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VOL. 129.




financial Chronicle

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Published everyllSaturday morning by WILLIAM B. DANA COMPANY.
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The Financial Situation.
We are inclined to look upon ,the plan which the
Inter-State Commerce Commission made public last
Saturday afternoon, for the grouping of the railroads of the United States, as possessing elements
of distinct merit, and the action itself, therefore,
as constituting a constructive measure of high importance and freighted with possibilities of farreaching advantages. The action comes, too, at a
time when constructive steps of some kind are badly
needed for the rejuvenation of trade and business,
since there is no denying the fact that the setback in
trade which came with the collapse of the stock
market the latter part of October still continues
and is becoming more pronounced, rather than the
reverse. Nor are we disposed to accept the view, so
widely prevalent, that the work of the Commission
in this respect is going to count for little or nothing,
and hence be attended with virtually no results.
Rather, we entertain the idea that the promulgation
of the plan is likely to have almost immediate beneficial results through the co-operation of the railroads themselves. At present the plan is meeting
with much opposition, at least if accounts in the
newspapers are to be credited. Some of the objections urged against the proposal seem valid enough,
but it appears to us that much of the antagonism,
real or assumed, is likely to fade away as the plan
is studied and its good points are found to outweigh
its defects.
Here in the East, and particularly in Trunk Line
territory, interest is centered almost entirely upon
the grouping of the great East-and-West trunk lines
in the stretch of country between the Atlantic seaboard on the east, and Chicago, St. Louis and Kansas
City on the west. The Commerce Commission declares in favor of the creation of a fifth trunk line
system in accordance with the idea originally suggested by Mr. Loree of the Delaware & Hudson Co.,

NO. 3366.

but constituted in a somewhat different way and
with the Delaware & Hudson itself left out. Apparently the Commission has planned wisely in its
grouping of the systems in this part of the country.
The New York Central left pretty much as it
now is, but gets the Virginian By. in addition, a
very important bituminous railroad traversing Virginia and West Virginia. The Pennsylvania RR.
System also remains pretty much as it is except that
the Norfolk & Western, another very important
bituminous coal road now controlled by •it, is
assigned to the Wabash.
The Baltimore & Ohio RR. is greatly enlarged
and strengthened, though not precisely in the way
requested by its management. It is confirmed in
possession of the Reading Co. and the Central RR.
of N. J., which form indispensable links in the line
between Washington and New York, gets in addition
the Buffalo Rochester & Pittsburgh, the Buffalo &
Susquehanna, the Chicago & Alton, and a half interest in the Detroit Toledo & Ironton RR., and the
Detroit & Toledo Shore Line RR., and likewise a half
interest in the Chicago Indianapolis & Louisville
By., now controlled jointly by the Southern Ry. and
the Louisville & Nashville By., and which forms the
Chicago outlet for the two Southern lines mentioned.
To the Chesapeake & Ohio there are assigned not
only the Chesapeake & Ohio itself, along with the
Hocking Valley and the other roads now under the
domination of the Van Sweringen brothers, like the
Erie, the New York Chicago & St. Louis, or Nickel
Plate, and the Pere Marquette,but also, among other
lines, the Delaware Lackawanna & Western RR. In
other words, the Chesapeake & Ohio combination
will have an outlet to New York both over the
Erie RR. and the Lackawanna.
The surprise is in the erection of the Wabash RR.
into a fifth trunk line system of large size and of
great importance. For one thing, there is assigned
to it the Lehigh Valley RR., and for another the
Norfolk & Western. In addition it gets the Wheeling & Lake Erie, the Pittsburgh & West Virginia,
the Western Maryland, besides a half interest in the
Detroit Toledo & Ironton. Lastly, the Seaboard
Air Line Ry. is made a portion of the Wabash combination, of which more will be said further below.
The point of importance is that all these arrangements and rearrangements of the various trunk lines
are such that they would not appear to be calculated
to provoke much opposition on the part of the trunk
lines themselves. The only question that comes up
is as to whether the Pennsylvania RR. could be
persuaded to give up its hold on the Norfolk &
Western. As a naked proposition, it would be safe
to say that it would not, but in this instance it is
asked to give up the Norfolk & Western to the
Wabash RR., which is itself controlled by the Penn-



sylvania RR., as also is the Lehigh Valley, which,
under the plan of the Commission, likewise goes to
the Wabash. If the Pennsylvania could be insured
in continued possession of the Wabash, we may
suppose there would be little objection to the transfer of title to the Norfolk & Western to the Wabash,
or at least there would be no sense in objecting.
But the Commerce Commission is known to be averse
to the control of the Wabash and the Lehigh Valley
by the Pennsylvania RR., and in its annual report
declaimed strongly against holding companies controlling indirectly for the roads what the roads themselves are forbidden to acquire.
If in the end the Commission succeeded in compelling the Pennsylvania RR. to part with its holdings of both Wabash and Lehigh Valley it would
still be a question whether in the disposition of the
holdings of Wabash and Lehigh Valley some identity
of interest between the Wabash and the Pennsylvania could not be established, which might make
the Pennsylvania perfectly willing to part with its
control of the Norfolk & Western. In that event
there would be a relationship between the Pennsylvania'and the Wabash not unlike that now existing
between the New York Central and the Nickel
Plate or Van Sweringen combination. The Nickel
Plate parallels the Lake Shore & Michigan Southern
(a part of the New York Central) almost its entire
way, and it is inconceivable that the New York
Central would ever have parted willingly, as it did,
with the Nickel Plate lines, as well as some other
' lines now forming part of the Van Sweringen combination, except to friendly parties. If in like manner
the Pennsylvania interest in the Wabash should pass
to friendly outside parties, the Pennsylvania might
be satisfied to let its interest in the Norfolk & Western pass to the Wabash, if for no other reason
than to co-operate in carrying out the Commerce Commission's plan. And we may be certain
that in the end public opinion will force such cooperation.
As to the other systems that the Commerce Commission has set up, outside of Eastern trunk line
territory, there are some apparent anomalies which
it is difficult to explain except on the supposition
that some deep underlying purpose has controlled
the action of the Commission in all the different
cases. On the Atlantic Seaboard we are apt to be
provincial in our notions. We see the financial
centers, with their dominance and prominence,
spread along the Coast, and see nothing beyond.
But the United States of America comprises a vast
domain stretching 3,000 miles from the Atlantic to
the Pacific, and extending likewise from the Canadian border on the north to the Mexican border on
the south; and the great interior sections of the
country constitute an integral part of the whole,
inseparably bound up with the rest—without which,
indeed, the prosperity of the whole could not by
any possibility be maintained.
These interior sections of the country have distinct transportation problems of their own, even
more important than those of the great manufacturing districts in the Northern and Eastern parts
of the country. The manufacturing regions supply
goods and products mainly to the home market. Accordingly, their traffic has to be moved only relatively short distances to reach the ultimate consumer. Not so in the case of the agricultural products of the interior sections of the country. These

[Vor, 129.

products in great part have ;to be moved long distances to reach the ultimate consumer, located not
at home, but in foreign markets. What they need,
hence—what, indeed, is indispensable to their very
existence—is numerous and ever developing routes
to the seaboard, and that, according to our view,
is what the Commerce Commission has undertaken to provide for them. That is the underlying purpose which, as we see it, has controlled and
dictated their action in the erection of all of the
different systems.
Why is the Missouri-Kansas-Texas linked to the
Chicago Burlington & Quincy? One reason, evidently, is to promote the growth of traffic in the
direction of the Gulf of Mexico. The Burlington S:
Quincy has by its own action, in long since acquiring the Colorado & Southern, the Fort Worth & Denver City and allied lines, with the various extensions
of the same, given evidence of the desirability of
connection with the Gulf Ports. With the MissouriKansas-Texas system also in its control, as provided
in the plan of the Commission,it will be in a position
further to strengthen and develop traffic routes in
that part of the country.
In like manner the St. Louis Southwestern,
strange as it may seem, is made a part of the Illinois
Central system. The Illinois Central already has
shown its belief in the value of Gulf traffic in having years ago provided a double line for itself (taking over the Yazoo & Mississippi Valley in addition
to its own line between Cairo and New Orleans) and
the St. Louis Southwestern will help to intreneh it
on the west side of the Mississippi. In analogous
fashion the Mobile & Ohio, along with the Chicago &
Eastern Illinois, is given to the Chicago & North
Western in order to endow the latter with a Gulf connection, though it may be doubted that the Southern
Ry. will yield up its control of the Mobile & Ohio.
Then the Rock Island and the St. Louis-San Francisco are definitely joined together., The St- LouisSan Francisco already crosses the Mississippi River
and recently opened an extension to Pensacola, Fla.
The tacking on of the Seaboard Air Line to the
Wabash Ry. and the Florida East Coast to the
Southern Ry. system may be explained in the same
way. They ensure routes to the seaboard from the
great interior sections of the country.
What the Commission has done is to treat Chicago,
St. Louis, Kansas City and Omaha as the hub of the
country, and to provide lines and systems radiating
from this hub in all directions. In this it has
changed the previous order of things in which the
North Atlantic seaboard cities have been treated as
foci for attracting traffic from other parts of the
country. The change was bound to come sooner or
later, and the Commerce Commission has now undertaken definitely to inaugurate it. Thereby the
agricultural sections of the West and South once
more come into their own, which is a political as
well as a transportation consideration of the highest
It happens now that the railroads, in their returns
for the month of November, which have been coming
in the present week, are showing what a sensitive
agency they are in reflecting the business activities
of the country, and, by parity of reasoning, the
part they must necessarily play by their own activities in stimulating or retarding general trade. If
anyone had any doubt that the stock market collapse

Dm.28 1929.]


would have an immediate effect in causing a setback
in trade and business, the revenue returns of the
roads for November will serve to dispel such doubt.
These returns nearly all show'very substantial losses
in gross revenues, and the comparisons of the net
results are relatively poorer than the comparisons
of the gross revenues, probably because the managers
of the roads, desirous of heeding the injunction of
President Hoover, were reluctant to curtail expenses
in proportion to the falling off in the traffic and
gross revenues. The returns are unfavorable in the
case of the roads in all parts of the country excepting some of the systems in the Southwest and also
some of the systems in New England. Thus the
Chicago Milwaukee St. Paul & Pacific reports gross
of $12,903,562 for November this year as against
$13,693,718 for November last year, and net operating income (after the deduction of taxes and rents)
of $1,713,230 agains $2,312,590; the Great Northern
gross of $10,066,310 against $13,358,965 and net
income of $2,942,598 against $5,004,070; the Northern Pacific gross of $7,895,406 against $9,241,226
and net income of $2,050,033 against $3,230,235; the
Chicago & North Western gross of $11,410,564
against $11,593,496 and net income of $938,428
against $963,348; the Illinois Central gross of
$14,350,207 against $15,191,110 and net income of
$1,693,801 against $2,662,054; the Union Pacific
gross of $17,842,141 against $18,732,834 and net income of $3,947,423 against $4,539,087; the Southern
Pacific gross of $24,360,497 against $25,084,808 and
net income of $3,731,051 against $4,583,365; the Erie
gross of $9,997,799 against $10,913,570 and net income of $1,363,895 against $1,789,973; the Wabash
gross of $5,586,461 against $5,864,704 and net income
of $697,045 against $977,753; the Burlington &
Quincy gross of $12,714,541 against $13,361,280 and
net income of $1,811,081 against $2,407,613; the Bait.
& Ohio gross of $19,306,165 against $21,249,883 and
net income of $3,227,244 against $5,119,256; the
Pennsylvania RR. gross of $53,768,073 against $57,013,034 and net income of $7,061,480 against $11,244,733, and the Rock Island gross of $11,404,240
against $11,698,894 and net income of $1,399,029
against $1,980,296. We have stated that some of
the Southwestern roads were exceptions to the rule,
and the Atchison furnishes an excellent illustration,
it reporting gross of $23,830,852 against $21,849,509
and net income of $7,742,656 against $7,129,528,
while the Missouri Pacific shows gross of $11,359,344 against $11,357,620 and net of $2,004,063
against $1,865,089. On the other hand, the Texas
lines submit poor returns, probably because of the
diminished yield of cotton the past season, and the
Texas & Pacific reports gross of $3,663,625 against
$4,618,118, and net of $741,626 against $1,012,825.
There has been some slight tightening of money
rates the present week, but the Federal Reserve
Banks continue to add to the amount of Reserve
credit outstanding, one explanation given being the
demand for currency for holiday purposes. At the
12 Reserve institutions combined the amount of
Federal Reserve notes in actual circulation increased
from $1,926,023,000 Dec. 18 to $1,989,159,000 Dec. 24
(Wednesday, Dec. 25, having been Christmas Day
and a holiday). Member bank borrowing at the
Reserve Banks increased the past week, after last
week's decrease, the expansion occurring very
largely at New York; for the 12 banks combined the


discount holdings, which reflect member bank borrowing, have risen from $737,038,000 Dec. 18 to
$762,781,000 Dec. 24. Holdings of United States
Government securities have been reduced somewhat
during the week, falling from $533,265,000 to $485,043,000, this, however, being due entirely, it is to be
presumed, to the repayment of $69,000,000 of bills
and certificates representing borrowing the previous
week by the United States Government pending the
collection of the income tax instalment due on
Dec. 15. However, as an offset, the Federal Reserve
Banks greatly enlarged their purchases of acceptances in the open market, this process being facilitated by the rise in the open market rates for acceptances, bringing them to the point where the rate for
acceptances once more accorded with the buying
rate of the Reserve institutions, besides which offerings of acceptances have been of such volume that
they piled up in the hands of dealers,making recourse
to the Reserve Banks a necessity. The Reserve System reports $354,943,000 of acceptances held the
present week against $309,411,000 last week. The
result, altogether, is that the aggregate of Reserve
credit outstanding, as represented by total bill and
security holdings, now stands at $1,612,537,000
against $1,589,466,000 last week.
The changes in brokers' loans the present week
are very slight and call for little comment. The
total of these brokers'loans has been further reduced
during the week, and is now down to $3,328,000,000,
which compares with $3,386,000,000 a week ago and
with $5,091,000,000 on Dec. 26 last year. While,
however, the loans to brokers made by the reporting
member banks in all the different classifications
declined 08,000,000 during the week,the loans made
by these reporting banks for their own account increased during the week from $832,000,000 to $845,000,000; the contkaction occulted in the loans made
for account of out-of-town banks, which fell during
the week from $750,000,000 to $716,000,000, and in
the loans "for account of others," which fell from
$1,804,000,000 to $1,767,000,000.
The stock market this week has been a tame affair,
and extremely dull. The Christmas holidays, of
course, interfered with trading and reduced it to
small volume. Call money stiffened somewhat, rising from 5% on Monday to 6% on Thursday and
Friday, but little attention was paid to this, and
it played no part in affecting the course of prices.
There was not much selling pressure at any time,
but the market was of such limited character that
sales of only a few hundred shares in any except the
most active stocks was sufficient to bring about a
sharp fall in prices. On the other hand, buying
orders of only a few hundred shares acted in like
manner to cause a brisk rally. On Saturday the
tendency of prices was upward, but on Monday decided weakness developed, and this was ascribed to
selling, to establish losses for the purpose of the
income tax returns at the end of the year, and was
also attributed to what was termed deferred liquidation. On Tuesday, however, recovery ensued, and
on Thursday, after the Christmas holiday on Wednesday, the recovery made further progress, notwithstanding call money on the Stock Exchange advanced to 6%. On Friday the market moved uncertainly up and down, with the advances predominating, though some reaction came in the last hour. On
the whole, little importance can be said to have



Industrial & Miscell. (Concl.)—

industrial ct Miscell. (Cont.)—
attached to the fluctuations in prices at any time Consolidated Textile.
Northwestern Telegraph.
Nunnally Co.
Crex Carpet.
during the week.
Oil Well Supply.
Oppenheim Collins & Co.
Trading has been exceedingly light, almost to the Debenham Sec's.
Parmelee Transportation.
Eureka Vacuum Cleaner.
verge of stagnation. On the New York Stock Ex- Fashion Park Assoc.
Park Utah.
Pet Milk.
Fisk Rubber.
change the sales at the half-day session on Saturday Gardner Motor.
Pitts. Terminal Coal.
Punta Alegre Sugar.
shares; on the full day Monday they Goodrich Co.
were 1,734,920
Revere Copper .5c Brass.
Grand Stores.
were 3,491,770 shares; on Tuesday, 1,996,050 shares; Grant(W. T.).
Rhine Westphalia Elec. Power.
Richfield Oil of Calif.
Wednesday was Christmas Day and a holiday; on Hawaiian& Co.
Schulte Retail Stores.
Hoe (R.)
Shubert Theatre.
Thursday the sales were 2,576,740 shares, and on Inland Steel.
South Porto Rico Sugar.
Friday, 3,353,840 shares. On the New York Curb Int. Paper.Dept. Stores.
Southern Dairies cl. A.
Spicer Mfg.
Exchange the sales on Satulrday were 669,700 shares; Kelly-Springfield A.
Long Bell Lumber
on Monday, 987,300 shares; on Tuesday, 841,600 Manhattan Shirt.
Stand. Commercial Tobacco.
Sun Oil.
Maracaibo Oil.
shares; on Thursday, 936,400 shares, and on Friday, McCrory Stores cl. A.
The Fair.
Transue & Williams.
Michigan Steel.
Trico Products.
Nat. Air Transport.
Prices are irregularly changed for the week, Nat. Bell Hess.
United Cigar Stores.
Elec. Coal.
though in most cases recording a recovery of a por- Nat. Surety.
Wilson & Co.
tion of last week's losses. United Aircraft closed
The steel shares are up a few points. United
yesterday at 46 against 411 2 on Friday of last week;
States Steel closed yesterday at 165% against 162 on
American Can at 114% against 110; United States
week; Bethlehem Steel at 91%
Industrial Alcohol at 134% against 12714; Com- Friday of last
Prod- against 90, and Republic Iron & Steel at 74 against
mercial Solvents at 2914 against 26%; Corn
stocks are also somewhat higher.
ucts at 88' 8 against 8814; Shattuck & Co. at 721 2 The motor
at 4014 against
36% against 35; Columbia Graphophone at 273 General Motors closed yesterday
last week; Nash Motors at 53
against 24%; Brooklyn Union Gas at 136% 3878 on Friday of
33; Packard
121; North American at 93 against 87; against 50%; Chrysler at 36 against
at 1578 against 15; Hudson Motor Car at
American Water Works at 85 against 75%; Electric Motors
at 21 against 20.
Power & Light at 45% against 43%; Pacific Gas & 54% against 50, and Hupp Motors
The rubber group was depressed as a result of the
Elec. at 513 against 49%; Standard Gas & Elec. at
11218 against 1033 Consolidated Gas of N. Y. at low price of rubber. Goodyear Rubber & Tire
yesterday at 64 against 64 on Friday of last week;
9518 against 91%; Columbia Gas & Elec. at 7014
United States
against 66; Public Service of N. J. at 7678 against B. F. Goodrich at 40% against 43%;
preferred at
7278; International Harvester at 77% against 76%; Rubber at 23% against 25%, and the
Sears, Roebuck & Co. at 8814 against 91%; Mont- 49% against 50%.
Railroad stocks have lagged far behind. Pennsyl/
gomery Ward & 4714 against 45%; Woolworth
against 7478 on
at 70 against 69; Safeway Stores at 115 against vania RR. closed yesterday at 73%
week; New York Central at 167%
10712; Western Union Tel. at 186 against 191; Amer. Friday of last
57 against 57; Del. &
Tel. & Tel. at 217% against 2123 and Int. Tel. & against 168%; Erie RR. at
Hudson at 164 against 167%; Baltimore & Ohio at
Tel. at 70 against 69.
at 111 against 108 ;
Allied Chemical & Dye closed yesterday at 257% 115 against 113; New Haven
Union Pacific at 210% against 213; Southern Paagainst 240 on Friday of last week; Davison Chem4
/ against 118%; Missouri Pacific at
ical at 28% against 2614; E. I. du Pont de Nemours cific at 119
88% against 86; Kansas City Southern at 81 against
at 114 against 110; Radio Corp. at 41% against
Southwestern at 60 against 61%;
38%; General Electric at 230% against 224; Na- 81%; St. Louis
at 109 against 1081 8; Mis/
tional Cash Register at 74% against 6818; Fox Film St. Louis-San Francisco
44% against 45 ; Rock
A at 21 against 22%; International Combustion souri-Kansas-Texas
Northern at
against 51%; International Island at 113% against 113 ; Great
Engineering at 6%
Northern Pacific at 85% against
Nickel at 30% against 283 A. M. Byers at 84% 95 against 96, and
79' 8; Timken Roller Bearing at 75% 8718
The oil shares have moved up with the rest of the
against 69%; Warner Bros. Pictures at 4018 against
Oil of N. J. closed yesterday at
39; Mack Trucks at 70 against 68%; Yellow Truck market. Standard
64% against 60% on Friday of last week; Simms
& Coach at 1414 against 12%; Johns-Manville at
2338 against 23 ; Skelly Oil at 31%
116 against 114; National Dairy Products at 46% Petroleum at /
against 3014; Atlantic Refining at 37% against
against 453 National Bellas Hess at 10% against
/ Pan American B at 59 against 56%;
1018; Associated Dry Goods at 291 2 against 27; 367
Texas Gulf Sul- Phillips Petroleum at 34% against 33;
Lambert Co. at 9514 against 93%;
55% against 54%; Richfield
n at
phur at 533 against 52%, and Kolster Radio at 4 Corporatio
Oil of N. Y.
stocks which the present Oil at 24% against 25%; Standard
against 3%. The list of
at 325s against 3214 and Pure Oil at 24
week have dropped to new low levels for the year, it
against 23.
will be a surprise to hear, is again a very extensive
The copper group also is somewhat higher. Anaone, as will be seen from the following:
conda Copper closed yesterday at 74 against 71%
on Friday of last week; Kennecott Copper at 58
Industrial & Miscell. (Cont.)—
against 54 ; Calumet & Hecla at 28% against 29;
Autosales Corp.
Chicago & Eastern Illinois
Barker Bros.
Norfolk Southern.
Andes Copper at 34% against 32%; Inspiration
Barnet Leather.
Belding Hemingway.
Copper at 263 against 27; Calumet & Arizona at 84
Industrial ct Miscell.—
Bloomingdale Bros.
Abraham & Straus.
against 81%; Granby Consolidated Copper at 51
British Empire Steel.
Butte & Superior Mining.
Air-Way Elec. Appliance.
against 50%; American Smelting & Refining at 72%
Butterick Co.
Ajax Rubber.
Cannon Mills.
against 6918 and U. S. Smelting & Ref. at 36
Am.Hawaiian St. Co.
Am. Hide & Leather.
Certain-Teed Products.
Am. Seating.
Anaconda Copper.
Associated Oil.

Chickasha Cotton Oil.
Cluett Peabody & Co:

DEC. 28 1929.]



Stock exchanges in the important European cen- routine work of the conference will
proceed thereters pursued a quiet but uneven course in the very after in St. James' Palace,
placed at the disposal
restricted trading of the current week. Most of the of the meeting by his Majesty. The opening
securities markets opened Monday and Tuesday of the Bing will be transmitted by radio
through a
only, extending the closing for the Christmas holi- widespread network of broadcasting
stations. It
day until next Monday. This prolongation of the appeared in Washington this week
that elaborate
holiday occurred in London, Paris and Milan, while arrangements have been made to maintain
the Berlin Boerse remained closed until yesterday. between President Hoover and the American
deleIn these circumstances trading on the several ex- gation during the conference by means
of a rapid
changes during the few active days of the week fol- system of radio communication. This will
lowed precisely the same course that characterized the American representatives to secure the
views of
previous weeks, namely was extremely limited with the President on any point with a minimum
price movements irregular. Trading in all markets delay.
dropped off sharply after the crash in prices at New
Official announcement was made in Paris MonYork, and at present speculators and investors in day of the personnel of the French delegatio
the several European financial centers are display- Premier Andre Tardieu will head the
French repreing no anxiety to take on further commitments pend- sentatives, while his associates will include
ing clearer indications of the trend here. Some of Briand, Foreign Minister; Georges Leygues,
Ministhe current uncertainty also is caused by the un- ter of Marine; Francois Pietri, Minister
of Colonies,
stable political situations in the several markets and Aime Joseph de Fleuriau, Ambassad
or to Great
and by the numerous international conferences that Britain. Among the chief assistants
to the French
presage important changes in Europe. These fac- delegation will be Rene Massigli, Chief
of the Detors produced a certain amount of liquidation in partment of the League of Nations at
the Foreign
recent weeks which drove prices at Paris and Berlin Ministry; and Henry Moysset, Professor
at the
to the lowest levels of the year, while London also French Naval College. A number of
French Senahas been depressed. Exchanges in Vienna, Milan tors and Deputies also will attend
the meeting. The
and other less important financial centers have fol- Japanese delegatio headed
by former Premier
lowed a similar course.
Reijiro Wakatsuki concluded last Saturday its stay
Business at London in the current week started in the United States and sailed
on the steamship
quietly on Monday under fairly cheerful conditions. Olympic for London. In Washingt
on discussions
Attendance on the Stock Exchange was small in early last week the Japanese represent
atives appear
view of the anticipated holidays. Prices of gilt- to have modified their announced intention
to deedged securities were firm owing to substantial gold mand 70% of the American strength
in 10,000 ton
receipts, but other departments of the market re- cruisers to a demand for 70% of American
or British
mained virtually unchanged. Trading on the London strength in auxiliary craft as whole,
with tonnages
Stock Exchange was still further restricted Tuesday in cruisers, destroyer and submarin
es to be adjusted
and changes were again unimportant. British funds by mutual consent. This development was
held firm, and international issues showed improve- as a hopeful one for the ultimate
success of the
ment owing to the better reports from New York. conference. Shortly before sailing, Mr. Wakatsuk
Otherwise, the market was neglected. The Paris expressed confidence that the London conferenc
Bourse also was inactive in the opening session Mon- would produce good results and promised that
day. Prices of domestic issues held firm but inter- country "will collaborate with other powers,
as she
national stocks were lower. With the longest closing has in all past conferences, whole-heartedly and
since the World War ahead of it, the Bourse again loyally with the same enthusiasm and in the
improved Tuesday as far as French stocks are con- spirit of frankness
and conciliation." Secretary of
cerned. International issues fared less well in the State Stimson disclosed Washingt
on Monday that
moderate turnover. The Berlin Boerse was de- he had sent radio message
of appreciation to Mr.
pressed at the opening Monday and the decline con- Wakatsuk
i in response to a cordial telegram from
tinued until the last half-hour, when favorable the Japanese leader. An official spokesma
n for the
monetary developments brought some buying into Japanese Government made known in Tokio
the market. Most issues were able to recover the Japan is
fully satisfied with the results of the preday's losses. The last session of the Boerse before liminary discussions of Japanese
and American ofthe Christmas holidays resulted in slight improve- ficials Washington.
ment. Business, however, remained at a very low
A more informative sidelight on the preliminary
level. Resumption of trading at Berlin yesterday discussio
ns among the United States, Britain and
was accompanied by fairly heavy liquidation, Japan was
made available in Tokio yesterday. A
although a few gains were recoirded.
meeting of the Cabinet Council was held to consider
the negotiations, and Baron Shidehara announced
International discussions preliminary to the five- thereafte that Britain
and the United States had
power naval limitation conference which is to con- not accepted Japan's
proposal of a 10-10-7 naval
vene at London Jan. 21 were marked by several ratio on auxiliary craft,
and its recommendations in
important developments this week. The five gov- connection
with submarines. The attitude of
ernments at Washington, London, Tokio, Paris and Britain and America was being considere
d, he added,
Rome continued their official preparations for the with a view to suggesting possible substitute
progathering and these are rapidly nearing completion. posals. The Japanese statesman expressed
the beIt was announced in London late last week that lief, according to a United Press dispatch, that
King George will open the conference in person in Japanese position would not deviate much
from the
the Royal Gallery of the House of Lords, welcoming basis proposed on ratios.
the delegates to the British capital and expressing
The French Government dispatched to London
his warm desire for the success of their labors. The last Saturday a memorandum containin
g a state-



ment of policy to be pursued by the French delegation to the naval limitation conference. Similar
meMoranda were subsequently forwarded to Washington, Tokio and Rollie, and to the capitals of all
the powers that have participated in the work of
the Preparatory Disarmament Commission in
Geneva. Publication of the document was withheld
until its receipt was confirmed by all capitals, but
it was made clear last Saturday in Paris that jt
contained the following points: That naval disarmament is only part of the general problem of
limitation of armaments, and that the general problem should be solved by the League of Nations; that
the London conference should therefore have as its
purpose the facilitation of the work of the- future
disarmament conference which will be convened by
the League to realize the essential objects of the
League's activity; that terrestrial, naval and air
armaments should be considered as interdependent;
that French tonnage demands will be based on
French naval requirements; that the naval problem
should be considered as one of the guarantees for the
necessary security of each interested country.
This expression of the aims and intentions of the
French Government was viewed with the keenest
interest in the other capitals concerned. "In view
of the French thesis," a Washington report of Dec.
21 to the New York "Times" said, "the first task
confronting the conference next month probably will
be an effort to reconcile the work of the London
parley and the disarmament efforts of the League."
Secretary Stimson expressed the view, the dispatch
added, that the United States did not wish to interfere with the attempt of any country to disarm in
the way it might choose, through the League of
Nations or otherwise. In an analysis of the French
memorandum by Edwin L. James, European Correspondent of the New York "Times", it was remarked
that the note seems at first glance to amount to a
dissertation on how impossible it will be for the naal
conference to accomplish anything, since naval disarmament is proclaimed to be only a part of general
disarmament, all branches of whip must be considered together. The observation in the note that
French tonnage must be based on French needs was,
however, considered the fundamental point in the
memorandum. "Perhaps," Mr. James said, "one
may best summarize the French note thus: 'Until
we get limitation in all branches and the promise
of security, we wish to keep what ships we have.'"
The preliminary exchange between Paris and
Rome on questions affecting France and Italy directly was continued this week, and it was indicated
that an exceptionally interesting suggestion has been
made in this connection. Progress had been slow
in reaching adjustment of the Italian claim to
theoretical parity with any other Continental
power, as against the French demand for a greater
navy than the Italian fleet because of her double
toast line on the Atlantic and the Mediterranean.
"Premier Mussolini does not contest the French
thesis that France must build according to her
needs," a Paris report to the New York "Times"
said, "but he persists in his claim that Italy shall
have the right to parity with France." One result
of the preliminary exchanges between France and
Italy, according to a Paris report of Sunday to the
New York "World," is a suggestion for a treaty
guaranteeing the peace of the Mediterranean. "Italy
has accepted a proposal of M. Briand to put forward

