. 31
3,341,209,847 co-operation of the New York Stock Exchange, which has placed at
Apr. 30
2,541,305,897
799,903,950
3,457,860.029 my disposal all the information that its officials obtained during their
2,673,993,079
783,875,950
May 31
811,998,250
3,568,966.843
2.756,968,593
June 30
877,184,250
3,641,695,290 own inquiry in the same situation.
2.764,511,040
July 30
928,320,545
3.673,891,333
"Although the Auburn Automobile Company is not a New York
2,745,570.788
Aug. 31
3.107,674.325
896.953.245
3,914,627.570 corporation, I had the co-operation of its officials also in the work
Sept.30
3,023,238,874
922,898,500
3.946.137,374
Oct. 31
4.091.836,303 that I was doing. The President, R. H. Faulkner; L. B. Manning,
3,134,027,002
957.809,300
Nov. 30
3.480.779.821
952.127,500
4.432,907.321 a director; and R. S. Pruitt, General Counsel, conferred with me.
Dec. 31
They produced records and statements.
1928—
"My investigation to date has disclosed nothing that would warrant
1,027,479,260
4,420,352,514
Jan. 31
3,392,873,281
1,028,200,260
4,322,578,914 any intervention by the Attorney General, nor have I seen anything
Feb. 29
3.294,378.654
1.059,749,000
4,640,174,172 that would in the future indicate need for action. The officials gave
Mar. 31
3.580,425,172
Apr. 30
3,738,937.5990
1.168.845,000
4.907,782,599 me details of the production and sales programs upon which they have
5,274,048,281
May 31
4,070.359.031
1.203,687,250
4.898.351,487 embarked.
3,741,632,505
1,156,718,982
June 30
"In the final analysis I am concerned only with possible irregularities
1.069.653.084
4.837.347,579
3.767,694.495
JulYk 31
957.548,112
5,051,437.405 in dealings in stock, and my investigation is restrained to that angle
4,093,889.293
Aug. 31
Sept.30
Oct. 31
Nov. 30
Dec. 31
4,689,551,974
5,115.727,534
5.614.388,360
5.722,258.724
824,087,711
763.993,528
777,255,904
717,481,787
5,513,639,685
5,879.721,062
6,391.644,264
6,439.740,511
1929—
Jan. 31
Feb. 28
Mar.30
Apr. 30
May 31
June 29
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
5,982,672,411
5.948,149.410
6,209,998,520
6,203,712,115
6.099,920.475
6,444,459,079
6,870,142,664
7,161,977,972
7,831,991,369
5,238,028,979
3,297,293,032
3,376,420,785
752,491,831
730.396,507
594,458.888
571,218.280
565.217,450
626.762,195
603,651,630
719.641,454
717.392,710
870,795,889
719.305,737
613,089,488
6,735,164,241
6.678.545,917
6.804,457,108
6,774,930.395
6.665.137.925
7,071,221,275
7.173,794,294
7.881,619.426
8,549.383,979
6.108,824,868
4.016,598.769
3.989.510.273
3,528.246,115
3,710,563,352
4,052,161.339
4,362,919,341
3,966,873.034
2.980,284,038
3,021,363,910
2,912,612.666
2,830,259,339
1.980,639,692
1,691,494,226
1,519.400,054
456,521,950
457,025,000
604,141,000
700,212,018
780,958,878
747,427.251
668.118,387
686.020.403
651.193,422
569,484.395
470,754.776
374.212.835
3,984,768,065
4,167.588,352
4,856.302.339
5,063,131,359
4,747.831,912
3.727,711,289
3.689,482,297
3,598,633,069
3,481,452.761
2,556,124,087
2,162,249,002
1.893,612,890
1.365,582.515
1,505,251,689
1,629,863,494
354.762.803
334,504.369
278,947,000
1,720.345,318
1,839,756.058
1,908,810,494
1930—
Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 30
Sept.30
Oct. 31
Nov.30
Dec. 31
1931—
Jan. 31
Feb. 28
Mar. 31
alone."
Activities of the Exchange.
The Business Conduct Committee of the Stock Exchange has been
watching the action of Auburn for some weeks and is understood to
have required certain firms to furnish information concerning the
stock. No condition has yet developed which, under the Exchange's
rules, would indicate the existence of a corner. An ample supply of
the stock has been available at all times in the stock-loan market and
speculators short of the stock have had no difficulty in borrowing it.
The stock was lending "flat" yesterday.
It was reported recently that Frank A. Vanderlip, former President
of the National City Bank, who is a large stockholder in Auburn, had
made paper profits of more than $4,000,000 on his holdings. He has
been a stockholder in the company for some years.
The stock outstanding consists of 187,000 shares and the floating
supply is limited. There are several large individual stockholders besides Mr. Vanderlip, among them being E. L. Cord, Chairman of the
Board of Directors of the company.
Auburn has had a sensational advance this year, having risen from
a low of 10134 in January to a high of 25154. In the bull market
of 1929 it touched 514.
Auburn's break yesterday gave impetus to the decline in other
parts of the stock market. The general list on the Stock Exchange,
aside from Auburn, closed with net losses of 1 to 5 points, and the
average price of fifty representative stocks showed a net loss of 82.75,
according to the average of The New York "Times."
Bonds of Peru Dealt in "Flat" on New York Stock
J. F. McNulty Appointed Superintendent of Floor DepartExchange.
ment of New York Stock Exchange, Succeeding Late
was issued on March 30 by Secretary
notice
The
following
Edward Doyle.
Green of the New York Stock Exchange:
Joseph F. McNulty has been appointed Superintendent
Republic of Peru—Peruvian National Loan,6% External Sinking Fund
of the Floor Department of the New York Stock Exchange,
Gold Bonds, Second Series Due 1961—Interest.
succeeding Edward Doyle, who died March 21, as noted in
NEW YORK STOCK EXCHANGE.
Committee on Securities.
our issue of March 28, page 2310. Mr. McNulty has been
March 30 1931.
employed by the New York Stock Exchange since January,
Notice having been received that the interest due April 1 1931 on
Floor
Superintendent
of
the
Assistant
been
National
External
loan,
6%
sinking
has
fund gold
1912, and
Republc of Peru Peruvian
1961, will not be paid on said date:
Department since February, 1929. Oscar Axelstrom, for- bonds, second series due
rules that beginning Wednesday, April 1
Securities
on
Committee
The
mer Supervisor, will succeed Mr. McNulty as Assistant 1931, and until further notice, the said bonds shall lie dealt in "flat" and
Superintendent.
to be a delivery must carry the April 1 1931 and subsequent coupons.
ASHBEL GREEN, Secreatry.
Gyrations of Stock of Auburn Automobile Company on
New York Stock Exchange Under Inquiry—No Dis- Volume of Trading on Philadelphia Stock Exchange During
March.
closures So Far Warrant Action, Says Paul McCauley,
Philadelphia Stock Exchange announced that the total
Head of Bureau of Securities.
From the New York "Times" of March 31 we take the sales of stocks on the board during the month ended
March 31 were 1,228,341 shares, compared with 965,433
following:
The investigation of the recent abrupt rises on the Stock Exchange in the previous month and 2,641,762 in March 1930. The
yesit
was
said
continuing,
of Auburn Automobile Company stock is
Exchange through its Secretary, Frank C. Matthews,
terday by Paul McCauley, Assistant Attorney General in charge of the
Bureau of Securities. The stock, which dropped 134 points on Saturday says:
APRIL 4 1931.]
FINANCIAL CHRONICLE
The volume of bonds, par amount, sold on the Exchange during
March totaled $1,544,800.
This figure compares with $1,032,300 for
the previous month and $435,000 in March 1930.
Since January 1, 1931, total sales of stocks were 2,923,996 shares
compared with 7,000,003 shares corresponding period in 1930; total
sales of bonds since January 1, 1931 amounted to $4,373,700 compared
with $1,054,950 same period last year. During the past month average
of sales of stocks per day was 47,244 shares against 101,606 for March
1930. Weekly average of sales was 283,480 shares against 609,637
shares corresponding month last year.
Largest single day's volume for last month was 79,790 shares on
March 10 which compares with a high of 198,497 on March 27, 1930.
2497
davit of the floor members of the firm, Forman and Orr, showed that
James M. Hoyt, who owned more than 80 per cent interest in the partnership, told them that either new capital must be obtained or this money
taken to tide them over. (Penal law 1294.)
"The listing of the $900,000 in securities as an asset was a deliberate
attempt to mislead and falsify which succeeded and which would appear
to bring the defendants within the provisions of Section 952 of the penal
law. The hypothecation of the securities of the Bohemian Union Bank
would indicate a disregard of the property rights of their customers."
Our last reference to the affairs of the failed firm appeared in our March 28 issue, page 2311.
The volume of trading on the Exchange in the first two
Attorney General of Ohio Rules That Certificates in Investmonths of the year was given in these columns March
ment Trusts Whose Securities Are in Stocks of Na.
14, page 1916.
tional and State Banks May Be Subject to Double
Liability.
Philadelphia Real Estate Broker Asks Mortgage Rate
Holders of certificates in fixed investment trusts whose
Cut—Holds It Would Speed Business Recovery.
underlying securities
of stock in national and state
A reduction in interest rate on all first mortgages from banks, may ultimatelyconsist
be subject to double liability under
6 to 432% was advocated by Albert H. Lieberman, a real an opinion rendered at Columbus, Ohio, on March 27 by
estate broker, in an address on April 1, before the South Attorney General Gilbert Bettman to Theodore H. TangePhiladelphia Realty Board. A dispatch to the New York man, State Director of Commerce. The "Ohio State
Journal" from which we quote also has the following to
"Times" noting this added:
He dechred it would be "an important move toward the restabilization say regarding the ruling:
of business."
Mr. Lieberman said that if the interest rates were not thus lowered
to keep pace with present reductions in real estate rentals, "I am afraid
our largest trust companies will find themselves unwilling owners of a lot
of real estate property."
"If sweeping reductions in interest charges were effected," he added,
"I think the element of uncertainty would be removed from mortgage
transactions. Business would find itself rehabilitated, buyers would invest
more."
The question was submitted to the Attorney General at the request of
the Division of Securities, which has before it the question of permitting the sale of certain fixed investment trust shares in Ohio.
General Bettman's opinion points out that the double liability imposed
on all stockholders of national and state banks may be established, according to decisions of many courts, against the real or true owner,
whether there be the intervention of a trust or not.
In order that recourse be had to this remedy, however, the trust fund
would ordinarily be first exhausted, and the well-known trusts of this
character now on the market are so diverse in their holdings that the
assesment of double liability for failure of any one bank would have
little effect upon the trust as a whole. The total liability which may be
assessed is the par value of the shares held in the trust, and this amount
is ordinarily small in comparison with the total assets of the trust.
The decision of the Attorney General is one of importance, since it
involves a type of security comparatively new in character and upon
which there may have been as yet no court decisions. No occasion, so
far as is known, has arisen in which court action against the holders
of these investment trust certificates has been found to be necessary
and the likelihood of any such action is regarded as remote.
Prince & Whitely—Supreme Court Justice Strong Denies
Injunction Restraining Failed Brokerage Firm from Further Trading in Stocks—Court Rules "Moral Turpitude"
Is Shown, But Action Should Be Taken Under the Penal
and Not the Civil Code.
In further reference to the affairs of the failed brokerage firm of Prince & Whitely against which bankruptcy
proceedings were brought on Oct. 9 last, Supreme Court
Justice Selah B. Strong of Brooklyn, in denying on MonJustice Miller of New York Supreme Court Rules Brokers
day of this week, March 30, a motion brought by the State
Surety Does Not Cover Trading by Customers' Man—
Attorney General's office for an injunction restraining the
Bond Held Invalid for Employe's Loss.
concern from trading in stocks, declared that action should
incurred by an employe of a brokerage house
Losses
be taken under the penal and not the civil law. We quote
further as follows from the New York "Times" of March in market operations are not covered by bonds issued by
surety companies to brokers protecting them against
31, from which the preceding matter has been taken:
losses
due to acts of their employes according to the New
The concern was suspended by the Stock Exchange six months ago.
Proceedings in bankruptcy were brought on Oct. 9. Assets were listed York "Times" of April 1, which stated that this ruling was
last month as $9,650,784, and liabilities as $19,962,253, of which cus- made on March 31 by Supreme Court Justice Julius Miller
tomers' equities were $16,634,594. It was said at the State Bureau of
by the Stock Exchange concern of
Securities that Deputy Assistant Attorney General Davis was cooperating in dismissing a suit
with Assistant District Attorney Kane with a view to bringing criminal Arthur E. Frank & Co. against the Fidelity and Deposit
proceedings and that records in the case also had been sent to the office Company to recover $334,100. The "Times" account went
of United States Attorney Medalie.
The Attorney General's office sought to restrain stock selling activities on to say:
- The complaint alleged that on Jan. 13, 1929, the brokers obtained
the usual form of "blanket bond" from the defendant protecting them
against loss due to acts of their employes. Eugene J. McCarthy was
employed as a customers' man for the concern and was covered by the
bond. The brokers charge that between June 10 and Sept. 9, 1929, McCarthy embezzled $1,014,387 and that the loss was not discovered until
the latter date.
The brokers say they learned that several securities were held in accounts with the concern operated by McCarthy and that they notified
the surety company that they were making arrangements to recover as
much of the loss as possible from McCarthy by taking over the securities and obtaining an assignment from him of an interest in the estate
of his father. The brokers notified the surety company on Oct. 8, 1929,
that the loss was $174,324, but after liquidating all the securities and
crediting against the losses all sums received from the stocks and
otherwise, including $10,000 on other surety bonds covering McCarthy,
they gave notice that the net loss was $344,100, for which they sued.
The main defense upon which the court dismissed the complain was
The opinion of Justice Strong, as printed in the paper that
the losses sued for were due directly or indirectly to "actual or
mentioned, reads in part as follows:
fictitious customers of the insured," and that the bond did not apply
"There is no doubt but that the defendants were involved and in an to such losses.
endeavor to cover their difficulties they resorted to several schemes to
mislead and deceive the New York Stock Exchange, which sent a ques- Bank Merger Held Not to End State Charter—Pennsylvania
tionnaire to them. This questionnaire was sent out in the interest of
Decision Says Union of Trust Company With National
the trading public who deal with brokerage houses that are members of
Bank in Easton Is Not Dissolution.
the New York Stock Exchange, and if it had been truthfully answered
and the true condition of Prince & Whitely divulged, the firm would
The
following from Harrisburg, March 27, is from the
from
all
privileges of the Exchange, and that
have been suspended
would have meant the termination of their stock brokerage business. On "United States Daily":
June 30, 1930, in their monthly statement they listed as assets, securiWhen a Pennsylvania State bank consolidates with a national bank
located in the same county, city, town or village pursuant to the acts
ties valued at $900,000 which they did not own.
"Later they took from the Prince & Whitely Trading Corp., of which of Congress authorizing such a consolidation, the charter of the State
they were the officers and directors, the sum of $1,500,000 without bank is not thereby extinguished and the State corporation is not
security other than a note, endorsed by all of the partners, the money thereby dissolved, the Supreme Court of Pennsylvania has held in the
being used to bolster up the margin account of J. M. Hoyt Co. with Prince case of Commonwealth of Pennsylvania, Intervener, v. First National
& Whitely, thus giving the firm further cash assets in that amount. Bank and Trust Company, of Easton.
Then they transferred this note to H. & J. Securities Co., another comIn accordance with the decision, it will be necessary for the Northpany owned by them and juggled 23,000 shares of Hahn Department amptcn Trust Company, which consolidated with the First National
Stores preferred stock so as to show transactions which would mislead. Bank of Easton under the title of First National Bank and Trust ComWithin a few days the note and stock were retransferred to the original pany, on July 1, 1929, to apply to the Court of Common Pleas of
holders. Finally they took and hypothecated securities belonging to cus- Northampton County for a decree of dissolution if it wishes to extinguish its charter.
tomers.
"It is not pertinent to the issue that certified public accountants by
The Pennsylvania court cites with approval the case of Petition of
book figures were able to read assets in excess of liabilities. That no Worcester County National Bank (152 N. E. 217) decided by the Massasecurity was given for the $1,500,000 taken, not only showed how deeply chusetts Supreme Court in 1928, and later affirmed by the Supreme
the firm was involved, but also demonstrated moral turpitude. The affi- Court of the Untied States (279 U. S. 347).
by the concern and several of its members or its subsidiaries, on the
ground that provisions of the Martin act had been violated. The law provides that the Attorney General may obtain an injunction restraining
the activities of any brokerage house whose dealings are not in accord
with sound business methods, but Justice Strong held that the Martin law
could not apply in this case because the acts complained of already had
been consummated.
Justice Strong added that the penal law appeared to be violated and
that the acts of the company indicated "a disregard of the property
rights of their customers and demonstrated moral turpitude."
Members of the concern included James M. Hoyt, G. Lisle Forman,
Morrison B. Orr, Lawrence S. Critchell, James H. Stark, Oscar B. Van
Zandt, Otto Antonsen, Gerald W. Hoyt and Felix Hughes. All were
named as correspondents with the concern in the petition for the injunction. The affidavit set forth in part that the concern had juggled
its assets so as to deceive the officials of the Stock Exchange and its own
customers.
2498
FINANCIAL CHRONICLE
[VOL. 132.
"The United States has no power to create or destroy Pennsylvania
corporations," the opinion states. "They can be destroyed only by
Pennsylvania or with her consent."
The State laws provide a method for dissolution of the charters of
Pennsylvania corporations, and it is a corollary of this, the court holds,
"that only by obedience to the prescriptions of this act can a eorporation called into being by Pennsylvania be dissolved."
I find that in the discussions on the question of departmental banking
or segregation of time deposits in commercial banks, little consideration is
given to the fact that at the present time there is no Federal law requiring
such a procedure by National banks. It must be kept in mind that National
banks cannot be so restricted by any State statute since a State sovereignty
can never control or restrict in its banking operation an instrumentality
of the Federal Government—a National bank is such an instrumentality.
If State commercial banks were compelled to segregate their thrift
accounts they would be discriminated against and National banks would
—
Commission
Not
New Branch Banking Law in Indiana
be favored. The State banks would smart under such disparity. The
to Issue Branch Charters Until Regulations Are National City Bank, for example, has been most vigorous in its expansion
program. It is and has been extending its branches throughout the
Adopted.
Boroughs of Manhattan, Bronx, Queens, and Brooklyn. It has strong conThe following from Indianapolis, March 21, is from the tenders for branch bank mastery in Brooklyn and Queens in the Bank of
Manhattan Co., the Brooklyn Trust Co., and the Irving Trust Co. If the
"United States Daily" of March 23:
proposed restrictions were passed causing segregation of savings deposits
The Indiana State Charter Board, according to announcement by
and the investment thereof, the advantage of the National City Bank, for
Luther F. Symons, Banking Commissioner, has drafted plans to carry
example, over the Bank of Manhattan Co., or the Irving Trust Co., or the
out the purpose of the new branch banking law, passed by the 1931
Brooklyn Trust Co., all State institutions, would be tremendous. This
Legislature and made operative immediately by an emergency clause.
advantage would be highly unfair. I do not believe that the National City
Under the law charters must be granted for each branch bank. The
Bank covets this advantage, but would not, I am sure, refuse the advantage
Board has decided that no charters will be granted until a committee
is appointed to prepare rules and regulations governing the branches if it were offered it.
In the discussions, furthermore, little attention is paid to the fact that
and the granting of charters.
Attorney General James M. Ogden will be asked to prepare applica- there would not be sufficient "legal" investments for all the savings funds—
tion forms. Mr. Symons said, and the Advisory Committee of the In- thus segregated. Such securities listed for "savings" investments would
diana Bankers Association will be asked to advise on granting branch soar in price to ridiculous heights.
Bad cases usually make bad law. Our recent bank difficulties should
charters.
not be the only compelling force in effecting changes in our banking statutes.
The new branch bank act was referred to in our issue of The Bank of United States and the Chelsea Bank are the worst kind of
foundations upon which to base constructive amendments to our banking
March 21, page 2115.
law. The public hysteria attendant upon these failures is quite inconsistent with safe and sane banking changes.
I personally hold no brief for either side of the case, and believe the
N. P. McKinnon of Minneapolis-St. Paul Stock Exchange to Address Annual Meeting of Associated matter should be divorced from consideration of the Bank of United States
and Chelsea Bank difficulties.
Stock Exchanges in Buffalo.
It is well to consult the experience of other States on the subject. I
Neil P. McKinnon, Secretary-Treasurer of the Minne- find that very few States have departmental banking, with consequent
of thrift accounts from commercial demand deposits, with
apolis-St. Paul Stock Exchange, will speak on "The segregation
limitations and restrictions upon investment.
Advantages of Curb Markets" at the annual meeting of the
The States of Maine, New Jersey, Vermont, Pennsylvania, Delaware,
Associated Stock Exchanges in Buffalo, N. Y., May 25. Maryland, Virginia, West Virginia, North Carolina, Tennessee, Florida.
Louisiana, Oklahoma, Arkansas, New Mexico, Arizona, Missouri, Kansas,
The convention is expected to attract between 200 and 300 Iowa,
South Dakota, Nebraska, Illinois, Wisconsin, Minnesota, Colorado,
delegates and financial representatives, according to Clark Utah, Idaho, Montana, and Washington have no such segregation. ComSecretary
of
the
paratively
few States compel segregation, the notable ones being MassachuWickey,
association.
The
Detroit,
C.
Associated Stock Exchanges consists of 15 markets in setts and California. Connecticut, Rhode Island, New Hampshire, Michigan,
Wyoming, Ohio, Oregon, and Texas are others that require segregation.
various sections of the country. In addition to the Buffalo
The State Bank Commissioner of Louisiana, Mr. J. S. Brock, writes me
Exchange, markets in the following cities are members: that in that State "there has never been any occasion or experience prompting
a recommendation of this kind."
Cleveland, Detroit, New Orleans, Columbus, Washington,
The Bank Commissioner of Oklahoma, Mr. C. G. Shull, says: "I have
Los
Philadelphia,
Angeles,
Baltimore,
MinneLouis,
St.
given the matter some little thought, and in my opinion conditions in
apolis-St. Paul, Cincinnati, Pittsburgh, Portland (Ore.) this State do not justify such a law at this time."
The Bank Commissioner of Kansas, Mr. H. W. Koeneke, states:
and Hartford.
"A segregation of investments for savings deposits would perhaps work to the
disadvantage of the savings depositors, for the reason that the bank would naturally
that savings or time deposits were in the form of investments by the deNew York Produce Exchange to Consolidate Various consider
positor and could be Invested in long time securities and would not have the liquidity
Publicity Committees.
which Is now available to the Kansas depositors owing to the fact that it is advisable
and necessary that the Kansas banks invest a certain portion of their funds in highly
The New York Produce Exchange announces the con- liquid securities and the savings and time depositors benefit In their proportion
in
this liquidity. It would seem to me that it would be dangerous to bring about a
solidation of the various publicity committees representing segregation
which would necessarily mean that the permanence of the savings and
deposits would be taken into consideration and long time investments made.
securities, grain, flour, cottonseed oil and steamship in- time
which might not be liquid and in timestimesof depression would not be readily mar-
terests, into one general Committee on Publicity, the personnel of which follows: F. F. Steinhardt, Chairman; John
N. Claybrook, William Fritz, Axel Hansen, William C.
Mott, John M. Murray, John F. Parry, Geo. H. Wells.
New York Cocoa Exchange to Move to Beaver Street.
The New York Cocoa Exchange will move from its
present address at 124 Water Street to new quarters at
82-92 Beaver St., according to an announcement by William
J. Kibbe, President. Although no date has been set for the
beginning of trading in the new quarters, it is expected to be
sometime before May 1st. The new home of the Cocoa
Exchange is in the old cocoa district of New York and is
more centrally located with respect to the offices of Exchange
members and other Exchanges of the city. The New York
Coffee & Sugar Exchange occupied the site from 1883 to 1885,
when it was known as the New York Coffee Exchange.
The present New York Cocoa Exchange building is the
original home of the Cocoa Exchange, which was opened for
trading on Oct. 1 1925. Trading on the Exchange is confined
to futures contracts and the annual turnover, it is said, is
equal to the entire world's production of this commodity.
Membership of the Exchange includes persons in the cocoa
trade in all parts of the world and the leading Wall Street
commission houses.
ketable."The Banking Commissioner of Wisconsin, Mr. C. F. Schwenker, states:
"In connection with the liquidation of suspended banks, we are not convinced
that the segregation of time deposits, and segregation of investment thereof, would
be of any material benefit to the savings creditors, because the experience in those
States, which do segregate such as California and Michigan, has been that the
Investment of time deposits has been generally in long term Investments, which
in this period of depression have suffered the greatest depreciation."
The State Bank Commissioner of Colorado, Mr. Grant McFerson, states
as follows:
"We wish to advise you that some years ago the law required the segregation of
savings deposits but due to the fact that after several years it was decided this was
making a preferred creditor of such accounts this law was repealed. It was not
felt that such restriction or handling of savings accounts was of material benefit
to their business and beyond question of doubt the preferment of any creditors
is a policy which cannot be considered as a fair one to the general Creditors of an
institution."
On the other hand, however, the Secretary of Banking in the State of
Pennsylvania, Mr. Peter G. Cameron, advises that there is no provision in
the Pennsylvania Banking Laws requiring the segregation of time deposits
and their investment in restricted classes of securities. He further states
that without having given the subject mature consideration he is inclined
to the belief that time deposits might well be segregated and invested in
securities of a very high grade and segregated from the general assets of
the bank for the protection of these depositors in the ease of failure.
In North Carolina the law does not provide for segregation. Nevertheless,
the Liquidating Agent of the Banking Department of that State, Mr. C. F.
Taylor, calls attention to the fact that at the present time there is before
the Legislature of North Carolina, now in session, the same suggestion made
by the Banking Superintendent of New York, sponsored by parties interested
in the subject.
Although Florida has no such legislation, the Comptroller of the State
seems to be in hearty accord with the suggestion of the Banking Superintendent of New York.
It is interesting to know that our neighbor to the north, Canada, "does
not require a segregation of savings accounts or provide for their investment in any prescribed fashion." (See "The Banking System of Canada",
by Benjamin H. Beckhart, page 402.)
The Legislative Reference Service of the Library of Congress also reports
to me after consulting many treatises and translations of banking laws
of many European countries that generally no such restrictions exist in
Europe.
Representative Celler Holds Law Compelling State
Banks to Segregate Thrift Accounts Would Result
in Discrimination—Few States Require Segregation
—Views of Bank Commissioners.
In the view of Representative Emanuel Celler of New
York, "if State commercial banks were compelled to segre- North Carolina Governor Seeks Banking Control in
gate their thrift accounts they would be discriminated
State—Asserts Only Two States Lack Power of
against and National banks would be favored". RepreSupervision by Executive.
sentative Celler thus expressed 'himself in a statement issued
Only two States, North Carolina and Mississippi, give the
at Washington, on Mar. 27, which we give herewith:
Governor no authority in the supervision of banking institu-
APRIL 4 1931.]
FINANCIAL CHRONICLE
'399
the point to bear in mind is that it is much more easy to
tions, according to Governor 0. Max Gardner, who cited a dares, "but
create an artificial, unhealthy gloom in a country where the banks lend
his
for
survey of the laws of the 48 States as authority
themselves to inflationary methods than in one where finance is on a
statement. We quote from Raleigh, N. C., advices, Mar. 24, more conservative basis."
to the "United States Daily", which also had the following
Subscription to $100,000,000 90-Day Treasury Bills Toto say:
taled $343,857,000—Bids Accepted $100,855,000—
The Governor was commenting upon the proposed 'Seawell bill in the
North Carolina Legislature which would divorce the banking supervision
Bills Re-offered.
from the Corporation Commission and make the Bank Commissioner an
Secretary of the Treasury Mellon announced on March
appointee of the Governor.
37 Governors Have Choice.
30 that the new issue of 90-day Treasury Bills offered in
In 37 States, Governor Gardner pointed out, authority to appoint the two series to the total amount of $100,000,000 or therebank supervisor is vested in the Chief Executive. In six other States, the abouts were heavily oversubscribed, the total amount apGovernor has a measure of control and responsibility in that he shares in
amount of bids acthe selection with a body .which has power of recommendation. In three plied for being $343,857,000. The total
cepted was $100,855,000, which was equally apportioned
States the Bank Commissioner is elected by the people.
The State Treasurer, Nathan O'Berry, issued a statement in support of between the two series offered to the amount of $50,000,the Seawell bill. It follows in full text:
highest bid was 99.695,
The great financial depression that has had the world in its grip for the 000 each or thereabouts. The
equivalent to an interest rate of 1.22%. The lowest bid
past 18 months has been caused largely by a want of confidence.
The average man has not only lost confidence in his fellowman, but in accepted was 99.621, equivalent to an interest rate of
himself, as far as the question of investment goes. The masses have
1.52%. The average price of the bills to be issued is
become greatly alarmed over the large number of bank failures not only
about 99.634. The average rate on a bank discount basis
in this State but in the United States.
The great question that faces us all to-day is: What can be done to is about 1.46%. The offering was referred to in our issue
restore this confidence? There are many millions of dollars in trunks, of March 28, page 2315. Secretary Mellon's announcestockings, and lock boxes in banks tied up to-day for the reason that the
ment of the result of the offering follows:
average man and woman is afraid of all banks.
"Secretary of the Treasury Mellon announced today that the tenders
Now, what we should do as far as possible is to get this confidence
thereabouts, of 90-day treasury bills which were
restored. I do not believe that any law that could be enacted by this for $100,000,000, or
1931, were opened at the Federal Reserve banks
Legislature would do more toward restoring confidence in the masses of offered on March 26,
1931.
30,
March
on
bill.
Seawell
the people than the enactment of the
"The Treasury's earlier announcement provided that the bills would
Strict Supervision Lacking.
be issued in two series, $50,000,000, or thereabouts, dated April 2, 1931,
That the banks of this State and most other States in the Union have and maturing July 1, 1931, and $50,000,000, or thereabouts, dated April
not had the strict supervision that they should have had goes without 3, 1931, and maturing July 2, 1931, the accepted bids to be apportioned
saying. If the Seawell bill is enacted into a law, every man who knows by the treasury equally between the two series, in so far as the minimum
Governor Gardner knows that he will select a highly trained man who denomination of $1,000 will permit.
specializes in banking for this position.
"The total amount applied for was $343,857,000. The highest bid made
It is a crime against high heaven that banks should be so managed that was 99.695, equivalent to an interest rate of 1.22% on an annual basis.
when one crashes the President, directors, and those close in lose no money, The lowest bid accepted was 99.621, equivalent to an interest rate of
but the poor unfortunate who is not close to the powers that be is the one about 1.52% on an annual basis.
"The total amount of bids accepted was $100,855,000, which has been
who suffers most.
equally apportioned between the two series. The average price of treasto be issued is about 99.634. The average rate on a bank
Hoit, Rose & Troster Report Trend of New York City ury billsbasis
is about 1.46%.
discount
Bank and Insurance Stocks Downward During
March.
The trend of prices in the New York City bank stock market and in the leading insurance stocks traded in over-thecounter was downward during the month of March, according to records compiled by boa, Rose & Troster, they state:
The average for 16 leading stocks which reached a high of 110 for the
month on March 5 dropped to 102 on March 30, and closed the month at
103. The sharpest declines were recorded in New York Trust which
dropped 10 points from the high, Corn Exchange off 11 points, Bank of
America 133 points, and Guaranty 36 points. Central Hanover closed at
268 the high point for the month.
The Insurance stock average was at 70 on March 2, from which level it
dropped to a low of 66 on March 30, which was also the closing level for
the month.
On April 1 the International Manhattan Company, Inc.,
and Salomon Bros. & Hutzler re-offered $30,000,000 of the
90-day Treasury Bills, in approximately equal amounts of
series dated April 2, and due July 1, 1931, and Series dated
April 3, and due July 2, 1931. The bills are offered at a
discount of 1.375% per annum. The bills are part of two
series of $50,000,000 (or thereabouts) each, referred to
above. The Treasury bills are bearer obligations of the
United States, promising to pay a specified amount without interest on a specified date. They are authorized by
Section 5 of the Second Liberty Bond Act, as amended.
Any income derived from these bills is exempt from all
taxation excepting estate and inheritance taxes.
Our Federal Reserve Policy Assailed in London—"Monetary Ease" Is Attacked by J. C. Zulauf, an American Notice of New York Federal Reserve Bank of Forthcoming
Treasury Issue.
Foe of the System—Warns of New Disasters.
The following notice incident to a forthcoming Treasury
From the New York "Times" we take the following from
offering was issued by the New York Federal Reserve
London, March 15:
Hints of moves in prospect to reform certain aspects of the Federal Bank on March 31:
Reserve System of the United States are awakening keen interest in
financial circles here, where criticisms of American monetary policy
have been heard from time to time even before the market break of
1929. The most outspoken of recent attacks on Federal Reserve policy on
this side of the ocean appears in the current issue of The London Times
Trade and Engineering Supplement, and is written by John C. Zulauf, an
American banker who was an active opponent of the system when it was
established in 1914. Mr. Zulauf's structures are regarded here as
especially significant in view of indications in the recent Reserve Board
report that "monetary ease" in the United States might give way to a
more conservative policy in the future.
Unless "monetary ease" is abandoned and free circulation of gold resumed, Mr. Zulauf warns that another financial disaster will be precipitated upon the United States and the world.
"The policy of cheap money and credit, if continued," he writes, "will
inevitably in time bring about another disaster. Those who see 'prosperity just around the corner' will not be disappointed if they will be
but patient. But let them be prepared to see also the succeeding collapse."
Mr. Zulauf has traveled widely in Europe in recent years studying
the effects of unsound finances. A fundamental error of the Reserve
System, he now declares, "lies in the idea that it is the business of some
one or some institution to furnish cheap money or credit for the masses."
It is an underlying error, which, he declares, leads the banker to become a borrower, thus reversing the normal order of things and disorganizing the normal state of business. Once speculations in the United
States began on such a basis, Mr. Zulauf writes, "there was no power
in the government or in the Reserve System to put an end to inflation
until it broke down under its own weight, although from the beginning
it was recognized by conservative bankers and business men everywhere
as a danger, not only to that country but to the world.
"If it be seriously desired to put an end to 'recurring periodic cycles'
of inflation, collapse, panic, depression and demoralization it is possible
to do so by giving up in its entirety the idea of cheap money credit and
facing squarely the need for a return as soon as possible to the free
circulation of gold in the channels of trade and commerce."
Editorially the Trade and Engineering Supplement endorses Mr.
Zulauf's views, asserting that "booms" and their aftermaths are the
result of false ideas as to the true function of banking. Boom periods
are not exclusively characteristic of any one country, the editorial de-
FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
NEW TREASURY ISSTJE
Preliminary Notice of Offering and Methods of Filing Subscriptions
To AD Banks and Trust Companies in the Second Federal Reserve,
District and Others Concerned:
From advices received from the Treasury Department of the United
States, this bank is enabled to transmit to banking institutions in this
district the following information:
I. A Treasury offering may be expected on or about Tuesday,
April seventh.
2. The subscription books may be closed by the Treasury without
advance notice, and therefore,
3. Each subscribing bank, upon receipt of information as to the
terms of the Treasury offering (either in the press, through the mails
Bank
or by telegram) should promptly file with the Federal Reserve
any subscriptions for itself and its customers. This is important,
as no guarantee can be given as to the period the subscription books
may remain open, and subscribing banks, even before receipt of official
subscription blanks, may file their subscriptions by telegram or by
filed by
mail with the Federal Reserve Bank. Any subscriptions so
telegram or mail in advance of receipt by subscribing bank of subscription blanks furnished for the particular issue should be confirmed immediately by mail, and on the blank provided, when such
blank shall have been received.
for both
4. If the terms of the offering when announced provide
be tendered
cash subscriptions and subscriptions for which payment may
its
subscripin other securities, the subscribing bank should prepare
tions in such manner as to indicate the method by which it proposes
of
amounts
if any,
securities,
par
respective
the
to make payment and
to be tendered in payment.
Classification of Subscriptions, Etc.
Bank Customers' Subscriptions: With regard to issues, subscriptions to which the Treasury determines for the purpose of allotment
shall be considered as on a cash basis irrespective of whether or not
payment is to be made in cash or in securities, the following classification will be required of subscriptions made for account of customers,
stating the number of subscriptions in each class.
2500
FINANCIAL CHRONICLE
[VOL. 132.
Class A—Subscriptions for $1,000 or less for any one subscriber;
Class B—Subscriptions for over $
1,000, but not exceeding $ 10,000;
Class C—Subscriptions for over $ 10,000, but not exceeding $ 50,000;
Class D—Subscriptions for over $ 50,000, but not exceeding $ 100,000;
Class E—Subscriptions for over $ 100,000, but not exceeding $ 500,000;
Class F—Subscriptions for over $ 500,000, but not exceeding $1,000,000;
Class G—Subscriptions for over $1,000,000.
Where the maturing securities are not by the instructions accompanying the offering given a preference they shall be treated as cash and
such subscriptions to be paid for in securities should be included in the
classification.
Bank Subscriptions: A subscription for a bank's own account should
not be included in the above classification of subscriptions for account
of customers but should be clearly indicated as for the bank's own
account and in addition to subscriptions for customers.
Subscriptions Not Classified: Where under the terms of an offering
or under instructions accompanying an offering, the Treasury agrees to
allot new securities in full for any of its securities maturing on the
date of the new issue or on any later date, subscriptions to be paid for
in such securities should not be classified.
Application Forms to Be Furnished.
When the terms of the offering are announced, notice thereof, together with subscription blanks, will be mailed promptly by this bank
to banking institutions in this district. Should notice and subscription
blanks for any reason be delayed in reaching such institutions this
bank will nevertheless receive subscriptions either by letter or telegraph.
It is suggested that subscriptions be promptly transmitted to this bank.
If it be found necessary to telegraph subscriptions they should be
confirmed immediately either by letter or on subscription blank, setting
forth the classifications indicated above and method of payment, and
clearly stating that the confirmation is not an original subscription so
that duplication may be avoided.
- Subscriptions cannot be received until the terms of the offering are
publicly announced by the Secretary of the Treasury.
GEORGE L. HARRISON,
Governor.
governmental authorities and include capital outlays and debt retirements.
On a per capita basis the total governmental expenditures amounted to
$105.20 for the fiscal year ended 1928 as compared with $103.04 for the
preceding year.
The report makes an interesting comparison between governmental
expenditures and national income. The gross expenditures of all governmental divisions in the United States, as has been stated, amounted to
12,609 million dollars for the fiscal year ended in 1928, the last fiscal
year for which totals of State and local governmental expenditures are
available. In 1913 the total amount of governmental expenditures was
2,919 million dollars. The increase for the 15-year period was over 300%.
The total national income in 1928, according to the Conference Board's
estimate, was 81 billion dollars, as compared with 34.4 billion dollars in
1913, thus showing an increase of 135%. In other words, governmental
expenditures grew more than twice as fast as national income.
In the preceding comparisons of the relative percentages of increase
in governmental expenditures and in national income from 1913 to 1928 it
was not necessary to make allowance for changes in the purchasing power
of the dollar, but when the actual figures of expenditures for 1913 are
compared with those for 1928 this factor must be taken into account.
Under ordinary conditions, states the report, the volume of governmental
expenditures from one year to another is not greatly affected by changes
in the price level. But when comparisons are made for two years so
widely separated as 1913 and 1928 valid conclusions are not possible unless
allowance is made for changes in the purchasing power of the dollar.
Expressed in 1913 dollars, total governmental expenditures amounted to
9,006 million dollars for the fiscal year ended in 1928, as compared with
2,919 million dollars for that ended in 1913, an increase of more than
200%. Expressed in 1913 dollars the per capita expenditures amounted
to $75.14 for the fiscal year ended in 1928, as compared with $30.24
for 1913, or an increase of nearly 150%.
Federal expenditures alone for the fiscal year ended in 1928 amounted to
3,970 million dollars, or 31.5% of the combined governmental expenditures.
Payments for debt service were considerably smaller than in the preceding
year and accounted for a decline in gross expenditures. The net expenditures of the Federal Government have been increasing in recent years.
Net expenditures for the fiscal year ended in 1928 were 8.5% greater than
Expectation That Treasury Will Offer Treasury Certificates the preceding year. In 1929 there was a further increase of 10.7%,
which, in turn, was followed by an increase of 6% in 1930, the net total
of Possibly 8250,000,000 Next Week to Meet Loans on of that year being 2,736 million dollars.
Soldier Bonus—$278,000,000 Paid in Loans.
In the fiscal year ended in 1928 the gross expenditures of the State
Reports of the possibility of the offering next week of governments amounted to 1,826 million dollars, or 14.5% of the combined
governmental expenditures. Highways, as in preceding years, accounted
something like $250,000,000 of Treasury Certificates of for a higher proportion of State expenditures than any other 'purpose.
indebtedness were current this week. Preliminary notice Exclusive of Federal aid funds, the highway expenditures of the States in
of a forthcoming Treasury issue is given in another item that year amounted to 581 million dollars, or 34.2% of the net total
and 31.6% of the gross total. Education ranks second in importance as
in these columns today, but there is no intimation therein an object of State expenditure.
as to the nature of the offering or the amount. A stateLocal expenditures in 1928 amounted to 6,813 million dollars, or 54%
ment to the effect that the proposed Treasury certificates of the combined expenditures of all governments in the United States.
Increased expenditures for education, highways, and debt service have
are designed to meet loans on world war veterans adjusted been the principal
factors in the increasing cost of local government in
service certificates was contained in a dispatch April 1 the United States.
from Washington to the New York "Times" from which
the following is also taken:
Treasury officials declined tonight to indicate the character of the issue,
although it was said that the offering probably would be too heavy for
bills and that a precedent might be set by an offering of certificates.
Rarely since the war has there been a certificate issue at any time except at quarterly income tax payment dates.
Demands for funds to meet veterans' loans have been much heavier
than were anticipated. Since the legislation which increased the loan
value of the certificates to 50% of their face, the Treasury has borrowed about $300,000,000. Already the outlay has far exceeded the
estimate, thus necessitating new borrowings.
$278,000,000 Paid in Loans.
Brig. Gen. Frank T. Hines, administrator of veterans' affairs, announced tcday that through Sunday 1,661,628 applications for loans on
adjusted service certificates had been received and to that date 744,657
checks had been issued to a value of $278,091,530.
"Applications received for the week ending March 28," he said,
"totaled 90,337, and during that week 243,454 loans had been made,
aggregating in value $89,076,358. The total number of loans applied
for does not include applications received directly by banks throughout
the country.
"The total value of outstanding loans including loans made prior to the
act authorizing increased loan values, and including loans made under
that act to date, approximates $638,300,000.
"Through March 28, the local regional office received 52,329 of the
total number of applications, and issued 23,243 checks totaling $8,748,344.
The applications received in the Washington regional office from
March 24 to 28 inclusive, were as follows: 24th, 1,628; 25th, 2,035;
26th, 1,386; 27th, 1,219; 28th, 662."
National Industrial Conference Board Points to
Rising Government Cost as Matter of Serious
Concern.
The constantly rising cost of government is a matter of
serious concern throughout the world, and the United States
is no exception to the rule, says the National Industrial
Conference Board, In releasing, on Mar. 30, the figures
contained in its eighth annual report on the cost of government. The report shows that despite increasing taxation,
which placed a heavier burden on old sources of revenue
and also brings into play new means for extracting funds
from the pockets of the taxpayer, the public debt is still
mounting to more dizzy heights. What is urgently needed,
it says, is that great vigilance on the part of the public,
and especially the taxpayers, toward governmental expenditure be exercised at all times. The Board says:
The combined total governmental expenditures, Federal, State, and
local, for the fiscal year ended June 30 1928, amounted to 12,609 million
dollars. This was an increase of 430 million dollars over the preceding
year, or 3.5%. These figures cover the aggregate expenditures of all
1,524 New Laws Enacted by Last Congress.
The number of laws confronting the American citizens
was Increased by 11524 by the recent Congress, according
to Associated Press advices from Washington, Mar. 21,
Which likewise said:
This was shown to
-day in the 250-page final edition of the "Congressional
Record".
It also discloses that about 25,000 Federal laws have been enacted during
the present century.
Of this number, 15,000 were passed during the first 10 years, 3,000 the
next decade, and 6,000 in the last 10 years.
Final Calendar of House Issued—Publication Compares
Work With That in Previous Congresses—Opening
and Adjournment of Three Sessions of 71st Congress.
'The final calendar of the House, the last official tabulation of the work of the 71st Congress, was issued by the
House of Representatives on Mar. 21. This was noted in
the "United States Daily" of Mar. 23, which said:
It gives not only comparative statistics of work of Congress as compared
with previous Congresses, but also a history of legislation of the past
Congress, including all proposed legislation pending and failed at adjournment on Mar. 4.
This chronology of the three sessions of that Congress is given: First
session began April 15 1929, and adjourned Nev. 22 1929; second session
began Dec. 2 1929 and adjourned July 3 1930; third session began Dec. 1
1930 and ended Mar. 4 1931.
The calendar consists of 351 pages, with a complete list of bills left on
the various calendars unacted upon and an index to them, showing their
stages of progress.
Six Senate Inquiries Planned for Interim—Joint Congressional Committee, Headed by Wagner, Will Study Job
Insurance.
Six Senate investigating committees prepared today to
share the spotlight forfeited by Congress for the next nine
months, said an Associated Press account from Washington March 4, carried in the New York "Times." It went
on to say:
They will carry on investigations into lobbying, campaign funds, postoffice leases, economic conditions, banking facilities and the condition of
the Indians.
In addition a joint Congressional committee will inquire into unemployment insurance and a commission composed of members of Congress
and Cabinet officers will begin tomorrow to study methods of "equalizing
APRIL
4 1931.]
FINANCIAL CHRONICLE
2501
the burdens of war" by universal draft and otherwise. Newton D. Baker
will be the first witness.
The Lobby Committee, Chairman Caraway said today, probably will
open next week its inquiry into published reports that a Senator received
$100,000 or more from a domestic sugar company while Congress was
considering the tariff bill. Senator Davis, Republican, of Pennsylvania,
asked for the investigation and appeared before the committee to characterize the charge a "lie" if it referred to him.
Chairman Nye of the Campaign Funds committee said his committee
would meet late next week to plan its program, and Chairman Blaine of
the committee Investigating Postal Leases plans later to continue the
inquiry into the lease for the St. Paul commercial station postoffice. Hearings in the banking investigation have been completed for the present,
but Chairman Glass said he would call on leading bankers and economists
for consultation on proposed legislation.
The Senate authorized its Manufacturers' Committee to hold hearings
during the Summer on Chairman La Follette's bill to establish a national
economic council.
The sixth Senate investigation will be a continuation of the study of
conditions among the Indians. Chairman Frazier said the committee
would leave during the early Spring for Arizona and New Mexico to complete the investigation.
Senate members of the Unemployment Insurance Committee were appointed by Vice President Curtis today. Senator Wagner, author of the
proposal, was named chairman.
Another Senate investigation, that of Ralph S. Kelley's oil shale
charges, died with the Congress.
March 28, income tax collections were $1,502,172,000, a decline of
$303,000,000 from the same period a year ago.
Final figures for March will be available Thursday. They will show
losses in all receipts for the nine months of the fiscal year of more than
$500,000,000, including, besides income taxes, a drop of more than
$129,000,000 in customs revenue and $40,000,000 in miscellaneous internal revenue receipts.
For the nine months total expenditures will show an increase of more
than $120,000,000.
Treasury records show that there probably will be a turnover in the
public debt, through new issues and retirements, of more than $30,000,000,000 in the fiscal years 1931, 1932 and 1933, if the First and Fourth
Liberties are refunded on the call dates in 1932 and 1933.
The capital believes that a long-term bond issue of large proportions
may be expected within the next year or two to clear away the shortterm debt so that the treasury may arrange to retire the 45.4% Fourth
Liberty loan of $6,268,232,000 in 1933.
"There will be no increase in taxes if the next Congress imposes no
increases upon the budget or other expenditure proposals which the administration will present. But for Congress to do this, the people must
co-operate to effectively discourage and postpone consideration of the
demands of sectional and group interests."
The Treasury deficit means that taxes must ultimately be increased,
Senator Borah declared, though he believes that will be postponed until
December 1932.
He expressed himself as opposed to any scheme of bond issues by the
Treasury to meet deficits in tax returns.
Referring to the two aims of the inheritance tax to raise money and to
prevent accruing of large fortunes—Senator Norris said that the latter
consideration is of increasing importance.
"It is more important now than it was 10 years ago," he said, pointing
to the fact that 4% of the population own more than 80% of the nation's
wealth.
Opposition to the inheritance tax, he said, is based on the contention that
it should be left to the States. He said this view leads to inequalities and
the concentration of wealth in certain geographical areas.
In this connection he referred to the State of Florida, which, he said,
capitalizes the idea that it has no inheritance tax, thereby attracting
wealthy men there to live.
Senators Norris and Borah Favor Tax on Inheritances
to Overcome Treasury Deficit.
The establishment of a Federal inheritance tax was
recommended Mar. 26 as a means of raising revenue with
the least burden, and preventing the aCcruing of unduly
large fortunes, by Senators Norris (Rep.), of Nebraska,
and Borah (Rep.), of Idaho. The two Senators were disthe anticipated Treasury deficit and the necessity
cussing
President Hoover Says There Will Be No Increases in Taxes
for taxation to meet it, notes the "United States Daily" of
If Congress Keeps Within Budget Recommendations.
which went on to say:
A statement by President Hoover in which he announced Mar. 27,
Senator Norris declared that he considered the inheritance tax preferable
his views on the question of increased taxes was issued by to the estate tax, now in force. Either the estate tax on large estates
him as follows on March 31:
should be increased, or the inheritance tax established, he said.
In making this announcement, President Hoover stated
orally, according to the "United States Daily" of April 1,
that he had reached the determination after an exhaustive
canvass of the financial situation in the Government with
the various Executive Departments. The paper from
which we quote also said:
Treasury's Views.
The President's announcement, it was stated orally in behalf of the
Department of the Treasury, means that there will be curtailment, of
expenditures where possible and that other funds required for current
expenditures during the period of low tax receipts will be obtained by
new borrowings.
Congress has appropriated $3,454,000,000 for expenditures during the
fiscal year which begins July 1 in addition to the permanent annual and
indefinite appropriations. The commitments for the 12 months total
$5,180,000,000, but it was explained at the Treasury that it can not be
determined in advance what portion of the permanent annual and indefinite appropriations will be used during a given period.
There are, however, in the opinion of the Treasury, certain points in
the list of appropriations where savings from the authorized expenditures may be made. Determination of these and the amounts which
may be curtailed for savings, however, are up to the President although
the Bureau of the Budget and the Treasury may make recommendations respecting them, it was explained.
Effect of Business Situation.
It was said that some of the financial problems of the Government
will be alleviated if there is a steady recovery of business so that the
tax yield in the next year may be somewhere near normal for the levies
assessed. This suggestion, it was explained, is simply a possibility.
The Treasury will have a deficit in the current fiscal year which its
officials already have stated likely will approximate $700,000,000, and
the belief has been expressed on behalf of the Department that the succeeding year also will show "a large deficit." It is too early, however, to
gauge the excess of expenditures over the receipts during the year that
. begins July 1, but the commitments in the form of appropriations, together with the shrinkage in tax receipts already disclosed, make it
certain that the income will not be large enough to meet expenditures, it
was asserted.
Mr. Borah Comments.
Senator Borah (Rep.), of Idaho, in discussing the President's statement, defended the appropriation record of the Congress, and declared
that he was unable to understand what the President meant by his statement concerning "group and sectional interests."
"The record is that Congress has appropriated less than the Budget has
recommended for the last two years," he said.
Senator Borah declared, however, that he favored saving wherever
possible against such special interests.
He added that he was willing to "forego the $90,000,000 naval building
program" in the interest of economy, and that he opposed unsuccessfully
the $30,000,000 appropriation for remodeling three battleships passed
last session.
"Frankly, I have no idea what the President has reference to," Senator Borah said, "but if he has in mind the veterans' bonus loan, then I
agree with him."
According to the New York "Times" Washington dispatch March 3, Republican Senators, including Senator
Watson,the floor leader, and Senator Jones of Washington,
Chairman of the Appropriations Committee, immediately
pledged their efforts to keep taxes down, and declared
that by co-operation between Congress and the President
new taxation can be avoided. Short-term borrowing can
be resorted to to tide over in an emergency, the Senators
said.
It was noted in the same paper:
During March the Government has suffered the severest drop in
revenue in any year since the World War. For the fiscal year, through
Senator Reed Sees No Need for Increase in Taxes—
Charges Deficit in Treasury Funds Due to Farm
Board Loans and Loans to Veterans—Urges Sale
of Wheat Held by Board.
Talk of increased tax rates as a result of the Treasury
deficit was productive of further indications, on Mar. 27,
that the Government's fiscal policy will be one of the dominant issues in the next session of Congress. We quote from
the New York "Times", which, in a WaShington dispatch,
Mar. 27, also stated in part:
Declaring that the deficit was due to the fact that Congress was "too
cowardly to stand up against the demands of either the farm bloc or the
soldier bloc," Senator Reed of Pennsylvania stated his belief that ordinary
revenues under present rates should be sufficient to meet any fair demands
on the Government.
"I see no need of increasing rates of taxation," he said, "either income
taxes or estate taxes, if the coming Congress will oppose similar demands.
Our deficit this year will be about $750,000,000. Practically all of this
oames from the money lost through the Farm Board and the money loans
to veterans not in distress. The present tax rates will yield enough for all
ordinary expenses of government. If Congress will develop the courage
to say no, it will not need to increase rates.
Cannot "Manufacture Prosperity."
Congress, he said, has demonstrated that the Government cannot "artificially manufacture prosperity," and he assailed "indiscriminate Congressional handouts." . . .
The Senator advocated sale of the wheat held by the Farm Board, representing an estimated investment of about $275,000,000, for what it will
bring.
"If we had restricted our aid to the farmers to those in need of seed
loans because of the drouth, everyone would have approved," he said.
"If we had limited our loans to soldiers in distress, everyone would have
approved. We've been too cowardly to stand up against the demands of
either the farm bloc or the soldier bloc, and now we are going to pay
for our cowardice. During the next six months I expect to see most
politicians engaged in the edifying job of passing the buck."
Senator Reed, who is a member of the Finance Committee, has just
returned from a vacation in Bermuda.
Senator Walsh, Democrat, of Montana, is said to share Senator Reed's
belief that an increase in taxes should not be necessary. Representative
Frear of Wisconsin aligned himself with the group asking immediate
enactment of higher taxes in December unless conditions improve materially
in the meantime.
Representative Frear announced that he planned to resubmit his proposal
to raise surtaxes. His proposition, as attached to one of the proposed
bonus loan measures, was to add 6% to surtaxes on incomes in excess of
$500,000. He said to-day that he thought personal incomes could stand
Increases better than corporation incomes.
The Wisconsin Representative also favored Senator Norris's proposal to
assess high inheritance taxes but he pointed out that this would be impracticable as a revenue measure under laws which provide for the
refunding of as much as 80% of the total Federal taxes where State
inheritance taxes also are assessed on estates.
2502
FINANCIAL CHRONICLE
Senator McKellar's Comment on President Hoover's Statement Regarding Taxes.
On April 1, Senator McKellar, Democrat, of Tennessee,
called President Hoover's statement of the previous day,
in which he said there will be no Federal tax increase if
Congress adheres to Administration policies "an unwarranted attack upon Congress." Associated Press advices
from Memphis, April 1, reporting this, added:
[VOL. 132.
Department of Justice Seeks Dissolution of Sugar Institute,
Inc., Under Sherman Anti-Trust Act—Statement by
Institute's Counsel.
Dissolution of the Sugar Institute, Inc., and a permanent injunction against 50 corporations, firms and individuals associated with it, who are alleged to produce 98%
of the cane sugar consumed in the United States, is
sought by the Department of Justice in a petition under
the Sherman Anti-Trust Act filed March 30 in the United
States District Court in New York City.
The petition was filed by James Lawrence Fly and
Walter L. Rice, special assistants to Attorney General
William D. Mitchell. The Department's announcement
in the matter says:
"In view of Mr. Hoover's recommendations as to expenditures for the
present year in the last Congress, and in view of the action of Congress thereon, it is absolutely amazing that then Mr. Hoover would be inept enough, unmindful of the proprieties enough, so unfamiliar with the
facts, as to father an attack of that kind on Congress," the Senator said
in a statement issued here.
"The facts are that at the last session," the statement continued,
"Congress actually appropriated for the present year $27,785,701.07 less
than the President and his so-called budget system actually recommended
Dissolution of the Sugar Institute and permanent injunction against
the Congress to appropriate.
"The President denounces the Congress for its extravagance and calls 50 corporations, firms and individuals is asked by the Department of
Justice
in a petition under the Sherman Anti-trust Act filed in the
on the people to cooperate with him and with one another to urge Congress not to expend so much money. With his record there is no ex- United States District Court in New York City today.
The petition charges that during the last three years the defendants
cuse for his statement.
"It is an attack upon Congress that is unwarranted by the facts that have maintained a comprehensive scheme designed to fix oppressive and
prices of refined cane sugar, which is manufactured from raw
uniform
ought to have been in the President's possession, if they were not."
Senator McKellar called the President's statement "a very strongly sugar obtained in Cuba, Porto Rico, Hawaii, and the Philippines at
implied insinuation that Congress is controlled by group and sectional in- abnormally low prices.
The suit filed today is the culmination of extensive investigations
terests."
"I resent this implication," he said. "It is an unfair and unjust in- cOnducted by the Federal Trade Commission and the Department of
over the period of the past two years. The Government charges
Justice
sinuation."
that the consuming public has been required to pay large sums in exof what it otherwise would have paid for sugar, and the growers
Representative Longworth Believes New Taxes Can Be cess
and producers of raw sugar have received no benefit from the increased
Avoided—Views of Senators Fess, Jones and Others.
prices exacted.
Defendant cane refiners produce 851% of the sugar consumed in the
Expressing it as his firm opinion "that even with the
United States. The remaining 15% is produced by domestic beet-sugar
deficit very large this year we can avoid new taxes," Rep- refiners. The petition charges that defendants have induced beet refiners
resentative Longworth, Speaker of the House, on March to restrict their competitive activities, and that defendants have maintained the price of refined cane sugar at a level uniformly 20 cents per
22, said:
higher than the price of refined beet-sugar.
"I am hoping that reports of a gradual return of prosperity will be hundred-weight
A brief code outlining certain proposed activities on the part of
followed by a big upturn before the end of the year and this will greatly
the Sugar Institute was submitted to the Department of Justice in 1928,
increase the government's revenues.
organized. The Department at that time reserved
"In order to avoid new taxes it would appear to me that it may be when the Institute was
the Department today that the most
necessary to reduce the amount applied to reduction of the public debt. liberty of action. It was said at
disclosed by this
This could be safely done if Treasury officials decide it is prudent. Of of the activities complained of in the petition were not
course, it is entirely too early to decide just what plan will be worked code, but were later developed.
out to avoid a tax increase. But those I have talked with are confident
From the "United States Daily" of March 31 we take
that a sound program can be evolved."
the following:
From Washington, March 22, the New York "Times"
said in part:
Republicans Seek Remedy.
The few Republican leaders who are here, including Senator Watson,
Representative Hawley, chairman of the House Ways and Means Committee, and Representative Snell, chairman of the Rules Committee,
see that the government must take some action if the mounting deficit for
1931 is not to be followed by another large deficit in the fiscal year 1932.
Their comments have made it evident that they will oppose tax rate
increases in the next Congress.
If tax increases were made, they would come on the eve of a national
campaign, which they are naturally anxious to avoid because of the inevitable political effect.
The Washington correspondent of the New York "Journal of Commerce" on March 24 stated in part:
An increase in the Federal rates of income taxation two years hence is
seen by Senator Simeon D. Fess (Rep.), Ohio, as inevitable unless the
conditions of business in the United States improve markedly in the
meantime. Asserting that to some the size of the probable deficit this
year is appalling, the Ohio Senator gave assurances, however, that there
would be no move at the next session of Congress to disturb the present
personal and corporate income tax rates.
Despite the current fiscal difficulties and the prospect of
another substantial Treasury deficit next year, Senator
Wesley L. Jones, of Washington, the chairman of the Senate Appropriations Committee, joined President Hoover
on April 1 in expressing confidence there would be no need
for the next session of Congress to increase taxes.
This is noted in the Washington account April 1 to the
New York "Herald Tribune," which also said in part:
Vigorously defending Congress against charges of extravagance, Mr.
Jones pointed out that, while expenditures were heavy in the last session,
they still were cut at the Capitol $27,000,000 below the figures approved
by the Bureau of the Budget. In a conference with Colonel J. Clawson
Roop, Director of the Budget, Mr. Jones urged the Bureau to practice
strict economy.
•
Senator Jones, who hastened to consult Colonel Roop today following
President Hoover's statement yesterday that there would be no necessity
for an increase in taxes if Congress held down appropriations, believes
it will be possible to keep the appropriations next session under the
$5,000,000,000 mark. In the last session, they soared above that figure,
but Senator Jones does not believe heavy emergency appropriations will
again be found necessary.
In the opinion of Senator Jones, it will not be necessary to make additional appropriations for the Farm Board. He pointed out also that the
sums allowed the board constitute a revolving fund and that by December
a large share of that fund which has been advanced to co-operatives will
be returned to the board.
While Congress will have to appropriate for public works already
authorized, Senator Jones does not look for an increase under this head.
As to appropriations for unemployment relief, he made no prediction.
He thought large appropriations for the veterans would be needed for
years to come.
Asked if he would favor higher estate or inheritance taxes, Mr. Jones
said:
"I am for an inheritance tax, but there does not seem to be much
sentiment for it now."
Purpose of Action
The action, states the petition, is brought "to prevent further restraints of inter-state trade and commerce contrary to the Act of Congress approved July 2, 1890, entitled 'An act to protect trade and commerce against unlawful restraints and monopolies' together with acts
amendatory thereof and supplemental thereto."
Members of the trade association in the sugar refining industry according to the petition, comprise all of the cane sugar refiners of the
United States who are engaged in importing raw cane sugar and converting it into refined cane sugar. "Said members refine more than
98% of the cane sugar and more than 85% of all granulated sugars consumed in the United States. They have produced approximately 5,000,000 tons of sugar yearly, having a value of more than one-half billion
dollars."
Since Jan. I, 1928, and for several months prior thereto, the defendants, "each well knowing all of the matters hereinbefore alleged, have
engaged in an unlawful combination and conspiracy to restrain, and
Pursuant thereto have actually restrained and are now restraining, the
aforesaid interstate and foreign trade and commerce in sugar by various
means and devices * * *" said the petition.
The petition charges that the defendants have created, maintained
and utilized the Institute as an instrumentality for promoting and
maintaining the alleged conspiracy; that a major part of these alleged
activities have been carried on through the Institute and have constituted its chief activities; that many of such activities have been
entirely outside of the scope of the announced purposes of its organization; and that other activities have been carried on independently of
the Institute.
"Defendants have agreed to establish and maintain and pursuant
thereto have concertedly established and maintained, enhanced, uniform,
and noncompetitive prices; uniform, noncompetitive, onerous, and oppressive terms, discounts, conditions, concessions and extra charges; and
uniform, artificial, and noncompetitive transportation charges," the petition continues.
Among other things it is charged that the defendants "concertedly
blacklist, boycott, and agree not to permit dealings with warehouse companies which violate any provision of the Code, or interference with
any agreements or activities herein alleged, or participate in any activity
tending to defeat the purposes of the conspiracy herein described."
Moreover, it is held "defendants have arbitrarily and concertedly blacklisted, boycotted, and restricted the use and number of warehouses."
Increased Margin of Profit Claimed.
Chiefly as the result of the alleged conspiracy, the Department charges
that the members of the Institute "have increased this gross margin of
profit (representing the difference between the cost of the delivered raw
products and the refiners' price for the delivered finished product)
during the operating of the conspiracy by more than 30%; the consuming public has been required by defendants to pay large sums in excess
of what it would have been required to pay for sugar in a market free
from the artificial restraints herein described; and the growers and producers of raw sugar have received no benefit from the increased prices
exacted by defendants.
"The American Sugar Refining Company and The National Sugar Refining Company of New Jersey, during the first year of the Institute's
existence, refined a total of approximately 46 per cent of the sugar
produced in the United States. The former increased its refining profits
during said period from $3,070,851.57 to $8,016,436.72, and the latter
enhanced its net earnings from $292,486 to $3,372,986. These increases
were in large part the results of the participation of these defendants in
the activities herein described."
The prayer in the case reads as follows:
APRIL 4 1931.]
FINANCIAL CHRONICLE
2503
"That writs of subpoena issue, directed to each defendant command- the Institute, said an answer would be.filed within the period, and issued
ing said defendant to appear herein and answer under oath the allega- the following statement:
tions contained in this petition and to abide by and perform such acts
"The organization of the Sugar Institute in 1927 was encouraged by
and decrees as the court may make in the premises;
the Department of Commerce, which then was urging the formation of
"That the combination, conspiracy, agreements and activities described trade associations in the nation's important industries. The Departin this petition be declared to constitute a conspiracy in restraint of in- ment of Justice approved the code of ethics under which the sugar interstate and foreign trade and commerce on the part of the defendants, dustry was to operate as an association of manufacturers. The Departand to be illegal and in violation of the act of Congress approved July 2, ment reserved the right to change its mind if operations under the code
1890, known as the Sherman Anti-Trust Act;
appeared to bring about an unlawful restraint of trade.
"That defendants be ordered and directed forthwith to dissolve and
"The Department now feels that such a restraint has been brought
forever discontinue the Institute;
about, and that the restraint is unlawful notwithstanding operations have
"That defendants and each of them and all of their respective officers, followed the code. I believe that no such restraint exists and that all
managers, agents, employes, and all persons acting or claiming to act actions of the Institute have been entirely lawful. However, if the Deon behalf of them, or any of them, be perpetually enjoined individually partment doubts this, the Institute will welcome a determination by the
and collectively from further engaging in, agreeing to perform, or in courts. Since its organization, the Institute has given the Department
fact performing, said conspiracy of like character or effect, or any of and the Federal Trade Commission full information as to all its activithe acts, agreements, understandings, or concert of action described in ties.
this petition;
"The cardinal principle of the code was elimination of oldtrade
"That the petitioner have such other, further general, and different abuses and unethical trade practices which resulted in unfair discriminarelief as the nature of the case may require and the court may deem tion between customers. To accomplish this it has been necessary to
proper in the premises.
require brokers, jobbers, transportation agencies, warehouse men and
"That the petitioner recover its costs."
others engaged in sale and distribution of sugar to deal ethically and
the principles of the code. Some of these have complained.
According to the New York "Times" the action is respect
"If some of the old and questionable forms of competition have disbrought against the following corporations and concerns, appeared,
the Institute contends that only those have gone which were
members of the institute, the Cuban-American Sugar essentially unfair and thus
unlawful and that the Institute was right in
Company being described as the parent of the Colonial abolishing them. The question as it appears to the Institute is whether
Sugar Company:
a great industry can police itself to elevate the conduct of its business
The American Sugar Refining Company.
to a high moral plane, if in so doing some old but unethical forms of
Margaret A. Jamison and Martha A. Jamison, doing business under competition are eliminated.
"The questions to be decided in this case are far-reaching, because
the firm name and style of Arbuckle Bros.
they concern many other great industries which have adopted the code of
California and Hawaiian Sugar Refining Corp., Ltd.
the sugar industry for the formation of trade associations. These assoThe Colonial Sugars Company.
ciations have all brought about better conditions in their industry by
Cuban-American Sugar Company.
adherence to the principles of the Institute's code."
Godchaux Sugars, Inc.
William Henderson, Hunt Henderson, Christ Gamble, and Fred
Post Also Issues Statement.
Henderson
Gamble, doing business under the firm name and style of
James H. Post, president of the Institute, through Mr. Cummings'
Sugar Refinery,
office, also issued a statement in which he said:
Imperial Sugar Company.
"Pending final decision by the courts as to its status, the Institute will
W. J. McCahan Sugar Refining and Molasses Company.
The National Sugar Refining Company of New Jersey.
continue under advice of its counsel its activities as it has in the past,
Pennsylvania Sugar Company.
believing that all of these activities are legal and that they are of benefit to the public as well as to the sugar refining industry and the disRevere Sugar Refinery.
Savannah Sugar Refining Corporation.
tributing trade.
Spreckels Sugar Corporation.
"The Institute, now in its fourth year and embracing all cane sugar
Corporation.
Texas Sugar Refining
refiners of the United States, operates under a code of ethics. Its carJ. D. and A. B. Spreckels Securities Company, doing business un- dinal principle is that sugar should be sold by refiners upon open prices
der the trade name of Western Sugar Refinery.
and terms publicly announced and without discrimination between buyers.
Individuals Named in Suit.
"In upholding this and other principles of its code, the Institute has
The following individuals, said in the petition to have been active in successfully sought to eliminate trade abuses and unsound practices
the management of the institute and in the direction of the activities de- that were against the real interests both of all elements of the sugar
scribed, were named as defendants:
industry and the consumer. The Institute has also undertaken research
J. F. ABBOTT, director of the Institute and president of American work at the Mellon Institute to find industrial uses for sugar, and for
Sugar Refining Company.
three years has conducted a large advertising campaign under scientific
EARL D. BABST, honorary president of the Institute and chairman of direction, to explain the food value of sugar.
the board of directors of American Sugar Refining Company.
"All action of the Institute has been under direct advice of counsel
W. EDWARD FOSTER, director of the Institute and vice chairman of who sit with its committees. The Institute welcomes the opportunity of
the board of directors of the American Sugar Refining Company.
having the courts determine finally the correctness of the course which
J. P. CODY, sales manager of Arbuckle Brothers.
it has followed in good faith."
M. E. GOETZINGER, secretary, member of the executive committee
and director of the Institute and general manager of Arbuckle Brothers.
Reduction in Sugar Cane Duty Sought
GEORGE M. ROLPH, director of the Institute and president of California and Hawaiian Sugar Refining Corporation.
An Associated Press despatch from Washington, March
WILLIAM B. TYLER, director of the Institute and officer of California
27, stated that a reduction of the duty on sugar cane in
and Hawaiian Sugar Refining Corporation, Ltd.
C. B. NEWMAN, sales manager, Colonial Sugars Company.
its natural state was sought on March 27 by the South
GEORGE E. KEISER, director of the institute and president Colonial Porto Rico Sugar Company of Jersey City, N. J., in an
Sugars Company.
JACOB MOOG, director and member of the executive committee of the application to the Tariff Commission.
Institute and senior vice president of Godchaux Sugars, Inc.
I. H. KEMPNER, director of the Institute and president of Imperial
Sugar Company.
Chairman Caraway of Senate Lobby Committee Postpones
HARRY G. THOMPSON, director of the Institute and sales manager
Inquiry Into $100,000 Sugar Payment
of Imperial Sugar Company.
LOUIS V. PLACE, director of the Institute and vice president of W.
The investigation by the Senate Lobby Committee into
j. McCahan Sugar Refining and Molasses Company.
MANUEL E. RIONDA, treasurer of the Institute and president of W. charges that an unnamed Senator had received $100,000
J. McCahan Sugar Refining and Molasses Company.
for work on behalf of the sugar industry during the
JAMES H. POST, chairman of the board of directors and president of framing of the tariff act of 1930 has
been postponed inthe Institute and president of National Sugar Refining Company, chairdefinitely, Chairman Caraway, Democrat, of Arkansas,
man of the board of Cuban-American Sugar Company.
CHARLES D. BRUYN, member of executive committee of the Institute announced on March 19, according to a Washington acand vice president of National Sugar Refining Company.
count in the New York "Times" from which the followWILLIAM H. HOODLESS, chairman of the board of directors and
member of executive committee of the Institute and vice president of ing is also taken:
Pennsylvania Sugar Company.