[VoL. 129.

such a plan at London as part of the naval conference," the dispatch said. "It is proposed that the
pact be a four-power one, similar to the Pacific
Treaty negotiated at the Washington Conference of
1921-22, and that it include Great Britain, France,
Spain and Italy as the guarantors of Mediterranean
peace. While there has been as yet no definite outline of the provisions of such a treaty, the idea is to
frame it along the line of the Pacific four-power pact
signed by the United States, Britain, France and
Japan." In a dispatch to the New York "Herald
Tribune" it was stated that such a security agreement is understood to be the meaning of the final
point contained in the identic memoranda dispatched
to the principal naval powers by France.
A clarifying statement regarding the terms of reference of the naval conference was made at London,
Monday, by Prime Minister Ramsay MacDonald, in
reply to interpellations in the House of Commons.
A Conservative member asked Mr. MacDonald
whether the conference would entertain proposals
involving the possible use of the British fleet in wars
between other peoples. "Certainly not," Mr. MacDonald replied. "The question of naval policy, as
apart from naval strength, will not be considered at
the five-power naval conference." Washington reports also indicated that the scope of the parley will
be limited. In a dispatch of Tuesday to the New
York "Times," it was remarked "The earnest desire
of President Hoover and Prime Minister MacDonald
to make the Kellogg pact the cornerstone of any
naval disarmament treaty concluded at the London
naval conference is not to be fulfilled, according to
the understanding in authoritative quarters. The
reason for this conclusion is the inability to draft a
formula.which could dovetail the Kellogg pact with
the disarmament treaty." In a report to the New
York "Herald Tribune" from its Washington correspondent the statement was made that the United
States Government is preparing to take the first
steps toward abolition of capital ships by international agreement. On the basis of "authoritative
information," it was declared that the American
delegation may propose in the London conference
next month that all capital ship replacements be
postponed until 1936. "The theory behind the plan,"
the dispatch added, "is that the time may be ripe
six years hence to do away with such battleships
altogether, and that the prospect may be good enough
now to save millions to the world powers in the
meantime by putting off replacements."
The full text of the French memorandum on the
policy to be pursued by the Paris Government at the
conference was made public in Paris late Thursday.
Four broad ideas underlie the statement, according
to a Paris dispatch to the New York "Times."
Briefly summarized, they are: First, the agreements
at the London conference are to be within and subservient to the framework of the League of Nations'
general disarmament plans. Second, that the Kellogg pact, while a real step toward the preservation
-of peace, nevertheless is being based upon the force
of public opinion and cannot be regarded in its present state as a guarantee of the security of nations.
Third, French naval needs must be established upon
the very considerable requirements of the "French
empire" and not upon the mathematical ratios as
set forth by the Washington conference. Fourth,
definite French proposals for a Mediterranean naval
accord similar in construction to the already exist-

Due. 28 1929.1


ing treaties for the Pacific and the Black Sea, the
accord to include Great Britain, Italy, France and
Of great interest in connection with the memorandum, the "Times" report stated, was an explanation
made in French official quarters Thursday that
France, in urging solution of the Mediterranean
problem by means of a naval accord, pointed out to
Great Britain that by so doing she would be able
to effect a material reduction in her present Mediterranean fleet, which French estimates place at
400,000 tons.
Preparations for the second Hague conference of
Governments to consider adoption of the Young
plan of German reparations payments have been
virtually completed, according to European reports
of the current week. It was decided at Paris last
Sunday to convene the meeting on Jan. 3, as originally intended, although for a time last week it
was officially declared that the conference would
begin Jan. 6. The earlier date will allow the delegates to finish their labors in time to attend the
League of Nations Council session at Geneva, which
is to follow on Jan. 13. In diplomatic circles, a dispatch of Tuesday from The Hague said, it is stated
that the conference probably will not last more than
10 or 12 days. Efforts were still under way
Monday, according to Budapest reports, to settle the
Hungarian-Rumanian optants question in advanc
of the meeting at The Hague. This matter caused a
delay of weeks in the labors of the Paris subcommittee charged with settling questions relating to reparations payments by non-German defeated States
Hungary maintains that the optants dispute should
be settled in extraneous negotiations, while Ruman
desires that it be merged with the reparations problem. Premier Jaspar of Belgium, permanent President of The Hague conference, spent more than an
hour with Premier Tardieu of France in Paris last
Sunday discussing details of the coming gathering.
"From French sources it is learned," a dispatch to
the New York "Times" said, "that a much more
satisfactory atmosphere prevails between the Allied
Governments than preceded the initial Hague
session, and that Britain and France are unders
now to have reached a preliminary agreement
will make incidents such as the famous Snowd
outburst quite improbable at the coming sitting
All the main questions to be decided at The
have been thoroughly discussed as well as the
findings of the various committees set up."
Political agitators in Germany who tried to
prevent German acceptance of the Young plan met
a crushing defeat in the national referendum
last Sunday on the so-called "Liberty Law."
Associated in support of those opposed to the
plan were the German Nationalists under Dr.
Hugenberg, and the, Fascists under Adolph
The leaders of these parties began their
"against the enslavement of the German
last July and the matter soon became a nation
and in some respects an international issue. A
petition was circulated in October asking the elector
of the Reich to make it mandatory for the Reichstag
to consider a bill providing for sharp rejecti
on of
the Young plan. Under the Weimar Constitution
the Reichstag would have to take action on
matter if 10% of the electorate signified their wishes


in this fashion. The measure thus sponsored by the
Nationalists called for emphatic repudiation of the
"enforced German acknowledgment of war guilt" in
the Treaty of Versailles, and declared that "no further financial burdens or obligations based on the
war guilt acknowledgment shall be assumed, inclusive of those arising from recommendations of the
Paris reparations experts." Fascist extremists succeeded in incorporating in the bill a provision for
prosecution for high treason of the Chancellor and
ministers or representatives of the Reich who signed
such instruments as the Young plan. While the petition was under consideration in October, President
von Hindenburg issued a statement rebuking the
sponsors of the bill for inclusion of the treason
measure. Only a bare few thousand signatures in
excess of the necessary 10% of the 41,000,000 German voters were attached to the petition and this
result was viewed as a dismal practical failure because the number of Nationalists and Fascists in
Germany far exceeded the petitioners. Technically,
however, the petition was a success and the Reichstag was forced to consider the bill. When this was
done on Nov. 30, 307 Deputies voted against the
measure while only 78 voted for it.
Under German constitutional procedure a national
referendum was now required, and this was held last
Sunday. The assent of half the German electorate,
or approximately 20,500,000 favorable votes was required to make the measure law. It was realized
that acceptance of the bill would profoundly affect
the international negotiations on the Young plan
now in progress and the parties in Germany opposed
to the proposal instructed their adherents to abstain
from voting. The abject failure of the expedient is
indicated by the fact that approximately 5,782,000
votes were cast for the bill, or 11.5% of the electorate
instead of the required 50%. Opponents of the
measure simply stayed away from the polls as only
334,000 unfavorable ballots were cast while an additional 114,000 ballots were intentionally spoiled.
Opposition to the Young plan proved most powerful
in the strongholds of the Junkers in Pomerania and
East Prussia, where 391,000 and 360,000 votes, respectively, were cast for the bill. The Rhineland
Provinces displayed the greatest indifference, even
though they either just have been or expect shortly
to be released from Allied occupation. Politic
circles in Berlin, according to a dispatch of Monday
to the New York "Herald Tribune," consider that
the overwhelming rejection of the anti-Young plan
bill will strengthen the hands of the German delegation at The Hague. Internally the result of the
referendum was viewed as a probably fatal blow to
the bloc organized against the Young plan by Dr.
Hugenberg and Herr Hitler. Complete quiet prevailed throughout the Reich during the voting,
except for a few minor disturbances by Communists.
After a full month of negotiations regarding
final disposition of the Sarre area, French and German representatives discontinued their Paris
discussions late last week "for the Christmas holidays."
The meetings were begun Nov. 21 in a friendly
conciliatory atmosphere and three subcommittee
were quickly formed to consider various aspect
s of
the proposed early return of the area to Germa
It was understood at the time that the
were initiated as the result of an unders



reached at The Hague last August between Foreign
Minister Briand of France and Foreign Minister
Stresemann of Germany, apparently as one element
in a readjustment of the Young plan found necessary
at the conference of the interested governments.
Notwithstanding the auspicious start made by the
German and French negotiators at Paris, it soon
appeared that difficulties had been encountered on
the question of payment for the Sarre mines, which
were given to France under the terms of thp Versailles treaty.
4n a report of Dec. 20 to the New York "Times"
it was remarked that a "question has arisen whether
payment for the mines, now estimated to be worth
$75,000,000, shall be credited to German payments
under the Young plan or whether the payments must
be made independent of the reparations account."
The Germans contended for the former view, it was
said, and in support of their arguments they maintained that if the transaction were postponed until
1935 the payments must in any event be included as
part of the Young plan annuities. Difficulties also
arose over the eventual tariff scheme for the Sarre
and the plan for delivery of Sarre coal to the Lorraine steel mills. The negotiators set Jan. 10 for
resuming their discussions, but it was remarked in
the "Times" dispatch that "doubt is expressed in
well-informed quarters that the conversations will
be resumed on the date set." It was considered
probable that Foreign Minister Briand will again
discuss the matter with the German delagation at
the second Hague conference, with future Paris
meetings dependent on the result.
Intensive criticism in Germany of the financial
program of the Reich Government, which developed
last week after disclosure of a heavy budgetary deficit for the current year, was followed last Saturday
by the resignations of Dr. Rudolph Hilferding, Minister of Finance,and his aide, State Secretary Johannes Popitz. The entire Cabinet of the Socialist
Chancellor, Herman Mueller, was endangered for
a time when it appeared that the national exchequer
will show a deficit of 1,700,000,000 marks by Dec.
31, making it necessary for the Government to resort to numerous expedients to meet obligations.
The greatest criticism centered, however, on Dr.
Hilferding's plan to borrow $100,000000 on a short
term basis from an international banking consortium. This was strenuously opposed by Dr.
Hjalmar Schacht, President of the Reichsbank, and
the amount needed to cover the Government's deficit
was finally advanced by a German banking syndicate, headed by the Reichsbank. The collapse of his
program made Dr. Hilferding's position completely
untenable, and he requested that he be relieved of
his portfolio at once. Dr. Popitz's resignation grew
specifically out of a circular addressed by him to
the governments of the various German States intimating that the Reich would be unable to meet its
year-end obligations. President von Hindenburg
accepted the resignations promptly, and at Chancellor Mueller's suggestion Dr. Paul Moldenhauer, who
held the post of Minister of Economics in the present
Cabinet, was appointed Minister of Finance. The
vacant was filled by the appointment of Robert Schmidt, veteran Socialist leader.
These appointments preserved the numerical representation of parties in the Coalition Cabinet.

[Vol,. 129.

Adjustment of the portentous dispute between
Russia and China over the management of the
Chinese Eastern Railway through Manchuria was
reached at Khabarovsk, Siberia, last Sunday, by
representatives of the Soviet and Manchurian Governments. A statement issued by the Foreign Commissariat in Moscow indicates that the plenipotentiaries of the Moscow and Mukden Governments
have signed a protocol restoring the status quo ante
on the railway and reinstating immediately all
Soviet consulates and commercial organizations in
Manchuria and Chinese consulates and commercial
organizations in the Soviet Far East. Troops are to
be withdrawn from the frontier by both sides, thus
ending the grave possibility of warfare which has
existed since the Chinese authorities seized the railway on July 10 and arrested or expelled the Soviet
officials who were operating the railway jointly with
Chinese officials under the terms of an agreement
signed in 1924. The Chinese alleged after seizing
the railway that they had found evidence of Communist propaganda by the Soviet officials. Russia
promptly severed relations with China and armed
forces were massed on the border. Skirmishes between the troops followed and the matter was
brought to an acute stage several weeks ago when
the Russians conducted a raid along the railway
more than 100 miles into Western Manchuria. The
United States and other signatory powers of the
Kellogg-Briand Treaty for the renunciation of war
issued several reminders to China and Russia of
their obligations under that pact. Negotiations for
direct settlement of the dispute were finally begun
by Moscow and Mukden, and have now apparently
ended successfully.
A further Russian-Chinese conference is to be held
in Moscow Jan. 25, and all outstanding questions
are to be considered at that time, according to the
announcement made in Moscow. Full restoration
of diplomatic relations will be left open until this
conference, it was said, and the question of commercial relations between the two countries as a whole
also will be considered at that time. Soviet and
Chinese officials are again to cooperate in management of the 1,000 mile railway in accordance with
the Mukden and Peking agreements of 1924. The
new Russian general manager of the line, Julius
Rudyi, and his assistant, M. Denisov, are proceeding
to Harbin to assume their posts. Other officials
who were dismissed, and minor employees as well,
whether Chinese or Russians, are to be reinstated
and the arrested nationals will be released. Chinese
authorities agree to disarm immediately the Russian
White Guard detachments and deport their leaders
and organizers from Manchuria. The protocol was
signed by the Manchurian representatives in behalf
of the Nanking Nationalist Government of China,
but the deal, according to a Moscow dispatch to the
New York "Times," "was primarily one between
Moscow and Mukden." The agreement was interpreted in Washington as practically ending the dispute and giving every assurance of a complete understanding when representatives of the two nations
confer at Moscow in January. "The view of the
State Department," a dispatch to the New York
"Herald Tribune" said, "is that the Kellogg pact
was a potent influence in preventing actual war
between China and Russia." Recurrences of "more
or less serious friction" were, however, considered

Mac. 28 1929.]


Honors customarily reserved only for actual heads
of States were paid in Washington this week to
Pascual Ortiz Rubio, President-elect of Mexico.
Senor Ortiz Rubio arrived in the United States
early this month, chiefly to seek a rest after the
strenuous political campaign that ended with
the election by an overwhelming majority on
Nov. 17.
He made it clear some time after his arrival that
he would also seek to develop the understanding
between Mexico and the United States. After spending some days at Hot Springs, Ark., Senor Ortiz
Rubio arrived in New York Dec. 11 and in an address
delivered two days later he declared that the aims
sought by the Mexican people in their long period
of revolutions "have finally entered the field of
practical realization." After a further period of
rest and medical consultations, the Mexican President-elect proceeded to Washington last Thursday,
calling promptly on President Hoover. Mr. Hoover
broke an old precedent by immediately returning the
call at the Mexican Embassy. It was noted in Washington reports that this action by Mr. Hoover is to
be considered a special token of the goodwill the
United States bears toward Mexico, since precedent
required only that the American President return
the call by the proxy of one of his aides. An announcement of considerable importance in Mexican
affairs was made late the same day by Senor Ortiz
Rubio, who declared himself in favor of the proposed
new land laws in that country. The legislation, now
pending before the Mexican Congress, would provide
for cash settlement for all land expropriated in the
future under the agrarian policy of the Mexican
Government. Enactment of this proposed legislation would mean the end of the system heretofore
pursued of paying for expropriated lands with Mexican bonds of dubious value. Improvement in this
aspect of Mexican affairs would remove one of the
chief remaining causes of friction between the Washington and Mexico City Governments.
An attempt to assassinate President Hipolito
Irigoyen of Argentina was made Tuesday by an
anarchist of Italian origin, who fired three shots at
the automobile in which Senor Irigoyen was proceeding to the National Palace from his modest residence in Buenos Aires. The President, fortunately,
was unhurt, but one of the bullets struck Senor
Pizzio, a companion of Senor Irigoyen. Policemen
and detectives who accompanied the President, and
those stationed along the route promptly opened a
fusillade against the anarchist, Gualterio
killing him where he stood. Senor Irigoyen went to
his office in the National Palace and continued his
daily routine, characterizing the incident as "unimportant." The motive of the attack remains a mystery to the Buenos Aires police, according to dispatches from the Argentine capital, as the assassin,
although an anarchist with a police record, did not
appear to act for any anarchist or other subversive
organization. Nor did he appear to have any confederates. President Hoover promptly congratulated the Argentine Executive on his escape from
assassination. "I have learned with utmost concern," Mr. Hoover said, "of the dastardly attempt
on your life, and desire to express to you my heartiest
congratulations on your very fortunate escape. The
people of the United States join with those of Argentina in deploring this unfortunate occurrence and


in expressing their great relief and joy that you
escaped unharmed."
The Scandinavian banks all reduced their discount rates the present week. The Riksbank of
Sweden, which on Dec. 12 lowered its rate from
5 % to 5%, announced on Dec. 23 that the rate
would be reduced to 4 % on Feb. 1 1930. On Dec.
24 the Bank of Denmark reduced its rate from 5 %,
the figure which had been in effect since Sept. 26,
to 5%, the lower rate becoming effective Dec. 27.
On the latter day the National Bank of Norway
marked its rate down from 5 % to 5%. The 5 %
rate had been in effect since Nov. 21. Otherwise
there have been no changes this week in the discount rates of any of the European central banks.
Rates cpntinue at 7 % in Austria; at 7% in Ger/
many and Italy; at 5 % in Norway and Spain;
at 5% in England and Sweden; at 4 % in Holland
and Belgium, and at 3 % in France and Switzerland. In the London open market discounts for
short bills yesterday were 478% against 5@514%
on Friday of last week, and 4 11/16% for long bills
against 4 13/16% the previous Friday. Money on
call in London yesterday was 2 %. At Paris open
market discounts remain at 3 %, but in Switzer/
land the rate has been advanced from 31 8% to
3 3/16%.
The Bank of England statement for the week
ended Dec. 26 shows a gain of £5,293,248 in bullion.
This brings the Bank's gold holdings up to £146,027,587 in comparison with £154,067,274 last year.
Reserves decreased £2,582,000, note circulation
having expanded £7,875,000. Public deposits fell
off £1,030,000 while other deposits increased £9,254,803. The latter is subdivided into bankers' accounts
and other accounts in which items increases were
shown of £8,983,171 and £271,632 respectively.
The proportion of reserve to liability is now 22.80%
as compared with 27.02 last week and 21.52% a
year ago. Loans on government securities rose
£1,980,000 and those on other securities £8,839,945.
Other securities consist of "discounts and advances"
and "securities." The former increased £11,670,344
whereas the latter decreased £2,830,399. No change
was made in the Bank's discount rate of 5%. Below
we furnish a comparison of the return for five years:
Dec. 29.
Dec. 30.
Dec. 28.
Dec. 26.
Dec. 25.
Public deposits
Other deposits
Bankers accounts 71,048.531
Other accounts
Govt.securities_ _ _ _ 67.123,855
Other securities_ _ _ 40,035,196
Dlsct. & advances 22,300,076
Reserve notes & coin 26,453,000
Coin and bullion- -.146,027,587
Proportion of reserve
to liabilities
Bank rate


138,711,000 140,784,940 144,730,510
14,561,638 11,632,266 8,362,323
123,975.164 131,342.517 160,681,969

48,578,992 34,167,539 64.087,526
74,448.730 96,658,843 103,280,596

33,447,429 30,083,708 19,575,857
152,408,849 151,118,648 144,556.367



a 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

The Bank of France statement for the week ended
Dec. 21 shows a further gain in gold holdings, this
time of 139,000,000 francs. The totals of gold now
amounts to 41,387,433,556 francs, which compares
with 31,834,518,586 francs at the corresponding week
last year. Credit balances abroad and bills bought
abroad register increases of 100,000,000 francs and



1,000,000 francs, respectively. Note circulation expanded 245,000,000 francs, raising the total of the
item to 67,149,168,395 francs, as compared with
61,913,826,555 francs at the corresponding week last
year. French commercial bills discounted contracted
580,000,000 francs, reducing the total of the item to
7,210,057,108 francs. A decline appears in advances
against securities of 86,000,000 francs, and in creditor
current accounts of 580,000,000 francs. Below we
furnish a comparison of the various items of the
Bank's return for the past two weeks, as well as for
the corresponding week last year:
Status as of
Dec. 21 1929. Dec. 14 1929. Dec. 22 1928.
for Week.
Gold holdings_ _ _Jac. 139,000,000 41.387.433,556 41,248,433,556 31.834,518,586
Credit bale. abr'd_Inc. 100,000,000 7,290,641,236 7,190,641,236 13,656,684,904
French commercial
bills dlacounted_Dec. 580,000,000 7,210,057,108 7.790,057,108 3,830,284,740
Bills bought abr'd_Inc. 1,000,C00 18,149,199,824 18,148,199,824 19,152.918,394
Adv.agst.securs_ _Dec. 86,000,000 2,543,886.719 2,629,886,719 2,211.453,512
Note circulation _Inc. 245.000.000 67.149,168,395 66,904,168,305 61,913,826,555
Cred curr. accts_ _Dec. 580,000,000 19,322,210,547 19,902,210,547 19,054,110,638

The German bank statement for the third week of
December, shows a gain of 17,519,000 marks in gold
and bullion. Due to this gain, the total of gold now
stands at 2,264,664,000 marks, which compares with
2,729,283,000 marks in the corresponding week last
year and 1,860,557,000 marks in 1927. An increase
appears in reserve in foreign currency of 14,956,000
marks, in bills of exchange and checks of 89,708,000
marks, while the items of deposits abroad and investments remain unchanged. Note in circulation reveals
a loss of 9,878,000 marks, bringing the total of the
item down to 4,579,047,000 marks, as compared with
4,481,522,000 marks in the corresponding week last
year. Silver and other coin and advances decreased
3,751,000 marks and 10,598,000 marks, while notes
on other German banks show a gain of only 593,000
marks. An increase is shown in other daily maturing
obligations of 46,301,000 marks and in other liabilities of 10,522,000 marks, while other assets reveal a
loss of 61,482,000 marks. Below we furaish a comparison of the Bank's items for the past three years:

[VoL. 129.

higher levels, while demand was only fair. Withdrawals by the banks amounted to $30,000,000 Monday, and some withdrawals were again noted yesterday, when $10,000,000 was called. Time loans were
quoted all week at 434@5%, unchanged from previ/
ous levels. That the trend of world money rates is
still downward was indicated this week by lowering
of the rediscount rates of Swedish and Danish central banks. Brokers' loans were reduced a further
$58,000,000 in the statement for the week ended
Wednesday night, issued by the Federal Reserve
Bank of New York. Gold movements for the week
ended Wednesday, as recorded by the Federal Reserve Bank, consisted of exports of $16,487,000,
chiefly to France, and imports of $314,000. An
increase of $11,000,000 in the amount of gold held
ear-marked for foreign account also was noted.
Dealing in detail with the call loan rates on the
Stock Exchange from day to day, the renewal rate
on Monday was 5%, and from this there was an
advance to 5 % in the rate for new loans. On
Tuesday all loans were at 5 %,including renewals.
Wednesday was Christmas Day and a holiday. On
Thursday, after renewals had been. put through at
51 2%, there was an advance to 6%. On Friday all
loans were at 6%. Time money has continued dull,
with the quoted rates for loans of all dates at 4%@
5% on every day of the week. A satisfactory amount
of business was done in commercial paper in the
open market. Rates for names of choice character
maturing in four to six months have continued to
rule at 5%, while names less well known have com/ 0
manded 5147 with New England mill paper also
quoted at 514%.

The market for prime bankers' acceptances was a
dull affair the present week, with a larger supply
of bills than could readily be absorbed, and recourse
had to be had to the Federal Reserve Banks. The
latter increased their holdings of acceptances during
the week from $309,411,000 to $354,943,000. Their
holdings of acceptances for foreign correspondents
also slightly increased, rising from $539,798,000 to
Changes for
$540,863,000. Directly and indirectly, therefore,
Dec. 23 1929. Dec. 22 1928. Dec. 23 1927.
Reichsmarks. Reichsmarks. Retchsmarks.
the Reserve Banks have become the market for
Inc. 17,519,000 2,264,664,000 2,729,283,000 1,860.557,000
Gold and bullion
77,248,000 almost $900,000,000 of acceptances—in exact figures
Of which depos.abr'd_ Unchanged
Res've in for'n curr__ _Inc. 14,956,000 405,377.000 158,224.000 279,445,000 $895,806,000.
Rates for 60- and 90-day bills were
Bills of exch.& checks.Inc. 89,708,000 2,568,710,000 1,933,514,000 2,416,850,000
48.510,000 on Tuesday advanced /
Silver & other coin__ _Dec. 3,751,000
1 8% in both the bid and the
Notes on oth. Ger.bks.Inc.
44,148,000 asked columns. The posted rates of the American
Dec. 10,598,000
Acceptance Council are now 418% bid and 4% asked
Other assets
Dec. 61,482,000 603,323,000 613,908,000 474,860,000
for bills running 30 days, and also for 60 days, 90
NotesIn circulation_ _Dec. 9,878,000 4.579,047,000 4,481.522,000 4,046,354,000
days and 120 days, and 41 % bid and 41 8% asked
Oth.daily matur.oblig.Inc. 46,301,000 448,354,000 496,473,000 567,387,000
Inc. 10,522,000 196,524,000 287,066,000 254,245,000 for 150 and 180 days. The Acceptance Council no
Other liabilities
longer gives the rates for call loans secured by
Money rates in the New York market displayed acceptances, the rates varying widely. Open market
a moderate tendency toward higher levels in the rates for acceptances have also been altered in the
short business week now ending. This was consid- particular mentioned and are now as follows:
ered natural in view of the approaching year-end
—180 Days—
—150 Days—
—120 Days—
Bid. Asked.
Bid. Asked.
settlements and the holiday demands for currency.
Bid. Asked.
Prime ellgible bills
An additional factor of considerable importance
Bid. Asked.
Bid. Asked.
Bid. Asked.
making for higher rates were the continued heavy Prime eligible bills
exportations of gold from New York to various
member banks
44 bid
European centers. Notwithstanding this combina- Eligible non-member banks
434 bid
tion of circumstances, rates for call loans fluctuated between 5 and 6% all week. The lower figure
There have been no changes this week in the
prevailed only at the opening Monday, with the rediscount rates of the Federal Reserve Banks.
rate gradually tightening to 5 % and then to 6%, The following is the schedule of rates now in effect
with the last-named rate quoted all day yesterday. for the various classes of paper at the different
Funds were attracted in substantial volume by the Reserve Banks:


28 1929.]



Federal Reserve Bank.

Rate in
Effect on
Dee. 27.

New York
St. Louis
Kansas City
San Francisco




Nov. 21 1929
Nov. 181929
July 281928
Aug. 1 1928
July 13 1928
Dec. 10 1929 Nov.23 1929
July 19 1928
May 14 1929
Dec. 20 1929
Mar. 2 1929
Dec. 6 1929



marked for foreign account. In tabular form the
gold movement at the Port of New York for the
week ended Dec. 25, as reported by the Federal Reserve Bank of New York, was as follows:
$18,388,000 to France
8196,000 from Argentina
52,000 to Germany
118,000 chiefly from other Latin
49,000 to Mexico
American countries
818,487,000 total
4,000 total
Net Change in Gold Earmarked for Foreign Account.
Increase $11,000,000

Canadian exchange continues at a discount. On
Sterling exchange has been dull and irregul
Saturday last Montreal funds were at 29-32 of 1%
firm, and on the whole little changed from las
The dullness in trading must be attributed to a large discount; on Monday at 1%% discount; on Tuesday
extent to the Christmas holidays. Business in London at 11 %; on Thursday at 1 1-32% discount, and on
came practically to a standstill on Monday night, Friday at 31-32 of 1% discount.
Referring to day-to-day rates, sterling exchange
not to be resumed except in a desultory way until
Dec. 30, so that the New York market can hardly be on Saturday last was irregular in a quiet market.
said to be in active communication with London. Bankers' sight was 4.873@4.87 13-16; cable transThe Christmas holidays have also affected trading in fers, 4.88 3-16@4.88k. On Monday the market,
all European centers. The range this week has been while irregular, displayed a firmer tone. The range
from 4.873-@4.87 15-16 for bankers' sight, com- was 4.87%@4.87 15-16 for bankers' sight and
pared with 4.87%@4.87 15-16 last week. The range 4.88 5-32@4.88 5-16 for cable transfers. On Tuesfor cable transfers has been from 4.88 5-32@4.88 5-16, day the market was dull and irregular. Bankers'
compared with 4.881 @4.88 5-16 a week ago. The sight was 4.873/@4.87%; cable transfers, 4.883L®
firm tone of sterling, despite the irregularity and the 4.88 5-16. On Wednesday, Christmas Day, there
dullness on account of the Yuletide season, is attrib- was no market. On Thursday trading was quite
uted largely to the fact that there will be an imme- restricted. The range was 4.87 7-16@4.87 13-16
diate demand for sterling and transfer of funds to for bankers' sight and 4.88k@4.88 5-16 for cable
Europe for year-end settlements, with the probability transfers. On Friday the range was 4.87%@
that the Bank of England will shortly increase its 4.87 13-16 for bankers' sight and 4.88 3-16@t.88k
gold stock to the £150,000,000 set by the Cunliffe for cable transfers. Closing quotations on Friday
committee, and to the fact that soon after the turn were 4.87 11-16 for demand and 1.88 3-16 for cable
of the year exchange begins to favor London as transfers. Commercial sight bills finished at 4.87/,
against New York as a seasonal matter. The further sixty-day bills at 4.833., ninety-day bills at 4.813(,
circumstance that money promises to continue easy documents for payment (60 days) at 4.83k, and
in New York and that funds will go abroad for invest- seven-day grain bills at 4.86k. Cotton and grain
ment to a greater extent than at any time in the for payment closed at 4.871 .
past year also favors a firmer market for exchange on
London. There are some indications that there will
The Continental exchanges have been firm, albe a resumption of gold shipments from London to though dull and irregular. Exchange on Paris has
Paris, but they are not expected to be of such alarm- been especially firm. The underlying factors are little
ing proportions as were witnessed a few weeks ago. changed from those of the past few weeks. The dullOn Tuesday the Bank of England sold approximately ness is due chiefly to the thin volume of trading sea£140,000 gold for French account because of the rise sonal at this time of year, while the firmness is attribin the franc rate above the gold point and further uted to transfers for year-end settlements and the
sales are believed to have been made for shipment to steady repatriation of foreign balances from this side
France during the week. Nevertheless, bankers be- since the collapse of speculation on the New York
lieve that the Bank of England will show gold reserves Stock Exchange. Paris is taking large amounts of
close to £150,000,000 in its last statement of the year gold from New York and has also resumed its gold
without taking into account further imports from the takings from London, though on a much smaller
United States or other purchases before the end of scale. The Bank of France statement for the week
the year. On Saturday the Bank of England bought ended Dec. 20 shows an increase in gold holdings of
£4,679,000 in gold bars. This is believed to include 139,000,000 francs, the total standing at 41,387,000,the $21,024,000 officially accounted for by the New 000 francs, the highest in the history of the bank.
York Federal Reserve Bank as having been shipped This compares with 31,834,000,000 francs on Dec.
during the week ended Dec. 18. On Tuesday the 22 1928. The Bank's ratio of reserves is also at
Bank of England bought £345,100 and sold £140,654 record high, standing at 47.86%, compared with
in gold bars, and received £135,000 in sovereigns from 47.52% on Dec. 13, with 39.32% on Dec. 22 1928,
abroad. On Friday the Bank sold £363,000 in bar and with legal requirements of 35%. Gold and gold
gold and exported £4,000 in sovereigns.
exchange now provide 100% cover for the note circuAt the Port of New York the gold movement for lation and 77% of the total circulation and deposits.
the week Dec. 19-Dec. 25, inclusive, as reported by Rediscounts of the Bank are at the lowest level sinc6
the Federal Reserve Bank of New York, consisted of June 21. This is an indication of the preference of
imports of $314,000, of which $196,000 came from French bankers for buying gold abroad rather than
Argentina and $118,000 chiefly from other Latin surrender their holdings of bills. It will be recalled
American countries. Exports totaled $16,487,000, that last week the Federal Reserve Bank accounted
of which $16,386,000 was shipped to France, $52,000 for a shipment of $11,000,000 gold to France. This
to Germany, and $49,000 to Mexico. The Reserve week the Reserve Bank accounts for an additional
Bank reported an increase of $11,000,000 in gold ear- shipment of $16,386,000 and a further shipment of



approximately $12,000,000 left New York to-day
for Paris. making a total officially and unofficially
accounted for of more than $39,000,000 in three
weeks. Paris bankers expect a lull in gold shipments until after the close of the year, but are
doubtful that the dollar rate against the franc will
recover to above the gold export point unless money
rates become higher in New York.
German marks have been hovering around gold
points with the result that there is some possibility
that year-end demand will make gold shipments to
Berlin profitable, although the shipment from
New York to Germany this week amounts to only
$52,000, which follows upon a shipment last week of
$1,334,000. Exchange on Berlin has been firm for
more than a month and a half, but the last two days
has been weaker. It is thought in local banking circles
that Germany does not at present look with favor
upon the import of gold. Money still continues
dear in Germany and the character of the financial
situation is such as to cause reserve on the part of
lenders. Business circles are again sharply criticizing
President Schacht of the Reichsbank, declaring
that his continued opposition to foreign borrowing
will mean tight money in Germany next year. and
may prevent a further reduction in the Reichsbank
rate. Strenuous efforts are being made by German
industrial interests to increase foreign borrowings,
especially in the United States. It is believed that
these efforts will result in transfers from New York
to Berlin shortly after the turn of the year, so that
the prospects are that the mark will continue firm.
Exchange on the Italian centers and on Belgium and
the minor Continental countries continue firm,
although dull, reflecting in large measure the change
in the international financial situation since October.
The London check rate on Paris closed at 123.85
on Friday of this week, against 123.88 on Friday of
last week. In New York sight bills on the French
center finished at 3.93%, against 3.93% on Friday
a week ago; cable transfers at 3.943/g, against 3.941 ;
and commercial sight bills at 3.93 8, against 3
Antwerp belgas finished at 14.00 for checks and at
14.01 for cable transfers, against 14.00 and 14.01.
Final quotations for Berlin marks were 23.933 for
checks and 23.943 for cable transfers, in comparison
with 23.95 and 23.96 a week earlier. Italian lire
closed at 5.23% for bankers' sight and at 5.23% for
cable transfers, against 5.23 7-16 and 5.23 11-16 on
Friday of last week. Austrian schillings closed at
143 on Friday of this week, against 143( on Friday
of last week. Exchange on Czechoslovakia finished
at 2.97, against 2.97; on Bucharest at 0.603/ against
0.603/2; on Poland at 11.25, against 11.25; and on
Finland at 2.52, against 2.52. Greek exchange closed
at 1.3034 for checks and at 1.303/i for cable transfers,
against 1.303 and 1.303/2.
The exchanges on the countries neutral during
the war have been firm, reflecting the better tone
in sterling and at the leading Continental centers.
The firmness is, of course, also a seasonal matter.
Holland guilders have been somewhat in demand
owing to the withdrawal of Dutch funds in preparation for year-end settlements and to the repatriation
of Amsterdam funds from the New York market.
Bankers would not be surprised were gold shipments
from New York to Amsterdam to be announced
shortly. The Scandinavian exchanges are especially
firm. The Swedish Riksbank has again reduced

[VOL. 129.

its rate of rediscount from 5% to 43/2%, the rate to
become effective on Feb. 11930. It will be recalled
that the Riksbank reduced its rate from 53/2% to
5% on Dec. 12. When the Stockholm bank reduced its rate it was believed that the other Scandinavian countries would also reduce the official
rediscount rate as Sweden, Norway and Denmark
work in close harmony in all financial matters.
Hence there was no surprise when London dispatches
stated on Tuesday that the Danish National Bank
had reduced its rediscount rate to 5% from 532%,
effective Dec. 27. Yesterday the Norwegian bank
also reduced its rate from 53/2% to 5%.
Spanish pesetas have fluctuated widely, and contrary to the general trend of European exchanges,
have moved off sharply on average. This is the
more surprising since, despite considerable pessimism
expressed in London and New York as to the outcome of the Spanish Government's 350,000,000
peseta gold loan, the lists for applications were
closed in less than an hour after opening and subscriptions by the public were far beyond expectations.
It is believed, however, in some quarters that as a
result of the loan operation the necessity for the purchase of gold standard currencies to cover applications
for the loan brought about the sharp depreciation
in peseta exchange.
Bankers' sight on Amsterdam finished on Friday
at 40.353', against 40.31 on Friday of last week;
cable transfers at 40.373/2, against 40.33, and commercial sight bills at 40.313/, against 40.27. Swiss
francs closed at 19. 443' for bankers' sight and at
19.453' for cable transfers, in comparison with
19.443/, and 19.453, a week earlier. Copenhagen
checks finished at 26.823/, and cable transfers at
26.843/, against 26.82 and 26.84. Checks on Sweden
closed at 26.943/ and cable transfers at 26.963/2,
against 26.97 and 26.99; while checks on Norway
finished at 26.82 and cable transfers at 26.84,
against 26.80 and 26.82. Spanish pesetas closed at
13.39 for checks, and at 13.40 for cable transfers,
which compares with 13.81 and 13.82 a week earlier.
Exchange on the South American countries, while
dull owing to the slim markets of the Christmas
holiday season, are also weak owing to the unsettlements resulting from the decision of the Argentine
government to close the conversion office. This was
fully discussed here last week, as were also the
contributory reasons for the weakness in the peso and
in Brazilian milreis. South American exchange has
been so quiet that present quotations are largely
nominal. An encouraging factor exists in the South
American situation, at least as regards Chile. According to a dispatch on Saturday last from Valparaiso, President Ibanez, declared that Chile has
no intention of abandoning the gold standard regardless of actions on the part of other South American
countries. He pointed out that the situation there is
particularly favorable, with the country's gold
reserves greater than the total of notes in circulation.
At the same time he stated that there is a distinct
improvement in foreign trade, with an export balance
likely. The Argentine government has arranged a
loan of £5,000,000 in London for one year at 54%,
plus M of 1% commission for the bankers. While
financial circles consider the amount insufficient
totally to remedy the present situation due to the
unfavorable balance of trade against Argentina, it is
generally believed to be sufficient to have a sub-

DEC. 28 1929.]


stantial corrective effect on the exchange rate of the
Argentine peso. There has already been a slight
recovery of the peso in relation to the dollar and the
pound sterling on rumors that the government was
arranging this loan. Argentine paper pesos closed
on Friday at 40 13-16 for checks, as compared with
40 7-16 on Friday of last week, and at 40% for cable
transfers, against 403/. Brazilian milreis finished at
10.97 for checks and 11.00 for cable transfers,
against 11.22 and 11.25. Chilean exchange closed at
123/i for checks, and 12 3-16 for cable transfers,
against 12 3-16 and 123 i; Peru at 3.74 for checks and
at 3.75 for cable transfers, against 3.89 and 3.90.


Owing to a marked disinclination on the part of
two or three leading institutions among the New
York Clearing House banks to keep up compiling
the figures for us, we find ourselves obliged to discontinue the publication of the table we have been
giving for so many years showing the shipments and
receipts of currency to and from the interior.
As the Sub-Treasury was taken over by the Federal Reserve Bank on Dec. 6 1920, it is also no longer
possible to show the effect of Government operations
in the Clearing House institutions. The Federal
Reserve Bank of New York was creditor at the Clearing House each day as follows:

The Far Eastern exchanges show little change from
recent weeks. Japanese yen continue firm, due al- Saturday, Monday, Tuesday, Wednesdy, Thursday. ?Woo
most altogether to the fact that the gold embargo Dec. 21. Dec. 23. Dec. 24. Dec. 25. Dec. 26. Dec. 27. for Week.
will be lifted by Tokio on Jan. 11. The Chinese units 130,000,000 123,000,000 152,000,000 Holiday 193.060.960 154,000.630 Cr. 752,000.000
are decidedly easier owing to a sharp drop in silver Note.
-The foregoing heavy credits reflect the huge mass of checks which come
York Reserve Bank from all parts of the country in the operation of
prices. It is understood that the Kemmerer commis- thethe New Reserve System's par collection scheme. These large credit balances.
however, reflect only a part of the Reserve Bank's operations with the Clearing
sion of American financial experts, which has spent House institutions, as only the items payable in New York City are represented
the daily balances. The large Volume of checks on Institutions located outside of
such checks do
the last year studying the financial and currency not York are not accounted for in arriving at these balances, asFederal Reserve
pass through the Clearing House but are deposited with the
problems of China has completed its work. There Bank for collection for the account of the local Clearing House banks.
can be no doubt that Professor Kemmerer's report
The following table indicates the amount of bulmay be relied upon to recommend salutary measures
lion in the principal European banks:
to the Chinese Government, but it is doubtful if any
reforms will be brought about in the near future.
Dee. 27 1928.
Dec. 26 1929.
There are men in the Nanking Government who will Banks of
Gold. I Silver.
approve and try to secure the adoption of the Kemz
146.027,587 154,067.274
merer recommendations. There are others both England __ 331,099,468
France a__
Germany b 105,738,800 c994,600106,733,400 132,182,8.50
within and without the Government who will oppose Spain
102,596.000 28.339,000 130.935,000 102,362,000 27,945,000130.307,000
56,120,000 54,638,000
them because they derive profit from the existing Italy
37,290,000 36,215.000 1,881,000 38,096,000
Nethlands 37.290,000
Nat. Belg_ 32,093,000 1,286,000 33,379,000 24.434,000 1,267,000 25,701.000
system, or lack of it. The success of financial reform Switeland 22.449,00 1.108,000 23,557,000 19,258,000 1,856,000 21,114,000
13,331,000 13,122.000
in China is closely related to the success of political Sweden__ - 9,581,00 361,000 9,942,000 9,600.000 491,000 10,091,000
Denmark _
8,149,000 8,162,000
reform. Closing quotations for yen checks yesterday Norway
Total week 864,474,855 32,088,600896,563,455808,717,273 34.434,600843.151,873
were 49.0O@49%, against 49.00@49%. Hongkong Prey. week 856,494,217 32,036,600888,530,817 806,135,951 34,400.600840,536.551
reported in the
gold holdings of the
closed at 41.75@42 5-16, against 42/@43; Shanghai ofa These are theGold holdings of the Bank of France as are exclusive of new form
gold held
Bank of Germany
statement. b
abroad, the amount of which the present year Is £7,489,400. c As of Oct. 7 1924,
at 52%@52%,against 537 ; Manila at 50, against 50; d Silver is now reported at only a trifling sum.
Singapore at 569/8@561/2, against 56 7-16@563/;
Bombay at 39 9-16, against 36 9-16, and Calcutta
Changing Aspects of the Disarmament
at 36 9-16, against 36 9-16.
Premier Tardieu's statement on Dec. 18 that "no
DEC. 21 1929 TO DEC. 27 1929, INCLUSIVE.
final decisions would be taken" at the London ConNoon Butany Rate for Cable Transfers to New York
Country and Monetary
Value to Untied Stales Money.
ference, followed by the publication yesterday of
Dec. 21. Dec. 23. Dec. 24. Dec. 25, Dec. 26. Dec. 27.
an official outline of French policy at the ConferEUROPE$
ence as set out in a note handed to the British Gov.140616 .140660 .140678
.140702 .140670
139996 .139992 .140016
Belgium, belga
.140042 .140030
ernment several days ago, has given a different orien007215 .007227 .007222
Bulgaria, lev
.007220 .007240
Czechoslovakia. krone .029679 .029679 .029687
.029686 .029687
.268313 .268313 .268357
tation to the approaching discussion from that which
.268347 .268342
England, pound ster4 881671 4.881820 4.882305
it was originally expected to have. Instead of going
4.882372 4.882010
025170 .025171 .025175
Finland, markka
.025173 .025168
.039399 .039405 .039415
France, franc
.039419 .039416
directly at the question of naval reduction and limiGermany, reichsmark .239534 .239580 .239553
.239571 .239482
012998 .012994 .012998
Greece, drachma
.012997 .013002
tation, as Mr. Hoover and Mr. MacDonald appar403236 .403434 .403719
Holland, guilder
.403719 .403732
175117 .175167 .175137
Hungary, pengo
.175130 .175205
ently had planned, without regard to the bearing of
052347 .052352 .052352
Italy, lira
.052351 .052347
.268192 .268255 .268323
Norway, krone
.268286 .268336
naval armament upon armaments of military and
.111983 .112038 .112055
Poland, zloty
.111983 .112297
.045116 .045116 .045116
Portugal, escudo
.045183 .045160
air forces, the French Government has now com.005966 .005977 .005969 Holiday .005968 .005983
.138420 .137504 .136445
Spain, peseta
.136359 .134577
mitted itself definitely to the proposition that the
269800 .269772 .269732
.269726 .269594
Switzerland, franc- -_ .194519 .194523 .194564
.194546 .194543
question of armament must be considered as a whole
Yugoslavia, dinar___. .017722 .017741 .017724
.017723 .017746
ASIAwith reference to the special needs of each country
China555000 .546041 .545416
Chefoo, tael
.545208 .545625
647187 .535937 .537656
Hankow, tael
for defense, and that whatever is done at London
.537500 .539062
.533571 .525178 .522767
Shanghai, tael
.523928 .524196
i .563333 .554165 .553541
Tientsin, tact
must be regarded as preliminary to a settlement of
.553333 .554166
Hong Kong, dollar_ .421339 .417321 .416785
.418750 .414285
.385312 .377500 .378125
Mexican,dollar _ _
the general issue by the League of Nations. To so
.378125 .375468
Tientsin or Peiyang,
.386666 .380000 .379583
.380000 .376458
much of this program as makes armament reduction
.383333 .376666 .376250
Yuan, dollar
.376666 .373125
India, rupee
.363903 .363903
I .363932 .363964 .363903
depend upon the special needs of the several counJapan, yen.489750 .489937 .489812
.489787 .489987
.559791 .560833 .559791
Singapore (8.8.) dol
.559791 .560000
tries involved, the Italian Government appears to
.991128 .990130 .986562
.988159 .990147
have agreed, although the text of the Italian note
.999437 .999362 .999362
.999362 .999300
Cuba, peso
.479450 .479575
Mexico. Peso
i 479900 .479700 .479525
to France has not yet been made public.
Newfoundland, dollar) .988187 .987375 .984125
.985825 .987625
SOUTH AMER.The French position, as outlined in the note pubArgentina, peso (gold) .914077 .918473 .924943
.925890 .927479
.110770 .110290
Brun, rallrels
I .108700 .110025 .111044
lished on Friday, may be summarized as follows:
.120868 .120869 .120873
.120873 .120870
Chile, peso
.928349 .934966 .941345
.942595 .945960
Uruguay, MO
The reduction of armaments, which the French GovColombia. peso
.983900 .963900
I 963000 .963900 .963900
ernment is as desirous as others to bring about,



will be based upon Article VIII of the Covenant of
the League—a basis which takes account of the particular needs of a country for defense and "does not
imply a prior application of mathematical ratios."
France would prefer a limitation by total tonnage,
but it is prepared to accept an arrangement which
provides for a regulated distribution of total tonnage
among various classes of vessels. A recognition of
the "close interdependence" between land, naval
and air forces is one of the fundamental principles
of the French policy of defense, and while the Government "does not wish to find itself compelled
in London to raise any questions relating to the
limitation of land and aerial armaments," it expects
the connection to be kept in mind. The French requirements must further take account of the defensive needs of the French empire as well as of
France itself, but a special agreement regarding
the Mediterranean, to which Spain in particular
should be a party, is held out as a possibility. In
regard to the Paris peace pact, the note declares that
the pact "is based on the force of public opinion,
which is great, but its rational application has not
yet been organized. It does not settle all the questions of peaceful procedure and mutual assistance
against an aggressor,implied in the outlawry of war.
It is undoubtedly a real step toward the preservation of peace, but it cannot be looked upon as sufficient in its present state to guarantee the security
of nations."
The implications of this program are obviously
far-reaching. In asserting that naval tonnage must
be based upon the country's needs, and particularly
its need for security, the French Government has
taken the position that the size and character of
armaments depend upon a country's political situation, and that to the extent that the political situation involves a provision of security, the character
and amount of security must be taken into account.
The French press has for some time been active in
pointing out that the position of France, from the
point of view of national security, is very different
from that of Great Britain or the United States or
Japan. France has both an extensive land frontier
and an extensive coast line, the latter lying partly
on the Atlantic and partly on the Mediterranean.
In addition, it has extensive colonies in Africa and
Asia. Notwithstanding the progress that has been
made in Franco-German rapprochement, it cannot
be denied that fear of Germany is still a very real
matter with France, and to guard its land frontier
in the event of another war France is now constructing a continuous line of modern fortifications, at an
expected cost of some $200,000,000, all the way from
the Swiss border to Belgium.
Until the League of Nations, accordingly, shall
have put into effect some general scheme of armament reduction, the French Government appears
determined to rest upon the contention that it requires land, air and naval armaments adequate for
its defense, and that the naval forces cannot properly be regulated without consideration of the other
two. In support of this contention it appeals to the
Covenant of the League and the work of the Preparatory Commission. With this general position Italy
appears to agree,but with the important proviso that
it must be given the right, no matter what international agreement is made, to keep its own war forces
on a parity with those of any other Continental
Power—which means, of course,with thoseofFrance.

[VoL. 129.

Both countries, moreover, are so far committed to
the use of the submarine as to Make it unlikely that
the London Conference, faced with a demand from
Japan, France and Italy for the continuance of this
type of vessel, will be able to take any steps toward
abolishing it. Any attempt on the part of Great
Britain and the United States to put pressure upon
the other three Powers regarding the submarine
would obviously endanger the success of the Conference.
The British and French press have also been emphasizing of late two other points at which the Conference may meet difficulty. Up to the present time
Mr. MacDonald has made no statement of the reasons
which led him to agree, in his conversations with
the American Government, to reduce the present
cruiser strength of the British fleet from upwards
of 70 cruisers to 50. Questions put to the Government in the House of Commons have failed to elicit
the desired information. The issue of parity with
the United States does not enter into this phase of
the discussion, since all three of the British parties
are in favor of such parity, but so considerable a reduction in the British cruiser strength as has been offered as a basis of parity naturally arouses curiosity
and concern. French critics, on their part, have
been calling attention to the fact that if AngloAmerican parity in cruisers is agreed upon at London, and the United States actually builds up to
the limit which is set, the outcome of the Conference
will be, not naval reduction but naval increase; and
increase, too, not merely in tonnage but also in
efficiency, since the new American cruisers will be
more modern and more effective than the older
British cruisers that are retired. Washington dispatches several weeks ago pointed out that Mr.
Hoover's announcement that work would be stopped
on three cruisers whose construction had been authorized was not as yet of any practical significance,
for the reason that the plans of the cruisers had
not yet been completed, and the preparation of the
plans was going on as before.
On the whole the outlook for the London Conference becomes more rather than less complicated.
Too much, perhaps, has been made of the prediction
that the MacDonald Government was likely to be
overthrown before long. Parliament adjourned on
Tuesday for the usual holiday recess, which is to be
prolonged for one month, so there will be no further
opportunity to attack the Government in either
chamber until Parliament reassembles on Jan. 23,
two days after the Conference is scheduled to meet.
On the other hand, the narrow margin of eight votes
by which the Government was able last week to
carry its coal bill to a second reading has again
called attention sharply to the fact that the Labor
Government has only a minority following in the
Commons, and Mr. Thomas's admission that he has
not solved the unemployment problem, while creditable to his frankness, has served to increase apprehension. The grave situation in India, also, where
the Indian National Congress appears to be on the
point of breaking down over the issue of dominion
status for India, has not only solidified Conservative opposition to Mr. MacDonald on the ground
that he is willing to concede too much in the direction of Indian independence, but has also evoked
criticism in the Labor ranks on the ground that he
has not been frank enough and has actually offered
too little.

DEc. 28 1929.]


Mr. MacDonald's statement on Monday that "the
question of naval policy, as apart from naval
strength, will not be considered at the five-Power
naval conference" was made in answer to an inquiry
from a Conservative member as to whether the Conference would "entertain proposals involving the
use, or possible use, of the British fleet in other
peoples' wars," and may not have been intended to
cover also such questions as France raised in its
note. Secretary Stimson's statement last Saturday,
again, to the effect that" the problems of the United
States were separate from those of the League of
Nations, but there was no intention on the part of
this country to interfere with programs of other
Governments that are members of the League," may
have been only a diplomatic way of avoiding more
explicit comment on the French program as it was
known at that time. There seems no way, however,
by which the Conference can avoid meeting frankly
the French contentions, notwithstanding that by
doing so it will at once give to the program of the
Conference a different and far wider scope than
was originally planned. It is possible to look at
the French proposals as involving only a question
of procedure, but it was procedure that wrecked the
deliberations of Mr. Coolidge's three-Power Conference at Geneva and kept the Preparatory Commission of the League from doing anything useful, and
it is upon procedure that France insists. Fortunately, the attitude of the French Government
toward the Conference as expressed in its note is
cordial, and since every conference has to accept
compromise somewhere, the new turn which the
French note has given to the discussion may result
only in shifting the points at which bargaining may
have to be done.
The New Year.
As we look forward to the dawn and passing of
another year we become conscious that it is really
a state of mind. We read into it our own hopes,
desires, aspirations, resolves. It is yet to be—and
what will be, will be. Yet we know that, with our
powers and consecrations, we can fashion it, in some
degree, to our own conception of what we would like
it to be. Let us look, for a moment, at this formless
panorama of coming events that do in part cast their
shadows before, leaving out our business relations,
that we may see more clearly the opposition of personality to time and tide:
We have but to enumerate the exploits of man
shown in a single newspaper to realize that though
he sometime must die he is still permanent and all
else ephemeral. He is the great fixed observer, as
on a mountain top, and the flood of his own efforts
flows on endlessly by him. It is a pleasing and sustaining thought to introduce into that maelstrom
of effort and accomplishment we are wont now to
call a "materialistic civilization." Man—not only
the doer, but the observer, appraiser, judge! Holding to this conception, the New Year becomes a
golden road to that satisfaction and happiness with
which we invest it. This is true of the individual as
well as of the race. "Life is what we make it." And
the short span of a single year, by reason of our
endowment of personality—our ability to appreciate
—may be a rich harvest of engaging blessings or the
waste of a lonely wind blowing over an empty plain.
There is so much in the world, already, to invite our
interest and spur our endeavors, that the oncoming


of a new lease of time is a privilege to be thankful
for and a proffer of gracious delight, albeit we are
aware that sorrow intrudes and pain and conflict
ensue, and by our own measure there is inequality
all about us.
It is inevitable that we look more upon the material objects than the secret motives. Yet there
is not a thing in existence that had not a thought
going before it. Knowledge, education, commerce,
the city, the hamlet, ships and cars, highways and
growing fields, conventions and convocations, inventions and governments, theories and problems, the
intermingling of fact and fancy, of real and ideal,
all that constitutes life, is the heritage one year
bestows upon another. What a glorious legacy 1929
leaves to 1930! All of it is for each who will take
it—not, of course, the material objects, but the true
wealth of intent, purpose, and benefit. Is it strange,
then, that we are not all equally happy and contented? We must look within for the ca,use. And
here we encounter the mystery of man's complex
Individuality gives us each identity of being; and
personality gives us the sense of being apart from
and superior to environment. Though "created
equal," in the sense of freedom to exercise self, we
are not equal participants in possession of either the
real or ideal. And therein lies the glory of existing
and the beneficence of endeavoring. Each year, as
it comes, fills the horizon of every life with opportunity. To each man is bequeathed the vast past;
and to each man who greets the new year come the
undiscovered triumphs of the future. For, out of
the New Year shall grow all that unmeasured time
shall know. And this watcher by the way, this
observer on the mountain top, this toiler in the
trenches of to-day, is, in this sense, master of illimitable time and "captain of his soul."
A year is but a drop in the ocean of time. Yet
in that drop, suspended in the sunlight of creation,
is mirrored the history of man. Time flows on
forever. A date, a year, is but a point in that flowing. Man, the onlooker, alone appreciates and understands, though imperfectly—and in that power
approaches the divine. We come then to the most
precious thought connected with the little span of a
single year—that this man endowed with all the
progress of the past, himself potentially master of
all the future, is the wonder-worker who out of his
own personality can bring to himself both peace and
joy. Philosophy and religion both teach us that it is
from within proceeds our greatness and goodness.
As the works of man, old and new, flow by in magnificent processional, how small becomes the frantic
figure snatching vainly at fortune and working incessantly in the muddy stream for fame and place.
How grand, by contrast, appears he who, welcoming the years with a smile, sings as he works, joys as
he thinks, and is at peace as he accomplishes, be it
little or much, conscious that he is doing his best
under his circumstances, and that his contribution
to the good of those near and dear to him swells the
mighty harvest of all life on earth, and so girds his
mind and spirit with appreciation of the meaning of
it all, that he greets the years with courage and
laughs at the fate that would bear him down!
Yes, the coming year is redolent with promise to
him who will. What may not man accomplish in
this short space! Thinking on the heritage of knowledge falling down to us we are admonished, however,



that one man can absorb only a small part of it.
To try to gulp down what is known of things, even
in a single lifetime, is foolish. To rightly appraise
opportunity requires poise and selection. As a
people, as we greet another year, there are indications that we are at a pause in our headlong progress. We do not refer to the "smash" in stocks,
though that had some effect in changing our outlook.
Out of the surfeit of our inventive advance we are
coming to exercise more discrimination. If wise old
Ben Franklin were alive he would find exquisite
delight in our scientific discoveries, but he would
advise moderation in their use. Blind acceptance
of every new-fangled contraption put on the market
by commercial endeavor cannot be absorbed by personality—some of us when a fuse blows out must sit
in the dark till the electrician comes—and that
knowledge which does not enter into our inner being
is largely waste; that is, for the individual.
Thus in trying to realize our heritage from any
preceding year we must take into account the person
as well as the mass. We shall not retard general
progress by striving to assimilate well that portion
which affects our immediate lives and loves. Bright
though it be with promise, the year is but a measure
of time—time, though, is but a measure of the inner
growth and understanding of each of us. The
observer and appraiser is more important in the
scheme of things than that which is seen and studied.
A glorious heritage, an inspiring opportunity, a
magnificent experience, lies before us; but it is ourselves alone, not the mass-production and the
dazzling discovery, that reveals the intent and purpose of hum= existence.
When the midnight bells "ring out the old, ring
in the new," they do not always "ring out the false,
ring in the true." Material knowledge sometimes
dulls our senses and obscures our reason. Millions
are asking themselves what they will do with this
gift of another year. They are making resolves as
to conduct and endeavor. They are laying plans for
the acquisition of wealth,for the securement of place
and power—and for the outpouring of the spirit of
fellowship and goodwill. All these things are
worthy in their place. But he who seeks an understanding of time as opportunity soon learns that
though time seems to pass, man himself stays—the
onlooker. Mere years are alike, but the outflowing
of the soul is the only true measurement of human
existence. And there is no doubt that the world
itself is asking more than ever before the meaning
and purpose of its mastery of the physical.
In the very decadence of the Church there is a
revival of real religion. In the philosophy of analysis of "things as they are" there is a recrudescence
of hunan rights, a purification of law, and a recasting of government. In Science there is a distinct
and distinctive reaction toward the Spirit that lies
behind the atom and the start. In Letters and Arts
there is a reflection of the personality which towers
over and above the splendor of classic achievement.
And in Education there is a keener search for the
infinite possibilities of Self. In a word, in the old
line of Pope, there is a new realization that "the
greatest study of mankind is man"! The year ushers
in a better understanding, a more inviting field of
effort, a more refined wealth of content and joy.
But the individual must look within if he be enabled
rightly to interpret the without. To merely ride
forward on the wave of progress, without purpose,