When these allegations were made public several weeks ago, Senator
HENRY E. WORCESTER, vice president, member of the executive Davis, Republican, of Pennsylvania, demanded that an investigation be
committee and director of the Institute and vice president of Revere made. Later he appeared before the session held by the committee and
Sugar Refinery.
explained that stock in a company manufacturing a by-product of sugar
BENJAMIN 0. SPRAGUE, director of the Institute and president of owned by him was purchased before tariff revision was considered.
Savannah Sugar Refining Corporation.
In conducting its inquiry, the committee retained John Holland, an
THOMAS OXNARD, director of the Institute and vice president of investigator, to go to Chicago and make inquiries, the nature of which
Savannah Sugar Refining Corporation.
have not been made public.
RUDOLPH SPRECKLES, director of the Institute and president of
Mr. Holland, who had been expected back in Washington yesterday,
Spreckels Sugar Corporation.
Senator Caraway said, sent a telegram asking for more time. Senator
of
director
the
Institute and vice president of Davis, who has remained here in anticipation of an early resumption of
W. W. HARPER,
Spreckels Sugar Corporation.
the hearing, will leave shortly for a visit to California.
EDGAR H. STONE, director of the Institute and director of Spreckels
Sugar Corporation.
ALEXANDER SMITH, director of the Institute and president of
Netherland East Indies Passes Sugar Export Restriction
Texas Sugar Refining Corporation.
H. B. MOORE, director of the Institute and vice president and genOrdinance.
eral manager of Texas Sugar Refining Corporaticn.
Governmental restrictions of exports of sugar from the
FRANK E. SULLIVAN, vice president and director of the Institute
and president of Western Sugar Refinery.
Netherland East Indies, on a quota basis to individual
FRED G. TAYLOR, executive vice secretary of the Institute.
an
ordinance passed
producers, has been authorized by
From the March 31 issue of the "Times" we also take by the
"Volksraad" (People's Council) of that colony on
the following:
March 18, 1931, according to a cablegram from Trade
Counsel Issues Statement.
Answers to the charges must be filed with the government within Commissioner Richard P. Hendren at Batavia. This meastwenty days. Wilbur L. Cummings of Sullivan & Cromwell, counsel for ure became effective on April 1.
2504
FINANCIAL CHRONICLE
Guaranty Trust Co. of New York on Increase in State
and Local Expenditures and Tendency to Divert
Public Funds to Social Service.
"The country over, in both municipalities and States,
this tendency to appropriate public funds for social services
seems to be spreading," says the March 30 issue of the
"Guaranty Survey," published by the Guaranty Trust Co.
of New York. It goes on to say:
[VOL. 132.
resulting in an average annual increase in governmental indebtedness of
nearly $1.500.000,000, notwithstanding the steady decrease in the debt
of the Federal Government. Now, partly because of lower revenues due
to business depression and partly because of the huge appropriations of
the last Congress, chiefly for loans to veterans, the Federal Government
has taken its place with State and local governments on the side of larger
expenditures, greater borrowing and higher taxes.
Problem Not Wholly Economic.
The problem ofrising public expenditures has many ramifications,social,
political and economic; and it cannot be resolved into any single set of factors. In part, the increasing cost of government can be attributed to the
growth of the country, the expansion of national income and the desire of
the public for higher standards of community life. To this extent, it is
no problem at all, but rather a cause for satisfaction. Unfortunately,
there are signs of other influences at work. In some cases sheer extravagance and corruption seem to lie at the root of the trouble. In other cases,
the expenditures have been devoted to purposes worthy in themselves
but have been carried to such lengths that the ability of governments to
redeem their obligations has been called into question and their credit
seriously impaired. In many instances, a premium is placed on extravagance by the taxation ofsome groups for the benefit ofother more politically
powerful groups. In general, there seems to be a trend toward paternalism
in the attitude of governments.and a tendency to look upon public officials
as the supernaturally endowed custodians and guarantors of prosperity,
comfort, health, morals and general welfare.
The question, therefore, has a wide variety of political and social aspects.
But its economic meaning is clear and unmistakable. Public agencies
are absorbing a large and increasing proportion of the national income, and
the prospect is that their expenditures will increase further as they get
more deeply into debt. There seems to be only an imperfect realization
on the part of the people, or of their elected representatives, that public
funds come almost entirely from the pockets of the taxpayers; that every
increase in the cost of government must take it toll, either now or later,
in higher taxation;and that there is no mysterioussource ofrevenue whereby
the people can be supplied with governmental services without paying for
them. If the people wish to delegate public officials to spend their incomes
for them, they have a perfect right to do so. But they should realize that,
in so far as they transfer this function to others, they necessarily forego
the privilege of exercising it themselves.
The old age pension laws recently passed in some States and agitated
in others are excellent cases in point, although many other examples might
be cited to show the tendency of public bodies to enter new spheres of
activity, as well as to expand their operations in fields they have occupied
in the past.
With the exception of the venturts of the Federal Government into shipping and railroading, which were directly due to the World War, and the
more recent experiment in agricultural marketing, the encroachments of
public agencies on new fields of operations thus far represent primarily
a political and social, rather than an economic, problem. In actual magnitude, the expenditures entailed by such new activities are far exceeded
by those incurred for purposes that have long been recognized as legitimate
public functions. Among these, the most important are education and
highway construction. The former is so essential to public welfare, and
even to good government, that Increasing expenditures for this purpose
must, in the main, be approved, although many cases can undoubtedly be
found where extravagance and corruption exist and where State and local
governments have over-stepped the bounds of safety in taxation and
borrowing.
Road building, like the expansion of educational facilities, is generally
recognized as a necessary public function under modern conditions. The
revolution in transportation that has taken place in recent years through
the use of motor vehicles would have been impossible without huge investments in roads. It is only in cases where State and local governments
have gone so far in this direction as to impose unduly heavy present or
future tax burdens that criticism is justified. Unfortunately, there is
strong evidence to support the view that safe limits have frequently been
exceeded. One striking example was recently witnessed in a State where
a new bond issue was under debate in the Legislature. The Governor
warned the members of the legislative body that the State had reached the
limit of its bonding power and that bonds previously authorized were still Daniel Willard of Baltimore & Ohio IL R. Views a Changunsold in the hands of bankers. He was supported by the Comptroller,
ing World--Before Wharton School Discusses Probwho submitted a statement showing that the State Government faces the
lem of Unemployment and Distribution of Resources
necessity of paying interest of from 434 to 5% on a total indebtedness of
more than $130,000,000. The total revenue from the population of 1,800,—Capitalistic System Despite Defects Affords Fairest
000 for 1929-30 was only $22,414,721, and more than half of this amount
Basis on Which to Build Economic Structure.
was produced by gasoline and automobile taxes. Out of every dollar of
this revenue, 743i cents was devoted to highways, 1234 cents to schools,
Before the Wharton School of Finance and Commerce
cents to charities. 1 cent to prisons, and 3 cents
7 cents to pensions, 1
of the University of Pennsylv.ania, Daniel Willard, Presito all other agencies.
dent of the Baltimore & Ohio R. R. discussed the period
Redistribution of Public Funds.
A somewhat similar warning was recently voiced by the Governor of of changing conditions in which we are living, and the
New York State, who declared in a public address that laxity, corruption problem converging on the capitalistic system. A system
and financial wastefulness had been shown by city, county, town and
State governments. He criticized particularly the indirect taxes and the said President Willard, "under which it is possible for
principle by which taxes are collected by the State and distributed to local 5,000,000 or 6,000,000 of willing and able-bodied men to
governments, whereby both the true source of the tax and the final purposes
be out of work and unable to secure work for months at
of expenditure are concealed. "If the present rate of expenditures of local
governments continues as it has for the next 10 years," he said, "there a time ... can be said to have failed in at least one very
are going to be a great number of bankrupt communities in the State." important detail." "With all its defects and doubtless
In connection with the redistribution of tax revenues, it is interesting to
there are many" the speaker observed "the capitalistic
note that the same problem is encountered in an extreme form in the
finances of the Federal Government. In 1930, the people of Now York system, in my opinion, affords a better and fairer basis
State paid nearly 30% of the Federal internal revenue received during the upon which to build an economic structure than any other
year. New York, Pennsylvania, Massachusetts and North Carolina
devised." Mr. Willard spoke upon the ocpaid more than one-half of the total. Yet 25 States with less than one- system so far
quarter of the population of the country have a voting majority in the casion of the fiftieth anniversary of the Wharton School,
United States Senate. The result is that there are six States which draw at which time he received the honorary degree of Doctor
from the Federal Treasury $2 for every dollar paid in. Two States draw
Rowe, Director General of
more than $3 for every dollar they contribute, while Now York derives of Laws as did also Dr. Leo S.
In part Mr. Willard spoke as
less than one cent for every dollar paid. The dangers inherent in such a the Pan American Union.
situation are obvious, and these dangers exist not only in the collection
follows:
and distribution of Federal revenues, but in every State where some localities
The object of the Wharton School, if I have not misunderstood its
receive the benefits from funds derived from others.
equip young men for their careers, not only as
In the last Congress, there seemed to be an intention on the part of purpose, is to train and
world, but also as citizens of the United States.
those who pay small Federal taxes to divert the funds of those who pay members of the business
What are the opportunities today in terms of problems to be solved,
heavily to serve local and political purposes, without regard to the farWharton School of Finance and Commerce, faculty
reaching and disastrous economic results that such a policy is likely to which confront the
the beginning of the second half century of its
bring about. Under such a system, where a legislative majority is able and students alike, at
same as fifty years ago, or have they also
to exploit a minority, a direct premium is placed on deliberate governmental existence? Are they the
changeful period in the entire history of manwastefulness. With the continued growth of Government bureaus and changed during the most
only changed, but others entirely new and
Federal expenditures for social services of various sorts, as well as the kind? They have not
ago now await and urgently demand
serious attempts to inject the Government into business operations, business wholly unforeseen fifty years
solution.
faces a menace that must be given serious consideration. . .
I have just said that new problems, such as I think fall within the
The steady increase in public expenditures in recent years is shown by
demand solution. Perhaps that statement
the chart on page 8 [this we omit—Ed.], which is based on figures compiled scope of Wharton's activities,
some of the problems which I have in mind
by the National Industrial Conference Board. The contrast between the is not literally true; possibly
a potential sense fifty years ago, but in any
trend of Federal expenditures and that of State and local costs were present, at least, in
so clearly as today within the field
is conspicuous. It should be noted, however, that the greater relative event, they had not at that time come
increase in State than an local costs does not imply that the former are of human consciousness.
frequently
that
we are living in a period o$
We cannct recall too
primarily responsible for the increase in the total. On the contrary, it is
When
the rise in expenditures of local governments that is the principal factor. changing conditions, such as has probably never before existed.
accepted genThis point is illustrated in the table below, in which the totals are reduced I was a boy it seemed to me at least—and it seemed to be
erally by others—that most, if not all, of our fundamental institutions
to per capita figures.
had been definitely determined and fixed for all time—how, I did not
Per Capita Cost of Government in the United States.
know, but at any rate fixed beyond discussion, almost beyond question.
1923.
1927.
1928.
I have in mind, among others, matters such as the following: The
$35.11
$34.30
$33.08 superiority of our form of government, the status of the Bible as our
Federal
11.22
13.96
15.22 rule and guide of life, the place and authority of religion, the so-called
State
46.41
54.41
56.77 capitalistic system, based upon the right of private ownership of
Local
property, the marriage contract, which is the basis of our family life,
$92.74
$102.67
$105.07 the cadendar and the number of months in the year. I repeat—fifty
Total
settled. Now
Although the proportional increase in State expenditures is greater than years ago these questions were generally considered as
less surely
that in the expenditures of local governments, the absolute increase in all these are under attack and all are slowly but none the
which may
reassessment
of
the former during the period under consideration was only $4 per capita, going through a process of questioning and
leave them better or worse, but will certainly mean modification wherewhereas in the latter it was more than $10 per capita.
that
The financial burden represented by these expenditures can be appreciated ever and whenever it is believed by the majority of those affected
by considering that the cost of government in 1928 was nearly one-sixth change or modification will promote the best interests of humanity.
or
foreforesee
to
enough
of the national income. One day's labor in each week for the entire popula- What the result of it all will be no one is wise
tell at the present time.
tion of the country was contributed to the expenses of government.
I do not suggest that all of these problems of human relations fall
These increasing expenditures have been met partly by increased taxes
and partly by larger borrowing, which means higher taxes in the future. within the scope of VVharton's field of activities, but I do believe that
Total expenditures in recent years have consistently exceeded tax receipts, at least one of them does and that, too, in double measure, because it
APRIL 4 1931.]
FINANCIAL CHRONICLE
involves not only a question of economics in its broadest sense, but also
a question of government, and the founder of Wharton referred to
each of these questions as being within the scope of his vision.
The capitalistic system, which is the basis of our entire political and
economic structure, supplies the particular problem which I have in
mind. There are those who are unceasing in their efforts to discredit
it, to undermine it, to cripple it, to destroy it.
What are we who believe in it doing to uphold and protect it? I admit that those who seek
to destroy or displace it may be as honest and welhmeaning in their
intentions and beliefs as I think I am; even so, I believe they are
mistaken. With all its defects, and doubtless there are many, the
capitalistic system, in my opinion, affords a better and fairer basis upon
which to build an economic structure than any other system so far
devised and tested by man. Feeling as I do, I am deeply desirous that
it should be perpetuated in order that my children and their children shall
be given the opportunity of living under the same general conditions that
I have lived under, but made better and fairer wherever possible to do so.
We are deeply jealous of the good name of those we love. We should be
no less concerned in the welfare of the institutions under which we live.
We should be the first to recognize their defects and should seek untiringly to correct them. While, doubtless, there are many defects in
the capitalistic system, which is the basis of our political and economic
institutions, I shall refer to only two at this time.
A system—call it what you will—under which it is possible for five
or six millions of willing and able-bodied men to be out of work and
unable to secure work for months at a time, and with no other source
of income, cannot be said to be perfect or even satisfactory; on the
contrary, it can be said to have failed in at least one very important
detail. I can think of nothing more deplorable than the condition of a
man, able and anxious to work, but unable to secure work, with no
resources but his labor and, perhaps, with others even more helpless,
dependent upon him. Unless he is willing to starve and see those who
justly look to him for support also starve, his only alternative is to
seek charity and, failing in that, to steal. While I do not like to say
so, I would be less than candid if I did not say that in such circumstances I would steal before I would starve.
The unemployment problem is not new, nor is it confined to this
country, or even to times of general depression, but we have all come
to see more clearly than ever before that the mere existence of the
problem presents a serious challenge to our entire economic system.
While practically everyone agrees that the problem is a serious and
difficult one, no one apparently knows just how it ought to be solved; at
any rate, no one has yet announced a formula for its solution in such
clear and definite terms as to carry conviction—hence your opportunity.
First of all we must have the facts, and all of them. We must have a
clear statement of what the problem really is, and what it will probably
lead to if not corrected. This much having been done, and it has not
yet been done, the rest should not be difficult. It is not now the duty
of any one in particular to find the solution of this problem, but it is
the concern of all of us that the right solution should be found.
The second and the only other problem that I shall venture to discuss at this time is bound up closely with the first, and it may be indicated by the following statement: The United States is, perhaps, the
richest country in the world in natural and humanistic resources.
We have more coal, more oil, more copper, more iron and more standing timber than we will require, if prudently used, for many generations yet to come. We can produce more wheat, corn, oats, cotton and
animal products than we can possibly consume, and we are holding
millions of bushels of surplus wheat in elevators at government expense waiting for a market. We have a productive capacity in our mills
and factories far beyond our own domestic requirements, and at the
same time, and with all this surplus of wealth and resources, we have
millions, so it is said, in dire need of food and clothing—in short, more
of everything to eat and wear than we can possibly use, and at the
same time millions of human beings hungry and cold. That is another
problem, although closely related to the first, and the two problems together—unemployment and the distribution of resources—bring into
question the very foundations of that political and economic system
which the founder of this institution believed in and desired to perpetuate.
If I have understood the situation rightly, then it seems to me that
those two problems are clearly within the scope of your activities as
conceived by your founder. I judge, from a somewhat cursory reading of your schedule of studies, that your activities in the past have
fallen largely within the field of under-graduate work. The problems
I have suggested may, and probably will, lead into the field of research, and what is sometimes called graduate work, but no less will
they lead into the field of the technical expert and business executive.
If you should ask me to be more specific and to point out more definitely just what I think Wharton ought to do in line with this suggestion, I would reply that by means which you have, and along ways with
which you are familiar, you should first obtain the facts and seek at
the same time to develop a correct understanding and sympathetic attitude towards them. But you must not stop there; it is at this point
that your training at the Wharton school should be of the utmost importance, for you must correlate the facts you have established, and translate them into ideas which may, in turn, become the basis of action.
The facts have been there all the time; ascertaining them is only the
first step. An ascertained fact is of importance to the extent and only
to the extent that it can be made useful. It is here that the trained
mind, by setting facts to work, finds means of expression and makes
those contributions upon which our civilization depends.
It may develop that the solution for the unemployment problem, in
whole or in part, lies in more employment, or perhaps in a better distribution of employment. It may be that some form of unemployment
insurance is necessary, and it is possible that there may be some other
method of dealing with the situation as yet undiscovered, but which
will be revealed by your studies.
While the problems referred to are serious and pressing, it is doubtful if their final solution will be found in the immediate future, and
it is all the more desirable, therefore, that young men should be trained to
understand their importance and their ultimate implication. It is not
unlikely that the matter will be dealt with eventually by Congress. Who
are the men and where are they being trained who as law-makers or as
recognized experts will advise Congress concerning a matter of such
supreme importance? The answer to both questions, so it seems to
me, might be and should be in part at least—"Men trained in the
Wharton School of Finance and Commerce."
Finance and commerce, as carried on in the United States, and in
the greater part of the world as well, are based entirely upon the principles of the capitalistic system. Of what avail would be your studies
here concerning the details of that system if the system itself should
collapse? I do not fear its collapse, because I believe a way will be
2505
found to perfect and preserve it. What greater service could you of
Wharton render than by finding the correct solution of one or both of
the problems I have briefly discussed—employment and distribution of
resources—the very foundation stones of our economic structure?
The opportunity as well as the need of the Wharton School of Finance and Commerce, as I see it, was never greater than at the present
time. May those who direct and control its policies today be in every
way equal to the demands of the present, as in large measure they have
been in the past, to the end that the school, and those who go out from
it into the world of business, may be successful in carrying out the
purpose of the founder, thereby promoting the happiness of mankind.
I am confident that they will be.
Delaware, Lackawanna & Western R.R. Shops Change
From 3-Day-Week to 4-Day-Week.
Operations in the car and locomotive shops of the
Delaware, Lackawanna & Western Railroad, which have
been on a three-day-week basis, will be stepped up to a
four-day-week basis, effective immediately according to
the "Wall Street Journal" of March 30.
W. W. Atterbury, President of Pennsylvania RR., on
Advantges of Co-ordinated Transport.
According to W. W. Atterbury, President of the Pennsylvania RR., "the advantages of co-ordinated transport are so
great that its appeal to shippers and the general public
must prove irresistible. Laws and practices which bar the
railroads from bringing it to full fruition must," he added,
"inevitably yield to economic needs."
"With confidence in this outcome and the continued
growth and Industrialization of the country," said Mr.
Atterbury, "I consider the railroads' future, as general
transportation agencies providing any form of service which
any shipper or passenger desires, to be amply assured. The
years to come will give them more, not less, to do than in
the past." Mr. Atterbury spoke this before the Atlantic
States Shippers' Advisory Board, at a luncheon in the Hotel
Pennsylvania, New York City, on Mar. 27. In the course of
his remarks, Mr. Atterbury said "it may be of interest to
you to know that I am just now endeavoring to arrange
a series of conferences with leading truck manufacturers
so that officers of our awn company, including myself,
may discuss with them the problems of highway transport
and the railroads." He further said:
I am endeavoring to arrange similar conferences with leaders of the
oil industry so that we can talk over with them the bearing of pipe lines
upon transportation of oil and gasoline, and see whether we cannot work
out a program helpful and advantageous to both sides.
I think that the key to the solution of all these problems will be found
through fair and honest efforts of all concerned to reach conclusions by
frank and free discussion. Certainly I can think of no other means of
approach more likely to appeal to the public as fair and intelligent, or
better calculated to enlist the sympathetic co-operation of governmental
authority in this very necessary and important work of harmonizing our
agencies of transport and their uses.
Mr. Atterbury also mid in part:
I was requested, in coming here to-day, to discuss briefly the principles
underlying the statement issued in the latter part of 1930 by the Association of Railway Executives, and designated by the somewhat lengthy title,
"Declaration of Policy Deemed Necessary to Continuance of Adequate
Transportation Service to the Public." The statement covers nine printed
pages of highly condensed conclusions, with numerous statistics. I think
I can assume that all of you have read it, and that my own remarks
can be confined to a few brief observations.
In general, the declaration was well and favorably received by the
press and public, and interpreted for what it was intended to be, namely,
a plea for fair treatment and equalization of opportunities to the railroads.
Unfortunately, however, there was a tendency in some quarters to place
Interpretations upon it which I am certain do not represent the attitude
of the railroads, and it is important that these interpretations be corrected.
One of them was undoubtedly the result of a tendency to go beyond the
declaration itself and to read into it an intent which certainly was not
In the minds of its authors, or of those who joined in its ratification.
Briefly, under this regrettable viewpoint the declaration was taken to mean
that the railroads have been "hamstrung" by restrictive legislation thenselves for years and are now seeking to "hamstring" and cripple their
competitors.
I can speak with authority for the Pennsylvania RR., and I assure you,
without reservation, that this is not our attitude. I am not, of course,
an authorized spokesman for the railroads in general, but I have many
old and intimate friends among their executive and other officers, whose
attitude I know, and it is not their viewpoint either.
The situation is that the railroads—which are, and must long continue
to be, our most important means of transport—are highly regulated by
Federal authority, in many respects restrictively. Other forms of transport, including highway, waterway, airway and pipe line are not so
regulated, or only to minor degree. This introduces a discriminatory
situation and places the railroads at an unfair disadvantage in meeting
competition.
In addition, the Government is directly subsidizing transport upon
the inland waterways, and has barred the railroads from their use, though
it forces them to establish through rates with the Government barge lines,
thus short-hauling themselves.and cutting their own revenues.
To these conditions we must add the prohibitions of the Panama Canal
Act, which have practically driven the railroads from participating in
coastal, intercoastal, and Great Lakes shipping.
The country to-day has an abundance of transportation facilities. That
it will ultimately need and profitably use them all I have no doubt. The
2506
FINANCIAL CHRONICLE
most immediate requirement is to introduce order into the situation, check
wasteful competition and duplication, of service, and obviate the too rapid
creation of additional facilities in advance of the country's needs. This
Includes, among other things, effecting a proper degree of co-ordination
between our different agencies of transport, so that each may serve the
public best in its particular field, and freeing the railroads from the
discrimination which they now suffer by reason of unregulated and
subsidized competition.
These, as I see them, are the main purposes of the "Declaration of
Policy". In any event, they constitute our understanding of it on the
Pennsylvania RR.
Nothing is further from our intent or desire than to have highway, or
waterway, or any other form of transport, hampered, or its sound economic
growth interfered with, by restrictive or destructive regulation or excessive
taxation. The best evidence of our good faith that I can give in this
matter is that the Pennsylvania RR. and a number of other large systems
in the country have already invested heavily in facilities for highway
transport, in co-ordination with rail service.
Speaking for the Pennsylvania, I can say that we have every intention
of increasing our operations in this field, both for passengers and freight,
as rapidly as the remunerative market broadens. I am happy also to add
that most of our investments are profitable and are yielding satisfactory
returns, financially and otherwise.
Our entrance into the field of rail-air service, co-ordinating the airplane
with the train, is too well known to require more than mere mention at
this time. It places beyond possibility of question our attitude toward the
encouragement of commercial aviation.
The Pennsylvania has also invested in ocean shipping lines to foreign
ports, against which the prohibitions of the Panama Canal Act do not
apply.
As you all know, we and other railroads once had our lines upon the
Great Lakes, and we would like to have them again.
We would like to be free to try our hand at making transportation on
the inland waterways a paying business, which now, in the hands of the
Goverhment, it is not.
With reference to rail transport itself, considered apart from the other
agencies, we believe it is particularly essential for the protection of
railroad credit that the constant pressure against rates, which has resulted
in continuous attrition for the last 10 years, should cease. The users of
the railroads and the regulative bodies alike should join in protecting their
revenues until at least the 5%% return contemplated under the Transportation Act is realized.
To revert to the question of water transport, the only excuse that has
ever been offered for shutting the railroads out from the use of the
Panama Canal, the Great Lakes, the coastal and intercoastal trade and the
artificial inland waterways has been the cry that the public should be
protected against a monopoly of transportation in railroad hands. The
fallacy of this is placed beyond reasonable argument by the fact that the
regulative powers of the Government are unlimited, and with ample regulative authority there is no reason to fear monopoly. Furthermore, there
is no thought of ending the competition of railroad systems with each
other, even though they extend their service broadly into other fields.
It is needless for me to remind you that the provisions of the Transportation Act covering consolidations specifically call for the maintenance
of competition and the grouping of the railroads in such manner as to
ensure its preservation.
I might go further, however, and point out that in many other fields
of public service the people of the United States have shown no fear
whatever of genuine monopoly under regulation. The magnificent and
progressive telephone system of this country is an outstanding illustration,
as it is practically non-competitive within itself.
I am not advancing this as an argument for eliminating railroad competition, which J do not think is desirable now and perhaps may
never be. I am merely pointing out the fact that the monopoly cry against
railroads as a pretext for barring them from their natural destiny as
general transportation agencies has no sound basis.
Now a word as to the situation leading up to the "Declaration of
Policy". The Association's statement pointed out that in only one year
since 1920 was as much as 5% earned on railroad property investment,
while in the poorest year the return fell below 3%. More general attention
was probably attracted by the study of traffic trends. This showed that
in the 30 years from 1890 to 1920 railroad traffic, measured in ton and
passenger-miles, grew by decades as follows:
From 1890 to 1900 freight increased 86% and passenger 35%.
From 1900 to 1910 freight increased 80% and passenger 102%.
From 1910 to 1920 freight increased 62% and passenger 47%.
As against these sturdy rates of growth, in the nine-year period from
1920 to 1920 freight traffic increased less than 9%, while passenger
traffic decreased 34%.
These figures were prepared toward the close of 1930, when the year's
results were not' yet known. They have now become available (with a
slight degree of estimating in the case of freight), making it possible to
present a comparison for a full decade from 1920 instead of only a nine-year
period. The Bureau of Railway Economics has prepared this, at my
request, and its figures show that in the full 10-year period, 1920 to 1930,
freight and passenger traffic both decreased, the former more than 8%,
and the latter 43%.
It is, of course, true that 1930 was a year of extraordinary depression
for which proper allowance must be made. Yet the fact remains that
this is the first occasion in railroad history in which, over any 10-year
period, the volume of freight traffic has actually receded. The decrease
in passenger traffic is, of course, a continuance of a trend which has been
evident since 1920.
I do not call attention to these figures for the purpose of creating
apprehension as to the railroad future, nor do I so interpret them myself.
With the revival of industry, railroad traffic and earnings will recover
proportionately with general business.
What the figures do show, however, is that the public has developed
diversified tastes and desires with respect to the means of transportation;
and that the railroads, in order to .fulfill their mission in meeting the
requirements of the public, must be free to use any and all media of
service upon the same terms and conditions as apply to all other interests.
Governor Emmerson of Illinois Recommends Plan for
Creation of Division of Statistics and Research.
Barney Cohen, Director of the Illinois Department of
Labor, furnishes the following information concerning a
Proposal of Governor Emmerson:
[VOL. 132.
The need for a Division of Statistics and Research in the Illinois Department of Labor has been stated in an article previously published in "The
Labor Bulletin"." That article stressed the demand for business and labor
organizations for increased statistical information, the inadequacy of the
present statistical work of the Department, and the advantages to be
gained by centralizing and standardizing the entire statistical work of the
Department under a technically competent, adequately financed statistical
division.
The administration has now formulated in detail a plan setting up within
the Department a statistical division, clothing it with proper authority, and
providing it with funds and a trained personnel. This plan involves the
passage of two bills, recently submitted to the General Assembly. The
first of these, House Bill 362, creates the Division of Statistics and Research
within the Department of Labor and authorizes it to perform the statistical
work of the Department. The second, House Bill 399, appropriates funds
which will enable the new Division to carry out the duties delegated to it
by House Bill 362.
Governor Louis L. Emmerson has recommended the creation of this new
Division in his message to the General Assembly, and has approved both
House Bill 362, creating the Division, and House Bill 399, the general
appropriation bill of the Department, which provides the funds for the
Division.
House Bill 362 adds to Section 43 of the Civil Administrative Code,
which states the powers, rights and duties of the Department of Labor,
the following sentences:
"For the exercise of the powers vested in the Department of Labor by paragraphs
numbered 10 to 16, inclusive, of this section, there shall be a Division of Statistics
and Research, which, in the performance of such duties, shall supervise, direct,
set up and approve methods and standards of collecting, preparing, compiling
and reporting all material for statistical use in all divisions of the Departmentlof
Labor.
"In the performance of such duties, the Division of Statistics and Researceshall
have free and unhindered access to all records of all divisions of the Department
of Labor, for the purpose of collecting, collating, assorting, tabulating, classifying,
systematizing, reporting and diffusing statistical and other information as provided
by paragraphs numbered 10 to 16, inclusive, of this section."
Paragraphs 10 to 16 of Section 43, to which reference is made in this
bill, give the Department the following powers and duties:
"To collect, collate, assort, systematize and report statistical details relating to
all departments, of labor especially in its relation to commercial. Industrial, social,
educational and sanitary conditions, and to the permanent prosperity of the manufacturing and productive industries;
"To collect, collate, assort, systematize and report statistical details of the manufacturing industries and commerce of the State;
"To acquire and diffuse useful information on subjects connected with:labor:in
the most general and comprehensive sense of that word;
ie
ngith
"To acquire and diffuse among the people useful information oonerrnill"*
means of promoting the material, social, intellectual and moral prosperity of laboring men and women;
"To acquire information and report upon the general conditions, so far as production is concerned, of the leading industries of the State;
"To acquire and diffuse information as to the conditions of employment, and such
other facts as may be deemed of value to the industrial interests of the State: IN
"To acquire and diffuse information In relation to the prevention of accidents.
occupational diseases and other related sublects."
House Bill 362 has the endorsement and support of the administration,
of business and labor organizations, and of all persons who are interested
in the development of statistical work in Illinois. The bill was reported
out of the House Committee on Efficiency and Economy on Mar. 10, with
the recommendation that it be passed.
It is the purpose of this bill to provide improved statistical information,
for Illinois. At present, as in the past, each Division of the Department
attempts to prepare statistics concerning its Own work. No uniform statistical standards have been set up covering the whole Department, and no
co-ordination between Divisions exists. Many of the statistical functions
delegated to the Department by the Civil Administrative Code cannot now
be performed, as there is no statistical organization acting in the interests
of the Department as a whole.
Since the Industrial Commission is the only Division which now has
statistical machines and a technically trained statistical staff, the statistical
work of the other Divisions is costly and relatively inefficient. The passage
of House Bill 362, consolidating all Statistical work in a centralized statistical division, responsible to the Director of Labor, would improve the
quality of the work performed in the other Divisions, through the use of
trained statistical workers, would make it possible to use statistical
machinery for all statistical work, and, through the greater efficiency thus
attained, would permit the Department to provide additional statistical
Information as called for by the Civil Administrative Code.
The bill would provide the new statistical division with a permanent
status, protecting its work from interruption. This protection is of great
importance in statistical work, as many types of statistics are of no value
unless prepared regularly to form a continuous series. Employment
statistics furnish a good illustration of this point. Comparable monthly
reports must be available over a period of years, so that the current
employment situation may be compared to that of the past.
The bill would authorize trained statisticians in the new Division to
standardize all material for statistical use throughout the Department.
Such standardization is essential if statistical reports are to be comparable.
Statistics which are not comparable are misleading, and give rise to
erroneous conclusions which may cause much harm.
The bill would also assure the Division of Statistical and Research full
access, for statistical purposes, to all records in the Department of Labor,
In order that statistical reports may be compiled regularly for all divisions
of the Department.
Sufficient funds to enable the new Division to carry out its functions
have been provided in the appropriation bill of the Department of Labor
(House Bill 3991, recently introduced in the House and referred to the
House Committee on Appropriations. Since the new Division will take over
the entire statistical personnel of the Industrial Commission and will also
continue the types of statistical work now done by the Commission, the
necessary funds are to be secured by transferring the money previously
expended for statistical work by the Industrial Commission to the new
Division. The Division of Statistics and Research is therefore to be provided
for without increasing appreciably the present expenditure for statistical
work.
This plan for enlarging and improving the statistical work of the Department of Labor has practical value for the business men, the labor organization, the legislator, and the administrator. As Director of Labor, I feel
that the creation of the Division of Statistics and Research is one of the
most important needs of the Department. Therefore, I urge that House
Bills 362 and 399 be passed in order that such a Division may be set up
with proper authority and sufficient funds to enable it to do effective work.
" See the January 1931 issue, page 127.
APRIL 4 1931.]
FINANCIAL CHRONICLE
2507
not had the approval
Federal Control of Rail Holding Companies Urged— railway properties and which have
Commission.
the
of
House of Representatives Is Given Special InvesThirdly, it was recommended that the scope of the present
tigator's Report Suggesting Legislation to Broaden
under House Resolution No. 114 be extended
investigation
Powers of Inter-State Commerce Commission—Exhaustive Inquiry into Subject Advised—Chairman to include all holding companies engaged in inter-State
Parker of House Committee Says Reasonable Regu- commerce.
The full text of the recommendations, as reported in the
lation Is Needed Rather Than Destruction.
States Daily," with the comment made thereon
"United
"holding
Modification of existing law to include so-called
follows:
by
Splawn,
Dr.
companies" affiliated either directly or indirectly with
recommended for the consideration of the Committee.
respectfully
is
It
I.
juristhe
within
interstate
in
commerce,
railroads engaged
first, that paragraph (2) of Section 5 of the Inter-State Commerce Act, as
diction of the Inter-State Commerce Commission, was amended, be amended so as to bring within the jurisdiction of the
any acquisirecommended in a report to the Committee on Inter-State Inter-State Commerce Commission for approval or disapproval
tion of the control of a railroad which would result in bringing that road
and Foreign Commerce of the House of Representatives by into
of another
management
the
under
or
affiliation with, in control of,
Dr. Walter M. W. Splawn special counsel for the Com- railroad, whether the acquisition be by holding company or otherwise.
II. Second, that at the next session of the Congress the Committee shall
mittee, which was submitted the House of Representatives
give consideration to whether or not legislation is necessary to deal with
on Feb. 20 by Representative James S. Parker, chairman any
past acquisitions of railway properties, such as are disclosed in this
of the committee.
report, and which have not had the approval of the Inter-State Commerce
The report of Dr. Splawn, said to be the most complete Commission as being in the public interest.
III. Third, that the scope of the investigation authorized by House
official cataloguing of railway properties, corporate structures Resolution
114 be broadened to include all holding companies engaged in
of railroad companies, stock ownership, interlocking di- inter-State commerce.
Taking up these recommendations in order, It may be said that if pararectorates and financial activities of carrier companies ever
graph (2) of Section 5 of the Inter-State Commerce Act, as amended, were
attempted in the United States, covers 1,700 pages.
amended so as to require those seeking acquisition of control of railroads
Commission before
Addressing the House in presenting the report, Mr. Parker to obtain the approval of the Inter-State Commerce
acquisition were lawful, there would likely be in the future no further
said that it seems clear that Congress has the power to such
cause for complaint such as that made by the Commission to the Congress
correct any abuses and to remedy any evils of the holding in its annual report of 1929. If such an amendment be drawn, it should
it refers to acquisitions which will take place
company that may be brought to light by the investigation, be made clear that while amendment,
it would in no way give immunity
after the enactment of the
to
reasonable
company
holding
the
"to
subject
power
and
to anyone for a violation of existing laws by reason of any acquisition prior
regulation without being reduced to the necessity of destroy- to the effective date of the amendment.
Someone might suggest that such an amendment would merely be to close
ing it." The facts disclosed by the report, he said, "clearly
that
the stable door after the horse had been stolen. The obvious reply to
of
regulation
Congressional
of
the
efficacy
demonstrate
objection is that there are several stables and not all of the horses have yet
stables
the
of
doors
the
close
railroads."
been taken. It would appear sensible first to
before going in search of horses which have been removed.
Explaining that he was expressing only his own views still occupied
There are rumors of activities west of the Mississippi River analogous to
There
Mr.
that
Parker
said
and not speaking for the Committee,
those disclosed by the report as having transpired east of the river.
are causing some railthe activities which may be construed to impose a burden have been certain developments in the West which
for
way managements to seek new connections and additional affiliations
upon interstate commerce and which may interfere with their
roads.
congressional planning in the public interest have been "by
Recent Developments.
companies acting beyond the jurisdiction of the Commission
There are two outstanding recent developments which appear to have an
the
as
reach
of
without
that
jurisdiction
or at least as far
unsettling effect on the railroads in the West. These are, first, the acthe cunning of lawyers could contrive."
quisition of the Missouri-Pacific lines by the Van Sweringen interests;
under the plan for four systems in the East to extend
"If these companies had unquestionably been subject to second, the proposal
those eastern systems to the Missouri River gateways. The near future
the Commission's jurisdiction," he continued, "I believe may bring other developments which may stimulate certain interests to
sections of the
there would have been less complaint of their activities seek control of railway properties in the West or in otherhappened
which
correct to conclude that all has already
not
is
It
country.
they
have
that
been
engaged
accusation
and less ground for
could take place in acquiring control of railroads without the approval of
in grab-as-grab-can contests."
the Commission.
It is suggested that consideration of whether or not legislation is necessary
Dr. Splawn's report on the "holding company" situation,
deal with past acquisitions of railroads without the Commission's apentitled "Report on the Constitutional Power of Congress to
proval may be deferred until the next session of the Congress. This for
to Regulate Stock Ownership in Railroads Engaged in two reasons; First, if such legislation should be found necessary the attempt
would provoke extensive hearings, and the difficult
Interstate Commerce," is the result of an extensive in- at its formulation
and delicate questions involved would require most careful and mature
vestigation into the entire subject of control of railroads deliberation. The second reason is that under the reported Proposal to
at
through stock ownership. The investigation included re- form four systems in eastern territory practically all the acquisitions
such legislation would be directed will be submitted to the Intersults of interrogations of several hundred investment trusts, which Commerce
the
for
Commission in connection with the applications
State
nearly 300 brokerage houses and of investment houses im- approval of four proposed systems. It is conceivable that as the result
by
examination
personal
legislation looking toward compelling divesture of
expert
financing,
railway
proceedings
of these
portant in
any particular interest where the Commission had not given its
accountants of the books and records of the most important control bywould
be made unnecessary. By the time the Congress convenes
approval
holding companies, and other data.
for themext session events will have doubtless transpired which will reveal
to
pursuant
undertaken
the
prowhether or not the Congress will have to increase the powers of the ComThe investigation was
mission with reference to past acquisitions of control about which the
visions of House Resolution 114, which authorized the Commission
has complained.
Committee on Inter-State and Foreign Commerce to inOther Activities.
capital
interest in any
vestigate ownership and control or
The third recommendation is made because the holding company as an
common carriers where such control or capital interest is
agency in inter-State commerce is not confined to railway transportation.
held by holding companies, investment trusts, corporations, In fact, the use of the holding company has been more varied in other fields.
of
associations and trusts, with a view to determine the effect Before deciding whether or not to regulate the holding company in certain
uses and (or) abuses in inter-State commerce, it seems that the comof such ownership and control on inter-State and foreign its
mittee should be fully informed as to the exact nature of this device, as to
commerce.
whether or not its uses vary from one line of business activity to another
The resolution resulted from recommendations made to and as to what are its economic advantages and disadvantages with respect
each character of business in which it is used.
Congress by the Inter-State Commerce Commission in 1929 toThe
United States Senate, through the Federal Trade Commission, is
in its 43rd annual report, which expressed the fear that conducting an extensive investigation in the public utility field including
perhaps
control of railroads through stock ownership by holding the holding company, as there used. That investigation will run that
ina period of three years. The vast quantities of data which
companies might jeopardize the plan for railroad consoli- for
vestigation has accumulated should be analyzed by this committee in
dation, since the Commission, under existing law, was with- connection with the data contained in this report, just as the Senate Comthis report analyzed in connection
out power to control the holding companies. Congress was mittee will, no doubt, have the data inCommission.
Then the Committee
with
finding of the Federal Trade
asked to enact legislation broadening the Commission's wouldthe
find it most helpful to add, to the findings contained in this report
powers to include holding companies involved in the railroad and to those which would result from its analysis of the data accumulated
by the Federal Trade Commission, other searches of holding company
situation.
use and (or) abuse in business other than railway and public utility.
Three recommendations were made in the Splawn report,
If Federal regulation of the holding company is necessary, the reasons
the first being to amend the "acquisition of control" pro- for that necessity should be clear, the evils to be remedied should be apparent, and the scope and the limits of desired and possible Federal control
vision of the Inter-State Commerce Act, so as to make it should
be clearly set forth. Necessary protection should be afforded, in
mandatory for a railroad to secure Inter-State Commerce so far as it is possible under Federal regulation, to those who would otherCommission authority to acquire control of another railroad, wise suffer without interfering with or placing undue burdens upon legitimate and desirable business activity. Formulation of such legislation will
"whether the acquisition be by holding company or other- require
a comprehensive and prolonged study by this Committee as
wise."
preparation for the extensive hearings.
In
something should be said about the co-operation and labor
conclusion
at
that
the
was
next
session
The second recommendation
which have gone into making this report and the attitude of those
have
of Congress consideration be given to whether or not leg- been called upon for information. While the Committee has who
expended
past
any
with
deal
of
to
necessary
acquisitions
the
is
in
of
preparation
something less than $50,000
islation
this report, it has cost
2508
FINANCIAL CHRONICLE
the companies investigated in the aggregate several times that amount.
Employees of companies have worked from a few hours in some instances
to several weeks in other instances. Sometimes a large number of employees
would be required to assemble the information called for. This vast outlay
of energy has been made without complaint. The Committee has not found
It necessary to issue a subpoena. The reason for this co-operation on the
part of those who have been called upon for information is to be found;
First, in the broad powers given to the Committee by the House of Representatives under House Resolution 114. Second, because it is understood
that the Committee, though fair, is determined to know the facts. Third,
because of the unfailing firmness shown by the chairman. Fourth, the
fact that the high officials and leaders of a number of the most important
companies took the attitude that if the activities of their companies were
impressed with the public interest and if a revelation of their doings would
be of assistance to the Congress in dealing with problems of legislation,
full disclosures should be made. As a result of this attitude, examiners
were given ready access to the files and records of individual companies.
Text of Comments.
[Vol,.
!.
plated a looser form of unification as an intermediary step. Since it Is more
than likely that when once the railways of this country are completely
merged into final consolidations they will remain merged, it appears desirable that the Congress for some time should continue the provision for the
looser form of combination offered by the holding company.
There are three reasons for believing that under certain conditions the
pure holding company is preferable to the operating company as a basis of
railway consolidation:
First, the advantage of a more symmetrical type of managerial organization.
Second, the advantage of a more effective financial plan.
Third, the adaptability of the holding company for the control of constituent companies within the system, subsidiary to or affiliated with the
operation of railroads.
The most important of these advantages appears to be the second. It
seems inadvisable to burden an operating company with issues of securities.
the purpose of which would not be to finance its own property but simply
to obtain control of other properties in different parts of the country.
Through the holding company the burden of the quasi fixed charge may be
spread more evenly over the entire system instead of being concentrated in
one operating company. Then, too, if the holding company fails, the credit
of the constituent members of the system would not be so adversely affected.
The comment contained in the Splawn report relative to
the constitutional power of Congress to regulate stock
ownership in the railroads, and that part of the report on
The New York "Times" in reporting the matter says in
the question of whether or not rail holding companies
should be outlawed, as reported in the "United States Daily", part:
Lists Van Sweringen Companies.
follows:
This report is to the following effect:
First, Federal incorporation offers but little as a solution of the problem
of regulation of stock ownership in railroads engaged in inter-State commerce.
Second, very little can be hoped for from Federal regulation of interState transactions in corporate securities.
Third, the investigation of ownership of securities of inter-State carriers
as engaging in inter-State Commerce reveals—
(a) Speaking generally, the most that can be said with confidence is:
Ownership of a large amount or a majority of the stock of a corporation
does not alone reduce the subsidiary to where its personality will be ignored.
How.much dictation and interference from above, and how much blurring
of the business and actions is necessary in order to make the subsidiary
"a mere adjunct" depends on the court and the kind of case before it.
(b) The courts themselves have gone beyond the single step of looking
through the evasive corporation, and have dealt with the ultimate dominant
Interest. There would seem to be no legal reason why the scrutiny should
not be carried as far as the thread of that dominant interest can be traced.
Fourth, it is believed that the very confusion and conflict in the judicial
decision on the subject of disregard of corporations as separate entities is
itself a strong reason why courts wM be inclined to accept a definite rule
embodying that principle, and perhaps even extending it for their further
guidance.
Stock Ownership Question.
The report takes up the subject of holding companies as a factor in the
ownership and control of railroads and gives a listing of the companies
themselves, their ownership and their interlocking interests. It lists 32
corporations as Van Sweringen holding companies, naming as those not
subject to railroad control the Allegheny Corp., the Geneva Corp. and the
Chesapeake Corp. The report says;
"The list of holding companies not themselves members of the railroad
family is not extensive, but it includes several companies which control, or
substantially control, vast networks of railroad lines.
"A majority of the companies treated are of recent origin and owe their
organization to a number of factors. Some, however, such as the Atlantic
Coast Line Co., the Lehigh Coal & Navigation Co. and one or two of the
smaller companies are deeply rooted in the past, and the special considerations which contribute to the organization of holding companies to-day do
not go far to explain their organization.
"Thus the older companies issued no non-voting stocks, the only nonvoting capital at their disposal being that raised through the issuance of
funded debt or other obligations.
Gives Reasons for Organizations.
"Leaving for discussion elsewhere the Van Sweringen holding companies,
It may be said that the remainder of the companies which have been organized in recent years owe their organizations to;
"(1) An effort to secure control of properties with relatively smaller
contributions of capital than would otherwise be necessary, as by means
Fifth, it is believed that stock ownership may be an interference with or of successive issues of stock, much of it without voting power, and the issuan obstruction to the exercise by Congress of its power to regulate inter- ance of bonds secured by pledged stock.
state commerce, as it has now undertaken to do. It is also believed that
"(2) A desire to secure freedom of action with respect to the issuance of
the Northern Securities case neither purported to limit the right of Congress securities and the acquisition of properties beyond the control of the prounder appropriate legislation to unify the lines to which unification was visions of the transportation act of 1920.
then denied, nor does the case as now understood have that effect.
"(3) A desire to take advantage of the corporation laws of certain States.
Sixth, since the burden of proof in a civil action can be put wherever the
"(4) A desire to make more convenient the holding of large persona
Legislature chooses to put it, an applicant to acquire control of a railroad fortunes
or the interests represented by an estate.
can be required to satisfy tne Commission affirmatively that his proposal
"
(5) To considerations more commonly associated with holding comis in the public interest. A statute could thereby effectually block any
panies
in
the public utility field. A considerable number of the companies
balancing influences and evasions of the congressional plans attempted
by the use of large families of corporations with complicated relationship. which have been considered have issued non-voting preferred stock, and in
Seventh, if the policy of an act warrants interference with stock owner- several instances a holding company is itself controlled by one or more
ship at all, there is ground for believing that it may put restraints on indivi- holding companies."
duals in that regard.
Further Study Is Urged.
(a) If a contemplated statute prohibited future acquisition of railroad
"By way of conclusion," the report added, "it may be suggested that
stock in certain lines by certain classes of persons except on approval by matters herein analyzed which merit further attention are:
the Commission it might prohibit without like approval tne holding after
"(1) The activities of holding companies whose purpose's are to defeat
a fixed date of stocks lawfully acquired under present law.
the plan of regulation—control of unification of properties, control of
(b) Congress has recognized in the Clayton Act that voting may be an capitalization, &c.—prescribed in the transportation act of 1920.
offense when passive stock ownership for investment is not.
"(2) Whether any railroads are engaged in any activities too far afield
(c) It would appear that some tests of the public interest should be sped- from the business of transportation or in fields inconsistent with the comfled by the Congress.
mon carrier features of the railroad.
(d) Assuming a holding company to be sufficiently related to Inter-State
"(3) Whether by means of separate corporations the accounting and pubcommerce through its stock interests in railroads to justify congressional licity requirement of the inter-State Commerce act are being defeated.
regulation at all, the power to investigate and to require reports follows as
"(4) Whether a simplification of corporate structures would not be in the
a matter of course.
public interest, particularly in those numerous instances where the sub(e) The condemnation of stock interest is new ground in legislation, sidiaries appear to have outlived their usefulness."
and the present state of the authorities does not warrant prediction with
assurance that it will have final acceptance.
1929 Revenue $6,280,000,000.
Prof. Bonbright's Discussion.
Attention is here called to Prof. James C. Bonbright's discussion:
If the holding company were outlawed there would be left the following
devices for affecting railway unification: 1. The lease. 2. The merger.
3. The purchase of the controlling stock of one operating company by
another operating company.
The effectiveness of the third device might be greatly lessened by outlawing
the so-called pure holding company. By pure holding company is meant a
corporation which merely owns the securities of other corporations without
operating any business.
The lease may involve a fixed annual rental which the lessee company
must pay to the lessor company; or it may be more flexible and require an
annual rental based on the net earnings of the leased property. A lease
which carries an annualfixed charge imposes on the lessee company a definite
burden similar to the interest on bonded debt. It is difficult to obtain a
contract of the flexible type where annual rental is based on the net earnings
of the leased property because the stockholders of the lessor company will
usually refuse to surrender possession of their property to another company if their compensation is to be based on a mere share of the earnings
which their own property may develop under the outside management.
Again minority stockholders may feel that the leased property is being
operated primarily in the interest of the lessee and are apt to dispute the
calculation of the net earnings derived by the leased line. Then, too,
without stock ownership it is troublesome to finance improvements of the
leased property.
Consolidation Provision.
While the consolidation provision of the transportation act looked
ultimately to outright fusion as the permanent form of combination, the existence or paragraph (2) of section 5 indicates that the Congress contem-
Dealing with the ownership of American railroads, the report states that
on Dec. 31 1929, there were 160 Class I railroads in the United States.
operating 242,000 miles of road, with operating revenues for that year of
$6,280.000,000. On their stock registry books it stated there were 840.000
names and their gross capitalization approximated 823,000.000.000.
Thirteen of the companies with less than 3,300 miles in operation, the
report said, are controlled by industries, 32 with 47,000 miles have their
securities held in large part by one or more interests and 62 of the lines with
a total of 146,000 miles showed no marked concentration of ownership.
The following table shows the classification of Class I railroads according to
manner of control;
Per
Per Cent.
CornCent. of
Mileage
ponies.
Total.
Class—
Oper.
Owned or controlled by industry
8.8
13
1.36
18
11.32
Wholly or largely controlled by families
8.76
88
55.35
Owned or controlled by other railroads
33.21
Sees, held largely by one or more interests_ _ _ 18
11.32
13.62
No marked concentrated ownership
16
10.06
40.41
3.77
6
Investment syndicates, voting trusts, &c_ _ _
2.64
Total
159
100.00
100.00
Inclusion of the Van Sweringen interests in the group, represented as
controlled by an individual family, accounts for the large percentage of
mileage in this group.
14 Groups Control 85%•
With all the diversification of stock ownership, however, the report reveals
that 14 major groups now control 210,386 miles or nearly 85% of the total
railway mileage of Class I railroads in the entire United States. These
groups were set out as follows;
APRIL 4 1931.]
14 Major SystemsVan Sweringen companies
Great Northern-Northern Pacific
Pennsylvania
Southern Pacific
St.Louis-San Francisco
Atlantic Coast Line
Atchison,Topeka & Santa Fe
New York Central
Baltimore & Ohio
Chicago, Milwaukee, St. Paul & Pacific
Chicago & North Western
Union Pacific
Southern
Illinois Central
2509
FINANCIAL CHRONICLE
Road Mileage Southern & Florida; Mobile & Ohio; New Orleans & North Eastern; Northern
Operated.
Alabama; Southern Railway; Western Railway of Alabama (one-half
a28,631.20 interest).
b27,421.76
ILLINOIS CENTRAL.
c23,498.67
Central of Georgia; Gulf & Ship Island; Illinois Central; Western Railway
d14,484.96
e14,161.99 of Alabama (one-half interest); Yazoo & Mississippi Valley.
f13,989.10
ARTHUR CURTISS JAMES COMPANIES,
13,166.32
c13.006.07
Western Pacific; Denver & Rio Grande Western (half interest); Denver &
g11,269.69 Salt Lake (half Interest).
11,247.83
GULF, MOBILE & NORTHERN.
10,205.05
el0,157.11
Gulf, Mobile & Northern; New Orleans Great Northern,
h10,036.55
ST. LOUIS SOUTHWESTERN.
i9,109.70
St. Louis Southwestern; St. Louis Southwestern of Texas.
210.386.00
Total
Other Class I Companies (Independent)Seaboard Air Line
Arthur Curtiss James companies
Missouri-Kansas-Texas
Minn.& St. Louis (in receivership)
Maine Central
Gulf,Mobile & Northern
St. Louis Southwestern
Delaware & Hudson
Bangor & Aroostook
Green Bay & Western
Pittsburgh,Shawmut & Northern (in receivership)
Mississippi Central
Joint Between More Than Two RailroadsRich.,Fredericksburg & Pot
Lehigh & Hudson River
Subsidiaries of Canadian or Mexican railways(9 in number)
Industrially owned railroads(13 in number)
Railroads wholly or largely owned by an individual or family
(12in number)
Railroads controlled by voting trustees,&c.(5 in number)
Stocks Widely Held.
4,490.38
j3,845.69
3,188.57
1,627.80
1,121.43
1,010.61
1,002.12
881.42
619.37
232.34
198.26
150.06
117.59
96.60
7,120.91
3,282.87
3,750.92
1,890.88
a Includes 2,844.15 miles in which there is a half-interest. b Includes
367.19 miles in which there is a half-interest. c Includes 413.03 miles in
which there is a half-interest, and 140.96 miles in which there is a thirdinterest. d Includes 156.14 miles in which there is a half-interest. e Includes 271.86 miles in which there is a half-interest. f Includes 647.86
Includes 170.96 miles in which
miles in which there is a half-interest.
there is a third-interest, and 338.17 miles in which there is less than a halfinterest. h Includes 133.42 miles in which there is a half-interest. and
338.17 miles in which there is more than half-interest. i Includes 133.42
miles in which there is a half-interest. j Includes 2,793.91 miles in which
there is a half-interest.
15 Groups Classified.
Dr. Splawn's report contains a table showing the character of ownership
of voting securities of large Class I railroads, and added:
"It is clear from this table how very broadly held are the securities
of these 13 companies. The total number of stockholders, including duplications, ranges from 12,693 in the case of the smallest of the companies to
196.119 in the case of the Pennsylvania Railroad. The percentage of total
voting power held by the 30 largest holders of record ranges from only
4.56% in the case of the Pennsylvania to 30.12 in the case of the MissouriKansas-Texas.
"Even these percentages give a picture of concentration which does not
really exist,for literally hundreds and, in some cases, thousands of individual
accounts are represented by names, especially those of brokers and banks,
included among the 30 largest holders as shown on the railroads' books.
"In only one case does the thirtieth largest holder of record, considered
by himself, hold in excess of h' of 1% of the total voting power.
"The largest interest which has been identified holds in excess of 5%
of the total voting power in only one case, and generally the largest such
holding is less than 3%. In only six cases are there 10 or more holdings
of 10,000 shares or more each.
"At one time it was customary to speak of certain roads as Morgan,
Hill, Harriman, Gould or other properties. In considerable part such
designations rested on personal ownership, at least in the case of such of
these men as identified themselves solely with transportation enterprises.
"The tradition that certain men 'own' our railroads continues down
to date, despite the fact that even in the early days personal ownership
required supplementation from other sources to be effective and despite
the fact that, barring a few exceptional cases, a vast diffusion of ownership
has occurred in the course of the past two or three decades."
Banking House Holdings.
The holdings of voting securities of Class I railroads by large banks,
investment banking and brokerage houses follow;
Total Amount % of Total
VAN SWERINGENS.
Held.
Outstanding
Investment Bank(Par Value).
Stock.
Broker
&
Bank,
Beaumont, Sour Lake & Western; Chesapeake & Ohio; Chicago & J. P. Morgan & Co
$112,693,732
1.38
Eastern Illinois; Chicago & Erie; Chicago Great Western; Denver & Rio Paine, Webber & Co
71,461,296
.87
60,904,309
.74
Grande Western (one-half interest); Denver & Salt Lake (one-half interest); United States Trust of New York
36,180,365
.44
Co
Detroit & Toledo Shore Line (one-half interest); Erie; Hocking Valley; Kuhn,Loeb &York
& Trust Co
35,080,999
.43
Bank of New
International Great Northern; Kansas City Southern; Missouri-Illinois; Hayden,Stone & Co
20,327,750
.25
Missouri Pacific; New Orleans, Texas & Mexico; New Jersey & New York; Girard Trust Co
.25
20,145,379
14,017.027
.17
New York, Chicago & St. Louis; New York, Susquehanna & Western; Pere A.Iselin & Co
12,929,640
.16
Bros.& Co
Marquette; St. Louis. Brownsville & Mexico; San Antonia, Uvalde & Gulf; Brown
9,434,191
.12
Otis & Co
Texarkana & Fort Smith; Texas & Pacific; Wheeling & Lake Erie.
7,969,770
.10
Chatham-Phenix Natl.Bank & Trust Co
Lee, Higginson & Co
7,801,818
.10
GREAT NORTHERN-NORTHERN PACIFIC.
4,226,600
Kidder,Peabody & Co
.05
Guard,Trust Co.. Cleveland
2.644,000
.03
Chicago, Burlington & Quincy; Colorado & Southern; Fort Worth &
"On Dec. 31 1929, five large banks and trust companies and nine invest
Denver City; Great Northern; Northern Pacific; Quincy, Omaha & Kansas
City; Spokane, Portland & Seattle; Trinity & Brazos Valley (one-half ment banking or brokerage houses held in their possession $415,816,876
par value of the stock of Class I railroads, or 5.08% of the total outstanding
Interest).
voting securities of all such railroads," the report said. "The largest bank
PENNSYLVANIA RR. CO.
holding shown Is that of the United States Trust Co. of New York and the
Ann Arbor; Boston & Maine; Detroit, Toledo & Ironton; Lehigh Valley; largest holding of an investment banking house is that of J. P. Morgan &
Long Island; Monongahela (one-third interest); New York Connecting; Co. These represent 0.74 and 1.38%. respectively, of the total voting
New York, New Haven & Hartford; New York, Ontario & Western; securities of all Class I railroads, and, as will be indicated presently, do
Norfolk & Western; Pennsylvania Railroad; Pittsburgh & West Virginia; not indicate ownership."
Rutland Railroad (one-half interest); Wabash, West Jersey & Sea Shore.
The report also contained a list of directors of a number of railroads
showing small proportionate ownership in the roads whose destinies they
SOUTHERN PACIFIC.
helped to determine. Commenting on this phase of its discussion, the
Northwestern Pacific; San Diego & Arizona (one-half interest); Southern
report said:
Pacific Co.; Texas & New Orleans.
"This summary indicates that approximately one-third of the directors hold one to five directorships, that three-fifths of them hold from
ST. LOUIS-SAN FRANCISCO.
Chicago, Rock Island & Gulf; Chicago, Rock Island & Pacific; Fort 1 to 10 positions and that tavo-f:fths hold from 11 positions up.
"The cases which st..nd out in this connectit n are those of Charles HayWorth & Rio Grande; St. Louis-San Francisco; St. Louis-San Francisco
den, holder of 64 directorships; A. J. County and E. J. Derwin 47 positions
Ry. of Texas; Trinity & Brazos Valley.
each and W. A. Harriman 44 positions."
Asserting that in investigations of control it has generally been the cusATLANTIC COAST LINE.
Atlanta & West Point; Atlanta, Birmingham & Coast; Atlantic Coast tom to lean rather heavily on interlocking directorates as a line of evidence,
Line; Charleston & West Carolina; Chicago, Indianapolis & Louisville the report stated that the present study prompted the view that such
(one-half interest); Clinchfield, Virginian RR.; Louisville & Nashville; evidence can easily be overworked unless it is very exhaustively examined.
A comprehensive an:17,sis for every railroad of the interests which each
Nashville, Chattanooga & St. Louis.
director represents, and the significance of the presence of representatives
Of such interests, the report said, would be practically impossible.
ATCHISON, TOPEKA & SANTA FE.
"The directors or general officers of all Class I railroads," the report
Atchison, Topeka & Santa Fe; Gulf Colorado 8s Santa Fe; Panhandle &
continues, "are directors of 132 1 irger banks and trust companies (567
Santa Fe.
before
elimination of duplications caused by the same bank being reported
NEW YORK CENTRAL.
in more than one railroad return), a figure which may be compared with
Cleveland, Cincinnati, Chicago & St. Louis; Cincinnati Northern; the total of approximately 25,000 banks of all descriptions in the United
Delaware, Lackawanna & Western; Evansville, Indianapolis & Terre States.
Haute; Michigan Central; Monongahela (one-third interest); New York
"Calculations indicate that the directors and general officers of all
Central; Pittsburgh & Lake Erie; Rutland (one-half interest).
Class I railroads are directors of 81 larger insurance companies (292 before
elimination of duplications caused by the same Insurance company being
BALTIMORE & OHIO.
Atlantic City; Baltimore & Ohio; Buffalo & Susquehanna; Buffalo, reported in more than one railroad return). Of these 19 have admitted
Rochester & Pittsburgh; Central New Jersey; Chicago & Alton; Cincinnati, assets of $100,000,000 or more, nine of from $15,000,000 to $100,000.000,
New Orleans & Texas Pacific (joint interest); Monongahela (one-third 14 of from $25,000,000 to $50.000.000 and some 39 from $10.000.000 to
$25,000,000."
interest); Reading; Staten Island Rapid Transit; Western Maryland,
219 Directors in 2,298 Posts.
CHICAGO, MILWAUKEE, ST. PAUL & PACIFIC, CHICAGO &
NORTH WESTERN.
The report then takes up the question of whether individuals are serving
Chicago & North Western; Chicago, St. Paul, Minneapolis & Omaha; on railroad boards beyond their capacity to take a real part in the affairs
Union Pacific; Los Angeles & Salt Lake; Oregon Short Line; Oregon-Wash- of the companies. The report gives a summary of the number of different
ington RR. and Navigation Co.; St. Joseph dr Grand Island; Union Pacific. positions which the individual directors of some 15 large railroads hold.
There are, the report stated, in the aggregate 219 directors and they
SOUTHERN RAILWAY.
hold some 2,298 positions, not including directorships of subsidiary comAlabama Great southern; Chicago, Indianapolis & Louisville (one-half panies. The average number of positions held, therefore, the
report adds,
interest); Cincinnati, New Orleans & Texas pacific (joint interest); Georgia is approximately 10, but the range is from 1 to 64 positions.
The following table shows the railroads included in the 15 groups used
for classification in the report;
2510
FINANCIAL CHRONICLE
1VOL. 132.
Value of
P. C. of
RailroadShares.
Control.
Atlantic Coast Line
$1,480,000
1
Baltimore & Ohio
59,125
-_
Boston & Maine
20,550,131
18
Chicago & Northwestern
85,175
Delaware & Hudson
354,400
-Detroit & Ironton
4.472,200
100
Detroit, Toledo & Ironton
12,722,314
99
Kansas City Southern
80,825
Missouri. Kansas, Texas
452,412
New York, New Haven & Hartford
12,278,308
-8
Pittsburgh & West Virginia
37,898,100
73
Raritan River
683,250
45
Seaboard Air Line
4,523,838
14
Southern
1,415,244
1
National Freight Co
100
2,400,000
Eight principal holding companies of the Van Sweringen interests were
Total
2,298
shown in the report as follows: The Chesapeake Corp., Alleghany Corp.,
In dealing with investment trusts the report found that "at this time General Securities Corp., Geneva Corp., The Pere Marquette Corp..
the investment trust as such is not a factor in railroad control."
Virginia Transportation Corp., Van Sweringen Corp., The Vaness Co.
"However," the report adds, "it is of importance to note whether this
The Van Sweringen enterprises not subject to the control of the Inter-State
type of institution has potentialities which may render it a factor of im- Commerce Commission, because the companies are not engaged in strictly
portance in the more or less immediate future.
carrier activities, with the holdings in common stock of other roads and
"The evidence indicates that, owing to the extreme flexibility of structure percentage of voting power resulting follow:
laid down in the charters of many companies, owing to the practice of inP. C. of
No. of
Total Votvesting more largely in common stocks, and owing to the control of the
Shares. ing Power.
Namelarger investment trusts by banks and investment groups, there are poten- Alleghany
Corp.
tialities in the direction of control. An illustration is the United States
100,000
29.67
New York, Chicago & St. Louis RR. Co
and International Securities Corp., which has recently acquired substantial
32,925
2.22
Chesapeake & Ohio Ry. Co
215,000
7.52
RR.
Co
Erie
interest in the Seaboard Air Line RR. and which has also considerable
,- 482,100
---Missouri Pacific RR. Co.-Common
stock of two or three other railroads.
192,300
---Preferred
"There is need therefore for paying attention to developments in this
1,022,325
60.11
Total
field, particularly those which result in obscuring the true functions of
106,100
20.82
Kansas City Southern Railway Co
investment trusts and for considering the possibilities of regulation in
11,500
.46
Great Northern Railway Co. preferred
the public interest."
8,500
.28
Atchison, Topeka & Santa Fe RR. Co
1,120
.68
Buffalo, Rochester & Pittsburgh Railway Co
8,700
.13
Recounts Van Sweringen Activities.
New York Central RR. Co
54
.01
Wheeling & Lake Erie RR. Co
More than 350 pages of the Splawn report were given over to a discus- St. Joseph Belt Railway
4,000
1.00
sion of the extensive railroad and non-carrier holdings of Otis P. and Mantis Geneva Corp.68,100
20.20
New York, Chicago & St. Louis RR. Co
J. Van Sweringen of Cleveland. It considered in turn the corporate books,
10,900
.38
Erie RR. Co. 2d preferred
records and accounts of 32 existing or dissolved corporations.
814,600
54.81
Chesapeake Corp.-Chesapeake & Ohio Ry. Co
19,500
The report said that investments of the Van Sweringen brothers in Pere Marquette Railway Co
2.84
capitalstock and bonds,as of April 30 1930, amounted to $523,012,715, as
follows:
FULL LIST OF HOLDING COMPANIES CONTROLLED BY
$485,220,200
Capital stock
RAILROADS JOINTLY.
contracts
7500()'J0
Capital stock purchase
The report to the House Committee on Inter-State and
Advances for purchase of capital: Stocks
6,385,501
Bonds
23,907,013 Foreign Commerce gives a list of holding companies conThe report presented a summary of the companies on whose boards
he directors of railroads serve, as follows:
Railroads other than a railroad's own subsidiaries
391
Other transportation companies
110
Banks and trust companies
336
Brokers and investment bankers
28
Investment trusts, investment companies, 8ze
210
companies
Insurance
132
Mining,lumber and oil companies
192
Public utilities
165
Industrial corporations
284
Professional firms
7
Miscellaneous
445
Total
$523,012,713
trolled by railroads jointly. The list, as published in the
New York "Times" follows:
Published reports that Bird M. Robinson had been for some time employed by the Van Sweringen brothers for the purpose of keeping them Holding Companies Controlled by Railraod Companies Jointly.
informed on the short line railroad situation were referred to. In the
(Figures in parentheses indicate percentage of total voting power.)
payments made by the Van Sweringens during 1929 for professional services
Richmond-Washington Co.:
Southwestern Construction Co.:
there was listed an item of $99,999,96 paid to Mr. Robinson.
Controlled by-Controlled byThe report said he was understood to be President of the American
Atlantic Coast Line RR.Co.(16.67).
Baltimore & Ohio RR. Co. (36.59).
Short Line Railroad Association, "although the vouchers do not indicate
Baltimore & Ohio RR. Co. (16.67).
Southern Railway Co. (15•79)•
Chesapake & Ohio Ry. Co. (16.67).
Alabama Great Southern (all of
that they were payable to Mr. Robinson as President of the Association,
Pennsylvania Rallraod Co. (16.67).
whose stock is held by Southern
nor do they show the nature of the service performed."
By. Co.) (57.58).
Seaboard Air Line Ry. Co. (18.67).
It is explained in the report that the examiner was informed that the
National Investment Co., The (all
Southern Railway Co. (16.67).
expenditures, which were at a rate of $100,000 a year, "are compensation
of whose stock is held by the
Interest inSouthern) (0.03).
Richmond Fredericksburg & Potoand reimbursement to Mr. Robinson for assembling and furnishing for the
Interest
in(I)
mac
RR.
Co.
(52.12).
information of Messrs. Van Sweringen data relating to the economic condiCincinnati New Orleans & Texas
Richmond Fredericksburg & PoPacific By. Co. (68.54).
tion and valuation of certain short line railroads with relation to consolidatomac Transportation Co. (inHarriman & Northeastern RR. Co.
ter-State bus operations) (100).
tion. It is presumed that the interest lies in common carriers that might
(100).
Richmond Greyhound Lines (Inc.)
be involved in the railroad consolidation activities of the Van Sweringens."
Fruit Growers Express (1.48).
(inter-State
bus
operations)
An appended statement by Mr. Robinson states that his employment
(100).
Richmond Land Co. (100)•
was authorized on Oct. 15 1928, by the unanimous vote of the American
Fruit Growers Express Co.(4.02).
Short Line Railroad Association.
"The proposition of employment," Mr. Robinson said, "was submitted Group A. Companies Which Hold Primarily the Securities of Other
to the executive board and was approved upon the understanding that
Railroads.
no sucn employment would be accepted until a plan solving the Short
(Figures in parenthesis indicate percentage of control.)
Line problem had been worked out. Employment was not accepted until
EASTERN DISTRICT.
this was done and the proposed employment was considered by the executive committee of the American Short Line Association is plainly con- New York Transit & Terminal Co. (Ltd.) Cleveland Cincinnati Chicago & St.
Louis RR. Co., The (Concluded)Controlled
by
sistent with the interest and the policies of the short line railroads and the
Interest inBaltimore & Ohio RR. Co. (100)•
extent and nature of work to be done."
Cincinnati Northern RR. Co. (I)
Interest in(97.72).
Buffalo Rochester dr Pittsburgh By.
Holdings in New York Central.
Evansville Indianapolis & Terre
Co. (I) (3.60).
Haute Ry. Co. (I) (100).
in 33.95%
Reading
(included
Co.
(1)
Holdings by railroads and railroad holding companies in the New York
Kankakee & Seneca By. Co. (II)
total of Baltimore & Ohio).
,(50).
Central were shown. They included 267,152 shares, or 5.35% of the total
Chicago Indianapolis dx Louisville
Central Indiana By. Co. (II) (50).
By. Co. (I) (0.03).
voting stock, held by the Oregon Short Line RR., which is owned by the
Chicago & Harrisburg Coal Co.(100).
Quaker City Cold Storage Co. (40).
Union Pacific and 6,700 shares held on margin by the Allegheny Corp.,
Hambledon Corporation, The (8.67). Pittsburgh & Lake Erie RR.Co.:
which is controlled by the Van Sweringens.
Philadelphia & Reading Coal & Ter- Controlled byNew York Central RR. Co. (50).
minal Corp. (1.19).
The holdings of the Union Pacific were described in the report as the
Interest inlargest single interest which has been identified. The investigators were Vermont Valley Railroad:
Monongahela Railway Co.(I) (33.33).
Controlled
by
one-third
of
the
capital
stock
of
the
New
York Central.
able to trace about
Pittsburgh Chartiers& YoughloghenY
Boston & Maine RR.(100)•
RR. Co.(II) (50).
The railroad reported that there were 54,122 holders of its capital stock.
Interest InRailroad Holding Co.:
The Adams Express Co. of New York held 15,600 shares of the Central,
Barre & Chelsea RR. Co. (II) Boston
Controlled
by(99.725).
the largest total by any of the investment trusts or investment companies.
New York New Haven & Hartford
Co.
RR.
River
Montpelier
&
Wells
Italy,
San
Francisco,
shares
held 7,500
on margin,
RR,
Co.,
The (100).
The National Bank of
(II) (99.933).
Interest inand the American International Corp. owned 7.500 shares.
New York Susquehanna & Western RR.
Boston Jr Maine RR.(I) (29.1).
Co.:
Pennsylvania Company:
Holding Company Investments.
Controlled byControlled byErie Railroad Co. (99.15).
Pennsylvania RR. Co. (100).
Investments of the Pennsylvania Co. in other separately operated comInterest inInterest
inpanies, and the extent of control resulting as of April 30 1930, were given
Wilkes-Barre & Eastern RR. Co.
Lehigh Valley RR. Co.(30.17).
Norfolk & Western By. Co.(21.82).
(II) (100).
as follows:
Wabash Railway Co. (48.79)
Value of
P. C. of Securities Corporation of the New York
West Jersey & Seashore RR. Co.
Central RR. Co.:
Shares.
Control.
Railroad(I) (0.39).
Controlled
by
$43,551,208
30
Lehigh Valley
Central Indiana By. Co.(II) (50).
New York Central RR. Co. (100).
44,625,000
22
Ohio River & Western By. Co.(II)
Norfolk & Western
Interest
in
63,041,549
49
Wabash
(99.80).
Delaware Lackawanna & Western
200,000
8
Pennsylvania-Ontario TransportaBelt Railway Co. of Chicago
RR. Co. (I) (4.57).
108,000
25
tion Co. (50).
Calumet Western
Valley RR. Co. (I) (4.13).
Lehigh
$1.00
50
Philadelphia & Camden Ferry Co.
Central Indiana
American Niagara RR.Corp.(72•80)•
2,250,000
100
(3.89).
Detroit Union Railroad Depot and Station Co
RR. Co.:
Michigan
Central
2,149,600
50
Granite Improvement Co. (100).
Lake Erie & Pittsburgh
Controlled by50
87,501
Walhonding Coal Co. (100).
Penn-Ontario
New York Central RR. Co. '99.31).
49
$1.00
Western Warehousing Co. (100).
Sharpsville Railroad
Interest
in
0.4
31,500
Pennroad Corporation, The:
West Jersey & Seashore
Canada Southern Ry. Co. (55).
99
$1.00
Ohio River & Western
Chicago Kalamazoo & Saginaw By. Controlled byPennsylvania Railroad Co. (maCo.
(II)
(80).
jority of directors in common).
Relatively large percentages of control which were shown despite an
Toronto Hamilton & Buffalo By.
Interest inCo.(22).
insignificant value of shares were accounted for by large "capital" inBoston
& mains RR. Co.(17.94).
Transportaion
Co.(33.33)•
Mackinac
vestments.
New York New Haven & Hartford
Cincinnati Chicago & St.
Investments of the Pennroad Corp. in other carriers, with the value Cleveland
RR. Co. (4.85).
Louts RR. Co., The:
shares held and percentage of control resulting as of April 30 1930, were
Detroit Toledo & Ironton RR. Co.
Controlled by(99.96).
given as follows:
New York Central RR. Co. (95.94).
APRIL 4 1931.]
FINANCIAL CHRONICLE
Group A-(Continued.)
Pennroad Corporation, The (Concluded)- Pittsburgh Cincinnati Chicago & St.
Interest in (Concluded)Louts RR.Co., The:
Pittsburgh & West Virginia Ay. Co.
Controlled by(73.75).
Pennsylvania Railroad Co. (32.98).
Raritan River RR. Co.(44.85).
Pennsylvania Co. (66.31).
Seaboard Air Line Ry. Co. (14.16).
Interest InAtlantic Coast Line RR. Co.(0.97).
Pittsburgh Chanters& Youghiogheny
Lehigh Valley RR. Co. (0.82).
Ry. Co. (50).
Southern Railway Co.(0.53)•
Waynesburg & Washington RR. Co.
Canton Company (99.88).
(99.93).
National Freight Co.(100)•
Central Railroad Co. of New Jersey:
Manor Real Estate & Trust Co.:
Controlled byControlled byReading Co. (52.97).
Pennsylvania Railroad Co. (100).
Interest inInterest inNew York & Long Branch RR. Co.
West Jersey & Seashore RR. Co.
(II) (100).
(I) (9.11).
Lehigh & Hudson River Ry. Co.
Long Island RR.Co.(I) (0.07).
(16.71).
Northwestern Coal& Iron Co.(100).
Raritan River RR. Co.(II) (30.42).
Susquehanna Coal Co.:
Jersey Central Transportation Co.
Controlled bY(100).
Pennsylvanla Railroad Co. (100.)
Newark Warehouse Co.(100).
Interest inEdroyal Corporation (100).
Susquehanna Rive: & Western RR.
Penn Haven Realty Co. (100).
Co. (100).
Hunter Run Water Co.(100).
Clearfield Water Supply Co.:
Communipaw Central Land Co.
Controlled by
(100).
Pennsylvania Railroad Co.(KO.
Allentown Iron Co. (50).
Interest InAnn Arbor RR. Co.:
Norfolk & Western Ry. Co. (0.01).
Controlled byPhiladelphia Bait. & Wash. RR. Co.:
Wabash Railway Co.(97.65).
Controlled byInterest in
Pennsylvania Railroad Co. (99.99).
Manistee & Lake Superior RR. Co.
Interest in
(II) (100).
Roselyn Connecting RR. Co.(100).
Delaware Water Co. (100).
SOUTHERN DISTRICT.
Louisville & Nashville RR.Co.:
Mississippi Valley Corp.(Concluded)Controlled byInterest in (Concluded)Atlantic Coast Line RR. Co.(51).
Central of Georgia Ry.(I) (25).
Interest inBatesville Southwestern RR. Co.
Nashville Chattanooga & St. Louis
(III) (100).
Ry. Co. (I) (71.78).
Central Transportation Co. of Iowa
Nashville Chattanooga & St.
(100).
Louis Motor Transit Co. (100).
Chicago Illinois Western RR.(33.33)
Sequatchie Coal de Iron Co.(100).
Princeton L.& Q. Co.(100).
Tennessee Property Co. (100).
Central of Georgia Ry.Co.:
Fruit Growers Express Co. (0.02).
Controlled byAtlanta & West Point RR. Co.
Illinois Central RR. Co.(75).
(25.21).
Mississippi Valley Corp.(25).
Atlantic Compress Co. (6.10).
Interest inChicago Indianapolis & Louisville
Western Ry. of Alabama (I) (50).
Ry. Co. (I) (44.30).
Louisville & Wadley RR. (III)
Western Railway of Alabama, The
(80.16).
(1)(25).
Short Lines Motor Transp. Co.(50).
Paducah & Illinois RR. Co. (II)
Wadley Southern Ry. (II) (99.82).
(33.33).
Wrightsville & TennIlle RR. (II)
Elberton & Eastern RR. Co. (III)
(62.99).
(50)•
Sylvania Central Ry. (III) (98.53)•
Lick Creek & Lake Erie RR. Co.
Atlanta & West Point RR. Co.(0
(50).
(7.65).
Fruit Growers Express Co.(4.47).
Central of Georgia Motor Transport
Holston Land Co. (Inc.) (50).
Co.(100).
Spartanburg Land Co. (50).
Ocean Steamship Co. of Savannah
Southport Harbor Co. (50).
(99.95).
Atlantic Compress Co. (9.16).
Empire Land Co.(100).
Colossal Cavern Co. (100).
Atlantic Cotton Compress Co.
Gulf Transit Co. (100).
(21.68).
Kentucky Public Elevator Co.(comFruit Growers Express Co.(3.25). „
mon, 18.65: Preferred, 35.71).
Dubuque & Sioux City RR.:
Virginia Transportation Co.:
Controlled byControlled by-Illinois Central RR. Co. (100).
Chesapeake & Ohio Ry. Co., The
Interest in(100).
Dtudieth & Dubuque Bridge Co.
Interest in(100).
Pittston Co., The (32.50).
Manchester & Oneida RR.(III) (1).
Erie Railroad Co.(I) (28.35).
Raleigh & Charleston RR. Co.:
Chicago Great Western RR. Co. (I)
Controlled by(5.37).
Seaboard Air Line Ry. Co. (100).
MlasIssiPlal Valley Co.:
Interest inControlled byMarion & Southern RR. Co. (III)
Illinois Central RR. Co.(100).
(100).
Interest inNational Investment Co., The:
Gulf& Ship Island RR.Co.(I)(100).
Controlled byPioneer Fruit Co.(87.60).
Southern Railway Co.(100).
Yazoo & Mississippi Valley RR.(I)
Interest in(98).
Southern Railway Co. (I) (0.16).
Louisiana & Mississippi Ry. TransMobile & Ohio RR. Co. (I) (0.07).
fer Co. (100).
Northern Alabama Ry.Co.(I)(2.40)
Mer.Br.& N.RR.(100).
Pennsylvania Railroad Co.(I)(0.10)
Mississippi Valley Corporation:
Yadkin Coach Co.(100).
Controlled bySouthwestern Construe. Co. (0.03).
Illinois Central RR. Co.(100).
Railway Fuel Co.(100).
Interest inIllinois Central RR. Co. (I) (0.15).
2511
Group A-(Concluded.)
Texas de Pacific Rat. Co.(Concluded)Railroad Securities Co. (Concluded)Interest In (Concluded)Interest inPecos Valley Southern Ry. Co., The
Illinois Central RR.Co.(I)(7.94).
(III) (100).
Wabash Railway Co. (I) (5.05)
Texas-New Mexico Ry. Co. (II) Oregon Short Line RR. Co.:
(100).
Controlled byTexas Short Line Ry. Co. (III)
Union Pacific RR. Co. (100).
(100).
Interest inWeatherford Mineral Wells &
Oregon-Washington RR. & Navig:.
Northwestern Ry. Co., The (II)
tion Co.(I) (99.99).
(94.68).
Camas Prairie RR. Co. (II) (50)
Texas & Pacific Coaches, Inc. (100)•
Los Angeles & Salt Lake RR. Co.
Texas & Pacific Motor Transport
(0 (50).
Co., The (100).
Illinois Central RR.Co.(I)(8.40).
Mineral Wells Hotel Co. (10).
Chicago & North Western RR.Co.
Texas Pacific Land Trust (1.40).
(I) (2.79).
State Agricultural Corp.(5•40)•
New York Central RR. Co. (I)
Southern Pacific Land Co.:
(5.35).
Controlled byChicago Milwaukee St. Paul &
Southern Pacific Co.(100)•
Pacific RR. Co.(I) (1.55).
Interest inOre. & Wash. RR. Co. (100).
St. Louis-San Francisco Ry. Co. (I)
Yakima Valley Transportation
(4.04).
Co. (100).
St. Louis Southwestern Ry. Co.
Union Pacific Stages, Inc. (100).
(I) (24.79).
Standard Realty & Development Co.:
Pacific Greyhound Corp. (17.77).
Controlled byGreyhound Corp., The (1.94).
Western Pacific RR. Co. (100).
Railroad Securities Co.:
Interest inControlled byIndian Valley RR. Co. (II) (15.46).
Union Pacific RR. Co. (100).
Tidewater Southern Ry. Co. (0.18).
Group B. Companies Which Hold Primarily the Securities of Carriers
Other Than Steam Railroads.
(Figures in parenthesis indicate percentage of control.)
EASTERN DISTRICT.
Adrian Realty Co.:
Amer. Contract & Trust Co. (Concluded)
Controlled byInterest in (Contluded)Buffalo Rochester & Pittsburgh Ry.
Pensylvanla - Indiana
General
Co. (100).
Transit Co.(100).
Interest inPennsylvania Tranger Co. of PittsCharlotte Docks Co. (100).
burgh (72.06).
New England Investment & Security Co.:
People's Rapid Transit Co. (75).
Controlled byPhiladelphia Suburban Transit
New York New Haven & Hartford
Co. (75).
RR. Co., The (71.2).
West Jersey & Seashore RR. Co.:
Interest inControlled byWorcester & Webster Street Ry. Co.
Pennsylvania Railroad Co. (58.14).
(100).
Manor Real Estate & Trust Co.
Worcester & Dudley Street Ry.
(Pennsylvania Railroad subCo. (100).
sidiary) (9.11).'
Worcester Consolidated Street
Pennsylvania Company (0.39)•
Ry. Co. (57.6).
Interest inSpringfield Railway Companies
Coopers Point & Philadelphia Ferry
(39.8).
Co. (100).
Connecticut Co., The:
Kensington & New Jersey Ferry
Controlled byCo. (100).
New York New Haven & Hartford
Grand Rapids & Indiana Ry.Co.:
RR. Co., The (100).
Controlled byInterest inPennsylvania Railroad Co. (99.68)•
West Shore Ry. Co., The (44.3).
Interest inNew York & Stamford Ry. Co.:
Mackinac Transportation Co.(33.33)
Controlled byLong Island RR. Co., The:
New York New Haven & Hartford
Controlled byRR. Co., The (100).
Pennsylvania Railroad Co. (I00)•
Interest inInterest inCounty Transportation Co.(100)•
Long Island Consolidated Electrical
American Contract er. Trust Co.:
Cue. (100).
Long Island Electric Ry. (50).
Controlled byPennsylvania Railroad Co. (100).
New York & Long Island Traction
Interest inCo. (common, 49.08: preferred,
Buffalo Interurban Bus Lines (Inc.)
50).
Lake Erie Coal Co:
(100).
Buffalo Storage & Cartage Co
Controlled by(including Keystone Transfer
Pere Marquette Ry. Co. (100)•
Interest in(Co. (100).
Cambria Bus Co. (100).
Lake Erie Navigation Co. (100).
Kane-Mount Jewett Transit Co Eastern Real Estate Co.:
(100).
Controlled byMerchants Trucking Co. (69.09)
Reading Co. (100).
Montgomery Bus CO.(Inc.) (75)
Interest inPennsylvania General Transit Co
Trenton-Princeton Traction Co.(100)
(100)•
SOUTHERN DISTRICT.
Southeastern Investment Co.:
Southeastern Investment Co. (Concl.)Controlled byInterest In (Concluded)Seaboard Air Line Ry. Co. (100).
Seaboard Air Line Ry. Co.(0.38).
Interest inSavannah & Statesb. Ry.Co.(0.35).
Motor Transportation Co. of the
Florida Publishing Co., The (31.27).
South, The (100).
Warehouse & Finance Co. of the
South (Inc.)(60.68).
WESTERN DISTRICT.
Minneapolis
Chicago, St. Paul,
& Omaha Northland Greyhound lines (Inc.) (Conc.)
Ry. Co.:
Interest In (Concluded)Controlled byNorthland Greyhound Lines (Inc.)
Chicago & North Western Ry. Co.
of Illinois (100).
WESTERN DISTRICT.
(93.66).
Southern Pacific Golden Gate Co.:
Duluth South Shore & Atlantic Ry. Co.: Bran. D. Lake & So. Ry. Co. (Conti.)Interest inControlled byControlled byInterest inWilson Transportation Co. (82.40).
Southern Pacific Co. (50.12).
Canadian Peelle Ry. Co. (50.79).
Farmers Grain & Shipping Co. (II)
Rock Island Improvement Co.:
Interest inInterest in(60.68).
Controlled pySouthern Pacific Golden Gate Ferries
Mineral Range RR. Co. (II) (53).
New Orleans Texas & Mexico Ry. Co.:
Chicago Rock Island & Pacific Ay.
Mackinac Transp. Co. (33.33).
(Inc.) (100).
Controlled by-Co., The (100).
Los Angeles & Salt Lake RR. Co.:
South Shore Land Co. (100).
Missouri Pacific RR. Co. (91.89)
Interest inNew Jersey Bridge Constr. Co.(25)•
Controlled byInterest inRock Island Motor Transit Co.(100)•
Minneapolis St. Paul & Sault Ste. Marie
Union Pacific RR. Co. (50).
International-Great Northern RR.
Stinnett Townslte Co. (33.33).
Ry.Co.:
Oregon Short Line (Union Pacific
Co.(I)(100).
Gruner Townsite Co.(33.33).
Controlled bysubsidiary) (50)•
Galveston Houston & Henderson
Western Slope Motor Way (Inc.):
Canadian Pacific Sly. Co.(50.48).
Interest inRR.Co.(II) (50).
Controlled byInterest inUnion Pacific Stages Co. (100).
St. Louis Brownsville de Mexico
Denver & Rio Grande Western Ry.
Spokane International Ry. Co. (I)
Utah Parks Co.(100).
Ry.Co.(I)(100).
Co.(80).
(4.76).
Las Vegas Land & Water Co. (100)•
Beaumont Sour Lake & Western
Interest inNew Jersey Bridge Constr. Co.(25)
Sacramento Northern Ry. Co.:
Ry. Co., The (I)(100)•
Rio Grande Motor Way (Inc.)(100).
Western Express Co.(100).
Controlled bySan Antonio Uvalde & Gulf RR.
Rio Grande Southern RR. Co.
Tri-State Land Co.(100).
Western Pacific RR. Co. (100).
Co.(I)(100).
First National-Soo Line Building
(79.37) (contract rights only).
Interest inAsherton & Gulf Ry. Co. (III)
Northland Greyhound Lines (Inc.):
Co. (50).
West Side RR. Co. (100).
(100).
Colorado & Southern Ry.Co.:
Controlled byMartinig & Bay Point Stage Co.
Asphalt Belt Ry. Co. (III)(100).
Controlled byGreat Northern RR. Co. (30).
Houston & Brazos Valley Ry. Co.
(100).
Chicago Burlington & Quincy RR.
Interest
inEast Nicholaus Wareh'se Co.(9.09).
(II)(I00)•
Co.(68.14).
Northland Transportation Co.(100).
Catlett Warehouse Co. (10.31).
New Iberia & Northern RR. Co.
Interest in(II) (100).
Fort Worth & Denver City Ry. Co.
Orange & Northwestern RR. Co. Group C. Companies Which Hold Primarily the Securities of Non.
(I) (99.97).
carrier Companies.
(II) (100).
Wichita Valley Ry. Co. (I) (100).
(Figures In parenthesis indicate percentage of control.)
Rio Grande City Ry. Co (III)
Trinity & Brazos Valley Ry. Co.
(100).
EASTERN DISTRICT.
San Antonio Southern Ry. Co. Maryland & West
(0 (50).
Virginia Lumber Co.: Hudson Coal Co.:
Denver Colorado Springs Pueblo
(II) (100).
Controlled byControlled byMotor Way (Inc.) (25).
San Benito de Rio Grande Valley
Baltimore & Ohio RR. Co. (100).
Delaware & Hudson Co., The (100).
Denver & Interurban Motor Co.
Ry. Co.(II) (100).
Interest inInes
Interest in
(100).
Sugar Land Ry. Co. (II) (100).
Properties (Inc.) (43.20).
Chateugay Ore & Iron Co. (95.69).
International Navigation & Trading Co.
Velum Wharf & Warehouse Co. Van Capon
Buren Bridge Co.:
Chazy Marble Lime Co.. The (100).
(Ltd.):
(100).
Controlled byTownship Realty Corp. (100).
Controlled byWestern Townsite Co. (100).
Bangor & Aroostook RR. Co. (100).
Old Colony Coal Mining Co. (100).
Great Northern Ry. Co. (100).
Texas & Pacific Ry.Co.:
Interest inWendell Coal Mining Co.(74.34).
Interest InControlled byBangor Investment Co.(100).
Shanferoke Coal & Supply Co. of
Crows Nest Southern Ry. Co.(100).
Missouri Pacific Ry. Co. (69.67).
Aroostook Trap Rock Co.(12.85).
0a
kree C(50111
shD
a0
1e
arw
.
Manitoba Great Northern Ry. Co.
Interest InChicago & Indianapolis Coal Co.:
& Supply Co. of
(100).
Abilene & Southern Ry. Co. (II)
Controlled byNew York (51).
Brandon Devil's Lake & Southern Ry.
(100).
Chicago,
Indianapolis
Louisville
&
Shanferor
Coal
Co.
°huylkc0aldI
(100).
r00
c
Co.:
Clsco & Northeastern Ry. Co.(II)
Ry. Co. (100).
Co., The
Controlled by(92.22).
Interest in
(100).
Great Northern Ry. Co. (100).
Denison & Pacific Suburban RI.
Monon Coal Co.(99.96)•
Wyoming Realty Co.(23.91).
Co., The (III)(100).
American Rhoelaveur Corp.(10).
(0
2512
FINANCIAL CHRONICLE
Group C-(Concluded.)
Merch. Despatch Transp. Co.(Concl.)Erie Land dr Improvement Co.:
Interest inControlled byMerchants Despatch (Inc.) (100)•
Erie Railroad Co.(100).
Nickel Plate Development Co.:
Interest inControlled bySouthern Tier Developm't Co.(100).
New York Chicago & St. Louis Ry.
Bath dr Hammondsport RR. Co.
Co.(100).
(99.8).
Interest InPennsylvania Coal Co.:
East Fortieth Realty Co. (100).
Controlled byNew York Ontario dr Western Ry. Co.:
Erie Railroad Co. (100).
Controlled byInterest inNew York New Haven & Hartford
New York Susquehanna & Western
RR.Co.(50.2).
Coal Co. (83.57).
Interest inHillside Coal & Iron Co.:
Anthracite Valley Water Co. (100).
Controlled byScranton Coal Co.(100).
Erie Railroad Co.(100).
Elk Hill Coal dr Iron Co. (100).
Interest inNew York, Susquehanna dr Western Susquehanna Coal Co.:
Controlled by-Coal Co.(15.18).
Pennsylvania Railroad Co. (100).
Samoset Co.*
Interest inControlled.byLykens Water Co.(56.86).
Maine Central RR. Co. (100).
Norfolk & Western RR. Co. (0.13).
Interest inWestern New York dr Pennsylvania Ry.
Eastern Warehouse Co.(100).
Co.:
Penobscot Bay Land Co. (50).
Controlled by-Clearfield Bituminous Coal Co.:
Pennsylvania Railroad Co. (99.81).
Controlled byInterest inNew York Central RR. Co. (100).
Northwestern Coal & Iron Co.(100).
Interest inNew York Philadelphia & Norfolk RR.
Clearfield Supply Co.(100).
Co.:
Cambria & Indiana RR. Co. (40).
Controlled byMerchants Despatch Transportation Co.:
Pennsylvania Railroad Co. (100).
Controlled byInterest inNew York Central RR. CO. (100).
Cavalier Hotel Corporation. (1.37).
SOUTHERN DISTRICT.
Atlanta Birmingham & Coast RR. Co.: Alabama Great Southern Ry. Co., The:
Controlled byControlled bySouthern Railway Co. (54.67).
Atlantic Coast Line RR. Co. (100).
Interest inInterest inAlabama Industrial Realty Co.(100)
Eastern Realty Co.(100).
Fruit Growers Express Co.(0.06).
National Car Co.(100).
Georgia Southern & Florida Ry. Co.:
Atlantic Compress Co.(1.77).
Controlled byHocking Valley Ry.Co., The:
Southern Railway Co. (69.50).
Controlled byInterest inChesapeake & Ohio Ry. Co.(80.99).
Fruit Growers Expres Co. (0.52).
Interest InHocking Land Co.(name changed to Mobile dr Ohio RR. Co.:
Controlled byThe Hocking Land DevelopSouthern Railway Co. (94.24).
ment Co.)(99.60).
Charlotte Harbor & Northern Ry. Co.: Interest inFruit Growers Express Co.(1.02).
by
Controlled
Seaboard Air Line Ry. Co. (100)•
Interest inFlorida Townsite Co.(100).
WESTERN DISTRICT.
Milwaukee Land Co. (Concluded)Western Improvement Co.:
Interest inControlled by-Great Falls Townsite Co. (33.33).
Atchison Topeka & Santa Fe Ry.
Washington & Great Northern Townsite
Co. (100).
Co.:
InInterest
Controlled byChanslor-Canfield Midway Oil Co.
Great Northern Ry. Co.(100).
(100).
Interest inColine Gasoline Corp.(1OO).
Glacier Park Hotel Co.(100).
Coline Oil Corp.(100).
Gales Creek & Wilson River RR. Co.
Coline Oil Co.. The (100).
(50).
Los Angeles Corp., The (100).
California Fruit Auction Co. (100)• Sebastian County Coal & Mining Co.:
(100).
Controlled
by-District
Mfg.
Central
Midland Valley RR. Co. (100).
District Printing Co.(100).
Interest inLos Angeles Union Stock Yards Co.
Garland Coal & Mining Co. (100).
(100).
Arkansas Fuel Co. (100).
Southwest Lumber & Supply Co.
Improvement Co.:
Northwestern
(100).
Controlled bySanta Fe Land Improve. Co. (100)•
Northern Pacific Ry. Co.(100).
Bandini Estate Co.(100).
Interest inSouthwestern Lumber Co. of New
Gales Creek & Wilson River RR. Co.
Jersey (100).
(50).
Gulf & Northern Ry. Co.(100).
Walla Walla Ry. Co.(100).
American Lumber Co. (100).
Northern Express Co. (2).
Pineland Colonization Co. (100).
Lehml Telephone Co. (99).
Westport Tie Co.(100).
Cayuna Realty Co. (100).
Cherokee dr Pittsburgh Coal and
Missabe Realty Co. (100).
Mining Co.(100).
Crow Wing Realty Co.(100).
The
Co.,
Mining
Coal
Morris
Folsom
Montana Coal& Iron Co.(100).
(100).
Northern Pacific Express Co.:
Toluca Mining Co.(100).
byControlled
Healdton Pipe Line Co. (100)•
Northern Pacific Ry. Co.(100)•
Terminal Building Corp. of Dallas
Interest in(40).
Northern Express Co.(98).
Westland Warehouses, Inc. (100).
Santa Barbara Tie dx Pole Co.(100). Central Pacific Ry. Co.:
byControlled
Co.:
Ry.
Fe
Santa
Gulf Colorado dr
Southern Pacific Ry.Co.
Controlled byInterest InAtchison Topeka & Santa Fe Ry
Coos Bay Oregon Coal Co. (100).
Co. (100).
El Paso dr Northwestern Co.:
Interest inDallas
Controlled
byof
Corp.
Building
Terminal
Southern Pacific Co. (100)•
(60).
Interest inNorth Kansas City Development Co.:
Dawson E.& Coal CO. (100)•
Controlled byCloudcroft Co. (100).
Chicago Burlington & Quincy RR.
Union Pacific Coal Co.:
Co.(33.33).
Controlled byInterest InUnion Pacific RR. Co. (100).
North Kansas City Water Co.(100).
Interest InNorth Kansas City Light, Heat &
Illinois Union Coal Co.(100).
Power Co. (99.90).
Southern Wyoming Electric Co.(100)
Milwaukee Land Co.:
Washington Union Coal Co. (100).
Controlled byPhiladelphia & Reading Coal dr Iron
Chicago Milwaukee St. Paul &
Corp.(1.57).
(100).
Co.
RR.
Pacific
New Rail Bill Would Put Holding Companies Under
Control of Interstate Commerce CommissionRepresentative Parker Presents Amendment to
Interstate Commerce Law.
A measure to put rail holding companies under control of
the Interstate Commerce Commission was filed in the House
of Representatives, Feb. 21, by Representative Parker,
Chairman of the Interstate and Foreign Commerce Cornmittee. The measure is in the form of a resolution to amend
the Interstate Commerce Act and carries out the first of the
three recommendations made in report of the committee's
special counsel, Dr. Walter M. W. Splawn. The measure
filed by Representative Parker would amend the Interstate Commerce Act so as to prevent the acquisition or
control by one railroad of the properties of one or more
other roads, either indirectly through holding companies or
by any person or individual where the control of the road
would ultimately rest with another carrier, unless such
[VOL. 132.
control was permitted by the Interstate Commerce Commission. It is designed, Mr-Parker said, to prevent the
building up of large combinations of railway properties,
such as exist at the present time, without the Interstate
Commerce Commission having a prior opportunity to
determine whether such combination is in the public interest.
Although Mr.Parker said he confidently expected the passage
of the resolution before Congress adjourned March 4, the
House Interstate Commerce Committee, to which the
measure was referred, on Feb. 26 postponed indefinitely
action on the Bill, indicating this legislation will fail at this
session.
The measure introduced by Mr. Parker reads:
Further to regulate the acquisition of control of carriers by railroads.
That paragraph (2) of section 5 of the Interstate Commerce Act, as
amended, is amended to read as follows;
"(2) (a) After this paragraph, as amended, takes effect, it shall be unlawful, without the approval of the Commission, (A) for any carrier, or
two or more carriers acting together, to acquire control of any other carrier;
"(B) For any person affiliated with a carrier, or two or more such
persons acting together, to acquire control of any other carrier;
"(C) For any person, or two or more persons acting together, to acquire
control of two or more carriers;
"(D) For any person who has control of one or more carriers to acquire
control of another carrier; or
"(E) For any person, or two or more persons acting together, to acquire
control of a carrier if it is reasonable to believe that the effect of such
acquisition is or will be to place such carrier and one or more other carriers
under common control, whether direct or indirect.
"Whenever, upon application for authority for any such acquisition
of control, and after hearing thereon, the Commission is of opinion that
such acquisition, to the extent indicated by the Commission, will be in the
public interest, the Commission shall by order approve and authorize such
acquisition under such rules and regulations and for such consideration and
on such terms and conditions as the Commission shall find to be just and
reasonable in the premises. It shall be unlawful to continue to hold control
acquired in violation of this subparagraph.
(b) For the purpose of this paragraph, it is immaterial whether such
"
control (A) has been or is to be acquired under a lease or by the purchase
ofstock or in any other manner,or (B) is direct or indirect.
(c) For the purposes of this paragraph any transaction by a carrier
"
or by a person affiliated with such carrier shall be sufficient to constitute
the acquisition of control of a second carrier by the carrier or person entering into such transaction if the effect of such transaction is to place such
carrier and persons affiliated with it, taken together, in control of the
second carrier.
"(d) For the purposes of this paragraph any transaction by two or more
persons acting together shall be sufficient to constitute the acquisition of
control of a carrier by such persons if the effect of such transaction is to
place such persons and any carrier affiliated with any one of them and
persons affiliated with any such carrier, taken together, in control of the
acquired carrier.
"(e) For the purposes of this paragraph a person shall be held to be
affiliated with a carrier if, by reason of the relationship of such perons to
such carrier (whether by reason of the method of, or circumstances surrounding, organization or operation, or whether established through common stockholders, directors or officers, a voting trust or trusts, a holding
company or companies, or any other direct or indirect means), it is reasonable to believe that the affairs of any carrier of which control may be acquired by such person will be managed in the interest of such other carrier.
(f) In determining the public Interest under this paragraph, consider"
ation shall be given, among other things, to the effect of the acquisition
upon the efficiency and economy of management and operation of the
carriers involved or affected, and upon the furnishing of adequate service
to the public by such carriers, and to the provisions of the Act relating to
the consolidation of railway properties of the United States.
jurisdiction
(g) The District Courts of the United States shall have
upon the application of the Commission, alleging a violation of this paraorder of
any
with
graph by any person or a failure by any person to comply
the Commission made under this paragraph, to issue such writs of injunction
or other proper process, mandatory or otherwise, as may be necessary to
restrain such person from further violation of this paragraph or further
disobedience to such order.
"(h) As used in this paragraph-(A) The term 'person' includes an
Individual, partnership; association, or corporation; and
"(B) The term 'carrier' means a carrier by railroad engaged in the
transportation of passengers or property subject to this Act."
Section 2, paragraph (8) of section 5 of the Interstate Commerce Act, as
amended, is amended to read as follows;
affected
-(8) Any individual partnership, association or corporation
by any order made under the foregoing provisions of this section, and any
and
approved
authorized
consolidation
a
corporation organized to effect
in any such order, is hereby relieved from the operation of the anti-trust
laws, as designated in section I of the Act entitled,'An Act to supplement
existing laws against unlawful restraints and monopolies, and for other
purposes,' approved Oct. 15 1914, and of all other restraints or prohibitions
by law, State or Federal, in so far as may be necessary to enable such
individual, partnership, association, or corporation to do anything authorized or required by such order."
Section 3. The provisions of the Interstate Commerce Act, as amended,
as in force prior to the enactment of this Act, shall remain in force, as
though this Act had not been enacted, with respect to the acquisition by
any carrier, prior to the enactment of this Act, of the control of any other
carrier or carriers.
Extended Control Over Rail Holding Companies Asked
-Representative Parker Proposes Inclusion of
Such Concerns within Jurisdiction of Inter-State
Commerce Commission.
Facts set forth in the report to the House Committee on
Inter-State and Foreign Commerce by Dr. Walter M. W.
Splawn, special counsel for the Committee, "clearly demonstrate the efficacy of Congressional regulation of railroads,"
Representative Parker, the Chairman of the Committee,
said Feb. 20 in submitting Dr. Splawn's report to the
House of Representatives. The report recomraended modification of existing laws to include so-called "holding corn-
APRIL 4 1931.]
FINANCIAL CHRONICLE
panies," affiliated either directly or indirectly with railroads
engaged in inter-State commerce, within the jurisdiction of
the Inter-State Commerce Commission. Represen
Parker's speech in the House upon submittal of the tative
as reported in the "United States Daily" follows: report
2513
control unquestionably within the jurisdiction of the Inter-State Commerce
Commission.
Now let us turn to the problem of the acquisitions already made. As I
have indicated, the most important of these should be before the InterState Commerce Commission within a short time in connection with the
applications of four eastern systems. If all these matters are in good faith
On July 2 1930, it was my privilege as Chairman of the Committee
on submitted to
the Commission in connection with those applications, I think
Inter-State and Foreign Commerce to report to the House of
Representatives it safe
to leave the matters for the Commission to adjudicate after they have
the progress being made on the so-called holding company
investigation heard
the pleas and arguments of the parties at interest. But if there
authorized by House Resolution 114. (Report No.
2064-71st Cong., should
be undue delay in coming to the Commission with the proposed
2d sess.) At that time I advised that the Committee had
employed special application
s of the four systems, if there should continue to be striving
counsel and that special counsel had organized a staffof
lawyers, accountants after
selfish advantage and hesitancy in submitting the issues to the Comand statisticians to aid him in prosecuting the factual
Inquiry imposed upon mission,
then the Congress may find it necessary to clothe the Commission
him by your Committee on Inter-State and Foreign Commerce.
with undoubted power to compel divestiture of the ownership of railway
The report (in three parts) of special counsel to the Committee
on the stock where
the Commissio would find that such ownership had been
phases of the investigation pertaining to the control of railroads
through acquired without
stock ownership and the regulation of such control is submitted
the Commission's approval and was being continued conherewith trary to the
Commission's finding of what is in the public interest.
by me as Chairman by direction of your Committee on
Inter-State and
These
findings
being transmitted to-day are concerned with the ownership
Foreign Commerce. At a later date I shall transmit
to the House of and
control of railroads. There is abundant information concerning the
Representatives other findings after they have been completed.
After activity of the
your Committee on Inter-State and Foreign Commerce has
holding company in railway ownership and control. This
duly considered part
of the investigation was not concerned with the holding company in
these findings, gathered and submitted to it by its special
counsel, and fields
of business other than railway. The holding company is more imhas held hearings on the pertinent questions as they develop
during the portant,
course of the investigation, the Committee will submit its
perhaps, in some other lines of business than in the railway field.
recommendations The
disclosures herein contained will undoubtedly provoke a desire to regufor legislation.
late the holding company as an agency in business.
Cites Results of Inquiry.
It is my judgment, as
an individual, that before Congress enters upon
May I now address myself to some observations concerning
that line of legislation it
the results should
of the inquiry herewith submitted _
seek fully to be informed concerning the advantages and disadvantages of the holding company in the various lines
First. I want to call attention to the expedition with
or business engaged in
which this part of
inter-State commerce. I personally believe that since we
the inquiry has been conducted. The Members of
have started we
this House are quite
familiar with how time is consumed in any sort of
extensive inquiry. Months should go through with a full and comprehensive inquiry into all the activiand even years frequently pass before the desired informatio
ties of the holding company in so far as those activities may impose
a burden
n is run down
and put in presentable form. This report transmitte
upon inter-State commerce.
d to-day for your
information contains the results of an examination of
Distributio
n of Stock—No Family Control.
every Class I railroad
in the United States; of a careful perusal of the files
Referring again to the report, I have been forcibly struck by the simplicity
of the Inter-State
Commerce Commission for information concerning
the ownership of every of the capital structures of railway companies. Of 147 Class I railroads,
railroad company in the country; the results of interrogati
ons of several 80 have only one class of stock and 44 have only two classes of stock. In
hundred investment trusts, nearly 300 brokerage houses
and of the invest- all but exceptional cases equal voting rights attach to all classes of stock.
ment houses important in railway financipg; findings
Another impressive fact is the wide distribution of the ownership of the
of expert accountants who made personal examinations of the
books and records of voting stock of American railroads. On the stock registry books of 160
the most important holding companies in the
Class
I railroads on Dec. 31 1929, stood some 840,000 names. That is
railway field; compilations
by expert economists who examined every possible source of
information to say. 840,000, or nearly 1,000,000 people, own the voting stocks of our
concerning each of several railway holding companies
which have fairly railroads. This does not include the names of bondholders, for no inquiry
long histories; an expert opinion by an eminent economist
as to whether was made as to the ownership of bonds except where the bonds have votthe holding company in the railway
field should be outlawed or regulated; ing privileges. Each Class I railroad was required to disclose its 30 largest
and in addition to all this information. Members of
the House of Repre- stockholders. Wnat do you suppose was the percentage of total voting
sentatives will be interested in reading a statement
which the report con- power represented by the 30th largest holder of record? In 42 cases it
tains concerning the power of the Congress to regulate
ownership of railway was less than 2-10ths of 1%. In only two instances did the 30th holders
securities.
of record have over 1% of the voting power of a railroad company.
That within a year the results of these inquiries should
Another very striking fact, and to me rather surprising, is the small
have been brought
together and compiled for the use of Members of the
House of Representa- influence offamily holdings in our American railways. On page 67(LXVII)
tives is eloquent testimony both of the diligence with
which the investigation you will find listed the holdings of the families really important in American
has been made and the co-operation of those who have
been called upon railway finance. There are only eight of these family groups, and with the
by the Committee to furnish information.
exception of an occasional road, like the Western Pacific, you will not find
Second, the purpose in transmitting these findings
is that Members of the percentage of total voting power held by a family to be of very great
the House of Representatives may have sufficient times
in which to inform significance. The Baker family control about 10% of the Lackawanna;
themselves concerning railway ownership in this
country while toe Com- Arthur Curtis James seems to dominate the Western Pacific; the Vandermittee is completing the inquiries and formulating its
hilts have about 17% of the voting stock of the Pittsburgh & Lake Erie.
conclusions.
You will find the other family holdings surprisingly small. For years the
Railroad Competition.
public has thought of the New York Central as a Vanderbilt property.
I shall not take your time to tell you what is
contained in these three This
report discloses that the Vanderbilts hold less than 5% of the voting
volumes. At your convenience you will find that
out in your own way stock
of that corporation.
and for yourselves. I cannot refrain, however,
from emphasizing the
I had also supposed that the great foundations, such as the General
wealth of information which is being placed before
you. You will be im- Education
Board, would be listed among the most important railroad
pressed, as you turn these pages, by the activity in the acquisition
of control holders. While
such foundations appear frequently as stockholders, as a
of railway properties in certain parts of the country.
Let me emphasize rule their
holdings are of no consequence when control is considered.
that this activity is explained by the competition of great interests
for the
possession of strategic railway properties. This should be borne
Banking Investments.
in mind
as you read of the dramatic and daring adventures of those
On page 73 (LXXIII) it is disclosed that the large banks and investment
ambitious to
fashion the railway map to their own liking.
banking and brokerage houses altogether own only 5% of tile total outAgain, as you read the study of the constitutional power of Congress to standing capital stock of all Class I railroads. Toe ownership of railway
regulate stock ownership in railroads engaged in inter-State commerce, stocks is in the hands of a multitude of American citizens. Usually, when
one of the 30 largest stockholders of a railroad would appear on the record
you will be impressed by the large powers the Congress possesses under
the
Constitution. It seems clear to me that the Congress can do
about what to be a brokerage house or investment bank, an examination would reveal
that the company held the stock in some instances for several hundred
it finds to be necessary to protect the public interest. Whatever the
abuses
of the holding company which this inquiry under House resolution
individual accounts.
114
may bring to light, it seems clear that you have the power to
On page 51 (LI) you will find an analysis of the manner of the control excorrect the
abuses, to remedy the evils, to subject the holding company to
ercised over 160 railroad companies. Thirteen of these companies,with less
reasonable
than 3.300 miles in operation, are controlled by industries; 31 companies,
regulation without being reduced to the necessity of destroying
it. That
Is, through proper regulation, so far as your powers are concerned,
with an aggregate of nearly 30,000 miles,are controlled by individuals or
you can
preserve the benefits of the holding company and at the same time
families. This seems contradictory to what I have just said about the lack
remedy of
such evils as may call for correction.
importance of family holdings in the ownership of American railroads.
The report reveals that most of these 30,000 miles, controlled—you will
Expresses Ills Own Views.
notice I said "controlled." not "owned"—is under the control of the Van
Again, I think you will agree with me that the facts here disclosed
clearly Sweringen brothers. How they exercise this control through their holding
demonstrate the efficacy of Congressional regulation of
railroads. At companies is clearly set forth in the report. Thirty-two railroads,
with
this point I want to make it clear that what I am about to say
represents 47.000 miles operated, have their securities held In large part
by one or more
my own views and not any expression of the Committee. This
portion of interests. Sixty-two railroad companies. with a total of over 146,000
miles,
the report has only to-day come to the Committee, as I stated at
the begin- show no marked concentration of ownership.
ning of my remarks.
The activities which may be construed to impose a burden upon
Fifteen Major Groups.
interState commerce, which may interfere with Congressional planning
We have had a great deal of talk about the consolidations of the railroads
in the
in
public interest, have been by companies acting beyond the
this country into a limited number of systems. The tentative plan of the
jurisdiction of
the Commission, or at least as far without the reach of that
jurisdiction as inter-State Commerce Commission recommended 19 systems. Their sothe cunning of the lawyers could contrive. If these companies
called
final plan includes 21 systems, 19 being in the continental United
had unquestionably been subject to the Commission's jurisdiction, I
believe there States and 2 belonging to the Canadian systems. Some people have wonwould have been less complaint of their activities and less
ground for dered why the Commission did not recommend more systems. This report
accusation that they have engaged in grab as grab can contests.
reveals tha 15 major groups in this country now control 210,000 miles, or
It is true that most of these acquisition of control through the
nearly 85% of the railway mileage of the entire country. These 15 major
device
of
the holding company about which the Commission has
complained, will, groups are as follows:
It is announced, soon be submitted to the Commission in
Miles.
connection with Van Sweringens
applications for four dominant systems in eastern territory.
28,411
The outcome Great Northern
8,511
of the hearings before the Commission on those proposed
applications will Northern Pacific
6,783
perhaps determine the attitude of the Congress with reference to
International
554
the problem Spokane
*Burlington
of what to do about such acquisitions of control during
11,987
the past 10 years.
as the Commission has brought to our attention. Similar
Total for Hill group (two systems)
acquisitions in
27,693
the future, it appears, can readily be brought within the
Pennsylvania
23,698
Commission by amending paragraph (2) of Sec. 5 of thejurisdiction of the Southern Pacific
14,485
Inter-State Com- Frisco
merce Act, as amended.
14,217
Atlantic Coast Line
14.122
I favor such an amendment and believe that It should
be passed with Santa Fe
13,166
promptness. If an when it is passed, however, it should
New
York
Central
be made very clear
13.376
Baltimore & Ohio
that it does not give immunity to any company which before
11,270
the effective St. Paul
date of the amendment had acquired control of some railroad in
11,247
Chicago
North Western
violation of
10,205
an existing statute. If there have been such violations, the
proper authori- Union Pacific
10,157
ties should be left free to initiate such measures as the facts
Southern
warrant and as Illinois Central
9,903
the public interest dictates. So much for bringing future
9.109
acquisitions of
•Includes 367 miles operated with other systems.
2514
FINANCIAL CHRONICLE
On page 52(LII) and following you will find what companies have most of
the other 15% of the mileage.
An account of the holding companies in the railway field is shown at page
26(XXVI)and following. This information, together with that, contained
in Volume II of the report, reveals that most of the holding companies in
the railway field are merely used for convenience in tying subsidiary corporations in with the parent companies. In only a few instances have there
been notable activities such as those which provoked the complaint of the
inter-State Commerce Commission, and to which I referred in the beginning
of this statement.
On Dec.311929, 160 Class I railroads operated 242,000 miles of road and
for the year ended on that date they had received in operating revenues
$6,280,000,000; their gross capital approximated $23,800,000,000; their
operating expenses were over $4,506,000,000; their wage bill was about
$2,897,000,000; they paid in taxes that year $397,000,000, and in interest
approximately $500,000,000. These figures emphasize the importance of
the railway systems to the American people.
Sale of New York "World" to Scripps-Howard Interests
—Associated Press Membership For Sale.
The New York "World" passed out of existence on
Feb. 27, when its final edition was issued. Announcement
of its sale, together with "The .Evening World" and "The
Sunday World", to the Scripps-Howard interests—the owners of the New York "Telegram"—was made as follows
in the Feb. 27 issue of "The World":
"The World", "The Evening World" and "The Sunday World" have
been sold to the Scripps-Howard interests, owners of the New York
"Telegram."
The three papers will be merged with the New York "Telegram" under
the title New York "World-Telegram."
It is the intention of the trustees of the newspaper trust to set aside
among
from the proceeds of the sale the sum of $500,000 to be distributed
employees under the terms of a plan to be announced later.
the
intrusted
The trustees of the newspapers to whom Joseph Pulitzer
every
duty of carrying on the institution which he had founded made
possible effort to avoid a sale of the "World" newspapers; but economic
conditions have proved inexorable.
Had "The World" been nothing more than a commercial enterprise a
sale might profitably have been undertaken years before it has now become
compulsory. But its publication continued, year after year, with heavy
losses. For 48 years it has done its duty as it saw its duty, without fear
or favor, without private propaganda or special privilege.
To its army of reath-rs "The World", under its present management,
says good-bye. They have shown a great faith in "The World" in prosperity and adversity. To ignore that faith by transferring it to other
ownership would seem to be a poor return if any other choice were open.
The trustees cannot pretend that it is anything but a painful duty to
pass the "World" newspapers into other hands. But there is a fortunate
mitigation in the spirit of the new ownership which is thoroughly hospitable
to the "World" tradition. May it carry on that tradition with the fullest
measure of public service and success.
RALPH PULITZER,
JOSEPH PULITZER,
HERBERT PULITZER,
Trustees.
Q. Has the business of the publishing of these newspapers in recent
years been successful from a financial point of view? A. It has not.
Q. Can you state what the losses have averaged during those five years?
A. Eight hundred and eleven thousand dollars a year.
Q. Have these losses increased in amount? A. They have, except that
the loss in 1927 was slightly less than the loss of 1926.
Q. Can you state the approximate losses of the last year of operation,
1930? A. A million, nine hundred and seventy-five thousand.
Q. Taking into account all sources of revenue during the last five years,
can you state whether the business has been successful or not? A. It has
not been successful.
Losses Heavy.
Q. Did it make money in any of the last five years, according to your
recollection? A. For the sake of accuracy, I can give you the figures.
(Witness referring to paper,) It made a nominal amount in 1926 and
1927, and lost from then on.
Q. What was the loss, Raking into account all sources of revenue, in the
year 1930? A. $1,677,000.
Q. And in 1929? A. $737,000.
Q. In 1928? A. $97,000.
Q. Has this resulted in reducing the company's reserves? A. It has,
.to the extent of about $3,000,000.
Q. Have you, during the period that you have been President, endeavored
to effect all possible economies? A. I have. The economies last year
amounted to approximately $1,250,000.
Q. Have you considered the continued operation of these papers by the
Press Publishing Co.? A. I have, most carefully.
Q. What is your beat judgment as to the possibility of continuing publication? A. I believe continued publication would be impossible. We could
continue for a period of not more than 90 days on the basis which is practically of our financial statement as of last Saturday. Last Saturday we
had $200,000 cash, $90,000 in payroll accounts distributed through small
banks, $6,000 of New York City bonds, and one International Paper note
of $200,000 due 1936. That makes a total of approximately $500,000.
Our January loss amounted to $170,940, so that at that rate of loss we
could continue for three months. Our reserves would be completely
exhausted. . . .
Under the terms of the contract Mr. Howard would have paid $500,000
down, the same amount in 90 days, $2,000,000 in notes, and another
$2,000,000 out of the potential profits of the new newspaper, which would
be owned by the Consolidated Newspapers Co.
The delay in granting a decision, Mr. Howard told Surrogate Foley,
would materially hurt "The World" within 24 hours, whereas his own
paper, the "Telegram", would benefit by the resultant publicity regardless
of the outcome.
Surrogate Foley's answer was: "Don't expect an answer to-night."
He then adjourned until this morning in order to give Mr. Steuer an
opportunity to reach his client, Mr. Paul Block.
In its Feb. 25 Issue, indicating that application had been
made to the Surrogate's Court for permission to sell the
paper, "The World" said in part:
Application for permission to sell "The World", "The Evening World"
and "The Sunday World" was made to Surrogate James A. Foley yesterday
by attorneys for Herbert, Ralph and Joseph Pulitzer, trustees of the newspaper trust under the will of Joseph Pulitzer, decreased.
The attorneys also presented to the court a contract of sale entered into
with the Scripps-Howard newspaper interests. Under its terms "The
World" newspapers would be consolidated with the New York "Telegram",
now owned by Scripps-Howard.
Surrogate Foley reserved decision when the hearing concluded at 7:30
o'clock last night. Herbert Pulitzer, President of the Press Publishing Co.,
announced that "The World" and "The Evening World" would continue
to be published independently for the present.
The will of the late Joseph Pulitzer, founder of "The World," expressed
of "The
the wish that his three sons, trustees, continue the publication
sons
World" newspapers after his death. Attorneys for Mr. Pulitzer's
of heavy
asked the court to relieve them of this responsibility because
losses sustained by the newspapers over a period of years.
appeared
Max D. Steuer, representing Paul Block, newspaper publisher,
client was willing
at the hearing to oppose the sale. air. Steuer said his
Scripps-Howard.
to offer $500,000 more than the contract price with
Steuer was given
At a conference of attorneys after the hearing Mr.
until 11 o'clock this morning to make a concrete offer.
I. Sheridan and
The sale was also opposed at the hearing by Thomas
of the late
Vincent Leibell, attorneys for the 15 minor grandchildren
were unfair to the
Joseph Pulitzer. They asserted the terms of the sale
grandchildren, who are the eventual beneficiaries of the trust.
eventually
According to the contract with Scripps-Howard, $5,000,000
the Scripps-Howard interests,
will be paid to the estate. Roy Howard, of
in the
newspaper
for a
testified that this is the largest price ever paid
get only the good-will and
country, considering that his interests would
the title.
Banker's Valuation.
Central Hanover Bank &
Frederick J. Fuller, Vice•President of the
World" properties at "not exceeding
Trust 0o., testified he valued "The
residuary trust.
$2,000,000." The bank is co-trustee of the
two brothers had signed the
Herbert Pulitzer testified that he and his
approved by all of the
contract with Scripps-Howard which has been
stockholders, and all of
directors of the Press Publishing Co., all of the
witness's two sisters. The
the children of Joseph Pulitzer, including the
contract was signed Jan. 31.
Jackson of the firm of
Before Herbert Pulitzer took the stand, Mr.
delay in the sale of
Jackson, Fuller, Nash & Brophy, declared that "any
is naturally
'The World' would wreck it. The morale of its personnel
disrupted."
trustees with the
Herbert Pulitzer then explained the negotiations of the
Scripps-Howard interests. The examination by Mr. Jackson continued as
follows:
[VOL. 132.
Purchased in 1883.
"The World", then a moribund newspaper with a circulation of less than
10,000 daily, was bought by the late Joseph Pulitzer May 10 1883, and
dedicated to progressive and liberal journalism. Although for nearly 20
years suffering both the physical ills of an invalid and loss of sight, the
founder of the paper let nothing stop his activity, and during those years
brought "The World" to recognition as one of the country's most liberal
and progressive newspapers and to a circulation of over 800,000 daily.
Prior to its purchase by Mr. Pulitzer the paper had gone through two
previous regimes, one by a group of religious minded people desirous of
having a class journal and later by a group headed by Jay Gould and
Thomas A. Scott, who used the paper to further their personal ambitions,
so that when Joseph Pulitzer acquired it the paper was little but a name.
Made Itself Felt.
From the beginning of his ownership the paper began making itself felt,
conand rapidly earned the respect of the entire country. Mr. Pulitzer's
rights
ception of a newspaper was an organ for the championship of human
and he began crusading against the evils, municipal and otherwise, of his
day in a fashion that gained his newspaper wide recognition.
sent by
His ideal of the perfect newspaper was contained in a cablegram
25th
him from Europe on May 10 1908, and read at the celebration of the
anniversary of his control of the property. It was:
"Not self-admiration, but self criticism and self-Improvement are the passions
of The "World." Twenty-five years ago it was dedicated to truly democratic
ideals, to the cause of the people.
of overzeal, but they were
'The 'World' may have committed a thousand faults
heart. The 'World' will remain
faults of the hand and not those of the head orThe
will persevere with
'World'
parties.
from
forever independent, detached
of party. But it will
burning zeal in fighting corruption and privilege, regardless
who, posing as friend of
also fight humbugs, demagogues, faithless office holders,
the people, pursue their own pecuniary and personal ambitions. God grant that
The 'World' may ever strive toward the highest ideals."
The hearing begun on Feb. 24 was continued on Feb. 25
by 'Surrogate Foley, who stated on that date that he would
render his decision not earlier than Feb. 26. Details of the
Court's action were given as follows in the "World" of
Feb. 27:
Sale of "The World", "The Evening World" and "The Sunday World"—
the three newspapers that Joseph Pulitzer, the elder, left in trust for his
heirs—was authorized early this morning by Surrogate James A. Foley.
Immediately the trustees of the estate announced the transfer of the
newspapers to the Scripps-Howard chain, locally represented by the
"Telegram".
They will be known hereafter--for this is the last edition of "The
World" in its old state—as "The World-Telegram." "The Evening World"
appeared for the last time last evening. . . .
Surrogate Foley's opinion on the application of the three trustees, Ralph,
after it had been
Joseph and Iferbert Pulitzer, was handed down 13 hours
scheduled, in the darkened chambers of the Hall of Records.
It had been in composition more than two days.
Though the Surrogate approved the sale, he refused to pass on the
of the properties
specific contract framed by the trustees for the disposal
to the Scripps-Howard interests.
Respentsibility Pulitzers'.
The responsibility for a specific contract, he judicially announced, rests
solely on the Pulitzers, as the administrators of their father's trust.
the power
"I am firmly of the Opinion that the Surrogate's Court entirely lackssale
of the
to approve the specific terms of the contract submitted here for the Corp.
(the
assets of the Press Publishing Co. to the Consolidated Newspaper
Scripps-Howard interests).
a
of
affairs
corporation."
internal
the
over
jurisdiction
"This Court has no
PRIL
41931.]
FINANCIAL CHRONICLE
The details of the bids made for the newspapers, he ruled. "should be
submitted to the Press Publishing Co."
The decision-20 closely written pages of it though there were—cast
,cant light on the current situation of the three properties involved.
The sale was authorized. But, before the offer of the Scripps-Howard
chain was made a reality, three other bidders had intervened in the
transaction.
Statement by the Trustees.
The Pulitzers made the following announcement to their employees:
"To Be Posted on Bulletin Board:
"We, the trustees of the Newspaper Trust under the will of Joseph Pulitizer,
deceased, regret to announce that economic conditions have
compelled the sale of
The 'World' newspapers. The purchaser is the New York 'Telegram,'
a ScrippsHoward newspaper. Certain of the employees will be continued during the
liquidation of the company's affairs; certain others will, if they so desire, become associated
with the New York 'Telegram.'
"Provided that the sale is consummated under the terms of the contract as submitted to the Surrogate's Court, the trustees will set aside the sum of $500,000 to
be distributed among employees according to the
terms of a plan to be announced
later.
"In reaching this conclusion the trustees felt
greatest sympathy for the desires
of the mployees to acquire ownership of The the
'World newspapers. They gave to
their efforts in this direction the most careful and
earnest consideration, but found
that their duty as trustees and their contracture'
obligations required them to
adopt the course here announced.
"Al inquiries should be addressed to the Press Publishing Co.
"RALPH PULITIZER.
"JOSEPH PULITIZER,
"HERBERT PULITIZER, Trustees."
Other Bids.
Frank Gannett, publisher of the Brooklyn "Eagle" and of other newspapers; William Griffin of the New York "Enquirer", and J. David Stern,
publisher of the Philadelphia "Record" and the Camden "Courier" all
made offers for "The Worlds".
In addition, it was announced late yesterday that the employees of "The
World", banded into "The World" Employees' 0o-operative Association,
had raised more than $1,500,000 toward the purchase of the papers, with
pledges of support from bankers and the public.
This offer, said the Surrogate, the Court was not empowered to entertain. It, like the other bids, he held, should have been submitted to the
Press Publishing Co., publisher of "The World" newspapers.
Two Issues.
There were two main questions the opinion had to settle, Surrogate
Foley held—whether the Court might authorize the sale of "The World"
newspapers, and whether, if the sale were authorized, it might approve the
terms of a specific contract, the contract made by the Pulitzers with the
Scripps-Howard interests Jan. 31, and introduced in evidence with the
Petition to allow the sale.
The first was quickly settled.
"I hold that there is an implied power of sale in the will," read the
decision, "which in the present crisis may be exercised by the trustees."
That phrase stood in the first page of the opinion, and the Surrogate
explained that is his judgment "the dominant purpose of Mr. Pulitzer must
have been the maintenance of a fair income for his children.. . . ."
Mr. Pulitzer's Intent.
"A man of his sagacity and ability could not have intended that from
mere vanity, the publication of the newspapers with which his name and
efforts had been associated, should be persisted in until the entire trust
assets were destroyed or wrecked by bankruptcy or dissolution."
The second question of importance that the Surrogate ruled on was the
approval or the disapproval of the specific contract for the sale made
between the Pulitzers and the Scripps-Howard interests.
That problem he decided thus:
"The responsibility of the Selection of the purchaser, the details of the
transaction, the selling price, the terms of payment and the credit of the
purchaser rests on the officers and directors of the corporation."
The losses which the Pulitzers, in their petition for the sale, computed
for the three "World" properties, Surrogate Foley held were of four years'
standing. They did not, he pointed out, date from the market crash of
1929, but had preceded it by two full years.
Extreme Circumstances.
"The extreme circumstances in the pending case," he wrote, "surely
justify the alternative of disregarding the directions of the testator, if
mandatory, and of reading into the will a power of sale."
The Surrogate's finding, tentatively scheduled for 11 a. in. yesterday and
later for 6 p. m., was postponed again early in the evening with the
decision expected momentarily.
Outside the Surrogate's office, on the fifth floor of the Hall of Records,
the only lighted quarters in the building, more than 100 representatives of
newspapers and news services awaited promulgation of the ruling. Telephone wires were held open to "flash" the news, as they are held for
murder verdicts or for Presidential statements, and, on the ground floor
of the building, the camera brigade waited.
Mr. Stern's proposal, substitutions for a bid made by Paul Block, and
then withdrawn, was addressed to James W. Barrett, city editor of "The
World" and President of the employees' association, and was forwarded
to the Press Publishing Co. and the trustees of the estate, with a request
that it be considered at a conference to-day, with Alvin Untermyer present
as counsel for Mr. Stern, and with the indication that his offer will include
a bid for the tangible assets of "The World" papers, not included in the
Scripps-Howard proffer.
Frank Gannett, publisher of the Brooklyn "Eagle" and of a chain of
newspapers, sent from Florida word of his determination to file a proposal
better than that of the Scripps-Howard interests.
The offer, it was announced at Mr. Gannett's office, "includes a cash
payment of $500,000 and a binder which will guarantee a total payment
larger than the offer of the Scripps-Howard Co."
Stock Offer.
"In addition," read his statement, "it would embrace a proposal by
which a minority stock interest could be acquired by the men now on "The
World" who have been active in its management. Furthermore, Mr. Gannett
would manage "The World" properties in a manner to continue and perpetuate the general policies to which Joseph Pulitzer was committed and
which he stipulated in his will should always be associated with the
conduct of the pap:Ta."
From William Griffin, publisher of the Staten Island "Herald," the
"Jersey Press" and the New York "Enquirer", a Sunday newspaper, came
the third bid for "The World". In a letter to the trustees, he made a
price of $5,250,000 for all the assets, tangible and intangible, and outlined
a proposal no vest the stock ownership in the employees, "in the largest
measure consistent with voting control by me." He also requested a
conference with the trustees of the agate, at which his attorney, former
Surrogate Daniel F. Oohalan would be present.
2515
While these negotiations were afoot Gustavus A. Rogers, attorney for
the Employees' Co-operative Association, intervened formally in the proceedings before Surrogate Foley, citing, in the interest of "the principal
editors and managers of 'The World'," a clause in the will of Joseph
Pulitzer that called for the distribution of 10% of the stock of the Press
Publishing Co. among them.
A memorandum was filed in the Surrogate's office in the names of Mr.
Barrett and of Foster Gilroy, assistant business manager of "The World,"
with notice of their appearance in the case.
"We respectfully submit that these editors and managers are entitled
to be heard in this proceeding upon the subject of the sale and upon all
other question that may come before the court for adjudication," the
memorandum set forth. "The editors and managers, although having a
direct interest under Article 6 of the will, have not been cited in the
proceeding."
Mr. Stern's offer of support for the employees' co-operative movement
was one of a score of financial pledges to the movement.
Gov. Roosevelt, in Albany, added a promise of $2,500 to the $5,960
already pledged by legislative correspondents. Mayor Walker offered a
small amount for the furtherance of the plan.
At the same time J. F. Bresnahan, business manager of "The World" and
"The Evening World", announced that two New York banking institutions
had voluntarily communicated with him and expressed their interest in
financing the newspapers, with a proviso for stock ownership by the
employees.
Block's Announcement.
Mr. Block announced his withdrawal yesterday in a letter to the Press
Publishing Co. It was not until after the Surrogate's hearing, Wednesday,
this letter said, and until after he had submitted his bid at 6 p. in. on
that day that he "had an opportunity to learn what had transpired between
Mr. Roy Howard and the Messrs. Pulitzer, as trustees of the estate."
Mr. Block's letter continued:
"I then ascertained, for the first time, that a contract had been concluded
between Mr. Howard's company, through Mr. Howard, and the trustees
of the estate.
"I do not wish to interfere with a completed contract. I do not regard
that it would be fair to step in after negotiations had been concluded and
then make an offer incorporating better terms than those upon which the
parties had agreed."
Mr. Block also said he did not wish to oppose the efforts of the employees
to obtain control of the papers.
Early yesterday afternoon Mr. Howard expressed in a public statement
his sympathy with the employees' movement to take over "The World"
newspapers, but qualified it with the opinion that "in my judgment there
Is not, in the present situation, the slightest possibility for success for the
property under employee management."
From the New York "Times" of Feb. 28 we take the
following:
The presses were silent in the old Pulitzer Building, at 63 Park Row,
yesterday, and in the city room the men who once made it hum with the
clatter of their typewriters talked of old times to avoid thinking of the
future.
"The World" newspapers, the property of the Pulitzers for nearly 50
years, had passed into the hands of the Scripps-Howard syndicate, not
to die but to be "born again", in the words of Roy W. Howard, head of
the corporation which bought them.
In the place once occupied on the newsstands by "The Evening World",
which was snuffed out without having a chance to bid farewell to its
public, there appeared a new newspaper under the combined masthead
of "The Evening World", "The New York Telegram" and "The World",
with its vignette on the Statue of Liberty between two globes.
For the first time since the Scripps-Howard interests bought "The Telegram", lour years ago, that newspaper published news dispatches of the
Associated Press. Mr. Howard made it clear that he intended to retain
"The Evening World's" membership, although three years ago he scrapped
one in favor of United Press, which his organization controls.
A. P. Membership for Sale.
The Associated Prose membership of "The Morning World", Mr. Howard
said, is for sale to the first person that makes a "suitable bid." He could
have sold ii'"six dimes over" yesterday, he said, if he had been willing
to sell with it the right to use the masthead of the newspaper he scrapped,
as soon as Surrogate James A. Foley ruled that the heirs of Joseph
Pulitzer had the right, as directors of the Press Publishing Co., which
owned it, to sell to any one they chose, despite a prohibition in their
father's will.
In order to conform to the technical requirement that an Associated
Press membership be used or die, a skeleton staff worked in the offices
of "The World-Telegram" last night getting out a newspaper called "The
New York Repository", which will be published on a limited scale until
Mr. Howard parts with the membership which was valued by experts at the
hearings before Surrogate Foley at $500,000.
The last editions of the defunct "World", carrying its valedictory by
Walter Lipptnann, were bought up by collectors, hoping that their value
will increase. Mystery, meanwhile, surrounded "The New York Repository", which it was understood would be printed this morning and be
limited to 250 copies. Employees of the Scripps-Howard chain were
secretive about its advent, saying that details of the plan for keeping the
Associated Press membership alive had been worked out by officers of that
organization and theirs and could not be discussed. . . .
Plans of the Pulitzers.
No formal announcement of the personal plans of the Pulitzers was
obtained, but it was understood that Herbert Pulitzer, who is 35, will retire
from business. He had a six-tenth interest in the newspapers he has sold.
Joseph Pulitzer, who is 46, will continue the publication of "The St.
Louis Post-Dispatch", which he has managed as profitably as his father.
Ralph, who is 52, and who acted as publisher of "The World" newspapers
until last year, when Herbert assumed control, Is expected to spend the
rest of the winter in the South.
That was the human side of the picture. As for the business aide,
the new "World-Telegram", which absorbed a few members of "The
World" staffs, it printed thousands of extra copies, anticipating a greatly
enlarged sale, and adopted the slightly higher advertising rates of the
competitor it had absorbed.
Publication of "World?' Almanac to be Continued.
The "World" Almanac, published for many years by •the Pulitzers as a
reference volume, will be printed henceforth by the Scripps-Howard interests, with Robert H. Lyman, its editor under the old regime, in charge.
The "World-Telegram" announced that General Pershing's memoirs, which
2516
FINANCIAL CHRONICLE
[Vou 132.
Whenever in the sole discretion of the President he shall determine that any
maximum price, wage, rent, commission or reward should be adjusted either upward
or downward, he is hereby authorized to make and proclaim such adjustment and
such adjustment shall have the full force and effect under this statute of such price,
wage, rent, rate, commission or reward before such adjustment.
Would Classify Du:mines•
During the period of any war or emergency declared by Congress hereunder the
is
President
to
authorized
determine,
and by proclamation announce, what classes
A statement was issued, as follows, by Walter Lippman, of public service, or of dealers or manufacturers
of an article or commodity, shall
be required to operate under licenses, to fix the conditions of such licenses and to
editor of "The World":
grant licenses under such conditions. After such determination by the President,
"The Scripps-Howard chain of newspapers are a powerful influence in It shall be unlawful for any public service, dealer or manufacturer in such determined
American life. Their courage, sincerity, independence and sympathy have classes to engage in business without such license.
During the period of any war or emergency declared by Congress hereunder the
been tested and proved. While all mergers of newspapers have in them President
Is authorized to determine the order of priority in which any manufacturer
an element of chance, it seems to me that this merger is logical and dealer or public service in the United States shall fill customers' or other orders,
and,
after
such determination It shall be unlawful for any such manufacturer, dealer
World-Telegram'.
'The
to
success
great
wish
appropriate. I
"My personal plans have not been affected by the sale of 'The World'. or public service to fill such orders In any other order of priority.
My contract is almost completed, and last summer I told Mr. Herbert
Would Control Foreign Trade.
Pulitzer that when it expired I did not wish to continue as editor any
Mr. Baruch provided for the contingency of foreign biddings upsetting
longer than he might think was necessary to assist in the plan of reorganiza- the set price structure with the recommendation that the Government itself
tion which was then contemplated. I told him that I felt that after seven "have almost plenary control over foreign trade," selling in the export
years of continuous responsibility for the editorial page of 'The World', market at world prices and "using the profit to buy necessitous imports at
an intermission seemed to be in order, and that I had made plans to travel inflated world prices and sell to domestic needs at the controlled schedule."
and then settle down to do some writing."
The War Department would have no authority over this industrial
mobilization in Mr. Baruch's plan, as such a system would be "absolutely
impracticable."
Neither would any ordinary peace-time agency, he declared.
Bernard M. Baruch Before War Policies Commission
"It is absolutely impracticable to maintain in peace any such powerful
Submits Plan to Prevent War Profits—"Freezing"
agency as is necessary to administer the gigantic effort of national ecoof Prices by President Urged at Washington Hear- nomic mobilization," he said. "We should prepare a complete plan for
ing—Opposes Drafting—Views of Representative such an organization, but even that must be in the broadest terms.
"It is impossible to foresee the precise circumstance and requirements
Johnson and Others.
of any future war."
a
at
costs
industrial
The "freezing" of all prices and
Supplies Obtained by Pressure.
-normal level immediately on the outbreak of war was advoOther activities of the controlling organization in another war were
cated at Washington, on Mar. 6, by Bernard M. Baruch, New described by him through examples of organization used in 1919, which he
described as follows:
York financier and former Chairman of the War Industries
"We withheld Swedish iron from the Central Powers by buying it ourwar.
from
profits
removing
of
way
the
selves, persuaded Chile to disgorge nitrates by the discovery that her
Board, as the surest
in a Berlin bank, cajoled from Spain the
Mr. Baruch was testifying before the War Policies Com- gold reserve was sequestered dangling
before her a supply of ammonium
mules she had refused us by
a
said
Chairman,
is
Hurley
Secretary
which
mission, of
phosphate for which she was starving, procured jute at a reasonable price
Washington dispatch to the New York "Times", from which by threatening to cease the withdrawal of silver dollars from circulation,
we had done to stabilize Indian currency, kc."
we quote. Further indiciting Mr. Baruch's proposals,'the which
Adoption of his plan, Mr. Baruch said, would accomplish the following
dispatch said:
results for the country:
"(1) It would pass from a peace to a war status with a minimum of
Declaring that "In modern war administrative control must replace the
law of supply and demand," Mr. Baruch went deeply into his own war- confusion, waste and loss.
which
law
proposed
"(2) It would mobilize war supplies almost as quickly as it could
time experiences and submitted to the Commission a
he held to be sufficient authorization to allow the instant formulation of mobilize men.
"(3) It would reduce the cost of war by 50%, and I believe by an
emergency measures.
"'To measure inflation of prim and profit we must have some norm," he even greater figure.
"(4) It would eliminate war profits and inflation.
testified. "The obvious norm is the whole price structure as it existed
"(5) It would preserve its credit and its economic prestige throughout
on some antecedent date near to the declaration of war on which the
to
said
be
can
demand
and
normal operation of the natural law of supply
the world.
price.
have controlled
Holds Plan iVould Promote Peace.