[VOL. 129.

is to "live while we live," and forfeit the divine privilege of being worthy of what the years may bring.
There is still a beautiful sentiment in the old
English rhyme: "Gather ye roses while ye may,
Old time is still a-flying." But we cannot take our
pleasures all at once. We cannot embrace all knowledge and work in a single year. Life is not a threering circus in which we lose the best by trying to
see it all. Concentration on the task in hand and
contemplation of the "passing show" are still prime
virtues. Great companies, using the "cyanide"
process, will gather large quantities of gold; but
when the grass-roots nearby are full of small grains
and nuggets we can earn good wages by the oldfashioned "washing" or "panning." Appraisal
rather than achievement, therefore, is the important
part of opportunity, as the years come to us.
Nothing can stay the new discoveries, inventions,
(Millions, after their own desires, according to
their own abilities, spurred on by their own conceptions of needs, are at work pouring endless values
into the lap of the world. But no one of us can
possess or enjoy them all, in a year, or a lifetime.
It follows that "progress" and "prosperity" are to
some extent false and exciting cries, that confound
us rather than encourage us. And when each toiler
has freedom to follow his own star there is greater
variety in production, a wider degree of employment, and more satisfaction to those who work.
Looking on the masses, we lose sight of the individual. To the personality, contemplating the
stream of things and events, forever in motion, calm
comes from ignoring time and tide. One year is
only the extension of another. One life is only the
outgrowth of another. Yesterdays and to-morrows
are nothing. To-day is all there is or ever will be.
And so the coming of the New Year suggests only
that we live the best we may as best we may, working, observing, appraising—conscious of our own
superiority to the scenes and sanctions that pass
us by.
A Little Lesson In Governmental Control.
An item in the New York "Times," Dec. 19, reads
as follows: "A Congressional investigation of the
moving picture industry, similar to that proposed
by Senator Walsh in the last Congress, but to include also an investigation of Will Hays, 'czar' of
the film industry, was demanded by Canon William
Sheafe Chase as secretary of the Federal Motion
Picture Council in America, Inc." . . . "As an
alternative to a Congressional investigation, Canon
Chase suggested the creation of a Federal commission for the supervision of the film industry, similar
to that established for the regulation of radio broadcasting." The item continues: "Enumerating a list
of promises of reform whieh he alleged have been
broken by the motion picture industry in the past 20
years, Canon Chase quoted Roger Babson as authority for his contention that the movies are the
basic cause of crime to-day, and charged that the
"Hays organization in a scandalous manner has
used various church organizations, women's clubs,
and welfare organizations to disseminate subtly
erroneous propaganda, designed to chloroform the
consciences of respectable people so that they will
not protest against filthy films." . . . "This,
Canon Chase declared, is now coming to an end, as
churches and other organizations are preparing for

DEC. 28 1929.]



a campaign of cleansing of the film industry." And the land. It is referred to as a billion dollar enterfurther he is quoted as saying: "Every nation in prise. In one city it is alleged that a million dollars
the world, six States in the United States, and 150 a day pass into its coffers. These figures may be
cities of the United States have so-called censorship dismissed as irrelevant to our contention that the
laws against Mr. Hays's films." . . .
task of "investigation" is beyond the province of
We note this news item not for the purpose of Congress. Why not for the same reason order an
inquiry into the moral character of the films or overhauling of the legitimate stage? Why not look
their influence on the morals of the people. We into the influence of the huge sums spent on footdo not know whether or not they are the "basic ball and baseball? There is absolutely no end to
cause of crime." No such charge can be proven, these inquiries if we once admit their propriety.
for there are too many other causes converging to
Naturally, the motion picture industry replied to
the production of "crime." It seems certain that the covert charges made by Canon Chase. Carl E.
some of the pictures must have a tendency in that Milliken, secretary of Mr. Hays's organization,
direction. But sweeping charges, as we have just another news item relates, in his statement said:
intimated, are more easily made than proved. On "The industry in its co-operation during the past
the other hand, if the number of censorships alleged several years with more than 400 responsible rehave no power of control what would be the use of ligious, civic, and educational groups has not asked
creating a Federal commission? As we understand for itself anything from these co-operating elements.
the "regulation of radio broadcasting," it is pri- On the contrary, it has provided them with a chanmarily for the purpose of bringing order out of the nel, which they greatly desired, through which their
chaos that would ensue if broadcasting were per- influence and opinion on the maintaining and immitted to everyone without direction and control. provement of motion picture standards could reach
It is more a proposition in mechanics than in morals. the makers of pictures in Hollywood." . . . "In
But even if this be not true, there is no good reason addition, many of the co-operating organizations
why a Federal commission should be created to asked for facilities for the pre-viewing of pictures,
regulate the popular use of every invention as fast in order that they might inform their own constituas it comes into commercial use. Our chief objec- encies of coming pictures which fully met the standtion to this proposal lies in the fact that unless we ards of the various groups. These facilities also we
sometime put a stop to these "commissions" they have furnished. The sole motive and result has
will overrun all business and turn the Federal Gov- been the stimulation of the best pictures." . . .
ernment into a system of interwoven and overlap- "Scientific opinion throughout the world has marping bureaus controlling industry and confining the shalled itself, after painstaking investigation, beliberty of the citizen.
hind the premise that American motion pictures,
It is just one more example of running to Congress produced under the voluntary safeguards now in
for the purpose of imposing opinions of a limited force in Hollywood, are a positive deterrent to crime
class upon all the people. The movie industry seems and wrong doing." Here we have the two sides to
well able to take care of itself. If it does not rise the question. Admitting, which we do not, that
higher than the people who patronize the "shows," 'Canon Chase speaks for any considerable part of
why do they not regulate it by staying away? Well these organizations, what is to be the outcome?
established police reports show that the "heavy"
If the social and industrial elements conflict in
crimes are mostly perpetrated by young men from their opinions what can Congress, or its investiga17 to 22 years of age. Are these educated alone in tion, do about it? Can it reconcile the two views?
the picture houses or do they receive a part of their Can it perform the delicate task of balancing beinstruction in pool halls and speakeasies? Can it tween the two? Where will it go for information
be that respectable citizens above the ages cited are on which to predicate a law giving the Government
immune to this powerful influence that threatens the power to censor, regulate, or control? Is it not
to destroy the country? It is somewhat of a mystery the height of folly to intervene? Yet we have one
• as to why they continue to patronize by droves and more illustration of the semi-socialism of taking over
crowds the inanities shown on the screen, but they do the morals of an industry. And if Government &ea
not seem to be wholly revolted by the crime features undertake to say the "influence" is either good or
that so arouse certain of our reform societies. But bad, how can it enforce its view, in the end, save by
all this is aside from the proposition to load the making and distributing the pictures? Censors
Government down with another expensive and prob- appointed by States and cities do not always agree
ably inefficient bureau. As for an "investigation" on the pictures to be shown or suppressed. If the
by Congress, is it worth while or the legitimate work Federal Government does undertake by means of a
of that body?
commission or bureau to decide it must appoint
There is already enough serious work before the officials, and these can give no other opinions than
present Congress to warrant a cessation of these those of individuals forming a majority of the com"investigations." It is probably useless to say this, mission. Can this opinion ever be as strong as the
but the time will come when the freedom of the independent mass opinion of the patrons? Must
citizenry will be so cramped and cabined as to "public opinion" be sacrificed to "governmental
demand a new view of the duties of Congress. At opinion," or to the private opinions of ordained
the last meeting of the Gridiron Club in Washing- censors?
ton the President was good-naturedly rapped pretty
We cite this controversy merely to show the
hard for his alleged penchant for the creation of futility of attempting the impossible, and to indicommissions. Congress should be further from this cate the lengths to which groups and classes will
charge than the Executive. It is inevitable that if go to attain governmental control. Should Congress
this method of "control" be continued the people play into the hands of this sentimentalism? Are
will be insensibly led to believe in paternalism. the people as a whole asking for this sort of atThe moving picture industry is one of the largest in tempted regulation? The morals of the people can



never be declared or controlled by Congress or by
law. The very philosophy of morals is changing.
There is what is now contended is a biologic basis
for morals. The edicts of the creeds are being questioned. There may be nothing but theory and talk
in all this, but on what basis can Congress act in
its determination? What credo will it adopt; what
can it adopt save the general belief of the people,
at the time—and if the people are the arbiters why
not let them alone and preserve their freedom to act,
by consent or condemnation? Congress has already
far transcended its Constitutional duty in these
manifold investigations. The further it goes the
less it accomplishes save to mislead the people
toward paternalism. This incident is merely a trifle
in itself, but it shows a predominant passion that is
dangerous to liberty of the individual.
Naval Armaments—Limitation or Reduction.
In "Collier's," Dec. 7, in an article entitled
"Bigger Guns or Better Homes," Senator William E.
Borah presents the taxation side of war in a striking and convincing manner. After recounting the
patience of the people in submitting to the "burdens
unnecessarily laid upon them by their Governments," he brings the subject down to the present
time, on the eve of the London Conference. He
writes: "What is the situation seven years after
the Washington Naval Conference? Great Britain
is spending $4000 a minute for armaments. We
are expending no less. In fact, we lead the world
in two things—in talking about peace and in expending money for armaments. Every blessed hour
that Premier MacDonald spent upon his peace mission, the two nations so profoundly moved in the
cause of peace were each expending over $60,000 in
preparation for war."
"There are more men in arms at this time," says
Mr. Borah,"than at any time in the world's history.
And notwithstanding all the pledges and continued
display for peace, the burden increases. In this year
the world will spend $4,300,000,000 for the instrumentalities of war. These peace-professing nations,
whose leaders daily announce their love for peace in
the market place, have navies in size and efficiency
and cost without precedent. And with all their
ingenuity and devotion to peace they have difficulty
in devising a scheme which will sink a single ship.
The taxpayer, the burden-carrier, sees nothing in the
way of relief—whatever the plan, it does not reach
him. Continental Europe, not including Russia,
has two million men in arms. Europe is an armed
camp. Countries, impoverished and with many of
their people living in squalor and misery, are still
expending 85% to 90% of their revenue, revenue
extorted from the scant pockets of their people, for
the upkeep of the war system. Four billion dollars a
year is coined from the blood of the people and used
to maintain a system which keeps them in many
countries in economic slavery."
Let us quote, in disconnected way, a few more of
the Senator's incisive statements. Speaking of the
treaty of the nations "never to seek settlement of
international controversies through other than
pacific means," he says, "the building of armaments
continues and the expenditures of the war system
increase." . . . "Our acts do not conform to
the written pledge. Our deeds impeach every syllable of the treaty." . . . "An armed world is
a fighting world. If under these treaties we are

[Volk 129.

to continue to arm and to tax and to rely upon
force, we may be assured that upon the slightest
occasion, in the future as in the past, force and
not peaceful methods will be employed in the settlement of international disputes." . . . "If the
peace pact does not mean reduction of armaments,
it does not mean the elimination of that state of
mind, the fears, the suspicion and hate, which inevitably lead to war. If the nations have not sufficient faith in the treaty to curtail their fighting
machines, they will not when a controversy arises
have sufficient faith in the treaty to lay aside their
armaments and seek settlement through peaceful
means." . . . "This conference will be the test
of the worth and sincerity of all these things (our
protestations of friendship and love of peace)."
. . . "Does it not all seem like incipient insanity?
While professing to be considering preparedness
we are undermining the economic strength and the
development of our country" (by these enormous
and enervating expenditures), "which are the basis
of national power and the real guarantee of national success whether in peace or war." . . .
"The peace pact would never have become a reality
had it not been for the powerful and persistent support of public opinion, not only in this country, but
throughout the world. And it will never be of any
practical effect, never result in the reduction of the
world's armaments, unless the same powerful and
persistent influence continues to exert itself."
Somewhere in one of Premier MacDonald's addresses in this country he said, in substance:
"Parity? We gladly grant you that—and you cannot put it too low for us," and Senator Borah points
out that the people can understand "reduction"
without a knowledge of technicalities. Yet we read
of demands as to the Mediterranean made by France
and Italy, and that our conferees preparatory to
sailing are being schooled in the "position" that the
United States is to assume. Truly, as Senator
Borah says, the people are marvelously patient with
their Governments in submitting to tax burdens.
Think of these peace-protesting nations paying out
85 to 90% of revenue for war, past, present, or to
come! How long will they bear these burdens?
What could in equal degree induce internal revolutions—with which the League and the peace pact
can have nothing to do? What vast and permanent
internal improvements could be made in our own,
and every other country, with these billions! Yet
our Senate quarrels over a Tariff bill, and orders
investigations of lobbying. What does this peace
pact mean, if not that we shall nevermore have use
for armies and navies since we have solemnly
pledged ourselves to settle all disputes by peaceful
means—not by force?
"Public opinion." In this case there is not a
single doubt as to what the people want and where
they stand. Will this dickering as to the amount
of so-called "preparedness" go on until the question
of complete and immediate disarmament will be the
only issue? It will, unless this and subsequent conferences make material reductions. The question of
the obsolescence of battleships is broached. Why
not, then, get rid of them all, since they are proven
vulnerable, from the air, in war? Why not cut the
cruisers in half since fast fleets are no longer needed
in view of the pact? Why not prohibit submarines
and all the devilish undersea craft? Why not declare strongly against the use of poison gas and

DEC. 28 1929.]


prohibit its manufacture? Why not? Because
there are military experts always on hand to present
figures on the relative armaments the conferring
nations possess—and, according to their dictum,
must continue to possess. Why not? Because there
is that old lingering sentiment that war will come
and cannot be prevented—a sentiment that rules the
military mind of a part of the population.
"Patience" there is, but there is also apathy.
War can be prevented if the various peoples of
earth will bestir themselves and demand that these
conferences actually do something to lift the tax
burden and forestall war by destroying its engineries. Can fleets fill the seas with terror and
death when there are no fleets? Can navies do
battle when they are sunk to the bottom of the sea?
What does destruction of fighting ships mean?
That there, so far as these are concerned, be no invasion from overseas; that the oceans themselves are
protective in their very nature. Do not say in
answer "there can be invasion by air." If this be
true, all the more reason why the navies be exterminated. And for every ship peacefully sunk there is
more money left in the pockets of the people with
which to build homes. Civilization, enlightenment,
education—let them speak as they have never spoken
before—and in thunder tones.

Pessimism and Fact in the Business World.
[Editorial Article in New York "Journal of Commerce." Dec. 23 19291

The "Journal of Commerce" has received letters from a
number of persons, both readers and non-readers, with
reference to its present and recent positions on business and
finance. One group is disposed to congratulate it upon
having been moderate in its attitude, nonpartisan and disposed to point out the dangers of the situation which led to
the recent panic. Another group is disposed to take issue
with it for "pessimism",disposition to "sell the country short"
and lack of vision. It so happens that this kind of discussion, which would otherwise be a purely individual matter,
and hence not worth mention, coincides with a general public
discussion on the same subject, in which two sides are
sharply lined up against one another. What is the truth in
the matter?
A newspaper in this day in order to keep alive must have
many sources of information, and must be constantly scrutinizing the character of the information that comes to it from
these sources. They are seldom sources that are inaccessible
to anyone else who wants to take the trouble to resort to
them, but they are sources that are in fact not available to
the rank and file of citizens, because they do not want to take
the trouble or spend the money necessary to make such
compilations. Normally, therefore, a well-informed newspaper has at its current disposal a body of facts relating to
general conditions in its field that is larger than that possessed by the rank and file of individuals.
How shall it use these facts? First of all, it ought to be
perfectly truthful and straightforward in stating them without color. This truth and straightforwardness should include a refusal to suppress salient developments. The truth.
the whole truth and nothing but the truth so far as is available should necessarily be the fundamental principle .,f relationship between the newspaper and its readers. Business
facts are in many cases complex and business itself has many
branches, so that the average business man cannot expeet
to be either fully informed or prepared to judge of contliti•
in other lines. The newspaper therefore has a duty if in t rpretation over and above its statement of facts, and i
interpretations should be frankly and fully given as snot') this is to say, separate from the facts, in order that the realer
may himself judge of these interpretations and compare
them with those of others.
No newspaper has a monopoly of knowledge or judgmet t,
and accordingly its own interpretations in many cases are
likely to be quite inferior in quality to those that can be made
by many of its readers. The wise newspaper therefore, seeks
catholicity of interpretations just as it seeks universality in


news. It endeavors to collect the ideas of as many persons
as possible, sift them, and make use of those which it deems
best and sanest in explaning to its readers what it thinks
about current events. It should be particularly careful to
do this in connection with finance and business for the
reasons which have already been stated—the complexity and
difficulty which surround facts of this nature.
The present is a time of disposition to be rather less than
frank with the public. A good many leaders of opinion are
saying one thing and doing another. They are also saying
one thing in one place and another in another. We make
no specific complaint of any particular person, but we state
what is well known. There are many persons who habitually
feel that they ought to cover up unpleasant or alarming facts
in order to spare the feelings or quiet the nerves of others.
This is usually a mistaken policy, for while it may soothe
some, it invariably deceives many. The announcement in
high places that all was sound throughout the country just
after the first break in the stock market led many thoughtless
men to throw their savings into the market only to be wiped
out or suffer serious loss as a result of the second break in
the market. The statement that demand is as good as it
ever was and that business will be larger in 1930 than in
1929 has already led many unwary persons into expenditures
that they ought not to have made.
As a matter of fact, there is nothing fundamentally unsound so far as can be learned in our present business structure. There is nothing, the "Journal of Commerce" believes
that is so unfavorable that the average man cannot hear it
with entire equanimity. The minor evils from which we
suffer would seem as nothing in some of the European countries, that have been undergoing the uttermost in economic
readjustment. The readers of the "Journal of Commerce"
are adults, most of them engaged in adult occupations. They
are entitled to know all that this newspaper knows or believes with the same sincerity that they would expect in
ordinary conversation.

National Income Totals $89,419,000,000 According to NationalBureau ofEconomic Research
--Increase of $23,470,000,000 in Ten Years.
In 1928 the total realized income of the people of the
continental United States, estimated in current dollars, was
$89,419,000,000, an increase during the 10 years from 1919
of $23.470,000,000, and more than trebling the income realzed 20 years ago, according to advance figures taken Dec. 16
from a report soon to be issued by the National Bureau of
Economic Research. The full report (copyright), covering
more than 500 printed pages, will give in detail the annual
changes in the national income and its purchasing power
from 1909 to 1928. It gives the results of a four years'
investigation by Dr. Willford I. King, aided by the National
Bureau's Research Staff, under the general supervision of
Professors Edwin F. Gay and Wesley C. Mitchell, Directors
of Research. This report brings the figures more nearly
up to (late, it is stated, than any of the National Bureau's
previous accomplishments in presenting the country's economic condition.
stit(0 of the set of comprehensive tables which accompany the report discloses, it is pointed out, the almost steady
upward trend of the nation's income during the last two
decades. It is stated that the only lapse since 1919 came
ill the period of deflation in 1921, when there was a shrinkof $10,628.000,000, or from $73,999,000,000 to $63,371,000,000. With the passing of this year of depression the
steady increase in the figures began, as shown in the following table:

74.337.000,000 1927 1928


Commenting on the total of realized income the National
Bureau's report draws attention to the fact that the figures
do not include any allowance for the income which might
he imputed to housewives and householders for services
rendered to their own families, nor the value of goods and
services received by employees in the form of expense
accounts, nor money earned through odd-job employment.
It is pointed out that the first two classes of items are so
great that, were they included, the total income figures
might be largely increased. Further, it is stated that the
total of realized income does not include any income arising
from changes in the value of property.


Wages $32,235,000,000 in 1928.
An analysis of the income table discloses some interesting
facts relative to the income of entrepreneurs and of employees, the latter including both salaried workers and
wage earners. The share of entrepreneurs, the term applied
to persons whose principal occupation is the conduct of an
enterprise which they control, including many farmers,
small merchants, physicians, lawyers, and real estate agents,
In 1922 was $28,225,000,000. Those working for wages
received $24,553,000,000, salaried workers received $12,050,000,000, while the amount that went to employed persons in the form of pensions and compensations was
$1,097,000,000, or a total of $37,700,000,000.
In 1928, according to the National Bureau's table, the
share of entrepreneurs had increased to $38,296,000,000.
Wage earners received $32,235,000,000, salaried workers
$17,823,000,000, while the amount paid the recipients of
pensions and compensations fell off to $1,065,000,000, making
the total income of employees $51,123,000,000. Incidentally,
the 1928 figures show that the employees have added $13,423,000,000 to their 1922 income while the entrepreneurs'
Income has only increased by $10,071,000,000, or a gain by
employees over the gain by entrepreneurs of $3,352,000,000
In 10 years.
One of the items included in the total of the people's
Income is designated in the National Bureau's report as
"Imputed income," which refers to the estimated value of
the services rendered to their owners by "durable direct or
consumers' goods." That durable consumable commodities
render services of great economic value is a fact accepted
by students of economics, it is averred. As proof of this
the National Bureau's report gives the following example:
"If each of two men working in the same office has
accumulated $10,000, one man may purchase a house and
the other invest in bonds and use the interest received on
these bonds to pay the rent of his residence. Under these
circumstances, both men have used similar amounts of
accumulated funds to obtain similar services and, if the
two houses are alike, there seems to be no logical reason
for assuming that one man receives more income from his
$10,000 than does the other. When we save money we have
the option of investing it and using the money return to
buy such services of goods as we desire, or, we can use
the money to purchase the goods and thus control all of their
future services. The services have equal value in either
case. It seems only fair, then, to include in the income of
the people of the nation an item representing the value of
the services of the durable consumption goods which they
Per Capita Incomes Doubled.
A table included in the National Bureau's report indicates that the per capita realized income, when measured in
dollars current at the various dates, mare than doubled
between 1909 and 1923 and has since been steadily increasing
until, in 1928, the average per capita income for all inhabitants of the United States amounted to $749. For the family
of five members this would make an income of $3,745. As a
matter of fact, the report points out, the total realized
Income is far from being equally divided. In 1928 the average person working for a money return received $1,898.
According to the table giving the per capita receipts for
the various classes of employed persons it is shown that,
estimated in current dollars, the salaried employee of 1909
received an average of $976 per annum. This figure increased steadily each year until in 1927 it reached $2,084,
with only one lapse of $44 in 1921. Wage workers, during
the same period, increased their incomes from $527 to $1,205.
The wage figures, however, were subject to greater fluctuation from year to year, notably in 1921, when they fell off
$290 from the amount received the previous year.
This rate of increase in the per capita income of salaried
employees and wage workers, from 1909 to 1927, is fully
shown in the following table:

firm 129.



$527 1919
552 1920
540 1921
568 1922
594 1923
552 1924
582 1925
679 1926
771 1927



With regard to the report, the statement, made available
Dec. 16, also says:
The report of the National Bureau of Economic Research
will contain much information which will answer questions
frequently asked during discussions among all classes of
employed persons. For Instance, the report shows that the

wage, salary and pension bill of the nation is larger in every
year covered by the tables than the share of the entrepreneurs and other property owners. The differential
which before 1917 was relatively small has grown until in
1927 the employees were receiving a realized income almost
40% more than the entrepreneurs.
How Government Adds to Income.
One of the interesting features of the Bureau's report is
the estimate of the Government's part in furnishing income
to its citizens. This estimate includes the Federal, State,
and local governments, taking in counties, cities, villages
and even school districts. It gives the total number of
persons working for each of the various divisions of government service in 1919 as 4,042,000. The high figure is
accounted for because it includes the army, navy and
marines in addition to the large clerical force employed
just after the world war. In 1920 the total number of
Government employees dropped to 2,719,000, due to the
reduction of the Army, Navy and the discharge of the
unnecessary clerical force. The total number of Governmental employees in 1927 was 2,819,000. The actual cash
return to all workers in the various branches of Government in 1927, estimated in current dollars was $4,992,000,000,
or $503,000,000 more than in 1919.
Tables showing the total realized income in current dollars derived from various industries by individuals is
another interesting feature of the report. Income derived
from the unclassified industries in 1909 was greater than
that from any other source. Manufacturing was second
as a producer of money return to workers and agriculture
ranked third. In 1925 the unclassified industries and manufacturing competed for first place and the mercantile industry had risen from fourth place to third, outranking agriculture. At this period the value of agricultural products
had declined until they were little more than half the value
of the manufacturing net output.
The following table shows in detail the incomes drawn
from these four important industries from 1909, the figures
for agriculture and mercantile being carried up to 1928:
1910---- 5,218,000.000
1911-- 4,815,000,000
1912.— 5,294,000,000
1913-- 5,133.000,000
1914---- 5,081,000,000
1915-- 5,488,000,000
1916- — 6,631,000,000
1917.-- 9388.000,000
1918-- —11,205.000,000
1920_ —11,057,000,000
1921- - 6,967,000,000
1922--- 7,300,000,000
1923-- 8,026,000.000
1924-- 8,325,000,000
1925-- 9,089,000,000
1926_ - - 8,214,000,000
1927__-- 8,371,000,000
1928_--- 8.109,000,000




In a table in which the income derived from the various
fields has been reduced to percentage it is shown that the
relative importance of agriculture declined slightly between
1909 and 1914, increased vigorously during the war period,
dropped abruptly between 1919 and 1921, and has since
been able only to maintain itself on the level of the latter
year and now producing less than 10% of the nation's
A% produced in 1918.
income in contrast with the 181
Secretary Mellon May Ask Law to Eliminate Double
Taxes on Trade and Investments.
The Treasury probably will be ready to submit a bill to
Congress in January aimed at eliminating double taxation
of international trade and investments, it was learned on
Dec. 17, according to the Washington correspondent of the
New York "Journal of Commerce," who further stated:
While the details have not yet been worked out, the bill was not expected
to be an amendment to the Revenue Act, but a separate measure. As is
now the case in relation to exemptions to international shipping profits from
taxation in more than one country, the bill would provide for exemptions on
international transactions where the foreign country grants the United
States a similar exemption.
An effort will be made to avoid international treaties wherever possible,
although in some cases they may be necessary. The United States hopes to
work out reciprocal arrangements with all important commercial nations, it
being the view of Secretary Mellon that subjection to taxation in two or
more countries constitute a real barrier to the expansion of international
trade and investments.
In his annual report to Congress Secretary Mellon discussed his subject
in detail. He said that Great Britain, Prance, Germany, Italy, the
Netherlands and Sweden are among the European countries that have been
Parties to one or more of at least 18 agreements regarding direct taxes.
"Practically all important maritime countries have entered into arrangements for the reciprocal exemption of shipping profits derived by nonresident companies," Secretary Mellon said.
It was pointed out that there is a great diversity in form and content of
the treaties, primarily due to the great difference in the structure of the tax
system of the contracting States. With a view to standardizing international
agreements designed to eliminate double taxation, experts of the League
of Nations and the International Chamber of Commerce have formulated a
uniform method of relief susceptible of general use.
The last conference in London, at which the United States was represented by Dr. T. S. Adams, adopted a convention which was not binding on
the various countries, but offered for their guidance a plan for making
bilateral treaties for preventing double taxation.
"As a double taxation impedes considerably the expansion of commerce,
no country has a more vital interest in preventing it than the United
States," Secretary Mellon said.