"That determined, we need a method of freezing the whole price struc"(6) Its war effort would be conducted with less interference with
ture at that level. The obvious way to do this is simple: By proclama- normal economic processes and the lives of the civil population than has
tion to decree that every price in the whole national pattern, as of that ever been the experience of any nation in the history of the world.
determined date, shall be one maximum that thenceforth may be charged
"(7) It would conserve its resources and preserve the morale of its
for anything, rents, wages, interest rates, commissions, fees, in short, the people to such an extent that it would be able to outlive any antagonist
commerce."
in
service
and
item
every
price for
in a long-drawn struggle.
"(8) It could pass from a war status back to a peace status with a
Favors "IVork or Fight" System.
that has hitherto been
Such work would accomplish two purposes, Mr. Baruch contended. It minimum of the prostrating economic aftermath
in a great war.
would eliminate surplus war profits and materially reduce the expenses the invariable experience of every ex-belligerent
"(9) The efficiency of the combined military and economic machine
of war. Such a system would have cut the cost to the United States of
that could be derived from these policies would constitute this nation an
the World War possibly 60%, he estimated.
of any military expert,
Mr. Baruch emphatically opposed the conscription of men or of money, instrument for war effective beyond the imagination
the possibilities of any
saying that regulation of labor and capital would work out much more even of this advanced date, powerful beyond
antagonists.
of
combination
any
of
effectively, gaining the desired results while leaving manufacturing, finance antagonist and perhaps
"(10) Considering the obvious fact that the military aspirations of this
and other business in the hands of those equipped to deal with them.
the mere acceptance of
In regulating the use of men and money to a common end, Mr. Baruch nation will never disturb the peace of the world,
organization here suggested
said, he favored the "work or fight system" which was employed finally (and deliberate provision for) the kind of
the peace of the world, and the latter
in the World War. He regarded this as "compatible with our institutions would go very far toward keeping
and far more effective than any chain-gang or any impressment that could result, I take it, is the hope and aim of all of us."
have been running in "The World" simultaneously with publication in
The New York "Times", will be discontinued in the consolidated newspaper.
The yellowed clippings in the "morgue" of "The World" newspapers,
the only tangible asset acquired by the Scripps-Howard interests, were
claimed by one of their representatives during the day and will be moved
eventually to the 'World-Telegram" Building.
be invented."
The Commission, whose membership includes Cabinet officers, and Senators
and Representatives of both parties, appeared to agree generally with Mr.
Baruch's proposals, which were embodied in a detailed brief which he
read to the Commission.
Some of the members who had not had contact with the Government in
war-time evidently were amazed at its multiple and complicated duties,
which Mr. Baruch described from his experience as the guiding force of
the central controlling body of war business.
Planned Economies for Nation.
He described the inflation which already had come to business through
the bidding of foreign nations for supplies, and testified that this was
further complicated, on the entry of the United States into the World War,
by the fact that various Government agencies all began bidding against
each other.
It developed that the Navy bought far more than it could use before a
stop was put to Ito purchases.
On the other hand, Mr. Baruch added, stringent economies for the
nation which had been worked out never came to pass because of the
armistice at an unexpectedly early date.
"Had the war gone on another year,"'he testified, "our whole civil
population would have gradually emerged (as wardrobes and inventories
became exhausted) in cheap but serviceable uniforms.
"Types of shoes were to be reduced to two or three. The manufacture
of pleasure automobiles was to cease. Flaps for pockets and unnecessary
trim in clothing would have disappeared.
"Steel had already been taken out of women's corsets."
Proposes War-time Law.
Based on the lessons of that work, Mr. Baruch commended to the Committee's attention the following proposed draft of a law requiring no
further action in peace-time than its mere existence in the statutes:
That, when ever Congress shall declare war or the existence of an emergency due
to the imminence of war,then,from and after a date prior to such declaration, which
date the President Is hereby authorized and directed to determine and announce,
It shall be unlawful for any person to buy,sell or otherwise contract for and service,
right or thing at a higher rate, rent, price, wage, commission or reward than was In
effect at the date to be determined.
On Mar. 9 support of the plan of Mr. Baruch for "freezing" all prices at the normal status to "take the profit out
of war" was expressed at a hearing of the War Policies
Commission by Representative Royal C. Johnson, Republican, of South Dakota; Rear Admiral Samuel McGowan,
retired, war-time Paymaster-General and Chief Supply
Officer of the Navy, and Brigadier General John R. Delafield, of the Reserve, former Chairman of the War Department Board of Contract Adjustment. The "Times" dispatch,
Mar. 9, noting this, added:
Representative Johnson has had a bill before Congress since 1922 providing for conscription of the entire population and all material resources
of the country in time of war, and also is the author of a resolution for
a constitutional amendment providing further authority of this nature.
While realizing that it probably was impossible to obtain favorable
action, he said he had advocated such measures with the collaboration of
leading lawyers in the American Legion, including Hanford ,MacNider,
now American Minister to Canada, in the hope of arousing debate which
would lead to some practical step. Mr. Johnson promised to co-operate
with the Commission and back proposals it may make to the President.
"My idea would be to conscript everything," he testified, "capital and
all, but we can't do that because of certain classes in this country."
He especially urged the Commission to make some definite recomMendation in order to head off what he believes will be "the wildest propositions
that cnn be conceived" that may be introduced in the House next session
under the revised rules.
Admiral McGowan, after giving emphatic approval of the Baruch plan,
offered the following proposal:
"Amend the Constitution now so as to require that before war can be
declared Or participated in (except only in the event of attack or invasion)
there must be a referendum ; that, if the majority of the votes cast are for
peace, the e the matter ends; that, if the majority be for war, every ablebodied ma e citizen between the ages of 18 and 35 shall be drafted for
APRIL 4 1931.]
FINANCIAL CHRONICLE
service, and that from the day war is declared until peace is finally concluded there shall be no increase in any price or wage."
Admiral McGowan said the Commission would have to work out the
form of an amendment which would not upset the authority now vested
in Congress and the President to declare war, the principal of his suggestion being, he said, to provide for considered judgment on such a step.
Questioned by Senator Robinson, Democrat, of Arkansas, the witness
expressed the belief that popular referenda would have been in favor of
the United States entering every war in which it has engaged.
Mr. Johnson, who is Chairman of the House Veterans' Committee, declared the referendum idea was impracticable, while General Delafield
held it was necessary.
Accuses Government of "Lagging."
General Delafield said it had been found impossible in the World War
to make contracts on specified terms with manufacturers, as no manufacturer knew from day to day what prices he might have to pay for
materials and labor.
He criticized the Government sharply for lagging behind the plans
outlined in the National Defense Act, passed in 1922.
Directing his remarks to the members of Congress on the Commission
and to Secretary Patrick J. Hurley, the Chairman, he said:
"I need not elaborate on the fact that you are not living up to the
National Defense Act. Every year the munitions reserves are falling
further behind and we are slipping in almost every activity."
Middle West.
In the State of Mississippi, a press dispatch from Ripley
in that State on Mar.24, printed in the New Orleans"TimesPicayune" of the following day, stated that the Bank of
Ripley, which closed its doors the last day of February,
is in a solvent condition, according to a statement issued by
representatives of the State Banking Department upon
completion of their cheek-up of the institution. The recommendation of the examiners, the advices went on to say,
is that the bank may be reopened, provided the officers and
directors secure full co-operation of depositors, which will
mean a "freezing" of deposits for a period of years.
Advices from Lexington, Miss., on Mar. 24, printed in
the "Times-Picayune" of Mar. 25, with reference to the
Merchants' & Farmers' Bank & Trust Co., which suspended
business the latter part of February, stated that at a largely
attended meeting of the depositors held at the Lexington
Court House on Mar. 24, H. H. Johnson, Vice-President
of the bank, outlined a plan approved by the State Banking
Department whereby, he said, the institution can be reopened under a "frozen deposit" agreement, deposits to
be payable 20% Jan. 1 1932,25% Jan. 1933,25% Jan. 1934,
and 30% Jan. 1935, with interest at 2% per annum. J. W.
Gaulding, special agent of the Mississippi State Banking
Department, in the same dispatch was reported as saying
that a thorough inspection of the bank's assets had been made
and that the institution was solvent. In conclusion the
advices said:
Banking Situation in South and
2517
closing of the Central Bank & Trust Co. of Asheville,"
had reopened for business on that day.
Another North Carolina bank, the Farmers' & Traders'
Bank of Weaverville, which suspended business last November, reopened on Apr. 2, according to advices by the
Associated Press from Weaverville on that date, which went
on to say:
The Mayor made a speech and the students of the public schools marched
In a body to the bank for exercises held in the street.
The bank suspended during a fmancial crisis precipitated in Western
North Carolina by the failure ofthe Central Bank and Trust Co.of Asheville.
In the State of Kentucky, on Mar. 25, Joseph S. Laurent,
as receiver for the Banookentucky Co. of Louisville, was
authorized and directed by Circuit Judge Lafon Allen to take
such steps as are appropriate to the rights of the company
as the holder of 6,925 shares of stock of the First National
Bank of Paducah, Ky., to confirm the sale of the bank's
assets to the Paducah City National Bank, according to the
Louisville "Courier-Journal" of Mar. 26, which continuing
said:
Judge Allen's order also authorized Mr. Laurent to collect the proceeds
of the sale to the extent of his interest as a stockholder in the bank.
The receiver also was directed to return to Fain W. King. Louis Rubel,
Dow Wilcox, Edson Hart, Louis F. Kolb, H. L. Richardson, Oscar C.
Hank, Jesse Well, Martin J. Yopp and T. J. Stahl. directors of the First
National Bank, Paducah. their respective certificates of stock for 50 shares
each in the bank, which came into the receiver's hands with the property
of Bancokentucky Co. As a condition of delivery, the directors shall
surrender to the receiver their receipts issued by the Bancokentucky Co
for the certificates, the order stipulated.
In his petition for advice, Mr. Laurent said on Nov. 25 1930, he possessed
as part of Bancokentucky assets. 6,925 shares ofcapital stock of the Paducah
National Bank, for which Bancokentucky Co. had exchanged 24,930 shares
of its capital stock June 30 1930. He also came into possession of the 10
certificates, aggregating 500 shares and representing the so-called "qualifying shares"for which Bancokentucky was to issue 180 shares of stock in
exchange for the directors' certificates.
Mr. Laurent said teat investigation convinced him that Bancokentucky
did not pay for the shares or own the beneficial interest in them, having
custody merely to aid in its control.
He reviewed that Mr. Well demanded delivery of the certificates on Nov.
211930, and that previously, sometime dui hag the night of Nov. 16 1930.
the property and assets of the First National Bank of Paducah. was sold
to the City National Bank for $100,000 at a called meeting of directors.
at which all were present except James B. Brown.
Mr. Laurent said he had gathered the opinion that the assets' net value
were about 8125,000. but that he is satisfied that the sale price of the bank
was reasonably fair.
On Mar. 30 suit was filed in the Federal District Court
against the directors of the National Bank of Kentucky,
Louisville, by attorneys for Paul C. Keys, receiver for the
institution, for recovery of a sum in excess of $14,000,000
for loses sustained through alleged wasteful, improvident
and illegal acts of management. The "Courier-Journal,"
from which the above information is obtained, continuing
said in part:
Cards were passed out to depositors and hundreds swarmed to the center
of the court house and handed in their signed agreements. As soon as all
cards are received the bank will reopen.
The petition, 260 pages in length, covers transactions of the bank over
a ten-year period analyzed by the receiver, and seeks damages on every
loss for which, in his opinion, the directors are responsible.
Among the items, on which recovery is sought, is $2,240,000 in diviThat the Coffeeville Bank at Coffeeville, Miss., which
made over a period from June 10 1927. to Oct. 1 1930, which the suit
suspended business on Jan. 8, was reopening on that day, dends
alleges were illegally declared because the losses and bad debts of the bank
was indicated in the Jackson "News" of Mar.26, which said: over that time exceeded the payment.
Other items include excessive loans on Bancokentucky stock: loans over
Reopening of the Coffeeville bank . . . was reported to-day (Mar. 26)
by J. S. Love, State Superintendent of Banks. Advices from officials there, the legal limit of 10% of the capital stock and surplus, and other loans,
Mr. Love said, indicated the institution's resumption was well supported which, in the receiver's opinion, would not have been recommended by
the exercise of ordinary and reasonable care and judgment.
In the wide area of Yalobusha County it serves.
The suit was prepared by E. B. Stroud, Dallas attorney, and the law
J. F. Provine, brother of Dr. J. W. Provine of Mississippi College, is
President of the institution, with W. H. Bailey. as Vice-President and firm of Peter, Lee, Tabb, Krieger & Heyburn. Mr. Stroud, specialist in
the matter of litigation resulting from liability on bank stock, was engaged
F. E. Collins, Cashier.
At its last report In Banking Department files, the bank, capitalized by Comptroller of the Currency John W. Pole to aid in thqfiling of the suit,
at $23,500 and with a surplus of $20,000, carried deposits approximating which took two months to prepare.
A specific sum is not asked for in the suit, although it seeks recovery on
$350.000.
various losses listed which total between $14,000,000 and $15.000,000.
A dispatch from Clarksdale, Miss., on Mar. 24, printed
The directors were accused in the petition of failure to lay down any
in the New Orleans "Times-Picayune" with reference to the rules of guidance for the conduct of the bank and with failure to inquire
how long notes might be overdue or whether demand for payment of deapproaching reopening of the Coffeeville Bank, said in part: mand
notes had been made or whether assets belonging to the bank should
The stockholders have signed up for an assessment 0(60% of their stock be sold. The only loan, however, of which they had no knowledge was a
and 98% of the depositors of the closed bank have signed an agreement $300,000 credit extended to Caldwell & Co. (Nashville), shortly before the
to "freeze" funds for a period of three years.
bank closed, the suit set out. . . .
The sum of 31.650,000 was sued for on losses sustained by the bank
The addition of seven more banks by Apr. 15 to the list
on advances made to Caldwell & Co. and Southern Banks, Inc., a Caldwell
of State institutions reopened in Mississippi since the concern.
December-January period of financial unrest, was predicted
by State Superintendent of Banks Love on Mar. 27, according to the Jackson "News" of that date. The early reopen..
ings contemplated are: Merchants' & Farmers' Bank, Starkville; Bank of Myrtle, at Myrtle; People's Bank, Calhoun
City; Merchants' & Farmers' Bank & Trust Co., Lexington;
Commercial State Bank, Goodman; Bank of West, at West,
and the Booneville Banking Co., Booneville. The paper
mentioned also quoted Mr. Love as saying:
Officials at all the institutions are bending every effort to meet department requirements, and in those sections where depositors' meetings have
been held utmost unanimous pledges of co-operation have been forthcoming.
In the State of Illinois, three Chicago suburban banks, the
Austin National Bank and the Columbia State Savings Bank,
both in Austin, and the First National Bank of Oak Park (a
suburb which adjoins Austin) failed to open for business on
Mar. 30. Associated Press advices from Chicago, reporting
the closings, went on to say:
Alfred P. Leyburn, Federal Reserve Bank Examiner, said the National
banks were closed by the Boards of Directors to protect interests of depositors.
At the regular bank call five days ago the Austin National gave its deposits as 52,169,000, Oak Park as 81,727,000 and the Columbia bank as
$13.'76.
ierre Jay to Be Chairman of Board of Newly Organized
In the State of North Carolina, Associated Press advices
Fiduciary Trust Company of New York.
from Waynesville on Mar. 30 reported that the Citize
Bank & Trust Co.,"which closed last fall during the Western
The Fiduciary Trust Co. of New York, which has received
North Carolina financial emergency precipitated by die its charter from the Superintendent of Banks, plans to open
2518
FINANCIAL CHRONICLE
for business on May 15, on the 30th floor of No. 1 Wall
Street, with capital, surplus and reserves of $2,400,000.
The principal officers of the company are Pierre Jay,
Chairman of the board of directors, and D. W. MacCormack, President. Mr. Jay was for twelve years Chairman
of The Federal Reserve Bank of New York, and has recently
returned from a service of three and one-half years in Berlin
as Deputy Agent General for Reparations Payments.
The company is described as an independent institution,
' and its activities, it is announced, will be limited to personal
trust and fiduciary work, together with the receipt of deposits not involving lines of credit. Corporate fiduciary
work and commercial banking business will not be transacted, and the merchandising of securities will not be undertaken, either directly or indirectly.
Colonel MacCormack, the President, was for five years a
member of the American Financial Mission charged with the
organization of the Persian finances, and prior to becoming
President, was in charge of the organization and administration of the Receivership Department of the Irving Trust Co.
of New York.
The board of directors of the Fiduciary Trust Co. will
include the following:
[VOL. 132.
Agricultural Commission, H. Lane Young;
Bank Management Commission, Fred W. Ellsworth;
Bankruptcy Committee, M. R. Sturtevant;
Commerce and Marine Commission, Fred I. Kent;
Economic Policy Commission, Rudolf S. Hecht;
Fiftieth Anniversary Committee, Lewis E. Pierson;
Finance Committee, Harry J. Haas;
Foundation Trustees, J. H. Puelicher;
Public Education Commission, J. H. Puelicher;
Insurance Committee, W. F. Keyser;
Membership Committee, Gilbert L. Daane;
Protective Committee;
Public Relations Commission, William G. Edens;
Federal Legislation Committee, E. W. Stout;
Special Committee on Section 5219 U. S. R. S., Thornton Cooke;
Taxation Committee, Thornton Cooke;
State Legislation Committee, William J. Field.
Bonds of Department of Cundinamarca Drawn for Redemption
J. & W. Seligman & Co., fiscal agent, have issued a
notice to holders of Department of Cundinamarca external secured 6%% sinking fund gold bonds, 1928, due
November 1, 1959, that $71,000 principal amount of these
bonds have been drawn for redemption on May 1, 1931,
at par and accrued unpaid interest.
Foreign Trade a Government Monopoly in Persia
Thomas H. Blodgett, President, American Chicle Co.; F. Haven Clark,
The following advices were made available by the Deof Scudder, Stevens & CI rk, investment counsel; Grenville Clark, of Root,
Clark & Buckner, attorneys; Robert H. Gardiner, trustee; David F. Hous- partment of Commerce at Washington on March 22:
Foreign trade became a Government monopoly in Persia on Febton, President, The Mutual Life Insurance Co. of New York; DeLancey
K. Jay, attorney; Pierre Jay, Chairman of the board; D. W. MacCormack, ruary 25, 1931. As passed by Parliament, the right of import and
President; Charles N. Mason, President, Electrical Securities corp.; export of all natural and industrial products and the fixing of a
Frederick Pope, President, Nitrogen Engineering Co.; David H. McAlpin temporary or permanent ratio of said imports and exports is granted
Pyle, The Pyle Estates: Elihu Root Jr., of Root, Clark & Bucker, attor- to the Government. The Government may prohibit the importation of
neys; Theodore T. Scudder, of Scudder. Stevens & Clark, investment foreign goods into Persian territory until the passage of the supplecounsel, and Bronson Winthrop, of Winthrop, Stimson, Putnam ,k Roberts. ment to this law. This supplement, which is now in committee, re.
quires importers of foreign goods to export an equivalent amount of
attorneys.
Persian products. The status of foreign merchandise now at Persia
Executive Council of American Bankers' Association to ports under the new regulaticns has not yet been fixed.
Meet at Augusta., Ga., April 13-16.—Reports on Bank
Failures, Group and Chain Banking to Be Considered.
The Executive Council meeting of the American Bankers Association, which will be held at the Bon AirVanderbilt Hotel, Augusta, Georgia, April 13-16, will
consider reports on a number of important questions of
Association and banking policy such as bank failures,
promotion of scientific bank management, developments
,in branch, chain and group banking, tax and other legislation affecting banking and other topics. Final preparation of reports on various proposals to be submitted to
the consideration of the Council will be worked out in the
following Committee meetings Monday, April 13:
Administrative, On Call of Chairman;
Agricultural Commission, 9:30 A.M.;
Bank Management Commission, 2:00 P.M.;
Bankruptcy, On Call of Chairman;
Commerce and Marine Commission, 12:30 P.M.;
Economic Policy Commission, 10:30 A.M.;
Federal Legislation, 3:30 P.M.;
Federal Legislation, with State Chairmen of Federal Legislative
Council and such bankers as may be interested in Federal Legislation,
3:45 P.M.;
Fiftieth Anniversary, 2:30 P.M.;
Finance, On Call of Chairman;
Foundation Trustees, 3:00 P.M.;
Insurance, 8:30 A.M.;
Membership, On Call of Chairman; National Bank Division Executive Committee, 9:30 A.M.;
Protective, On Call of Chairman;
Public Education Commission, 4:00 P.M.;
Public Relations Commission, 9:00 A.M.;
Savings Bank Division Executive Committee, 9:30 A.M.;
Special Committee on Section 5219 U. S. Revised Statutes, On Call
of Chairman;
State Bank Division Executive Committee, 9:30 A.M.;
State Legislation, 2:13 P.M.;
State Legislation, with State Chairmen of State Legislative Council
and such bankers as may be interested in State Legislation, 2:30 P.M.;
State Secretaries Section Board of Control, 2:00 P.M.;
Tax Conference Under Auspices of Special Committee on Section
5219 U. S. Revised Statutes and Committee on Taxation, 9:30 A.M.;
Trust Company Division Executive Committee, 9:30 A.M.
The sessions of the Executive Council will be held as
follows: Tuesday, April 14, 9:30 A. M., 8:30 P. M.;
Wednesday, April 15, 9:30 A. M. Rome C. Stephenson
will report to the Council as President of the Association and also for the Administrative Committee. Reports will also be received from Executive Manager F. N.
Shepherd, Treasurer Grant McPherrin and General
Counsel Thomas B. Paton. Through the successive sessions the Presidents of the Divisions and Sections will be
heard as follows:
American Institute of Banking Section, Ben B. A1eY;
National Bank Division, Edmund S. Wolfe;
Savings Bank Division, A. C. Robinson;
State Bank Division, M. Plin Beebe;
State Secretaries Section, H. G. Huddleston;
Trust Company Division, Gilbert T. Stephenson.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
Arrangements were reported made this week for the sale
of a New York Stock Exchange membership for $300,000.
The last preceding sale was for $310,000.
Arrangements were reported made this week for the sale
of a New York Curb Exchange membership for $120,000.
The last preceding sale was for $137,500.
The second New York Coffee & Sugar Exchange memship of H. D. Stevenson was reported sold this week to
F. Shelton Farr for $10,000.
Arrangements were completed this week for the sale of
a membership on the Chicago Stock Exchange for $20,000,
unchanged from the last preceding sale.
At a meeting of the board of trustees of the Bank of New
York & Trust Co. on March 31, Edwin G. Merrill, who
became President of the New York Life Insurance & Trust
Co. in May 1920 and has been President of the Bank of
New York & Trust Co. since the merger in 1922, was elected
Chairman of the Board, and John C. Traphagen, who was
until recently Vice-President of the Chase National Bank,
was elected President. Mr. Merrill as Chairman of the
Board will continue in active service at the head of the
institution, and under his direction and that of Mr. Traphagens President, the general policies of the company will
be coiinued without change. Mr. Traphagen is 41 years
old. He began business in 1905 as messenger boy in the
bond house of George C. White & Co. In 1910 he went
with the Standard Statistics Co., of which he later became
Vice-President. In 1916 he entered the banking business,
becoming an Assistant Secretary of the Franklin Trust
Co. Shortly after the formation of the Mercantile Trust
& Deposit Co. by Chellis A. Austin in 1917, Mr. Traphagen became Treasurer of the institution and when the
Mercantile merged with the Seaboard National Bank in
1922 he became a Vice-President of that bank. He was
elected a director of the Seaboard National Bank in 1928
and upon its merger into the Equitable Trust Co. in 1929,
he continued as a Vice-President of that institution, acting
at the same time as Executive Vice-President and a director
of the Equitable corporation. When the Equitable Trust
Co. was merged into the Chase National Bank in the spring
of 1930, Mr. Traphagen became a Vice-President and
director of the Chase. The election of Mr. Traphagen as
a trustee of the Bank of New York & Trust Co. was reported
in these columns March 14, page 1928.
The stockholders of the Hibernia Trust Co. of New York
The Chairmen of the Commissions and Committees will at a special meeting this week approved the proposal to
merge with the Broadway & Plaza Trust Co. Over 75%
next report as follows:
APRIL 4 1931.]
FINANCIAL CHRONICLE
of Hibernia stock it is stated was represented at the meeting
and no opposition the proposal was voiced. Previous items
regarding the merger plans appeared in our issues of March
14, page 1928 and March 28, page 2322. From the New
York "Times" of March 28 we take the following:
Joseph Roeder, stockholder in the Broadway & Plaza Trust Co., failed
yesterday in an attempt to block plans for the merger of the company with
the Hibernia Trust Co., when Supreme Court Justice Ford denied his
motion for an injunction to prevent the holding of a stockholders' meeting
next Monday evening. Mr. Roeder, who owns eight shares of Broadway
& Plaza stock, said the merger was to be considered at the meeting.
Mr. Roeder contends that the merger plans gave an opportunity for
fraud upon Broadway & Plaza stockholders because the assets were to be
divided into "acceptable and non-acceptable assets" and that the distinction was to be made by the Hibernia company. The latter company
would also obtain the good-will of the Broadway & Plaza company for
nothing, he asserts.
Counsel for the Hibernia Trust Co. informed the court that holders of
80% of the 67,500 Broadway & Plaza shares had approved the merger.
The stockholders of the Liberty National Bank & Trust
Co. of New York approved a proposal to reduce the capital
$750,000 to $2,250,000 by the issuance of three shares of
new stock of $25 par value for each old share of $100 par
value. This is the final step in the execution of a plan which
the new interests in the bank decided upon when they became
, active in its affairs several months ago. The bank has
issued a statement as of March 31 1931, giving effect to
this change in capital. In this statement, it is said, all
securities are marked down to market value. Quick assets,
including cash, Government securities, other bonds and
securities, call loans, acceptances and other loans secured
by marketable collateral, are reported as totaling $11,577,878. Demand and time deposits totaled $11,505,255
as compared with $11,716,944 on Dec. 311930. Demand
deposits alone totaled $8,540,759. Surplus and undivided
profits on March 31 1931, amounted to $1,128,654 as compared with $1,084,551 on Dec. 31 1930. Resources on
March 31 totaled $16,858,996, as compared with $17934,112 at the end of 1930. The proposal to reduce the
capital was noted in our issue of March 14, page 1928.
2519
$1,224,015,893. Total resources a year ago, as shown in
the statement published Mar. 27 1930, were $1,749,321,065,
and deposits were $1;133,385,431. As of the date of the
present statement, the Company's capital of $90,000,000,
surplus fund of $170,000,000 and undivided profits of $38,068,599.69 show total capital funds of $298,068,600, reflecting an increase in undivided profits of $625,802 since Dec.
31 last year.
Taking over space vacated by the Irving Trust Co. in
60 and 62 Broadway, this city, the Central Hanover Bank
& Trust Co. now has under lease the fit* ten floors of 60
Broadway and all but the Broadway and New Street floors
of 62 Broadway. A series of alterations is under way that
will enable the Central Hanover to expand from 70 into
60 and 62 Broadway, and provide more adequate quarters
for a majority of the bank's departments. Alterations will
exceed $100,000 in cost and will be rusted to completion
as rapidly as possible. The 35 departments affected will
be shifted to new locations in eleven different moves, the
last of which is scheduled for Oct. 28. The first of the
major changes will occur May 15, when the Corporate Trust
Department moves from 70 Broadway to the first floor and
New Street mezzanine of 60 Broadway. The second major
transfer will be the move of the Personal Trust Department from the 6th, 7th and 10th floors of 70 Broadway to
the Broadway mezzanine, the'2nd, 3rd, 4th, 6th and 9th
floors of 60 Broadway.
The Board of Directors of The National City Co. of New
York, announced this week the election of Harry S. Law
as Secretary. Mr. Law will not only handle the routine
secretarial duties, but will be connected with the administrative offices, and particularly charged with the analysis
of operating conditions in all departments looking ,to the
maintenance of efficiency and economy.
on Apr. 2 that John W. Platten,
Announcement was made
official responsibilities, has
his
of
relieved
wishing to be
tendered his resignation as Chairman of the Board of the
Mr. Platten
Following the meeting of the Directors of the Bank of O'aemical Bank & Trust Co., effective May 1.
his office
have
will
and
Bank
the
of
director
a
continue
will
on
April
York
2,
New.
it
of
was
Manhattan Trust Co.
Broadway.
165
office,
main
Bank's
the
at
announced that J. Walker Fulcher, Assistant Treasurer, and headquarters
Alex. H. Sands. Jr., Trustee of The Duke Foundation,
was elected an Assistant Vice-President and placed in
charge of the Bank's Jamaica Office at 161-10 Jamaica Ave. has been elected a member of the Advisory Board of the
Madison Avenue & 46th Street office of the Chemical Bank
Supreme Court Justice McCook signed an order on April 1 & Trust Co., of New York.
Frederic W. Allen has been elected a director of the
Chase National Bank of New York.
permitting New York State Banking Superintendent
Broderick to sell at the market price or better the securities
The American Express Bank & Trust Co., of New York,
owned by the World Exchange Bank of this city, which he which opened for business less than a year ago, reports
closed on March 20. These advices are taken from the total resources as of Mar. 25 1931 of $54,052,120. This comNew York "Times" of April 2, which added:
pares with resources of $50,536,124 on Dec. 31 1930 and
$38,782,461 shown in its first published statement as of
June 30 last year. Deposits of the bank on Mar. 25 totaled
The closing of the bank on March 20 was noted in these $25.582,686. compared with $24,361,270 on Dec. 31 1930 and
columns March 21, page 2125. The bank was located at $19,192,146 on June 30 1930. Capital, surplus and undivided
114 Second Avenue.
profits on Mar.. 25 amounted to $15,538,415 against $15,400.560 at the end of 1930.
The securities, carried on the books of the bank at $384,578. are all
bonds with the exception of 30 shares of the Irving Trust Co. and five shares
of the Bankers Trust CO.
A consolidation of the Melrose National Bank and the
Port Morris Bank, both located in the Bronx became effective Monday, March 30, under the charter of the Melrose
National and under the corporate title of The National
Bronx Bank of New York. The consolidated institution has a
capital of $525,000. The Melrose National had a capital of
$500,000, while the Port Morris Bank had a capital of
$300,000. The main office of the National Bronx Bank is at
560 Melrose Avenue at 150th Street; it operates branches as
follows: Port Morris branch, east 138th Street, at Willis
Avenue; Van Nest branch, 687 Morris Park Avenue; Wakefield branch, White Plains Ave. and 241st Street. William
T. Keogh is President, and John Kadel, is Chairman of the
Executive Board. An item regarding the consolidation
appeared in our issue of March 21, page 2127. The merger
plans were ratified on March 23 by the stockholders of the
uniting banks, according to the New York "Times" of
March 24, from which the following is taken:
E. S. MacDonald, NVII10 sInc-e.December of 1927, has been
Vice-President in charge of the 46 offices of the Bank of
Manhattan Trust.Co., in the Borough of Queens, has been
elected a Vice-President of The Manhattan Company and
transferred to Manhattan. Mr. MacDonald has been succeeded by Ellis Weston, a Vice-Tresideat who has been
connected with the Bank since 1902. The Manhattan Company is the parent company of the Bank of Manhattan
Trust Co., International Acceptance Bank, Inc., Intetinational Manhattan Co., Inc., New York Title & Mortgage
Co., and the National Mortgage Corp. In his new position,
Mr. MacDonald will be in charge of the co-ordination of
activities of the units of The Manhattan Group. Mr. MacDonald was born at Charlottetown, Prince Edward Island,
Canada, where he received his early education, later attending the Prince of Wales College of Canada. With the outThe stockholders of the Melrose Bank voted to increase the capital from break of the World War, Mr. MacDonald enlisted in the.
$500,000 to $525.000 and to reduce the par value of the shares from $100 Navy and served overseas. He was a Gun Captain on the
to $50. The exchange of Melrose stock for shares of the new b. nk will be
ships given
made on the b sis of 1 ti shares of Melrose for 1 new share. The Port. U. S. S. Lydonia, one of the two United States
Morris stock, which has a par value of $10, will be exchanged on the basis of official credit for sinking a submarine. Upon his return
10 snares of Port Morris for one new share.
from the War. he was appointed Assistant Cashier of the
The condensed statement of condition of the Guaranty Bank of the Manhattan Company and made a member of
Trust Co. of New York ns of Mar. 25 1931, issued Apr. 1 the Executive Staff. In January 1925, the directors elected
shows total resources of $1,806,380,222, and deposits of Mr. MacDonald a Vice-President and in 1927 he succeed&
2520
FINANCIAL CHRONICLE
[Vol,. 132.
Mr. P. A. Rowley as Vice-President in charge of the Queens
The State Bank of Binghamton was taken over by the
Division of the Bank of Manhattan Trust.
New York State Banking Department on Dec. 15 1930, folIn 1913, Mr. Weston opened the Ridgewood Branch of the lowing the disappearance of its President and Cashier, AnBank of Long Island. Following the merger with the Bank drew J. Horvatt. Our last reference to its affairs appeared
of the Manhattan Company, he was made an Assistant Mar. 21, page 2128.
Cashier and on Apr. 2 1927, 25 years after his entrance into
Wallace H. Pratt, who for the past 36 years has been
the banking field, he was made an Assistant Vice-President
and placed in charge of the Jamaica office; he was elected associated with Boston banks, was recently appointed
a Vice-President on Oct. 30_1930. Mr. Weston is a member Cashier of the Braintree National Bunk, Braintree, Mass.,
of the Queens Chamber of Commerce, Queens County assuming his new duties Apr. 1. The Boston "Transcript"
Bankers' Association, Ridgewood Chamber of Commerce,etc. of Mar. 27, in reporting the matter said, in part:
Mr. Pratt was Assistant Treasurer of the Beacon Trust Co. when it was
Mr. MacDonald is Director of the Bank of Manhattan merged with the Atlantic National Bank last August.
Before that he was
Treasurer
Deposit
of the Equitable Trust Co., purchased by the Beacon in 1921.
Safe
Co., Treasurer and Director of the Chamber
His
home
is
in
Braintree,
where
he
is
a
member
of
the
finance committee
of Commerce of the Borough of Queens, member of the
of the town. He is a member of the Bank Officers' Association of the
Long Island Chamber of Commerce, Jamaica Real Estate City of Boston and the American Institute of Banking. Horace R. DrinkBoard and the Queens Advisory Loan Committee of he New water, President of Edwin Clapp & Son, shoe manufacturers at East Weymouth, is President of the Braintree National Bank.
York Title & Mortgage Co.
That depositors in the closed People's Banking & Trust Co.
The statement of condition of the Continental Bank & of Elizabeth, N. J., will receive approximately 75% of their
Trust Co. of New York as of March 31 1931 shows total deposits, was predicted by Frank H. Smith, State Banking
assets of $47,580,598 as against $45,608,622 as of Dec. 31 and Insurance Commissioner for New Jersey, on March 26,
1930. Surplus and undivided profits are listed as $11,356,- aecording to Elizabeth advices to the Newark "News" on that
790 compared with $11,353,148 at the year-end, the in- day. Mr. Smith was quoted further as saying that the decrease being after payment of dividends for the period. De- positors would receive a 50% dividend in July and that it is
posits of the institution at the end of the first quarter likely another 25% dividend would be distributed before the
amounted to $24,126,261 against $23,509,872 on Dec. 31.
bank's affairs were dosed. The dispatch continuing said:
The Brooklyn "Daily Eagle" of April 1 stated that the
Lafayette National Bank of Brooklyn took over on that
day the Bay Parkway National Bank and will operate it
as a branch office. The "Eagle" further said:
Arrangements for acquiring the Bay Parkway were hurriedly completed
late yesterday after a day of unusually heavy withdrawals at the latter
institution following the circulation of allegedly false rumors regarding
the bank's condition.
Purchase Announced.
The Lafayette. George S. Horton, President, announced to-day, has
purchased the Bay Parkway outright, including the bank building on
Bay P-rkway between 66th and 67th Streets. The terms of the purchase
were not disclosed.
The purchase involves no increase in the capital of the Lafayette, Mr.
Horton said. The deal, he added, had been pending a month. Whether
any of the executives and personnel of the Bay Parkway will be retained
will be decided later, he stated. The purchase gives the Lafayette five
offices, with the main office at 100 Livingston Street.
Banks' Statements.
The latest call statement, as of March 25, showed the Lafayette had
total resources of $8,252,802, total deposits of $4,945,227, capital of
$1,450,000, surplus of $875,000 and undivided profits of $193,598. The
Bay Parkway statement showed total resources of $1,525,189, total deposits of $958,214. capital of $200.000, surplus of 3100.000 and undivided
profits of $3,163.
Thirto-fire in Line.
About 35 persons were in line when the bank opened this morning.
They were paid off promptly. At 10 o'clock It was announced deposits
were exceeding withdrawals. Two policemen on duty at the bank were
recalled.
Percy J. Smith, Executive Vice-President of the Lafayette, will be
temporarily in charge of the Bay Parkway. He announced that less
than $100,000 had been withdrawn by depositors yesterday and that
$1,000,000 was on hand to-day to pay off any who desired to wihtdraw
funds.
Officers of the Lafayette are: Walter Jeffreys Garth]. Chairman; Mr.
Horton, President; Mr. Smith, Vice-President and Trust Officer; George
F. Driscoll, Vice-President and W. Howard Wyatt, Vice-President and
Cashier. Officers of the Bay Parkway were: Charles G. Bond, President;
Gaston Kocn, Charles Green and Samuel Rivkin, Vice-Presidents, and
George S. Biscogllo, Acting Cashier.
That action in the Supreme Court was begun on Mar. 27
by,3,000 depositors of the looted State Bank of Binghamton,
N. Y., seeking to recover losses of from $2,500,000 to
$6,000,000 from seven directors of the institution, was reported in a dispatch by the Associated Press from Binghamton on the date named. Advices went on to say:
Their complaint alleged four causes of action, three against the directors
as a body and one holding Thomas J. Mangan, Vice-President, personally
liable for the deficit left by the missing President, Andrew J. Horvatt.
Other directors named in the complaint are Horvatt, Sigmund A. Friedlander, Elmer J. Churchill, Massoud Ellis, Joseph Greskovic and Michael
J. Horvatt.
According to the complaint, Horvatt speculated in stocks and securities
individually for the bank and for other persons.
"These facts," the complaint says, "were either known to the defendants, or, as plaintiffs are informed and believe, should have been known or
investigated by the defendants as directors of such moneyed corporations."
In the separate action against Mangan the complaints charge that he
knew Horvatt was speculating in stocks and that he "knew or should have
known" that Horvatt was "purchasing on margin stocks, both in the
name of himself, in the name of the bank, and others."
All the directors are charged with permitting Horvatt, "a notorious
bootlegger, to remain at the head of the bank and to embezzle and appropriate funds to and for his own use and benefit."
Frank Cooper, Federal Judge, to-day (Mar. 27) named Martin W. Deyo
as trustee of Horvatt's estate. Judge Cooper's order reversed that of
George J. II. Crowe, referee in bankruptcy, who had appointed Thomas
W. Ryan as trustee.
State Bank Examiner George Compton of Hillside, working under direction
of G. Hayes Markley, Deputy Banking Commissioner, has almost completed
examination of the bank's affairs and Mr. Smith said to-day (March 26) he
expected to advertise for claims within the next three weeks. Under the
law a three months' period for filing claims must elapse after the advertisement is made before the dividend may be paid. There are approximately
14,00 depositors.
It is likely the bank will be permanently closed as there have been no
offers to take over the institution.
Our last reference to the closed People's Banking & Trust
Co. appeared in our March 7 issue, page 1739.
A definite plan for reorganization and early reopening of
Bankers Trust Co. of Philadelphia (which closed its doors
Dec. 22 last) was unanimously approved on April 1 by the
board of directors and the Depositors' Committee. The
Depositors' Committee, with George F. Wieland, Acting
Chairman, in the absence of Sidney J. Burgoyne, Chairman,
met at noon in the office of Harry Shapiro, Counsel for the
committee, and received, considered and unanimously approved the plan. A statement issued in ,the matter goes on
to say:
The board of directors of Bankers Trust Co. of Philadelphia met at
1:30 at the offices of the company. The special committee of directors
appointed by the board a week ago to work with Samuel H. Barker, President. through its Chairman, It. J. Goerke, President of City Stores Co.
and Lit Brothers, reported the plan, with its recommendation, to the
board of the bank. The board unanimously approved the plan.
The plan makes available to all depositors 55% of their deposits; it
provides for subscription to the capital stock of the reorganized bank by
stockholders of the old bank, and, to a certain percentage of their deposits,
by depositors whose deposits aggregate $500 and over.
Depositors for less than $500 will be extended the privilege to subscribe
for stock in the reorganized bank, subject to allotment.
The 45% balance of amounts due depositors will be paid from time to
time as the remaining assets shall be realized upon, and after such balance
is so paid in full, the proceeds of all then remaining assets will go to the
stockholders of the old bank.
The reorganization plan will shortly be submitted to the Department of
Banking for its consideration.
On Mar. 18. the Broadway
- National Bank of Scottdale,
Pa., capitalized at $50,000, was placed in voluntary liquidation. It has been absorbed by the First National Bank of
the same place.
The Gary National Bank,
-Gary, West Va., with capital
of $50,000, 'went into voluntary liquidation on Mar. 14. It
Is succeeded by an institution of the same name.
The directors of the Weste- rn Bank & Trust Co., of,Cincinnati, Ohio, on Mar. 25, in completing plans for the opening
of a new branch at Fifth and Walnut Streets, that city, on
May 1 next, promoted Edward C. Wehmer, heretofore Trust
Officer of the bank, to a Vice-President in charge of the new
office, and appointed Henry J. Pfiester, a well known Cincinnati business man, a Vice-President to be associated with
Mr. Wehmer, according to the Cincinnati "Enquirer" of
Mar. 26. Mr. Pfiester assumed his new duties immediately.
Mr. Wehmer, who was born in Cincinnati, was first emfiloyed by the Western Bank & Trust Co. in 1892 as a messenger, and has been with the institution continuously since
that time. He filled positions in various departments until
1918, when he was appointed Trust Officer, the position
from which he has just been advanced. Mr. Pfiester, who
APRIL 41931.].
FINANCIAL CHRONICLE
is also a native of Cincinnati, last summer resigned as
President of the Farrin Lumber Co. (an office he had held
since 1908) after 28 years of service with the concern. He
is a veteran of the Spanish-American War and of the World
War, and served in the A. E. F. for 15 months, holding a
commission as Captain in the Engineering and Construction
Division of the Air Service.
Other changes made in the bank's personnel by the directors were as follows: Albert Widmann, formerly Cashier,
and Philip Bock and William Beiser, heretofore Assistant
Cashiers, promoted to Vice-Presidents; Feldie Katz, formerly
an Assistant Cashier, advanced to Cashier; Albert J. Tenoever, appointed Assistant Cashier and Auditor; William B.
Schlie made an Assistant Cashier; William A. Beckman,
formerly Assistant Trust Officer, advanced to Trust Officer
to succeed Mr. Wehmer, and William H. Drach, appointed
Assistant Trust Officer.
In conclusion the paper mentioned said:
The Western Bank & Trust Co. is an important link in •the financial
institutions of Cincinhati and Southern Ohio. It is one of the oldest serving
the community, and through the efforts of Frederick Hertenstein, President,
and his co-workers has advanced to an eminent position in the field. The
main office is at Twelfth and Vine and branches are located in Bond Hill
and Clifton Heights. The new branch will provide a central downtown
location in the heart of the business district.
Statement of the Western Bank as of Dec. 81, the last bank call, places
it in fifth position among banks in Southern Ohio. Deposits totaled $14,109,761 and total resources were $17,421,871. The bank is capitalized at
$1,250,000 of $10 par stock. Surplus and undivided profits total $1,451,294.
2521
sales department of the company in Chicago for several
years and In his new capacity succeeds William M. Rex,
who has been called to the Chicago office to assume new
responsibilities.
Effective Monday, Mar. 3- 0, the Old Dearborn State
Bank of Chicago was merged with the Ohicago Bank of
Commerce. By the acquisition the deposits of the Chicago
Bank of COmmerce have been increased more than $3,000,000.
The recent bank call disclosed that the Chicago Bank of
Commerce had total deposits of $4,066,000, and that the
Old Dearborn State Bank had aggregate deposits of
$3,259,000, making a total of $7,325,000 for the combined
institutions. Frederic S. Pope, former President, and
Eugene L. Voss and A. F. Whitehead, former Vice-Presidents
of the Old Dearborn 'State Bank, have become Vice-Presidents of the consolidated bank, which is headed by Henry
S. Henschen,and many members of the staff of the absorbed
bank has joined the staff of the enlarged institution.
The Michigan Industrial B- ank, Detroit, a Unit of the
Guardian Detroit Union Group, Inc., opened for business
March 30 in new and larger quarters on the lower banking
floor of the Union Guardian Building, Detroit. The bank's
total resources of $4,350,000 represent a fifteen-fold increase
since its organization in 1927. An announcement in the
matter says:
Wit& further reference to the affairs of the Commercial
Bank of Middletown, Ohio, which was closed the early part
of last June by the State Banking Department, Hamilton,
Ohio, advices on March 24 to the Cincinnati "Enquirer"
reported that the Butler County Grand Jury on that day
returned 12 indictments against E. T. McCue, the former
Cashier of the institution. We quote further in part from
the dispatch mentioned:
The industrial loan service of the Michigan Industrial Bank is available
to the public in the uptown office of the National Bank of Commerce, and in
all the branches of the Guardian Detroit Bank and the Highland Park
State Bank, as well as in other metropolitan units of the Guardian Detroit
Union Group. In addition, the bank has recently entered into an agreement
with Crowley Milner & Co. to provide an inexpensive deferred payment plan.
Another facility offered by the bank in an insurance premium payment
account service by which an individual deposits one-twelfth of his total
annual insurance premiums each month, the bank making the premium
payments to the insurance companies and paying the depositor interest on
daily balances.
Ten indictments charge embezzlement and misapplication of funds, one
charges McCue with having made a false entry and one charges he made a
false report on the condition of the bank to the State Banking
Superintendent.
Reports to Zeknar .Morgenthaler, Prosecutor, who directed the
Grand
Jury's investigation, indicated to-day (March 24) irregularities
might
reach $40,000.
McCue was under $25,000 bond as Cashier and in the event of
conviction,
action will be brought in the interest of depositors who already have
received
25% and 10% dividends.
..
McCue has been at liberty on $5,000 bond since he was taken into custody
last October, on a charge of embezzlement, brought in Middletown Municipal
Court.
Officers of the Michigan Industrial Bank are: Allan A.
Templeton, President; C. S. Fitzpatrick, Executive VicePresident; George B. Yerkes, H. L. Wadsworth, land A. E.
13etteley, Vice-President; Carl 31. Heck, Vice-President
and Treasurer; and S. P. King, Secretary.
Items with reference to the closing of this bank and the
arrest of Mr. McCue, its CaShier, appeared in the "Chronicle"
of June 14 and Nov.8 1930, pages 4180 and 2991, respectively.
- Bank of Minneapolis, Minn.,
The Metropolitan National
an institution capitalized at $500,000, was placed in voluntary liquidation on Mar. 20. It was taken over by the North
Western National Bank of Minneapolis.
Effective Mar. 24, the Austin National Bank of Austin,
Minn., capitalized at $75,000, was placed in voluntary liquiA 30% dividend to depositors and creditors of the defunct dation. The institution was absorbed by the First National
Citizens National Bank at Galion, Ohio. has been approved Bank of Austin.
by the Comptroller of the Currency, and is being paid by the
-of Waseca, one of the leading
The Farmers National Bank
receiver, A. E. Evensen, according to a press dispatch from depositories of southern Minnesota, has entered the First
Bucyrus, Ohio, on March 20 printed in the Todedo "Blade" Bank Stock Corporation system (headquarters St. Paul and
Minneapolis), according to an announcement by P. J.
of that date. The advices went on to say:
A second dividend will be declared as soon as sufficient funds have accu- Leeman, Vice-President and General Manager of the cormulated, he said.
poration on April 1. The Waseca bank becomes the 114th
Stockholders who were assessed $100,000 to help meet the shortage of member of the group and the 57th in Minnesota.
The
$233,000 are making satisfactory payments, Evensen said.
official announcement goes on to say:
Our last reference to the affairs of this bank appeared in
For three generations the Farmers' National has been administered by
the Ward family and it has been known for many years as the Ward bank.
our March 14 issue, page 1928.
The First National Bank of Vernon. Ind., was placed in
voluntary liquidation on Feb. 16 last. The institution, which
was capitalized at $50,000, was taken over by the North
Vernon National Bank of North Vernon, Ind.
Organized in 1881 as a private bank by a group of Brattleboro. Vt., Investors, it first operated under the name of Peoples Bank of Waseca.
Although a State charter was obtained soon after organization, the bank
was not nationalized until 1908 when the name Farmers' National was
adopted.
W.G. Ward, a civil engineer who had come to Minnesota from Booneville. N. Y., was elected President of the bank in 1886. He had built the
North Western Railway extension through southern Minnesota and decided
to remain in the new territory. It. P. Ward,son of W. G. Ward, entered
the bank in 1893 upon the death of his father. He was elected President
a year later and continues in that capacity. For the past six years E. C.
Ward, the son of It. P. Ward, has been the active managing officer with the
title of Vice-President. In recent years the Ward family has been consolidating its extensive interests. Two years ago the Ward Dry Mill Co.,
which started out of the Waseca creamery and grew into a property with
40 plants over the country, was consolidated with the Kraft Cheese Co.
The Farmers' National is capitalized at $100,000 with surplus and
undivided profits of $30.000, deposits of $1,430.000 and total resources of
$1,650,000. The present management will continue in charge with tte
addition to the staff of K. H. Kanne as Vice-President and director. Mr.
Kanne is a native of Waseca County and is returning after a successful
banking career in Minnesota and North Dakota. For the past two years
he has been with the central staff of the First Bank Stock Corporation.
The consolidation of two outlying Chicago banks was also
consummated on Mar. 30, according to the Chicago "Journal
of Commerce" of that date. The institutions are the Depositors' State Bank and the Southwest (State Bank, the latter
bank being taken over by the former. The combined resources of the two banks aggregate more than $8,000,000,
It was said. J. A. Calek, heretofore Vice-President of the
Southwest State Bank, it was furthermore stated, would
become a Vice-President of the Depositors' State Bank, while
present officers of the latter institution would continue
in
their respective capacities. The institution is headed
by
Julius F. Smietanka, Chairman of the Board; John S. Junk,
More than $63,000 is being paid to depositors of the First
Vice-Chairman, and R. D. 31athias, President.
State Bank of Alliance, Neb., which closed more than a year
ago, according to a dispatch by the Associated Press from
Continental Illinois Co. of Chicago (an affiliate
of the that place on Mar. 25. This represents a 10%
payment and
Continental Illinois Bank & Trust Co.) announced March
30
the appointment of Fred M. Gillespie as Manager of its is the second payment made since the closing, making a
Detroit office. Mr. Gillespie has been connected with the total of 45% of deposits paid to depositors, the advices said.
2522
FINANCIAL CHRONICLE
[Vol,. 1.32.
The Dallas National Bank of Dallas, Tex., capitalized at March of the previous year and $3=1,600,000 over the March
$500,000, went into voluntary liquidation Feb. 10 1931. The 1924 report.
Institution was merged with the Dallas Bank & Trust Co.,
Will C. Woods,former State Superintendent of Banks for
as noted in our issue of Jan. 10, page 231.
California, has become a Vice-President of the Bank of
National Trust & Savings Association, assuming
As of Mar. 16, 1931, the Citizens' National Bank of Waxa- America
his new duties on March 30 in the Oakland branch of the
hachie, Tex., capitalized at $200,000, was placed in voluntary institution. The San Francisco "Chronicle" of March 27,
liquidation. A new bank under the title of the Citizens' in reporting his appointment, furthermore said in part:
The new executive, who has just completed a two months'vacation trip
National Bank in Waxahachie has succeeded the institution.
to the Hawaiian Islands, served as head of the State Banking Department
was for
1927 until the beginning of the present year. Previously he
Abilene (Tex.) advices on Mar. 26 to the Dallas "News" from
eight years the State Superintendent of Public Instruction, having been
reported that the Farmers' & Merchants' National Bank of named to that post from the position of the State Commissioner of
Schools. . . .
Abilene has purchased the Central State Bank of that place. Secondary
Apart from his educational and banking activities, Wood has been a
C. T. Hutchison land Riley Peters, President and Cashier, leader in civic affairs. He is Vice-President of the Commonwealth Club
respectively, of the acquired bank, will be associated win of California and is active in the Foreign Trade Club of San Francisco.
the Pan-American Society and the Oakland Forum.
the enlarged institution, according to an announcement by
Cashier,
of
Henry James, President, and W. Rich Keeble,
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
the Farmers' & Merchants' National Bank. The dispatch
Price movements on the New York Stock Exchange have
went on to say:
been decidedly reactionary this week. Many speculative
For the present, until physical details of the transaction have been com- favorites have moved to new lows for the current movement
pleted, the Central State Bank will continue to operate at North Third and
and in the railroad group especially, several touched the
Pine Streets. The deal included the three-stock brick building now occupied
by the Central State Bank. There have been rumors that the Farmers' & lowest prices reached in several months. On Thursday,
Merchants' National Bank would construct on its newly acquired property United States Steel dropped to a new low for the present
an eight- br ten-story bank and office building.
movement, though it recovered much of its loss later in the
Philip Woolcott, of Richmond, Va., was appointed Presi- day. The weekly report of the Federal Reserve Bank pubdent of the Morris Plan Bank of Asheville, N. C., at a'meet- lished after the close of the market on Thursday showed a
ing of the directors held Mar. 18, according to Associated further dearease of $33,000,000 in brokers' loans in this
Press advices from Asheville on Mar. 19, which furthermore district. Call money renewed at 1%% on Monday and
advanced to 2% on Tuesday afternoon. On Wednesday the
said:
where it remained during the
renewal
rate was again 1
Vice-President
of
the
Plan
Bank
of
Senior
Morris
Mr. Wooloott is
Virginia, one of the largest and strongest Morris Plan Banks in the country. rest of the week. The New York Stock Exchange, the
He has served as a member of the Board of Directors of the local bank since Curb market, and commodity markets were closed yesterlast October, when the controlling stock was acquired by the Morris Plan
Bank of Virginia and drastic changes made in the policies of the Asheville day in observance of Good Friday.
The stock market again slipped downward during the two
Bank.
hour session on Saturday, an avalanche of selling sweeping
Langbourne M. Williams, head of the Richmond Banking prices in practically every active group to lower levels
frim of John L. Williams & Sons, and one of the leading Numerous prominent issues were at the lowest for the present
fianciers of Virginia, died of heart desease at his home in reaction, and while there were occasional brief rallies, the
Richmond on April 2, after an illness of three weeks. Mr. greatest activity was on the side of the decline. Speculative
Williams, who was born in Richmond in 1872, was the sole railroad stocks attracted very little attention due to the
surviving partner in the 60-year-old firm established by his dismal February earnings statements, and there was little
father and in which his brother the late John Skelton Wil- or no movement in the industrial shares. Public utilities
liams, was a partner until he was appointed Comptroller of were off and most of the active specialties were down from
the Currency by President Wilson. He entered the firm 1 to 5 or more points. Among the prominent stocks that
in 1892. Among other interests, the late banker was Presi- moved into new low ground on the current movement were
dent of the Virginia Central Railway, the Southern Invest- Amer. Tel. & Tel., Atlantic Coast Line, Auburn Auto and
ment Co., the Manasota Land.& Timber Co. and the Byrd United States Industrial Alochol. Oil stocks continued to
Real Estate Co., Vice-President of the Halifax Paper Co., slide back, particularly Standard Oil of New Jersey, which
Secretary of the Richmond Mica Co. and a director of the
broke into new low ground for the present movement. Other
Maryland Casualty Co.
showing sharp declines were Allied Chemical & Dye
stocks
A Richmond dispatch to the New York "Times" on April 2% points, J. I. Case Threshing Machine 33
4 points, Fosterfurthermore
said:
death,
the
banker's
advising
of
2
points, General
3M
Johns-Manville
points,
4%
Wheeler
on
behalf
of
Freeport
battle
Last yeir Mr. Williams led a successful
Texas Co. stockholders against the management headed by E. P. Swenson Electric 1% points and Du Pont 234 points.
of New York. The Williams group captured voting control at the annual
On Monday prices were again lower during the early dealmeeting, ousted the Swenson group and elected Langbourne M. Williams
ings,
but improved to some extent as the day advanced, and
Jr. Vice-President and Treasurer..
*5*
part of the initial loss was recovered, though the gains were
It was said yesterday (April 1) at the office of Davis, Polk, Wardwell, very moderate. The principal changes of the day were on the
Gardiner & Reed, attorneys for Eric P. Swenson. former President of the
included United States Steel, 13/i
Freeport-Texas Co.. a sulphur-producing firm, that the status of Mr. side of the decline and
Swenson's $1,000,000 libel suit brought last February in Supreme Court points; Amer. Tel. & Tel., 2 points; Westinghouse Electric,
here against the investment banking firm of John L. Williams & Sons of 1% points; Allied Chemical & Dye,63 points; Amer. Water
Richmond, with the two Langbourne Willi r- c,r(Cn t dm,the &fen& nts
t:
• , W.11i ins Sr. Iv.s never s‘rved, Works, 33-i points, and J. I. Case, 13 points. Moderate
would not be affected 137 t'e
gains were recorded by Woolworth, Union Pacific, New York
his daughter-in-law said yesterday, lthougn nor husband was.
Central, and Industrial Rayon. Copper stocks were dull as
are advised that commercial and savings deposits of the price at customs smelters sagged to 93
We 'are
4 cents a pound„
the Wells Fargo Bank & Union Trust Co. of San Francisco, which was lower by % of a cent than the official domestic
as of Mar. 25 1931 were the largest in the history of the price. Prices of leading stocks showed considerable improveInstitution. Total resources likewise were shown at a new ment on Tuesday. Some realizing was apparent during the
peak in the latest statement of condition. Totaling $145,- morning session, but this was quickly absorbed and the
164,337, combined savings and commercial deposits increased market continued to move briskly forward. Railroad shares
more than $21,000,000 during the past year; they compare were irregular and while there were some gains, the advances
with $98,119,848 as of Mar. 31 1924, which was the first were not especially noteworthy. Specialties were in good
report issued following the merger of the Wells Fargo Bank demand and gains ranging from 1 to 5 or more points were
and the Union Trust Co., Jam 1 1924. Total resources, recorded by some of the more volatile stocks. The prinamounting to $174,209,469, were nearly $24,000,000 in excess cipal changes on the side of the advance were Auburn, 3
of the corresponding amount Mar. 27 1930; they compare points; Columbian Carbon, 2 points; Louisville & Nashville,
6 points; Timken Roller Bearing about 2 points, and Homewith $128,606,706 on Mar. 31 1924.
Grown of this banking institution, said to be the oldest stake Mining Co., 7% points. On the other hand, sharp
west of the 'Mississippi, during the past year has been a recessions were recorded by such stocks as Air Reduction, 2
continuation of the steady advance which has occurred since points; J. I. Case Threshing Machine Co., 23 points;
the consolidation of the Wells Fargo Bank and the Union General Asphalt, 9 points; Southern Ry., 4 points; Southern
United States Industrial Alcohol, 4%
Pacific,
Trust Co. Savings deposits advanced from $40,385,480 in points, 33. points;
and Pan-American Petroleum, 2 points.
March 1930, to $50,183,030 on Mar. 25 1931 and compare selling was apparent as the market closed, but there Further
was little
with $28,844,091 in March 1924. Commercial deposits of change in the final figures. Trading quieted
down on
$94,981,607 represent a gain of more than $11,500,000 above Wednesday and prices moved up and down over a
wide
Aram 4 1931.]
FINANCIAL CHRONICLE
2523
range, many important issues slipping down to the lowest
PRICES ON PARIS BOURSE.
levels reached in several weeks. In the last half hour, the
Quotations of representative stocks on the Paris Bourse
downward drift was halted by a modest rally, but this was as received by cable each day of the past week have been
quickly checked and at the finish the declines predominated, as follows:
though most of the losses were confined to fractions. During
Mar. 28 Mar. 30 Mar.31 Apr. 1 Apr. 2 Apr. 3
1931. 1931. 1931. 1931. 1931. 1931.
the early trading, new lows for the current movement were
Francs. Francs. Francs. Francs. Francs. Francs.
registered by United States Steel, Allied Chemical & Dye, Bank of France
18,400 18,200 18,300 18,300 18,100
Banque Nationale de Credit
1,285
1,275
1,282
1,285
1,280
American Can, Westinghouse, J. I. Case and Consolidated Banque
de Paris et Pays Bas
2,340 2,300 2,310 2,310 2,300
de Union Parislenne___. 1,360 1,330 1,338
1,341
1,340
Gas. The railroad group also included a number of prom- Banque
Canadian Pacific)
1,092
1,073
1,072
1,075
1,060
15,500 15,100 15,100 15,200 15,000
inent issues that broke to the lowest price in several years. Canal de Sues
Cie Distr. d'Electricitie
2,320 2,285 2,305 2,300 2,265
The list embraced among others, New York Central, South- Cie Generale crElectricItie
2,700 2,880 2,700 2,680 2.670
Ole Tmns-Atlantlque
499
484
472
475
ern Pacific, Delaware & Hudson, Missouri Pacific, Southern Cie
Citroen B
720
690
710
700
-iio
1,830
1,840
1,630
1,630
Railway and Missouri-Kansas-Texas. Public utilities eased Comptoir Nationale crEscompte 1,840
700
700
680
670
680
CotY. Inc
1.114
with the rest of the market, the losses ranging from 1 to 3 or Courrieres
1,101
1,110
1.115
1,101
1,232 1,225
Credit Commerciale de Franoe
1,237
1.241
1,240
more points, in such stocks as Amer. Water Works, Amer. Credit Lyonnais
2,580 2,550 2,560 2,550 2,550
Lyonnais
2,870 2,610 2,630 2,650 2,640
Tel.& Tel. and North American. Price changes in the stock Eaux
Energie Electrique du Nord983
960
960
960
950
Energie Electrique du Littoral
1,315
1,290 1,300
1,308
1,299 Easter
market were narrow and irregular on Thursday, and while Ford
243
241
of France
239
239
238 Holiday
the early rallies attracted considerable selling, the changes, French Line
451
449
470
470
490
143
143
143
Lafayette
143
143
on the whole, were small and mostly on the side of the de- Gales
Gri Le Bon
900
900
890
890
890
630
620
610
Kuhlmann
590
590
cline. The recessions included among others, Allied Chem- L'Air
1,070
1,050 1,050 1,030 1,020
Uquide
1,550 1,545
1,555
1,580 1,551
ical & Dye, J. I. Case Threshing Machine Co., Johns- Lyon (P. L. M.)
2,160 2,150 2,160 2,170 2,170
Nord Ry
Manville, Worthington Pump, Vanadium Steel and Electric Pathe Capital
138
147
147
1,424
1,420
2,080 2,040 2,040 2,010 1,990
Power & Light. Auburn Auto staged another of its sensa, Pechiney
88.80 88.10 88.30 88.70 88.50
Rentes 3%
137.80 137.70 137.70 137.80 137.70
Rental 5% 1920
tional run ups and closed with a net gain of 8 points. All of Rentes
103.70 103.70 103.70 103.80 103.80
4% 1917
104.50 104.50 104.50 104.50 104.80
the financial and commodity markets,in New York and other Rentes 5% 1915
105.00 105.00 105.10 105.20 105.10
Rentes 8% 1920
important financial centers were closed yesterday in ob- Royal
2,910 2,880 2,910 2,880
Dutch
2,860
Saint Cobin, C. & C
3,310 3,205 3,210 3,260 3,205
servance of Good Friday. The Stock Exchange and curb Schneider
1,756
& Cie
1,740 1,785
1,750 1.735
Societe Lyonnais
2,870 2,620 2.625 2.650 2,645
market will reopen to-day.
Societe Marseille's°
984
985
980
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY, WEEKLY AND YEARLY.
Week Ended
April 3 1931.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Mocks,
Number of
Shares.
2,119,170
3,188,230
2,405,531
2,264,710
2,506,150
Stage,
Municipal &
Peen Bonds.
United
States
Bondi.
$4,329,500 $1,631,000
2,666,000
6,628,000
2,693,000
8,555,000
8,038,000
2,220,000
2,436,000
7,518,000
HOLI DAY
Total
Bond
Sales.
$85,000
171,000
181,000
6,010,000
286,500
$6,045,500
9,465,000
11,429,000
16,268,000
10,240,500
12.483.791 $35,068,500 811,646,0001 $6.733.500 853.448.000
Week Ended April 3.
Sales at
New York Stock
Exchange.
1931.
Stocks-No. of shares_
Bonds.
Government bonds_ _
State & foreign bonds_
Railroad & misc. bonds
Total bonds
Railroad,
dtc.,
Bonds.
1930.
Jan. 1 to April 3.
1931.
1930.
12,483,791
29,225,540
177,114,165
247,987,480
$6,733,500
11,646,000
35,068,500
$3,597,200
14,531,000
53,725,000
$52,110,550
198,152,500
464,602,000
$32,537,100
191,879,000
574,456.000
$53,448,000 $71,853,200
$714,865,050
9798,872,100
DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Week Ended
April 3 1931.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Prey. wk. revised_
Philadelphia.
Baltimore.
Shares. Bondliales. Shoes. BondSales. Shares. Bon4Sales.
28,193
81,000
11,300
41,836
5,000
28,685
9,000
28,498
28,995 .40,000
HOU DAY
156,207
193.811
$34,000
657,640
42,000
a60,924
97,000
a49,181
83,000
a44,142
a62.500
59,000
HOLI DAY
1,728
850,200
1,846
16,000
1,529
13,000
1,621
8,000
1,163
3,000
HOLI DAY
$66,300 6274,387
8319.000
7.887
$90,200
222.636
$423,700
7,949
842.400
8110.500
a In addition, sales of rights were: Saturday, 1,100; Monday, 1,000; Tuesday,
3,700; Wednesday, 7,000; Thursday, 3,200. Sales of warrants were: Saturday,
200; Monday, 400; Tuesday, 300; Wednesday, 200; Thursday, 100,
PRICES ON BERLIN STOCK EXCHANGE.
Closing quotations of representative stocks on the Berlin
Stock Exchange as received by cable each day of the past
week have been as follows:
Mar. Mar. Mar. Apr, Apr. Apr,
2.
31.
1.
28. 30.
3.
Per Cent of Par
Allg. Deutsche Credit(Ades)(8)
97
96
96
96
98
Berlin Hendels Ges.(8)
128
127 128
128
129
Commerz-und-Prlvat Bank (11)
115
114 114 114
115
Darmstaedter U. Nationalbank (12)
148
147 149
148
150
Deutsche Bank u. DIsconto Gee.(10)
111
111
111
112 113
Dresdner Bank (10)
111
111
111
112 113
Reichsbank (12)
168
165
164
165
166
Aigermeene Kunstzljde (Aku)(0)
84
82
85
88
87
111
109
Allg. Elektr. Ges.(A.E.G.)(7)
108
108
110
Deutsche Ton- u Steinzeugwerke (11)
82
80
80
78
79
Ford Motor Co., Berlin (10)
221
220 217 219)4 211
Gelsenkirchen Bergwerk (8)
86
84
84
85
86
131
129 131
Gesfuerel (10)
131
133 HOLTHamburg-American Line (Rapal)(7)
74
72
72
73
74 DAY
120 119119 122
Hamburg Electric Co.(10)
Hamenee Bergbau (6)
76
74 -7
74 75 77
(5)
Chemical
56
55
Heyden
56
109
110 107
Hotelbetrieb (10)
147
148
I. G.Farben Indus.(Dye Trust)(14)
150 152 157
60
Karstadt (12)
58
58
59
60
84
82
Mannesmann Tubes (7)
81
83
84
76
75
North German Lloyd (8)
74
75
75
65
Phoenix Bergbau (6)4)
63
62
62
64
Polyphonwerke (20)
178
176
173 178
177
140 138
Rhein-Westf. Elektr.(R.W.E.)(10)
137
138
140
Sachsenwerk Licht u. Kraft (734)
91
91
91
90
91
188
184
183
Siemens & Ilalske (14)
184
189
124
122 121
Leonhard nets (10)
121
124
60
59
Var. Stalhwerke (United Steel Works)(4)-- 62
60
61
108 ino
•Ex-dividend.
Tubize Artificial Silk. prof
Union d'Electricltle
Union des Mines
Wagons-Lits
245
1,060
870
315
240
1,050
650
305
251
1,060
650
308
977
282
1,060
640
315
976
258
1,050
810
318
ENGLISH FINANCIAL MARKET-PER CABLE.
(See page 2536.)
Course of Bank Clearings.
Bank clearings this week will again show a decrease as
compared with a year ago. Preliminary figures compiled by
us, based upon telegraphic advices from the chief cities of
the country indicate that for the week ended to-day (Saturday, April 4), bank exchanges for all the cities of the
United States from which it is possible to obtain weekly
returns will be 19.3% below those for the corresponding week
last year. Our preliminary total stands at $10,513,385,180
against $13,027,289,276 for the same week in 1929. At this
centre there is a loss for the five days ended Friday of 15.8%.
Our comparative summary for the week follows:
Clearings--Returns by Telegraph.
Week Ended Apr. 4.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
1931.
_
'
1930.
Per
Cent.
$6,425,576,651 $7,634,000,000 -15.6
394,515,334
540,673,599 -27.0
*300,000,000
505,000,000 -40.8
359,000,000
442,000,000 -18.8
68,902,003
106,128,483 -35.1
84,600,000
111,800,000 -24.3
131,407,000
176,723,000 -25.8
No longer will re port clearings.
*128,000,000
163,940,943 -21.9
125,783,540
154,610,321 -18.7
93,988,078
130,245,362 -27.9
57,455,481
95,723,892 -40.0
29,865,492
48,916,262 -38.9
Twelve cities, 5 days
Other cities, 5 days
88,199,093,559 210,109,761.862
989,952,155
728,727,425
-18.9
-26.4
Total all cities, 5 days
All cities, 1 day
88,927,820,984 $11,099,714,017
1,927,575,259
1,585,564,196
-19.8
-12.8
110 MR Ran 110 MR 027 2Rn 27R
-19_3
Tntal MI Milan fnr wrnk
•Estimated.
Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day, inasmuch as the week ends to-day
(Saturday) and the Saturday figures will not be available
until noon to-day. Accordingly, in the above the last day
of the week had to be in all cases estimated.
In the elaborate detailed statement, however, which we
present further below, we are able to give final and complete
results for the week previous-the week ended March 28.
For that week there is a decrease of 28.8%, the aggregate of
clearings for the whole country being $8,138,688,408, against
$11,422,528,137 in the same week of 1930. Outside of this
city there is a decrease of 24.4%, the bank clearings at this
centre recording a loss of 30.7%. We group the cities now
according to the Federal Reserve Districts in which they
are located, and from this it appears that in the New York
Reserve District, including this city, the totals show a contraction of 30.4%, in the Boston Reserve District of 19.6%
and in the Philadelphia Reserve District of 31.8%. In the
Cleveland Reserve District the totals are smaller by 23.2%,
2524
FINANCIAL CHRONICLE
(VOL. 132.
in the Richmond Reserve District by 19.0%, and in the
The volume of transactions in share properties on the
Atlanta Reserve District by 25.8%. The Chicago Reserve New York Stock Exchange each month since Jan. 1 for the
District suffers a loss of 25.0%, the St. Louis Reserve Dis- years 1928 to 1931 is indicated in the following:
trict of 29.5%, and the Minneapolis Reserve District of
11.3%. In the Kansas City Reserve District the decrease
1931.
1929.
1930.
1028.
No. Shares. No. Shares. No. Shares. No. Shares.
is 23.4%, in the Dallas Reserve District 16.1%, and in the
Month of January
42.503,382 82,308,290 110,805,940 56,919,395
San Francisco Reserve District 27.4%.
February
64,181,836
65,658,034
March
SUMMARY OF BANK CLEARINGS.