DEC. 28 1929.]



Inter-State Commerce Commission Proposes 21 Systems in Railroad Consolidation
Plan—Proposes Fifth Trunk Line in Eastern Territory Headed by Wabash Ry.
—Chicago Burlington & Quincy a Separate System—Four Commissioners File
Separate Reports.
Consolidation of all the railroad properties in the United "In order that the systems herein proposed, or any others
States into 21 major systems is provided in the railroad con- that may be formed, may properly perform the functions insolidation plan as adopted and made public by the Inter- tended by Congress and that competition may be preserved
State Commerce Commission on Dec.21. The plan provides as required, they must be independent in fact as well as in
for two New England systems, five trunk line systems be- name. The continuation of acquisition of inter-system
tween New York, Philadelphia and Baltimore on the Atlantic interests directly or indirectly through holding companies,
Seaboard and Chicago, St. Louis and Kansas City on the stock ownership or otherwise, will be inconsistent with the
West; three systems in the South, nine in the West, and two independence necessary to true competition. Carriers will,
systems composed of the Canadian-controlled lines in the therefore, be expected to observe this requirement in subUnited States. The two New England systems would be mitting proposals for consolidations and to co-operate in
built around the Boston & Maine and the New Haven. establishing the desired status."
Commenting upon the diversity of opinion in the ComThe five trunk lines would consist of the New York Central,
the Pennsylvania, the Baltimore & Ohio, along with the mission as to what roads should be allocated to a certain
Chesapeake & Ohio-Nickel Plate and the Wabash-Seaboard. system, the report states that "in a matter of this magnitude,
In the South there would be the Atlantic Coast Line, the in scope and complexity in detail, even after the most careful study and the fullest and freest interchange of views by
Southern and the Illinois Central.
The West would be allocated nine systems, built around 'those charged with the duty of preparing this plan, there
the Great Northern-Northern Pacific, the Chicago Milwaukee must remain many differences of opinion as to the several
St. Paul & Pacific, the Chicago Burlington & Quincy, the component parts, both large and small, comprised in the
Union Pacific, the Southern Pacific, the Atchison Topeka final result. Such is here the case. While a clear majority
& Santa Fe,the Missouri Pacific and the Chicago Rock Island of us, although not always the same majority, have agreed
as to each part of the plan proposed, not all of us have agreed
& Pacific-St. Louis-San Francisco combination.
A feature of the plan as announced by the Commission is as to all its parts, but all concur in the result. Some of us
its treatment of terminal properties, which, the Commission deem it helpful now to express individual views as to parts
states, "should be thrown open to all users on fair and equal of the plan. Others feel that their individual expression
terms so that every industry on whatever rails located shall may usefully be deferred to the time of action looking toward
have access to all lines radiating from that terminal, and the ultimate effectuation of actual consolidations as provided
every line carrier reaching that terminal shall similarly have by the Act. Section 5 provides that after we have adopted
access to all terminal tracks within the terminal area."
a plan, as we here do, we may, either upon our own motion
No suggestions are made regarding municipal or other or upon application, reopen the matter for such changes or
publicly-owned railroads, they being for the present listed modifications as in our judgment will promote the public
as independent systems, although the Commission states interest. Such applications will afford opportunity for
that any such roads that desire to have the Commission give further consideration upon adequate and recent records of
them consideration may make representations in their own the various parts of the plans."
behalf in connection with applications affecting terminals or
Four Commissioners, Eastman, McManamy, Taylor and
other consolidations when the same may be presented to Porter, wrote separate concurring opinions to the majority
the Commission.
Commissioner Eastman stated that, although he did not
Water carriers are not specifically mentioned, the Commission pointing out that where these carriers are now con- approve the plan in important respects, he concurred in
trolled by rail carriers they will be considered as being in- its adoption because it has many good features, because it
cluded in the systems in which the controlling rail carrier is necessary under the law to adopt some plan, and because
it is not very important, after all, whether or not it is the best
has been included.
The devising of a fifth great trunk system between Chicago plan that could be devised. "We may modify it at any time
and the Atlantic Seaboard at New York, Baltimore and hereafter," he said, "and no consolidation for which it proMiami is the outstanding contribution of the Commission's vides can be accomplished until we have found, after full
consolidation plan. This would be accomplished through hearing, that the public interest will be promoted thereby.
an enlargement of the Wabash Ry. The plan would make There is, I think, much misunderstanding on this point.
the Van Sweringen lines a unit and add to them the Lacka- The plan is very little more than a procedural step. There
wanna, among others. To the Baltimore & Ohio it would is nothing compulsory about it, nor even any assurance that
give permanent control of the Reading and the Central of authority will be sought to carry out the consolidations which
New Jersey.
it proposes. Applications for authority to effectuate cerThe Chesapeake & Ohio, the Baltimore & Ohio and the tain unifications are now before us, which, in many particuWabash all have petitions pending before the Commission lars, are inconsistent with the plan. The important time
for merger plans. The proposed plan gives the Wabash will come when we take action upon these and similar definot only the lines for which it asked, but thousands of miles nite applications."
additional. To do this the plan subtracts lines for which
Expressing the opinion that "we are now dealing with a
the Chesapeake & Ohio and Baltimore & Ohio had petitioned, general railroad situation which in many respects is more
but on the other hand, it gives those two railroads the lines satisfactory than any which has been experienced in the
past," Commissioner Eastman declared there is no wisdom
they most desired.
In 1927 L. F. Loree bought control of the Lehigh Valley in experimenting with a reasonably satisfactory situation by
and the Wabash and proposed linking them with his Dela, radical attempts to promote consolidations out of hand on a
ware & Hudson. This plan was defeated and Mr. Loree grandiose scale. On the contrary, he said, there is every
then sold the Lehigh Valley and the Wabash control to the reason for proceeding cautiously and conservatively. He
Pennsylvania. In July 1929 the Wabash filed a petition also expressed the belief that such sentiment as appears to
for a fifth trunk line of which it would be the nucleus. Al- exist in favor of the consolidation of the railroads into a
though it is controlled by the Pennsylvania, its Chairman, very few great systems is "largely artificial." "According
William H. Williams, has said this plan was in view before to my observation," he declared, "there is very little sentithe change in control was effected. The Wabash then asked ment of this kind among either shippers or railroad officers.
for control of the Lehigh Valley, Wheeling & Lake Erie, For the most part, I think that it emanates from financial
the Pittsburgh & West Virginia, Western Maryland and circles which are likely to reap large profits from the mere
some shorter lines. In its plan the Commission awards the process of putting the roads together."
Wabash these lines and also the Norfolk & Western (now
Commissioner McManamy stated that in general he concontrolled by the Pennsylvania), the Seaboard Air Line, curred in the plan because under the law a plan is required
before any consolidation may lawfully be made. "But,"
and one-half control in the Detroit Toledo & Ironton.
A realization that the operation of railroad holding com- he said, "we should not, in order to open the door to lawpanies may affect the groupings as outlined by the Com- ful consolidations, propose consolidations which are themmission was shown when the Commission said in its report: selves unlawful, and that I think we have done."



Commissioner Taylor, after quoting from the Transportation Act as to the powers invested in the Commission, asks
whether, with such powers, any one can successfully argue
that they may be used "only for the purpose of authorizing
a consolidation which has been voluntarily agreed upon by
the carriers or to prevent a consolidation which the Commission disapproves, but.not for the purpose of requiring a
consolidation which the Commission may determine to be
in the public interest and necessary to the preservation of
competition and the maintenance of existing channels of
trade and commerce."
"Such an assumption is contrary to the rule of reason,"
he concludes.
The complete official text of Inter-State Commerce Commission plan for consolidation of railroads into a limited
number of systems pursuant to Section 5 of the Inter-State
Commerce Act is as follows:
By the Commission:
The Commission having. on Aug.3 1921, agreed upon and issued a tentative plan of the consolidation of the railway properties of the continental
United States, and having given the same due publicity and notice, including notice thereof to the Governor of each State, also notice of hearings to
be held by the Commission relative to said tentative plan, and having in
pursuance of said notices, at various times and places, proceeded to hear
all persons who filed or presented objections thereto, together with any and
all persons making known their desire to be heard, and said hearings having
been fully concluded and the record closed, the Commission does now
proceed to prepare and adopt a plan as hereinafter set out for such consolidation of the railway properties of the continental United States into a limited
number of systems, all as required by Section 5 (4) and (5) of the InterState Commerce Act.
Our plan does not at present contain a complete allocation of terminal
Properties to individual trunk lines. Generally speaking, the terminal railroad properties, wherever located, automatically fall into the aggregation
qf terminal properties of which they are a part. We think that consolidations should be accompanied by the unification of all terminal lines in the
respective terminals. All terminal properties should be thrown open to all
users on fair and equal terms so that every industry on whatever rails located
shall have access to all lines radiating from that terminal, and every line
carrier reaching that terminal shall similarly have access to all terminal
tracks within the terminal area. As our reports show, for years access to
terminals has raised questions associated with such terms as reciprocal
switching, absorption of switching charges, switching of competitive traffic,
favored zones, and switching of noncompetitive traffic, and with unjust
discriminations and undue preferences. The unification of terminal properties everywhere should put an end to disputes of this character to the
advantage alike of all railroads and all users of railroads In the interest
of efficient and economical operation and the free movement of traffic,
restrictions in service and discrimination in charges which have arisen from
differences in local terminal situations should cease to be a feature of
railroad operation.
The cases which have been brought to our attention from time to time
during past years, referred to above,show wide variations in the conditions attendent upon terminal operations in different cities. A complete
survey embracing all terminals would no doubt show still greater variety
than that indicated by these cases. In the face of such a great variety in
circumstances and conditions, it is impracticable to prescribe in advance a
universal rule for terminal railroad unification and operation. Each
terminal and the properties serving it must be studied in the light of its
particular facts and a practical solution worked out with due regard to the
Property and other rights of all owners and users. This is the duty in the
first instance of the carriers serving each terminal. We expect to deal with
these situations to the extent that they are connected with respective applicants when we shall have occasion to consider particular applications to
consolidate, and, therefore, refrain from allocating in the present plan the
'various terminal properties not specifically mentioned herein. For present
Purposes they may be treated as independent systems, subject to later
grouping as shown to be in the public interest.
Under the act any plan of consolidation which may be adopted shall
Preserve competition as fully as possible. In order that the systems herein
proposed, or any others that may be formed, may properly perform the
functions intended by Congress and that competition may be preserved as
required, they must be independent in fact as well as in name. The con• tinuation or acquisition ofintersystem interests directly or indirectly through
bolding companies, stock ownership, or otherwise, will be inconsistent with
the independence necessary to true competition. Carriers will, therefore,
be expected to observe this requirement in submitting proposals for consolidations and to co-operate In establishing the desired status.
In order to fully effectuate the purposes of the plan, certain trackage
rights will be necessary between the systems, and we have Indicated under
each system the principal instances of this kind.
Wherever in this report a railway property is named, unless an exception
is specifically named, it is intended to and shall be understood as including
all subsidiary owned, controlled, leased, or operated lines.
We are making no suggestions regarding municipal or other publicly
owned railroads. Any of such roads that desire to have us give them consideration may make representations in their own behalf in connection
with applications affecting terminals or other consolidations when the same
may be presented to us. For present purposes we are listing them as
independent systems.
We have not specifically mentioned water carriers. Where these carriers
are now controlled by carriers by rail they will be considered as being included in the systems in which the controlling rail carriers has been included.
In a matter of this magnitude in scope and complexity in detail, even
after the most careful study and the fullest and freest interchange of views
by those charged with the duty of preparing this plan, there must remain
many differences of opinion as to the several component parts, both large
and small, comprised in the final result. Such is here the case. While a
clear majority of us, although not always the same majority, have agreed
as to each part of the plan proposed, not all of us have agreed as to all its
parts, but all concur in the result. Some of us deem it helpful now to
express individual views as to parts of the plan. Others feel that their
ndividual expressions may usefully be deferred until the time for action
looking toward the ultimate effectuation of the actual consolidations as
Provided by the act. Section 5 (5) provides that after we have adopted a
plan, as we here do, we may, either upon our own motion or upon application reopen the matter for such changes or modifications as in our judgment
will promote the public interest. Such applications will afford opportunity

[VOL. 129.

for further consideration upon adequate and recent records of the various
parts of the plan.
We find and adopt the following plan for the consolidation of railway
properties of the continental United States into a limited number ofsystems:
System No. 1—Boston & Maine.
Boston & Maine RR.
Delaware & Hudson Co.
Bangor at Aroostook RR. Co.
Maine Central RR. Co.
The St. Johnsbury & Lake Champlain RR. Co.
Rutland RR. Co.
-0.& L. C. Division, Rouses Point to Ogdensburg.
Montpelier & Wells River RR,
Wilkes-Barre Connecting RR. Co. (undivided one-half interest),
Monson RR.Co.
Kennebec Central RR. Co.
Knox RR. Co.
Wiscasset Waterville & Farmington RR. 0o.
Lime Rock RR. Co.
Hoosac Tunnel & Wilmington RR. Co.
Suncook Valley RR.
Berlin Mills RR. Co.
Middleburgh & Schoharie RR.
Hardwick & Woodbury RR. Co.
Barre & Chelsea RR. Co.
Bridgton & Saco RR. Co.
Sandy River & Rangeley Lake RR.
Boston Revere Beach & Lynn RR. Co.
Troy Union RR. Co. (undivided two-thirds interest).
Mt. Washington By. Co.
The Clarendon & Pittsford RR. Co. (undivided one-half interest).
Woodstock Ry. Co. (undivided one-half interest).
Lake Champlain & Moriah RR. Co.
System No. 2—New Haven.
The New York New Haven & Hartford RR. Co.
New York Ontario & Western Ry. Co.
The New York Connecting RR. Co.(undivided one-half interest).
The Lehigh & Hudson River Ry. Co.
Lehigh Sc New England RR. Co.
South Manchester RR. Co.
Fore River RR. Corp.
Moshassuck Valley RR. Co.
The Narragansett Pier RR. Co.
Wood River Branch RR. Co.
Grafton & Upton RR. Co. (undivided one-half interest).
System No. 73—New York Central.
The New York Central RR. Co., including:
Boston & Albany RR.
The Michigan Central RR. Co.
The Cleveland Cincinnati Chicago & St. Louis RR. Co.
The Cincinnati Northern RR. Co.
The Pittsburgh & Lake Erie RR. Co.
Evansville Indianapolis & Terre Haute Ry. Co.
The Virginian By. Co.
The Ulster & Delaware RR. Co.
Rutland RR. Co., except 0. & L. C. Division.
Boyne City Gaylord & Alpena RR. Co.
Bristol leit. Co.
The Clarendon & Pittsford RR. Co. (undivided one-half interest).
Grafton & Upton RR. Co.
Chicago Attica & Southern RR. Co.
The Federal Valley RR. Co.
Fonda Johnstown & Gloversville RR. Co.
Glenfield & Western RR. Co.
Grasse River RR. Corp.
Lake Erie Franklin & Clarion RR. Co.
The Lakeside & Marblehead RR. Co.
The Lowville & Beaver River RR. Co.
The Marcellus & Casco Co., Inc.
Norwood & St. Lawrence RR. Co.
Skaneateles RR.Co.
Dexter & Northern RR. Co.
Campbell's Creek RR. Co.
Kelley's Creek & Northwestern RR. Co.
Kelley's Creek RR. Co.
The Lorain & Southern RR. Co.
Fulton Chain Ry. Co.
Cambria & Indiana RR. Co.(undivided one-third interest).
Central Indiana By. Co.(undivided one-half interest).
Cherry Tree & DixonvMe RR. Co. (undivided one-half interest).
The Fairport Painesville & Eastern RR.Co.(undivided one-third interest).
Genessee & Wyoming RR. Co. (undivided one-fifth interest).
Lake Erie & Pittsburgh By. Co. (undivided one-half Interest).
The Lake Terminal RR.00.(undivided one-fourth interest).
Muncie & Western RR. Co.(undivided one-third interest).
McKeesport Connecting RR. Co. (undivided one-third Interest),I
Beaver Valley BE. Co. (undivided one-half interest).
Indiana Northern Ry. Co. (undivided one-fourth Interest).
The Lake Erie & Fort Wayne RR. Co. (undivided one-third interest).
South Buffalo By. Co.(undivided one-sixth interest).
Troy Union RR. Co. (undivided one-third Interest).
The Owasco River By.
The Monongahela By. Co. (undivided one-third interest).
Pittsburgh Chartiers & Youghiogheny Ry.Co.(undivided one-half interest).
Half interest in line of Virginian between Gilbert and Mullens, W. Va.
System No. 4—Pennsylvania.
The Pennsylvania RR. Co.
The Long Island RR. Co.
West Jersey & Seashore RR. Co.
Baltimore Chesapeake & Atlantic Ry. Co.
Wilkes-Barre Connecting RR. Co. (undivided one-half interest).
The New York Connecting RR. Co. (undivided one-half interest).
The New York & Long Branch RR. Co. (undivided one-half interest).
Arcade & Attica RR. Corp.
Bellefonte Central BE. Co.
Coudersport & Port Allegheny RR. Co.
The East Broadtop RR. & Coal Co.
Hickory Valley RR. Co.
The Huntington & Broad Top Mountain RR. & Coal Co.
Kane & Elk RR. Co.
laihkacouquillas Valley RR. Co.
Ligonier Valley RR. Co.
Marion By. Corp.
Maryland & Delaware Coast Ry. Co.
The Pittsburgh Lisbon & Western RR. Co.
The Pittsburgh & Susquehanna RR. Co.
Sheffield & Tionesta By. Co.
Youngstown & Ohio River RR. Co.
The Stewardstown RR. Co.
Strasburg RR. Co.
Susquehanna River & Western AR. Co.
Tuscarora Valley RR. Co.
The Washington Brandywine & Point Lookout RR,0o.
The Winfield RR. Co.
Dents Run RR. Co.
Donors Southern RR. Co.
Alliquippa & Southern RR. Co.
Chesapeake Beach By. Co.
Pennsylvania & Atlantic RR. Co.
Scootac By. Co.
The Monongahela Ry. Co. (undivided one-third Interest).
Cambria & Indiana RR. Co.(undivided one-third interest).
Central Indiana RR. Co. (undivided one-half interest).
Cherry Tree & Dixonville RR. Co. (undivided one-half interest).
Cumberland & Pennsylvania RR. Co.(undivided one-third interest).
Wilkes-Barre Connecting RR. Co. (undivided one-half interest).
Genesee & Wyoming RR. Co. (undivided one-fifth interest).
Lake Erie & Pittsburgh By. Co. (undivided one-half interest).
Muncie & Western RR. Co. (undivided one-third interest).
Etna & Montrose RR. Co. (undivided one-half interest).

DEC. 28 1929.]


Johnstown & Stony Creek RR.(undivided one-half interest).
McKeesport Connecting RR. Co. (undivided one-third interest).
New Haven & Dunbar RR. Co. (undivided one-half interest).
Beaver Valley RR. Co. (undivided one-half interest).
Conemaugh & Black Lick RR. Co. (undivided one-half interest).
Steelton & Highspire RR. Co. (undivided one-half interest).
Indiana Northern Ry. Co. (undivided one-fourth interest).
Lake Erie & Fort Wayne RR. Co.(undivided one-third interest.
Patapsco & Back Rivers RR. Co. (undivided one-third interest.
Benwood & Wheeling Connecting By. Co.(undivided one-third interest).
South Buffalo By. Co. (undivided one-sixth interest).
Baltimore & Eastern RR. Co.
The Ohio River & Western By. Co.
Western Allegheny RR. Co.
Pittsburgh Chartiers & Youghiogheny By.Co.(undivided one-half interest).


The Wheeling & Lake Erie By. Co.
The Pittsburgh & West Virginia By. Co.
Western Maryland By. Co.
The Akron Canton & Youngstown Ry. Co.
Toledo, Peoria & Western rtR.
The Ann Arbor RR, Co.
Chesapeake & Ohio By. Co. of Indiana.
New Jersey Indiana & Illinois RR. Co.
Manistique & Lake Superior RR. Co.
Norfolk & Western By. Co.
Seaboard Air Line By. Co.
Detroit Toledo & Ironton RR. Co.(undivided one-half interest).
Also the following trackage rights:
Over the Pennsylvania from Logansport to Effner, Ind.
Over the Grand Trunk Western, Ashley to Muskegon, Mich.
Over the Reading between Shippensburg and Harrisburg, Pa.
System No. 5—Baltimore & Ohio.
Over the Pennsylvania from Harrisburg to Rockville. Pa.
Over the Reading from Rockville to Blackwood,Pa.
The Baltimore & Ohio RR. Co.
Over the Reading from South Bethlehem to Philadelphia. Pa.
Reading Co.
Over the Pennsylvania from Delphos, Ohio to Fort Wayne, Ind.
The Central RR. Co. of New Jersey.
The Chaffee RR. Co.
Buffalo & Susquehanna RR. Corp.
East Berlin RR. Co.
Atlantic City RR. Co.
Emmitsburg RR. Co.
The Staten Island Rapid Transit By. Co.
Susquehanna & New York RR. Co.
Perldomen RR. Co.
Williamsport & North Branch By. Co.
Port Reading RR. Co.
Chesapeake Western By.
The Chicago & Alton RR. Co.
Valley River RR.
Buffalo Rochester & Pittsburgh Ry. Co.
Big Sandy & Cumberland RR. Co.
Detroit Toledo & Ironton RR. Co. (undivided one-half interest).
Franklin & Pittsylvania By. Co.
The Detroit & Toledo Shore Line RR. Co. (undivided one-half interest).
Marion St Rye Valley By. CO.
Chicago Indianapolis & Louisville Ry. Co. (undivided one-half interest).
Virginia Southern RR'. Co.
Trackage rights over Western Maryland between Shippensburg, Pa., and
Cumberland & Pennsylvania RR. Co. (undivided one-third interest).
Cherry Run, W. Va.
The Buffalo Creek RR. Co. (undivided one-half interest).
The Sharpsville RR. Co.
Genessee & Wyoming BR. Co.(undivided one-fifth interest).
Castleman River RR. Co.
The Ironton RR. Co. (undivided one-half interest).
Chestnut Ridge By. Co.
The Lake Terminal RR. Co. (undivided one-fourth interest).
Cornwall RR. Co.
Patapsco & Back Rivers RR. Co. (undivided one-third interest).
The Kansas & Melt RR. Co.
Benwood & Wheeling Connecting fly. Co.(undivided one-third interest)
Maryland & Pennsylvania RR. Co.
Philadelphia Bethlehem & New England RR. Co. (undivided one-half
Mount Hope Mineral RR. Co.
Mount Jewett Kinzue & Riterville RR. Co.
South Buffalo By. Co. (undivided one-sixth interest).
The New York & Long Branch RR. Co. (undivided one-half interest).
Aberdeen & Rockfish RR. Co.
Quakertown & Bethlehem RR. Co.
Bennettsville & Cheraw RR. Co.
Rahway Valley Co.
Birmingham & Southeastern RR. Co.
Raritan River RR. Co.
Buffalo Union-Carolina RR.
Stone Harbor RR. Co.
Cape Fear Rys., Inc.
The Tuckerton RR. Co.
Cliffside RR. Ce.
Philadelphia & Beach Haven RR. Co.
Carolina & Northeastern RR. Co.
The Ursine & North Fork By. Co.
Durham & Southern By. Co.
Upper Merlon & Plymouth RR. Co.
Edgemoor & Manette By.
The Valley RR. Co.
Piedmont & Northern By. Co.
Washington Run RR. Co.
The Georgia Southwestern & Gulf RR. Co.
West Virginia Northern RR. Co.
Greenville & Northern By. Co.
Wharton & Northern RR. Co.
High Point Thomasville & Denton RR. Co.
Wildwood & Delaware Bay Short Line RR. Co.
Lawndale By. & Industrial Co.
The Yale Short Line RR. Co.
Macon Dublin & Savannah RR. Co.
Preston RR. Co.
Marton Alma & Southbound RR. Co.
The Buffalo Creek & Ganley RR. Co.
Moore Central By. Co.
Rowlesburg & Southern RR. Co.
St. Marys RR. Co.
Strouds Creek & Muddlety RR. Co.
Atlantic & Yadkin By. Co.
West Virginia Midland Ry. Co.
The Townsville RR. Co.
Winchester & Western Bit. Co.
Virginia Southern RR. Co.
The Brownstone & Middletown RR. Co.
Warrenton RR. Co.
Tionesta Valley By. Co.
McRay Terminal By.
The Monongahela By. Co. (undivided one-third interest).
Tampa Northern RR. Co..
Cambria & Indiana RR. Co. (undivided one-third interest).
Interstate RR. Co. (undivided one-half interest).
Cumberland & Pennsylvania RR. Co. (undivided one-third interest).
The Fairport Painesville & Eastern RR. Co.(undivided one-third interest). Chatham Terminal Co. (undivided one-half interest).
Winston-Salem Southbound By. Co. (undivided one-half interest).
Genessee & Wyoming RR. Co. (undivided one-fifth interest).
St. Louis & Hannibal RR. Co.
The Ironton RR. Co. (undivided one-half interest).
Northampton & Bath RR. Co. (undivided one-half interest.
System No. 8—Atlantic Coast Line.
The Lake Terminal RR. Co. (undivided one-fourth interesQ.
Etna & Montrose RR. Co. (undivided one-half interest).
Atlantic Coast Line RR. Co.
Johnstown & Stony Creek RR. (undivided one-half interest).
Louisville & Nashville RR. Co.
McKeesport Connecting RR. Co. (undivided one-third interest).
The Nashville Chattanooga & St. Louis By.
New Haven & Dunbar RR. Co. (undivided one-half interest).
Clinchfield RR. Co.
Oonemaugh & Black Lick RR. Co. (undivided one-half interest).
Atlanta Birmingham & Coast RR. Co.
Steelton & Highspire RR. Co. (undivided one-half interest).
Gulf Mobile & Northern RR. Co.
Patapsco & Back Rivers RR. Co. (undivided one-third interest).
New Orleans Great Northern RR. Co.
Benwood & Wheeling Connecting By. Co. (undivided one-third interest).
By. Co.(undivided one-fourth interest
Philadelphia Bethlehem & New England RR. Co.(undivided one-half int.. Chicago Indianapolis & LouisvilleCo. (undivided one-half interest).
Winston-Salem Southbound By.
By. Co. (undivided one-sixth interest).
South Buffalo
Alabama & Western Florida RR. Co.
Alabama Floridan & Gulf RR. Co.
System No. 6—Chesapeake & Ohio-Nickel Plate.
Alcolu RR. Co.
The Chesapeake & Ohio By. Co. (excluding Chesapeake & Ohio By. Co. Apalachicola Northern RE. Co.
of Indiana).
Artemus-Jellico RR. Co.
The Hocking Valley RR. Co.
Ashland By. Co.
Pere Marquette Ry. Co.
Atlantic & Carolina RR. Co.
Erie RR. Co. (Including Chicago & Erie RR. Co.; New York Susquehanna Charleston & Western Carolina By. Co.
& Western RR. Co., and New Jersey & New York RR. Co.).
Columbia Newberry & Laurens RR. Co.
The Delaware Lackawanna & Western RR. Co.
Elberton & Eastern RR. Co.
The New York Chicago & St. Louis RR. Co.
Live Oak Perry & Gulf RR. Co.
Bessemer & Lake Erie RR. Co.
Rockingham RR. Co.
The Pittsburgh & Shawmut RR. Co.
Virginia & Carolina Southern RR. Co.
Chicago & Illinois Midland Ry. Co.
Beaufort County Lumber Company RR.
Jacksonville & Havana RR. Co.
Black Mountain By. Co.
Chicago Springfield & St. Louis By. Co.
Bonhomie & Hattiesburg Southern RR. Co.
Alton & Eastern RR. Co.
The Carolina Southern By. Co.
The Detroit & Toledo Shore Line RR. Co.(undivided one-half interest).
Carolina Western RR.
Also the following trackage rights:
Carrolton & Worthville RR. Co.
Over the Baltimore & Ohio from Dayton, 0., to Hamilton and Cinein- Chattahoochee Valley By. Co.
natl. 0., and Indianapolis, Ind.
East Carolina By.
Over the Southern from Orange, Va., to Potomac Yards, Va.
Flemingsburg & Northern RR. Co.
Over the Cleveland Cincinnati Chicago & St. Louis, and Baltimore & Hampton & Branchville RR. Co.
Ohio, from Rushville, Ind., to Louisville, Ky.
Kentucky Rockcastle & Cumberland RR.Co.
Over the Louisville & Nashville from Lexington. Ky.. to Louisville,
Laurinburg & Southern RR. Co.
Arcadia & 136tsey River Ry. Co.
The Mammoth Cave RR. Co.
The Dansville & Mount Morris RR. Co.
Manistee & Repton RR. Co.,Inc.
Delaware Valley By. Co.
The Marianna & Blountstown RR. Co.
Detroit & Mackinac By. Co.
Memel BR. Co.
Detroit Caro & Sandusky By. Co.
Lakeland By.
East Jordan & Southern RR. Co.
Mississippi & Western RR. Co.
Manistee & North-Eastern RR. Co.
Mississippi Central RR. Co.
Middletown & Unionville RR. Co.
Mississippi Export RR. Co.
Morristown Sr Erie RR. Co.
Mountain Central By. Co.
New York & Pennsylvania RR. Co.
Nashville & Atlantic RR.Co.
Port Huron & Detroit RR. Co.
Northwestern RR. Co. of South Carolina.
Prattsburg By. Corp.
Norton & Northern By.
Sterling Mountain By. Co.
Ohio & Kentucky By. Co.
Unadille Valley By. Co.
Roaring Fork RR. Co.
Unity Rye. Co.
Rockcastle River By. Co.
West Pittston:Sreter RR.
Savannah & Atlanta By.
The Kanawha Central By. CO.
Tennessee Alabama & Georgia By.
-Winifred° RR. Co.
The Tuskegee RR. Co.
Kanawha Glen Jean & Eastern Elt. Co.
Washington & Lincointon RR. Co.
Ludington & Northern By,
Wilmington Brunswick & Southern RR. Co.
The Euclid RR. Co.
Belt Line By. Co.
East Kentucky Southern By. Co.
Savannah River Terminal Co.
Brooksville dc Ohio River RR. Co.
Port St. Joe Dock & Terminal By. Co.
Big Sandy & Kentucky River Ry. Co.
System No. 9—Southern.
Morehead & North Perk
Nelson & Albermarie RR. Co.
Southern By. Co. (excluding Mobile & Ohio RR. Co.).
Virginia Central RY.
Norfolk Southern RR. Co.
Half interest in line of Virginian between Gilbert and Mullens, W. V.
Tennessee Central Ry.Co.(Portion Nashville to Harriman).
The Buffalo Creek RR. Co. (undivided one-half interest).
Florida East Coast Ry. Co.
The Fairport Painesville & Eastern RR. Co.(undivided one-third interest). Chicago Indianapolis & Louisville By. Co.(undivided one-fourth interest)
Genessee & Wyoming BE. Co.(undivided one-fifth interest).
Alabama & Northwestern RR. Co.
& Bath RR. Co. (undivided one-half interesQ.
Appalachian By. Co.
The Lake Terminal RR. Co. (undivided one-fourth interest).
Atlantic & Western RR. Co.
Muncie & Western RR. Co. (undivided one-third interest).
Augusta Northern By.
Lake Erie & Fort Wayne RR. Co.(undivided one-third interest).
Bamberg Ehrhardt & Walterboro By. Co.
South Buffalo By. Co. (undivided one-sixth interest).
Carolina & Northwestern By. Co.
Dover & South Bound RR. Co.
System No. 7—Wabash-Seaboard.
Due West Ry.
East Tennessee & Western North Carolina RR. Co.
Wabash RR. Co.
Elkin & Allegheny RR. Co.
Lehigh Valley RR. Co.



Frattkford & Cincinnati By. Co.
The Gainesville & Northwestern RR. Co.
Gainesville Midland By.
Georgia & Florida RR.
Graham County RR. Co.
Hartwell By. Co.
Lancaster & Chester Ry. Co.
Linville River Ry. Co.
The Little River RR. Co.
Trans Florida Central RR. Co.
The Mobile & Gulf RR. Co.
Morgan & Fentress Ry. Co.
Oneida & Western RR. Co.
Pearl River Valley RR. Co.
Pickens RR. Co.
Pigeon River RR. Co.
The South Georgia Ry. Co.
Sumpter & Choctaw By. Co.
Tennessee RR. Co.
Tennessee North Carolina Ry. Co.
Tennessee, Kentucky & Northern RR. Co.
Tuckaseegee & Southeastern By. Co.
Virginia Blue Ridge By.
Ware Shoals RR. Co.
Cincinnati Burnside & Cumberland River By. Co.
Ferdinand RR. Co.
Louisville New Albany & Corydon RR. Co.
Interstate RR. Co. (undivided one-half interest).
System No. 10—Illinois Central.
Illinois Central BE. Co.
Gulf & Ship Island RR. Co.
The Yazoo & Mississippi Valley RR. Co.
Batesville Southwestern RR.
Ceintral of Georgia By. Co.
Louisville & Wadley ItR. Co.
Sylvania Central By. Co.
Wadley Southern By. Co.
Wrightsville & Tennille RR. Co.
The Minneapolis & St. Louis RR. Co.
Tennessee Central By. Co. (Nashville to Hopldnaville).
St. Louis Southwestern By. Co.
_St. Louis Southwestern By. Co. of Texas.
Louisiana By. & Navigation Co. of Texas.
Atlanta & Saint Andrews Bay By. Co.
Bowdon By. Co.
atliz RR. Co.
canton & Carthage RR. Co.
Collins & Glenville RR.
Fernwood Columbia & Gulf RR. Co.
Flint River & Northeastern RR. Co.
The Georgia Northern By. Co.
yville Northern BE. Co.
eorgia Asburn Sylvester & Camilla By. Co.
Mississippi & Skuna Valley BE. Co.
Mississippi Southern RR.
The Natchez Columbia & Mobile RR. Co.
New Orleans Natalbany & Natchez By. Go.
Sandersville RR. Co.
Shearwood By. Co.
Smithonia & Dunlap RR. Co.
Talbotton RR. Co.
Kosciusko & South Eastern RR. Co.
Clhatham Terminal Co. (undivided one-half interest).
Blytheville Leachville & Arkansas Southern RR. Co.
Deering Southwestern By.
Fordyce & Princeton BE. Co.
Gideon & North Island RR. Co.
Jefferson & Northwestern Ry. Co.
The Louisiana & North West By. Co.
Paris & Mt. Pleasant RR. Co.
Shreveport Houston & Gulf RR. Co.
Tremont & Gulf By. Co.
The La Salle & Bureau County RR. Co.
System No. 11—Chicago & North Western.
Chicago & North Western By. Co.
• cago St. Paul Minneapolis & Omaha RR. Co.
111. cago & Eastern Illinois By. Co.
Mobile & Ohio RR. Co.
Columbus & Greenville By. Co.
Lake Superior & Ishpeming RR. Co.
Cazenovia Southern RR. Co.
Hillsboro & North-Eastern By. Go.
Mineral Point & Northern By. Co.
The North & South By. Co.
Superior & Southeastern By. Co.
Sioux City Bridge Co.
Northwestern Coal By. Co.
Alabama Central By.
Birmingham Selma & Mobile RR. Co.
DeKalb & Western BE. Co.
Mississippi & Alabama RR. Co.
Mississippi Eastern RR. Co.
Jefferson Southwestern RR. Co.
Litchfield & Madison By. Co.
System No. 12—Great Northern-Northern Pacific.
Great Northern By. Co.
Northern Pacific By. Co.
Farmers Grain & Shipping Co.
M,Innesota & International By. Co.
Gilmore & Pittsburgh RR. Co., Ltd.
Spokane Portland & Seattle By. Co.
Oregon Trunk By.
Oregon Electric By. Co.
United Rya. Co.
Butte Anaconda & Pacific Ry. Co. (undivided one-half interest).
Gales Creek & Wilson River RR. Co.
Hartford Eastern By. Co.
Hill City By. Co.
Minneapolis & Rainy River By. Co.
Minneapolis Red Lake & Manitoba By. Co.
Minnesota Dakota & Western By. Co.
Montana Western By. Co.
Montana Wyoming & Southern RR. Co.
Puget Sound & Cascade By. Co.
The Waterville By. Co.
Washington Western By. Co.
Camas Prairie RR. Co. (undivided one-half interest). interest).
Cowlitz Chehalis & Cascade By. (undivided one-third
Newaukum Valley RR. Co. (undivided one-third interest).
Craig Mountain By. Co. (undivided one-half interest).
Duluth & Northeastern BE. Co. (undivided one-half interest).
Longview Portland & Northern By. Co. (undivided one-half interest).
Nezperce & Idaho RR. Co. (undivided one-half interest). interest).
Oregon California & Eastern By. Co. (undivided one-half interest).
Washington Idaho & Montana By. Co. (undivided one-half
Columbia & Cowlitz By. Co.
System No. 13—Milwaukee.
Chicago Milwaukee St. Paul & Pacific RR. Co.
Chicago Milwaukee & Gary By. Co.
White Sulphur Springs & Yellowstone Park By. Co.
Duluth Missabe & Northern By. Co.
The Duluth & Iron Range RR. Co.
Butte Anaconda & Pacific By. Co. (undivided one-half interest).
Trackage rights over Spokane Portland & Seattle By..from Portland.
to Spokane. Wash.
Copper Range RR. Co.
Escanaba & Lake Superior RR. Co.
Marinette Tomahawk & Western RR. Co.
Midland Continental RR.
Port Angeles Western RR. Co.

[VOL. 129.

Port Townsend & Puget Sound By. Co.
Ontonagon RR. Co.
Davenport Rock Island & North Western By. Co. (undivided one-half
Cowlitz, Chehalis & Cascade By. (undivided one-third interest).
Duluth & Northeastern RR. Co. (undivided one-half interest).
Newaukum Valley BE. Co. (undivided one-third interest).
Washington Idaho & Montana By. Co. (undivided one-half interest).
System No. 14—Burlington.
Chicago Burlington & Quincy RR. Co.
The Colorado & Southern By. Co.
Fort Worth & Denver City RR. Co.
Quincy Omaha & Kansas City RR. Co.
Green Bay & Western RR. Co.
The Ahnapee & Western By. Co.
Kewaunee Green Bay & Western BE. Co.
-Texas RR. Co.
-Texas RR. Co. of Texas.
The Trinity & Brazos Valley By. Co.(undivided one-half interest).
Bartlett Western By.
Beaver Meade & Englewood RR.Co.
Sevier & Southern RR. Co.
The Colorado & Southeastern RR. Co.
The Colorado & Wyoming By. Co.
Eastland Wichita Falls & Gulf RR. Co.
The Ettrick & Northern BE. Co.
The Galesburg & Great Eastern RR. Co.
Hooppole Yorktown & Tampico RR. Co.
La Crosse & Southeastern By. Co.
Lowell & Southern RR. Co.
Macomb Industry & Littleton Ry. Co.
Oklahoma City-Ada-Atoka Ry. Co.
Rapid City Black Hills & Western RR. Co.
The Roby & Northern RR. Co.
Rock Port Langdon & Northern By. Co.
Shelby County By. Co.
Shelby Northwestern By. Co.
Tabor & Northern By. Co.
Wyoming By. Co.
Hannibal Connecting RR. Co.
Winona Bridge By. Co.
Davenport Rock Island & North Western By. Co.(undivided one-half
The Great Western By. Co. (undivided one-half interest). ,
System No. 15—Union Pacific.
Union Pacific RR. Co.
Los Angeles & Salt Lake BE. Co.
Oregon Short Line RR. Co.
Oregon-Washington BE. & Navigation Co.
St. Joseph & Grand Island By. Co.
The Kansas City Southern By. Co.
The Arkansas Western By. Co.
Texarkana & Fort Smith By. Co.
Utah By. Co.
Christie & Eastern By. Co.
Great Southern RR. Co.
Intermountain By. Co.
Laramie North Park & Western RR. Co.
The Leavenworth & Topeka RR. Co.
Leesville Slagle & Eastern By. Co.
The Mansfield By. & Transportation Co.
Mount Hood RR. Co.
Oklahoma & Rich Mountain RR. Co.
Pacific Coast RR. Co.
Pacific & Idaho Northern By. Co.
Sabine & Neches Valley By. Co.
Texas Oklahoma & Eastern RR. Co.
Tonopah & Tidewater RR. Co.
Death Valley RR. Co.
Union RR. of Oregon.
Sumpter Valley By. Co.
Bingham & Garfield By. Co.(undivided one-half interest).
Camas Prairie BE. Co.(undivided one-half interest).
Cowlltz Chehalis & Cascade By.(undivided one-third interest).
Newaukum Valley BE. Co.(undivided one-third interest).
Longview Portland & Northern By. Co.(undivided one-half interest).
Nezperce & Idaho RR. Co. (undivided one-half interest).
Craig Mountain By. Co. (undivided one-half interest).
The Great Western Ry. Co. (undivided one-half interest).
The Big Creek & Telocaset RR. Co.
System No. 16—Southern Pacific.
Southern Pacific Co.
Holton Inter-Urban By. Co.
Nevada-California-Oregon Ry.
Texas & New Orleans RR. Co.
Northwestern Pacific RR. Co.
San Diego & Arizona By. Co.
Sunset By. Co.(undivided one-half interest).
Amador Central RR. Co.
Angelina & Neches River BE. Co.
Aransas Harbor Terminal By.
Arcata & Mad River RR.Co.
Arizona Southern RR. Co.
Bucksport & Elk River BE. Co.
The California & Oregon Coast RR. Co.
California Central RR. Co.
California Shasta & Eastern By. Co.
California Western RR. & Navigation Co.
Camino Placerville & Lake Tahoe RR. CO.
Carlton & Coast RR. Co.
Caro Northern By. Co.
Cement Tolenas & Tidewater RR. Co.
Diamond & Caldor By. Co.
East Texas & Gulf By. Co.
Fredericksburg & Northern By. Co.
Groveton Lufkin & Northern By. Co.
Lufkin Hemphill & Gulf By. Co.
Louisiana Southern By. Co.
Magma Arizona RR. Co.
Mascot & Western RR. Co.
McCloud River RR. Co.
Minarets & Western RR. Co.
Moscow Camden & San Augustine RR.
Mt. Tamalpais & Muir Woods By.
The Nacogdoches & Southeastern RR. Co.
Nevada Copper Belt RR. Co.
Nevada County Narrow Gauge RR. Co.
Oregon Pacific & Eastern By. Co.
Pacific Coast Ry. Co.
Pajero Valley Consolidated RR. Co.
Peninsular By. Co.
Port Isabel and Rio Grande Valley By.
Ray & Gila Valley RR. Co.
Rio Grande MicolithIc & Northern By.
San Joaquin & Eastern RR. Co.
Santa Maria Valley RR. Co.
Texas Southeastern RR. Co.
Tonopah & Goldfield RR. Co.
Uvalde & Northern By. Co.
Virginia & Truckee By.
Trona Ry. Co.
Waco Beaumont Trinity & Sabine By. Co.
Tucson Cornelia & Gila Bend RR. Co.
Valley & fillets BE. Co.
Ventura County By. Co.
Willamette Valley & Coast RR. Co.
Yosemite Valley RR. Co.
Bay Point & Clayton RR. Co. (undivided one-third interest).
Eureka-Nevada By. Co. (undivided one-half fittest).
The Nevada Central RR. Co.(undivided one-half Interest).
Nevada Northern By. Co. (undivided one-half interest).
Oregon California & Eastern By. Co. (undivided one-half interest).
Yreka RR CO

DEC. 281929.]


System No. 17—Santa Fe.
The Atchison Topeka & Santa Fe Ry. Co.
Gulf Colorado & Santa Fe By. Co.
Kansas City Mexico & Orient RI'. Co.
Kansas City Mexico & Orient By. Co. of Texas.
Panhandle & Santa Fe By. Co.
Chicago Great Western RR. Co.
Missouri North Arkansas Ry. Co.
Midland Valley RR. Co.
The Apache By. Co.
Arizona & Swansea RR. Co.
The Cimarron & Northwestern By. Co.
The Colorado-Kansas By. Co.
The Garden City Western Ry. Co.
Gulf Texas & Western By. Co.
Hanover Ry. Co.
Manchester & Oneida Ry. Co.
Minneapolis Northfield & Soutnern By.
Minnesota Western RR. Co.
The New Mexico Midland Ry. Co.
Osage By. Co.
Port Bolivar Iron Ore Ry. Co.
The Rio Grande Eastern Ry. Corp.
Rock Island Southern By. Co.
Santa Fe Northwestern By. Co.
Sierra Ry. Co. of California.
Verde Tunnel & Smelter RR. Co.
Helena Southwestern RR. Co.
Bay Point & Clayton RR. Co. (undivided one-third interest).
System No. 18—Missouri Pacific.
Missouri Pacific RR. Co.
New Orleans & Lower Coast RR. Co.
New Orleans Texas & Mexico By. Co.
The Beaumont Sour Lake & Western By. Co.
-Great Northern RR. Co.
New Iberia & Northern RR. Co.
The Orange & Northwestern RR. Co.
East St. Louis Brownsville & Mexico RR. Co.
San Antonio Southern By. Co.
San Antonio Uvalde & Gulf RR. Co.
San Benito & Rio Grande Valley By. Co.
Sugar Land By. Co.
The Texas & Pacific By. Co.
Abilene & Southern Ry. Co.
Cisco & Northeastern By. Co.
Kansas Oklahoma & Gulf By. Co.
Fort Smith & Western Ry. Co.
The Western Pacific RR. Co.
The Rio Grande Southern BE. Co.
The Denver & Rio Grande Western RR. Co.
The Denver & Salt Lake Ry. Co.
Asherton & Gulf By. Co.
Asphalt Belt By. Co.
Houston & Brazos Valley RR. Co.
The Orange & Northwestern RR. Co.
Rio Grande City By. Co.
The Denison & Pacific Suburban By. Co.
Pecos Valley Southern Ry. Co.
The Weatherford Mineral Wells & Northwestern By. Co.
Arkansas RR.
Arkansas Short Line.
Ashley Drew & Northern By. Co.
Augusta RR. Co.
Brookings & Peach Orchard RR. Co.
Cape Girardeau Northern By. Co.
Carbon County By. Co.
The Crystal River & San Juan RR. Co.
Dardanelie & Russellville RR. Co.
Doniphan Kensett & Searcy By.
Grand Prairie-Branch RR. Co.
Graysonia Nashville & Ashdown RR. Co.
Gulf & Northern Ry. Co.
Indian Valley RR. Co.
The Lake Providence Texarkana & Western RR.
The Manitou & Pikes Peak By. Co.
The Midland Terminal By. Co.
Mississippi River & Bonne Terre By.
Missouri-Illinois RR. Co.
Missouri Southern RR. Co.
Montana RR.
Murfreesboro-Nashville Southwestern By. Co.
The Natchez Urania & Ruston By. Co.
Northeast Oklahoma BE. Co.
Okmulgee Northern Ry. Co.
Ouachita & Northwestern By. Co.
The Prescott & Northwestern RR. Co.
Quincy RR. Co.
Reader RR.
Rio Grande & Eagle Pass Ry. Co.
Roscoe Snyder & Pacific By. Co.
The San Luis Central RR. Co.
The San Luis Valley Southern By. Co.
The Silverton Northern RR. Co.
Stockton Terminal & Eastern RR.
Texas Short Line Ry. Co.
Tooele Valley RR. Co.
Trinity Valley Southern RR. Co.
The Uintah By. Co.
L'Anguille River By. Co.
Trinity Valley & Northern By. Co.
The Creek RR. Co.
Bauxite & Northern By. Co. (undivided one-half interest).
Bay Point & Clayton RR. Co. (undivided one-third interest).
Bingham & Garfield By. Co. (undivided one-half interest).
Eureka-Nevada Ry. Co. (undivided one-half Interest).
Nevada Northern RR. Co. (undivided one-half interest).
The Nevada Central RR. Co. (undivided one-half interest)
System No. I9—Rock Island-Frisco.
The Chicago Rock Island & Pacific By. Co.
The Chicago Rock Island & Gulf By. Co.
St. Louis-San Francisco By. Co.
St. Louis-San Francisco & Texas By. Co.
Fort Worth & Rio Grande By. Co.
Quanah, Acme & Pacific By. Co.
Alabama Tennessee & Northern RR. Corp.
Louisiana & Arkansas Ry. Co.
The Trinity & Brazos Valley By. Co. (undivided one-half interest).
Louisiana Ry. & Navigation Co.
Alabama Central Ry.
Meridian & Bigbee River By. Co.
Mississippi By
Arkansas & Louisiana Missouri By Co.
Atlantic Northern By. Co.
Burlington Muscatine & Northwestern By. Co.
Cairo Truman & Southern RR. Co.
Cassville & Exeter By. Co.
Central By. Co. of Arkansas.
Combs Cass & Eastern RR. Co.
DeQueen & Eastern RR. Co.
Texas Oklahoma & Eastern RR. Co.
El Dorado & Western By. Co.
Fort Smith Sublaco & Rock Island RR. Co.
The Kansas & Oklahoma fly. Co.
The Louisiana & Pine Bluff By. Co.
Manila & Southwestern By. Co.
Miami Mineral Belt RR: Co.
Northern Louisiana & Gulf lig. Co.
Ozark Southern Ry. Co.
Poplar Bluff & Van River By. Co.
Red River & Gulf RR.
The Sibley Lake Bisteneau & Southern By. Co.
Thornton & Alexandria By. Co.
Wichita Falls & Southern RR. Co.


Warren & Saline River RR. Co.
Warren & Ouachita Valley By. Co.
The Wichita & Northwestern By. Co.
Oklahoma-Southwestern Ry. Co.
Oklahoma-Union By. Co.
Bauxite & Northern Ry. Co. (undivided one-half interest).
System No. 20—Canadian National
Canadian National By. Co. lines in New England.
Central Vermont Ry. Co.
Detroit Grand Haven & Milwaukee By. Co.
Grand Trunk Western By. Co.
White River Road Co. (of Vermont).
Woodstock By. Co.
Indiana Northern By. Co.(undivided one-half interest).
South Buffalo By. Co. (undivided one-sixth interest).
System No. 21—Canadian Pacific.
Canadian Pacific By. Co. lines in New England.
Spokane International Ry. Co.
Minneapolis St. Paul & Sault Ste. Marie By. Co.
Duluth South Shore & Atlantic By. Co.
Mineral Range RR. Co.
Terminal Properties.
The Massena Railroad Terminal Co.
Dayton Union Ry. Co.
The Toledo Terminal RR. Co.
Detroit Terminal RR. Co.
Kankakee & Seneca RR. Co.
The Indianapolis Union By. Co
Boston Terminal Co.
Ft. Wayne Union By. Co.
Norfolk & Portsmouth Belt Line RR. Co
The Toledo Angola & Western By. Co.
The Newburgh & South Shore By. Co.
The Cuyahoga Valley By. Co.
The River Terminal By.
The Youngstown & Northern RR. Co
South Brooklyn Ry. Co.
Delray Connecting RR. Co.
Wyandotte Southern RR. Co.
Wyandotte Terminal RR. Co.
The Bay Terminal RR. Co.
Brooklyn Eastern District Terminal.
New York Dock Ry.
Hoboken Manufacturers' RR. Co.
Bush Terminal Co.
Peoria & Pekin Union By. Co.
Union Depot Co. (Columbus, Ohio).
Belfast & Moosehead Lake RR. Co.
Portland Terminal Co.
Akron Union Passenger Depot Co.
The Akron & Barberton Belt RR. Co.
Canton RR. Co.
Muskegon By. & Navigation Co.
The Philadelphia Belt Line RR. Co.
Atlantic Port Ry. Corp.
Richmond Fredericksburg & Potomac RR. Co.
Washington Terminal Co.
Richmond Terminal Ry. Co.
Chicago Union Station Co.
Kentucky & Indiana Terminal RR. Co.
East Jersey RR. & Terminal Co.
Pencoyd & Philadelphia RR. Co.
Chicago Short Line Ry. Co.
Fort Street Union Depot Co.
Detroit Union RR. Depot & Station Co.
Birmingham Southern RR. Co.
Birmingham Terminal Co.
Durham Union Station Co.
Jacksonville Terminal Co.
Norfolk Terminal Ry. Co.
Dallas Terminal & Union Depot Co.
The Railway Transfer Co. of the City of Minneapolis.
Arkansas & Memphis Ry. Bridge & Terminal Co.
Fort Worth Belt Line By. Co.
The Minnesota Transfer By. Co.
St. Paul Bridge & Terminal By. Co.
St. Paul Union Depot Co.
Sioux City Terminal Ry. Co.
Southern Illinois & Missouri Bridge Co.
The Union Terminal Co. (Dallas, Texas).
South Omaha Terminal By. Co.
The Lake Superior Terminal & Transfer By.Co.of the Sate of Wisconsin.
Minneapolis Eastern Ry. Co.
Port of Astoria Belt Line RR. Co.
Duluth Union Depot & Transfer
The Northern Pacific Terminal Co. of Oregon.
Dee Moines Union By. Co.
Kansas City Connecting RR. Co.
Kansas City Terminal By. Co.
Galveston Houston & Henderson RR. Co.
Atchison Union Depot & RR. Co.
Denver Union Terminal Ry. Co.
Galveston Wharf Co.
Joplin Union Depot Co.
Albany Passenger Terminal Co.
Atlanta Terminal Co.
Augusta & Summerville RR. Co.
Athens Terminal Co.
Northwestern Terminal RR. Co.
Salt Lake City Union Depot & RR. Co. RR. of New Orleans.
Texas Pacific-Missouri Pacific Terminal
Brownsville & Matamoras Bridge Co.
Birmingham Belt RR. Co.
Peoria Terminal Co.
Rock Island-Frisco Terminal By. Co.
State Belt RR. of California.
City of Prineville By.
Municipal Terminal RR.
Yuma Valley RR.
Terminal RR. Association of St. Louis.
Atchison & Eastern Bridge Co.
The Baltimore & Ohio Chicago Terminal RR. Co.
The Belt By. Co. of Chicago.
Calumet Western By. Co.
Chicago & Calumet River RR. Co.
Chicago & Illinois Western RR.
Chicago & Western Indiana RR. Co.
Chicago Heights Terminal Transfer RR. Co.
Chicago Junction Ry.
The Chicago River & Indiana RR. Co.
Chicago Short Line Ry. Co.
Chicago West Pullman & Southern RR. Co.
Elgin Joliet & Eastern By. Co.
Illinois Northern By.
Indiana Harbor Belt RR. Co.
Manufacturers' Junction By. Co.
Pullman RR. Co.
The Union RR. Co.
The Chartiers Southern By. Co.
Montour RR. Co.
West Side Belt RR. Co.
The Monongahela Connecting RR. Co.
Pittsburgh Allegheny & McKee's Rocks RR. Co.
Allegheny & South Side By. Co.
Monongahela Southern By. Co.
St. Clair Terminal RR. Co.
Alton & Southern RR.
East St. Louis Junction BE. Co.
Manufacturers Ry. Co.
Missouri & Illinois Bridge & Belt RR. Co.
The St. Louis & O'Fallon By. Co.
St. Louis & Ohio River RR.



International Bridge Co.
Keokuk Union Depot Co.
Keokuk & Hamilton Bridge Co.
Oklahoma City. Junction By. Co.
Pueblo Union Depot & RR. Co.
St. Joseph Belt By. Co.
St. Joseph Terminal RR. Co.
St. Joseph Union Depot Co.
Texas City Terminal By. Co.
Union Terminal By. Co. (St. Joseph, Mo.).
Kansas City Shreveport & Gulf Terminal.
Leavenworth Depot & RR. Co.
Los Angeles Junction Ry. Co.
Ogden Union By. & Depot Co.
El Paso Union Passenger Depot Co.
Fort Worth Union Passenger Depot Co.
Richmond Belt By.
Beaumont Dock & Wharf Commission.
Beaumont Wharf & Terminal Co.
Union Passenger Depot Co. of Galveston.
Alameda Belt Line.
Houston Belt & Terminal By. Co.
Joliet Union Depot Co.
Wichita Union Terminal By. Co.
North Charleston Terminal Co.
Savannah Union Station Co.
Winston-Salem Terminal Co.
Tampa Union Station Co.
New Orleans Public Belt RR.
Port Utilities Commission of Charleston, So, Caro.
Terminal Ry. Alabama State Docks.
Warrior River Terminal Co.
Paduca & Illinois RR. Co.
Augusta Union Station Co.
Charleston Union Station Co.
Columbia Union Station Co.
Covington & Cincinnati Elevated RR.& Transfer & Bridge Co.
Goldsboro Union Station Co.
Lexington Union Station Co.
Memphis Union Station Co.
Woodstock & Blocton By. Co.
New Orleans Terminal Co.
St. Johns River Terminal Co.
Chattanooga Station Co.
Gulf Terminal Co.
Macon Terminal Co.
Meridian Terminal Co.
Van Buren Bridge Co.
Central Union Depot & By. Co. of Cincinnati.
Detroit & Western By. Co.
East Erie Commercial RR. Co.
Flint Belt RR. Co.
Harlem Transfer Co.
Pittsburgh & Ohio Valley By. Co.
Union Freight RR. Co.
White River RR. Co.
El Paso Southern By. Co.
Galveston Terminal By. Co.
Hannibal Union Depot Co.
Howard Terminal By.
South San Francisco Belt Ry.
Outer Harbor Terminal Ry. Co.
Peru La Salle & Deer Park RR. Co.
Board of Harbor Commissioners' RR.(Wilmington, Del.).