First Quarter_ _
Week End. Mar. 28 1931.
1931.
1930.
Inc.or
Dec.
8
491,407,753
8,067,977,752
526,179,108
396,048,066
156,443,103
150,192,170
801,872,902
182,991,140
97,656,613
169,052,384
59,672,215
323,034,931
%
-19.6
-30.4
-31.8
-23.2
-19.0
-25.8
-25.0
-29.5
-11.3
-23.4
-16.1
-27.4
$
394,913,597
5,611,425,12.3
358,705,346
304,299,727
126,774,425
111,324,644
601,545,574
128,907,937
86,632,081
129,433,485
50,058,348
234,668,121
Total
126 cities
Outside N. Y. City
8338,688,408 11,422,528,137 -28.8 13,247,185,294 11,792,555,494
2,661,895,339 3,504,080,179 -24.4 3,996,683,960 3,894,199,719
32 cities
287.772.852
$
540,684,549
8,041,503,710
580,082,467
387,048,601
168,511,468
167,634,000
982,574,107
202,399,711
118,255,983
183,323,611
65,808,748
354,728,549
$
544,457,986
9,428,455,027
573,426,633
420,482,390
160,328,818
164,719,097
1,021,477,961
201,151,935
101,449,539
198,419,134
74,905,492
358,011,282
385.948.379 -25.5
47,009,070
84,973,869
172,343,252 226,694,430 294,436,240 188,902,334
1928.
1929.
Federal Reserve Dints.
let Boston ____12 Cities
2nd New York_ _12 "
3rd Philadelpla 10 "
4th Cleveland
8 "
5th Richmond . 6 "
6th Atlanta____11 "
7th Chicago
20 "
8th St. Louls___ 8 "
9th Minneapolis 7 "
10111 Kan...meaty 11 "
11th Dallas
5 ''
12th San Fran 16 "
Canada
67,834,100 77,968,730
98,552,040 105,661,570
506.521.350
Our usual monthly detailed statement of transactions on
the New York Stock Exchange is appended. The results for
March and the three months of 1931 and 1930 are given
below:
Month of March.
Three Months.
Description.
1931.
1930.
1931.
1930.
Stocks, number of shares__
65,658,034 96,552,040 172,343,252 226,694,430
RR. 8, miscellaneous bonds $159,978,500 $252,335,000 $449,046,000 3536,111,000
State, foreign, &c., bonds_ _
74,028,000 77,569,000 193,496,500 181,381,500
U. S. Government bonds_
8,658,500 14,465,800
45,814,050
30,910,300
Total bonds
392.590 967
$242,665,000 $344,369,800 $688,356,550 $748,402,800
The following compilation covers the clearings by months
We also furnish to-day a summary by Federal Reserve
Districts of the clearings for the month of March. For since Jan. 1 in 1931 and 1930:
that month there is a decrease for the entire body of clearing
MONTHLY CLEARINGS.
houses of 23.0%, the 1931 aggregate of the clearings being
Clearings, Total All.
Clearings Outside New York.
$39,450,883,509 and the 1930 aggregate $51,213,563,913. Month.
1931.
1031.
In the New York Reserve District the falling off is 22.4%,
1930.
1930.
in the Boston Reserve District 16.1% and in the Philadelphia
Jan_ _ _ 39,847,890,282,50,646,101,836 ---21.3 14,547,430,105 18,614,797,286 --21.9
Reserve District 27.6%. The Cleveland Reserve District Feb_
_ 33,077,901,109141,670,120,620 --20.8 11,854,627,517 15,682,471,713 --24.4
shows a loss of 21.7%, the Richmond Reserve District of March 39,450,883,509,51.213,883,913 --23.0 13,282,498.527 17,448,505,786 --23.9
19.2% and the Atlanta Reserve District of 25.4%. In the 1st qu_ 112376874 900,143529786369 -21.8 39,684,558,149 51,745,774,785 -23.3
Chicago Reserve District the totals have dropped 44.6%, in
The course of bank clearings at leading cities of the country
the St. Louis Reserve District 30.3% and in the Minneapolis
for
the month of March and since Jan. 1 in each of the
Reserve District 13.9%. In the Kansas City Reserve District the totals fall behind 31.3%, in the Dallas Reserve last four years is shown in the subjoined statements:
District 19.0% and in the San Francisco Reserve District
BANK CLEARINGS AT LEADING CITIES.
28.5%.
March---- --Jan.Ito March 28-March
1931.
elk
March
1930.
March
1929.
Inc.or
Dec.
March
1928.
3
Federal Reserve Diets.
5
$
%
1,880,972,014 2,239,340,145 -16.1 2,499,085,829
let Boston ___ -14 eft!
2nd New York.. 14 " 26,765,042,923 34,487,125,214 -22.4 43,085,057,495
1,839,221,901 2,549,116,047 -27.6 2,751,780,226
3rd Philadelp'1a 14 "
1,432,738,814 1,830,613,709 -21.7 2,008,138,652
4th Cleveland_ _15 "
795,951,706
644,099,892
796,813,909 -19.2
565 Richmond .10 "
762,476,859 -25.4
869,451,497
568,687,454
665 Atlanta....._16 "
7th Chicago ___28 "
2,907,074,656 3,874,482,716 -44.6 4,845,016,524
889,009,026 -30.3
991,355,406
619,547,080
8th St.Louis...10 '
505,494,239 --13.9
584,961,153
435,335,525
9th Minneapolls13 "
738,775,325 1,074,968,873 -31.3 1,183,441,529
10th KansasCity 14 "
578,072,546
12 "
472,170,636 -19.0
1165 Dallas
382,343,001
1,237,044,924 1,731,952,540 -28.5 1,833,673,017
12th San Fran...26 "
185 citi
Total
Outside N. Y. City
Canada
5
2,585,409,904
36,133,671,384
2,741,575,142
1,839,734,319
841,821,321
832,565,312
4,633,837,389
992,726,274
563,793,142
1,021,097,397
614,016,729
1,878,847,917
39,450,8E3,509 51,213,563,913 -23.0 62,014,985,578 54,578,496,229
13,282,498,527 17,448,505,786 -23.9 19,696,903,487 19,124,661,140
32 cities
1.366.464 202
1695.587.398 -1.94
2.020.545.869
1.880.691_275
We append another table showing the clearings by Federal
Reserve districts for the three months back to 1928:
Federal Reserve Diets.
let Boston ___-14 cities
2nd New York..14 "
3rd Philadelpla 14 "
4th Cleveland__15 "
565 Richmond _10 "
5411 Atlanta___16 "
7th Chicago ......28 "
8th St. Louls__10 "
Rh Minneapolls13 "
10011 KansascIty 14 "
12 ."
Ilth Dallas
12th San Fran 26 "
3 Months
1931.
3 Months Inc.or 3 Months
1930.
Dec.
1929.
3 Months
1928.
$
5,391,966,503
74,456,618,977
5,511,630,341
4,384,975,945
1,897,133,083
1,758,731,451
8,629,371,436
1,996,042,760
1,248,548,285
2,338,836,179
1,168,815,273
3,685,004,667
3
6,762,444,351
93,950,730,971
7,884,519,309
5,319,270,185
2,297,760,579
2,282,004,1E6
11,510,801,917
2,669,004,609
1,468,568,360
3,102,322,373
1,455,304,132
4,827,055,398
$
7,517,964,591
95,334,488,301
7,736,939,021
5,446,788,863
2,412,663,847
2,451,044,363
13,284,922,655
2,955,420,231
1,581,300,728
3,098,321,875
1,554,606,915
5,253,791,622
%
-20.3
-20.7
-30.1
-17.6
-17.4
-23.0
-25.1
-28.6
-14.9
-24.5
-19.7
-23.7
5
7,348,597,388
24,461,263,467
8,278,202,542
5,912,786,254
2,363,549,080
2,543,884,512
14,593,106,311
3,027,574,839
1,636,384,481
3,348,936,694
1,727,313,013
5,261,503,371
185 cities 112,376,674,907 143,529,786,369 -21.8 180,503,100,952 148,825,153,002
Total
39,884,556,149 51,746,774,785 -23.3 58,571,269,772 55,022,432,111
putalde N. Y. City
nanada
32 cities
4,148,010,920
4,952,120,236 -16.2
6,015,951,940
5,540,519,953
(000,000s
1931. 1930.
omitted.)
New York
26,168 33,765
Chicago
1,814 2,485
Boston
1,686 1,990
Philadelphia
1,705 2,398
St. Louis
399
535
Pittsburgh
601
790
San Francisco
628
983
338
435
Baltimore
280
248
Cincinnati
388
554
Kansas City
445
584
Cleveland
328
268
Minneapolis
167
215
New Orleans
631
798
Detroit
100
171
Louisville
162
205
Omaha
47
60
Providence
101
132
Milwaukee
166
228
Buffalo
105
St. Paul
104
145
Denver
69
93
71
Indianapolis
194
150
Richmond
87
58
Memphis
183
145
Seattle
Salt Lake City- _ _
75
60
74
52
Hartford
Total
Other cities
1929.
42,318
3,158
2,217
2,580
816
820
952
419
331
802
654
347
230
997
166
214
71
155
261
154
174
102
185
98
239
77
84
1928.
1931.
1930.
1929.
1928.
35,454 72,692 91,784 122,152 93,321
3,156
5,500
7,468
9,733
9,075
2,319
4,792
6,025
6,482
6,710
2,559
5,124
7,432
7,733
7,192
628
1,243
1,612
1,871
1,874
767
1,855
2,228
2,436
2,248
1,880
1,020
2,617
2,714
2,842
459
997
1,242
1,254
1,329
337
759
850
983
1,007
586
1,201
1,614
1,718
1,686
533
1,354
1,719
1,862
1,585
340
794
962
996
955
257
570
655
711
765
2,285
2,880
2,240
796
1,756
167
302
502
533
511
215
467
571
573
557
65
147
185
216
199
181
307
394
452
537
218
498
651
770
649
138
268
295
404
390
421
95
298
483
374
99
226
284
312
296
444
563
195
558
552
92
170
272
296
279
231
416
513
656
606
185
230
75
228
226
75
155
203
260
225
36,769 47,892 58,221 51,057 104,400 133,577 169,266 138,230
7,977
9,963 11,337
9,598
2,682 3,322 3,814 3,521
39,451 51,214 62,015 54,578 112,377 143,530 180,503 148,828
Total all
Outside N.Y. City_13,283 17,449 19,697 19,125 39,685 51,746 58,571 55,022
We now add our detailed statement showing the figures
for each city separately for March and since Jan. 1 for two
years and for the week ended March 28 for four years:
CLEARINGS FOR MARCH,SINCE JANUARY 1, AND FOR WEEK ENDING MARCH 28.
Month of March.
Clearings at1931.
1930.
8
First Federal Rese rve District.--Boston.
2,555,547
2,519,891
Me.-Bangor
15,185,085
11,917,671
Portland
1,686,269,709 1,990,227,032
Mass.-Boston
5,043,975
4,579,719
Fall River
2,380,910
2,109,024
Holyoke
4,191,507
Lowell
1,869,283
4,318,861
New Bedford
.3,465,030
20,223,781
18,982,505
Springfield
14,228,476
Worcester
11,954,102
Conn.-Hartford_ _ _ _
74,221,826
51,678,467
New Haven
34,255,192
28,832,038
Waterbury
9,773,600
7,368,800
R. I.-Providence_ _ _
59,713,900
47,345,000
N. H.
-Manchester_
3.020,453
2,080,775
Total(14 cltles)
-1.4
-21.5
-15.3
-9.2
-11.4
-55.4
-19.7
-6.2
-16.4
-30.4
-15.8
-24.6
-20.7
-31.1
1,880,972,014 2,239,340,145 -16.1
Week Ended March 28.
Three Months Ended March 31.
Inc. or
Dec.
1929.
1928.
$
$
Inc. or
Dec.
1931.
1930.
Inc. or
Dec.
1929.
1928.
$
7,436,061
39,196,890
4,792,347,784
12,350,980
6,625,720
5,961,125
10,572,167
58,238,106
37,394,336
155,376,858
87,826,263
23,768,600
146,802,700
8,068,913
7,599,488
45,478,830
6,024,919,420
15,664,546
7,397,450
12,978,223
13,849,200
60,622,336
45,542,765
202,556,217
102,880,938
28,542,800
184,925,500
9,486.638
--2.1
--13.8
--20.4
--21.1
--10.4
--54.I
--22.3
--3.9
--17.9
---24.3
---14.5
--16.7
--20.6
--15.0
507,124
2,541,405
356,688,763
1,099,585
5,291,966,503
6,762,444,351 -20.3
526,725 -3.7
3,410,683 -25.5
440,000,000 -19.0
1,027,561 -7.0
579,108
2,994,193
491,000,000
1,313,196
503,263
3,213,587
485,000,000
1,582,697
379,071
658,881
3,804,693
2,406,453
10,003,033
6,307,809
928,200
851,783
4,244,247
3,081,049
17,392,861
7,016,545
-5-9:2
--22.7
--10.4
-22.0
--42.5
--11.1
1,142,866
1,223,096
4,678,642
3,506,669
15,106,611
6,578,899
917,369
1,261,721
4,979,594
2,924,342
18,494,524
7,383,634
10,093,300
423,480
12,234,100 -17-.5
693,999 -39.0
15,728,800
607,906
13,612,800
811,018
394,913,597
491,407,753 -19.6
544,457,986
540,684,549
APRIL 4 1931.]
2525
FINANCIAL CHRONICLE
CLEARINGS--(Conlinued.)
Month of March.
Week Ended March 28.
Three Months Ended March 31.
Clearings at1931.
1930.
$
5
Second Federal Re serve District.-New York.
N. Y.-Albany
30,053,286
27,885,905
Binghamton
4,637,613
5,306,462
165,930,890
Buffalo
228,039,170
4,335,683
Elmira
4,014,299
Jamestown
4,108,467
4,854,355
26,168,384,982 33,765,058,127
New York
Niagara Falls
*4,500,000
6,000,000
39,562,832
Rochester
47,579,286
Syracuse
20,835,129
23,633,825
Conn.-Stamford _ _
13,139,865
14,969,382
N. J.-Montclair_ _
3,086,393
3,565,849
Newark
136,850,013
145,448,383
163,393,503
Northern N. J
203,650,607
Oranges
6,224,267
7,119,864
Total (14 cities).-
Inc. or
Dec.
1929.
%
5
1928.
Inc. or
Dec.
1931.
$
%
5
16,785,528
58.483,611
13,847,745
54,577,863
25,237,751
8,215,466
9,246,181
7,432,000,000
45,619,512
62,770,256
43,918,894
25,440,754
29,342,748
59,033,000
Total (14 cities)..... 1,839,221,901 2,549,116,047 -27.6
5.511,630,341
7,884,519,309 -30.1
Fourth Federal R e serve District -Cleveland-Ohio-Akron
19,384,000 -17.5
16,002,000
Canton
19,909,016 -27.5
14,420,180
280,487,536 -11.4
248,444,630
Cincinnati
583,550,196 -23.7
445,454,232
Cleveland
67,827.600 -13.0
Columbus
58.998,500
4,753,122 -19.0
Hamilton
3,852,066
1,424,776 -15.9
Lorain
1,198,150
8,328,955 -16.5
Mansfield
6,953,334
28,111,162 -42.9
16,066,562
Youngstown
.
1,846,028 -30.2
1,288,075
Pa.-Beaver County.
Franklin
565,536
749,406 -24.5
1,644,956
3,016,977 -45.5
Greensburg
601,232,667
789,784,748 -23.4
Pittsburgh
5,980,328 -33.1
Ky.-Lexington. _
4,000,000
W. Va.-Wheeling_ .
12,617,926
15,459,859 -18.4
44,899,000
43,831,045
758,521,988
1,354,095,169
170,527,000
10,823,552
3,870,933
19,491,284
50,205,983
4,329,060
1,812,704
11,473,067
1.555,223,324
18,836,199
37,035,637
59,873,000
55,908,525
849,529,600
1,718,591,083
201.953,900
13,605,813
4,591,314
23,764,546
70.274,866
5,632,237
2,318,711
9,015,393
2.225,042,730
29,665,455
46,503,012
4,354,975,945
5,319.270,185 -17.6
Total (15 cities)._. 1,432,738,814 1,830,613,209 -21-7
Fifth Federal Res e rve District- RichmondW. Va.-Huntington
2,677,543
4,821,860 -44.5
Va.-Norfolk
14,426,832
16,956,006 -14.9
Richmond
149,560,233
193,512,857 -22.7
N. C.-Raleigh
7,906,720
9,696,923 -18.5
S. C.-Charleston..
7,827,118
9,234,602 -15.2
Columbia
8,896,442
8,690,783 +2.4
Md.-Baltimore_
335,947,877
435,148,624 -22.9
.
Frederick
1,795,778
2,001,876 -10.3
Hagerstown
2,618,189
2,636,681 -0.6
D. C.-Washington..
112,443,160
114,113,697 -1.5
6'14,099,892
796,813,909 -19.2
Sixth Federal Rese rye District- AtlantaTenn.-Knoxville __ _ _
*8,000,000
12,050,580
Nashville
58,772,754
97,829,054
Ga.-Atlanta
202,990,169
167,082,385
Augusta
6,059,320
7,247,442
Columbus
3,187,613
5,153,970
Macon
3,527,890
6,469,186
Fla.-Jacksonville_ _ .
61,651,038
74,841,003
Tampa
7,285,434
9,490,981
99,063,360
Ala -Birmingham...
61,943,960
6,528,288
8,137,787
Mobile
3,194,348
5,219.352
Montgomery
5,257,000
6,581,000
Miss.-Hattiesburg_.
6,309,210
8,573,283
Jackson
3,417.365
1,762,794
Meridian
890,381
600,124
Vicksburg
La.-New Orleans...
167,525,296
214,521.946
568,687,454
762,476,859 -25.4
1,758,731,451
2,196,746
11,505,468
1,756,236,445
30,538,912
61,422,302
11.195,929
37,089,164
31,259,303
47,525,871
225,615,000
25,945,979
60,281.402
31,937,047
306,749,212
9,254,439
34,828,129
144,093,235
89,658,363
5,045,979
50,127,642
10,985,351
11,338,492
18,964,140
5,500,139,129
12,176,109
43,875,809
30,149,031
29,236,808
-22.6
-12.0
-20.9
-8.3
-21.0
-52.2
-21.5
-26.7
-20.3
-24.1
-20.2
-17.8
-19.2
-23.9
-5.7
-17.2
+4.5
-31.2
-29.2
-40.5
-26.2
-22.5
-16.6
-27.0
-17.5
-31.8
-28.9
-18.5
ifF'71711177
Eighth Federal Re serve District -St. Louis17,637,786
Ind.-Evansville„..._
19,474,829
New Albany
1,111,627
680,122
_
Mo.-St. Louis
399,659,052
534,713,021
_
Ky.-Louisville
100,302,337
170,749,242
Owensboro
1,269,035
1,792,703
Paducah
5,677,999
10,513,876
Tenn.-Memphis.
58,244,444
87,265,206
31,882,284
Ark -Little Bock.. _
56,202,536
703,911
Ill.-Jacksonville.. _
1,034,932
.
3,158,605
Quincy
6,581,659
1,897,133,083
30,500,000
183,850,769
482.078,965
18,099,247
9,608,307
11,384,450
170,677,188
20,702,898
184,333,275
19,770.910
10,128,307
17,421,000
22,115,153
5,713,052
2,087,620
570,260,310
Total(28 cities)... _ 2,907,074,656 3,874,482,716
619,547,080
8,950,204
43,802,143
443,521,822
22,242,522
22,779,183
27,145,639
997,300,975
5,057,874
7,373,772
318,949,949
-33.6
-40.0
-17.7
-16.4
-38.3
-44.0
-17.6
-23.2
-37.5
-19.8
-38.8
-20.1
-26.4
-48.5
-32.6
-21.9
Seventh Federal t eserve Metric t-Chicago777,101
1,003,504
Mich.-Adrian
3,905,699
Ann Arbor
3,438,057
631,204,962
797,624,529
Detroit
12,426,246
Flint
11,394,371
25,381,850
Grand Rapids- - - - _
20,055,928
6,962,190
3,330,000
Jackson
12.167,252
15,502,175
Lansing
14,082,712
10,321,588
Ind.-Ft. Wayne.._ _
16,180,404
20,300,736
Gary
93,125,000
Indianapolis
70,694,000
8,604,117
10,780,403
South Bend
18,959,349
23,060,707
Terre Haute
11 560,419
14,301,418
Wis.-Madison
132,426,593
100,888,622
Milwaukee
Oshkosh
3.218,284
3,413,723
11,567,461
Iowa-Cedar Rapids _
13,066,865
Davenport
54,282 665
51,929,714
32,171,461
46,749,584
Des Moines
1,707,151
Iowa City
2,409,363
16,983,163
Sioux City
28,545,934
Waterloo
4,021,099
6,621,050
3,798,715
.
111.-Aurora
4,900,545
Bloomington
7,372,695
8,841,552
1,814,410,487 2,484,522,819
Chicago
Decatur
4,167,014
5,048,183
13,996,417
Peoria
20,525,927
Rockford
10,232,210
14,388,579
9,569,664
Springfield
11,735,116
Total(10 Cities).- --
1929.
1928.
6
%
$
$
.
5,461,466
6,595,875
+13.9
1,022,794
1,496,872
-14.1
47,204,710
57,649.144
-30.3
964,972
1,521,137
+5.5
1,052,024
1,157,252
--16.6
-30.7 9,260,501,334 7,898,355,773
-21.3
-3.3
+7.1
-37.5
-9.9
-14.4
-- --
12,841,156
6,042,998
3,779,174
778,615
28,449,244
47,642,226
12,910,850
*6,000,000
3,444,596
603.404
26.982,930
37,500,189
26,765,042,923 34,487,125,214 -22.4 74,456,618,977 93,950,730,971 -20.7 5.611,425,123 8,067.977,752 -30.4 9,428,455,027 8,041,503,710
12,774,105
41,051,543
12,046,975
45,640,140
24,910,382
6,650.283
8,228,155
5,123,000,000
35,129,895
56,599,261
40,713,228
23,328,496
25,101,878
56,456,000
Total (16 cities)___ _
Inc.or
Dec.
82,067,039
81,941,237 +0.1
+7.8
9,115,566
8,001,650
17,242,805 -11.0
-12.6
15,355,172
878,771
1,022,376
650,865,705 -23.5
498,104,914
-27.2
51,112,790
35,631,683
13,421,829 +2.6
13,770,334
+8.0
961,279
910,905
-15.4
13,278,508
16,032,873 -17.2
833,226
998,523
-22.5 72,692,118,751 91,784.011.584 -20.8 5,486,793,069 7,918,447,958
11,936,133
15,992,773 -25.4
-25.0
163,140,52 -24.2
9,297,939
123,656,077
-16.8
7,317,537
-11.9
64,558,807
69,868,074 -7.6
4,329,701
4,477,773
39,415,794
51,256,954 -23.1
3,465,437
3,235,200
-12.2
-13.4
8,943,043
9,936,48 -10.0
449,028
718,013
29,836,231
395,641,784
440,200,13 -10.1
-5.9
26,897,988
-19.8
40,588,586
34,751,838
+8.8
478,956,059
615,816,43
-12.6
18,816,562
21,003,56 -10.4
Third Federal Re erre District.-Philadelph is.Pa.-Altoona
3,096.741
5,405,867 -42.7
•
Bethlehem
13,929,162
19,097,760 -27.1
•
Chester
3,934,094
4,339,564 -9.3
•
Harrisburg
14,749,403
18,162,494 -18.5
•
11,259,417
Lancaster
10,053,725 +11.9
Lebanon
2,379,160
2,897,563 -18.9
Norristown
2,677,370
3,133,437 -14.5
• 1,705,000,000 2,398,000,000 -28.9
Philadelphia
Reading
15,107,114 -22.6
11,698,750
Scranton
19,208,209
22,030,851 -12.8
Wilkes-Barre
12,970,299
14,369,374 -9.7
York
8,783,998 -10.3
7,883,296
N.J.-Camden
9,479,300 -17.3
7,837,000
Trenton
18,255,000 +23.8
.
22,599,000
Total (10 cities)__.
1930.
14,337,642
50,960,290
562,720,225
27,449.597
26,775,809
28,240,589
1.241,976,291
5,652,206
7,769,778
328.878,172
-23.9
-29.2
-14.0
16.4
-1.3
17.8
-11.0
-31.1
-23.0
-9.8
-7.3
-8.3
-14.5
-4.3
794,085
3,462,871
760,735
1,024,212 -22.5
5,221,351 -33.4
864,286 -12.0
1,138,183
5,310,650
1.072,008
1,156.425
3,844,865
1,163,537
2,341,848
2,277.688
+2.8
2,379,895
3,084,812
337,000,000
2,388,375
3,805,572
2,514,218
1.556,642
500,000,000
3,302,592
4,637,751
3,055,514
1,822,714
-32.6
-27.7
-17.9
-17.7
-14.6
544,000,000
3,746,749
5,987,727
3.610,800
1,949,129
550,000,000
3,459,201
6,059,780
3,548,909
2,121,388
3,973,000
+2.7
4,231,492
5.643,540
526,179,108 -31.8
573,426,633
580.082,457
-14.8
-28.4
-4.3
-22.8
-33.5
6,678.000
5,852,746
70,000,000
142,538.848
14,689,500
7.649,000
3,258,494
72,158,187
116,547,118
14.454,600
1,802,892
3,711,611
1,961,437 -8.1
5,018,941 -26.0
1,949,180
6,002,730
1,801,196
6.013,662
131,257,815
185,909,302 -29.4
172,771,386
165,166,344
304,299,727
396,048,066 -23.2
420,482,390
387.048,601
593,274
2,998,879
32,821.709
1,002,696 -40.2
1,955,772 +53.4
43,770,000 -25.0
914,059
4.589,993
43.497,477
1,045.041
4,722,424
41,707,000
4,081,000
358,705,346
4,472,000
2,854,667
55,167,917
94,700,825
10,332,000
-25.0
-21.6
-10.7
-21.2
-15.6
-20.4
-15.7
-18.0
-28.6
-23.1
-21.8
+27.3
-16.8
-36.5
-20.4
-37.5
-18.8
-21.2
-18.9
-14.9
-3.9
-19.7
-10.5
-5.1
-3.0
1,579,110
1,919,353 -17.3
1,658,000
2.000,000
65,634,490
84,398,561 -22.2
80,447,939
92.402,216
23,146,963
126,774,425
2,297,760,579 -17.4
5,250,000
3,987,504
57,737,581
122,871,101
13,312,200
-1.1
29,221.350
26,634,787
156,443,103 -19.0
160.328,818
168,511,468
23,396,721
*1,500,000
11,530,535
34,238,067
1,314,129
1,980,038
19,299,892
43,634.620
1,570,599
-24.2
-40.2
-21.6
-16.3
2,800,006
21,661,847
53,552.753
1.919.954
2.750,000
20,380,805
46.000,000
1,938,407
692.490
13,000,304
1,224,226 -43.5
14,376,340 -9.6
1,389,149
13,788,927
945,084
16.718,362
13,908,862
1,341,708
21,000,753 -33.8
1,570.805 -14.6
21,732,210
1,677,399
23,060,741
1,678,601
1,057,000
1,574.666 -32.9
1.781,500
1,488.000
100,674
32,640,875
159,464 -36.9
43,800,767 -25.5
313,427
42,101,931
390,500
52.283,500
2,282,004,185 -23.0
111.324,644
150,192,170 -25.8
164.719,097
167,634,000
3,048,207
11,687,574
2,285,398,343
40,423,794
71,999,041
22,932,094
48,221,101
44,369,318
65,202,513
283,562,000
34,261,225
70,521,823
38,754,458
393,680,935
10,395,811
39,517,506
152,375,613
126,646,503
6,097,845
83,555,207
19,089,748
13,901,084
22,362,378
7.467.823,768
14,831,578
65,043,025
41,919,962
33,179,463
114,213
495,507
153,236.855
186,075 -38.6
748,778 -33.6
184,665,122 -17.0
296,230
1,579,830
227,551,432
249,399
1,339,013
173.898.450
40,989,544
280,651.429
602,780,777
23,277,291
13,647,357
18,790,526
209,340.374
27,706,155
304,077,853
25,951.665
18,719,446
20,208,000
28,047,941
10,199,314
3,006,625
654,609,888
-25.6
-34.5
-20.0
-22.3
-29.6
-39.4
-18.5
-25.3
-39.4
-23.8
-45.9
-13.8
-21.2
--44.0
-30.6
-13.9
•
-28.0
-1.5
-23.1
-24.3
-14.6
-51.2
-23.1
-29.6
-27.1
-20.4
-24.3
-14.5
-17.6
-22.1
-11.0
-11.9
-5.4
-29.2
-17.2
-40.0
-42.5
-18.5
-15.2
-26.3
-18.0
-32.5
-28.1
-10.4
1,285,314
375,305,035
1,007,140
2,994,602
2,115.487
2,072,381
1,634,349
519,056,676
11003,684
4,013,477
2,607,100
2.429,210
8.629,371,436 11.510.801,917 -25.1
601,545,574
,
'
55,624,599
3,308,709
1,243,652,731
301,680,079
5,237,311
18,531,776
169,553,834
97,002,113
1,952,197
8,499.411
48,027,917
2,073.725
1.611.649,555
501,635,950
7,826,167
29,730,437
271,658,022
165,891,473
3,132,656
17,378,707
889,009,026 -30.3
1,905,042,760
2,669,004,609 -28.6
-4.1
+59.7
-22.8
-39.9
-33.1
-22.1
-37.6
-41.5
-37.7
-51.2
4,974,062
6,579,051 -24.4
8,359,418
6,748,323
2,218,610
2,001,715
3,345,087 -33.7
2,851,545 -29.8
3,223,576
4,097.102
2,760,982
2,440,191
13,977,000
1,699,122
3,892,543
17,585,000 -20.5
2,262,704 -24.9
4,482,596 -13.2
20,095,000
2,622,824
5,027,671
19,261,000
2,552,900
4,791,865
21,160,677
29,022,426 -27.1
35,811,433
36,878,257
2,436,261
2.752,621 --11.5
2,767,587
2,731,302
6,141,194
9,778,943 -37.2
9,314,728
9,691,955
3,547,406
870,450
5,515.985 -35.7
1,354,473 -48.9
7,451,627
1,878,784
7,211,154
6,166,679
-21.4
-27.7
+0.4
-25.4
-18.9
-14.7
2,080,034
677,145,809
1,045,302
4,948,017
3,467,769
2,713,788
1.855,857
691.432,441
1.164,315
4,946,398
3,539,373
2.914,253
801,872,902 -25.0 1,021,477.961
982,574,107
3,353,511
84,900,000
20,761,509
202,504
12,134,023
6,712,235
135,937
708,976
128,007,937
3,706,995
-9.5
5,129,985
4,175,561
114,970,392 -26.1
33,693.111 -38.4
290,536 -30.3
129,500,000
32.354,400
283,938
134,300,000
31,701.929
311,156
-31.3
-40.3
-20.2
-44.2
18,710,240
13.301,092
378,530
1,493,750
18,150,044
11,788,13C
310,364
1,662,527
182,991,140 -29.5
201,151,935
202,399,711
17,853,871
11,237,205
170,418
1,268,612
[VoL. 132.
FINANCIAL CHRONICLE
2526
CLEAR!NGS-(Coneluded)
Three Months Ended March 31.
Month of March.
Clearings at
1930.
1931.
Inc. or
Dec.
1929.
1928.
3
3
$
%
$
Ninth Federal Res eras District- -Minneapolis21,223,462 -14.7
18,109,357
7.Iinn.-Duluth
327,887,976 -18.2
268,039,920
Minneapolis
2,411,897 -40.7
1,430,091
Rochester
104,548,028 -0.7
103,863,950
St. Paul
8,925,561 +0.1
8,933,538
N. Dak.-Fargo
6,030,000 -8.9
5,494,000
Grand Forks
1,412,477 -15.2
1,198,000
Minot
4,092,017 -8.0
3,765,697
S. Dak.-Aberdeen
8,683,946 -17.2
7,189,409
Sioux Falls
2,528,090 -4.8
2,408,687
Mont.-Billings
4,522,296 -15.4
3,284,820
Great Falls
12,787,622 -11.0
11,375,625
Helena
446,867 -45.0
242,431
Lewistown
52,340,926
794,165,596
4,203,983
267,937,639
24,148,554
17,057,000
3,480,777
11,072,489
22,790,230
6,950,442
9,813,808
33.846,418
740,423
505,494,239 -13.9
,
!Vest Ended March 28.
inc. or
Dec.
1931.
1930.
Inc. or
Dec.
1929.
%
$
$
%
$
1928.
$
-12.4
-17.5
-41.3
-9.0
-2.6
-7.5
-22.4
-13.4
-13.4
--8.9
-23.6
-7.9
-20.6
3,712,273
54,817,389
3,698,700 +0.4
66,750,156 -17.9
6,760,458
66,987,704
6,234,319
68,507,215
23,143,288
1,596,946
21,450,085
1.699,942
+7.9
-6.1
21,365,926
1,732,011
27,132,232
11,732,152
837,884
902,088
-7.1
1,010.816
1,271,920
405,232
501,362 -19.2
590.626
583,145
2,119,069
2,654,280 -20.2
3,002,000
2,795,000
1,248,548,285
1,468,568,360 -14.9
86,632,081
97,656,613 -11.3
101,449,539
118,255,983
Tenth Federal Res erve District- -Kansas City1,714,282 -23.7
1,308,071
Neb.-Fremont
2,542,246 -32.2
1,725,748
Hastings
17,273,484 -18.5
14,063,016
Lincoln
204,828,189 -20.8
162,091,308
Omaha
10,150,523 +0.9
10,259,819
Kans.-Kans. City-.
14,133,648 -12.9
12,314,595
Topeka
-20.7
30,724,728
21,591,595
Wichita
4,832,778 -51.9
2,323,654
Mo.-Joplln
553,977,614 -28.2
387,564,591
Kansas City
32,686,526 -43.4
18,502,000
St. Joseph
45,000,000 -36.4
28,637,739
Okla.-Tulsa
5,558,769 -21.0
4,335,718
Colo.-Colo. Springs_
144,644,445 -52.4
68,837,301
benver
6,901,641 -24.4
5,220,140
Pueblo
3,674,468
5,251,293
38,966,983
467,479,982
28,179,029
38,508,480
73,100,450
7,274,714
1,201,220,207
59,161,003
89,299,619
12,658,945
298,156,185
16,204,821
4,588,653
6,762,930
48,116,176
570,850,381
29,689,385
43,774,675
92,751,912
13,678,360
1,613,860,212
'88,286,624
133,417,446
15,303,053
421,030,615
20,211,952
-19.9
-20.9
-19.0
-18.1
-5.1
-12.0
-21.2
-46.8
-25.6
-32.0
-33.2
-17.3
-19.0
-19.8
203,650
203,884
2,440,826
32,798,008
279,991
409,567
3,063,300
40,107,828
-27.3
-35.6
-20.3
-18.2
347,966
629,774
3,815,608
44,675,042
324,567
500,156
4,908,161
40,392,037
2,703,528
4,394,600
2,684,648 +0.7
6.572,612 -33.1
2,558,614
7,012,001
2,679,065
7,580,910
80,393,853
4,437,829
108,561,720 -26.0
5,052,525 -12.2
129,648,868
7,187,587
118,433,998
6,155,568
873,946
a
923,361
966,811 -9.6
a
a
1,353,382 -31.7
1,115,695
a
1,427,979
1,090,883
a
1,258,266
738,775,325 1,074,968,873 -31.3
2.338,836,179
3,102,322,373 -24.5
129,433,485
169,052,384 -23.4
198,419,134
183,323,611
Total(13 cities)
Total(14 cities) _
435.335.525
_
Eleventh Federal Reserve Distr int-Dallas-7,352,305
6,733,428
Texas-Austin
8,089,000
6,493,000
Beaumont
190,336,356
156,058,354
Dallas
213,741,097
22,060,061
El Paso
47,847,597
34,100,000
Fort Worth
15,524,000
12,479,000
Galveston
138,864,024
119,325,679
Houston
3,167,6.56
2,002,651
Port Arthur
2,569,190
1,489,995
Texarkana
9,293,000
5,507,000
Wichita Falls
22,386,411
16,093,833
La-Shreveport
Total(12 cities) _ __ _
382,343,001
-8.4
-10.7
-18.1
-17.5
-28.3
-10.6
-14.1
-36.8
-53.0
-40.7
-28.1
18,854,159
21,548,931
470,251,034
65,896,414
103,374,848
37,310,000
375,154,583
6,609,615
4,730,229
16,951,000
48,133,860
472.170.636 -19.0
1,168,815,273
59,752,689
962,080,148
7,165,283
294,554,487
24,776,572
18,457,000
4,488,010
12,787,305
26,338,286
7,629,245
12,861,239
36,745,026
933,090
20,400,821
27,005,000
575,616,160
83,514,930
149.059,162
51,873.000
427,806,275
9,647,279
7,405,598
29,274.000
73,701,907
-7.5
-20.2
-18.3
-21.1
-30.6
-28.1
-12.3
-31.4
-36.1
-42.1
-34.7
1,455,304,132 -19.7
Twelfth Federal R eserve Distric 1-San Franc Isco4,000,000 -24.9
*3,000,000
W ash.-Bellingham _.
183.228,464 -20.1
145,089,063
Seattle
47,108,483 -12.7
41,146,000
Spokane
4.469.470 -6.7
4,169,324
Yakima
5,155,195 -2.9
5,005,465
Idaho-BoLse
1,794,675 -29.6
1,264,000
3regon-Eugene
148,804,607 -20.8
117,991,963
Portland
6,690,346 -27.9
4,823,919
.Ttah-Ogden
75,499,450 -20.9
59,738,955
Salt Lake City
19,072,000 -28.3
13,672,000
krizona-Phoenix_ _
6,128,589 -33.9
4,048,059
L'ailf.-Bakersticid
19,841,164 -21.8
15,524,702
Berkeley
31,674.558 -20.8
25,104,799
Long Beach
No longer WI 11 report dead ngs.
Los Angeles
3,997,551 -37.1
2,515,720
Modesto
69.649,180 -20.3
55,491,337
Oakland
-15.0
26,654,710
22,655,248
Pasadena
4,721,670 -23.3
3,623,060
Riverside
26,917,842 +17.4
31,581,462
Sacramento
23,319,866 -20.5
18,525,992
San Diego
982,829,073 -36.1
628,058,618
San Francisco
11,808,853 -13.2
10,249,722
San Jose
8,289,524 -11.0
7,878,832
Santa Barbara
8,270,054 -11.4
7,327,234
Santa Monica
2,030,918 -18.4
1,656,850
Santa Rosa
9,995,700 -30.9
6,902,600
Stockton
8,609,000
416,404,772
121,448,001
11,878,921
16,590,188
3,672,001
337,716,221
15,181,506
185,458,863
41,509,000
12,569,863
48,532,661
78,068,530
11,614,000
512,672,747
138,082,344
15,675,562
15,986,224
5,219,675
426,459,373
20,648,528
229,640,547
58,092,000
19,779.894
61,025,321
95,844,781
-25.9
-18.8
-12.0
-24.2
+3.8
-29.6
-20.8
-26.5
-19.9
-28.(
-36.1
-20.
-18.1
7,901,327
170,199,873
69,101,517
11,481,198
84,328,801
61,035,161
1,879,652,135
32,568,465
23,585,817
22,233,622
4,776,624
20,497,600
12,637,676
200,022,561
80,759,788
13,455,554
91,640,962
73.920,700
2,617,039,871
40,441,573
25,459,814
25,136,504
6,154,801
29,644,600
-371
-14.1
,
-14.
-14.1
-7.1
-17.4
-28.1
-19.1
-7.1
-11.1
-22.4
-30.9
1,237,044,924 1,731,952,540 -28.5
3,685,004,667
4,827,055,398 -23.7
1,488,770
35,773,156
7,425,680
2,003,000
1,881,431 -30.9
2,028,869
1,478,717
-9.2
52,502,198
45.264,613
11,317,367 -34.4
2,877,000 -30.4
11,356,189
5,110,000
10,160,476
4,379,000
39,388,598
3,367,742
4,207,819 -20.2
3,808,236
4,525,942
50,058,348
59,672,215 -10.1
74.805,492
65,808,748
29.167,610
7,797,001
841,5213
38,544,596 -24.3
9,308,000 -16.2
877,799 -4.1
51,791,993
11,016,000
*1,100,000
47,880,098
10,741,000
1,084,392
22,815.359
30,205,922 -24.5
36,782,228
32,698,761
12,940,192
15,984,877 -19.0
16.846,211
14,343,880
6,595,424 -19.4
5,318,528
No longer will report Cl earings
8,316,524
6,968,798
13,380,887 -8.8
5,382,773 -21.1
17,210,286
6,925,547
17,974,806
6,308,179
+31.0
-25.7
-33.6
-9.5
-7.8
-15.7
5,352.024
5,375,283
188,564,933
2,568,141
1,546,556
2,013,356
4,342,059
4,582,422
199,883,000
2,413,071
1,244,160
1,761,323
12,209,237
4,245,645
5,778,616
3,436,213
123,663,919
2,182,873
1,430,943
1,485,560
4,411,558
4,627,727
186,223,039
2,411,450
1,551,894
1,761,387
1,354,900
1,767,600 -23.4
2,602,200
2,502,600
234,668,121
323,034,931 -27.4
358.011,282
354,728,549
Total(26 cities). _
-21.8 8,138,688,408 11422,528.137 -28.8 13247,185,294 11792,555,494
;rand total(185 cities) 39,450,883,509 51,213,563,913 -23.0112,376,074,900143.529,788.369
2,651,895,339 3,504,080,179 -24.4 3,986,683,960 3,894,199,719
Outside New York- 13,282,498,527 17,448,505,786 -23.9 39,684,556,149 51,745,774,785 -23.3
ENDING MARCH 26.
CANADIAN CLEARINGS FOR MARCH, SINCE J ANUARY 1, AND FOR WEEK
1928.
132,997,924
128,380,156
46,226,216
20,320,228
6,155,220
5,189,535
2,776.169
5,210,422
11,485,678
2,494,854
2,053,038
2,705,526
5,381,610
4.047,786
456,855
544,725
2,013,023
1,056,798
1,136,050
759,926
740,606
447,341
777,672
753,390
1,052,060
4,420,034
388,407
715,672
627,333
669,676
607,037
237.772,852
385,943,379 -25.5 506,521,350
392,590,967
4,148,010,920
4,952,120,236 -16.2
1928.
$
167,970.487
166,360,940
57,505,667
31,156,200
7,654,291
6,072,768
3,769.374
6,744,201
17,200,037
3,172,682
2,751,477
2,989,950
6,545,319
4.265.620
523,537
643,392
2,246,110
1,232,956
1,420,434
814,916
1,060,211
464,668
994,274
1,052,768
1,210,348
6,844,111
478,384
.
887.976
796,419
931,516
778,317
1 366 464 202 1,695,587,398 -19.4
a No longer reports weekly clearings. • Estimated.
1929.
$
134,350,510
128,284,152
43,967,744
18.679,057
5,522,467
5.019,434
2,709,934
5,278,523
8,276,949
2,043,979
2,171,993
3,104,437
4,523,039
4,148,833
389.595
438,902
1,706,032
886,073
844,045
648,512
856,351
255,056
911,810
727,263
1,064,910
4,866,921
359,871
827,948
606,518
506,748
748,010
1,222,763
$
1,479,716,981
1,364,991,823
403,655,033
197,916,666
76,417,573
66,898,688
36,179,568
60,258,683
85,871,819
29,608,281
23,860,270
36,291,455
55,984,409
40,992,385
4,911,112
4,865,560
21,474,138
9,771,125
12,250,235
7,849,263
7,888,928
2,724,891
9,491,795
9.147,939
13,352,130
40,050,468
5,291,537
8,867,155
7,782.675
7,741,282
0F,750,536
9,156.517
8
600,555,371
537,664,282
185,675,455
84,557,784
29,599,215
24,922,358
12,941,723
25,768.043
38,554,463
9,844,263
9,860,451
14,364,175
22,705,082
17,510,171
1,861,318
2,223,748
8,261,962
4,345,816
4,393,334
3,167,888
3,447,497
1,252,251
3,729,913
3,815,102
5,369.167
20,461,560
1,780.749
3,564,188
3,034,148
2,317,351
3,133,064
4,905,506
1930.
$
100,602,652
103,267,173
26,731,502
15,014,905
4,999,793
4,555,277
3,255,781
4,266,305
5,004,305
2,222,278
1,550,094
2,197,820
3,736,040
2,707,428
312,760
331,573
1,425,408
591,389
846,517
512,703
546,954
186,535
595,879
661,135
922,547
2,752,732
323.715
587,721
483,601
442,142
460,692
681,801
%
-19.1
-14.8
-32.1
-21.0
-13.3
-6.7
-2.2
-23.9
-35.3
-4.3
-20.5
-21.2
-22.7
-22.2
-14.5
-27.6
-18.0
-32.9
-8.5
-16.4
-24.9
-26.9
-17.3
-14.1
-18.1
-28.1
+34.3
-18.3
-20.3
-2.6
-30.9
-35.4
$
485,687,253
458,038,353
126.191,101
66,776,186
25,664,399
23,250.874
12,665,462
19,610,991
24,962.528
9,417,481
7,834,838
11,323.590
17,548,159
13,620,832
1,591,421
1,611,564
6.772,521
2,916,683
4,022,808
2,649,660
2,588,221
915,965
3,085,648
3,278,258
4,399,194
14,728,488
2,390,500
2,911,138
2,419,758
2,257,753
2,164,513
3,168,062
1931.
%
-12.3
-13.2
-28.6
-22.6
-14.1
-10.9
-9.8
-23.4
-31.2
+2.5
-19.7
-8.7
-21.8
-22.5
-17.1
-28.8
-17.6
-26.2
-11.3
-19.4
-24.0
-32.5
-9.9
-18.0
-14.6
-31.6
-0.5
-21.5
-17.0
--5.7
-24.8
-36.6
$
1,686,217,634
1,571,319,638
565,194,942
255,786,516
88,979,657
75,087,768
40,121,829
78,639,279
124,603,594
28,883,566
29,707,272
39,741,943
71,544,076
52,912,950
5,924,277
6,832,136
26,046,140
13,235,232
13,816,526
9,773,854
10,374,732
4,032,353
10,636,281
11,168,180
15,641,235
58,542,560
5,315,904
11,288,805
9,372,817
8,207,046
8,979,609
14,431,685
,
....MVOOMOWOM
..4.NO‘ONNNWODOC4Vt.C...5.20,(10.-.01
Total(32 cities)_
1929.
Inc. or
Dec.
•
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
It. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
3askatoon
Moose Jaw
Brantford
Fort William
New Westminster_
Medicine Hat
Peterborough
3herbrooke
Kitchener
Windsor
Prince Albert
Moncton
Kingston
L'hatham
3arnia
3udbury
1930.
Inc. or
Dec.
410g477R24xAg=24E20MEA02"'2g4Ta,X,
IIII +11 +11111111 + 1111 1 17111111
aq
,
1931.
Week Ended March 26.
Three Months Ended March 31.
Month of March.
Clearings at-
APRIL
THE CURB EXCHANGE.
Despite the apparent firmness to Curb securities, at times
prices continued to weaken slowly, though losses in the
majority of instances were not large. Utilities show the
heavier losses. American & Foreign Power warrants
dropped from 263/i to 23. Amer. Gas & Elec. com. reacted
from 78% to 743 and closed to-day at 75. Amer. Light &
Traction com. weakened from 523/2 to 50. Commonwealth
Edison lost over ten points to 239, closing to-day at 240%.
5 to 463/s,
Electric Bond & Share coin. sold down from 54%
the close to-day being at 473/s. Middle West Utilities com.
was active and lower, moving down from 233/8 to 20%, with
the final figure to-day at 21. Northern States Power fell
from 146 to 141 y, and rested finally at 141%. While
industrials and miscellaneous issues for the most part were
lower, losses were not large. Aluminum Co. of Amer. coin.
declined from 191% to 1853., recovered to 202 and reacted
finally to 180. Deere & Co. corn. weakened from 353' to
483g and finished to-day at 29%. Mead, Johnson & Co.
com., after early loss from 1073
4 to 993 sold up to 1023'
and closed to-day. at 101. Parker Rust-Proof Co. was
conspicuous for a drop from 963/i to 87, the close to-day
being at 91. Insull Utility Investment coin. was off from
413
4 to 36%. Oils were dull. Chesebrough sold up from
1153 to 120. Vacuum Oil declined from 55 to 53% and
closed at 533
4. Gulf Oil sold down from 653 to 61.
A complete record of Curb Exchange transactions for the
week will be found on page 2500.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Bonds (Par Value).
Week Ended
Apr.3 1931.
Stocks
(Number of
Shares.)
Total
Rights.
Foreign
Domestic. Government.
Total
468,700
666,800
527,100
448,400
708.100
7,700 $2,152,000
14,500 3,526,000
42,600 3,398,000
15,300 3,187,000
28,100 3,232,000
HOLI DAY
$22,000 $2,174,000
77,000 3,603,000
86,000 3,484,000
57,000 2,244,000
78,000 3,310,000
2,819,100
108,200 $15,495,000
$320,000 $15,815,000
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
CommerciattuxtiA,XisceriaturatsItems
Breadstuffs figures brought from page 2624.-All
the statements below regarding the movement of grainreceipts, exports, visible supply, &c., are prepared by us
from figures collected by the New York Produce Exchange.
First we give the receipts at Western lake and river ports
for the week ending last Saturday and since Aug. 1 for
each of the last three years:
Flour.
Receipts atChicago
M1nneapol1sDuluth
Mi1waukee_ -Toledo
Detroit
Indianapolis_
St. Louis_ _ _ _
Peoria
Kansas City
Omaha
St. Joseph_ _ _
Wichita
Sioux City._ _
Wheat.
Corn.
I
Oats.
Barley.
Rye,
bbls.1961bs bush.60 lbs bush.56 lbs.lbush. 32 lbs.bush.48Ibs.bush.561bs.
210,001
75,000
376,000 1,166,000'
12,000
190,000
116.000 172,000
150,0001
1,440,000
46,000
77,000
2,0001
9,000
769,000
10,000
9,000 106,000
220,000
76,000
7,000
12,000
16.000
15,0021
189,000
22,000
2,005
16,000
18,000
184,000
497,000
57,000
567,000
562,0001
47,000
139,000
484,000
2,000
98,111
168,000,
48,000
149,000
101,000 112,000
813,000
895,000,
176,111
108,000
540,000
870,000
30,000
371,000;
30,000
124,000
56,000,
4,000
28,000
12,000
26,000
Total wk.1931
Same wk. 1930
Same wk.1929
389,000
392,000
389,000
5,407,000
2,594,000
5,347,000
4,670,000 1,641,000
4,353,000 2,019,000
5.030,000, 1,829,000
530,000
600,000
713,000
189,000
102,000
249,000
Since Aug.11
14 700 000334 111 000148 395 000 85 081 00040 011 000 17 106 000
1930
...,-.
16.
,965,000!403:249.
,000;218,708,.000188;096:00082.
,008
1928
'
,000 22;350:000
Total receipts of flour and grain at the seaboard ports for
the week ending Saturday, Mar. 28 1931 follow:
Receipts atNew York..
Portland, Me_
Philadelphia_
Baltimore.--Norfolk
New Orleans s
GalvestonSt. John, N.B
Boston
Flour.
Wheat.
Corn,
Oats.
Barley.
Rye.
bls.19615s.bush.60 lbs. bush.56 lbs. bush. 32 lbs ush.481bs bush.561bs.
302,000
205.0001
42,00
24,III
41,0
11,000
167,000
13.0001
14,000
10,III
31,0001
171,000
17,000
17,00
15,000
81,0
1,000
6,000
42.000
18.000
63,000
36,000
3,00(
519,000
53,00
19,000 309,000
24,000
18,000
4,000
2,000
1,000
400,000 1,242,00
Total wk.1931
Since Jan 1 '31 5,197,000 21,425,00
83,000
1,031,000
108,000
1,153,000
433,000
982,000
13,000
140,000
Week 1930. 588,000 1,398,000
Since Jan 1 '30 6,208,000 17,539,000
85,000
1,168,000
56,000
1,044,000
11,000
222,000
13,000
93,000
* Receipts do not include grain passing through New Orleans for foreign ports
`-t. through bills of lading.
2527
FINANCIAL CHRONICLE
4 1931.]
The exports from the several seaboard ports for the week
ending Saturday, Mar. 28 1931, are shown in the annexed
statement:
Exportsfrom-
Wheat.
Corn.
Oats.
Flour.
Rye.
Barley.
Bushels. Bushels. Barrels. Bushels. Bushels. Bushels.
679,000
19,000
55,688
167,000
13,000
23,000
163,000
432,000
9,000
75,000
6,000
40,000
1,000
100,000
1,000
23,000
12,000
5,000
519,000
53,000
19,000
309,000
24,000
1,000
New York
Portland, Me
Boston
Philadelphia
Baltimore
Norfolk
Mobile
New Orleans
Galveston
St. John, N.B
Houston
Total week 1931- 2,124,000
Rama, wcz•Ak 1030
2.270.000
7,000
6.000
183,688
397.186
31,000
2.000
403.000
58.000
The destination of these exports for the week and since
July 1 1930 is as below:
Flour.
Exports for Week
Since
Week
and Sines
Mar.28 July 1
July 1 to-1930.
1931.
Barrels.
United Kingdom_ 102,517
56,656
Continent
So.& Cent. Amer_ 12,000
West Indies
9,000
Brit. No.Am.Col.
-_-Other countries-- 3,515
Total 1931
Total 1930
Corn.
Wheat.
Week
Mar. 28
1931.
Week
Mar. 28
1931.
Since
July 1
1930.
Since
July 1
1930.
Bushels. Bushels. Bushels.
Barrels.
Bushels.
90,000
699,000 37,340,000
3,048,994
102,000
6,000
3,523,184 1,388,000 102,591,000
3,000
3,000 1,695,000
1,047,185
4,000
74,000
1,000
60,000
940,550
2,000
16,900
30,000 2,916,000
350,209
183,688 8,927,022 2,124,000 144,617,000
397.186 7,808,588 2,270,000 108.503.000
7,000
6.000
255,000
337,000
The visible supply of grain, comprising the stocks in
granary at principal points of accumulation at lake and
seaboard ports Saturday, Mar. 28, were as follows:
United StatesNew York
Boston
Philadelphia
Baltimore
Newport News
New Orleans
Galveston
Fort Worth
Buffalo
" afloat
Toledo
" afloat
Detroit
Chicago
"
afloat
Milwaukee
" afloat
Duluth
"
afloat
Minneapolis
Sioux City
St. Louts
Kansas City
Wichita
Hutchinson
St. Joseph, Mo
Peoria
Indianapolis
Omaha
GRAIN STOCKS.
Barley,
Oats,
Corn,
Rye.
Wheat,
bush.
bush.
bush.
bush.
bush,
20,000
7,000
7,000
51,000
1,343,000
2,000
1,000
4,000
4,000
53,000
58,000
166,000
77,000
2,000
41,000
30,000
5,437,000
377,000
123,000
4,569,000
79,000
30,000
4,610,000
138,000
6,000
6,526,000
220,000
251,000
293,000
550,000
858,000
9,840,000
697,000
172,000
2,068,000
3,000
2,000
3,489,000
19,000
195,000
162,000
441,000
37,000
43,000
14,000
22,000
215,000
821,000
2,796
2,993
23,279
4,597
792,000
1,313
568,000
1,883
3,007,000
227.000
438,000
2,680,000 1,858,000 3,632,000
258,000
759,000
36,176,000 1,709,000 3,792,000 3,466,000
1,485,000
324,000 2,405,000 3,839,000 3,789.000
36,750,000
17,000
499,000
1,000
739,000
304,000
61,000
860,000
23,000
6,713,000
244,000
144,000
24,996,000 1,396,000
145,000
11,000
247,000
1,894,000
54,000
6,529,000
5,008,000 1,990,000
223,000
22,000
346,000
68,000
948,000 2,030,000
117,000
66,000
12,904,000 3,162,000
17,000
186,000
Total Mar. 28 1931-202,497,000 20,498,000 17,751,000 12,415,000 7,821,000
Total Mar. 21 1931
201,733,000 20,695,000 18,721,000 12,667,000 8,178,000
Total Mar. 29 1930
149,307,000 23,533,000 18,340,000 14,069,000 7,804,000
Note.-Bonded grain not included above: Oats-New York, 17,000 bushels:
total, 17.000 bushels, against 489,000 bushels in 1930. Barley-New York, 8,000
bushels; Boston, 21,000; Buffalo, 468,000: Buffalo afloat, 245,000: Duluth, 51,000:
total, 794,000 bushels, against 2,780.000 bushels in 1930. Wheat-New York,
720.000 bushels; Boston, 214.000; Philadelphia, 214,000: Baltimore, 514,000:
Buffalo. 3,109,000; Buffalo afloat,6,455,000; Duluth,26,000 Toledo afloat. 582.000:
total, 11,834,000 bushels, against 23,366,000 bushels in 1930.
Canadian996,000
483,000 1,227,000
Montreal
4,380,000
3,728,000 7,888,000 14.109,000
Ft. William & Pt. Arthur 50,252,000
252,000
642,000
afloat
283,000
1,173,000 1,283,000 4,893,000
Other Canadian
10,074,000
5,384,000
Total Mar. 28 1931-- 64,989,000
5,439,000
Total Mar. 21 1931
65,087,000
75,266,000
6,814,000
Total Mar. 29 1930
Summary202,497,000 20,498,000 17,751,000
American
5,384,000
64,989,000
Canadian
10,650,000 20,610,000
10,601,000 19,907,000
6,187,000 15,733,000
12,415,000 7,821,000
10,650,000 20,610,000
Total Mar. 28 1931-267,486,000 20,498,000 23,135,000 23,065,000 27,431,000
266,820,000 20,695,000 24,160,000 23,268,000 28,085,000
Total Mar. 21 1931
Total Mar. 29 1930
274,573,000 23,533,000 25,154,000 20,256,000 23,537,000
The world's shipment of wheat and corn, as furnished by
Broomhall to the New York Produce Exchange,for the week
ending Friday, Mar. 27, and since July 1 1930 and 1929,
are shown in the following:
Wheat.
Exports-
Week
Mar. 27
1931.
Since
July 1
1930.
Corn.
Since
July 1
1929.
Bushels. I Bushels.
Bushels.
North Amer. 4,436,000 276,114,000238,357,000
Black Sea_ -- 1,104,000 96,014,000 20,819,000
Argentina-- 3,800,000 64,827,000133,025,000
Australia _ - 5,096,000 81,496,000 48,333,000
9,008,000;
320,000
India
0th. countr's
496,00 33,072,000 33,332,000
-Total
14,932,000560,531,000 474,186,0001
Week
Mar. 27
1931.
Since
July 1
1930.
Since
July 1
1929.
Bushels.
Bushels. I Bushels.
26,00
1,326,000 2,897,000
340,011 27,888,000 17,995,000
3,846,000177,913,000.141,747,000
451,000 36,189,0001, 24,213,000
4,883,000243,316,000 186,852,000
2528
FINANCIAL CHRONICLE
Foreign Trade of New York-Monthly Statement.
Merchandise Movement at New York.
Month.
Imports.
1930.
July
August
September
October.
November
December_
1929.
99.990,234 166,191,360
99.085.287 168,711,634
100,496,855176.246,
124.376.843208,743,389
102.937,471 172,556,543
99.742.695 157.091.612
Exports.
1930.
1929.
98,089,398 68,829.725
97.722,024 143.450,060
92,325,970 149,465,106
95,822,991 155,150,632
94,543,804 136,372,069
95.875.509 133.176.017
Customs Receipts
at
New York.
1930.
15.617,549
16,700.854
20,672.440
22.811,155.
19,861,973
15.596.668
1929.
29,419,142
30,684.237
31,741,943
35,436,544
26,103,378
21.949,891
1930.
1931. I 1930.
1931.
1931.
1930.
January __ 87,278,8071152,812,382 94,604,323 158,679,252 15,764,232 24,678,913
Total.-- 713,907,9921202352960668,964,019 1045122861 127,024,871 200.013,848
Movement of gold and silver for the seven months:
Sitver-New York.
Gold Movement at New York.
Month.
Imports.
1930.
1929.
.71219
August_ -September
October- _
November
December_
13.156.577
4,592.811
5,264.013
17,825.288
21,480,117
11.317.784
January --
1931.
9,404,455
Exports.
1930.
1929.
773.959
30.949.736 30.001.977
14,178,797 35,314,272
708.269
14,920,507 3,974.842
780.940
10,613.977
30.000 3,730,667
2,950,395
1,200 30,191,332
72.269,793
3.562.520
1930.
7,201,382
1931.
1930.
8,874,560
Total-- 83.041,045 84,377,3141 69,322,291117,357,520
Imports.
1930.
Exports.
1930.
1.605,074
1.203,352
907,631
1,247,269
887,427
935.430
2,862,830
2,881.153
2,303,494
2.635,268
2,944,421
2.772.983
1931.
1,034,43
1931.
2,930,317
7,820,619 167,330,466
National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
ORGANIZE RECEIVED WITH TITLE
REQUESTED.
Capital.
$25,000
Mar.24-The Benton County National Bank of Camden, Tenn_
Correspondent, A. S. Justice, Camden, Tenn.
VOLUNTARY LIQUIDATIONS.
$50,000
Mar. 23-The First National Bank of Vernon, Ind
Effective Feb. 16 1931. Liquidating Agent, E. P.
Trapp, Vernon, Ind. Absorbed by the North
Vernon National Bank, North Vernon, had., No.
9122.
500,000
Mar. 23-Dallas National Bank, Dallas, Texas
Effective Feb. 10 1931. Liquidating Agent, J. D.
Gillespie, Dallas, Texas. Absorbed by Dallas Bank
& Trust Co., Dallas, Texas.
25.000
Mar. 23-The First National Bank of New Hobbs, New Mexico..
Effective Mar. 14 1931. Liquidating Agent, J. R.
Martin, Midland, Texas. Absorbed by Hobbs
State Bank & Holes, New Mexico.
Mar.24-The Citizens National Bank of Waxahachie, Texas_- 200,000
Effective Mar.16 1931. Liquidating Committee:T. O.
Cheatham, R. W.Getzendaner, J. N.Langsford and
J. T. Andrews,all of Waxahachie, Texas. Succeeded
by Citizens National Bank in Waxahachie, Texas,
No. 13516.
50,000
Mar. 24-The Broadway National Bank of Scottdale, Pa
Effective March 18 1931. Liquidating Committee:
John F. Eicher, V. P. Pisula and W. W. Seaman,
care of the liquidating bank. Absorbed by the
First National Bank of Scottdale, Pa., No. 4098.
50.000
Mar. 25-The Gary National Bank, Gary, W. Va
Effective Mar. 14 1931. Liquidating Agents: Dr.
R.V.Shanklln and A. N. Harris,care of the liquidating bank. Succeeded by Gary National Bank,Gary,
W. Va., No. 13505.
500,000
Mar. 25-The Metropolitan Nat'l Bank of Minneapolis, Minn
Effective Mar. 20 1931. Liquidating Committee: Geo.
B. Norris, John W. Barton and John Burgess, care
of the liquidating bank. Absorbed by the North
Western National Bank of Minneapolis, Minn.,
No. 2006.
25,000
Mar. 27-The Security National Bank of Collinsville, Texas
Effective Mar. 23 1931. Liquidating Agent, Joe B.
Cobler, Whiteeboro. Texas. Absorbed by the
Whitesboro National Bank, Whitesboro. Texas,
No. 10634.
75,000
Mar. 28-The Austin National Bank, Austin, Minn
Effective Mar. 24 1931. Liquidating Agent, Park
Dougherty, Austin, Minn. Absorbed by the First
National Bank of Austin, Minn., No. 100.
CONSOLIDATION.
$500,000
Mar. 28-The Melrose National Bank of New York, N. Y
300.000
Morris
Bank, New York, N. Y
-The Port
Consolidated to-day under Act of Nov. 7 1918, as
amended Feb. 25 1927, under the charter of the
Melrose National Bank of New York, No. 12900.
and under the corporate title of "the National
Bronx Bank of New York," with capital stock of
$525,000.
Two branches of the Melrose National Bank of
New York, which were authorized since Feb. 25
1927, were reauthorized for the consolidated bank.
BRANCH AUTHORIZED UNDER ACT OF FEB. 25 1927.
Mar. 28-The National Bronx Bank of New York. N. Y.
Location of Branch: 393 West 138th St. at Willis
City.
Ave., Borough of the Bronx. New York'
APPLICATION
TO
Auction Sales.--Among other securities, the following
not actually dealt in at the Stock Exchange were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week:
By Adrian H. Muller & Son, New York:
$ per Sit. Shares. Stocks.
$ Per Sit.
Shares. Stocks.
(Del.), corn., no par; 30 Fox
1,661 Chase National Bank-.96%-96%
Holding Co. (Del.), Par 810;
250 Harley Realty Corp.,com.$15,000 lot
200 Congo!. Nevada-Utah Corp.
$100 Consol. Nevada-Utah Corp.
(Va.). par $3; 5,000 Colonial
cony. 65. ser. B, July 1 1919;
Marble Co. (Wash.), par $1;
25 United Motors Co. (Del.),
1,300 Cactus Nursery & Model
prof.,Par $10;10UnitedMotorsCo.
Farm Co. (Ariz.), par $1; 300
(Del.), Par $10; 750 Sterling Tire
Bullet Proof & Non-Shatterable
Corp. (Del.), corn., par $10:
Glass Corp., par $10;500 Inspire25 Southwest Metals Co., no Per;
tion Needles Copper Co. (Ariz.),
4.000 Mammoth PorcuPille Mines
par il
$51 lot
Ltd. (Ontario), par $1; 1,000 La
4,000 Robb-Montbray Mines, Ltd.,
Rose Mines, Ltd. (Ontario). Par
(Ontario), par il
$68 lot
51; 15 Fox Motor Car Co.(Del.),
pref.; 714 Fox Motor Car Co.
By A. J. Wright & Co., Buffalo:
$ per Sh.
Shares. Stocks.
$ per Sit. Shares. Stocks.
73 Youngst'n Cold Storage Co.,Inc.;
1,000 Baldwin Gold Mines, par $1_ 2c.
100 Boston & Montana Devel. Co.,
1,000 Goidale Mines, Ltd., par $1_ 31sc.
(temp. BOUM etf.), Per $5-- _500. lot
[VOL. 132.
By Wise, Hobbs & Arnold, Boston:
Shares. Stocks.
$ Per Sh.
5 Medford (Maas.) Trust Co.,
par $20
65
10 Associated Textiles Cos
35
8 Associated Textile Cos
35
1 Associated Textile Cos
3634
32 R.I. Pub. Serv. Co., pref
29
10 units First Peoples Trust
20
12 Keyes Fibre Co., Inc., class A
1314
50 Mass. Bdg. & Ins. Co., par$25_ 8034
2,000 Old Colony Investment Trust 9
101 Springfield Gas Light Co.
(undeposited), par $25
4934
Shares, Stocks.
$ per Sit,
14 units First Peoples Trust
20
2 Columbian National Life Ins. Co_310
9 First National Stores, lot pref
10634
60 New Eng. Fire Ins. Co., par $10_ 23
1,000 Doughty Tire Co.. par $l0$10 lot
5 Alexander Hamilton In*. Corp,
class A
5
10 American Glue Co., common
38
Bonds.
Per Cent.
$500 Kansas City Memphis & Birm.
gen. mtge.45, May 1934
9734
By R. L. Day & Co., Bostop:
Shares. Stocks.
$ per Sit.
5 Associated Textile Cos
35
36 Ludlow Mfg. Associates_10534-10634
5 Associated Textile Cos
35
5 Associated Textile Cos
35
Inc
1
28 1Vest Point Mfg. Co
8234
5 Associated Textile Cos
35
5 Associated Textile Cos
3634
2John Russell Cutlery Co., com.A.$4 lot
Shares. Stocks.
$ Per Sit.
150 Mass. Bdg & Ins. Co., par $25 8034
9 special units First Peoples Trust_ 3
24-83 Lawrence 0.& El. Co
210. lot
7 City Central Corp., pref.; 5 Federal Inv. Trust,8% pref
$20 lot
10 New Eng. Pow. Co., pref
11334
60 Boston Woven Hose & Rubber
Co., common
5834
4 New England Pow. Co., pref
113%
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
$ per Sit.
75 Nat. Bank of Olney, par $10
1234
35 Corn Exchange National Bank
& Trust Co., par $20
9734
10 Commercial National Bank &
18
Trust Co., par 310
11 Mitten Men & Management
62
Bank & Trust Co., par $50
5 Northwestern National Bank &
Trust Co., par$10..100
50 Continental-Equitable Title &
23
Trust Co., par $5
11534
30 Phila. Nat. Bank, par $20
7 1-7 Bankers Tr. Co., par 850-525 lot
Shares. Stocks.
$ per Sh.
40 Pennsylvania Co. for Ins. on
Lives, &c., par $10
8234
100 Real Estate-Land Title &
Trust Co., par $10
3234
50 Sterling Stores Co., pref.; 50
common
$50 lot
100 Fire Assn. of Philadelphia
2334
50 Pennsylvania Sugar Co
29
10 North Penna. RR., par $50
9034
BondsPer Cent.
$10,000 Nor. Amer. Bldg. Corp.
6% notes, Dec. 1 1930
$225 lot
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yes been paid.
The dividends announced this week are:
Name of Company.
Railroads (Steam).
Pittsburgh az West Va. Ry. corn. (guar.)
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
1% Apr. 30 Holders of rec. Apr. 15
Public Utilities.
Bangor Hydro-Elec. Co., corn. (quar.). *50c. May 1 *Holders of rec. Apr. 10
Broad River Power, pref. (quar.)
+.134 May 1 *Holders of rec. Mar.31
Buff. Niagara & East. Pow.,$5 pf.(qu.) *31.25 May 1 *Holders of rec. Apr. 15
Callfornia-Oregon Pow.,7% pref. (q11.)- 131 Apr. 15 Holders of rec. Mar. 31
6% Preferred (quar.)
1% Apr. 15 Holders of rec. Mar. 31
Carolina Tel. & Tel. (quar.)
*52.50 Apr. 1
Central States Edison, 7% pref. (quar.) *134 Apr. 1 *Holders of rec. Mar. 15
Charleston Interurban RR.. pref.(guar.) "1% Apr. 1 "Holders of rec. Mar. 31
Champ.& Potom. Telep., Bait., pf.(qu.) 1% Apr. 15 Holders of rec. Mar. 31
Chester & Philadelphia Ry., corn
'6214c Apr. 15 *Holders of rec. Apr. 8
City Ry.(Dayton), corn. (guar.)
'134 Mar. 31 *Holders of rec. Mar. 20
Preferred (quar,)
"134 Mar. 31 *Holders of rec. Mar.20
Commonwealth Telephone, pref. (qual.) *134 Apr. 15 *Holders it roe. Mar.31
Dakota Central, tom.(guar.)
'2
Apr. 1
*1% Apr. 1
Preferred (quar.)
Diamond State Telep., corn.(quar.).... *500. Mar.31 *Holders of rec. Mar. 31
Dixie Gulf Gas, pref. (guar.)
*51.75 Apr. 1 *Holders of rec. Mar. 28
Electric Power & Light1234e May 1 Holders of rec. Apr. ha
Allotment et's., full paid (guar.)
100. May 1 Holders of rec. Apr. lla
Allotment ctts- 80% paid (quar.)
*1% May 1 *Holders of rec. Apr. 11
Second preferred (Oust'.)
Electric Public Utilities, pref.-Dividend passed
El Paso Electric Co., pref. A (quer.)--- *134 Apr. 15 *Holders of rec. Apr. 1
Preferred B (quar.)
"134 Apr. 15 "Holders of rec. Apr. 1
Fall River Gas Works (quit'.)