For.. 129.

same." These words are prefaced by the qualification, 'subject to the
foregoing requirements," clearly indicating that this final requirement Is
subordinate to those which precede. They are also followed by the further
qualification. "so far as practicable." Those who drafted the paragraph
apparently realized that there might be a good deal of difficulty in conforming at all closely to this requirement, and the fact is that the difficulty
is insuperable. Even if we could at the outset carve out systems having
equal transportation costs, there could be no assurance that these costa
would remain equal, since they are so intimately affected by business
conditions in the particular territory served, efficiency of management,
and other similar factors. However, the drafters indicated the object which
they had In view by concluding with the words,"so that these systems can
employ uniform rates in the movement of competitive traffic and under
efficient management earn substantially the same rate of return upon
the value of their respective railway properties." What they really had in
mind, more briefly stated, and as I see it, is that we should design systems
capable of holding their own in the competitive struggle and with sufficient
financial strength to provide and maintain facilities adequate for good
service. To state it still more briefly, the chief purpose MIS to eliminate
the "weak sisters."
A further provision of the law which seems to me significant and important in connection with the preparation of the consolidation plan is
found in section 5 (6) (c). It is provided that when, after the promulgation
of that plan, a consolidation is proposed, not only must :t conform to the
plan but we must also specifically find, after public hearing, that it will
promote the public interest. This means that Congress recognized the
tentative, speculative character of any consolidation plan that we might
devise under the specifications of section 5 (4), and did not regard the mere
making of the plan as proof that it ought to be consummated. Further
evidence of this fact Is afforded by the blanket authority to make subsequent modifications. Public interest in the last analysis is to be the test.
and this being so, It seems to me that in exercising our discretion in the
preparation of the plan, and particularly in deciding how many systems
shall be included within the "limited number," we should be guided by our
conception of what the public interest demands. That should in turn, I
believe, lead us to pursue at the outset a cautious, conservative policy.
The reasons for caution are greatly augmented by the fact that we are now
dealing with a general railroad situation which in many respects is more
satisfactory that any which has been experienced in the past. There may be
ground for dissatisfaction in the general level of the rates, but it is not
seriously claimed that extensive consolidations will in themselves make
possible substantial reductions in rates even if there be eliminated from
consideration what may be the effect of the Supreme Court decision as to
valuations in the O'Fallon Case. So far as service, operating efficiency
in general, and ability to finance on reasonable terms are concerned, the
status of the railroads has been improving rapidly and steadily during the
past few years and now appears to be better than ever before This improve.
meat has extended to the so-called weak lines. They are far from presenting
the problem which they seemed to present in 1920. Those notorious "weak
sisters," the Kansas City Mexico & Orient, and the Atlanta Birmingham &
Atlantic, are new well taken care of, and other lines of somewhat similar
OPINIONS CONCURRING WITH THE PLAN OF THE COMMISSION. character will be found in the list of absorbed carriers which I have given
above. The financial status of others, such as the St. Paul, the Denver &
EASTMAN, Commissioner, concurring In part:
-Kansas-Texas, has been materially improved
Although I do not approve of it in important respects. I concur in the Rio Grande, and the Missouri
by reorganization. And many of the lines which appear to be weak have this
adoption of the consolidation plan above outlined because it has many good
reputation only because of over-capitalization. There are now, It seems to
features, because it is necessary under the law to adopt some plan, and
because it is not very important, after all, whether or not It is the best plan me, only a very few weak lines which are really disturbing factors in the
that could be devised. We may modify it at any time hereafter, and no railroad situation.
Under these circumstances I submit that there is no wisdom in experimentconsolidation for which it provides can be accomplished until we have found,
ing with a reasonably satisfactory situation by radical attempts to promote
after full hearing, that the public interest will be promoted thereby. There
is, I think, much misunderstanding on this point. The plan is very little consolidations out of hand on a grandiose scale, and that there is, on the
more than a procedural step. There is nothing compulsory about it, nor even contrary, every reason for proceeding cautiously and conservatively. I
do not wish to minimize the possible benefits ofconsolidations or unifications.
any assurance that authority will be sought to carry out the consolidations
which it proposes. Applications for authority to effectuate certain uni- In many cases they have been beneficial in the past, and without doubt
fications are now before us which in many particulars are inconsistent with many will be in the future. But I believe that there is a present tendency,
in certain quarters at least, to magnify beyond reason their possible adthe plan. The important time will come when we take action upon these
vantages and to overlook almost entirely their possible disadvantages and
and similar definite applications.
It must be borne in mind that the record in this consolidation plan dangers.
Much depends upon the way in which they are brought about and the
proceeding was closed some years ago, and is not up to date. In my opinion
we would not be warranted in adopting a plan without further hearings, terms and conditions. There have been numerous instances in the past of
were it not for the fact that it can be modified at will thereafter. Because unifications which brought disaster because of the gross extravagance and
the plan is thus lacking in finality, it seems to me that to the extent that waste which characterized their creation. Our plan combines the Frisco and
we have misigivings in regard to it we ought to indicate what those mis- Rock Island, but these roads were once before "unified" ma way which was
givings are and disclose frankly the present content of our minds. If we Productive of no good and many evil results. And included in this former
do this,,those who hereafter seek approval of definite consolidations or unification were such roads as the Chicago & Eastern Illinois and the
unifications will know what they have to meet, and will have a better Kansas Oklahoma & Gulf, which we are now seeking again to combine with
opportunity to correct misconceptions or to show, if it be the fact, that other properties. The Chicago & Alton also was formerly controlled jointly
the views which we are at present inclined to hold are based upon unsound by the Rock Island and the Union Pacific. It is my understanding that
premises or are the outgrowth of insufficient knowledge. For these reasons I these three smaller roads all suffered severely from their unification exshall discuss the matters under consideration at some length, starting with a Periences. Another illustration is afforded by the Western Pacific, the
Denver & Rio Grande Western, the Missouri Pacific, the Wabash, the
discussion of the statutory provisions under which we are now acting.
The wording of section 5 (4) leaves us with rather wide discretion in Pittsburgh & West Virginia, and the Western Maryland, which were at one
time all dominated, in some instances under different corporate names, by
formulating the plan, and I have no doubt that it was purposely so worded.
the same financial interests—again an experience from which they all
It is to be a plan for consolidation into a "limited" number of systems.
suffered. The New Haven, the Boston & Maine, and the Maine Central
Obviously the word "limited" is very indefinite. Fifty systems, or even
were likewise brought under common control not so many years ago, along
more, would fit the word as well as 15 or 20. Plainly it is contemplated
that the plan shall involve a material reduction in the number of systems with various steamship and electric railway properties, in a process of
existing at the time when the Transportation Act, 1920. became law, but unification which was highly disastrous in its results. Other illustrations
could easily be given. To-day, it is probable that the powers of regulation
there are wide limits of discretion in determining what the reduction shall be.
which we now possess would prevent similar excesses, although many
It should be remembered that.,the number of independently operated
of those which occurred in the past were a result of "holding company"
class I railroads has already been substantially reduced since 1920. The
operations such as are again beginning to develop and over which our
following Is an incomplete list of roads which have been absorbed since that
Powers of control are uncertain. I mention these injurious unifications of
the past not as prototypes of what is likely to happen in the future, but as
Alabama & Vicksburg.
Gulf Coast Lines.
illustrations of the fact that the terms and conditions under which unifiAnn Arbor.
International Great Northern.
cations or consolidations are accomplished are of critical and essential
Atlanta, Birmingham & Atlantic.
Kansas City Mexico & Orient.
Carolina Clinchfield & Ohio
Lake Erie & Western.
Such sentiment as appears to exist in favor of the consolidation of the railChicago Terre Haute & Southeastern Pere Marquette.
roads into a very few great systems is, I believe, largely artificial. According
Cincinnati Indianapolis & Western. San Antonio Uvalde & Gulf.
to my observation, there is very little sentiment of this kind among either
El Paso Southwestern.
Texas & Pacific.
shippers or railroad officers For the most part I think that it emanates
Georgia Florida & Alabama.
Toledo St. Louis & Western.
from financial circles which are likely to reap large profits from the mere
Gulf & Ship Island.
Vicksburg Shreveport & Pacific.
Process of putting the roads together. Furthermore, there is reason to
The next requirement is that "competition shall be preserved as fully as believe that the country is becoming considerably alarmed by the progress
Possible." The words "as fully as possible" leave a good deal to our judg- of consolidations and unifications among industries In general. It is feared
ment, but plainly, I think, the preservation of competition was regarded that control ofindustry is rapidly passing into a few hands, with the danger
as of prime importance, and it was not intended that we should have very that we shall become predominantly a nation of clerks and subordinates.
wide latitude in this matter.
Perhaps this process is inevitable in some lines of industry, and it may
The third requirement is that existing routes and channels of trade shall be eventually be the fate of the railroads. But there is so much doubt about
maintained "wherever practicable." Here I think we have more latitude Its wisdom that I see no reason for accelerating the process in the case of
than in the case of the second requirement,for certainly the words "wherever the railroads. There are strong grounds for belief that the best results
In operating efficiency and service are secured when a railroad system Is
practicable" are not as strong as the words "as fully as possible."
The final requirement is that the systems "shall be so arranged that the small enough so that the executive can maintain something like personal
cost of transportation as between competitive systems and as related to the contact with the employees all down the line and also with the shippers
values of the properties through which the service is rendered shall be the in the territory served. In this connection it is of interest to note that the

present Nickel Plate RR. is a combination of three parts: namely, the
original Nickel Plate, the Lake Erie & Western, and the Clover Leaf. The
two first named were at one time parts of the New York Central System,
and I understand that the Clover Leaf was once affiliated was the Rock
Island-Frisco system. As parts of larger systems these roads did not prosper.
but since their combination as a comparatively small and independently
managed system they have done very well indeed.
My judgment,in short,is that we should proceed slowly in this matter and
that the best consolidation plan would be one so constructed that if good
reason later develops, after we have had more experience, for carrying the
Process of unification further, it could be done by merely combining some
of the smaller systems. We ought also. I believe, to keep the following
Pointe in mind and govern our action upon consolidation accordingly to
the best of our power and ability:
1. The desirability in every important transportation center served by
two or more railroads of either having a single terminal company jointly
controlled but owning and operating all of the terminal property or else
complete reciprocity in switching, so that every shipper in the terminal
district can secure the service on equal terms of all lines reaching the
district. Wherever possible such "opening" of terminals should be provided
for in connection with the authorization of consolidations or unifications.
2. The desirability of co-operation by the railroads through some central
agency, like the American Railway Association, in all matters where their
special interests are not in conflict. Considerable has been done along these
lines, but much more is possible. It should include provision for a highly
organized central research department, such as has proven of great value
in the case of the Bell System telephone companies. In my judgment, many
of the advantages which are urged in support of railroad consolidations on a
grand scale can be realized in a better way by such a policy of intelligent
3. The desirability of provisions, in connection with all consolidations or
unifications authorized and in the form of attached conditions, which will
give us power to require upon reasonable terms trackage rights or other
joint use of facilities in the future to the extent that the public interest may
With these preliminary general observations I shall now proceed to comment upon the plan of consolidation as it affects various sections of the
New England.
It seems to me clear that in so far as lines in New England are now con!'
trolled by Canadian systems, nothing should be done to interfere with that
control. Intimate and friendly relations with Canada are of much importance to northern New England, and these Canadian systems also
supply an element of competition with American trunk lines which is of
very substantial value. This is particularly true of the State of Maine
and the seaport of Portland.
Nor do I see any sufficient reason for interfering, even if such interference were possible, with the control now exercised over the Boston &
Albany by the New York Central. So far as the other New England lines
are concerned, I am strongly of the view that they should not be permitted
to pass under the control of trunk lines operating west of the Hudson
River. Present routes and channels of trade can be maintained more effectively and the advantages of competition between the trunk lines can better
be realized if these New England lines are not absorbed by them. Close
and friendly relations between the New England rail lines and the steamship
lines which serve the ports, as well as with the Canadian rail systems, are
of vital Importance to New England, and such relations also can be maintained more effectively if further absorption of New England railroads by
the trunk lines is prevented.
As at present advised I am inclined to favor the union of the Boston &
Maine, the Maine Central, the Rutland, and the Bangor & Aroostook.
While substantial reasons can be advanced for assigning the Rutland to the
New York Central, I do not favor this, for the Rutland has a line to Lake
Ontario at Odgensburg which may be very important to New England in
a competitive way after the completion of the new Welland Canal. This
competitive route should not be in partial trunk-line control.
Whether such a northern New England system should be joined with the
New Haven is a question as to which I am in doubt. Those who advocate
this have, I think, a strong burden of proof. At the time when the Boston
& Maine was under New Haven control the merger of the two roads was
strongly opposed by many New England industrial interests, not only
because of the elimination of competition at such important cities as Boston,
Worcester, Springfield, and Fitchburg, but also because the natural tendency of the Boston & Maine is to encourage traffic to and from Boston,
whereas if it were merged with the New Haven the tendency would be to
favor traffic to and from the port of New York,in order to enjoy the longest
possible hauls. This possible subordination of the principal New England
port was then viewed with considerable alarm. However, it may be that
it can be shown that there is no present foundation for such fears.
In the case of the Delaware & Hudson, the Lehigh & Hudson, and the
Lehigh & New England, I doubt whether the advantage of their acquisition
by the New England lines would be sufficient to offset the probable cost of
open mind.
acquisition, although as to this also I have


Eastern Territorry.
In considering Eastern territory, I start with the proposition that the
Pennsylvania and New York Central systems are large enough, and in
some respects too large, at the present time and should under no conditions be made larger. My next proposition, is that no good reason has
been shown for building up two other equally large systems. There has
been much propaganda to the effect, that in order to secure effective competition with the Pennsylvania and the New York Central it is essential to
create rival systems of equal size, and that there is insufficient mileage to
create more than two such rivals. This is the keynote of the four-system
plan for the East,and those who advocate a greater number are stigmatized
as "playing into the hands" of the Pennsylvania and the New York Central.
To my mind this propaganda rests upon a premise which is wholly unsupported by proof. What evidence is there that it is necessary for a
system to be as large as another in order to compete effectively with it?
I submit that not only has there been no such proof but the evidence
points distinctly the other way. If the proposition were sound, how would
it be possible for the Baltimore & Ohio, the Wabash, the present Nickel
Plate, the Lackawanna, and the Lehigh Valley, among others. Which
might be named, to live and prosper? Yet we know that they have done
so, and upon the same level of competitive rates. In our working Papers
in this proceeding we have statistics showing average rates of return for
the three years ended Dec. 31 1927, upon our basic valuations brought up
to date by net additions and betterments since valuation date. The results
were as follows:
4.77 Baltimore & Ohio
4.96 Wabash
New York Central
5.08 Western Maryland
Central of New Jersey
5.15 Reading
Lehigh Valley
6.22 Nickel Plate
D. L. & W



DEC. 28 1929.]

The Pennsylvania is now, I understand, making a much better comparative showing and seems to be escaping from the doldrums towards which it
was drifting some few years ago. But this shows the danger by which a
very large system IS peculiarly beset. High-power, Intensive, progressive
management is, I am inclined to believe, more difficult to achieve and
maintain in the case of such a system than where the system is smaller.
The fact is, also, that in order to meet this problem of management it is
necessary for a very large system to divide itself into parts and manage and
operate those parts almost as independently as if they were separate systems.
For the present there is, in my judgment, no occasion for the building up
of systems in the East comparable in size with the Pennsylvania and the
New York Central. That can be done later if experience should disclose
a real need for such systems, but it is the part of wisdom to proceed in
that direction with the utmost circumspection. It is far easier to merge
railroads than it is to tear them apart again once they are merged. So
far as the plan is concerned, there is no statutory requirement that the
systems be equal or even comparable in size. All that is, necessary, in
my opinion, is that they shall have adequate earning power and financial
strength to hold their own in the competitive struggle, if well managed.
An important consideration to have in mind, it seems to me. is that
mere mileage is very far from being an accurate index of the magnitude of
a system. It depends upon where that mileage is. One thousand miles of
Western prairie track may carry less traffic and be easier to mnaage and
operate than 200 miles of line in the congested Eastern industrial district.
Comparatively small systems from the standpoint of mileage are, I think,
particularly desirable in the territory east of the Alleghenies and north of
the Potomac. It is also a mistake to assume that single-line routes are
-line routes often compete
essential to good and efficient service. Joint
very effectively with single-line routes, and as a matter of fact they have
done so for many years between points like Chicago or St. Louis and the
Atlantic seaboard.
A further erroneous notion is that end-to-end mergers are necessarily best
from the competitive standpoint. The error may be illustrated by the New
England situation. If the New Haven were consolidated with the Pennsylvania, competition would exist only at the handful of points which it
serves which are also served by other lines. If the New Haven remains
Independent, however, or becomes part of a strictly New England system,
every little town on its line will have the benefit on traffic to and from
competitive points west of the Hudson River, of several competing routes.
This is well recognized and understood in New England. As I shall late(
show, this principle is capable of effective application In other Eastern
In determining upon desirable consolidations.attention should not be con-and-West traffic. North-and-South traffic should
fined too closely to East
also be given due weight, and, with the rapid expansion of industry in the
South it will, I believe grow steadily in importance.
To a certain extent the confining of systems within the boundaries of the
recognized rate territories is, I believe, desirable. However, a considerable
amount of overlapping is also desirable to mitigate some of the disadvantages
of these rate territories. Such overlapping tends, for example, to break
down artificial rate practices, like the practice of "breaking" rates at the
Ohio or Missouri or Mississippi Rivers: and the competition of one or two
through lines spurs joint routes to the good service which such routes are
easily capable of giving if the participating carriers co-operate effectively
with each other.
In Eastern territory, outside of New England, the systems which I
would favor in preference to those proposed in the plan which has been
adopted are the following:
Pennsylvania System—New York Central System.
These would be the same as now constituted, except that I would not
include the Norfolk & Western in the Pennsylvania System. Either the
Clayton Act or the Sherman Anti-Trust Act should be used to pry these
two roads apart. They are, it seems to me, clearly competitive. The
Norfolk & Western's Hagerstown route competes with the Pennsylvania
on north-and-south traffic, and has very important potential possibilities
in this direction which have not been developed. The coal traffic of the
Norfolk & Western from the Southern fields is also intensely competitive
with the coal traffic of the Pennsylvania from the Northern fields, as was
amply demonstrated in the Lake Cargo case, to say nothing of the competition on export and import traffic through Norfolk as compared with
similar traffic through the Pennsylvania's ports.
Reading Company.
Central of New Jersey.

Reading System.
Western Maryland.
Lehigh & Hudson.

Lackawanna System.
Lehigh & New England.
Pittsburgh, Shawmut & Northern.
Lehigh Valley.
Pittsburgh & Shawmut.
Delaware & Hudson.
New York Ontario & Western.
These two proposed systems have points of similarity, so I shall describe
them together. Like the New England systems, they would be quasi terminal systems operating in the congested Eastern industrial district and
designed to provide access to this district and the great North Atlantic
ports freely and without favor to all connecting lines.
The proposed Reading System would afford access to the ports of New
York, Philadelphia and Baltimore, and through the present Lehigh &
Hudson it would have direct connection with the New Haven System. At
Hagerstown it would connect with the Norfolk & Western, this affording
comthe latter a splendid means of developing a north-and-south route
petitive with that which passes through Potomac Yard, this route
the three above mentioned Northern ports, but reaching each of
without passing through either of the others and reaching the New England
lines without passing through New York. At Connellsville. near Pittsburgh, it would connect with the New York Central and the Wabash
System, which I suggest below and it could easily be made to connect with
the proposed Erie System. At Newberry Junction or Williamsport it would
connect with the New York Central and the Pennsylvania, thus affording
Southern route to
the former an opportunity to develop the alternative
New York City of which it has had so much to say. It would not, of
Central its own line into New York, but it
course, give the New York
would give it access by a friendly connection, in much the same way as the
Baltimore & Ohio ha with great success reached New York and the Lehigh
Valley has reached Philadelphia. The Baltimore & Ohio is also projecting
a route across Pennsylvania via Newberry Junction, and the proposed
Reading System would in the event that this plan Is carried out afford the
Baltimore & Ohio, as well as the New York Central. free acess to New
York City. As an alternative, one of these new routes might use the
proposed Lackawanna System for its New York connection.
It would be a part of the plan that the stock control which the New York
Central and the Baltimore & Ohio now jointly exercise over the Reading
should be dissolved. This I believe could be done, if necessary, through a
Clayton or Sherman Act proceeding. In any event, it could be made a



condition precedent to the absorption of either the Jersey Central or the
Western Maryland or both by the Reading. It would also be a part of
the plan that the Baltimore & Ohio should be guaranteed for the future
the same access to New York Harbor as It now enjoys and that the Lehigh
Valley line of the proposed Lackawanna System should be protected by a
similar guarantee in the case of its entrance into Philadelphia. I would
further make it a condition of consolidation that if any other connecting
road should in the future seek an operating arrangement like that of the
Baltimore & Ohio or Lehigh Valley, we should have the right to require
such an arrangement to be made on just and reasonable terms. We could
then give the Wabash direct access to Baltimore over the line of the Western
Maryland, if it seemed desirable, or give either the New York Central or
the Baltimore & Ohio, or both, direct access to New York City over the
line of the Jersey Central. Probably the Maryland & Pennsylvania should
be included in the proposed Reading system. This is a little line which
competes with the Pennsylvania between New York and Baltimore. It
does not now connect with the Reading, but it would seem from the map
that a connection could be made without much difficulty which would result
in a direct line from the anthracite fields to Baltimore.
The proposed Lackawanna System would reach New York and Philadelphia and would also connect directly with both the Boston & Maine and the
New Haven systems. At Buffalo, it would connect with lines of the proposed Wabash, Erie, and Chesapeake & Ohio systems and also with lines
of the Canadian National, including the latter's Chicago line. All of
these systems would thus be given access by a friendly connection with
splendid facilities to New York, Philadelphia and New England, as well
as to many important interior cities in New York and Pennsylvania.
The Lackawanna and the Lehigh Valley are, of course, parallel and competing lines, but I believe that they can be combined without important
loss of competition, and with less such loss than would result if the Erie
and Lackawanna were combined, as proposed in the plan which has been
adopted. Through the Pittsburgh Shawmut & Northern and the Pittsburg & Shavrmut the proposed Lackawanna System would have access to
an important bituminous coal district and could, I believe, secure trackage
rights which would carry it into Pittsburgh. Whether the New York,
Ontario & Western should go to this system or be left with the New Haven
is open to some question. If the New Haven desires to retain this road,
there is, of course, nothing to prevent it from holding on.
The same conditions with respect to possible traffic arrangements with
connecting lines should be attached to this merger as are described above
in connection with the proposed Reading System. In particular, it might
be well to assure the Erie satisfactory access to the Albany gateway with
the New England roads over what is now the Binghamton line of the
Delaware & Hudson.
It might be argued that the proposed Reading and Lackawanna Systems
would reduce competition from the anthracite region, and also that they
would be too predominantly anthracite carriers. My belief is that adequate
competition would remain, for the two systems would interlace In both the
northern and southern anthracite districts, to say nothing of the competition from the Pennsylvania and the Erie. Furthermore, the anthracite
industry now has plenty of competition from other fuels and needs help.
The combination of the principal anthracite carriers into two systems would,
it seems to me,permit many important operating economies in a coal region
where railroad operation is exceedingly complicated. Indeed. I would be
willing to transfer to the proposed Lackawanna System the New York
Susquehanna & Western line of the Erie, which is a deficit-producing line,
the burden of which could well be carried by the Lackawanna System.
As for the predominance of anthracite traffic, I have introduced bitu
minous originating lines into both proposed systems. It is also my view that
railroad operation in the congested mining and manufacturing districts
which these systems would serve is sufficiently difficult and complicated,
so that there would be a distinct advantage in having a management in close
contact with, and able to concentrate upon, these problems. Finally, I
think that such concentration of the anthracite traffic would help instead of
hinder us in the regulation of anthracite rates. That is a problem which I
believe we soon shall have to face. The anthracite industry may be entitled
under the Hoch-Smith resolution to a near approach to the "lowest possible
lawful rates," which would mean that we must have as accurate knowledge
as possible of the cost of hauling this coal. It ought not in any event to
be hauled below cost, and we would be better able to judge of that cost if
the traffic were concentrated in the hands of comparatively small,compact,
and financially strong systems. In addition, such concentration should
lead to a reduction in the cost of transportation.
Baltimore & Ohio System.

[VOL. 12&

& Susquehanna would strengthen its position in this important coal and iron
district. The acquisition of the Buffalo & Susquehanna should be conditioned as I have above indicated in discussing the Baltimore & Ohio System.
Whether or not the Erie could acquire the Bessemer & Lake Erie without
our help is doubtful, but we could help it by a commodities clause proceeding. Certainly this important road should not remain in possession of a
single industry, the most important which it serves. In this connection,
there are several terminal lines in the Pittsburgh district of great strategic
strength which are industrially controlled, the chief of these being the
Union and the Montour. The common carrier portions of these roads
should be pried loose from the industries and converted into a terminal
property under joint control of the roads entering Pittsburgh, other than
the Pennsylvania and the New York Central. The latter two roads could
later be admitted to the joint control, upon condition that they open up
their own extensive terminals in the Pittsburgh district on a reciprocal
switching basis.
Wabash System.
Akron Canton & Youngstown.
Wheeling & Lake Erie.
Toledo Peoria & Western.
Pittsburgh & West Virginia.
Minneapolis & St. Louis.
The Wabash is now a strategically situated property with an excellent
earning capacity on the basis of valuation. It now reaches Buffalo, where
my proposed Lackawanna System would give it good access to New York,
Philadelphia and New England, and acquisition of the Wheeling & Lake
Erie and of the Pittsburgh & West Virginia would bring it into Connelsville, where it would connect with the suggested Reading System, with
direct access to Baltimore as well as to the more northern ports. The
Akron Canton & Youngstown, the Toledo Peoria & Western, the Wheeling
& Lake Erie, and the Pittsburgh & West Virginia, plus short additional
construction or trackage rights, could be developed into a direct new line
across central territory from the Mississippi River to Pittsburgh. With
such a line through Peoria, it would seem that the Minneapolis & St. Louis
would give the Wabash valuable access to the Twin Cities and other points
in the north-western part of western trunk-line territory. The Minneapolis
& St. Louis would also give the Wabash reasonably direct lines between the
Twin Cities and St. Louis and Kansas City. However, I would also give
the Illinois Central an opportunity to bid for the Minneapolis & St. Louts.
Any control of the Wabash System by the Pennsylvania should, of
course, be completely eliminated.
Chesapeake & Ohio System.
Chesapeake & Ohio
Pere Marquette.
My views as to the lines serving the southern coal fields are similar to
those of Professor Ripley. I believe that these lines should be independent
systems, not affiliated with any lines serving the northern coal fields and
free to interchange traffic on equal terms with all of the east-and-west
eastern systems. On the whole. I think it rather unfortunate that the Pere
Marquette should have been turned over to the Chesapeake & Ohio, but
this is water over the dam. My proposed Lackawanna System would, however, give the Pere Marquette division of the Chesapeake & Ohio System
at Buffalo free access to the northern Atlantic ports and their hinterland
and to New England. The coal tonnage in the southern fields promises to
be so important to the Nation in the future that in my judgment it should
not be placed under the domination of two, or possibly three, great eastern
systems. There are not enough lines to give all of the eastern systems
direct access to the southern fields, and therefore the bast disposition of
the matter is to make these southern coal roads independent agencies free
to interchange on equal terms with all. Such a disposition would also. I
think, tend to promote the development of the Hampton Roads ports. As
aforesaid, common control of the Chesapeake & Ohio and proposed Erie
systems should be ended.
Norfolk lit Western System.
Norfolk & Western.
Norfolk Southern.
Seaboard Air Line.
Detroit Toledo & Ironton.
This system will be more particularly described under "Southern Territory" below. It is dependent, as I have already indicated, upon prying the
Norfolk & Western loose from the Pennsylvania.
As to what should be done with this road, lam in doubt. At present my
best thought is to leave it alone, but give it a physical connection with the
Kanawha & Michigan line of the New York Central. Possibly if such a
connection were made and the Chesapeake & Ohio were converted into an
Independent system, the Virginian could be made part of the Chesapeake
& Ohio System without detriment to the public Interest.