750. May 1 Holders of rec. Apr. 16
Green & Coates Sta., Phila., Pass.(qu.)_ *51.50 Apr. 7 *Holders of rec. Mar. 23
1% May 15 Holders of rec. Apr. 18
Havana Elec. & Util., 1st pref.(quar.)
$1.25 May 15 Holders of rec. Apr. 18
Cum. preferred(quar.)
Apr. 2 *Holders of roe Mar. 27
*3
Holyoke Water Power (quar.)
Home Tel. & Tel. (Ft. Wayne)*8714e Mar. 31 *Holders of rec. Mar. 23
7% preferred (quar.)
*350. Mar. 31 *Holders of rec. Mar. 23
Honolulu Rapid Transit (quar.)
Illinois Comml Telco., $6 pref. (guar.). "$1.50 Apr. 15 *Holders of rec. Afar. 31
May 1 *Holders of rec. Apr. 15
Illinois Northern Utilities, corn.(qual.). *2
Junior preferred (guar.)
411.75 May 1 *Holders of rec. Apr. 15
4,134 May 1 *Holders of rec. Apr. 15
6% preferred (guar.)
Kansas Power & Light, 7% pref.(quar.) *1% Apr. 1 *Holders of rec. Mar. 20
*134 Apr. 1 "Holders of rec. mar. 20
6% preferred (gust'.)
Lexington Telep., 1334% prior pref.(qu.) *134 Apr. 15 *Holders of rec. Mar. 31
Louisville Gas & Elec. (Ky.) 7% Pf.(q11) *134 Apr. 15 *Holders of rec. Mar. 31
6% preferred (quar.)
*134 Apr. 15 *Holders of rec. Mar. 31
*81.25 Apr. 15 *Holders of rec. Mar. 31
5% preferred (quar.)
'65c. May 1 *Holders of rec. Apr. 15
Lowell Elec. Light (quer.)
*500. Apr. 15 *Holders of rec. Mar. 31
Maine Gas Cos., corn. (quar.)
"51.50 Apr. 15 *Holders of rec. Mar.31
Preferred (quar.)
Marconi Int. Marine Communications
Amer. dep. rets. for ord. reg. shares *w10 Apr. 2 *Holders of rec. Mar. 17
"Thic Apr. 1 *Holders of rec. Mar. 26
Metropolitan Gas & Elec., corn
Mexican Light & Power,7% preference_ 334 May 1 Holders of rec. Apr. 17
100. May 1 Holders of rec. Apr. 17
4% second pref. (Par $5)
Missouri Public Service,$7 pref.(guar.). *$1.75 Apr. 1 *Holders of rec. Mar. 15
411.50 Apr. 15 *Holders of rec. Max. 31
$6 preferred (quar.)
Montana Power, pref. (quar.)
"1.34 May 1 *Holders of rec. Apr. 13
*234 Apr. 15 *Holders of rec. Apr. 7
Montreal Tramway (guar.)
'8c. Apr. 30 *Holders of rec. Apr. 18
Mutual Telep.(Hawaii)(monthly)
"75c. Apr. 15 *Holders of rec. Mar. 26
New Bedford Gas& Edison Light(MO
Northwestern Electric, 7% pref. (qu.)-. *134 Apr. 1 *Holders of rec. Mar. 18
*154 Apr. 1 *Holders of rec. Mar. 18
Original preferred (quar.)
Ohio River Ry. de Power, pref.(quar.).. *$1.75 Apr. 1 *Holders of rec. Mar. 20
Old Colony Light & Power Assn.. corn... "70c. Apr. 1 "Holders of rec. Mar. 19
"1.34 Apr. 1 *Holders of rec. Mar. 19
Preferred (guar.)
Orange k Rockland Elec., pref.(quar.)- _ *2
May 1 "Holders of rec. Apr. 25
*750. Apr. 10 *Holders of rec. Mar.27
Phila. & Camden Ferry (quar.)
*$1.25 Apr. 10 "Holders of rec. Mar. 31
Piedmont & Northern Ry.(quar.)
Pub. Serv. of No.Ills., com.$100 par(qu) "2
May 1 "Holders of rec. Apr. 15
Common (no par) (guar.)
"i2
may 1 *Holders of rec. Apr. 15
7% preferred (quar.)
•134 May 1 *Holders of rec. Apr. 15
6% preferred (quar.)
*134 May 1 *Holders of rec. Apr. 15
Randolph & Holbrook Power (quar.)_ _ _ '5634c Mar. 31 *Holders of rec. Mar. 19
San Antonio Public Sag.,8% Pf.(guar.) *2
Mar. 31 *Holders of rec. Mar. 20
"134 Mar. 31 *Holders of rec. Mar. 20
7% preferred (guar.)
Southern N. E. Telep. (quit'.)
"2
Apr. 15 *Holders of rec. Mar. 31
Springfield City Water, pref. A (quar.) *$1.75 July 1 *Holders of rec. June 20
Preferred A (quar.)
41.75 Oct. 1 *Holders of rec. Sept. 20
Stamford Gas & Elec. (quar.)
"$2.50 Apr. 15 *Holders of rec. Mar. 31
Suburban Elec. Securities, lit pref.(qu.) "134 May 1 *Holders of rec. Apr. 15
Tampa Electric Co., corn. (guar.)
*50c. May 15 *Holders of rec. Apr. 25
Preferred A (quar.)
•14/ May 15 "Holders of rec. Apr. 25
Toledo Edison Co., 7% pre/.(monthly). 58 1-3c May 1 Holders of rec. Apr. 150
6% preferred (monthly)
50c. May 1 Holders of rec. Apr. 15a
5% preferred (monthly)
41 2-3e May 1 Holders of rec. Apr. 15a
Tri-State Tel. & Tel., corn.(quan)
"$1.50 Apr. 1 *Holders of rec. Mar. 16
APRIL 4 1931.]
Name of Company.
Public Utilities (Concluded).
United Gas Corp..$7 2d pref.(quar.)_ _ _
Vermont Lighting, pref.(guar.)
Weymouth Water Power, pref.(guar.) _
Wisconsin Gas & Elec.,6% pref.(qu.)
Wisconsin Telephone, pref. (guar.)
Worcester Suburban Elec. Cos
Pet
When
Cent. Payable.
Books Closed.
Days Inclusive.
*51.75 Apr. 1 *Holders of rec. Mar. 28
*1% Apr. 1 *Holders of rec. Mar. 20
*1% Mar. 31 *Holders of rec. Mar. 19
Apr. 15 *Holders of rec. Mar. 31
*1% Apr. 30 *Holders of rec. Apr. 20
*SI
Apr. 10 *Holders of rec. Mar. 19
Banks.
Bryant Park-Dividend omitted.
Trust Companies.
Bank of Sicily Trust (guar.)
Corn Exch. Bank & Trust Co.(guar.).
Fire Insurance.
Lincoln Fire(N. V.)(Oust)
*15e. Apr. 10 *Holders of rec. Mar. 31
$1
May 1 Holders of ree. Apr. 23
*60c. Apr. 15 *Holders of rec. Apr. 6
Miscellaneous.
Adams-Millis Corp., common (guar.)._ _ *50c. May 1 *Holders of rec. Apr. 18
First and second preferred (guar.)-- *1% May 1 *Holders of rec. Apr. 18
Alabama Fuel dr Iron (Oust.)
134 Apr. 1 Holders of rec. Mar. 21
Alliance Realty Co., common (quar.)__ _
750. Apr. 24 Holders of rec. Apr. 14
Allied Chem.& Dye Corp., corn.(qu.)
51.50 May 1 Holders of rec. Apr. 7
Allied Telephone Utilities, pref.(guar.)_ *43%c Apr. 1 *Holders of rec. Mar. 20
Alms & Doepke. Preferred (llilar.)
*1ft Apr. 1 *Holders of rec. Mar. 15
Aluminum Manufactures, Inc.. pf.(gu.)- *131 June 30 *Holders of rec. June 15
*1% Sept.30 *Holders of rec. Sept. 15
Preferred (guar.)
'1 31 Dec. 31 *Holders of rec. Dec. 15
Preferred (guar.)
Amalgamated Electric Corp., pref.-Div idend omitted
American Can, common (guar.)
Si
May 15 Holders of rec. Apr. 30a
Amer. Glantztorff Corp., pref. (gust.).... *131 Apr. 1 *Holders of rec. Mar. 28
Amer. Hair & Felt, let & 2d pref.(guar.) *2
Apr. 1 *Holders of rec. Mar. 20
Amer.Indemnity (Phila.), pref.(guar.)- *4331c Mar. 31
Amer. Machine & Foundry,corn.(guar.)
35e May 1 Holders of rec. Apr. 17
American Share., class A
*60c Apr. 1 *Holders of rec. Mar. 28
American Wringer (guar.)
•3734c Apr. 1 *Holders of rec. Mar. 27
Archer-Daniels-Midland Co., com.-Div Idend omitted
si
May 1 *Holders of rec. Apr. 20
Preferred (guar.)
Atlas Powder, pref. (guar.)
1% May 2 Holders of rec. Apr. 20a
Balaban & Katz Corp., corn.(guar.)
_ *75e. June 27 *Holden; of rec. June 15
Preferred (guar.)
•131 June 27 *Holders of rec. June 15
Bence Commerciale Italians (Milan)$3.14 Apr. 16 Holders of rec. Apr. 9
American shares
Ilansicilla Corp., class A dt B (guar.).- *7Y4c Apr. 10 *Holders of rec. Mar. 31
Barber(W.H.) Co., pref.(guar.)
*131 Apr. 1 *Holders of rec. Mar. 10
Barnsdall Corp.,common A &B (guar.)_ *25c May 11 *Holders of rec. Apr. 14
Beatty Bros., Ltd. pref.(guar.)
1% May 1 Holders of rec. Apr. 15
Belding Corticelli,
'
Ltd. (guar.)
131 May 1 Holders of rec. Apr. 15
Bellefield Co., pref. (guar.)
*131 Apr. 1 *Holders of rec. Mar. 26
British Amer. Tobacco Ltd.
•19c. Apr. 6
Amer. dep. rcts. for ord. bearer
*19c. Apr. 6 *Holders of rec. Mar. 3
Amer. dep. rcts. for ord. reg
4.9c Apr. 6
Amer. dep. rcts. for pref. bearer
Amer dep. rcts. for pref.reg
*90. Apr. 6 *Holders of rec. Mar. 3
°131 Apr. 1 *Holders of rec. Mar. 24
Browning Crane Co., pref. (guar.)
Apr. 1 *Holders of rec. mar. 25
*2
Calhoun Mills (guar.)
.87%e July 1 *Holders of rec. June 15
Cal. Ital. Corp ,7% pref.(No. 1)
624c May 1 Holders of rec. Apr. 20
Canadian Bronze, Ltd., corn.(quar.)
181 May 1 Holders of roe. Apr. 20
Preferred (guar.)
Cartier, Inc., pref. (guar.)
*$1.75 Apr. 30 *Holders of rec. Apr. 15
Central West Casualty (Detroit)-Divid end ac tlon clef erred.
Chain Store Real Estate Trust (quar.)
'131 Apr. 5 *Holders of rec. Apr. 1
Chanslor & Lyons Stores, class A (guar.)'3731c Apr. 1 *Holders of rec. Mar. 20
Chapman Valve Mfg.(qaur.)
*50e. Apr. 1 *Holders of rec. Mar. 25
Cherry-Burrell Corp., common (oust.).... *3731c May 1 *Holders of rec. Apr. 15
•13.i May 1 *Holders of rec. Apr. 15
Preferred (guar.)
Cincinnati Milling Mach., pref.(guar.). *114 Apr. 15 *Holders of rec. Mar. 31
Chic. Postal Term.& Realty, pref.(qu.) *I% Apr. 15 *Holders of rec. Apr. 6
Comml Disct.(Los Ang.). 8% Pt (on.) *20e Apr, 10 *Holders of roe. Apr. 1
7% preferred (guar.)
*1714c Apr. 10 *Holders of rec. Apr. 1
Community State Corp.,class A (guar.)_ *1214c Mar. 31 *Holders of rec. Mar.30
Class B-Dividend omitted.
Consol. Ice (Pittsburgh). pref.(Oust.).... *75e. Apr. 20 *Holders of rec. Apr. 10
Continental Sec. Corp.(guar.)(No. 1)
*50c. Apr. 15 *Holders of rec. Apr. 1
Coon (W. B.) Co., common (quar.)
*40c. May 1 *Holders of rec. Apr. 14
Common (payable in common stock)_.. *11
May 1 *Holders of rec. Apr. 14
7% preferred (guar.)
•131 May 1 *Holders of rec. Apr. 14
Corn Products Refining, corn. (quar.)
75e. Apr. 20 Holders of rec. Apr. 6a
131 Apr. 15 Holders of rec. Apr. 6a
Preferred (guar.)
s75e. May 1 *Holders of roe. Apr. 10
Corporation Secur. (Chicago), prof
Crescent Financial Corp., pref.-Divide nd Das sod.
*6231c May 1 *Holders of rec. Apr. 15
Cuneo Press, common (guar.)
4,184 June 15 *Holders of rec. June 1
Preferred (guar.)
Deep Rock Oil Corp., Pref.-Dividend p eased.
Deposited Bank Shares, Series, N.Y___ _ *50c Apr. 1
Deposited Bank Shares, Series N.Y. A__ '1231e Apr. 1
Deutsche Bank & Disconto Gesellachaft
Apr. 25 *Holders of rec. Apr. 20
American dep. recta, for bearer shares_ *reli
Dictograph Products, corn -Dividend p assed.
*50e. Apr. 1 *Holders of rec. Mar. 27
District Bond Co.,corn.(guar.)
*37%c Apr. 1 *Holders of rec. Mar. 27
Preferred (guar.)
•$5.10 Apr. 27 *Holders of rec. Apr. 20
Dresdner Bank (Berlin) Amer. abs.
*181 Apr. 1 *Holders of rec. Mar. 25
Dunean Mills, prof.(guar.)
•750. Apr. 1 *Holders of rec. Mar. 27
Eagle Lock,cone.(guar.)
25e. Apr. 15 Holders of rec. Apr. 1
Economy Grocery Storer (guar.)
*124c Apr. 20 *Holders of rec. Mar. 31
Edison Bros. Stores, corn.(guar.)
*50c. Apr. 25 *Holders of rec. Apr. 11
Electric Household Utilities(guar.)
Equitable Bldg.(Denver) pref.(oust.)-.. •$1.75 Apr. 1 *Holders of rec Mar. 16
May 1 Holders of rec. Apr. 15
Eureka Pipe Line(guar.)
$1
.$1 Apr. 1 *Holders of rec. Mar. 20
Fafnir Bearing (guar.)
111.50 May 1 *Holders of rec. Apr. 15
Federal Electric, $6 pref. guar.)
*31.75 May 1 *Holders of rec. Apr. 15
$7 preferred (guar.)
*31.25 May 1 *Holders of rec. Apr. 20
Federal Title & Mtge. Guar.(N.J.)
•181 Apr. 15 *Holders of rec. Apr. 10
Felin (J. J.)& Co., pref.(guar.)
*50c. Apr. 1 *Holders of rec. Mar. 27
Fibreloid Corp., corn
'131 Apr. 1 *Holders of rec. Mar. 27
Preferred (guar.)
*1 34 Apr. 1
Fifty Associates, Toledo, pref
First Nat.Corp.,PortI.Ore.,e1.A&B (qu.) *50c. Apr. 15 *Holders of rec. Mar. 25
Fischman (I.) & SODS.$7 pref.(guar.).- *31.75 Apr. 15 *Holders of rec. Apr. 1
*Holders of rec. Apr. 1
*87%e.
Fruehauf Trailer, pref.(guar.)
*87%c Apr. 1 *Holders of rec. Mar. 20
Gamble-Robinson Co., pref. ((max.)
250. Subj. to stockholders meet'g Apr.7
Gardner Motor, corn
General Alloys, pref.-Dividend omitted
*75c May 1 *Holders of rec. Apr. 15
General Mills, tom.(guar.)
•500. May 1 *Holders of rec. Apr. 15
General Stockyards, corn. (guar.)
*25e. May 1 *Holders of rec. Apr. 15
Common (extra)
41.50 May 1 *Holders of rec. Apr. 15
$6 preferred (guar.)
40c. Apr. 15 Holders of rec. Apr. 4
Georgian, Inc., pref. A (guar.)
*30e. Apr. 30 *Holders of roe. Apr. 15
Gilmore 011 (guar.)
•1% June 1
Globe-Democrat, pref
75c. May 1 Holders of rec. Apr. 9
Goodyear T.& R.,corn.(guar.)
1% July 1 Holders of rec. June 1
First preferred (guar.)
25e. Apr. 23 Holders of rec. Apr. 14
Grand(F.& W.)-Silver Stores,com.(qu.)
Grand(F.&W.)5-10-25Ct.Sts. corn.(qu.)
25e. Apr, 20 Holders of rec. Apr. 14
1% May 1 Holders of rec. Apr. 14
Preferred (guar.)
*lc. Apr. 1 *Holders of me. Mar. 27
Granite Gold Mining
Grier (8. M.)Stores, prof -Dividend pa ssed.
Ouggenheimer & Co., let pref.(guar.). _ *1% May 15 *Holders of rec. Apr. 29
Hall(W.F.) Printing, corn.(guar.)
•50e. Apr. 30 *Holders of rec. Apr. 20
Haughton Elev.& Mach., pref. (guar.)- *1% Apr. 1 *Holders of rec. Mar, 20
*5.3. Apr. 22 *Holders of rec. Apr. 8
Hollinger Cons. Gold Mines
Hotel Gibson corn.-Dividend omitted.
*134 Apr. 1 *Holders of rec. Mar. 25
Preferred (guar.)
Illinois Pacific Coast Co., pref.(guar.)._ *75c. May 1 *Holders of rec. Apr. 20
*25e. Apr. 15 *Holders of rec. Mar. 23
Incorporated Investment (guar.)
*e21§
Holders of rec. Apr. 15
Stock dividend
Industrial Company,corn.-Dividend pa ssed.
Internat. Cigar Mach'y corn.(quar.)____ 62IIc. May 1 Holders of rec. Apr. 17
International Invest. Corp.,claw A (qu.) *500. Apr. 1 *Holders of rec. Mar. 25
Internat. Paints(Canada) Ltd., pt.(qtr.) 174 Apr. 15 Holders of rec Mar 31
*75c Apr 1 *Holders of rec. Mar. 14
Interocean Security Corp , prof
2529
FINANCIAL CHRONICLE
Name of COMPanil.
Per
When
Cad. Payable.
Books Closed.
Days Inclusive.
Miscellaneous(Concluded)
Interstate Equities, pref. A (guar.)
*75c. May 1 *Holders of rec. Apr. 18
Interstate Royalties Corp., pf.(mthly.).'62-3c Apr. 1 *Holders of rec. Mar. 25
Italian Investing Corp., class A-Div. pa seed.
Jantzen Knitting Mills, corn.(gust.)..-- *37tic May 1 *Holders of rec. Apr. 15
Preferred (guar.)
*$1.75 June 1 *Holders of rec. May 25
Apr. 24 *Holders of rec. Apr. 21
Jersey Mtge.& Title Guar
*Si
Apr. 1 *Holders of rec. Mar. 27
Johnson Ir.Wks.Dry Dk&Sh'b'g pl.(qu) *2
Jones Bras. of Canada (guar.)
*30c. Apr. 1 *Holders of rec. Mar. 25
K.C. Struct'l Steel, corn.& pret.-Divid ends p eased.
1 *Holders of rec. Mar. 15
Kent Garage Invest.,el. A (guar.)
*50c.
*1% Apr. 1 *Holders of rec. Mar. 15
Preferred (guar.)
Keuffel & E'ssPr Co., 1st pref
*53 Apr. 1 *Holders of rec. Apr. 1
Kress (S. H.) Co.,corn.(guar.)
*25c May 1 *Holders of rec..Apr. 10
Corn.(payable in special pref.stock)_ _ *J50c. May I *Holders of rec. Apr. 10
Special preferred (guar.)
*16c. May 1 *Holders of rec. Apr. 10
Kroehler Mfg.,cont.(guar.)
*25e. Apr. 1 *Holders of rec. Mar. 25
Preferred (guar.)
'134 Apr. 1 *Holders of rec. Mar. 25
Lefcourt Realty Corp., corn.(guar.)._ -- *40c. May 15 *Holders of rec. May 5
*75c. Apr. 15 *Holders of rec. Apr. 6
Preferred (guar.)
Ludlow Typograph, corn.& pref.-Divid ends 13 eased.
*1
May 15 *Holders of rm. May 5
Lynch Corp. (guar.)
*15e. Apr. 1 *Holders of rec. Mar. 25
May Oil Burner Corp.(guar.)
'134 Apr. 15 *Holders of rec. Mar. 31
Mexican Utilities, prof. (guar.)
Mid-Continent Petroleum Corp., corn.- Divide nd omit ed.
Minor, Inc., common-Dividend passed
*50c. Apr. 15 *Holders of rec. Mar. 31
Mohawk Investment (guar.)
.$1.75 May 1 *Holders of rec. Apr. 15
Mullins Mfg. Corp., pref. (guar.)
Mutual Investment Trust, class A certifs
31 Apr. 15 *Holders of rec. Mar. 31
National Supply, common (guar.)
$1 May 15 Holders of rec. May 5
N.Y.& Foreign Investing, pref.(guar.)_ '1 81 Apr. 15 *Holders of rec. Mar. 31
New York Investors, Inc.. com.-DIvide nd orni tted.
3
Apr. 15 Holders of rec. Apr. 6
Second preferred
Niagara Alkali, pref. (guar.)
*51.75 Apr. 1 *Holders of rec. Mar. 24
*2
Mar. 31 *Holders of rec. Mar. 26
Noel Securities Co., pref. (guar.)
*50c. Apr. I *Holders of rec. Mar. 25
North American Fin. Corp., cl. A (qu.)
North Amer. Securities, cl. A (in stock). eti May 1 Holders of rec. Apr. 1
Nutley Mtge.& Title Guar. Co.(oust.).. *14 Apr. 1 *Holders of rec. Mar. 27
75c. Apr. 16 Holders of rec. Apr. 60
Oil Shares, Inc., Pref.(guar.)
Oliver United Filters, class B (nuar.)_ _ _ *12%c Apr, 1 *Holders of rec. Mar. 30
4.20c. Apr. 20 *Holders fo rec. Apr. 10
Onomea Sugar (monthly)
$1. May 1 Holders of roc. Apr. 20
Outlet Co., common (guar.)
First preferred (guar.)
131 May 1 Holders of rec. Apr. 20
1% May 1 Holders of rec. Apr. 20
Second preferred (guar.)
Pacific Portland Cement,631% Pt.(qu.) '131 Apr. 4 *Herders of rec. Mar. 31
Paepcke Corp., corn. dr pref.-Dividends Passed
Parke Austin dr Lipscombe, com.-Divld end Pa ssed.
*50c Apr. 15 *Holders of rec. Apr. 1
Preferred (guar.)
Pennsylvania Glass Sand,$7 Pf.(quar.)_ *$1.75 Apr. 1 *Holders of rec. Mar.16
Phillips-Jones Corp.. pref.(guar.)
1% May I Holders of rec. Apr. 204
Pittsburgh United Corp., 7% prof. (qu.) 1% May 1 Holders of rec. Apr. lie
Plume & Atwood Mfg. Co. (guar.)
*750 Apr. 1 *Holders of rec. Mar. 25
Power & Rail Trusteed Shares
*15c Apr. 15 *Holders of rec. Mar. 31
Prudence Co., Inc., preferred
334 May 1 Holders of rec. Apr. 10
Prudential Investors, Inc.,6% Pt.(gu.)- •11,4 Apr. 15 *Holders of rec. Mar. 31
Public UM.Inv.(Salina), pref.(guar.).. *31.75 Apr. 1 *Holders of rec. Mar. 15
Queen City Petroleum, pref.(oust.) _ _ 1.1% Apr. 14 *Holders of rec. Apr. 1
Railroad & General Securities. common_ '1271 May 1 *Holders of rec. Apr. 10
Raymond Concrete Pile, com.(quar.)_
*50c May I *Holders of rec. Apr. 20
$3 preferred (guar.)
*750 May 1 *Holders of rec. Apr. 20
Apr. I *Holders of rec. Mar. 25
Robinson(D.P.II.) Co., 1st pref.(qu,)_
Ruud Manufacturing,common (guar.)
650. May 1 Holders of rec. Apr. 20
Salt Lake Pressed Brick, Prof. (guar.).* $1.875 Apr. 1 *Holders of rec. Mar. 25
Salt Creek Producers Assn. (guar.)- - - - *35c May I *Holders of rec. Apr. 15
Schramm Johnson Drugs,class A (qu.)
*2
Ain% 1
s134 Apr. 1
Preferred (guar.)- Security Title Bldg.,37 pref.(guar.)._ -- *51.75 Apr. 1 *Holders of rec. Mar. 26
Segal Lock dt Hardware, pref.(guar.) _ *8734c Apr. 15 *Holders of rec. Mar. 31
Silver (Isaac) Bros., common (guar.).- 25c. Apr. 20 Holders of rec. Apr. 14
1% May 1 Holders of rec. Apr. 14
7% preferred (guar.)
Solvay Amer. In eestment Corp.,pf.(gu.) *1% May 15 *Holders of rec. Apr. 15
Southeastern Invest. Trust, prof.(guar.) *51.25 Apr. 1 *Holders of rec. Mar. 28
Standard Store Service, cony. pref.(on.) *75c. May 1
State Street Invest. Corp., Boston(qu.)_ *75c. Apr. 15 *Holders of rec. Mar. 31
*1% May 1 *Holders of rec. Apr. 15
Suburban Flee. Secur., lot pref.(qu.)
Superior Portl. Cement,el. A (monthly)- *27%c May 1 *Holders of rec. Apr. 23
Terminal Realty Corp., pref. (guar.)--- *$ .50 Apr. 1 *Holders of rec. Star. 20
Texas Creosoting (guar.)
•250. Mar. 31 *Holders of rec. Mar. 26
Tide Water 011, pref.(guar.)
'131 May 15 *Holders of rec. Apr. 17
Toronto Carpet Mfg., corn. dr pref. (gar.) *32 Apr. 1 *Holders of rec. Mar- 31
sq.% Apr 1 *Holders of rec. Mar. 15
Tracers Fin. Corp'. pref. A (guar.)
Apr. 1 *Holders of rec. Mar. 15
*2
Preferred B (guar.)
Transportation Corp.. Ltd., Prof. ((Bt.)- 1% Apr. 1 Holders of rec. Mar.28
Transue & Williams Steel Forgings(411.)- *25c. Apr. 15 *Holders of rec. Apr. 4
United Linen Supply. cl. B (guar.)
*31.50 Apr. 20 *Holders of rec. API% 1
sy
U. S. Fuel Co., prof
Apr. 1 *Holders of rec. Mar. 28
U.S. Industrial Alcohol, corn.(au.).
*50e. May 1 *Holders of rec. Apr. 15
Upreesit Metal Corp.(guar.)
*El Apr. 1 *Holders of rec. Mar. 16
Victor Talking Machine,corn.(guar.)- *31 May 1 *Holders of rec. Apr. 4
Old pref. (guar.)
*$1.75 Apr. 15 *Holders of rec. Apr. 4
*1
Apr. 1 *Holders of roe. Apr. 1
Washington Motor Coach, pref. 000Water Mfg.,33 pref.(guar.)
*75c. May 1 *Holders of rec. Apr. 21
Western Grocer of Iowa, COM.(ollar.)
*3734c May 1 *Holders of rec. Apr. 20
Wlco Elec., corn. (guar.)
•75e. Apr. 1 *Holders of rec. Mar. 27
8% preferred (guar.)
*2
Apr. 1 *Holders of rec. Mar. 27
Wisconsin Invest.(Del.) pref. A
*750 May 1 *Holders of rec. Apr. 22
Zinke Renewing Shoe Corp.com.(quar.)_ '134c. Apr. 2
Common (guar.)
*1%0 July 2
Common (guar.)
*1 c Oct. 2
Preferred (guar.)
4,3c Apr. 2
Preferred (guar.)
'
1,3e July 2
Preferred (guar.)
'3c Oct. 2
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week, these being given in the preceding table.
Name of Compass
Railroads (Steam).
Atlanta dr Charlotte Air Line Ry
Atlantic Coast Line RR.. pref
Baltimore & Ohio. corn. (guar.)
Preferred (guar.)
Boston & Providenee guar.)
Quarterly
Carolina Clinchfield & Ohio. corn.(qu.)_
Stamped efts. (guar.)
Chesapeake et Ohio. preferred
Chicago Great Western, preferred
Cincinnati Union Terminal, pref. (qu.)....
Preferred (guar.)
Preferred (guar.)
Cleve., Cin., Chic.& St. Lou.,pfd.(qu.)_
Dayton & Michigan, pref. (guar.)
Delaware Lackawanna & Western (gu.)Georgia RR.& Banking (guar.).-Internat. Rye,of Cent. Amer., pfd.(411.)
Joliet St Chicago (guar.)
Kansas City Southern, common (guar.)
Preferred
Lehigh & Hudson River (guar.)
Mahoning Coal RIL.,common (guar.).- Maryland & Pennsylvania (guar.)
Midland Valley RR.,corn
Mill Creek & Mine Hill Nay. & Eft._
New York Central RIt. (guar.)
Norfolk & Western. ad]. prof.(guar.)---
Pea
Cent
When
Payable
Books Closed.
Days Bielutise.
.414 Sept. 1 'holders of roe. Aug. 20
*21§ May 11 *Holders of roe. Apr. 24
11( June 1 Holders of rec. Apr. 18a
1
June 1 Holders of rec. Apr. 18a
1,21i July 1 *Holders of rec. June 20
•234 Oct. 1 *Holders of rec. Sept. 19
1
Apr. 10 Holders of rec. Mar.d3la
1% Apr. 10 Holders of rec. Mar. 31a
34 July i Holders of me. June 80
50c. Apr. 20 Holders of roe. Apr. 10a
.1% July 1 *Holders of roe. June 20
el% Oct. 1 *Holders of rec. Sept. 19
•1e,i Jan.1'32 *Holders of rec. Dec. 19
elm Aim. 30 *Holders of roe. Apr. 20
•1
Apr. 7 *Holders of rec. Mar. 17
$1
Apr, 20 Holders of rec. Apr. 44
Apr. 15 Holders of rec. Apr. 1
3
1% May 15 Holders of rec. Apr. 30a
1,4 Apr. 6 Holders of rec. Mar. 27a
May 1 Holders of rec. Mar. 31a
Apr. 15 Holders of rec. Mar. 310
1
*2
Mar.31 *Holders of rec. Mar. 24
$12.50 May 1 Holders of roe. Apr. 150
Apr. 10 *Holders of rec. Mar.31
$1.25 Apr. 15 Holders of roe. Mar.31a
*51.26 July 9 *Holders of rec. July 8
1% May 1 Holders of roe. Mar.27a
1
May 19 Holders of rec. Apr. 300
2530
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Railroads (Steam) (Counseled).
North Carolina RR.. 7% guar. stock
*3% Aug. 1 *Holders of reo. July 20
Northern Pacific (quar.)
134 May 1 Holders of roe. Mar. 136
Pere Marquette, pref. & prior pref.(qu.) 131 May I Holders of rec. Apr. 40
Philadelphia dr Trenton (quar.)
*234 Apr. 10 *Holders of rec. Mar. 31
Pitts. Ft. Wayne & Chicago, pref.(qu.). 131 Apr. 7 Holders of rec. Mar. 10a
Reading Company, corn. (quar.)
May 14 Holders of rec. Apr. 160
$1
2nd preferred (quar.)
500. Apr. 9 Holders of roe. Mar. 19e
Rutland. preferred
Apr. 15 Holders of roe. Mar.27a
2
Bt.Lode-San FrancMoo,8% pref.(en.)
May 12
1% May 1 Apr. 12 to
I% Aug. 1 Holders of reo. July lo
6% Preferred (816:.)
1% Nov. 2 Holders of Tee. Oct. lo
6% Preferred (War.)
Southern By.common (qual.)
2 May 1 Holders of reo. Apr. la
Common (quU.)
1.65 Aug. 1 Holders of rec. July to
Preferred (quar.)
1% Apr. 15 Holders of rec. Mar.23a
Southwestern RR.of Ga
*2% July 1 *Holders of reo. June 1
Tennessee Central. preferred
July 1 *Holders of rec. June 20
United N. J. RR.& Canal Cos.(quar.)_
2% Apr. 10 Mar. 20 to Apr. 9
Vermont dr Massachusetts
3 Apr. 7 Mar. 11 to Apr. 7
Warren RR
"51.75 Apr. 15 *Holders of roe. Apr. 4
Public Utilities.
Alabama Power, 55 pref.(quar.)
$1.25 May I Holders of rec. Apr. 15
$7 preferred ((War.)
$1.75 July 1 Holders of roe. June 15
$8 preferred (quar,)
$1.50 July 1 Holders of reo. June 15
$5 preferred (quar.)
$1.25 Aug. 1 Holders of reo. July 15
American Cities Pow. & Lt., Cl. A (qu.) (9) May 1 Holders of rec. Apr. 4
Class B (in class B stook)
Aug. 1 Holders of roe. July 3
p5
Amer. Commonwealths Power Corp.
Com. A&B(pay. 1-40th sh.com.A stk.) 1234 Apr. 25 Holders of rec. Mar. 31
First preferred series A (quar.)
$1.75 May 1 Holders of roe. Apr. 15
$6.50 first pref. (quar.)
$1.63 May 1 Holders of roe. Apr. 15
$6 first pref. (quar.)
$1.50 May 1 Holders of roe. Apr. 15
Second pref. series A (guar.)
$1.75 May 1 Holders of rec. Apr. 15
Amer. Dist. Teleg. of N.J., corn.(qu.).. *1
Apr. 15 *Holders of roe. Mar. 15
Preferred (quay.)
•154 Apr. 15 *Holders of roe. Mar. 15
American Gas & Electric, pref. (quar.)_ _ $1.50 May I Holders of rec. Apt. 9
Amer. Light & Traction. com. (quar.)-- 62340. May 1 Holders of rec. Apr. 17
Preferred (guar.)
3734e. May I Holders of rec. Apr. 17
Amer. Telep. & Teleg. (quiz.)
234 Apr. 15 Holders of rec. Mar. 140
Amer. Water Works & El., corn. (qu.)
75c. May 1 Holders of rec. Apr. 10a
Arkansas-Missouri Power, pref. (quar.)_ *134 May 1 *Holders of rec. Apr. 15
Associated Gas & Elec., class A (quay.)
z50c. May 1 Holders of rec. Mar. 31
$4 preferred (quar.)
251 May 1 Holders of rec. Mar. 31
Apr. 15 Holders of rec. Mar.31
Associated Telep. Utilities, corn. quar.). 12
2
Apr, 15 Holders of ree. Mar. 23
Bell Telephone of Canada (quar.)
Bell Telephone of Pa.. 634% Pref. (:111-) 114 Apr. 15 Holders of rec. Mar.20
.40c Apr. 15 "Holders of reo. Apr. 1
Bridgeport Hydraulic Co., (quar.)
50c Apr, 15 Holders of rec. Mar. 31
British Columbia Power, class A (guar.)
Brooklyn Borough Gas, common (qu.)-- •$1.50 Apr. 10 *Holders of rec. Mar. 31
Brooklyn-Manhattan Transit, corn.(qu.) $1 Apr. 15 Holders of rec. Apr. la
111.50 Apr. 15 Holders of rec. Apr. is
Preferred series A (quar.)
Cables dr Wireless. Ltd.
*la% Apr. 6 *Holders of roe. Feb. 27
Amer. dep. recta. 534% pref
200 Apr. 25 Holders of rec. Mar. 31
Canada North. Pow. Corp.. corn. (qu.)
Preferred (quar.)
154 Apr. 15 Holders of rec. Mar. 31
Apr, 7 Holders of rec. Mar. 23
Canadian Light & Power. com.(No. 1)_
1
Canadian Western Natural Gas, Light,
Hest & Power, preferred (extra)
.025o June 1 *Holders of rim. May 15
Cent. Hudson Gas & Elec., com.(quar.) "20o May 1 *Holders of roe. Mar. 31
Central Illinois Pub. Serv_ $6 pref.(qu.) .51.50 Apr. 15 *Holders of rec. Mar. 31
Central & S. W.Utilities, cote.(quar.).
1154 Apr. 15 Holders of rec. Apr. 2
July 1 Holders of rec. June 5
Central States Elec., corn. fin com. stk.) 15
Cincinnati, Newport dr Covington Light
•134 Apr. 15 *Holders of rec. Mar. 31
& Traction, com. (quar.)
•134 Apr. 15 *Holders of rec. Mar. 31
Preferred (quar.)
Cities Service Pow. Jr Lt.$7 pr.(mthly.) 58 1-3c Apr, 15 Holders of rec. Apr. is
500. Apr. 15 Holders of rec. Apr. la
$8 preferred (monthly)
41 2-3c Apr. 15 Holders of rec. Apr. Is
$5 preferred (monthly)
58 1-30 May 15 Holders of rec. May la
$7 preferred (monthly)
500 May 15 Holders of rec. May is
56 preferred (monthly)
41 2-30 May 15 Holders of rec. May Is
$5 preferred (monthly)
*2
May. 1 *Holders of rec. Apr. 15
Commonwealth-Edison Co. (quar.)
Consolidated Gas of NI. Y., pref. (qu.)-. $1.25 May 1 Holders of rec. Mar.280
Consumers Power, 7% pref. (quar.)
134 July 1 Holders of rec. June 15
1.65 July 1 Holders of rec. June 15
8.6% preferred (guar.)
6% preferred (quar.)
134 July 1 Holders of rec. June 15
$1.25 July 1 Holders of roe. June 15
$5 preferred (quar.)
500 May 1 Holders of rm. Apr. 15
6% preferred (monthly)
500 June 1 Holders of reo. May 15
6% preferred (monthly)
50c July 1 Holders of rec. June 15
6% preferred (monthly)
550. May 1 Holders of rec. Apr. 15
6.6% preferred (monthly)
55c. June 1 Holders of rec. Mar. 15
6.6% preferred (monthly)
550. July 1 Holders of rec. June 15
6.6% preferred (monthly)
Apr. 15 Holders of rec. Mar.20a
Detroit Edison Co.(quar.)
2
Diamond State Telep., 634% pref.(qu.) *154 Apr. 15 "Holders of roe. Mar. 20
Duquesne Light,5% 1st pref. (guar.)._. 134 Apr. 15 Holders of rec. Mar, lila
Elec. Bond & Share, corn.(in corn.stk.). f134 Apr.d15 Holders of roe. Mar. 7
$1.50 May 1 Holders of rec. Apr. 4
$6 preferred (quar.)
$1.25 May 1 Holders of rec. Apr. 4
$5 preferred (quar.)
250. May 1 Holders of rec. Apr. 11 a
Electric Power & Light, corn. (quar.)
50o. May 1 Holders of rm. Apr. 15u
Empire District Elec. Co., pr.(nattily.)_ _
Empire Gas & Fuel Co.,8% pt.(mthly.)_ 662-30 May 1 Holders of roe. Apr. 15a
58 1-3c May 1 Holders of reo. Apr. 15a
7% Preferred (monthly)
54 1-6c May 1 Holders of reo. Apr. 156
634% preferred (monthly)
500. May 1 Holders of rm. Apr. 15a
6% preferred (monthly)
750. Apr. 15 Holders of reo. Mar. 31
English Electric, class A (quar.)
1,17340 Apr. 10 *Holders of roe. Mar. 31
Fairmount Park Transit pref.(quar.)
Federal Public Service, pref. (quar.) _ _ 4.134 Apr. 15 *Holders of ree. Mar. 31
Foreign Power Securities Corp., pf. (qu.) 134 May 15 Holders of rec. Apr. 30
Germantown Pass. By.(Phila.) (qu.)__$ 1.3134 Apr. 6 May. 18 to Apr. 5
250. May 1 Holders of rec. Apr. 15
Hamilton Bridge, corn.(quar.)
134 May 1 Holders of roe. Apr. 15
634% preferred (quar.)
*4
May 1 *Holders of rec. Mar. 26
Hannibal Bridge
'134 Apr. 15
Harrisburg Gas, pref. (quar.)
'68340May 1 *Holders of reo. Apr. 15
Hartford Electric Light (quar.)
Illinois Power & Light, $6 pref.(q tr.) _ _ _ $1.50 May 1 Holders of rec. Ayr. 10
Internat. Hydro-Elec.System, cl. A(qu.) (b) Apr. 15 Holders of roe. Mar. 25a
87%o. Apr. 15 Holders of reo. Mar.25a
$3.50 convertible Preferred (quar.)50e. Apr. 15 Holders of rec. Mar. 20a
Internat. Telep. & Teleg. Corp.(quar.)International Utilities Corp. al. A (au).. 87340. Apr. 15 Holders of rec. Mar. 27
$1.75 May 1 Holders of roe. Apr. 176
$7 preferred quar.)
134 Apr. 15 Holders of rec. Mar. 31
Interstate Pub.Serv.. 7% pr. lien (qu.)_
*2
Apr. 15 *Holders of rec. Mar. 30
Interstate Utilities, corn. (quar.)
(quar.)
Apr. 15 *Holders of roe. Apr. 1
pref.
Works,
8%
Water
'134
Joplin
131 Apr. 15 Holders of rec. Mar. 176
Kentucky Securities, pref.(quar.)
*134 Apr. 15 *Holders of rec. Mar. 26
Kentucky Utilities. pref. (quar.)
75e. May 1 Holders of rec. Apr. 22
Keystone Telephone of Phila., pref.(qu.)
"2 Apr. 10 *Holders of roe. Mar.31
Lincoln Tel.& Tel., cum.(quar.)
"1.50 May I "Holders of rec. Apr. 15
Long Island Lighting,com.(quar.)
•134 Apr. 15 *Holders of roe. Mar. 2i
Mass. Lighting Cos.,6% prof.(quer.)
"2 Apr. 15 *Holders of rec. Mar. 25
8% preferred (quar.)
Massachusetts Utilities Assoc., pr.(qu.)_ 6234e Apr, 15 Holders of rec. Mar. 31a
Memphis Natural Gas,common (quer.). .15c. Apr. 15 *Holders of rec. Mar. 31
.012
May 15 *Holders of rec. Apr. 15
Middle West Utilities, corn. (In stock)
"51.50 May 15 *Holders of rec. Apr. 15
$6 preferred (quar.)
134 Apr. 6 Holders of rec. Mar. 21
Midland Utilities, 7% prior lien (qu.)131 Apr. 6 Holders of rec. Mar. 21
6% prior lien (guar.)
134 Apr. 6 Holders of rec. Mar. 21
7% Preferred A (quar.)
134 Apr. 6 Holders of rec. Mar. 21
8% preferred A (quart
134 Apr. 30 Holders of rec. Apr. 200
Milwaukee Elec. By.& Light, pref (rill.)
4.134 Apr. 15 *Holders of rec. Mar. 31
Missouri Gas & Elec., prior lien (quar.)-Missouri R.-Sioux City B. Co., pf.(qu.)_ $1.75 Apr. 15 Holders of rec. Mar. 31
$1.75 May 1 Holders of reo. Apr. 15
Mohawk & Hudson Pow., pref.(quar.)
Monongahela Valley Water, pref.(quar.) •134 Apr. 15 *Holders of reo. Apr. 1
370. Apr. 30 Holders of rec. Mar. 31
Montreal Lt., Heat & Pow. Consol.(qu.)
Montreal Telegraph (quiz.)
800. Apr. 15 Holders of rec. Mar. 31
Mountain States Power Co., pref. (quay.) 134 Apr. 20 Holders of rec. Mar. 31
Mountain States Tel. & Tel. (quar.)---- *2 Apr. 16 *Holders of rec. Mar. 31
Municipal Service, pref. (quar.)
134 May 1 Holders of rec. Apr. 15
National Electric) Power, com. A (qu.).
45e. May 1 Holders of reo. Apr. 10
NationalFuel Gas (quar.)
25e. Apr. 15 Holders Of reo. Mar. 31
[Vol,. 132.
FINANCIAL CHRONICLE
Name of Company.
When
Per
Cent. Payable
Books Closed.
Days Inclusive.
Public Utilities (Concluded).
National Power & Light,$6 pref.(qu.)._ $1.50 May 1 Holders of rec. Apr. 11
Nevada-Calif. Elec. Corp., pref. (quar.) 154 May 1 Holders of roe. Mar. 300
New England Power Assn.. cm.(au.)-50o. Apr. 15 Holders of roe. Mar.310
New England Pub. Serv., $7 pref.(qu.)_ $1.75 Apr. 15 Holders of rec. Star. 31
$1.75 Apr. 15 Holders of rec. Mar. 31
$7 adjustment preferred (quar.)
$1.50 Apr. 15 Holders of roe. Mar. 31
$6 preferred (quar.)
$1.50 Apr. 15 Holders of rec. Mar.31
56 eonvettlble preferred (quar.)
N.Y.Power dr Light Corp.. 7% pf.(qu.) 134 July 1 Holders of roe. June 15
$1.50 July 1 Holders of rect. June 15
$6 Preferred (guar.)
New York Telephone. pref.(quar.)
1% Apr. 15 Holders of roe. May.20
North Amer. Light & Pow., corn.(qu.)__ "12
May 15 *Holders of roe. Apr. 20
Northern Ind, Pub. Serv., 7% of.(qu.)_
Hi Apr. 14 Holders of rec. Mar. 31
6% preferred (quar.)
134 Apr. 14 Holders of roe. Mar. 31
534% preferred (quar.)
154 Apr. 14 Holders of roe. Mar. 31
Northern Mexico Power Jr Dev.,(pf.qu.) 134 Apr, 9 Holders of rm. Apr. 4
Northern N. Y Telephone Corp.(qu.)
*234 Apr. 15 *Holders of rec. Mar. 31
Northern N. Y. Utilities, pref. (quar.)._
154 May 1 Holders of roe. Apr. 10
Northern Ontario Power, corn.(quar.)._
50o. Apr, 25 Holders of roe. Mar. 31
Preferred (War.)
134 Apr, 2 Holders of rm. Mar. 31
Holders of roe. Mar. 31
May
Northern States Power, corn. A (quar.)_ _
2
7% preferred (quiz.)
134 Apr. 2 Holders of rm. Mar. 31
6% preferred (quar.)
134 Apr. 2 Holders of rm. Mar. 31
Holders of rec. Mar. 20
Northwestern Bell Telephone, prof.(qu.) 131 Apr. 1
Holders of rce. Apr. 15a
Ohio Public Service, 7% mei.(mthly.)_ 58 1-30 May
Holders of roe. Apr. 15a
500, May
8% preferred (monthly)
Holders of rec. Apr. 15a
412-30 May
5% preferred (monthly)
50o. Apr. 1 Holders of roe. Mar. 31a
Pacific Gas de Eioe., oom.(quar.)
750. May 1 Holders of roe. Apr.d20
Pacific Lighting, common (Muir-)
$1.50 Apr. 1 Holders of rec. Mar.31
$8 preferred (guar-)
Pacific Northwest Public Service*Holders of rec. Apr. 15
$1.80 May
7.2% first preferred (quar.)
1% Apr. I Holders of rec. Mar. 316
Pacific Tel. Jr Tel., pref.(quer.)
Holders of roe. Apr. 20
550. May
Peruut. Power Co., $6.60 pref.(mthly.)_
me. June
Holders:of rm. May 20
$6.60 preferred (monthly)
Holders of roe. May 20
$1.50 June
$6 preferred (monthly)
Apr. 1 Holders of roe. Apr. 36
Peoples Gas Light dr Coke (quar.)
Apr. 1 *Holders of roe. Mar.31
•52
People, Telephone Corp. (quar,)
200. Apr, 3 Holders of rec. Apr. la
Philadelphia Company, com.(quar.)- - 15o. Apr. 3 Holders of rec. Apr. la
Common (extra)
$1 Apr. 3 Holders of rec. Apr. la
Old oom.(par $50) (quar.)
750. Apr. 3 Holders of rec. Apr. la
Old com.(par $50)(extra)
Holders of rec. Apr. 1 a
$1.50 May
6% Preferred
Holders of rec. Apr. 106
$1.25 May
Philadelphia Electric) Co.,$5 pref. (qu.)
Holders of roe. Apr. la
$1.75 May
Phila. Rapid Transit, preferred
500. May 2 Holders of rec. Apr. 30
Power Corp. of Canada, corn. (quer.)
Holders of rec. Mar. 31
134 Apr. 1
6% Preferred (quar,)
75c. Apr. 1 Holders of rec. Mar. 31
Participating preferred( quar.)
Holders of rec. Apr. 150
Pub. Serv. of Col., 7% pref. (monthly). 581-3o May
Holders of roe. Apr. IA°
50o. May
6% preferred (monthly)
Holders of roe. Apr. 15a
41 2-3o May
5% preferred (monthly)
Pub.Serv. Corp.of N.J,6% pr. (mthly) 500. Apr, 3 Holders of rec. Apr. 36
of rec. Mar.20
Apr.
1
Holders
Puget Sound Power Jr Light, pref. (qu.) $1.50
$1.25 Apr. 1 Holders of rec. Mar. 20
Prior preferred (quar.)
62340. Apr. 1 Holders of rec. Mar.23
Quebec Power (quar.)
Holders of rec. Apr. 15
May.
Rhode Island Public Serv., cl A (qu.)--- $1
Holders of rec. Apr. 15a
50c. May.
Preferred (quar.)
Holders of rec. Mar, 31
San Diego Cons. Gas Jr El., pref.(qu.)-134 Apr. 1
Seattle Gas., prof.(quar.)
•131 Apr. 1 *Holders of rec. Mar. 31
of rec. Mar. 31
*Holders
Sedalia Water Co., pref.(quar.)
Apr.
1
*134
Shawinigan Water Power (guar-)- 63c. Apr. 11 Holders of rec. Mar. 16
South Pittsburgh Water,7% pref.(qu.)134 Apr. 1 Holders of rec. Apr. 1
6% preferred (guar.)
134 Apr. 1 Holders of reo. Apr. 1
Southern Calif. Edison, Com.(qUar.)
50o. May 1 Holders of rec. Apr. 206
Holders of rec. Mar. 20
Orig. Preferred ((in.)
50c Apr. 1
Holders of rec. Mar. 20
Preferred series C (quar.)
18 *.f, c. Apr. I
Southern Calif. Gas Co., pref. A (quar.) *37%c Apr. 1 *Holders of rec. Mar. 31
Southern Canada Power. corn. (quar.) _ _ 250. May 1 Holders of rec. Apr. 30
Ilolders of rec. Mar. 20
134 Apr. I
Preferred (quar.)
Standard Gas & Electric, corn.(quer.)
8734c Apr. 25 Holders of rec. Mar. 310
$6 preferred (quar.)
$1.50 Apr. 25 Holders of rec. Mar. 310
$7 preferred (quar.)
$1.75 Apr. 25 Holders of rec. Mar. 310
50c. June 1 Holders of rec. May 11
Standard Pr.& Lt., corn.& com. B (qu.)
$1.75 May 1 Holders of rec. Apr. 16
Preferred (guar.)
Union Telephone, pref. (quar.)
'4234c Apr. 15 *Holders of rec. Mar. 31
United Lt. & Pow., COM. A re Ii M./- 25c. May 1 Holders of rec. Apr. 156
United Telep. (Del.) 2nd prof. (quar.) *51.75 May 1 *Holders of reo. Apr. 20
*2 Apr. 15 *Holders of rec. Mar. 31
United Telep- Kansas), corn. Wm"'
'134 Apr. 15 *Holders of reo. Mar. 31
Preferred (guar.)
2
Apr. 15 Holders of rec. Mar. 200
Western Union Telegraph (guar.)
134 May 15 Holders of rec. Apr. 206
West Penn Elec. Co.,7% pref. (quar.).134 May 15 Holders of rec. Apr. 200
6% Preferred (quar.)
IAi May I Holders of rec. Apr. 60
West Penn Power Co.,7% pref. (guar,)
131 May 1 Holders of rec. Apr. ea
6% Preferred (guar.)
5134 Apr. 15 *Holders of rec. Mar. 31
Wisconsin G.& E., 7% pref. A (quar.)"134 Apr. 15 'Holders of rm. Mar.31
634% preferred B (quar.)
Banks.
Trade (guar.)
134 Apr. 4 Hoidens of roe. Mar. 25
Trust Companies.
Westchester Title Ar Tr.(White Pl.)(qu.) 60e. Apr, 6 Holders of roe. Mar. 31
Fire Insurance.
*400. Apr. 15 'Holders of rec. Mar. 31
American Alliance Insurance (quar.)
American Equitable Assurance (quar.).'3734c May 1 *Holders of roe. Apr. 20
"300. Apr, 1 *Holders of rec. Mar. 20
Brooklyn Fire (quar.)
•400. Apr. 15 *Holders of rec. Mar. 31
Great American (War.)
'37340 May 1 "Holders of reo. Apr. 20
Knickerbocker, common (quay)
Apr. 15 *Holders of rec. Apr. 4
'154
Preferred (quiz.)
•30o. May 1 *Holders of rm. Apr. 20
New York (War.)
Miscellaneous.
134 Apr. 20 Holders of roe. Apr. 106
Abitibi Power Jr Paper,6% pref.(qu.)
134 May 1 Holders of mi. Apr. 15a
Abraham Jr Straus, Inc., pref.(quiz.)600. May 1 Holders of rec. Apr. 15
Adams(I. D.) Mfg.,corn.(quar.)
35c. Apr. 10 Holders of rec. Mar. 210
Addressograph Internat, Corp. (quar.)
75.3. Apr. 15 Holders of reo. Mar. 31a
Air Reduction Co.(quar.)
100. May 1 Holders of roe. Apr. 10a
Alaska Juneau Gold Mining (quar.)
150. Apr. 18 Holders of rm. Mar. 3I0
Allegheny Steel, common (monthly)
150. May 18 Holders of rec. Apr. 30a
Common (monthly)
*Holders of rec. May 15
el% June
Preferred (quay.)
*Holders of reo. Aug. 15
Sept.
•154
Preferred (quiz.)
*Holders of reo. Nov. 13
•134 Dee,
Preferred (quar.)
Holders of rm. May 20
134 June
Alliance Realty. pref.(qual.)
Holders of ma Aug. 20
134 dept.
Preferred (quar.)
Holders of roeo Nov 20
• 134 Doe,
Preferred (quar.)
*Holders
of reo. June 15
July
.87340
(quar.)
pref.
Allied Laboratories, cony.
25c. Apr. 25 Holders of rec. Apr. la
Alpha Portland Cement.ecm.(quar.)--(qu) *50c. June 30 *Holders of roe. June 15
Aluminum Manufacture,. Ine., cum.
"500. Sept.30 *Holders of roe. Sept. 15
Common (quar,)
"50e. Dec. 31 *Holders of roe. Dee. 15
Common (guar-)
Apr. 15 *Holders of roe. Mar. 31
•134
(quiz.).
Inc.,
Pref.
American Art Works,
15o. Apr. 15 Holders of roe. Apr. 8
kmer.-Canadian HUI., com.(No. 1)May 1 Holders of roe. April 106
111
American Coal (guar.)
*100. Apr. 15 *Holders of roe. Apr. 5
Amer. Electrlo Securities (quar.)
•154 June 1 *Holders of roe. May 26
American Envelope, 7% Pref. (quar.)'154 Sept. 1 *Holders of rec. Aug. 25
7% preferred (quar.)
'1 54 Dec. 1 *Holders of rec. Nov. 2A
7% preferred (quar.)
*15o. Apr. 10 *Holders of rec. Mar. 31
American Factors(monthly)
Amer. Founders Corp.,7% 1st pi. A(qu.) 87340 May 1 Holders of reo. Apr. 1
87340 May 1 Holders of rec. Apr. 1
7% 1st pref. series B (quar.)
75e. May 1 Holders of reo. Apr. 1
6% 1st Prof. series D (Van)
Amer.Furniture Co., pref. A (guar.)._ _ _ '131 Apr. 15 *Holders of roe. Apr. 13
35o. May 1 Holders of rec. Apr. 146
Amer.Home Products(monthly)
July 1 Holders of reo. June 15
fimer. Manufacturing CO.. corn- (quar.)
Oct. 1 Holders of roe. Sept.
1
Common (quiz.)
Dee. 81 Holders of rec. Dee. 15
1
Common (quiz.)
134 Mar.81 Holders of rec. Mar. i
Preferred (quar.)
134 July 1 Holders of rm. June 15
Preferred (quar.)
134 Oct. 1 Holders of rec. Sept.le
Preferred (quar.)
134 Dec. 31 Holders of roe. Dec. 15
Preferred (quar.)
APRIL 41931.]
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Daye Inclusive.
Miscellaneous (Continued).
American Ice, corn.(quar.)
75e. Apr. 25 Holders of rect. Apr. 7a
Preferred (quar.)
1% Apr. 25 Holders of reo. Apr. 7a
American Meter (quar.)
"75o. Apr. 30 *Holders of reo. Apr. 15
American Optical Co., 1st tired. (quar.) •1% July 1 *Holders of rec. June 20
•1% Oct. 1 *Holders of reo. Sept. 19
First preferred (quar.)
First preferred (quay.)
•1% Dec. 31 *Holders of rec. Dec. 20
Amer. Rolling Mill. 6% pref. (quar.)
*14 Apr. 15 *Holders of reo. Mar. 31
Amer. Steel Foundries. coin.(guar.).-750. Apr. 15 Holders of rec. Apr. le
American Thermos Bottle. corn.(qua?.)
0300. May 1 *Holders of reo. Apr. 20
Amer. Type Founders, corn. (quar.)....
2
Apr, 15 Holders of reo. Apr. 4a
Preferred (quar.)
1% Apr. 15 Holders of reo. Apr. 4a
Amer. Vitrified Prod., pref. (quar.)---- •1% May. 1 'Holders of reo. Apr. 20
Anaconda Copper Mining (quar.)
37%o May 18 Holders of rec. Apr. ha
Anaconda Wire & Cable (quar.)
25o. May 11 Holders of reo. Apr. 116
Anglo National Corp., corn. A (quar.)
50o. Apr. 15 Holders of rec. Apr. 4
Associated Dry Goods, corn.(guar.)
62o. May.' 1 Holders of reo. Apr. 10a
lst preferred (guar.)
1% June 1 Holders of rec. May 8a
Second preferred (quar.)
1% June 1 Holders of rec. May 8a
Associated Portland Cement Mfrs.
Am. dep. rcts. for. ord. reg. sits
4468
Apr. 6 'Holders of rec. Mar. 17
Atlantic Gulf & W.I. 8.13. Linos. pf.(qu.) 15( 'Una 30 Holders of reo. June 100
Preferred (quar.)
15( Sept.30 Holders of reo. Sept. 100
Preferred (guar.)
14 Dec. 30 Holders of reo. Dec. 10.
Atlas Plywood (guar.)
•50o. Apr. 15 *Holders of rec. Apr. 1
Austin. Nichols & Co., Inc., prior A (qu.)
75o. May I Holders of rec. Apr. 150
Babcock & Wilcox Co.(quer.)
1% July I Holders of reo. June 20a
Bancroft (Joseph) & Sone Co., pf.(qu.). 1% Apr. 30 Holders of rec. Apr. 15
Sandhi' Petroleum (monthly)
•10o. Apr. 20 *Holders of rec. Mar. 31
Bankers Investment Trust of Am., coin_ •10o. Apr. 10 *Holders of roe. Mar.20
Debenture stock (quar.)
•15c. June 30'Holders of rec. June 15
Debenture stook (quar.)
•150. Sept.30 *Holders of reo. Sept. 15
Debenture stock (quar.)
•15o Dec. 31 "Holders of reo. Dec. 15
Bankers Scenes. Corp.. oom.& pf.(qu.).
75e Apr. 15 Holders of reo. Mar. 311
Bayuk Cigars, Inc., Common (quar,)
750 Apr. 15 Holders of rec. Mar. 316
First preferred (quar.)
I% Apr. 15 Holders of rec. Mar. 31a
Bethlehem *noel coin. (Qua?.)
$1.50 May 15 Holders of reo. Apr. 17.
Bliss (E. W.) Co.Common(payable In eom mon stook)- f2
July 1 Holders of ice. June 20
Common(payable in common stoek)1 Holders of roe. Sept. 20
Oct.12
Bloomingdale Bros., Inc., Pref.(guar.).
1% May 1 Holders of reo. Apr. 200
Bon Aml Co., class A (guar.)
Apr. 30 Holders of reo. Apr. 150
$1
Bourjois, Inc., pref. (quar.)
•6834c May 15 'Holders of rec. May 1
Bmndram Henderson. Ltd., corn. (au.). .50e. May 1 *Holders of rec Apr. 4
Brantford Cordage, 1st pref. (quar.)____
50o. Apr. 15 Holders of reo. Mar.20
Brennan Packing clime A (quar.)
*51 June 1 *Holders of reo. May 20
Class A (quar.)
•51 Sept. I *Holders of reo. Aug. 20
Class A (quar.)
4.51 Deo. 1 "Holders of reo. Nov.20
Class B (quar.)
•250. June 1 *Holders of reo. May 20
Class B (quar.)
•256. Sept. 1 "Holders of reo. Aug. 20
Class B (guar.)
•250. Dec. 1 *Holders of roe. Nov.20
Broadway Mkt. Corp.(Dn.),corn.
_ 1.400. Apr. 20 *Holders of reo. Apr. 1
Pre(erred
"40o. Apr. 10 *Holders of reo. Apr. 1
Briggs Mfg. (guar.)
37%c Apr. 25 Holders of reo. Apr. 10a
Extra
12%0 Apr. 25 Holders of reo. Apr. 10a
British Aluminum Ltd.
Apr. 7 "Holders of rec. Mar. 20
*rod
Am.dep.rms.for ord.reg.she
Broadway Market Corp.. corn.(quar.)__ *40c. Apr. 20 'Holders of rec. Apr. 1
Preferred (guar.)
•30o. Apr. 10 'Holders of reo. Apr. I
Brompton Pulp & Paper. corn,((Mar.)- - "250. Apr. 15 *Holders of rec. Mar. 31
$1
Buckeye Pipe Line (guar.)
June 15 Holders of rec. Apr. 27
Buffalo National Corp., Preferred
'1% Mar. 31 *Holders of reo. Mar. 25
Bunker 11111 & Sullivan Mining& Concentrating (guar.)
•250. Apr. 16 *Holders of reo. Mar.26
Burger Bras., 8% pref. (guar.)
*51 July 1 *Holders of rec. June 15
a% preferred (guar.)
•51 July 1 'Holders of rec. June 15
8% preferred (quar.)
*11 Oct. 1 'Holders of rec. Sept. 15
Bush Terminal Co.,cam.(quar.)
6234c May 1 Holders of reo. Apr. 36
Debenture stock (quar.)
1% Apr. 15 Holders of ree. Apr. 3a
Byers(A. M.) Co., pref. (quar.)
ti May
Holders of reo. Apr. 16a
Calaveras Cement. pref.(quar.)
Holders of reo. Mar. 31
14 Apr. 1
Canada Bud Breweries, corn. (quar,)..
250. Apr. 1 Holders of reo. Mar.31
Canada Dry Ginger Ale (quar,)
750. Apr. 1 Holders of rec. Apr. la
Canada Foundries & Fore.. cl. A (qu.). '37%o Apr. 1 *Holders of reo. Mar. 31
Canada Wire & Cable, class A (guar.)._ 51
June 1
Holders of rec. May 31
Class A (quar.)
Sept. 1
Holders of reo. Aug. 31
$1
Class A (quar.)
Dec. 1
Holders of roe. Nov. 30
$1
Canadian Car & Fdy., pref. (quar.)...
44e. Apr. 1 Holders of reo. Mar.25
Canadian Cottons, pref. (guar.)
Holders of rec. Mar.21
134 Apr.
Canadian Fairbanks-Morse Co., pf.(qu.) 134 Apr. 1
Holders of rec. Mar. 31
Canadian Industries, Ltd., corn.(quar.)_ '6234c Apr. 3 'Holders of rec. Mar. 31
Common (extra)
*25c. Apr. 3 "Holders of rec. Mar. 31
Preferred (quar.)
Holders of reo. Mar. 31
14 Apr. I
Canadian Pow.& Paper Invest., pf.(qu.) 1 34 May 1
Holders of rec. Apr. 20
Canadian Wineries, Ltd. (quar.)
12%c Apr. 1
Holders of reo Mar. 31
Carnation Co., pref.((Mar.)
*Holders of rec. June 20
•14 July
Preferred (quar.)
'Holders of rec. Sept. 20
•14 Oct.
•1% Jan 23 'Holders of reo. Dec. 21
Preferred (guar.)
Centrifugal Pipe (guar.)
Holders of rec. May 5
lbo. May I
150. Aug. 1
Quarterly
Holders of reo. Aug. 5
Quarterly
Holden' of reo. Nov 5
I5o. Nov.1
Apr. 2 Holders of reo. Mar. 17
Century Co
2
Century Co
Oct. 21
2
Century Ribbon Mills, pref. (quar.)... 1% June 1 Holders of rec. May 20a
Chapman ice Cream (quar.)
"31 tic Apr. 15 *Holders of rec. Mar. 25
Chatham Mfg.7% Pref.(qua?.)
•134 July 1 Holders of rec. June 20
7% preferred (quar.)
•I% Oct. 1 'Holders of reo. Sept. 20
6% preferred (quar.)
"1% Apr. 1 'Holders of reo. Mar. 20
6% preferred (quar.)
•134 July 1 'Holders of rec. June 20
'1% Oct. 1 *Holders of reo. Sept.20
6% Preferred (quar.)
Chicago Yellow Cab (monthly)
25c. May 1 Holders of rec. Apr. 200
Monthly
25o June 1 Holders of reo. May 20e
Churngold Corp.(quar.)
•350. May 15 'Holders of rec. May 1
Quarterly
•350. Aug. 15 *Holders of reo. Aug. 1
Quarterly
*350. Nov. 16 *Holders of rec. Nov. 1
Cincinnati Advertising Products (quar.) *75o. July 1 *Holders of rec. June 20
Quarterly
"75c. Oct. 1 "Holders of rec. Sept. 19
Quarterly
*75o. Jan 132 *Holders of reo. Dec. 19
•3
Cincinnati Land Shares
Sept. 15 'Holders of rec. Sept. 1
Cincinnati Rubber Mfg.,6% pref.(qu.)
June 15 'Holders of reo. June 1
6% preferred (quar.)
Sept. 15 'Holders of rec. Sept. 1
6% preferred (quar.)
•1 4 Dec. 15 *Holders of roe. Dec. 1
Cities Service, bankers' shares
•24.335o Apr. 16 *Holders of rec. Mar. 15
Cities Service common (monthly)
240. May I Holders of rec. Apr. 15a
Common (payable in common stock). _ f% May 1 Holders of reo. Apr. 15a
Preference B (monthly)
Sc. May 1 Holders of reo. Apr. 15a
Preference and pref. BB (monthly)--50o. May 1 Holders of rec. Apr. I5a
Cleveland Tractor Co.,com.(guar.).- - •20e. Apr. 15 "Holders of reo. Mar. 31
Coats(J.&P.)Ltd..Am.dep.reeta.ord.reg.
wild Apr. 6 'Holders of reo. Feb. 20
Coca Cola Bottling (quarterly)
25e. Apr. 15 Holders of rec. AM. 4
Quarterly
350. July 15 Holders of rec. July 3
25e. Oct 15 Holders of rec. Oct. 5
Quarterly
Cockshutt Plow, common (qUar.)
15o. May 1 Holders of reo. Apr. 15
Colgate-Palmolive-Peet Co.,corn.(qu.)- 624e Apr. 15 Holders of reo. Mar. 20a
Comml Discount (Los Aug.), pf. (qu.)_ •17%o Apr. 10 *Holders of rec. Apr. 1
.1% Apr. 15 "Holders of rec. Mar. 31
Consolidated Car Heating (quar.)
Consolidated Cigar Corp., pr. pf.(du.). 1% May 1 Holders of rec. Apr. tba
1.4 Moe 1 11antera of rec. Msy 15a
Preferred (wise).
Consolidated Laundries, pref.(guar.)- -- 31.875 May 1 Holders of rec. Apr. 15
'7%c. Apr. 25 *Holders of tee. Apr. 15
Consolidated Royalty Oil (guar.)
Creamery Package Mfg., oom.(quar.). *50e. Apr. 10 "Holders of reo. Apr. 1
.1% Apr. 10 'Holders of ree. Apr. I
Preferred (quar.)
Credit Utility Banking cl. B (quer.)- - - 3734c. Apr. 10 Holders of rec. Mar. 26
Creason Cons. Gold Silo.& Mill.(qu.)._ •lo. Apr. 10 *Holders of rec. Mar, 31
•75o Apr. 4 *Holders of rec. Mar. 21
Crowell Publishing (quar.)
250. Apr. 15 Holders of reo. Apr. 4
Crum & Forster, corn.(riar.)
2
June 30 Holders of reo. June 20
Preferred (quar.)
Apr. 15 Holders of ree. Apr. 30
Cudahy Packing, common (guar.)
$1
334 May 1 Holders of rec. Apr. 20
7% preferred (quar.)
3
May 1 Holders of reo. Apr. 20
6% Preferred ((Mar.)
600, May 2 Holders of reo. Apr. 20a
Curtis Publishing, own. (monthly)
$1.75 July 1 Holders of rec. June 20a
Preferred (quar.)
2531
FINANCIAL CHRONICLE
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Crunden-Martin Mfg
'334 Aug. 3 "Holders of reo. Aug. 3
Davidson Co.. Prof. (qua?.)
*134 July 1 *Holders of reo. June 20
•134 Oct. 1 'Holders of rec. Sept.20
Preferred (quar.)
•1% Jan V32 *Holders of rec. Dec. 20
Preferred (quar.)
Decker (Alfred) & Cairn, Prof.(qua?.).. ..
1 1% June I *Holders of rec. May 20
.4% Sept. 1 "Holders of reo. Aug. 20
Preferred (guar.)
Dennison Mfg., deb. stock (guar.)
2
May 1 Holders of rec. Apr. 18
Preferred (quar.)
1% May 1 Holders of reo. Apr. lb
Detrolt Motorbus
*15c. Apr. 15 *Holders of reo. Mar. 31
Or.Pepper Co., common (quar.)
300. June 1 Holders of rec. May 15
Common (quar.)
30o. Sept. 1 Holders of reo. Aug. 15
Common (quar.)
300, Doe. I Holders of reo. Nov. 15
Dome Mines, Ltd. (quar.)
25c. Apr. 20 Holders of rec. Mar. 310
uuminion Engineering Works (quar.)--60o. Apr. 15 Hotders of reo. Mar. 31
Dominion Tar & Chemical, prof. (a.). 1% May 1 Holders of rec. Apr. 6
Dominion Textile, preferred (quar.)-- *1% Apr. 15 "Holders of reo. Mar. 31
Douglas Aircraft
*50o. Apr. 20 'Holders of rec. Mar. 11
"250. Apr. 20 *Holders of rec. Mar. 11
Extra
Du Pont(E.I.) de Hem.& Co.
114 Apr. 25 Holders of rec. Apr. 10a
Debenture stock (quar.)
Eastern Dairies. Ltd.,common (qua?.)..
25e. May 1 Holders of reo. Mar. 25
Preferred (guar.)
'1% Apr. 15 'Holders of reo. Mar.31
Eastern Util. Invest., 57 pref.(quar.).. $1.75 June 1 Holders of rec. Apr. 30
$6 preferred (quar.)
51.50 June 1 Holders of rec. Apr. 30
21.25 July 1 Holders of rec. May 29
$5 prior pref. (guar.)
Participating pref. (quar.)
$1.75 May 1 Holders of rec. Mar. 31
Eaton Axle& Spring. corn.(quar.)
40o. May 1 Holders of rec. Apr. 150
Elec. Power Associates, oom.&ol.A(qu.).
25e. May 1 Holders of reo. Apr. 15
May 1 'Holders of rec. Apr. 15
Electrical Securities, pref.(quar.)
•1
Equitable Ti. Co. Inv. Trust (quar.)--- •10c. Apr. 10 'Holders of rec. Mar. 31
•60c. May 1 *Holders of rec. May 5
Ewa Plantation (guar.)
Federal Knitting Mills, corn.(qua?,)... •6314c May 1 *Holders of rec. Apr. 15
• 12%o. May 1 *Holders of rec. Apr. 15
Common (extra)
Federal Title & Mtge. Guar.(N•
- - •51.25 May 1 'Holders of rec. Apr. 211
200. Apr. 15 Holders of reo. Apr. 6a
Finance Co.of Arn.(Balt).ol. A & B (qu.)
Common class A & B (payable in comMay 15 Holders of rec. May 5
fl
mon class A stock)
43%c Apr. 15 Holders of reo. Apr. 6a
Preferred (quar.)
25c, Apr. 20 Holders of rec. Apr. 30
Firestone Tire & Rubber, corn. ((Var.)
Fishman (M.H.) Co., Inc., pf. A&B(qU) 1% Apr. 15 Holders of rec. Apr. 1
Food Machinery, common (quar.)
'3740 Apr. 1 *Holders of rect. Mar. 31
"50o. Apr. is "Holders of rec. Apr. 10
% preferred (montble)
11150o. May 1 *Holders of rec. May 10
634% preferred (monthly)
•50o. June 1 *Holders of rec. June 10
64% preferred (morithlY)
11.50o. July 1 'Holders of reo. July 10
64% Preferred (monthly)
614% preferred (monthly)
•50e. Aug IS 'Holders of rec. Aug. 10
0500. Sept. 15 "Holders of rec Sept. 10
64% Preferred (monthly).
Ford Motor, Ltd.. Amer. shares (extra) 12%c. May 1 Holders of rec. Apr. 15
Foreign Power Securities Corp., pf.(qu.) 1% May 15 Holders of reo. Apr. 30
Apr. 1 'Holders of rec. Mar. 31
Foulds Milling, pref.(quar.)
•2
25c. May 15 Holders of rec. Apr. 30
Foundation Co. of Canada ((Mar.)
Fox Film Corp., cont. A & B (quar.)_-__
51 Apr. 16 Holders of rect. Mar. 316
750 June 1 Holders of rec. May I5a
Freeport Texas Co.(quar.)
Gotland Mercantile Laundry (quar.)... •87%o June 1 "Holders of rec. May 15
Quarterly
*8734c Sept. 1 *Holders of reo. Aug. 15
Quarterly
"87140 Dec. 1 "Holders of roe. Nov. 15
400. Apr. 25 Holders of reo. Mar.13a
General Electric, common (quar.)
150. Apr. 25 Holders of reo. Mar.150
Special stook
General Foods, Corn. (attar.)
750. May 1 Holders of ree. Apr. 15a
$1.25 May 1 Holders of rec. Apr. 6.
General Motors. $5 pref. (guar.)
General Parts, prof. (quar.)
•300. May 1 'Holders of rec. Apr. 20
Apr. 15 Holders or rec. Mar. 206
General Realty & Utilities. $O pref.(qu.) (1)
•65o.
July 1 *Holders of rec. June 20
Gibson Art Co., common quar.)
*850. Oct. 1 'Holders of rec. Sept. 19
Common (guar.)
•65o. Janl'32 "Holders of rec. Dec. 19
Common (quar.)
lt May 1 Holders of rec. Apr. la
Gillette Safety Razor. cony. Pref.(qua?.)
Gilman Gasoline Plant No. 1 (mthly.)-- •200. Mar. 25'Holders of rec. Mar. 22
I% May 1 Holders of reo. Apr. 150
Gimbel Bros., Inc., pref. (quar.)
•25o. Apr. 15'Holders of reo. Apr. 1
Globe Discount & Fin. (quar.)
"350. July 25 'Holders of reo. July 7
umbe Knitting Works. pref
Globe Underwriters Exchange
15o. May 1 Holders of reo. Apr. 15
'134 Apr. 15 'Holders of rec. Mar.31
Globe-Wernicke Co.. pro!.(War.)
Globe-Wernicke Realty, 6% prof. (qu.). '1% Apr. 15 *Holders of rec. Mar. 31
6214o. May 1 Holders of rec. Apr. 106
Gold Dust Corp.. corn.(quar.)
Gotham Silk Hosiery, pref.(quar.)
154 May 1 Holders of reo. Apr. 10a
50c. May 1 Holders of rec. Apr. 21a
Pow.
Granby Consol. Min., Elm &
(qu.)
•406. July 31
Grant (Amen Corp.. 00In
Great Lakes Engineering. coin. (quar.). •250. May 1 'Holders of rec. Apr. 24
• 282-30 May 15
Hamilton Loan Society (Pa.). nom
•10o. May 15
Common (extra)
15o, Apr. 30 Holders of rec. Apr. 100
Hamilton Watch,common (monthly).Apr. 20 Holders of rec. A. 1011
Harbison-Walker Refract.. Prof. (guar.) 1
May 29 *Holders of ree. May 14
Hart, Schaffner Ile Marx. COM.(quar.)-.
Aug. 31 "Holder, of rec. Aug. 15
"1
Common (quar.)
•1
Aloe. 30 *Holders of rec. Nov. 14
Common (quar.)
Hercules Powder, pref.(quar.)
134 May 15 Holders of rec. May 40
*51.25 May 15 *Holders of rec. Apr. 25
Hershey-Chocolate, common (qua?.)
May 15 'Holders of rec. Apr. 25
•51
Convertible preferred (quar.)
250. Apr. 24 Holders of rec. Apr. 17
Hibbard Spencer Bartlett & Co.(mthly.)
Slim'May 27 Holcler• of roe Mar. 21)
Monthly
25e. May 29 Holders of ree. May 22
Monthly
25e. June 26 Holders of rec. June 19
Monthly
1% May 1 Apr. 21 to May 1
Higbee Co., let pref. (quar.)
1.
• Mu II Holders of me Ma 31
Hibernia Colileries. pre' (quar.)
•2140 Apr. 15 *Holders of reo. Mar. 31
Holly Development (quar.)
Horn & Hardart(N. Y.). eem• (qua?.).. 6234c May 1 Holders of reo. Apr. 100
90c. Apr. 15 Holders of ree. Slur. 31a
Household Fin. Corp.. corn. A&B (qu.).
VI
Apr, 15 Holders of rec. Mar. 31a
Participating pref. (quar.)
75e, Apr, 15 Holders of roe.afsr. 3Ia
Howe Sound Co.(quar.)
•1% July
'Holders of rec. June 20
Howes Bros., 7% preferred (quar.)
•1% Oct.
*Holders of rec. Sept. 20
7% preferred (quar.)
•1% Dec. 3 'Holders of rec. Dec. 20
7% Preferred (guar.)
'Holders of rec. June 20
6% preferred (quar.)
'14 July
"Holders of roe. Sept.20
•1% Oct.
6% Preferred (quar.)
. .
6% preferred Omar
'134 Dec. 3 *Holders of rec. Dec. 20
Hungarian Gen,Say. Bk.(Budapest)Holders of rec. Apr. 6
$5.21 Apr. 1
American shares
minute Brick (Qom.)
•30e. Apr. i "Holders of ice. Apt 3
•30e. July 1 "Holders of rec. July 3
Quarterly
A
•30e. net 1 'Holders of ree. Oct
Quarterly
'Holders of rec. June 20
Imperial Sugar, $7 pref.(guar.)
•51.75 July
*Holders of rec. Sept. 20
$7 preferred (guar.)
•$1.75 Oct.
•$1.75 Janl 3 *Holders of rec. Dec. 20
$7 preferred (guar.)
Incorporated Investors (quar.)
•250. Apr. 1 "Holders of roe. Mar. 28
Stook dividend
'2% Apr, 1 "Holders of reo. Mar. 23
Stock dividend
'234 Oct. 1 *Holders of rec. Sept. 21
Holders of reo. Apr. 24
Indiana Pipe Line ((Mar.)
250. May 1
Industrial ar Power Securities (quar.)
*250. June 1 *Holders of rec. May 1
Quarterly
*250. Sept. 1 *Holders of tee. Aug. 1
Quarterly
"25c. Dec. 1 'Holders of rec. Nov. 1
014
Apr. 15 Holders of rec. Mar. 14
Insull Utility Invest.. corn. (gnarl
Insurance Securities Co., Inc. (quar.)___
134 Apr. 15 Holders of rec. Star. 31
Insurarishares Corp. (Del.). $3 pref.-- *520. Apr. 15 *Holders of reo. Mar. 31
intermit Busines. Mat:Minot. latiar.1_-_. 51.50 Apr. 10 Holders of rec. Mar.20a
International Harvester. corn. (guar.) - 1124e Apr. II Holders of re0. Mar. 206
Apr. 15 Holders of reo. Mar.25a
Internat. Match,corn.(guar.)
$I
Apr. 15 Holders of IVO. Mar,256
51
Participating preference (guar.)
Internat. Nickel of Canada, pref.(guar.) 151 May 1 Holders of rec. Apr. la
Internat. Paper Co., 7% pref. (quar.)_
134 Apr. 15 Holders of rec. Apr. 4a
6% preferred (qua?.)
1% Apr. 15 Holders of rec. Apr. 4
Internat. Paper & Power,7% pf.(qu.).. 1% Apr. 15 Holders of rec. Apr. 4a
6% preferred (quar.)
134 Apr. 15 Holders of rec. Apr. 4
134 May 1 Holders of rec. Apr. 15a
Internat. Printing Ink., pref. (quar.)_ _ _
International Shoe, pref. (monthly)-- -- *50c. May 1 *Holders of rec. Apr. 15
•60e June 1 "Holders of roe May 16
Pysfetyea (ram:ital.
Investment Foundation, Ltd., pref.(qu.) 37%o. Apr. 15 Holders of tee. afar. 3
Investment Trust Associates. corn. (qu.) 1234o. May 1 Holders of rec. Apr. 15
Ivanhoe Foods, Inc., $3.50 Pref. (qu.)-- "87140 July 1 'Holders of ree. June 20
Apr. 15 Holders of rec. Apr. i a
Jewel Tea !no., corn. Moat.
$1
Johns-Manville Corp.. oom (guar.). __756. Apr. 15 Holders of reo. Mar. 25a
25o. Apr. 28 Holders of ree. Apr. 10a
Kaufmann Dept. Stores, oom. (quar.).
When
Per
Cent. Payable
Name of Compass,.
Books Clam.
Days Inclustre.
Miscellaneous (Continued).
Kalamazoo Vegetable Parchment(qu.)
•15o. June 30 *Holders of reo. June 20
"15e. Sept.30 *Holders of rec. Sept. 19
Quarterly
•15c. Deo. 31 'Holders of rec. Dec. 21
Quarterly
15e. Apr. 15 Holders of reo. Apr. 1
Baybee Stores, Inn.. corn. (Qua?.)
Kelsey Hayes Wheel, pref. ser. K-H(qu.) 1% May 1 Holders of rec. Apr. 20
15( May 1 Holders of rec. Apr. 20
Preferred series W-W (quar.)
.75c. July 1 'Holders of reo. June 20
Kemper-Thomas Co.. corn. (guar.).Common (guar.)
•75c. Oct. 1 *Holders of reo. Sept. 20
•75e. J'n 132 'Holders of reo. Dec. 20
Common (guar.)
•I% June 1 -Holders of ree Hay 20
Preferred (guar.)
•1% Sept. 1 "Holders of reo. Aug. 20
Preferred «i uur.)
Preferred (quar.)
% Dec. 1 *Holders of rec. Nov 20
Apr. 15 *Holders of reo. Mar. 31
Keystone Steel & Wire, Pref. (quar.)-Knott Corp.. common (guar.)
.25e Apr. 15 *Holders of rec. Mar. 30
Knudsen Creamery, class A & B (quar.) *371iC May 20'Holders of rec. Apr. 30
Land Title Bldg. Corp, Phila
June 30'Holders of rec. June 13
$1
Landis Machine common (quar.)
750 May 15 Holders of reo. May 5
Common (guar.)
75c. Aug. 15 Holders of rec. Aug. 5
Common (guar.)
75c. Nov. 15 Holders of reo. Nov.
Preferred (guar.)
•114 June 15 *Holders of roe. June I,
Preferred (guar.)
"1% Sept. 15 *Holders of reo. Sept. b
el% Dec. 15 *Holders of rec. Dee. •
Preferred (quar.)
Lane Bryant. Inc., pref. (quar.)
1% May 1 Holders of rec. Apr. 15
Langendorf United Bakeries, Cl. A (qu.) '500. Apr. 15 *Holders of rec. Mar. 31
Larus & Bro. Co.. preferred (quar.)---- *2
July I *Holders of reo. June 24
Oct. 1 *Holders of rea. Sept.23
Preferred (quar.)
Lawbeck Corp., $6 pref. (quar.)
41.50 May 1 *Holders of rec. Apr. 20
Lehigh Portland Cement. cora. (quar.)...
25o. May 1 Holders of reo. Apr. 14a
Lincoln Telephone Securities. ol. A (qu.) *50c. Apr. 10 *Holders of reo. Mar.31
Class B ((Mar.)
*250. Apr. 10 *Holders of reo. Mar.31
*1% Apr. 10 *Holders of reo. Mar. 31
Preferred (guar.)
Link Belt Co.. corn. (guar.)
600. June 1 Holders of reo. May 15a
Liquid Carbonic Corp. (puler.)
*75c. May 1 *Holders of reo. Apr. 20
Lock Joint Pipe Co.. pref.(quar.)
*2
July 1 °Holders of rec. July 1
Preferred (quar.)
*2
Oct. 1 *Holders of reo. Oct. I
Preferred (quar.L,
Dec. 31 *Holders of rec. Dee. 31
*2
Loose-Wlles Biscuit, common (quar.)
650. May 1 Holders of rec. Apr. 18a
Common (extra)
10o. May I Holders of reo. Apr. 18o
Lord & Taylor. 2nd prof. (quar.)
2
May 1 Holders of reo. Apr. 17a
•154 July 1 *Holders of rec. June 20
Lunkenheimer Co.. prof. (qua?.)
al%
*Holders Of rec. Sept-21
Preferred (guar.)
Preferred (guar.)
*154 Jan 1'82 'Holders of roe. Dee. 22
50o. Apr. 15 Holders of reo. Mar. 31a
MacAndrews & Forbes, corn. (quar.).
Preferred ((Mar.)
134 Apr. 15 Holders of reo. Mar. 310
1% May 1 Holders of rec. Apr. 15
MacKinnon Steel Corp., pref. (guar.)._
Mary (R. H.) & Co.. common (quar.)
75c. May 15 Holders of reo. Apr. 245
Madison Square Garden Co.. corn.(qu.).
15o. Apr. 16 Holders of reo. Apr. 6a
Holders of rec. Mar. 310
Magma Copper Co. (guar.)
50c. Apr.
Magnin (I.) & Co.. corn.((Man)
*3734c Apr. lb *Holders of reo. Mar. 31
•13t May If Holders of rec. May 6
6% preferred ((mar.)
•134 Aug. It *Holders of roe. Aug. 5
6% preferred (quar.)
•1% Nov. 16 *Holders of rec. Nov.
6% Preferred (quar.)
Mahon (B.. C.) Co., cony. pref.(guar.). •550 Apr. 15 *Holders of rec. Mar.3
Marathon Razor Blade. Inc.(monthly) •314o Apr. 16 *Holders of roe. Apr.
Monthly
•3140 May 16 *Holders of rec. May
Monthly
•314c June lb *Holders of rec. June
Monthly
•314c July 11 *Holders of ree. July
Monthly
•314e Aug. IL *Holders of rec. Aug.
Monthly
.3.1$c Sept IL *Holders of rec. Sept.
Monthly
*334c Oct. 16 *Holders of rec. Oct.
Monthly
•314c Nov. If *Holders of rec. Noy.
•334. Dec. If *Holders of roe. Dec
Monthly
Maryland Commercial Banker!, pre!
•350 Apr. la *Holders of reo. Mar.3
Maxweld Corp., corn. (guar.)
.0100. Apr. 15 *Holders of rec. Apr.
*150 Apr. 15 *Holders of rec. Apr.
Preferred (quar.)
,
Holders of rec. Apr. 20
McCall Corp.. corn. (quar.)
62%i May
McColl-Frontenae 00, pref.(quar.)
134 kpr. 11 Holders of rec. Mar. 3
14 May 1 Holders of rec. Apr. 20a
McCrory Stores, prof. (quar.)
•25c Apr. 15 *Holders of reo. Apr.
Mead Corp.. corn. (quar.)
Apr. 15 *Holders of reo. Apr. 1
Common (payable In common stock)
•1
July I Holders of reo. June 17
2
Meek Corp.. preferred (guar.)
Apr. 20 Holders of reo. Mar. 31a
Mexican Petroleum. common (quar.)_
3
Apr. 20 Holders of reo. Mar. 310
2
Preferred (quar.)
Idlokelberrys Food ProductsCommon (payable in corn. stock)._ _ _ Sf234 May II *Holders of reo. May 1
Common (payable in corn.
*12% Aug. 11 *Holders of reo. Aug. 1
Common (payable In eon). stock). . */2% Nov. If *Holders of rec. Nov 2
25, Apr. lb Holders of rec. Mar. 31
Mitchell (Robt.) & Co.. oom.(quar.) _
Monarch Mtge. & Invest.. Pref. (quar.) •20e Apr. lb *Holders of reo. Mar.30
Morris (Philip) & Co., Ltd., Inc. (qua?.) 25c Apr. It Holders of reo. Apr. 2a
•lo Apr. If *Holders of rec. Mar. 31
Mountain & Gulf 011 (Qum.)
Apr. lb 'Holders of reo. Apr. 9
Nash (A) Co., Inc. (Misr.)
*2
National Acme Co. (quar.)
520c May 1 *Holders of rec. Apr. 15
National Battery Co.. corn. (guar.).- 65e Apr. 6 Holders of rec. Mar. 17
National Biscuit. coin (guar.)
fOe tor. I. Holders of roe. Mar. 200
\lay 1 Holders of reo. Apr. 20
National Carbon, preferred (War.)
May 16 *Holders of reo. May I
National Casket, common
National Distillers Prod.. corn.(quar.)-50c May 1 Holders of rec. Apr. 15a
National Fireproofing. prof. (guar.)--75c Apr. 15 Holders of rec. Mar.31
.5,
%or. li *Holders of rec. Mar. 31
Nat'l Industrial Loan Corp., monthly__
May 1 Holders of rec. Apr. 17a
NationalLead, pref. B (quar.)
NatOroas Co
•$2.51 Apr. it *Holders of reo. Apr. 1
*Holders of rec. May 20
Neiman-Marcus Co., prof. (quar.)
•1% lune
Preferred (quar.)
*pt. 1 *Holders of reo. Aug. 20
•1% Om 1 "Holders of rec. Nov. 20
Preferred (qua?.)
Neptune Meter, pref. (queer.)
2
May 1 Holders of reo. May is
2
tug. 1 Holders of res. Aug. le
Preferred (guar.)
lov. I. Holders of reo. Nov. le
2
Preferred (guar.)
*70 Apr. 1 *Holders of rec. Mar. 31
New Bradford Oil (quar.)
New England Grain Prod.
Aug.
*Holders of reo. July 14
Corn.(1-100 share in pref. A stook) -Feb1.3 "Hold,of reo. Jan. 14'32
Corn.(1-100 share In pref. A stock) -•81.71 July
*Holders of reo. June 20
$7 Preferred (qua?.)
•81.76 Oct.
*Holders of reo. Sept. 20
$7 preferred (quar.)
•81.75 Jan2'3 *Holders of res. Doe. 20
$7 preferred ((Na?.)
41.50 Apr. 1 'Holders of res. Apr. 1
Preferred A (quar.)
111.50 July 1 *Holders of rec. July 1
Preferred A (quar.)
•$1.50 Oct. 1 *Holders of reo. Oct. I
Preferred A (quar.)
•$1.50 Ja 15'3 *Hold, of reo. Jan. 2'32
Preferred A (quar.)
50c May
Holders of reo. Apr. 20a
New Jersey Zino (guar.)
40e. May
Holders of reo. Apr. 7a
New York Air Brake. corn.(Var.)
250 Apr. 1 Holders of reo. Mar.20
New York Transit (qua?.)
'134 Apr. 1 'Holders of rec. Apr. 1
Newhall Buildings Trust. prof.(quar.)
*IX Apr. 1 *Holders of rec. Mar.31
Newborns Petroleum (guar.)
kor. I
Holders of rec. Mar.31
$1
Newmont Mining corp. (guar.)
10o Apr. 1 Holders of reo. Mar. 25
Niagara Share Corp.. corn.(Var.)
.50c May 1 *Holders of rec. May 1
Nineteen Hundred Corp., ol. A (qua?.)
*506 Aug. 1 *Holders of reo. Aug. 1
Class A (quar.)
150c Nov 1 'Holders of reo. Nov. 1
Clam A (quar.)
7%c. Apr. 2 Holders of rec. Mar. 31
NipIssing Mines (quar.)
North Amer. Invest. Corp.,6% pfd.(au) '134 Apr. 2 "Holders of rec. Mar. 31
5.54% preferred (qua?.)
'134 Apr. 2 *Holders of reo. Mar. 31
*Holders of rec. Apr. 15
Northern Discount, pref. A (mthly.)--* 66 2-3c May
•662-3c June
*Holders of rec. May 15
Preferred A (monthly)
*Holders of reo. June 15
68 2-3c July
Preferred A (monthly)
*Holders of reo. July 15
662-3 Aug.
Preferred A (monthly)
662-3e Sept. *Holders of rec. Aug. 15
Preferred A (monthly)
*Holders of rec. Sept. 15
667-3e' Oct.
Preferred A (monthly)
66 2-3c Nov. 1 *Holders of rec. Oct. 15
Preferred A (monthly)
662-3e Dec. 1 *Holders of rec. Nov. 15
Preferred A (monthly)
662-3e Janl'32 *Holders of reo. Dee. 15
Preferred A (monthly)
May
*Holders of rec Apr. 15
Preferred C (monthly)
*Holders of rec. May 15
June
Preferred C (monthly)
.1
'Holders of roe. June 15
July
Preferred C (monthly)
.1
*Holders of rec. July 15
Aug.
Preferred C (monthly)
.1
Sept.
*Holders of reo. Aug. 15
Preferred C (monthly)
01
*Holders of reo. Sept.15
Preferred C (monthly)
Oct.
01
*Holders of roe. Oct. 15
Preferred C (monthly)
Nov.
Preferred C (monthly)
*Holders of rec. Nov. 15
Doe.
*1
Preferred C (monthly)
J'n 1'32 *Holders of reo. Doe. 15
Northwest Engineering (quar.)
•50e May 1 *Holders of roe. Apr. 15
[vol.. 132.
FINANCIAL CHRONICLE
2532
•
•
•
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (floaf(nued)•
*16c. Apr. 15 "Holders of rec. Apr. 12
Oahu By.& Land (monthly)
$1.25 Apr. 15 Holders of rec. Mar. 31
Ohio Brass, class A & B (quar.)
1;4 Apr. 15 Holders of rec. Mar.31
Preferred (quar.)
Oilroyalty Invest., Inc., pref. (mthly.)-- *10e. Apr. 15 'Holders of rect. Mar. 31
uncurl° Tobacco Plantations, Prof.(qu.) 1
July
Oct.
1
Preferred (quarterly)
Jan.'32
Preferred (quarterly)
1
Otis Elevator, corn. (quar.)
6234e Apr. 15 Holders of rec. Mar. 31a
115 Apr. 15 Holders of rec. Mar. 31a
Preferred ((Mar.)
Packard Electric Co., corn. (quar.)
250. Apr, 15 Holders of reo. Mar. 31
embody Engineering. Prof. (guar.).
•144 June 30 *Holders of rec. June 30
Preferred (guar.)
'If' Sept.30 *fielders of rec. Sept .20
•1
Dec. 31 *Holders of rec. Dec. 30
Preferred ((litter.)
Peck Bros.& Co., pref.(quar.)
*3734c Apr. 10 *Holders of reo. Mar. 31
eenmans, Ltd., common (quar.)
May 15 Holders of rec. May 5
$1
14 May 1 Holders of rec. Apr. 21
Preferred (guar.)
Pennsylvania Salt Mfg.(quar.)
75e. Apr, 15 Holders of rec. Mar. 31
*25c. Apr. 15 *Holders of reo. Mar. 31
Petroleum Landowners (monthly)
Phoenix Finance Corp., pref. (quar.)
*50o. Apr. 10'Holders of rec. Mar. 21
*50e. July 10 *Holders of rec. June 30
Preferred (guar.)
•500. Oct. 10 *Holders of rec. Sept. 30
Preferred (guar.)
*50e. Jn10'32 *Holders of rec. Dec. 31
Preferred (guar.)
$3.13 Apr.d10 Holders of rec. Apr. d3
Pirelli of Italy. Amer.shares
"25e. Apr. 25 *Holders of rec. Apr. 15
Pittsburgh Forging,(quar.)
35e. Apr. 15 Holders of rec. Mar. 270
Pittsburgh Screw dr Bolt (queer.)
•25c. Apr. 30 *Holders of roe. Apr. 15
Plymouth Oil Co
Porto Wean Amer. Tobacco, el. A (tlu.) 873.Sc Apr. 10 Holders of rec. Mar. 200
3o Apr, 4 Holders of rec. Mar. 13
Premier Gold Mines ((Mar.)
1834c Apr. 15 Holders of rec. Apr. 1
Premier Shares Inc. (Muir.)
Apr. 15 Holders of rec. Mar. 25a
Procter & Gamble,8% pref.(quar.).. 2
•$1
Apr. 15 *Holders of rec. Apr. 1
Quaker Oats, common (guar.)
ili$3
Apr. 15 'Holders of reo. Apr. 1
Common (extra)
*114 May 29 *Holders of reo. May 2
Preferred (guar.)
Real Silk Hosiery MillsCorn.(quar.) (Payable in corn.stook)- of234 July 1 Holders of reo. June 19a
Com.(quar.) (payable in core. stock). 1234 Oct. 1 Holders of rec. Sept. lfio
Corn. (quar.)(payable In corn. stook)- of215 Jan r32 Holders of rec. Deo. 18a
40e. Apr. 10 Holders of reo. Apr. 1
Republic Stamping At Enamel, com.(qu.)
76e. Apr. 16 Holders of res. Apr. 1
Republio Supply Co.(Gum)
no. July 15 Holders of res. July 1
Quarterly
784. Oct. 15 Holders of rec. Oat. 1
Quarterly
If'
May 1 Holders of rec. Apr. 10a
Revere Copper & Brass. pref. (guar.).
*624c May 1 'Holders of rec. Apr. 15
Roos Bros., oom. (quar.)
• 81.625 May 1 'Holders of rec. Apr. 15
Preferred (guar.)
25e. Apr. 15 Holders of rec. Mar. 31
St. Lawrence Corp., pref. A (quar.)
76c. Apr. 15 Holders of rec. Mar. 31
St. Lawrence Paper Mills,6% pf.(qu.).
Sept. 1 *Holders of rec. Aug. 15
Saranac Pulp ds Paper, stock dividend.. .e5
94 May 16 *Holders of rec. May 1
Savage Arms, second pref.(quar.)
Schnebbe Fire Prams. Eng., corn. (cm.). '12340 Apr. 15 *Holders of rec. Apr. 1
*60e. Apr. 15 'Holders of rec. Apr, 1
Class A (quar.)
*750. Apr. 15 *Holden) of rec. Apr. 1
53 preferred (quar.)
Schumacher Wall Board, partio. Df. (1111.) •500. May 15 *Holders of reo. May 5
1% May 1 Holders of rec. Apr. 160
Scott Paper, pref. A (guar.)
Preferred B (guar.)
134 May 1 Holders of rec. Apr. 16a
Seaboard Utilities Shares Corp.(quar.)- 121.5c May 1 Holders of reo. Apr. la
Seagrave Corp., common (quar.)
150. Apr. lb Holders of reo. Mar. 31a
Sears, Roebuck & Co.. corn.(quar.)... 6234c May 1 Holders of rec. Apr. d8a
May 1 Holders of rec. Apr. 80
Common(payable In corn. stock)_ - 11
Seeman Brothers, Inc.. corn.(fluar.)
•75o. May 1 *Holders of reo. Apr. 15
shattuck (F. (1.) Co. (quar.)
2.50 Apr. 10 Holders of reo. Mar. 20a
Shenandoah Corp., cony. pref. (quar.)
(q) May 1 Holders of Teo. Apr. 4
sheaffey (W. A.) Pen Co., common_ _ *Si
Sept 11 'Holders of reo. Sept. I
Preferred (guar.)
Apr. 20 *Holders of rec. Mar.80
*2
Preferred (qua?.)
*2
July 20 *Holders of reo. June 30
Preferred (altar.)
Oct. 20 "Holders of rec. Sept .30
Shevlin Carpenter & Ilium. pref. (qu.)._ •134 Apr. 16 "Holders of reo. Mar. 31
Sigmode Steel Strapping, pref. (quar.)- •6215e Apr. 15 *Holders of reo. Mar. 30
Simpson (Robert) Co
3
May 1 Apr. 16 to Apr. 30
Sinclair Consol. 011 Corp.. oom.(quar.)25o. Apr. 15 Holders of reo. Mar. 18a
134 May 1 Holders of reo. Apr. la
Skelly 011, pref. (quar.)
S. NI. A. Corp., corn.(pay. In corn. stk.) *.f10 Apr. 15
Sorg (Paul A.)Paper Co., pref.(quar.).. •114 July 1 *Holders of rec. June lb
Southern Franklin Process, pref. (qu.)-- •1% Apr. 10 *Holders of rec. Mar. 31
Moe Apr. 14 Holders of rec. Mar. 310
Spalding (A. G.) & Bos.. corn. (quar.)-.
75e. Apr. 15 Holders of reo. Apr. 3a
Spicer Mfg.. preferred (quar.)
Standard Coosa Thatcher. Prof. (Guar.). •144 Apr. II 'Holder, of roe. Apr 15
13
Apr. 15 Holders of rec. Mar. 31
Standard Oil (Ohio), 5% Pref. (quar.)- Standard Wholesale Phosphate & Acid
*30e. Apr. 15 'Holders of reo. Mar.30
Works (rimer.)
Steel Co.of Canada,corn.& prof. (qua?.) 4334 c May 1 Holders of reo. Apr. 7
*43%c June 30 *Holders of rec. June 15
Stix Baer dr Fuller, pref.(Mar.)
•4364c Sept.30'Holders of reo. Sept. lb
Preferred (quar.)
•4354c Deo. 31 *Holders of reo. Doe. 15
Preferred (glint.)
75e Apr. It Holders of rec. Mar. 17a
Stone & Webster, Inc. (guar.)
•elyi Apr. 15 *Holders of rec. Mar. 25
Sunray 011 Corp.(stook dividend)
62%c. Apr. 15 Holders of rec. Apr. 4a
Superheater Co. (quar.)
25c. May 1 Holders of ree. Apr. lba
Sweets Co.of Amer.(qua?.)
350 May 1 Holders of rec. Apr. 15a
Telautograph Corp. (quar.)
25o. Apr. 15 Holders of roe. Mar. 25
Telephone Bond & Share, corn. A (extra)
$1
Apr. 15 Holders of rec. Mar. 25
Preferred (quar.)
Tennessee Products Corp., men. (guar.) •25e. Apr. tn 'Holders of roe. Mar. 31
•51
Apr. 10 *Holders of reo. Mar.31
Preferred (quar.)
900. May 15 Holders of rec. May 5a
Thatcher Manufacturing, pref.(guar.)
ehomson-Gibn Elec. Weld., cl. A (N0.1 .50o viay I "Holders of rec.' Apr. 21
Tooke Bros., Ltd., preferred ((Mar.).- 134 Apr, 15 Holders of rec. Mar. 31
Toronto Elevators, Ltd., 7% Prof.(flu') "134 Apr. 15 'Holders of rec. Apr. 1
250. Apr. 25 Holders of reo. Apr. 4o
Transamerica Corp. (quar.)
75c. May I Holders of rec. Apr. 15
TH.-Utilities Corp.. $3 cum. pref. (qu.)-$1.5) May 1 Holders of ree. Apr. 15
$6 preferred (guar.)
30c Apr, 16 Holders of rec. Mar. 26e
Truscon Steel, common (guar.)
1% Apr. 15 Holders of rec. Mar. 31
Tuoketts Tobacco. pref. (quar.)
Twenty Wacker Drive Bldg., prof. (qU.) *81.50 Apr. 15 *Holders of rec. Mar. 31
400. Apr. lb Holders of reo. Apr. in
Ulen & Co., cam.(quar.)
15 June 1 Holders of reo. May ltla
United Biscuit of Amer.(quar.)
1%
May 1 Holders of rec. Apr. 16a
Preferred (quar.)
134 May I Holders of res. Apr. 100
United Cigar Storrs o Amer.. prof. Ulu
134 tug. I Holders of res. July 100
Preferred (quar.)
14 Nov. 2 Holders of rec. nct 9a
Preferred (qua?.)
United Finance & Realty Trust (guar.) •114 Apr. 10 *Holders of reo. Mar. 31
," May 1 *Holders of rec. Apr. 10
United Ohio Utilities,6% pr. pref.(qu.). *I t,
60e. May 1 Holders of reo. Apr. 16s
United Piece Dye Works,corn.(quit.)
50o. Aug. 1 Holders of res. July 15a
Common (quar.)
50e. Nov. 1 Holders of reo. Oct. 150
Common (Qum.)
134 July 1 Holders of reo. .1111113 204
Preferred (quar.)
1 Holders of roc. Sept.19a
Oct.14
Preferred (quar.)
144 Jan1'32 Holders of ree. floe. 19a
Preferred (quar.)
500. Apr. 30 Holders of rec. Mar. 31a
United Profit Sharing. preferred
United Retail Chemists. prof. (guar.).- "8734c Apr. 15 'Holders of rec. Mar. 27
Apr. 10 Holders of rec. Mar. 23
2
United Securities, Ltd.(annual)
6214c Apr. 6 Holders of rec. Mar. 17
United Shoe Mach.,00112.(Guar.)
3714c Apr. 6 Holders of reo. Mar. 17
Preferred (guar.)
50o. May 1 Holders of reo. Apr. 2a
United Verde Extension Mining
U.S.& British Internat. Co.00m. A (qu.) 12 He. May 1 Holders of reo. Apr. 15
750. May 1 Holders of reo. Apr. 15
$3 Preferred ((Mar.)
U.S.& For.Secure. Corp. 1st pt.(qu.)_ _ $1.50 May 1 Holders of roe. Apr. lba
U. S. Radiator Corp., pref. (quar.).- - - "114 Apr. 15 *Holders of rec. Mar. 31
250. Apr. 15 Holders of rec. Apr. 2a
U.S. Smelt. Ref. & Min., Com. (quar.).
8715c Apr. 15 Holders of rec. Apr. 2a
Preferred (quar.)
60c. Apr, 20 Holders of roe. Mar.31a
United States Plpe & Fdy.. corn.(qu.)..
b0c. July 20 Holders of rec. June MM
Common(quar.)
50c. Oct. 20 Holders of reo. Sept. Wo
Common (quar.)
50e jo20'32 Holders of reo. Dec. 31a
Common (quar.)
First preferred (guar.)
30c. Apr. 20 Holders of rec. Mar.
30c. July 20 Holders of rec. June 30a
First preferred (guar.)
First preferred (quar.)
30e. Oct. 20 Holders of rec. Sept. 308
30c. in20'32 Holders of roe. Dee. 314
First preferred (quar.)
75o. May 1 Holders of reo. Apr. 170
Universal Lea/'rob., coin.(Var.)
10o. May 1 Holders of reo. Apr. 1
Utilities Hydro & Rails Shares (guar.)._
•134 June 10'Holders of roe. June I
Vapor Car Heating, Prof. (guar.)
•154 Sept. 10 *Holders of roe. Sept. I
Preferred (guar.)
el% Dee. 10 *Holders of rec. Dee. 1
Preferred (Var.)
APRIL 4 19311
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Name of Company.
Miscellaneous (Concluded).
Vickers, Ltd., Am.dep. rcts. ord. reg.-Vulcan DetInning, corn. (oune.)
Preferred (guar.)
Wallace Sand Quarries, prof
Waltham Watch,6% Prof. (guar.)
6% preferred (guar.)
Prior preferred (guar.)
Warner Co., common (quar.)
West Coast Oil, pref (Wier )
West Va. Pulp & Paper,6% pref.(q11.)-6% preferred (guar.)
6% preferred (guar.)
Western Grocers (Canada) prof.((VaraWestern Newspaper Union, pref.(qu.)
Western Tablet & Stat.. cum.(guar.)._
Westinghouse Air Brake Hoar.)
Westinghouse El. dc mtg., corn. (qua?.)
Preferred guar.)
Will & Baumer Candle, corn. (guar.) —
Preferred (guar.)
Will-Low Cafeterias, pref. guar.)
Winsted Hosiery. corn. (qua?.)
Common (guar.)
Common (guar.)
Worthington Ball, class A (guar.)
Wrigley (Wm.) Jr. Co.(monthly)
Monthly
Monthly
Wurlitzer (Rudolph), pret (guar.) __
Books Closets.
Days Inclutist.
Apr. 10 *Holders of rec. Mar. 24
11
Apr. 211 Holders of rec. Apr. fa
19( Apr. 20 Holders of rec. Apr 71
•j.
Apr. 15 *Holders of rec. Mar.20
July 1 *Holders of roe. June 22
Oct. 1 *Holden of rec. Sept.21
Apr. 13 Holders of rec. Apr. 6
Apr. 15 Holders of reo. Mar.81
Apr 6 "Holders of rec Mar 28
May 15 Holders of rec. May 1
Aug. 15 Holders of rec. Aug. 1
Nov. 16 Holders of rec. Nov. 2
Apr. 15 Holders of rec. Mat.20
May 1 *Holders of rec. Apr. 15
•50e. May 1 *Holders of rec. Apr. 20
50c. Apr. 30 Holders of rec. Mar. 31a
El
Apr. 30 Holders of rec. Apr. 6a
$1
Apr. 30 Holders of rec. Apr. 6a
10e. May 15 Holders of rec. May 1
2
July I Holders of rec. June 15
SI
May 1 Holders of rec. Apr. 200
.414 May 1 "Holders of reo. Apr. 15
'214 Aug. 1 *Holders of ree. July 15
02M Nov. 1 *Holders of rec. Oct. 15
•50e. Apr. 15 *Holders of rec. Mar. 31
25c. May 1 Holders of rec. Apr. 20
50e. June 1 Holders of rec. May 20
25c. July 1 Holders of rec. June 20
•1M July 1 *Holders of rec. June 20
2533
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly to the Association and the returns of these two banks
are therefore no longer shown below. The following are
the figures for the week ending Mar. 27:
INSTITUTIONS NOT IN CLEARING HOUSE WITH CLOSING OF BUSINESS
FOR THE WEEK ENDED FRIDAY, MAR. 27 1931.
NATIONAL AND STATE BANKS—Average Figures.
Loans,
Dire. and
Invest.
OtherCash lies. Dep.. Dep. Other
Including N. Y. and Banks and
Gross
Gold. Bk.Notes. Elsewhere. Trust Cu. Deposits.
Manhattan—
s
s
Bryant Park Bk. 1,859,000 121,400
Grace National_ 21,412,893 2,500
Brooklyn—
Brooklyn Nat'l— 10,038,100 18,000
Peoples Nat'l... 6,600,000 5,000
s
$
s
s
94,000
289,900
1,251,500
67,292 2,100,219 1,473,190 21.775,831
143,700
104,000
556,600
472,000
571,600
198.000
7,475,800
6,790.000
•From unofficial sources. t The New York Stock Exchange tile ruled that
TRUST COMPANIES—Average Figures.
stock wW not be quoted ex-dividend on this date and not until further notice.
I The New York Curb Exchange Association haa ruled that stock will not be Quoted
ex-dividend on this date and not until further notice.
Loans,
Res. Dep., Dep. Other
Disc. and
N. Y. and Banks and
Gross
a Transfer books not closed for this dividend.
Invest.
Cash.
Elsewhere. Trust Cos. Deposit*.
I) Internat. Hydro-Eleo. class A divided Is optional either 50 cents cash or
1-50th
Manhattan—
s
5
s
$
share class A stock.
$
Bank of Europe & Tr 13,890,862
674,833
300,930
12.764,131
d Correction, e Payable In stock.
Empire
83,397,000 *4,505,800 6,826,300 2,525,700 81.551.400
Federation
15,631,087
128,875 1,045,398
335,119 15,324,744
Payable in common stook. g Payable 111 scrip. h On &cameo of accumulated
Fulton
19,773,700 .2,498,800
799,900
219,500 18,297,300
alyldends. 1 Payable in preferred erect.
United States
69,816,914 3,766,667 12,445,623
56,653,667
Brooklyn—
k Maxweld Corp. common stock dividend optional either 10c. cash or
2% In
common stock.
Brooklyn
121,781,000 2,128,000 22,489,000 1,911,000 126,813,000
Kings County
28,617,909 2,133,026 2,669,772
26.805,165
y American Cities Power dc Light class A dividend Is payable in class B stock
Bayonne, N. J.—
at rate of 1-32d share, unless holder notifies company by April 14 of his
desire to Mechanics
8,318,187
291,719 8,285.688
292,438
782,694
take cash, The.; class B dividend is payable In class B stock.
o Shenandoah Corp. pref. stock dividend will be paid I-32d share common stock. • Includes amount with Federa Reserve Bank as follows: Empire, 113,0/4,800:
unless holder notifies company on or before April 14 of his desire to take cashFulton, $2,307,200.
75o. per share.
s Corporation securities pref. dividend payable In common stock-1-40th
share
—unless holders notify company of their desire to take cash.
I General Realty es Utilities $6 pref. dividend will be paid in common stock,
66-1,000ths share, unless holder notifies company on or before Mar. 31 of
Boston Clearing House Weekly Returns.—In the folhis desire
to take cash, $1.50.
lowing we furnish a summary of all the items in the Boston
v Real Silk Hosiery Mills stock dividends ratified at stockholders' meeting
March 26. New York Stock Exchange rules common stock will sell ex
-dividend Clearing House weekly statement for a series of weeks:
on March 30.
w Less deduction for expenses of depositary.
z Payment of Associated Gas & Electric class A dividend will
be made to all
stockholders entitled thereto who do not, on or before April 10,
in cash or preferred stock $4 preferred dividend will be paid in $5 request payment
preferred-1-70th
share—unless holder notifies company on or before April 10 of his desire to
take cash.
Weekly Return of New York City Clearing House.—
Beginning with March 311928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, page 3812-13. The figures
given below therefore now include returns from these two
new members, which together add $35,750,000 to the capital,
837,339,600 to surplus and undivided profits, $164,325,000
to the net demand deposits and $104,636,000 to the Time
deposits.
We give the statement below in full:
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY, MAR. 28 1931
Clearing House
Members.
• Capital.
Bank of N. Y.,s, Tr. Co.
Bk.of Manhattan Tr.Co.
Bank of Amer.Nat.Ass'n
National City Bank__
Chem. Bk. dr Trust Co_
Guaranty Trust Co
Chat.Ph. N. Bk..1(Tr.Co
Cent. Han.Bk.&'Tr. Co
Corn Exch. Bk. Tr. Co
First National Bank__
Irving Trust Co
Continental lik.&Tr.Co.
Chase National Bank__
Fifth Avenue Bank
Bankers Trust Co
Title Guar.& Trust Co_
Marine Midland Tr. Co_
Lawyers' Trust Co
New York Trust Co__
Com'i Nat. Bk.& Tr. Co
Harriman Nat. Bk.& Tr.
Public N.B.& Tr.Co—_
Manufacturers Trust Co.
$
6,000,000
22,250,000
36.775,300
110.000,000
21.000,000
90,000,000
16.200.000
21,000,000
15,000,000
10,000,000
50,000,000
6.000,000
148,000,000
500,000
25,000,000
10,000,000
10,000.000
3,000,000
12.500,000
7,000,000
2.000,000
8,250,000
27,500,000
Clearing Non-Member.
Mech.'Pr. Co.. Bayonne
500,000
metal.
'Surplus and Net Demand
Deposits.
Undivided
Average.
Profits.
$
it
14,178,200
66,005.000
261,052,000
54,439.900
f33,079,700
157,245,000
114,554,300 al.035,286,000
43,426,000
247,415.000
207,442,800 b942,696,000
e16,586,000
160.479,000
437,822,000
87,278,200
35,431,300
179,961,000
272,954,000
114,009,500
388,497,000
85,390,500
12,061,000
11,353,100
209,775,900 c1,414,189,000
25,762,000
3,842,100
86,887,300 d460,890,000
35,507,000
24,830,000
48,742,000
9.527,100
17,300,000
4,622,500
189,261,000
35,554,700
47,124,000
9,992,600
2,811,900
27,831,000
39,193,000
13,729,300
125,132.000
23,610,300
924,800
2,658.000
Time
Deposits,
Average.
8
12,793,000
54,051,000
55,765,000
204,346,000
30,279,000
128,894,000
33.736,000
82,373,000
38,044.000
31,159.000
51,100.000
770,000
196,864,000
3.586.000
79,812,000
1,051,000
8,330,000
2,541,000
54,317,000
3.861,000
6,281,000
34.337,000
70.299,000
5,280,000
888.47.82001 942 97R non 11 ROA 0112 ono 1 157 Rao nnn
• As per official reports: National, Dec. 311930, State, Dec. 31 1930.
Trust
companies, Dec. 31 1930. e As of Feb. 27 1931. f As of Mar. 16 1931.
Includes deposits in foreign branches as follows:
844,0001 (c) 5114.351,000: (d) 560,598,000.
(a) $287,432,000: (b) $123,-
BOSTON CEEARING HOUSE MEMBERS.
West Ended
April 1
1931.
Changesfrom
Previous
Week.
Week Ended
March 25
1931,
Week Ended
March 18
1931.
$
$
s
s
Capital
94,075,000 Unchanged
94,075,000
94,075,000
Surplus and profits
96,531,000
—451.000
96,982,000
96.982,000
Loans, disc'te di invest'ts. 1,034,984,000 —3,685,000 1,038,669,000 1,027.577.000
Individual deposits
602,362,000
+4,416,000 597,946,000 606,831,000
Due to banks
157,624,000
—262,000 157.886.000 165,391,000
Time deposits
+1,672,000 277,435,000 279,241,000
279,107,000
United States deposits...
40,609,000 —11,857,000
24,961,000
52.466,000
Exchanges for Clg. House
21,866,000
+6,081,000
18.938,000
15,785.000
Due from other banks... 117,356,000 —9,123,000 126,479,000 120,332,000
Relieve in legal depositles
79,449,000
+1,104,000
81.254.000
78.345.000
Cash in bank
5,547,000
—110,000
5,475,000
5,657,000
Reeve in excess InF.R.Bk
—14,000
2,534,000
2,548,
3,765.000
Philadelphia Banks.—Beginning with the return for the
week ended Oct. 111930, the Philadelphia Clearing House
Association began issuing its weekly statement in a new
form. The trust companies that are not members of the
Federal Reserve System are no longer shown separately,
but are included with the rest.
In addition, the companies
recently admitted to membership in the Association are
included. One other change has been made. Instead of
showing "Reserve with Federal Reserve Bank" and "Cash
in Vault" as separate items, the two are combined under
designation "Legal Reserve and Cash."
Reserve requirements for members of the Federal Reserve
System are 10% on demand deposits and 3% on time deposits, all to be kept with the Federal Reserve Bank. "Cash
in
Vaults" is not a part of legal reserve. For trust companies not members of the Federal Reserve System the
reserve required is 10% on demand deposits and includes
"Reserve with Legal Depositaries" ard "Cash in Vaults.
"
Beginning with the return for the week ended May 14 1928,
the Philadelphia Clearing House Association discontinued showing the reserve required and whether reserves held are above or
below requirements. This practice is continued.
Week Ended
Mar. 28
1931,
$
Capital
83,202,000
Surplus and profits
259,052,000
Loans,[Pacts. and invest_ 1,559.400,000
Exch. for Clearing House
23.979.000
Due from banks
181,656.000
Bank deposits
279,938,000
Individual deposits
805,013,000
Time deposits
437,760,000
Total deposits
1,522,711,000
Reserve with F.R.Bank_ 123.478.000
Changesfrom
Previous
Week.
Week Ended
Mar. 21
1931.
Wei* Ended
Mar. 14
1931.
$
$
$
+168,000
83,034,000
83,034,000
—1,659,000 260,711.000 260,711,000
+21,441.0001,537.959.000 1.497,399.000
—3,620,000
27,599,000
26,382,000
—33,909,000 215,565.000 193.936.000
+2,457,000 277.481,000 262,533,000
—17,943,000 822,956,000 767.482,000
+160,000 437,600,000
. .
—15,326,000 1,538,037,000 1,463,876,000
+645.000 122.833.000 118 aga non
[VOL. 132.
FINANCIAL CHRONICLE
2534
Weekly Return of the Federal Reserve Board.
the condition
The following is the return issued by the Federal Reserve Board Thursday afternoon, April 2,and showingfor
the System
of the twelve Reserve banks at the close of business on Wednesday. In the first table we present the resultsweek
last year.
as a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding Reserve
Agents'
The second table shows the resources and liabilities separately for each of the twelve banks. The Federal
Comptroller and
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between thethe
returns for the
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon
latest week appears on page 2482, being the first item in our department of "Current Events and Discussions."
APRIL 1 1931.
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOSE OF BUSINESS
Apr. 2 1930.
Apr.1 1931.!Mar.25 1931. Mw.18 1981. Mar.11 1931. Mar.4 1931. Feb. 25 1931. Feb. 18 1931. Feb. 11 1931.
$
RESOURCES.
Is
1,693,284,000
1,725,124,000 1,729,624,000 1,710,884.000 1.715,384,000 1,705,384,000 1,724,089,000 1,713,789,000 1,752,459,000
Gold with Federal Reserve agents
51,851,000
34,487.000
34,467,000
34.467,000
33,620.000
33.118,000
33,005.000
32.648,000, 32,672,000
Gold redemption fund with U. S. Treas..
1,745,135,000
1.786,926.000
1,748,256.000
1,758,556,000
1.739.004.000
1,748,502,000
Gold held exclusively spit. F. R. notes 1,757,772,000;1,762,296,000 1.743,389,000
491,679.000 472.060.000 480,497.000 470.484,000 588,864,000
Gold settlement fund with F. R. Board_. 508,978,0001 504,271,000 519,463,000 500,222,000 863.614,000
850,706.000 855,655.000 820.081,000 687,710,000
Goldand gold certificates held by banks. 848.452,0001 859,801,000 853,022,000 847,650,000
3,021,709,000
3,115,202,000,3,126,368,000 3,115.874,000 3.096.374,000 3.094,297.000 3,081.322,000 3.084,408,000 3,077.491.000
Totalgold reserves
187,167,000
180,008,000' 183,894,000 178.265.000 184.172,000 175.990,000 179.194,000 181,995,000 176,855,000
Reserves other than gold
3,266,403,000 3,254,346,000 3,208,876,000
3,260,516,000
3,270,287,000
3,280.546,000
3.294.139,000
3,310,262,000
3,295,210,000
Total reserves
67,422,000
76,649,000
82,298,000
76.037,000
75.634,000
78,878.000
74,791.000
74,333,000
73,954,000
Non-reserve cash
Bills discounted:
113,652,000
79,396,000
66.101.000
60.507.000
63.258,000
49,628.000
61,950,000
52.892.000
57,747.000
Secured by U. S. Govt. obligations-127,471,000
105,883,000 103,475,000 109,030.000 122,922.000 127,318,000 129,340,000 133,722,000 142,793,000
Other bills discounted
241,123,000
222,189.000
199,823.000
189.847.000
190.576.000
172,550,000
161.922,000
163,630,000 165,425,000
Total bills discounted
87,739.000 301,297,000
93,995.000
83.272,000 122.550.000 151,402,000 100,555,000 106.317,000
166,622,000
Bills bought in open market
U. S. Government securities:
54,105,000
80.906,000
78.971.000
75,731.000
76,123,000
76.025.000
68.959,000
66,600,000 68,633,000
Bonds
194,519,000
63,227,000
53,223,000 178,195,000 168,293.000 183,074,000 196.215,000 192,121,000 281,765,000
63,226.000
Treasury notes
336.593,000
324.488,000
340,638.000
355.451,000
350.484,000
497.564,000
468,698,000
468,537.000
Certificates and bills
599,674.000 609.620,000 530,389.000
Total U.S. Government securities...- 598,363.000 598,558,000 617,748.000 604.704.000 599.867.000 599,443.000
8,780,000
Other securities (see note)
Foreign loans on gold
1,081,589,000
928,615.000 847,255,000 902,218,000 928,656,000 890,998,000 895,607,000 893,492,000 919,548,000
Total bills and securities (see note)
Gold held abroad
722,000
711.000
699,000
699,000
698,000
710,000
698,000
703.000
707,000
Due from foreign banks (see note)
17,971,000
17.785.000
15,332,000
15,750.000
14,959,000
14.664,000
14.772.000
16,239,000
13,608,000
Uncollected items
522.264.000 513.097.000 444.122,000 628,023,000
464,466,000
401,472.000
563.821,000
516.299.000
501,567,000
banks
other
of
notes
Reserve
Federal
58,507,000
58.098,000
58.191,000
58.192.000
58,323,000
58,243,000
58,297,000
58.196.000
58,338,000
Bank premises
12,195.000
19,243,000
19.336.000
19.085,000
16,546,000
19,850,000
18,073,000
19,729.000
17,617,000
All other resources
5,073,305,000
4.790.502,000
4,848,848.000
4.848,150,000
4,889.616,000 4,786,854,000 4,924,814,000 4,843,007,000 4.848,080.000
Total resources
LIABILITIES.
1.576,097,000
1,497,811,000 1,441,715,000 1,441,823,000 1.445,855,000 1.459,837,000 1.448,416.000 1.449.756,000 1,481,000,000
F. R. notes in actual circulation
Deposits:
2,375,348,000
2,391,814,000 2,357,011,000 2,436,383,000 2,435,520,000 2,365.192,000 2.378.411.000 2.379,736.000 2,364,688,000
Member banks—reserve account
38,922,000
28.913,000
35,248,000
25.847.000
33,124,000
51,404,000
2.535,000
29,140,000
43,644.000
Government
6,610,000
5.308,000
5.261,000
5,200.000
5,086,000
5.183,000
5,234,000
5,151,000
5,197,000
Foreign banks (see note)
22,167,000
18,445.000
19,305,000
18,111,000
19,266,000
16,944,000
21,104,000
20,113,000
16,737,000
Other deposits
2,446,218.0002.432,767.000 2,465,256,000 2,490,771.000 2,430.770,000 2.427.569,000 2.439,550.000 2,417.350.000 2,443,047,000
Total deposits
487,611,000 454.585,000 559,941,000 448,988,000 500,381,000 515.070.000 502,628.000 435,473.000 586.667,000
Deferred availability items
168,825,000 168,894,000 169,004,000 169,024,000 169,092.000 169,135.000 169,265.000 169.296.000 174,246,000
Capital paid in
274,636,000: 274.636,000 274,636,000 274.636,000 274,636,000 274,636.000 274,636,000 274.636,000 276,936,000
Surplus
18,312,000
13,013,000j 12.741.000
14,154,000
13,733,000
13.324.000
14,515,000, 14,257,000
13,364,000
All other liabilities
5,075,305.000
2,000
4.848,848,0004,790.50
4,924,814,000
4,843.007,000
4,889,616,000
4.848.150,000
4,786,854.000
4.848,080,000
Total liabilities
Ratio of gold reserves to deposits and
75.1%
78.9%
79.3%
79.5%
79.7%
78.6%
80.6%
79.1%!
79.5%
F. It. note liabilities combined
Ratio of total reserves to deposits and
79.8%
83.5%
84.0%
84.1%
85.4%
83.3%
84.3%
83.5% 1
84.1%
F. R. note liabilities combined
Contingent liability on bills purchased 430,784,000T1
475,524,000
445,684,000
449.637,000
453.814.000
437,233,000
453,072.000
460.945,000 462.261,000
for foreign correspondents
Distribution by Maturities1-15 days bills bought in open market.
1-15 days bills discounted
1-15 days U. S. certif. of indebtedness1-15 days municipal warrants
16-30 days bills bought In open market__
16-30 days bills discounted
16-30 days U.S. certif. of indebtedness18-30 days municipal warrants
31-80 days bills bought in open market31-60 days bills discounted
31-60 days U. B. certif. of indebtedness
31-60 days municipal warrants
61-90 days bills bought in open market
61-90 days bills discounted
61-90 days U.S. certif. of indebtedness
61-90 days municipal warrants
Over 90 days bilis bought in open market
Over 90 days bills discounted
Over 90 days certif. of indebtedness
Over 90 days municipal warrants
S
1
$
54,399,000
102,694,000
78,336,000
100,829,000
35,604,000
120,439.000
39,496.000
117.738.000
24.352.000
123.265.000
22,097,000
140.520.000
26.607,000
205,190,000
164,494,000
100,000
,
31.824,000
14,452,000
8
74.872,000
95,670.000
45,000,000
17,83.5,000
14,152,000
26,095,000
16.061,000
49.372,000
18,725,000
40.488,000
19,318.000
36.653.000
16.946.000
25.642.000
18,288,000
15.686.000
20,099.000
41,454,000
19,682,000
10,779,000
21,857,000
36,000,000
9,666,000
22,426,000
36.000.000
19,919.000
23,102.000
6.000.000
21,695,000
25,377,000
2,000,000
21,414.000
24,779.000
23.608.000
27.188,000
33,436.000
28.841.000
35.734.000,
29,801,000
30,000
40,996,000
27,502,000
27,000,000
2,891,000
14,744,000
120,216,000
1,245,000
14,236,000
113,718,000
1,434,000
15,132,000
158,717.000
1.760,000
15,742,000
30.000.000
2,738.000
14,374.000
32.000.000
5.844,000
16.388,000
29,000.000
10,215,000
17,575,000
22,000.00G
13.866.000
19,439,000
13,277,000
17,646,000
58,072,000
190,000
11,720,000
312,321,000
127,000
11,917,000
318,980,000
230,000
11,957,000
297,847.000
239.000
11,877.000
318,484,000
311,000
11,666,000
323,451,000
716.000
11,587.000
311.638.000
350.000
11.854.000
302.488.000
120,934,000
100,857,000
380,000
356,000
11,799,000
12.3:30,000
309,986,0001 196,193.000
3,131,407,000
1,231,271,000
F. R. notes received from Comptroller__
F. R. notes held by F. R. Agent
Issued to Federal Reserve Banks
1,900.136,000
1,895,399,0001,874,535.000 1,871.904.000 1,861,648,000 1.869.906.000 1,856,233,000 1.858,540.000 1,897.944,000
Ilaw Secured—
By gold and gold certificates
Gold redemption fund
Gold fund—Federal Reserve Board
By eligible paper
402,028,000
814.654,000 617.359.000 619.559,000 652,729,000
1.291,256,00e
1.099,730,000
1,094.230.000
1,108,730.000
1,101,980,000 1,111,480,000 1,091.730,000 1,096.730.000 1.090,780.000
265.920,000 514,028,000
301.556.000, 239,742,000 256,650.000 288,207.000 285.540.000 250,470.000 252.991.000
623,141,000I 618,144,000
618,654.000
618.654,000
2.018,379.000 2,207,312,000
2.026.680.000 1,969,366.000 1.967,034,000 2.003 591 000 1.960,924.000 1.974.559.000 1,066.780.000
Total
the amount o balances held abroad and amounts due to
NOTE.—Beginning with the statement of Oct. 7 1925, two new items were added in order to show separately
was changed to "Other
debentures,
Bank
Credi
other earning assets." Previously made up o Foreign Intermediate
foreign correspondents. In addition, the caption, "All
of the total of the disto "Total bills and securities." The latter item as adopted as a more accurate description
securities," and the caption, "Total earning assets"
items included therein.
only
the
are
stated,
was
It
which.
of Sections 13 and 14 of the Federal Reserve Act
counts, acceptances and securities acquired under the provision
AT CLOSE OF BUSINESS APRIL 11931.
BANKS
RESERVE
FEDERAL
OF
12
OF
AND
THE
EACH
LIABILITIES
RESOURCES
WEEKLY STATEMENT OF
Two Ciphers (00) omitted.
Boston, New York. Phila. Cleveland, Richmond Atlanta. Chicago. St. Louis. Minneap. Kan,Cily. Dallas. San Fran.
Total.
Federal Reserve Bank of—
$
$
$
$
$
$
$
$
$
$
$
$
$
RESOURCES.
72,880,0 46,515,0 65,000,0 25,600,02i5,763,0
Gold with Federal Reserve Agents 1,725,124,0 149,917,0 351,919,0 160,000,0 192,550,0 84,080,0 135,900,0 225,000,0
767,0 4,444,0
1,354,0
470,0
1,526,0
3,995.0
1,042,0
1,147,0
2,568,0
13,300,0
1,223,0
812,0
32,648,0
Gold red'n fund with U.S. Treas.
151,140,0 365,219,0 161,147,0 195,118,0 84,892,0 136,942,0 228,995.0 74,406,0 46,985,0 66,354,0 26,367,0 220,207,0
Gold held excl. asst. F. R.notes 1,757,772,0
508,978,0 25,677,0 132,657,0 64,664,0 44,364,0 19,506,0 16,619,0 110,375.0 21,450,0 16,684,0 17,716,0 13,162,0 26,104,0
Gold settle't fund with F.R. Board 848,452,0
33,004,0 569,158,0 28,359,0 65,442,0 4.935,0 8,091,0 70,913,0 11,376,0 5,174,0 12,217,0 4,884,0 34,899,0
banks_
by
held
Cold and gold ars.
3,115,202,0 209,821,0 1,067,034,0 254,170,0 304,924,0 109,333,0 161,652,0 410,283,0 107,232,0 68,843,0 96,287,0 44,413,0 281,210,0
Total gold reserves
58,231,0 9,100,0 15,983,0 11,083,0 6,289,0 20,228,0 10,815,0 4,027,0 8,006,0 9,022,0 10,684,0
180,008,0 16,540,0
Reserve other than gold
263,270.0320,907,0 120,416,0 167,941,0 430,511,0 118,047,0 72,870.0 104,293,0 53,435,0 291,894,0
1,125,265,0
226,361,0
3,295,210,0
Total reserves
20,883,0 3,776,0 5,392,0 4,207,0 4,040,0 9,548,0 4,873,0 1,569,0 1,940,0 3,270,0 6,404,0
73,954,0 8,052,0
Non-reserve cash
Bills discounted:
154,0 9,813,0
414,0 1,544,0
356,0 4,052,0 2,675,0
17,153,0 5,804,0 7,811,0 2,205,0
57,747,0 5,766,0
Sec. by U.S. Govt. obligations
19,034,0 12,238,0 8,848,0 12,849.0 13,069,0 8,272,0 5,224,0 3,109,0 8,113,0 7,837,0 4,482,0
105,883,0 5,810.0
Other bills discounted
36,187,0 18,042,0 14,657.0 15,054,0 13,425,0 12,324,0 7,899,0 3,523,0 9,657,0 6,991,0 14,295.0
163,630,0 11,576.0
Total bills discounted
105,0 15,548,0
244,0 6,283,0 17,421,0 6,438,0 4,020,0 6,389,0 4,049,0 16,761,0
76,535,0
166,622,0 12,829,0
Bills bought In open market
securities:
13. 8. Government
319,0
666,0 7.521.0
379,0 10,192.0
989,0
682,0
212,0 20,590,0
1,325,0
22,523,0
66,600,0 1,202,0
Bonds
923,0 4.151,0 3,645,0 4,393,0 1,099,0 2,032,0 1,149,0 11,348,0
13,263.0 5,625,0 12,853,0
63,226,0 2,745,0
Treasury notes
18,840.0 16,954,0 31,369,0 17,883,0 27,325,0
56,893,0
44,320,0
14,735,0
42,738,0
8,318,0
146,927,0
42,235,0
468,537,0
Certificates and bills
1 son 'AAR n 46 1020 182 713 0 49152.0 57.6M0 IR ORR 0 126R1 A 01 128 0 23.800.0 25 574 n 53 70011 20 224 n 18.1102.(1
Total 13.6,Cinvt awn
APRIL 4 1931.1
Tice Ciphers (00) omitted.
Total.
Boston.
New Yon.
Phila.
$
s
$
$
RESOURCES (Concluded)Other securities
Foreign loans on gold
Total bills and securities
Due from foreign banks
Uncollected items
F.R. notes of other banks
Bank premises
All other resources
2535
FINANCIAL CHRONICLE
Cleveland. Richmond Atlanta. Chicago. St. Louis. Minneap. Kan.City. Dallas. San Fran.
$
$
$
$
$
$
$
$
S
928,615,0 70,587,0 295,435,0 67,499,0 88,060,0 32,281,0 32,389,0 110,873,0 38,236,0 33,117,0 49,826,0 40,264,0 70,048,0
48,0
21,0
21,0
72,0
16,0
707,0
53,0
232,0
70,0
28,0
26,0
95,0
25,0
242,0 1,222,0
923,0
13,608,0
559,0
257,0
4,039,0
242,0 1,017,0 1,065,0 ' 984,0 2,368,0
690,0
501,567,0 64,380,0 151.429,0 45,066,0 44,582,0 34,294,0 13,015,0 56,583,0 19,670,0 8,523,0 22,450.0 15,978,0 25,597.0
58,338,0 3,458,0
15,240,0 2,614,0 7,139,0 3,438,0 2,573,0 8,061,0 3,635,0 1,926,0 3,803,0 1,830,0 4,621,0
690,0
944,0
429,0
17,617,0
4.826,0
391,0 1,577,0 1,091,0 3,646,0 1,539,0 1,428,0
718,0
338,0
Total resources
4,889,616,0 373,486,0 1,617,349,0 382,928,0 468,746,0 196,820,0 224,614,0 619,578,0 186,604,0 119,298,0 183,685,0 115,984,0 400,524,0
LIABILITIES.
F. R. notes in actual circulation 1,497,811,0 134,524,0 278,261,0 140,478,0 178,241,0 79,637,0 131,123,0 177,570,0 77,018,0 48,489,0 65,653,0 27,047,0 159,770,0
Deposits:
Member bank-reserve account 2,391,814,0 138,727,0 1,023,881,0 152.436,0 196,666,0 60,565,0 61,084.0321,502.0 69,920.0 49,943,0 82,553,0 57,608,0 176,929,0
639,0
960,0
830,0
Government
29,140,0 2,283.0
9,617,0 2,157,0 1,706,0 4,576,0 1,692,0 1,988,0 1,217,0 1,475,0
350,0
154,0
149,0
Foreign bank
185,0
695,0
180,0
118,0
520,0
206,0
5,151,0
509,0
386,0
1,699,0
94,0 6,147,0
389,0
147,0
376,1
179,0
669,0
Other deposits
20,113,0
106,0
59,0
10,124,0
84,0 1,739,0
Total deposits
Deferred availability Items
Capital paid in
Surplus
AU other liabilities
2,446,218,0 141,455,0 1,045,321,0 155,186,0 200,631.0 65,453,0 63,140,0 324,854,0 71,706,0 51,683,0 83,908,0 58,816,0 184,065,0
487,611,0 64,129,0 143,805,0 43,103,0 43,994,0 33,076,0 12,234,0 55,047,0 21,166,0 8,111,0 20,731,0 16,202,0 26,013,0
168,825,0 11,832,0
65,624,0 16,780,0 15,757,0 5,736,0 5,241,0 19,942,0 4,837,0 3,055,0 4,248,0 4,311,0 11,462,0
274,636,0 21,299,0
80,575,0 27,065,0 28,971,0 12,114,0 10,857,0 39,936,0 10,562,0 7,144,0 8,702,0 8,936,0 18,475,0
739,0
672.0
816,0
443,0
804,0 2,019,0 2,229,0 1,315,0
316,0 1,152,0
14,515,0
247,0
3,763,0
Total liabilities
4,889,616,0 373,488,0 1,617,349,0 382,928,0 468,746,0 196,820,0 224,614,0 619,578,0 186,604,0 119,298,0 183,685,0 115,984,0400,524,0
Memoranda.
84.9
62.2
69.7
eserve ratio (percent)
83.0
86.5
85.7
79.4
72.7
84.7
89.0
83.5
85.0
82.0
Ontingent liability on bills purchased enr tnrplon mrraAnetnrIqua 420 704 n !29 one ri 141 722 n 42 047 0 43.60R.0 17.231.0 15.508.0 58.155.0 15.077.0 9.910.0 12.492.0 12.923.0 29.293,0
Federal Reserve Agent at-
FEDERAL RESERVE NOTE STATEMENT.
•
Boston. New York. Phaa. Cleveland. Richmond Atlanta. Chicago. St. Louis Affsmeap. Kan City. Dallas. SanFran.
Total.
Two Ciphers (00) omitted.
$
5
Federal Reserve notes:
Issued to F.R. bk. by F.R. Agt. 1,895,399,0 159,756,0
Held by Federal Reserve bank_ 397,588,0 25,232,0
5
$
8
5
3
3
$
1
3
278,261,0 140,478,0 178,241,0 79,637,0 131,123,0 177,570,0 77,018,0 48,489,0 65,653,0 27,047,0 159,770,0
In actual circulation
1,497,811.0 134.524,0
Collateral held by Agt,as security
for notes issued to bank:
Gold and gold certificates
623,144,0 35,300,0
Gold fund-F.R. Board
1,101,980,0 114,617,0
301,556,0 24,382.0
Eligible paper
Total oollateral
$
3
402,253,0 166,815,0 207,973,0 88,991,0 153,619,0 239,958,0 84,311,0 52,938,0 72,978,0 33,383,0 232,424,0
123,992,0 26,337,0 29,732.0 9,354,0 22,496.0 62,388,0 7,293,0 4,449,0 7,325,0 6,336,0 72,654.0
7,300,0 55,000,0
351,919,0 38,700,0 12,550,0 10,080,0 9,400,0 82,000,0 14,080,0 5,815,0
121.300,0 180,000,0 74,000,0 126,500,0 143,000,0 58,800,0 39,700,0 65,000,0 18,300,0 160,763,0
94,603,0 16,357,0 25,355,0 14,975,0 19,107,0 29,545,0 13,416,0 7,273,0 15,448,0 10,419,0 30,678,0
446.522.0 176.357.0 217.905.0 99.055.0 155.007.0 254,545.0 86.296,0 53,788,0 80,448,0 36,019,0 246,439.0
2.026.680.0 174.299.0
Weekly Return for the Member Banks of the Federal Reserve Syst.m.
Following is the weekly statement issued by the Federal Reserve Board, giving the principal items of the resources
and liabilities of the reporting member banks from which weekly returns are obtained. These figures are always a week
behind those for the Reserve banks themselves. Definitions of the different items in the statement were given in the statement of Dee. 14 1917, published in the "Chronicle" of Dec. 29 1917, page 2523. The comment of the Reserve Board upon
the figures for the latest week appears in our department of "Current Events and Discussions," on page 2482, immediately preceding which we also give the figures of New York and Chicago reporting member banks for a week later.
Beginning with the statement of Jan, 9 1929, the loan figures exclude "Acceptances of other banks and bills of exchange or drafts sold with endorsement, and Include all real estate mortgages and mortgage loans held by the bank. Previously acceptances of other banks and bills sold with endorsement were included with loans,
and some of the banks Included mortgages In Investments. Loans secured by U. S. Government obligations are no longer shown separately, only the total of loans on
securities being given. Furthermore, borrowing at the Federal Reserve is not any more subdivided to show the amount secured by U. S. obligations and those secured
by commercial Paper, only a lump total being given. The number of reporting banks is now omitted; in its place the number of cities included (then 101) was for a time
given, but beginning Oct. 9 1929 even this has been omitted. The figures have also been revised to exclude a bank in the San Francisco district with loans and investments of 8135,000.000 on Jan. 2 which recently merged with a non-member bank. The figures are now given in round millions instead of In thousands.
PRINCIPAL RESOURCES AND LIABILITIES OF ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE OF
BUSINESS MARCH 25 1931 (In millions of dollars).
Federal Reserve District-
Total.
Boston. New York
Cleveland, Richmond Atlanta. Chicago. .51. Louis. Minneap. Kan.City. Dallas. San Fran,
Phila.
458
$
1,986
2,324
452
239
382
312
1,247
1,141
1.183
177
275
59
180
103
279
90
222
344
903
1,424
431
412
674
750
162
269
133
279
$
1,392
$
2,265
Loans-total
15,470
1,059
6,342
846
7,349
8.121
409
650
3,623
2,719
434
412
$
$
$
$
$
$
7,576
425
2,927
546
841
200
173
990
202
133
254
146
739
3,814
3,762
174
251
1,555
1,372
238
308
442
399
87
113
88
85
522
468
60
142
66
67
105
149
93
53
384
355
1.779
205
94
13
853
54
93
12
143
25
as
14
37
9
250
32
47
6
26
5
52
11
34
7
112
17
13,690
7,278
408
851
524
45
6,443
1,770
141
807
394
39
1.119
1,016
19
323
252
21
301
232
27
1,776
1,310
44
378
242
13
216
152
442
207
3
275
151
20
759
1,028
36
1,866
3,912
123
143
202
1,396
176
300
171
419
108
124
95
117
303
554
106
134
86
98
181
221
112
125
203
281
35
3
3
2
3
2
1
2
Investments-total
U.S. Government securities
Other securities
Reserve with F. R.Bank
Cash in vault
Due from banks
Due to banks
Borrowings from F. It. Bank
• Exclusive of figures for one bank
636
$
3,314
$
9,269
Net demand deposits
Time deposits
Government deposits
372
585
$
1,484
On securities
All other
654
631
Loans and investments-total
$
23,046
to New York City, closed Dee. 11.
1
18
Last report of bank showed loans and investments of about $190,000,000
Condition of the Federal Reserve Bank of New York.
The following shows the condition of the Federal Reserve Bank of New York at the close of business April 1 1931,
In comparison with the previous week and the corresponding date last year:
Apr. 11931. Mar.25 1931. Apr. 21930,
ResourcesGold with Federal Reserve Agent
Gold redemp. fund with U.S. Treasury.
351,919,000 366,919,000
13,300.000
13,300,000
Gold held exclusively agst. F.R. notes
Gold settlement fund with F. R. Board_
Gold and gold certificates held by bank.
365,219,000
132,657,000
569,158,000
Total gold reserve
Reserves other than gold
380,219,000
131,425,000
562,088,000
1,067,034,000 1,073.732.000
56,838,000
58,231,000
Total reserves
1,125,265,000 1,130,570.000
Non-reserve ()ash
18,592,000
20,883,000
Bills discountedSecured by U. S. Govt. obligations-15,214,000
17,153,000
Other bills discounted
19.034,000
19,467,000
Total bills discounted
Bills bought in open market
U.S. Government securitiesBonds
Treasury notes
Certificates and bills
817,487,000
53,427.000
870,914,000
14,350,000
38,073,000
15,794,000
Total resources
Apr. 11931. Mar.25 1931. Apr. 21930.
$
$
$
232,000
4,039,000
151,429,000
15,240,000
4,826,000
240.000
4,283.000
127,248.000
15,240,000
4,548,000
237,000
5.310,000
183,747,000
15,664,000
3,209,000
1,617,349,000 1,533.355,000 1,507,447,000
LiabilitiesFed'I Reserve notes in actual circulation 278,261,000
Deposits-Member bank, reserve acct._ 1,023,881.000
Government
9,617,000
1,699,000
Foreign bank (see note)
10.124,000
Other deposits
246,320,000
988,857,000
17,559,000
1,602,000
8,474,000
196,502.000
975,450,000
10,380,000
2.613,000
9,276,000
1,045,321,000 1,016,492,000 997.919,000
53,867,000
Total deposits
143,805,000 120,644,000 157,694,000
142,785,000 Deferred availability items
85,623,000
65,624.000
69,730,000
Capital paid In
22,523,000
80,575,000
15,389,000 Surplus
80,575,000
80,001,000
22,523,000
13,263,000
76,858,000 All other liabilities
3,763,000
3,701,000
5,601,000
13,263,000
146.927,000 148,927,000 118,367,000
1,617,349,000 1,533,355,000 1,507,447,000
Total liabilities
Total U.S. Government securities- 182,713,000 182,713,000 210,614,000
Other securities(,ee note)
6,750,000 Ratio of total reserve to deposit and
Foreign loans on gold
85.0%
89.5%
Fed'
. Reserve note liabilities combined
72.9%
Contingent liability on bills purchased
Total bills and securities (see note).- 295,435,000 232,634.000 U 414,016,000
141.732.000 144.122,000 151,791,000
for foreign correspondents__..
NOTE -Beginning with the statement of Oct.7 1925, two new Items were added in order to show separately the amount of balances held abroad and amounts due to
foreign correspondents. In addition, the caption "All other earning assets," previously made up of Federal Intermediate Credit Bank debentures was changed to "Other
securities," and the caption, "Total earning assets" to 'Total bills and securities."
The latter term was adopted as a more accurate description of the total of the discount,
acceptances and securities acquired under the provisions of Sections 13 and 14 of the Federal Reserve Act, which, it was stated, are the only items included therein.
36,187,000
76,535,000
34,681,000
15,240,000
Resources (Concluded)258,594,000 Gold held abroad
15,401,000 Due from foreign banks (see note)
Uncollected Items
273,995,000 Federal Reserve notes of other banks
134,604,000 Bank premises
408,888,000 All other resources
2536
FINANCIAL CHRONICLE
Vankers'
azette.
Wall Street, Friday Night, April 3 1931.
Railroad and Miscellaneous Stocks.-The review of the
Stock Market is given this week on page 2022.
The following are sales made at the Stock Exchange this
week of shares not represented in our detailed list on the
pages which follow:
STOCKS.
Week Ended Apr. 3.
Sales
for
Week.
Range for Week.
Lowest.
I
Highest.
Range Since Jan. 1.
Lowest.
Highest.
RailroadsPar. Shares. 5 per share. I per share. per share.5 per share.
Caro Clinch & OhioCtfs stamped_._1
1 9831 Mar 31/ 98% Mar 31 98
Feb 100
Feb
Colo& South let p1_100
Feb 60
Jan
20 60 Apr 11 70 Apr 1 59
Duluth S S & At1-100
% Mar 31
34 Mar 114 Jan
1
% Mar 31
Havana Else Ry
100 114 Mar 28 1% Mar 2
•
1% Mar
III Cent pref
1
Feb
600 100 Apr 1 101)4 Mar 28 100 Mar 114
Let Rys of Cent Am ctf•
11
Feb
70 10% Mar 28 10% Mar 28 834 J
Preferred
1 503-i Apr 2 50% Apr 2 44
100
Jan 55% Feb
Market St Ry 2d pf_100
10 4% Mar 30 4% Mar 30 3
Jan 6% Feb
Pacific Coast let pf_100
Jan 12 Mar
40 10 Mar 30 11 Mar 28 8
Pitts Ft W & Chic p1100
7,155% Apr 2156 Apr 1 55% Mar 163
Feb
Indus. & Miscell.Amalgam Leather.._--*
Jan 234 Mar
100 2% Apr 11 2% Apr 1
Alleghany Steel
300 39% Apr 2 41% Mar 28 39% Apr 4634 Feb
Amer AgrIc Chern(Dell*
22)4 Mar 30 23% Mar 28 20
Jan 2931 Feb
Amer Beet Sugar pf_100
Jan 17% Jan
10 15 Mar 28 15 Mar 28 8
Amer Coal
10 60 Mar 28 60 Mar 28 53% Mar 60 [Mar
25
American News
Feb 5734 Feb
60 54% Apr 1 56% Apr 1 50
Amer Water Works &
Electric ctfs
• 2,700 55 Apr 2 60 Apr 1 5434 Jan 804 Feb
Art Metal Construct.1
100 1831 Mar 31 18% Mar 31 18% Mar 20% Jan
Assoc Dry Gds let p1100
Jan 97
Feb
300 96 Apr 2 97 Mar 28 85
Austin Nichols prior A *
Jan 24% Mar
200 23 Apr 1 23 Apr 1 21
Jan 2% Mar
Barnet Leather
100 214 Mar 31 2% Mar 31
Certain-Teed Products
300 24% Mar 31 24% Mar 31 11
1st preferred
Jan 2534 Mar
100
21 22% Mar 30 22% Mar 30 20
Com'i Cred pfd(7)_--25
Jan 2334 Jan
Comm Inv Tr (634) 100
300 104 Mar 28 104 Mar 28 102
Jan 104
Mar
20 78 Mar28 79% Apr 2 64% Jan 79% Apr
Consol Cigar pfd(7)100
Consol Laundries
Apr 15% Mar
* 1,400 14% Apr 2 15 Mar 28 14
100 31% Mar 31 31% Mar 31 31% Jan 3434 Feb
Crown Cork & Seal pf-*
Cuban Dom Sugar-- -* 3,700
% Mar 28
34 Mar 31
34 Jan 1% Jan
Cushm Sons Pf(7%)100
Jan 112
Mar
9010934 Mar 30 111 Mar 30 100
Eng Pub Say pf(6)-•
200 97 Mar 28 97 Mar 28 93
Franklin Simon pref 100
20 72 Apr 2 72 Apr 2 67
General Baking
• 3.100 2231 Apr 1 2331 Apr 2 22%
20114% Mar 2 11434 Mar 28 107%
General Cigar pref. 10
Gen Gas& Elec pf A(7)*
60 80 Mar 3 82 Mar 28 72
General Print Ink_
*
10 23 Mar 3 23 Mar 30 19
Gold Dust pref
19011431 Apr 2 114% Apr 2 104
Guantanamo Sus p1100
240 10 Mar 28 11 Apr 2 10
Feb 98
Mar 75
An 23%
Jan 116%
Jan 90
Feb 31
Jan 115
Jan 12%
Mar
Jan
Apr
Feb
Feb
Mar
Mar
Jan
Hackensack Wat pf A25
2834 Mar 301 283, Mar 30 26%
Hamilton Watch
20 35 Apr 2 35 Apr 2 35
Harb-Waik Refr p1_100
10 117 Mar 3 117 Mar 30 109%
10% Apr 2 12% Mar 28
Houston Oil new._ _ _2 23,8
Internat Silver pref _100
3 87 Mar 31 90% Mar 28 734
Inter Dept St pret.100
80 66 Apr 2 66 Apr 2 57%
Kresge Dept StoresPreferred
1
10 3234 Apr 2 32% Apr 2 32%
Kresge (SS) Co p1.100
20 111 Apr 2111 Apr 2 107
Kuppenhelmer pref_100
100115% Mar 28 115% Mar 28 115%
Lorillard Co pref_ -i00
5
9834 Mar 3 101 Mar 31 90%
Norwalk T & R pref 100
12 Apr 2 9
10 12 Apr
Outlet Co
150 50 Apr 2 52 Apr 1 45
Preferred
30107% Apr 1107% Apr 1 106
Panhandle P & R pf 100
100 16 Apr 2 16 Apr 2 10
Phoenix Hos pref_ I
15 65 Apr 1 65% Apr 1 65
Proctor & Gamb p1_1
3 109% Mar nog Apr I 107
Revere Cop &Br pf_100
70 Mar 28 70 Mar 28 70
Sloss-Sheff Steal' pf 1
36 28 Apr 2 38% Apr 2 28
Sou Calif Edison rts_
39,892 2% Mar 30 2% Mar 28
Mar 29%
Ap 41
Feb 117
Jan 14%
Jan 90%
Feb 67
Mar
Feb
Mar
Feb
Mar
Mar
Und-Elliott-Fish p1.1
United Business Pub_.
United Dyewood pf_l
Univ Leaf Tob pret_100
Ilniv Pipe & Rad pf_100
Virginia Ir Coal & C 10
Walgreen Co pref--10
Wilcox-Rieh class A..*
*No par value.
Mar 35
Jan 111
Mar 115)5
Jan 101
Jan 12
Jan 55
Feb 110
Mar 16
Apr 70%
Feb 112
Mar 8334
A
39
Feb 2%
(AU prices dollars per share)
June 15
.111118 15
Sept.15
Sent. 15
1931-19311931-1931_
Int.
Rate.
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.-Below
we furrish a daily record of the transactions in Liberty Loan
bonds and Treasury certificates on the New York Stock Exchange. The transactions in registered bonds are given
in a footnote at the end of the tabulation.
Daily Record of U. S. Bond Prices. Mar.28 Mar.30 Mar.31 Apr. 1 Apr. 2 Ayr. 3
First Liberty Loan
High 1012233 1012232 1012432 1012423 1012222
334% bonds of 1923-47-- Low- 1012422 1012432 1012232 1012432 1012223
(First 3%)
Close 1012432 1012223 101223 1012432 1012223
Total sales in $1,000 units...10
51
20
14
10
Converted 4% bonds of{Hig
1932-47 (First 4s)...LowTotal sales in ELMO units_
Converted 434% bonds(High
of 1932-47 (First 434s)[ Low[close
Total sales in $1,000 units_ _ _
Second converted 4%% High
bonds of 1932-47(First LowSecond 431s)
Total sales in 81,000 units-Fourth Liberty Loan
(High
4%% bonds of 1933-38 LowClose
(Fourth 434s)
Total sales in 61,000 units-Treasury
High
OM 1947-52
Low_
Close
Total sales In 51.000 units...
Hih
4s. 1944-1954
Low_
Close
Taal sales 0181,000 units--High
31(5, 1945-1958
Low_
Close
Total saki in 61,000 units.-{High
3948, 1943-1947
LOWClose
Total WSW OS $1,000 mitt...
High
331e. 19404943
Low.
Close
Total sales in $1,000 UAW-High
3345, 1941-43
LOWClose
Total sales in
OM units
____ 102w22 102242 1021132 1022222
____ 1022232 1022232 1022232 1022223
____ 1023222 1022332 102223 102"s:
____
3
6
1
134
----
--
----
----
-103"st
1032)32
1032222
74
1112,s,
111,,s2
111223:
s
15
____
____
____
-____
___
- --- - --_. ._-_
-___
____
--------- -101,,
- ,, 101"s:
101",,1012%3
101"s, 101,,a,
6
5
1012232 1011133
101"n 101",,
101nn 1011112,
10
3
10124w 1011422
1012,n 101",
10112s, 10114a,
2
12
--103",t
1032331
1032222
60
112
---103",
103132
103",
61
1112,,,
111"32
1112131
111,,a,
SO
107un
1072132
1072132
s
1051122
1052232
1052232
2
101",,
10114:
101,,st
5
1011232
1011,1:
1011Ist
5
1011222
101,
,,
10101:
39
111"s:
22
107"ss
1072231
1071232
25
1052032
1051232
1052232
50
101"ss
-_-_
1032,s,
10322n
1032232
58
1112223
111,,s,
111h32
-----103",, Boll1032232 day
1032222
36
11121s:
1112121
111"ss
2
1072*ss
1072633
107ws:
60
105222
105"32
105222
1
101111
101",, 101",
1012,st
127
101232
100",s
1014,2
154
101"as
101
101":,
5551
101"ss
s
101",,
101,
:,
101%
11
101",
101,s:
101,
,,
36
Note.--The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
74th 4148
1032032 to 1032222
ENGLISH FINANCIAL MARKET-PER CABLE.
The daily closing quotations for securities, &c.. at London,
as reported by cable, have been as follows the past week:
Jan
Sat.,
Mon.,
Tues.,
Wed.,
Thurs.,
Fri.,
Feb
Afar. 28. Mar. 30. Mar. 31. Apr. 1.
Apr. 2. Apr. 3.
Mar •
MW Silver, p. es_d. 13%
133-16
1212-16 12%
133-18
Jan Gold, p.fine oz.8423.10)4d. 84s. 103421.84s. 93.4d. 84s. 10.4d.848.1034d.
Feb
5631
56%
5734
5734
Mar Consols, 23-4s-- ---104
10434
10434
10434
Apr British 53;_____
Jan British 414s- ---101%
101%
10134
10134
Mar French Rentes
Holiday
Jan
88.70
88.50
(in Paris)_fr. 88.30
88.10
88.30
Feb
Mar French War L'n
(in Paris)_fr.104.50
104.50
104.50
104.60
104.50
100120% Mar 31 1204 Mar 31 120% Mar 123
Feb
4 6 Mar 28 8 Apr 2 5
Feb 11
Jan
on
the
same
days has been:
silver
in
New
York
The
price
of
21 41% Mar 28 41% Mar 28 40% Feb 45 !Mar
50108 Mar 30 108 Mar 30 102
Feb 110 !Mar Silver in N. Y., per oz. (eta.):
2731
Foreign
2831
2834
2934
2834
Mar 30 47% Mar 60
0,
11 47%ar 30 47% M
Jan
11 31 Mar 31 31 Mar 30 22
Jan 33% Mar
Feb 94
100 94 Mar 31 94 Mar 31 90
Mar
2 28 Apr 2 28 Apr 2 20
Mar
Jan 30
CURRENT NOTICES.
Quotations for U. S. Treas. Ctfs. of Indebtedness &c.
Maturity.
[VOL. 132.
Bid.
234% 100122
131% 1002n
234% 100242
I )4% 99033
Asked.
Maturity.
Int.
Rate.
Bid,
Asked,
100242 Dee. 15 1931-- 134% moon 1001,2
100222 Mar. 15 1932.-- 2%
100
100222
1001222 Dec. 15 1931-32 334% 10111n 101"2
100
-Almond D. Fisk, a member of the law firm of Avery, Tausig & Fisk,
has been elected to the board of directors of the Franklin Society for HorneBuilding and Savings, at 217 Broadway, New York City, to fill a vacancy.
-On April 1 Goodbody & Co. took over the Washington, D. C. office
and organization of Harriss St Co., located at Southern Building, 708
Fifteenth St., N. W. McElroy Moss will remain as manager.
-Robert C. Dunne and James H.0 Connell, both formerly with Cassatt
& Co., have become associated with Burley & Co., N. Y., in their Investment department, Mr. Dunne as manager of sales.
' Foreign Exchange.
-Eldredge & Co. announce that Harley A. Watson has been admitted to
To-day's (Friday's) actual rates for sterling exchange were 4.85% ® partnership in their firm. They also announce the opening of an office in
4.85 13-16 for checks and 4.85 15-16®4.86 for cables. Commercial Chicago at 105 South La Salle Street.
on banks, sight, 4.S5%©4.85%; sixty days, 4.83% ®4.83%; ninety days,
-J.F. Baer, Woolsey Bill, John D. Caldwell, W.E. Detlor and Stephen
4.824; and documents for payment, 4.82% ©4.83%. Cotton for payment, 4.85%, and grain for payment, 4.85%•
Fay have become associated with Berties, Rawls & Jennings, Inc., N. Y.,
To-day's (Friday's) actual rates for Paris bankers'francs were 3.911-16@ in the retail sales department.
3.91% for short. Amsterdam bankers' guilders were 40.07%040.08
for short.
-Schmeltzer, Clifford & Co. in their current review discuss the outExchange for Paris on London, 124.21; week's range, 124.22 francs look
for the Stock Market and analyze Briggs Manufacturing and Conhigh and 124.17 francs low.
follows;
tinental
Can.
The week's range for exchange rates
Checks.
Sterling, ActualCables.
-Problems
of the oil industry are discussed in the Kissel, Kinnicutt
4.85 13-16
High for the week
4.86
4.85 9-16
Low for the week
4.85 13-16 Review for April, which also contains an article on Business Profits In 1930.
Paris Bankers' Frane-s-The Irving Trust Co. has been appointed trustee for an issue of 2nd
3.915-16
3.91%
High for the week
mortgage 6% gold bonds, due Oct. 1 1934, of the 58 West 47th St. Corp.
3.91
Low for the week
3.913-16
Germany Bankers' Marks-Lyon, Clokey & Co., members New York Stock Exchange, announce
High for the week
23.83%
23.83%
that Horace E. Hooper, Jr., has become associated with them.
23.79%
Low for the week
23.81
Amsterdam Bankers' Guilders-The Universal Leaf Tobacco Co., Inc., is the subject of a compre40.06
8hi
High for the week
40.09%
Low for the week
hensive analysis by MacKubin, Goodrich & Co., Baltimore.
40.08%
The Curb Exchange.-The review of the Curb Exchange is
given this week on page 2527.
A complete record of Curb Exchange transactions for the
week will be found on page 2555.
-The Bank of Manhattan Trust Co. has been appointed trustee for an
issue of6% gen. mtge. bonds of the Lumber Realty Corp.
-James Brainerd Kremer, III, is now associated with- Price & Co.,
165 Broadway, N. Y., in their retail sales department.
-Frank E. Mulligan, formerly with Kissel, Kinnicutt & Co., is now
associated with Wilson & Swain, New York.
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
For sales during the week of stocks not recorded here, see preceding page.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Afar.28.
Monday
Mar.30.
Tuesday 1 Wednesday iThursday
Mar.31.
Apr. 1.
Apr. 2.
Prickly
Apr. 3.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range Mee Jan. 1
On brats of 100-share lots.
Lowest.
Highest.
Railroads
$ Per share $ per share $ per share 8 per share! $ per share 3 Per share 888748
Par i Per share $ per share
1824 18334 18012 18252
184 187
9.900 Atch Topeka & Santa Fe_-100 1784 Jan 2 203/
183 18434 18412 187
1
4 Feb 24
*10878 107
106/
1
4 106/
1
4 10834 107/
1
4 10834 19084 *10684 107/
900
Preferred
100 1024 Jan 2 10712 Feb 24
1
4
98
97
.102 102
994 10014 98
97
1,300 Atiantle Coast Line RR-100 97 Apr 1 120 Jan 23
99
99
7414 7214 7334
100 8818 Jan 2 8778 Feb 24
7334 744 7234 74/
1
4 7312 7414 72
15,500 Baltimore de Ohio
79
79/
1
4 79/
1
4 79
Preferred
100 7214 Jan 2 8013 Feb 27
*79
7914 79
79
79
79
1,300
5912*5834 5934 5812 5812
1
4 59
Bangor de Aroostook
80
8012 '594 59/
900
60 5612 Jan 6 8834 Feb 26
112 112 *111 112
*110 112
110 110
Preferred
100 108 Jan 13 11312Mar 9
112 112
90
*58
85 '55
60
52
52
100 Boston de Mains
100 52 Apr 1 66 Feb 20
'55
65
"53
62
918 *9
10
9
*918 10
9
9
"9
2,500 Brooklyn & ()enema Tr_No par
8 Jan 14 1038 Mar 3
10
*574 65
574 5712 "5234 5712 *5312 56
No par 52 Feb 26 58 Mar 3
100
Preferred
*5312 55
63
64
6212 6258 63
6514 '62
8314 8218 83/
9,200 Bklyn-Manh 'Fran v t o No par 5834 Jan 17 89/
1
4Mar 2
1
4
9312 *93
*93
9334 *93
9312 *9112 9212 9012 9112
Preferred v t o
No par 85/
700
1
4 Jan 21 944 Feb 11
•814 7
8/
1
4 834
856 778
2,400 Brunswick Term & Ry Seo_100
512 Jan 20
714 714
7
7
94 Feb 10
411
/
4 4158 40/
1
4 411
/
4 40/
1
4 4114 404 4034 40
14,600 Canadian Paolflo
25 3812 Jan 18 45/
4012
1
4 Feb 24
41
4114 4012 41
4058 41
40 40/
1
4 40
12,500 Cheepeake de Ohio
25 3912 Jan 2 464 Feb 10
4012
'158 11
/
4
158
1/
1
4
112 112
III 112 *112 172
100
/
1
4 Jan 2
900 Chicago & Alton
234 Jan 12
412
1
11
/
4
1
1
118
118 *1
11
/
4 *1
500
Preferred
100
14 Jan 2
11
/
4 Jan 12
612 658
814 614
614 814
6
6
5/
572 Apr 2
1
4 612
2,800 Chicago Great Weetern_100
7/
1
4 Feb 10
2318 2312 23
2314 2234 2234 21
2278 211
/
4 22/
1
4
100 1914 Jan 14 26/
4.500
Preferred
1
4 Feb 25
638 612
632 8/
1
4
6
8/
1
4
534 6
5,000 Chicago Mile' St Paul & Pao_
514 Jan 2
6
1
4 Jan 23
814
8/
9/
1
4 1012
912 10
952 1018
9/
1
4 9/
1
4
9/
1
4 9/
1
4
11,400
Preferred
918 Apr 1 1522 Feb 10
3514 354 35
3512 3514 3512 3458 3518 35
3,500 Chicago & North Western_100 33 Jan 2 4512 Feb 24
3514
11312 11312 *11112 116 *11134 116 *111 116
100 103 Jan 8 116 Mar 18
Preferred
11134 1111
300
/
4
5734 5812 5712 574 57
57
5638 5812
9,500 Chicago Rook Del & Pacdflo_100 4714 Jan 2 6513 Jan 27
5712 66
'9912 100
100 100 *100 101 *100 101 "100 101
100
7% preferred
100 94 Jan 3 101 Mar 24
"89
90
89
89
89
100 84 Jan 8 90 Jan 28
89
88/
1
4 88/
1
4 89
89
8% preferred
400
*37
48
*37
48
*37
48
*37
48
100 38 Apr 2 48 Jan 9
38
38
100 Colorado & Southern
*34
37
*34
37
*34
37
*34
35
34
34
500 Conaol RR of Cuba pref-100 34 Apr 2 4212 Feb 24
139 139 *137 13812 13514 137
*139 142
13234 134
100 13234 Apr 2 15714 Feb 25
8,500 Delaware & Hudson
764 77
76
78
75
7612 7434 7434 274
75
2,100 Delaware Lack & Western_100 74 Mar 28 102 Jan 8
*33
36
*33
36
33
33
32
32
*29
32
1
4 Jan 2 4514 Feb 10
200 Deny & Rio Or West pref_100 27/
28
29
2734 28
2714 28
2834 27
2658 2655
100 26/
1
4 Apr 2 3934 Feb 24
8,200 Erie
*381 3912 *3812 39
3812 381
3812 3812 '36/
1
4 3813
100 3812 Mar 31 4512 Feb 27
200
First preferred
•32
36
*3114 39 "32
381 *3114 36
100 38/
1
4 Mar 24 404 Jan 5
*32
36
Second preferred
63
6212 83
63
6314 6312 62
624 8112 811:
1
4 Feb 24
2,500 Great Northern preferred 100 5812 Jan 2 69/
*2114 2412 *2114 22
2058 2114 20
2058 20
1,500 Gulf Mobile & Northern_100 1618 Jan 19 2714 Feb 17
204
62
62
*56
63
*55
58 '41
45
*55
83
100 5112 Feb 10 75 Jan 9
100
Preferred
411
/
4 4118 41
41
*41
42 "4012 42
41
41
100 37 Jan 15 4418 Feb 17
300 Hudson & Manhattan
72/
1
4 7278 7112 7212 69
71
674 68
8714 6814
100 671 1 Apr 2 89 Feb 24
4,200 Illtnols Central
'51
52
"52
54
*52
54
*51
54 '51
54
Stock
RR See stook certificates__ 52 Mar 11 61 Jan 23
26
27
26
26
2514 2814 2534 26
2458 25
3,700 Interboro Rapid Tran•t o_100 2412 Jan 19 34 Mar
38/
1
4 38/
1
4 *38
40 '37
3912 35
37 '30
3814 Exchange
100 35 Jan 2 45 Feb 2
100 Kamm City Southern
57 60
*5712 8372 *57
60 '57
58 '57
58
100 53 Jan 2 84 Feb
Preferred
54
54
*54
55
54
54
54
54
5312 54
Closed
50 52 Mar 18 61 Jan
1,200 Lehigh Valley
8714 8714 84
85
90
90
90
90
91
91
100 84 Mar 30 111 Feb
1,100 Louisville &Nashville
34
3414 33/
1
4 3312 33
3432 3312 34
3212 33
Good
6,400 Maahat may modified guar100 321:Apr 2 39 Feb 2
20
20
*1978 2112 *20
211 *20
22
19/
1
4 1972
300 Market St Ry prior pref 100 15 Jan 3 22 Feb 1
12
12 .
/
1
4
12
*/
1
4
1
*/
1
4
/
1
4
•
/
1
4
12 Friday.
4 Jan 7
/
1
4 Jan 1
100 Minneapolis & St Louls_100
7/
1
4 77
7/
1
4 71/4
*712 81
718 Apr 2 1112 Feb 10
*712 8
'7/
1
4 8
300 Minn St Paul & El 5 Marie,100
•4118 44
4118 411
/
4 *43
44
43
43
44
100 4112 Mar 30 45 Mar 11
44
60
Leased lines
19/
1
4 1918 1818 1812 1838 19
1
4 Jan 20
18
'5,800 Mo-Kan-Texas RR-_No par 1718 Apr 2 26/
1812 1718 1838
78
79
100 70 Jan 2 85 Jan 16
774 7712 7612 771 *70
75 '60
1,000
Preferred
7278
3014 3058 2958 30
100 2912 Apr 1 4234 Feb 16
2958 30
1,500 Missouri Pacific
294 29'3 30
30
100 864 Jan 2 107 Feb 11
Preferred
874 8712 8712 88
88
88
87
871
88
88
800
100 72 Mar 31 80 Feb 25
*73
77
77 "72
77
140 Nash Chatt & St Loula
*73
77
72
73 "72
12 Jan 5
158 Jan 3
5,
100 Nat Rys of Mexico 2d pref _100
*1
/
4
52 '
38
13
*38
52
38
"/
1
4
12
109 1094 107/
100 106 Apr 1 13214 Feb 24
10612 108
23,200 New York Central
1
4 10912 10834 11012 106 109
89
*88
7212
100 69 Apr 1 88 Feb 11
"70
75
70
200 NY Chia & St Loula Co
70 "70
7212 69
100 83 Mar 30 94 Mar 9
86
85
85 "84
85
500
Preferred
*83
87
83
84 "84
50 165 Jan 2 227 Feb 24
19312 19312 *185 190 *185 190
20 N.Y.& Harlem
187 187 *185 195
84
79
80
8,300 N. Y.N.H.& Hartford-100 75 Jan 2 9478 Feb 24
8558 8714 84
8514 83
8412 79
1
4 Feb 24
110 Jan 3 119/
11712 117/
1
4 11778 117/
1,600
Preferred
1
4 "117 11734 117 1171 11612 11878
572 Jan 2
8 Jan 9
600 N.Y.Ontario & Western_100
7
7
"7
714
6/
1
4 714 *852 71 '
6'11 715
2 Feb 27
1 Jan 2
100 N. Y. Railways pref-No par
*1
112
114 114 *1
11
/
4 •1
158 •1
113
6
8/
1
4 Jan 9
67
6
100 Norfolk Southern
100
6 Jan 3
"6
678 *6
672 *6
714 *6
19714 19712
100 196 Mar 23 217 Feb 26
1,000 Norfolk & Western
197 197/
1
4 19612 19612 19934 199/
1
4 "198 200
931 "92
130
Preferred
100 89 Jan 8 93 Mar 31
*92
9212 92
9238 9212 93 "92
9314
1
4 Jan 27
4834 49
8,200 Northern Pacifle
100 4714 Jan 2 60/
5038 51
504 50/
1
4 5058 5112 4812 51
612
8512 678
*2
7 Mar 23
83
100
4 Jan 10
100 Pacific Coast
54 54 *5
6/
1
4 "2
50 55 Mar 30 64 Feb 10
5614 57
55/
1
4 5512 5814
30,500 Pennsylvania
55
561
/
4 5514 5634 55
100
514 Mar 25
94 Jan 9
*5
71
*5
712
Peoria & Eastern
114 *512 712 *5
74 *5
Pere Marquette
100 85 Mar 25 85 Feb 10
*55
721 *52
75
7212
*55
75 "52
7212 *52
87
100
86
Jan
20
924
Feb 25
*69
10
Prior preferred
*7014 88
88
__
87 "704 87
88
70
*59
100 7338 Mar 24 80 Jan 8
*8014 713g*,_ 7338 *6014 7314 "6014 70
Preferred
70
594 8014 59
300 Pittsburgh & West Virginia 100 59 Mar 30 86 Jan 9
75 "58
59 "60
75
*58
7212
50 72 Apr 2 9712 Feb 11
5 84 "734 78
72
500 Reading
75
73
*75
78
46
45
100
First preferred
.50 45 Mar 20 46 Jan 6
45
48 "45
*4434 46
*45
*4412 48
*4358 4634 *4358 4834 *4358 46/
Second preferred
60 44 Jan 10 47 Jan 16
1
4 463 "4358 45
1
4 *43/
3914 40
4.300 St Louis-San Francbsoo___100 35 Mar 18 8234 Jan 27
3812 39
3612 37
3734 3858 3852 371
55
100 53 Apr 2 76 Jan 27
594 5914 59
53
900
First preferred
59
*57
5912 5512 551
31
100 St. Louie!Southwestern--100 23 Jan 2 3312 Jan 9
2358 2358 *2312 31
*21
*23
*2112 23
30
59
Preferred
100 39 Mar 18 60 Feb 24
*35
55
*31
*35
55
59
*35
55
"31
11,200 Seaboard Air Line
11
/
4 Jan 12
100
12 Jan 2
84
34
34
54
32
72
54
78
84
3
118
218 Jan 12
11
/
4
114
114
1
1
600
Preferred
100
1 Jan 2
1
1
114
114
9914 9912 9734 99
19,400 Southern Pacific Co
100 92 Apr 1 10912 Feb 11
95
93
9414
954 99
92
44
5058 51
43
12.000 Southern Railway
100 2111g Apr 1 11572 Feb 10
49
5038 4518 4918 x4118 43
74
7412 7412 7412 75
74
2,300
Preferred
751
100 74 Mar 31 83 Feb 10
74
74
74
95
*40
95 "5012 95
Texas & Pacific
100 90 Mar 10 100 Jan 14
*5012 95
*5012 95 "80
758 758
600 Tilled Avenue
8
8
100
618 Jan 5 10 Mar 6
712 7/
712 712
1
4 "712 8
11
11
11
11
1012 1012
500 Twin City Rapid Transit-100
/
4 Feb 17
"10
11
*1012 11
9 Jan 22 171
.48
50
*45
"4114 45
20
50
Preferred
100 4114 Jan 17 82 Feb 9
45
45
*4114 55
184 18514 183 186
9,100 Union Pacific
184 186
18012 182
100 17934 Jan 2 20512 Feb 24
18112 185
.858, 8614 "8558 8614 8
86
200
100 8358 Jan 5 8614 Feb 24
"85
Preferred
*1812 1812 16
500 Wabash
1612 1614 1614 *1412 17
*1412 17
100 16 Mar 30 26 Jan 9
3114 3114 32
*31
35
33
100 3114 Mar 30 51 Jan 9
200
Preferred A
32
*29
*29
34
1538 1558 15
1538 15
1512 15
5;800 Western Maryland
1452 1434
100 13/
1
4 Jan 2 1958 Feb 24
15
*15
1812 "15
1812 "15
Second Preferred
1812 "15
1812
100 16 Jan 6 20 Feb 24
181 *15
*12
13
12
12
"1114 12
200 Western Paelfie
100 10 Jan 3 1471 Feb 9
1114 111 *11
1112
*25
28
25
25
"23
24
26
24
200
Preferred
1
4 Feb 24
*23
26
100 24 Apr 2 31/
1058 1112 1032 1034 1012 10/
878
ups
1
4
9
4112 42/
1
4 *41
4212 41
42
39
4012 41
*3012 3434 3418 341
/
4 34
36
"3318 36/
1
4 *31
*105 10512 "105 10512 10512 10512 *10512_ '10512
2012 2032 1934 20
1912 20
97g
193s -1.
1918
*87
88
87
87
87 87
88
90
9034
3112 3112 31
314 313s 32
1
4 3112
311
/
4 32/
*2212 23
•2238 2318 22/
1
4 2214 *2212 23
2212
984 984
912 912
Pa 912
8
94 *8
---- ---- ---- ---- ---- ____ ___ ____ ___12
12
12
12
12
12
12
12
*12
9334 9514 9358 95
x9238 9458 90/
1
4 92/
1
4 8938
634 634
84 64
8/
1
4 7
612 7
812
els
3912
3812
1084
19/
1
4
9034
324
2212
9
---NI
9312
84
-1078 -1-1-5-8 -11- -1141
8 -13;8 15- -1314 ili -i2i8 I31-4
8,400
1,500
500
10
12,300
720
3.700
200
1,800
2,400
46.100
1,500
421,500
Industrial & Miscellaneous
Abltibl Power & Paper_No par
8/
1
4 Apr 2 1414 Feb 26
Preferred
100 39 Feb 19 52 Feb 28
Abraham & Straus----No par 25 Jan 22 36 Mar 31
Preferred
100 100 Jan 8 10512M2231
Adams Express
No par 161
.Jan 2 2312 Feb 24
Preferred
100 8312 Jan 5 9112 Mar 17
Adams Mills
No par 224 Jan 14 3318 Apr 1
Addressograph lot CorpNo pax 21/
1
4 Jan 15 2312 Feb 2
Advance Rumely new. No par
54 Mar 13 1138 Mar 17
DA 11/
Preferred
1
4 Jan 29 2012 Feb 16
I
8. jan 8
/
1
4 Feb 27
Ahumada Lead
Air Reduction Inc__ _No par 89/
1
4 Apr 2 10938 Feb 24
Air-way Elea AppllanoeNo
par
612Mar 18 1038 Feb 24
4 Jan 5
Ajax Rubber Inc
/
1
4 Jan 3
No par
Alaska Juneau Gold Min___10
7 Jan 2 15 Mar 31
..
•Bid and asked prim. no sales on this day. .60% stook dividend Paid. s Ex-dividend. pEx-rigina. •In-dividend And el-r181554
PER SHARE
Range for Previous
Year 1930.
Lowest.
Highest.
3Per share 3 Per share
188 Dec 2424 Mar
100 Dec 108/
1
4 Sept
9514 Dec 17512 Mar
55/
1
4 Dec 12238 Mar
7014 Dec 8458 July
5018 Dec 844 Mar
10612 Dec 11614 June
44 Dec 112 Feb
611 Dec 157k May
53 May 6611 May
55/
1
4 Dec 783s Mar
83 Dec 9834 Sept
514 Nov 3358 Apr
1
4 May
3514 Dec 52/
3218 Dec 5138 Sept
38 Dec 10 Apr
14 Dec 1058 Apr
4/
1
4 Dec 1734 Mar
12 Dec 623s May
1
4 Feb
414 Dec 26/
714 Dec 4814 Feb
2812 Dec 8978 Feb
101 Dec 14034Jeme
45/
1
4 Dec 1254 Feb
92 Dec 110/
1
4 Mar
81 Dec 1044 Mar
404 Dec 95 Feb
30 Dec 62 Apr
13018 Dec 181 Feb
8912 Dec 153 Feb
254 Dec 80 Mar
2218 Dec 8334 Feb
1
4 Feb
27 Dec 67/
26 Dec 824 Feb
51 Dec 102 Mar
104 Nov 4812 Feb
5538 Nov 9814 Mar
1
4 Mar
3478 Dec 53/
1
4 Apr
6544 Dec 136/
58 Dec 77 May
2058 Jan 3912 Mar
34 Dec 8538 Mar
53 Dec 70 Apr
1
4 Mar
40 Nov 84/
84 Dec 13812 Apr
24 June 424 Sept
13 Dec 2512 Feb
24 Apr
/
1
4 Oct
8/
1
4 Dec 85 Feb
1
4 Feb
41 Nov 59/
1
4 Apr
1472 Dec 68/
60 Dec 105/
1
4 Mar
2038 Dec 9812 Mar
79 Dec 14512 Mar
70 Dec 132 Mar
/
1
4 Dec
11
/
4 July
1054 Dec 19214 Feb
73 Dec 144 Feb
75 Dec 110/4 MU
152 Dec324 Feb
8758 Dec12818 Mar
10618 Dec 1354 Mar
3/
1
4 Dec 1714 Mar
1
Oct44 Jan
44 Dec 3312 Feb
1814 Dec 285 Feb
83 Feb924 OM
42/
1
4 Dec 97 Feb
34 Dec 1972 Ape
53 Dec 861/4 Max
4/
1
4 Dec 2412 Mae
Ms Dec 18412 API
90 Dec 101 May
9112 Oct 99 Ape
4812 Dec 1211
/
4 Feb
73 Dec 14118 Feb
4418 Mar 53 Feb
46 Dec 57 Feb
3934 Dec 11872 Mae
8212 Dec 101
Ape
1712 Dec 7634 MAY
35 Dec 9454 July
12 Dec 124 Feb
18 Dec 28 Feb
88 Dec 127 Feb
464 Dec 13654 Jan
76 Dec 101 Mar
85 Dec 145 Apr
4 Dec 1512 Mai
712 Oct 3118 Jaz
4434 Dec 79 Feb
18811 Dec 24214 Mai
8214 Jan 8818 Sept
1114 Dec 6718 API
89 Dec 8914 Ape
10 Dec 36 Mal
1114 Dec 38 Mat
712 Dec 3012 Mai
23 Dec 534 Mae
8
38
21
102
144
8018
21
24
Dec 4218 Ape
Nov 8812 Ape
Dec 88
Ape
Nov 11012 Aug
Dec 3718 Max
D
94 Sept
Oct 32 Mar
Dec 3414 June
10 Dec 4114 Jan
4 Dec
11
/
4 Mae
8712 Dec 15658 June
614 Dec 36 Max
14 Dee
24 Jan
412 June
914 Jan
2538
New York Stock Record-Continued-Page 2
roe sates during the week of stocks not recorded here, see second page preceding.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Mar.28.
Monday , Tuesday 'Wednesday
Mar.30. 1 afar.31.
Apr. 1.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range Since Jan. 1.
On haste of 100-share lots.
Lowest.
Highest.
Thursday
Friday
Apr. 2.
Apr. 3.
$ per share $ per share $ Per share $ Per
share 1$ Per share $ per share Shares Indus. & Miscell.(Con.) Par $ per share $ per Moss
8
8
•74 8
*74 734
712 71
500 A P W Paper Co
812 Feb 10
•74 734
No Par
618 Mar 7
918 9%
9
94
81
914
834 91s1 834 9
32,100 Allegheny Corp
No par
734 Jan 2 1234 Feb 24
49 49
48
48
48
48
46 4712 45
Fret A with $30 warr___100 3934 Jan 2 5918 Feb 25
4612
1,600
*454 4912 845 4818 4538 453s 454 45,4 *4214 45
Pre! A with $40 warr--100 3934 Jan 2 59 Feb 11
200
*-__ 47 *40 47 •___... 4612 __ 45 1*____ 45
Fret A without wary
100 498s Jan 23 5512 Feb 25
1484 153
142 14912 14112 146
140 143121 135 14112
72,500 Allied Chemical & Dye_No par 135 Apr 2 18234 Feb 24
*12212 124 '123 124
124 124
Preferred
100
---100 122 Jan 3 12412 Mar 4
3412 35,2 3334 3434 34 35
33% 344 3314 -3-410,800 Allia-Chalmers Mfg_No par 328,2 Jan 2 4284 Feb 26
1538 1534 155 1538 18
16 z1514 1534 1514 1534
2,600 Alpha Portland Cement No par 1412 Jan 13 In Feb 9
1912 19% 19
19
1912 20
194 20
1918 1934
No par 1712 Jan 2 23 Mar 21
2,000 Amerada Corp
574 574 5.584 56
5514 56
55
55
56
3,100 American Bank Note
10 54811 Jan 3 6284 Feb 13
*6414 66
6414 6414 *644 647 *64,4 64% 6414 6414
Preferred
50 62 Jan 7 6614 Feb 26
130
37
'3,4 4,4 *314 414
37
4
4
*314 37
200 American Beet Sugar-No Par
212 Jan 26
434 Jan 9
*341. 35
344 348 34
344 34
3434 3414 3414
1,500 Am Brake Shoe & Fdy-No Par 32 Jan 2 38 Feb 24
*122 124% 122 12438 122 122 •____ 124 1.____ 12134
Preferred
100 118 Jan 13 1243,Mar 10
10
8% 914
814 834
84 84. 734 814, 734 8
5,600 Amer Brown Boverl El_No Par
734 Apr 1 123$ Feb 24
50 50 .51
52
*5014 514' *5014 5134 504 504
Preferred
100 4514 Jan 12 63 Feb 20
20
12114 124% 12112 123% 1224 125
12112 124 1 12034 12378
135.000 American Can
25 10614 Jan 19 12934 Mar 26
.14938 150 150 15012 '14934 15012 .1493, 15034 .14938 15014
Preferred
100 145 Feb 4 15012 Mar 30
1.000
3212 321
317g 32
31
3112 3112 3112 3012 31
1,200 American Car & Fdy...No par 27 Jan 2 3834 Feb 24
8412 842 .80 86 •81
86 1 *83 86
Preferred
%
8434 84',
100 748s Jan 5 86 Mar 18
200
364 3612 37
37
37 3714 3512 35,2 35
No par 29811 Jan 20 4384 Feb 24
35
1,200 American Chain
454 4534 444 45
4512 4614 4534 4612 45
5,300 American Chicle
No Par 3814 Jan 2 4838 Mar 20
4534
1812 19 *18
19 •17
19 1 .1638 19 1 •135 18,2
400 Amor Colony pe Co__ __No par 1414 Feb 3 2114 Feb 27
834 9
9
9
814 9
814 834
5,800 Am Comae' Aloohol___No par
814 Mar 31 1412 Feb 16
814 831
•13
14
13
13 *1312 15
411312 15 1 .13
15
200 Amer Enoaustio Tiling-No Par
9 Jan 8 16 Mar 2
307 3112 30
301
2914 30 I 29
30 30
30
2,500 Amer European SeolL-No par 19 Jan 2 331s Feb 24
415
3938 4218 404 4234 404 41% 381, 4138
67.300 Amer ar For'n Power-No par 2634 Jan 19 5134 Feb 24
*97 9814 96
96's 98's 984 99 99 1 9812 9312
900
Preferred
No Par 8514 Jan 3 100 Mar 20
6912 70
68
70
67 75 I 69 69 1 65 67
2d preferred
2,700
No par 65 Apr 2 7912 Feb 25
*85 88
85,2 8512 85,4 89
86 86 I 8514 8512
$6 preferred
2,000
No Par 74 Jan 8 90 Feb 28
7
7
63, 64
678 7
634 734 *64 7,2
900 Am Hawaiian S S Co
10
Os Mar 31 1038 Jan 9
57
51
73
6
612 8 I 614 6,
4,400 American Hide & Leather_100
2
8 Mar31
13$ Jan 7
5,2 6
21'8 21'8 23 2912 27% 29 *254 273s 27 27
Preferred
3.500
100 1012 Jan 8 2912 Mar 30
603s 6012 593 60,2 *593, 61
5914 60 I 594 5912
3.500 Amer Home Products-No Par 4T8s Jan 2 64 Mar 20
2034 30
30
301s 30
3012 30 30141 30 30
2,100 American tee
No Par 2334 Jan 19 313s Feb 9
1834 1914 1812 1914 1834 194 1812 19 1 1734 1872
16,300 Amer Internat CorD
No par 1734 Apr 2 26 Feb 28
58
3
*3
7
*3
78
*34
78
*78
1
11$ Jan 9
5,200 Amer L France & Foamite_10
11$ Jan 5
8
8
.7
8 1 8
8 I .712 8 1
8
8
70
6 Feb 21 12 Jan 9
Preferred
100
27 27
26
2612 .2612 28
26
26
2612 .25
1,200 American L000motIve_No Par 203,4 Jan 2 3034 Feb 26
.79 85 .82 83 , .82 83 •82 83 1 *82
83
Preferred
100 7214 Jan 3 8434 Mar 6
37 38
3834 37 1 37 3834 367k 3714 371s 3814
12.800 Amer Mach & Fdy new-No Par 31 Jan 2 4334 Mar 19
*414 5
4
414
4
4
414 414
414 47
312 Jan 1
1,000 Amer Mach & Metals_No pa
7 Mar 2
1912 20
187, 1834 19
20
1934 197, 1812 19
1,700 Amer Metal Co Ltd___No par 1688 Jan 30 2334 Feb 24
*75 84 1.75 84 .75 84
*751: 84 1 .7512 84
Preferred(8%)
100 89 Feb 21 8912 Feb 5
19
1912 1714 1834 1714 1912 1612 1812 173 18,4
1,580 Amer Nat Gas prof __ .No pa
3988 Jan 20
1612 Apr
5212 55
5114 5214 5114 533* 51
5212 491 5214
14,700 Am Power & Light_No Pa
648s Feb 26
45 Jan
.101 103 102 102 .10112 103 *10112 103 I 102 102
300
Preferred
102 Mar 27
No pa
948s Jan
•83 84
83 83
83 83 .8012 84 .8012 84
100
Preferred A
833$ Mar 20
No par 78 Jan
83 84
834 834 83% 8434 8414 844 8412 844
1,400
Pref A stamped
8434 Mar 12
No pa
80 Jan
1814 191s 18
1834 181s 18% 18
1812 18
34,300 Am Rad & Stand San'y_No pa
18%
2112Mar 20
1512 Jan
812 812 *712 9
9
9
*8
912
400 American Republios
84 814
Jan 13 123$ Feb 27
No par
7
29
30
29 2912 294 3034 2918 294 2914 3034
25,400 American Rolling Mill
37% Feb 20
25 2812 Mar
5718 58
5712 58
56
*57 574 57 5714 55
2,400 American Safety Rasor_No pa
55 Apr
66 Feb 26
*712 8
.712 8
*712 8
41712 8
.712 8
Amer Seating v t o____No pa
9 Feb 13
612 Jan 30
118
118
1
1
14 14
1
14
Vs 14
1,200 Amer Ship & CommNo par
84 Jan
18s Feb 27
*374 394 *374 3914 *3712 3914 .3712 3914 .3712 3914
Stock
Amer Shipbuilding new_No pa
42
37
Jan 6
Jan
1
44 454 44 4512 4534 473* 4518 4614 45
4614
16,800 Amer Smelting & Refg_No pa
5812 Feb 24
4012 Jan
1374 13734 •137 13834 .137 13834 .13712 1383, 13714 1371 Exchange
400
Preferred
100 129 Jan
13811
Mar
27
1007s 100% 10012 100% *10034 101
101 101
101 10114
1,800
oum 26 pref
100 9312 Jan
10284 Mar 12
404 41
40,4 4014 40 4012 41
Closed
4114 .40 41
800 American Snuff
25 37 Jan
4214 Mar 10
•10.534 109 •10534 109 .1084 109 1 10814 10814 *10814 109
30
Preferred
100 108 Jan 20 10934 Mar 13
Good
234 24
23, 234
2,2 241
2,2 23,
3,700 Amer Solvents & Chem_No pa
213 24
44 Feb 16
212 Jan
*612 7 1 •64 7,2 *64 712
6
900
612
534 618
Preferred
1112 Feb 24
534 Apr •
No pa
26
26
26 I 26
25'4 2518 Z2412 25
2414 2458 Friday.
2,900 Amer Steel Foundries_No pa
24,4 Apr ' 3114 Feb 20
111 111 *111 112 *111 112 I 111 111 *111 112
90
Preferred
100 110 Jan 13 113 Feb 20
4612 4734 48'E 4612 4612 4634 46
46
46
46
700 American Storm
37 Jan 7 4814 Mar 10
No pa
5414 505
54
55
53 5314 *53
55
53 5334
2,800 Amer Sugar Refining
100 4234 Jan 5 60 Mar 25
*108 10834 1085s 10834 108 10812 108 108 '10712 10814
600
Preferred
100 96 Jan 2 10812 Mar 16
8
818 818
84
8
8 1 8
8
8
8
1,600 Am Sumatra Tobaeoo_ _No pa
8 Jan 12 111s Feb 13
-I Amer Teleg 44 Cable Co_ _100 1514 Jan 12 231$ Feb 18
1171514 1-9314 18738 19012 18712 19078 18614 189
18614 189,4
93,092 Amer Telep & Teleg
100 17812 Jan 2 20184 Feb 26
115 1154 114 115 114 11414 11318 114'2 11334 1154
8.100 American Tobacco new WI 2 104 Jan 2 12012 Feb 24
11634 11812 116% 11714 11618 11734 1154 11713 116 11812
16,100
Common elms B new w L2 10484 Jan 2 12212 Feb 24
12712 1277 1277* 128
128 128 I 128 12838 •128,2 129
1,200
100 12414 Jan 3 12812 Feb 4
Preferred
•97 100 *98 100 •98 100 *98 100 1 z96
96
100 American Type Foundere._100 90 Jan 24 105 Jan 16
*108 111 *1084 110 "10814 111 *1131314 111 1x10934 10934
331 Preferred
100 105 Jan 21 11012 Feb 28
, 63 66! 60 6514 58
6334 665
664 69
6114
36.200 Am Water Wks & Eleo_No Par 54 Jan 15 8084 Feb 26
.
105 105'2 .105 1054 "105 10541 105 105 •10412 105,4
1001 1st preferred
10114 Jan 29 107 Mar 19
81
84 9
84 914i
834
84 914
3,200 American Woolen
8% 10
100
Vs Jan 2 118s Jan 12
33 3414 3234 35
344 354 344 351s 354 37
9,9001 Preferred
100 21 Jan 2 394 Mar 23
212 212
212 212 .212 27
.212 2% .212 2%
500 Am Writing Paper etfe_No Par
4 Jan 23
2 Jan 3
•14
20 *1312 20 .1234 20 I .1234 1934 •1234 1934
Preferred eertifieatee__ _100 14 Jan 13 18 Feb 20
612
812
6
6121 6
412 Jan 2
611 *6
1,600, Amer Zino Lead & Smelt___25
6 1
884 Feb 20
534 534
38
38 .35 40 *35
36141 3614 3614 35
700
354
25 26 Jan 10 4034 Mar 11
Preferred
3212 33
32 331s 32% 3312' 3212 33 1 3212 33
58,900 Anaconda Copper Mining-50 2934 Jan 3 4314 Feb 27
26 26
400 Anaconda Wire & Cable No par 22 Feb 4 2614 Mar 10
*2514 257s 257 258 255 2534 *2514 254
30 30
29 30 1 2878 29 1 28
291
: 30
2834
2,200 Anehor Cap
No par 27 Jan 2 36 Feb 21
*1434 16
1434 1434 "1434 17 I •147, 17 1 1412 1434
400 Andes Copper Mining_ _No par 138$ Jan 12 012 Feb 27
1574 16
15
1534 1412 1518 14
14.500 Archer Daniels Micli'd_No par 10 Apr 2 18 Feb 4
1434, 10
1334
52
53 53
52 1 .52
52
53 1 •51
400 Armour & Co.(Del) prof _100 49 Mar 30 72 Jan 7
53 1 *52
238 234
24 24
234 234
24 234, 23s 234
5,100 Armour of Illinois elms A___25
44 Jan 6
Vs Mar 25
38$ Jan 7
184 Mar 23
Class B
3,300
134 134
134 1141
134
25
134 178
1731
134 134
25 25
2312 2334 24
24
2412 2412 241s 2412
700
Preferred
100 2312Mar 30 47 Jan 6
711$ Feb 26
512 6
67
200 Arnold Constable Corp.No par
.13
•6
64 •6
Ps Jan 2
6781 *814 673
*8
9
9
.7
9 I •7 9
.7
9
'7
Artioons Corp
5 Jan 13 1012 Feb 26
No par
22
2212 22
22 2212 22 22
8,900 Associated Apparel Ind-No Par 19% Mar 11 288s Feb 10
2234 22
224
25
2512 247 247 I 2434 255
2414 253* 247 26
6,000 Assoc Dry Goods
No par 22 Jan 2 29% Mar 20
35 •30
31 .30
35
32
70 Assoolated 011
31
.
31
30
30
25 2612 Jan 2 31 Feb 18
.3112 33% *3112 3312 *3112 33,4 *3112 33 .3112 32
All 0& W I 58 Line_No par 31 Jan 28 39 Jan 7
.
4812 49 •4812 49 4812 48% 4812 4812 4314 4812
300
Preferred
100 4811 Apr 2 Fah Jan 21
19,800 Atlantic Relining
1812 18% 1834 1834 .1734 183e 1714 18
1834 19
25 1714 Apr 2 2338 Feb 24
42 42 •41,4 41% •41,4 4174 424 424 *414 43
300 Atlas Powder
No Par 42 Mar 28 54 Feb Ii
9812 *98
20
*9713 9812 9712 97% .9712 98,2 •98
Preferred
100 95 Feb 4 9982 Jan 16
98'2
1112 1112 *Ills 1112 •1118 1112 114 111s 11
500 Atlas Stores Corp
8% Jan 2 1312 Feb 10
Ws
No Par
3
312
3
.3
312
3
312 Jan 5
312 *3
*3
282 Feb 9
3
300 Atlas Tack
No Par
103,200 Auburn Automobile-No par 10112 Jan 14 25112 Mar 25
22312 23812 219 227 225 2364 22312 232 1 226 239
17
212
176 *2
Ifs Feb 26
300 Austin Nichol'
24 214 .23s 312
21 1 Mar 30
.218 3 1
No par
21/ Feb 16
300 Autosales Corp
1 Jan 2
112 112
*112 178 "11,2 178 *112 17
V2
112
No Par
5 Feb 27
*312 4 i *312 4 I *312 4
.314 4 1 *312 4
284 Feb 3
50
Preferred
412 43
434 47
13.300 Aviation Corp
434 5 1
61s Mar 2
3 Jan 2
412 434
No par
412 47
14,300 Baldwin Loco Works No par 2034 Jan 2 2788 Mar 19
2514 253*1 2434 251, 2434 2534 243, 2434 2415 242
99
220
Preferred
100 1181$ Jan 2 10412 Mar 19
100 100 1 100 100 *100 103 100 100 1 99
103 1034 102 1024
104 104
980 Bamberger (L)& Co pref 100 102 Apr 2 107 Feb 11
*104 105 *104 105
73
5% Mar 24 10 Jan 2
30 Barker Brothers
•6
734 .64 734 *614 754
6
No par
6
*6
50
50 .35
50 *35
I Preferred
100 54 Feb 10 80 Mar 10
*35
53 1 .35 50 .35
1 104
17,200 Barnsdall Corp class A
114 104 11
10,
25 1014 Apr 1 1412 Feb 26
113* 114 114 114 11
25
No par z2414 Mar 31 33 Jan 19
140 Bayuk Cigars Inc
254I 25
.
25 27 1 .25 26 22414 2414 25
70
8814 8814 8814 881 4
100 8712 Jan 2 90 Mar 5
First preferred
90 90 .8814 90
.90 91
4,000 Beatrice Creamery
734 731.
76
77
75 7512 7434 7512 7312 74
50 65 Jan 2 81 Mar 19
1 Preferred100 106 Jan 15 111 Mar 16
.
1104 111 '110 111 '110 11034 .110 11084 *1104 111
1,500 Beech-Nut Packing Co__20 50 Jan 15 60 Feb 11
59
59', 59',
59's 59
59
59 59
59 59
4 Jan 30
Belding Hem'way Co_ _No par
21s Jan 15
✓234 3
81234 31., *234 312 .284 314 .234 31.
100 Belgian Nat Rye part prof-- 78 Jan 5 8044 Jan 22
8 81 I .791 8014, 794 794
.
794 804 .794 804 '79,
21
49,100 Bendix Aviation
No par 168, Jan 2 2512 Feb 24
214 22% 204 21% 20% 214 204 2134 20
414 423
6.900 Beet & Co
434 414 43
424 434 424 43 1 43
No Par 3214 Jan 13 4614 Mar 19
157,200 Bethlehem Steel Corp
5614 5814 5614 577
100 453$ Jan 19 708s Feb 26
5634 59 1 5634 577k 5634 581
1,300
121 121
123 123 123 123 1 122 122 I 121 121
Preferred(7%)
100 11412 Jan 5 12388 Mar 8
3,500 Blaw-Knox Co
254 26 1 254 26
254 254
No par 24 Jan 2 29 Feb 21
257 264 253* 26
20, Bloomingdale Brothers-No Par 1612 Jan 5 203/Mar 25
2034
*18
18
2034 *18
18
.
18% 2834 .18 20
94
250, Preferred
*91
95
95 *91
90 934 91
100 90 Mar 30 95 Jan 9
91 1 .91
1 Blumenthal & Co pref____100 751s Jan 15 7512 Jan 15
.
1 8212 85 ' .8212 85 , .8212 85 "8212 85 .8212 85
. 3514 3712 WI 3612 351 a 36114 3478 354 34
9,8001 Bohn Aluminum & Br...No par 2054 Jan 2 3934 Mar 27
3612
1
• BM and asked prices. no sales on this day. a Ex-dividend. p Ex•righta.
PER SHARE
Range for Frontons
Year 1930.
Lowest.
Highest.
yw share $ per share
6 Dee 1512 Feb
584 Dec 3514 Mar
3614 Dec 10712 Feb
3712 Dec 9934 Apr
8434 Oct 9614 Feb
17014 Dec 843 Apr
12034 Dec 12614 Apr
3114 Dec 68 Mar
111$ Dec 4214 Mar
1612 Dee 311s June
4512 Nov 9738 Mar
6014 Nov 6684 Jan
21s Dec 12 Jan
30 Dec 543s Mar
118 July 128 Feb
614 Oct 2184 Apr
38 Oct 84 Sept
10411 Dec 15812 Apr
14014 Jan 15084 Oct
241s Dee 8212 Feb
70 Dec 116 Jan
27 Dee 698$ Apr
35 Dec 5114 Apr
15% Dec 22 Oct
9 Nov 83 Jan
8 Nov 308s Mar
17 Dec 5912 Mat
25 Dec 10184 Apr
84 Dec 11112 Apr
631$ Dec 10034 June
73 Dec 101 May
512 Dec 333$ Mar
11s Dec
7 Apr
812 Dec 348s Apr
4612 Dee 6934 Mar
2412 Dee 418s Mar
16 Dee 553s Apr
4 Dee
4 Ara
7 Dec 35 Feb
1814 Dee 103 Jan
6814 Dee 1181* Mar
2984 Dee 45 Sept
3 Dec 141$ July
1312 Dec 5112 Feb
80 Dec 116 Feb
20 Dec 95 Mar
3512 Dec 1193s Apr
90 Dee 107 Mar
7411 Dec 8774 Sept
7434 Dec 8912 Sept
15 Dec 3954 Apr
51$ Dec 37 Mar
28 Dec 100% Feb
524 June 671$ Apr
5 Dec 264 Feb
4 Dee
381 May
35 Dee 5412 June
3712 Dec 7912 Ain
131 Dee 141 APT
9332 Dec 1038s Aug
358s Dec 438s Jan
10014 Jan 112 Sept
2 Dec 2212 Mar
534 Oct 3314 Mar
231$ Dee 5214 Mar
110 Dec 110 Feb
381$ Dec 551s Apr
3914 D
6981 Mar
95 Nov 110 Apr
5 Nov 2684 Feb
15 D
2712 Feb
17038 Dec 27414 Apr
981s Dec 127 Sept
9914 Dec 1308s Sept
120 Feb 129 Sept
95 Nov 14184 Apr
10312 Nov 11434 July
478$ Dec 120 Apr
98 Nov 10818 Oct
53$ Nov 2014 Feb
1582 Nov 4481 Feb
9 May
188 Dec
101s Dee 444 Feb
33$ Dec 1782 Feb
2634 Dec 798s Jan
25 Dec 8112 Apr
19 Dec 5314 Feb
24 Dec 51114 Apr
1081 Dec 3714 AP.
1318 Dec 2914 Apr
60 Dec 828s June
234 Nov
81s Mar
Ils Nov
Os Mar
2514 Nov 65 Juno
34 Dec 1384 Apr
434 Dec 201s Apr
20 Nov 481s Mar
19 Dec 5011 Apr
30 Dec 51 June
33 Dec 8034 Jan
48 Dec 651s Feb
165
,Dee 511
/
4 Apr
42 Dee 106 Mar
97 Nov 106 Mar
784 Dee 37 May
812 Mar
212 Oct
6031 Nov 26384 Apr
182 Dec
7 May
82 Dec 103$ Mar
Is Dee 25 Mar
2111 Dec
9% Apr
1938 June 38 Feb
84 Dec 116 Jan
103 Dec 11012 Feb
8 Nov 2034 Mar
58 Dec ill Mar
8311 Dec 34 Mar
23 Nov 68 Feb
89 Dec 101 July
62 Dec 92 Apr
10114 Mar 10914 Sept
4634 Nov 7011 Jan
24 Dec
Vs Jan
7614 Dec 8512 KW
1414 Nov 573
. Apr
308$ Dec 5614 Apr
478$ Dec 11014 Apr
11284 Dec 134 Mar
23 Oct 411$ Apr
161s Dee 294 Apr
95 Dee 104 Oct
74 Feb 90 Apr
164 Nov 69 Aga
2539
New York Stock Record-Continued-Page 3
For sales during the week of stocks not recorded here. se* third page preceding.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Monday
Mar.28. I Mar.30.
Tuesday
Mar.31.
Wednesday' Thursday
Apr. 1.
Apr. 2.
Friday
Apr. 3.
Sales
for
the
Week.
PER &ZARB
Range SOW Jan. 1.
On basis 01100-share lots.
Highest.
Lowest.
STOOKS
NEW YORK STOOK
EXCHANGE.
PER SHARE
Range for Previous
Year 1930.
Lowest.
Higlest.
Per share $ per share $ per share
per share
Per share
Per share
Per shire
per share I $ Per share $ per share Shares Indus.& Misce11.4Con ) Par
•64
66
*641
/
4 66
*6414 66 .
Bon Ami olasa A
59/
1
4 Oct 78 Age
60 Jan 6 643g Mar 23
65
66
*6512 75
*1/
1
4 214 *1/
1
4 214 *1/
1
4 2
5 Mar
*11
/
4 214 *Ps 214
Oat
8 Feb 20
11
/
4 Jan 2
Booth Fisheries
No par
1
*11
16
*11
16
*1112 16
514 Dec 3314 Jae
1st preferred
*11
15
7 Jan 9 1714 Feb 20
100
*11
15
72/
1
4 7312 7214 73
7214 72/
1
4 7232 7278 7232 7318
6012 Jan 9OssMsj
25 6712 Jan 15 7612 Mar 20
17,500 Borden Co
26/
1
4 2712 25/
1
4 2634 257 27
1
4 Mar
10 2084 Jan 2 8034 Feb 27
2518 26/
15 Nov 50/
29,200 Borg-Warner Corp
1
4 2334 25/
1
4
*134 2
2
2
5 Mar
2
2/
1
4Mar 18
2
2
/
1
4 Deo
11
/
4 Jan 28
120 Botany Cons Mills class A 50
2
*1/
1
4 2
20
2034 1912 2012 1932 2012 1958 20
1212 Oct 2512 Jul,
1
4 Jan 15 2234 Mar 25
62,700 Briggs Manufacturing_No par 16/
1914 20/
1
4
2214 23
2114 22
*2012 2112 2014 20/
1
4 2412
15/
1
4 Nov 3512 Apr
1
4 *20/
No par 1612 Jan 14 2412 Mar 24
600 Briggs & Stratton
*432 434
4/
1
4 432
4
152 Dec 2258M17
2 Jan 2
4/
1
4 414
412
514 Mar 2
1.600 Brockway Mot Truok No par
314 312
*1412 24
*1412 24
*1412 24
*1412 24
18 Dec 85 Apr
Preferred 7%
100 14 Mar21 26 Feb 17
*1412 24
11872 120
11512 11834 11512 119
9812 Dec 17814 Mar
1
4 Mar 19
114/
1
4 116
113/
1
4 116
8,800 Brooklyn Union Clas__No par 103 Jan 2 129/
*3334 3414 *3334 34
3314 Nov 42 Feb
337 337 *33/
No par 32/
1
4 34
1
4 Jan 22 3512 Jan 5
100 Brown Shoe Co
*33/
1
4 34
*1012 111
/
4 1018 10/
1
4 *1014 111
10 Dec 3052 Mar
1
4 Jan 2 15 Feb 18
1
4 1014 1018 1014
/
4 10/
500 Bruns-Balke-Collender_No par 10/
1714 1732 17
17/
1
4 1712 1772 1712 1732 *17/
1112 Dee 8112 Mar
10 1414 Jan 16 2078 Feb 19
1,900 Bucyrus-EHe Co
1
4 1734
*3012 31
3032 3012 3012 3012 3012 30/
1
4 Feb 10
21 Dec 43 Mar
Preferred
10 25 Jan 18 34/
1,300
1
4 297g 301g
*112 113
112 112 *11112 113 *111/
1
4 Feb 2 10734 Jan 117 Bent
1
4 113
Preferred (7)
100 11114 Apr 2 113/
70
11114 11114
4/
1
4 4/
1
4
412 412
4/
1
4 4/
1
4 *414 4/
3 Dec1632 Ale
6/
1
4 Feb 25
4 Jan 2
No par
900 Budd (E 0) MIS
1
4
4/
1
4 4/
1
4
1014 10/
1
4
9/
1
4 1012
634 Oct 145* Feb
No par
934 10/
9 Jan 2 18 Feb 27
6,400 Budd Wheel
10/
1
4 10
1
4 10
1032
1314 1332 1312 1312 1312 1312 *1312 14
8/
1
4 Dec 43 Mar
1
4 Jan 30
No par 1114 Jan 2 15/
1,000 Bulova Watch
1312 13/
1
4
1514 16
1432 15181 1434 1534 1434 1512 1414 14/
9/
1
4 Dec 74 Apr
/
4 Jan 2 23 Feb 26
1
41
No par 111
3,800 Bullard Co
*15/
1
4 20
*1512 20
51
Jan
7
Mar
1
25
/
1
4 Dec 110/
15
/
1
4
*1512 18 I *15/
1
4 AFI
Burns
Bros
new
elAeomNo
par
1
4 20
*15/
1
4 20
*332 4/
1
4 *414 41
3 Dec 35 Apr
10 Jan 7
4/
1
4 Mar 1
1
4 5
New class B corn ._No par
/
4 *43s 5 j •4/
*4/
1
4 5
*35
431 *35
71/
1
4 Deo 100 Feb
85 Jan 20
43
*35
Preferred
100 22 Mar 1
43
*3514 43
*3512 43
2814 2812 2734 2814 2778 2878 2872 287
18112 Dec 517s Ma:
/
4 Jan 16 3214 Feb 9
2,900 Burroughs Add Mach-No par 211
27/
1
4 2812
26
26
2112 Dec 4812 Mar
No par 2314 Jan 22 31 Feb 24
2558 2558 *2512 2612 *26
500 Bush Terminal
27
*26
27
mu,
Nov 110 Mar
*10214 1023 102 10218 *10214 1031 102 102
Jan
23
Feb
97
104
11
Debenture
140
100
10214 10214
110 110 *109 112 I 112 112 *110 112 *110 112
100 109 Jan 3 113 Mar 17 108 Oct 118 Apr
30 Bush Term Bldgs pref
884 Jan
112 118
/
1
4 Dec
134 Feb 20
1
.1
11
112, 1
1
1 Jan 7
300 Butte & Superior Mining_,._ 10
•1
172
*134 17
414 Feb
2 Jan 29
114 Dec
*134 178
11
/
4 Jan 5
6
900 Butte Copper & Zino
1/
1
4 1/
1
4
1/
1
4 17
/
4
•134 11
1414 16
10 Nov 2912 Feb
1412 16 1 15
100 1234 Jan 20 2032 Feb 26
1,700 Butteriok Co
15141 1458 1458 *14/
1
4 1472
1
4 Apr
1
4 Feb 20
5012 53o 4758 51 1 48
3312 Dec 112/
1
4 Jan 2 89/
55,400 Byers & Co (A M)No pa
@FedFRASER