Baltimore & Ohio
Chicago & Alton.
Buffalo Rochester & Pittsburgh
Southern Territory.
The Baltimore & Ohio now has a good system with excellent earning
I am in substantial accord with the plan which has been adopted, so far
capacity. The proposed Reading System would protect it in access to good
and adequate terminals at New York harbor, and that is the thing in which as this territory is concerned. The union of the Seaboard Air Line with the
it is mainly interested. Its main weakness is that it has few lines in the Norfolk & Western I regard as highly desirable, but I would not join them
northern part of trunk-line territory. I would improve this situation by to the Wabash System.
By way of the Wirston-Salem Southbound, which it jointly controls with
giving it the Buffalo Rochester & Pittsburgh, thus affording access to the
important cities of Buffalo and Rochester and to a crossiake route Into the Atlantic Coast Line, the Norfolk & Western has a splendid connection
Canada. In this connection I would also give it trackage rights over a with the Seaboard, and this would provide a good north-and-south lino all
portion of the Buffalo & Susquehanna. which I would allot to the Erie, so the way from Hagerstown to Atlanta and also to Charleston, Savannah and
that the Baltimore & Ohio could, if it desired, develop its proposed line Florida, with an equally good connection on the north with the proposed
across Pennsylvania to a connection with the proposed Reading System. Reading System. The Seaboard and the Norfolk & Western would also
The Monon would fit in well with the Baltimore & Ohio System, but on the make a good route from the southern coastal plains via Cincinnati to
whole I think it better to leave this road to the southern lines which now Central territory, and the addition of the Detroit, Toledo & Ironton would
control it. They show a disposition to keep it in any event, and I believe provide connections with all of the trunk lines. There is another connection
that the Baltimore & Ohio will experience no difficulty in making satis- between the Norfolk & Western and the Seaboard at Durham,and of course
factory operating arrangements with it. Doubtless it could trade its present one at Norfolk. Union between the two roads would have the further
financial interest in the Cincinnati New Orleans & Texas Pacific for such advantage that it would give the Seaboard a good coal supply. The proarrangements. The inclusion of the Chicago & Alton with this system may posed Southern, Coast Line, and Illinois Central systems are all well
be open to question, but it would give the Baltimore & Ohio a good connec- supplied with coal mines located in good regions, but not so the Seaboard.
tion which it apparently needs between St. Louis and Chicago, and would It would also give the Norfolk & Western an advantageous outlet for its
also extend the system to Kansas City. Such overlapping into another rate coal in southern territory. The consolidated system would be quite powerterritory is, I believe, desirable for the reasons already indicated. However, ful enough to carry the weak Norfolk Southern.
an equally good argument could be made for alloting the Alton to the Nickel
Western Territory,
Plate System.
In the case of western territory, I am in substantial accord with the plan
Brie System.
which has been adopted with certain exceptions. The most important of
Nickel Plate.
these is the proposed union of the Northern Pacific and the Great Northern,
Buffalo & Susquehanna.
Bessemer & Lake Erie.
and the proposed divorce of both from the Burlington. I do not approve of
The Erie and Nickel Plate are parallel and competing lines. We could uniting the two parallel and strongly competitive northern lines, but on the
compel them to be separated. However. I do not believe that this com- other hand I regard the divorce of the Burlington as an impracticable and
petition is of sufficient importance to warrant our doing this, and the Nickel undesirable undertaking. The situation is satisfactory as it now stands.
Plate has lines which should be valuable feeders of the Erie and of which Because of the competition of the northern lines, which are joint and equal
the latter is in need. But it should be made a condition of our permitting Partners in the control of the Burlington, it has the effect of making that
the union, as I see it, that common control of the proposed Chesapeake & road practically an independent system, SO far as management is concerned.
Ohio and Erie systems should be completely eliminated. Probably we Yet the advantages of direct intercourse between each of the northern
could force such separation in any event through the Clayton Act. The lines and the Burlington, which is naturally tributary to both,are preserved.
Erie already has access to Pittsburgh in connection with the Pittsburgh &
Partly because of this belief that no attempt should be made to divorce
'Lake Erie, but acquisition of the Bessemer & Lake Erie and of the Buffalo the Burlington from the two northern lines, I would not join the Missouri-

DEC. 28 1929.]



Kansas-Texas to the Burlington System. Nor would I join the Kansas City Erie and the Nickel Plate which parallel and compete with each other from
Southern to the Union Pacific. These two southwestern lines could with Chicago to Buffalo, and the Delaware Lackawanna & Western and the
advantage be united with each other and the Chicago Great Western into Erie which parallel and compete with each other in the territory east of
an independent system. This would afford direct connection all the way Buffalo. None of these are weak lines and no reason exists for their confrom the Twin Cities to the Gulf, and would also supply all east-and-west solidation except to create bigger systems.
Maintaining existing routes and channels of trade is the second major
systems which it would cross with an independent but friendly outlet to the
requirement. Any consolidation necessarily, to a certain extent, closes
Texas ports.
I am inclined to think, also, that it might be to the advantage of the West- some routes but some of the consolidations here proposed will close inern Pacific and the Denver & Rio Grande Western to be combined as a numerable routes. The law gives each carrier the right to the long haul.
system independent of the Missouri Pacific, affording all of the lines which For many years this has been construed as applying only to traffic in posreach Denver from the East an outlet to the Pacific Coast in competition session of a carrier. The Supreme Court in the Subiaco Case, 278 U. S. 260,
with the Union Pacific. The use of the Moffatt tunnel will enable this broadens this construction and makes it apply to all routes which short haul
a carrier. Under this construction some of the consolidations here proposed
route to compete on better terms with that of the Union Pacific. .
will result in the circuitous hauling of traffic to an extent that will probably
McMANAMY,Commissioner, concurring:
offset all of the benefits which might otherwise result.
In general I concur in this plan for the consolidation of railroads because
The Act also provides that—
under the law a plan is required before any consolidations may lawfully be systems shall be so arranged that the cost of transportation as between
made. But we should not,in order to open the door to lawful consolidations, competitive systems and as related to the values of the properties through
far as practicable,so that
propose consolidations which are themselves unlawful, and that I think which the service is rendered shall be the same,so movement of competitive
employ uniform rates in the
we have done; therefore I feel the necessity of expressing my disagreement these systems can
traffic and under efficient management earn substantially the same rate of
with certain principles of the consolidation plan here proposed.
return upon the value of their respective railway properties.
The purpose of the consolidation provisions cannot be clearly understood
I do not understand that this provision of the Act means that the systems
without considering the conditions under which they were passed. For 26
equal with respect to either mileage or value. The requirement
months the railroads had been under Federal control and were about to be must be
that the systems should be able under uniform rates to earn substantially
turned back. Ten of those months were war months, during which the
the same rate of return indicates that Congress was primarily interested
railroads were intensively used. For about six months following the war
gross earnings of the properties. This is further
during the return of the troops they were also fairly busy. Then traffic in the net rather than the
"efficient management" in the provision relating
fell off and both the railroads and the public became intensely concerned Proven by the inclusion of
other single factor will do as much to promote
as to the future of the transportation system of the country Due to in- to the rate of return. No
management, close enough to the
creased operating expenses without a corresponding increase in rates, Public welfare as intensive and efficient
Public to understand the needs of the shippers in the territory served and
many railroads were bankrupt, or nearly so, when taken over by the
to be readily reached to adjust complaints and to give intelligent and
Government. Rates had not been adjusted to fully meet increased costs
betterment of the service,
and it was generally conceded that without substantial increases in sympathetic consideration to suggestions for the
knowledge of their
rates private operation could not succeed. There was general apprehension and close enough to the employees to have intimate
working conditions and to command their respect and insure their hearty
that the transportation system of the country would not be able to function
not impossible, to extend
efficiently, if at all. Out of this came the consolidation provisions of the co-operation. It will be extremely difficult, if
which we here propose.
Act. What followed? When the roads were turned back this Commission, such management over some of the systems
I go along with this plan, therefore, only because it will cut the Gordian
under the authority conferred by the law, took steps to provide increased
knot and permit helpful consolidations and not because I expect economy
revenues. Relief was provided in extreme cases by funds appropriated for
and efficiency of operation to be promoted by the gigantic systems here
that Purpose by Congress. The railroads came through the re-adjustment
ment period following the war in better shape than any other major industry Proposed.
and to-day they are in far better shape financially and physically than at
any period in their history. The point I am leading up to in this brief TAYLOR, Commissioner, concurring in part:
From my view point it is clear that the requirements of Congress, as
reference to conditions surrounding the birth of the consolidation provision
Is that I doubt if anyone will contend that under present conditions the expresse in the act, that—
The Commission shall as soon as practicable prepare and adopt a plan
consolidation provisions would have become a part of the law. Transfor the consolidation of the railway properties of the continental United
portation conditions would not have justified it.
States into a limited number of systems * * (Sec. 5, par. 4.)
What is the situation now? Never have the railroads collectively or
When the Commission has agreed upon a tentative plan, it shall give
singly been in as good condition physically and financially as they are at the same publicity and upon reasonablt notice, * * * shall hear all persons
present. The weak lines, that is, those which actually need help, can be who may file or present objections thereto. * * * After the hearings are
counted on the fingers of one hand. Equipment is ample and our inspections at an end, the Commission shall adopt a plan for such consolidation and
publish the same, * * * (See. 5, par. 5.)
show it to be in better condition than ever before and improvements are
character that compliance therewith could be
going steadily forward. Safety devices are being installed at a rate never were of such a mandatory
before even considered. Orders for new material and equipment are suf- neither avoided nor indefinitely delayed.
I am equally certain that the instructions given to the commission for its
ficient to cover anticipated needs. There has been no car shortage for
of a plan for the consolidation
more than five years. Up to the time of the recent Wall Street debacle guidance in the preparation and adoption
car-loadings were making new records almost every week, not spectacular, of the railway properties into a limited number of systems, that—
preserved as fully as possible and wherever practicable
but a steady increase. The grain crop,large as it was, moved in one month competition shall be and channels of trade and commerce shall be mainthe existing routes
less time this year than last. Net ton-miles per mile of road per day, gross tained. * * * (Sec. 5, par. 4.)
and net train-loads, gross ton-miles per train hour, net ton-miles per car were not idle words, but were intended to mean in their full import, exactly
day, cars per train, and other operating records by which efficiency is what their terms implied.
measured are all better than ever before recorded.
Also, that the directions to the commission that—
Service to the shippers has never before been so satisfactory, Car miles Subject to the foregoing requirements, the several systems shall be so arper car day are the highest on record and a new record of average speed of ranged that the cost of transportation as between competitive systems and
freight trains has just been made. Dealers are said to be carrying smaller as related to the values of the properties through which the service is renstocks than ever before because they can renew without delay. The prin- dered shall be the same,so far as practicable, so that these systems can employ uniform rates in the movement of competitive traffic and under
cipal complaint shippers now have is with respect to the level of the rates, efficient management earn substantially the same rates of return upon the
and improved service is steadily robbing that complaint of its force. In value of their respective railway properties. (Sec. 5, par. 4.)
view of the conditions above described, the question naturally follows,
while secondary to the prime directions as to the preservation of competition
how will public interest be promoted by the creation of such huge systems
and of the existing routes and channels of trade and commerce, were meant
as are here Proposed?
to guide the commission in formulating the plan which it was instructed to
My conception of what Congress had in mind is, first, that short lines
adopt. It is clear that it was the purpose of Congress to provide an adeshould be changed from independent separate lines of railroad into branches
transportation for the entire country. With this purof trunk-line systems, thereby providing necessary equipment, facilities, quate system of rail
believe that Congress, in imposing this tremendous
and funds to assure continued operation of these very important and pose in view, I do not
to be merely an idle gesture, to
necessary parts of the transportation machine; second, that weak lines duty upon the commission, intended it
become effective only upon the voluntary action of the carriers, because
should be consolidated with stronger trunk lines thus assuring continued
life and usefulness for the weak lines:, and, third, that the public should the law provides that even after the adoption of the plan:
thereafter, upon its own motion
have the benefit of whatever increased efficiency and economy might result orIf (the commission) may at any timefor such changes or modifications
upon application, reopen the subject
from single instead of multiple line hauls. Beyond this consolidations may as in its judgment will promote the public interest.
profit those whose chief functions are to reorganize the corporations and
Thus the commission is authorized to change r modify the plan if, in
market the securities, but certain it is that the public will not benefit thereby.
The specific consolidation provisions are important. We are first directed its judgment, that is desirable.
Whether the commission has been given the power by order to require
consolidations as it may find to be in the public interest,
prepare and adopt a plan for the consolidation of railway properties of the such groupings or
I believe that question is answered in the affirmative by the following
Continental United States into a limited number ofsystems.
I disagree with the thought, which to me is apparent in the conclusions, language found in paragraph (8) of section 5 of the
made under the foregoing provisions
that in directing the consolidation of railroads, into a "limited number of ofThe carriers affected by any order organizaed to effect a consolidation
this section and any corporation
systems" Congress meant the "smallest" number of systems consistent with approved and authorized in such order shall be, and they are hereby,
the other requirements of the Act. Funk & Wagnall's dictionary defines relieved from the operation of the "anti-trust laws,"as designated in section
"limited" as "confined to certain limits." It further states "limited is often 1 of the Act entitled "An Act to supplement existing laws against unlawful
and for other purposes," approved Oct. 15 1914,
faultily used for small, scant, slight, and other words of like meaning." and of all rnd monopolies,or prohibitions by law, State or Federal, insofar
other restraints
Nowhere does the Act indicate, and we have no right to assume, that the as may be necessary to enable them to do anything authorized or required
word was faultily used by Congress. On the contrary, there is every reason by any order made under and pursuant to the foregoing provisions of this
to believe that it was correctly used. There is therefore nothing in the Act section.
This provision, which, in effect, gives the commission the power to render
which requires us to consolidate parallel and competing lines in order to
inoperative State and Federal laws, was to enable the railroads—
reduce the number of systems. In fact that is specifically forbidden.
I believe that the mandate of Congress that—
to do anything authorized or required by any order made under and purin the division of such railways into such systems under such plan, com- suant to the foregoing provisions of this section.
petition shall be preserved as fully as possible and wherever practicable
This certainly was intended, as I view it, to empower the commission to
theexisting routes and channels oftrade and commerce shall be maintained— make effective its order as to any grouping or consolidation which it might
is controlling, and that all other provisions relating to consolidation
were authorize or require.
Intended to and should be subordinate thereto. For the above reason I do
It has been demonstrated that the extraordinary and comprehensive
not believe that parallel and competing lines may lawfully be consolidated. power which renders imoperative certain State and Federal laws is sufBy competing lines I mean lines which in general servo the same producing ficient to enable this commission in effect to annul a decision of the Supreme
points, or ports, and the same markets. A conspicuous instance of this is the Court of the United States. Control of Central Pacific by Southern
Great Northern and the Northern Pacific which are to be consolidated Pacific, 76 I. C. C. 508.
under this plan. These lines extend from the Twin Cities and from Lake
In addition, Section 15 a, par. (2), provides:
Superior Ports on the east to Puget Sound ports on the west. They parallel
In the exercise of its power to prescribe just and reasonable rates the
commission shall initiate, modify, establish, or adjust such rates so that
each other for their entire length of more than 1.800 miles. They serve
carriers as a whole
such rate
jointly the same ports, the same grain fields, the same mines, the same as the commission (or as a whole in each ofdesignate)groups or territories
will, under honest,
may from time to time
forests, and such important intermediate cities as Spokane, Wash., Butte, efficient and economical management and reasonable expenditures for
Ilelena and Billings, Mont., Fargo and Grand Forks, N. flak., and a maintenance of way, structures and equipment, earn an aggregate annual
multitude of smaller communities at all of which each railroad is, as both net railway operating income equal, as nearly as may be, to a fair return
upon the aggregate value of the railway
of such carriers held for
have testified, the other's most active competitor. Other instances are the and used in the service of


With such powers vested in the Interstate Commerce Commission, can
anyone successfully argue that they may be used only for the Purpose of
authorizing a consolidation which has been voluntarily agreed upon by the
carriers, or to prevent a consolidation which the Commission disapproves,
but not for the purpose of requiring a consolidation which the Commission.
may determine to be in the public interest and necessary to the preservation of competition and the maintenance of existing channels of trade and
commerce. Such an assumption is contrary to the rule of reason.
As the proposed plan is a long step in the direction of complying with the
mandate of Congress, although it contains groupings which, no doubt, will
be rearranged upon further consideration, I approve of it in the main. I
disagree with the conclusions in so far as approval is given to the consolidation of the Northern Pacific and the Great Northern. Consolidation of
these two properties was attempted in 1893, in 1896. and in 1901. The
Supreme Court of the United States determined that they were competitive lines: that by their consolidation competition would be destroyed:
and that the consolidation was therefore contrary to law. Among many
reasons set up by the Court for declining to approve of this consolidation,
it said:
The consolidation of these two great corporations will unavoidably result
in giving to the defendant a monopoly of all traffic in the northern half
of the State of Minnesota, as well a of all transcontinental traffic north
of the line of the Union Pacific, against which public regulations will be but
feeble protection. (Pearsall v. Groat Northern Railway, 161 U. S. 646.)
In the light of this conclusion Of the Supreme Court, and the facts before
us, I do not believe that the consolidation of the Northern Pacific and the
Great Northern will be in the public interest, nor that the requirements of
law that competition shall be preserved as fully as possible and that the
existing routes and channels of trade and commerce shall be maintained
have been met. Until these facts are definitely established, and in my view
they have not been, the commission's power to,in effect, suspend the opera.
Von of the anti-trust laws, the Supreme Court has found would be
violated by this consolidation, has not fully matured.
Congress has declared a policy for the nation in respect to the consolidation of railroads, and has Issued an edict as to the manner in which it shall
be carried out. U. S. Code Title 49, Sec. 5. Irrespective of what I may
think as to the wisdom of this policy and the method of it execution, I
conceive it to be my duty, to execute In letter and in spirit the mandate as
In any consideration of this subject, it is well to have clearly in mind the
few principles that have been laid down.
The first requirement is that we shall prepare and adopt a plan for the
consolidation of the railway properties "Into a limited number of systems."
Second, that in the division into such systems "competition shall be preserved as fully as possible."
Third, "wherever practicable, the existing routes and channels of trade
and commerce shall be maintained."
Fourth,and the most important,the several systems "shall be so arranged
that the cost of transportation as between competitive systems and as relased to the values of the properties •* *shall be the same,so far as practicable, so that these systems can employ uniform rates in the movement of
competitive traffic and under efficient management earn substantially
the same rate of return"
The foregoing principles are clear, explicit and easy of comprehension.
They constitute the fundamental basis upon which all consolidations are
to be built. A consideration of them and their application as made by the
majority in New England, Official Territory and in one instance in the West,
impels me to dissent in those particulars.
New England.
In complying with the foregoing requirement of the law, that the railroads be consolidated into a "limited number of systems," we have, in the
great empire stretching 2,000 miles from the Mississippi to the Pacific
and 1,500 miles from Canada to the Rio Grande, designated 10 systems
ranging from 7,000 to 17,000 miles of railroad. In official territory, reaching from the Mississippi to the Hudson and from the Great Lakes to the
Ohio, and embracing that part of the United States which affords the greatest volume of traffic of any region, we have created five systems of from
7,000 to 12,000 miles of railroad. In the South, including the territory
from the Ohio to the Gulf and from the Mississippi to the Atlantic, we have
created three systems, fairly comparable in size with those in the other
parts of the country. But when It comes to New England, far smaller
than any one of the three grand divisions of the country here referred to,
we have created five separate systems ranging from 400 to 4,500 miles.
This is not, in my Judgment, viewed in the light of what we have done in
other parts of the country,a compliance with the very first requirement of
the law-that the railroads be consolidated into a limited number of systems.
We have many times recognized the peculiar transportation difficulties
of the New England lines. The New England Investigation, 27 I. 0. C.
560; Financial Investigation of New York New Haven & Hartford RR.
Co., 31 I. C. 0. 32; Proposed Increases in New England, 49 I. C. 0. 421:
Ex Parte 74, 58, I. C. C. 220: New England Divisions 66, I. 0. 0. 196.
In New England Divisions supra, at page 199, we said:
They "perform their part of the Interchange service under less favorable
conditions than their connections West of the Hudson River. They are
terminal lines; their hauls are short; their traffic splits at frequent junction
points and Is diffused over many secondary and branch lines; their train
loads are necessarily relatively light: the density of their freight traffic is
relatively low; and while their investment per mile of road is low, their investment per revenue ton mile Is relatively high. Moreover, no coal mines
are located on their rails, and fuel and many other supplies must be brought
from considerable distances."
The New England railroads with all these and many other difficulties
have a mutuality of interest. Their interests are closely interwoven with
one another by historical, financial, commercial and geographical considerations. We should spare no effort to place them in a position whore they
may be aided in overcoming their difficulties and in maintaining an adequate system of transportation to serve the public in their section.
I am convinced that this can best be accomplished by the unification of
all the rail tines of New England Into a single comprehensive system. This,
In the past. seems to have met with the approval of a majority of the members of a committee appointed by the Governors of the six States. It was
advocated at the hearings, and is now advocated, by leading railway executives experienced in the management of railroad properties, and was favorably commented upon by Professor Ripley in his very learned treatise of
the situation, appearing in 63 I. C. C., pages 517 to 525.
The group plan therein disclosed by Professor Ripley omitted from the
group the Boston & Albany and the Grand Trunk Lines, but every argument
advanced by him applies with equal force to a complete New England system. Among the reasons mentioned were the following: The preservation
of the existing freedom on interchange with connections from every part of
the country; the continued benefit to New England of the rivalry of the
carriers from the West and South in the exchange traffic at the different
gateways; the advantage of a consolidated power in dealing with the trunk

[VOL. 129.


lines as to divisions of through rates; the preservation of entirely open connections by sea: and the aid provided by such a plan in solving the important
problem of a constant supply of fuel at reasonable rates throughout the
entire territory.
In the past, every trunk line has had access equally with every other
trunk line to the New England gateways. By the eight gateways the railways of the South and West have had free access, and all of New England
have, in consequence, enjoyed the rivalry of these different carriers in the
disposal of their products. This would be assured for the future by a single
system in New England,interested alike at all the gateways. The divisions
of through rates accorded to the New England lines has bean before this
Commission on numerous occasions. Scarcely anything can be imagined
which will contribute more to bring about and maintain a fair and Just
division'of through rates, than the knowledge on the part of the trunk lines
of the power lodged in a single carrier controlling all the traffic of New England and able to divert it through any of its several gateways. No other
portion of our country is so vitally interested in the preservation of entirely
open connection by sea, particularly as concerns the coastwise situation,
owing to the large proportion of its population that lives within a comparatively short distance of the seacoast. The maintenance of a just relationship of rates-all rail rates to the West or South, and rates by rail East out
to tide, then on by water
-which keep open the coastwise routes,is a matter
of deep concern to entire New England. A System of railways interested
particularly in the Port of Boston could do much to aid in its prosperity.
The principal objection that seems to be urged to a single System for New
England is that it fails to comply with the second requirement of the statute,
heretofore mentioned, that competition shall be preserved as fully as
possible. It will be observed that the statute does not require the creation
or development of competition where llttle, if any, has existed. It requires
only the preservation of existing competition, where possible. Congress
recognized that in the process of consolidation, competition existing between the units brought together to form the larger System would be obliterated, but that so far as possible competition should be preserved between
the resulting larger systems. The record demonstrates quite clearly that
there is very little competition within New England at present between the
various lines. The competition between the two principal systems, the
New Haven and the Boston & Maine. within New England is not worth
considering. Direct rail competition within the territorY is limited to comparatively few points, and, since two-thirds of its freight tonnage is interchange business at the regional frontiers, competition in railroad service for
New England depends more on its relation to toe outside trunk lines than
on the existence of separate New England carriers. Then, too, in considering the question of competition, it should be borne in mind that the recent
rapid development of truck service is an over present power constantly
exerting itself, which precludes the possibility of the presence of those difficulties and abuses that usually accompany a monopolistic situation.
At the hearings all agreed that there were opportunities for economies in
operating the 8,000 miles of New England road as a unit. All agreed
further that real competition of New England business arises at the Hudson
River and Canadian gateways. It is this competition which New England
is zealous to preserve.
A complete New England consolidation presents no operating difficulties
of magnitude since its road mileage would be only about 8,000 miles and its
geography would be most compact. The executives in charge of such a
system located at some central point such as Boston, could reach any part
of it in a comparatively few hours. They could maintain close contact with
their principal employees and the public, this contact being essential to
efficient management and service. These reasons and many others that
might be mentioned, compel me to favor a complete New England System
embracing all the rail mileage within its limits; a system owned and managed
by New England, and for New England. Below are shown the lines comprising such a system,together with the mileage involved, the valuation as
of Dec. 31 1928. the rail operating revenues, the net rail operating income,
and the rate of return.
Name of Road.

Railway Net Railway Rate
Operating Operating
Income. Return
Operated. Dec. 31 1928. Revenues.

N.Y.N. H.& Hartford_ 2,148.97
Bangor & Aroostook
Maine Central
Atlantic & St. Lawrence_
Central Vermont
Boston & Maine
Boston & Albany_b
Lehigh & Hudson River
Lehigh & New England
New York Connecting__ _
Wilkes-I3arre Connecting
Belfast &Moosehead Lake
Sandy River .4 R. Lakes_
Barre & Chelsea
Clarendon & Pittsford__ _
Montpelier & Wells River
St. Johnsbury & L.Cham.
Bridgton & Saco River__ _
Kennebec Central
Knox RR. Co
Lewiston ai Auburn
Monson RR
Wisceaset Waterville &
Suncook Valley
Bristol RR. Co
Hardwick & Woodbury
Hoosac Tunnel & Wilm
White River RR. Co_ ___
Woodstock fly. Co
Vermont & Province Line
Moshassuck Valley RR
Narragansett Pier RR_
Wood River Branch
South Manchester

487,291,963 137,633,053 29,238.404
28,186,503 7,199,222 1,899,190
73,372,227 19,301,899 2,704,327
11,551,962 2,532.219
32,061,476 7,603,825 1,281,954
24,098,103 6,626,282
279,511,348 76,624,238 12,802,969




622,024 9.52
1,211,313 8.63
1,068,920 4.31
150,230 9.94
•13,485 .._ -78,041 15.38
6 ,780 1.34
35,667 1.66
117,083 3.72
.533 __*65,682
3,058 4.88



*4,324 _ _ _
1,672 1.51
*73,895 __*9,447
*309 --_

995,201,650 271,068,459 50,850,845 5.11
•Denotes red. b Lessor COMP4n7; included in New York Central. a Represents book value.
One other feature of the majority's treatment of the properties in the New
England region that seems of serious consequence is the allocation of the
Delaware and Hudson to the same system as the Boston and Maine and
other New England carriers. The great object which the New England
shippers have always sought to obtain is freedom to route their traffic via
any of the numerous gateways to the north and west of the New England
region. Thus those served by the Boston and Maine can route their traffic
Via the Canadian gateways or reach the trunk lines west of the Hudson
River by means of the connection between the Boston and Maine and
Delaware and Hudson at Mechanicville and with the New York Central at
Rotterdam Junction. On account of the divisions the attitude of the Boston
and Maine, for instance, would be more or less neutral as to whether the


DEC. 28 1929.]

traffic was delivered to the New York Central or to the Delaware and
Hudson. Inclusion of the Delaware and Hudson in the same system as the
Boston and Maine would seem to at once raise a conflict of interest between
the enlarged system and its shippers because obviously the system would
insist on the long haul which would embrace substantially the entire length
of the Delaware and Hudson, thus eliminating to a large extent the very
important connection with the New York Central System at Rotterdam
Junction, and to a lesser extent the interchange with the Canadian lines at
northern New England junctions except where the routing via those junctions may be influenced by differential rates. The interchange of the
Boston and Maine with the New York Central system at Rotterdam
Junction amounts to several hundred thousand cars yearly and is as fully
important as Is the Boston and Maine's interchange with the Delaware and
Hudson at Mechanicville. It seems to me that the greatest freedom in
competition would be obtained by including the Delaware and Hudson in
a system west of the Hudson River, or by having it controlled in the joint
interest of all the systems west of the river.
Official Territory.
In Official Territory,"it is a condition and not a theory that confronts ua."
There Is in this region one paramount carrier. It advertises to the world,free
from contradiction, that it carries more passengers and more tons of freight
than any railroad in America. I refer to the Pennsylvania System. There
is in the same territory a very close second to the Pennsylvania System. so
close that many regard it as fairly equal in every way. I refer to the New
York Central System. These two great, aggressive, and powerful transsportation machines, each efficiently and honestly managed, are actively
competing one whit the other, and striving to serve the public with zeal
and fidelity. There are approximately 58,000 miles of railroad in Official
Territory, nearly one-half of which are owned or controlled by these companies. They control an even greater proportion of the desirable mileage.
We can not assume, in dealing with this territory, as we can in the South
or West. that more mileage may be constructed in the near future, for a
much more static condition exists.
I realize that it is said that mileage and competitive strength are not
synonymous; that there are comparatively short lines which in net earnings
and in operating ratios make a better showing than some of the larger
systems. Yet I wonder, for instance, what would happen to the Delaware
Lackawanna & Western, one of the comparatively short and strong lines,
if all of its neighbors and particularly those upon which it depends for receiving traffic from the West were permitted to combine into single systems
with through lines from the Middle West to the Atlantic seaboard. I can
well imagine those in charge of that property would at once claim that if all
of their neighbors and principal traffic feeders be permitted combine, they
too, would want to be affiliated with some system equal in strength to their
neighbors. It must be conceded, however, that if the policy of consolidation is to prevail as outlined by Congress, in order for any one system to
have strength comparable with another, it must have sufficient mileage to
reach as many of the principal sources of traffic as possible, and have
sufficient mileage to deliver that traffic at important places of ultimate
Aside from the matter of mileage, the present predominant strength of
the two systems above mentioned is clearly indicated by other facts. The
gross revenues for the first six months of 1929 of the two systems were
more than $20,000,000 in excess of that of all other eastern roads, and their
net railway operating income was $2,000,000 more for the same period.
The Pennsylvania and the New York Central systems earned last year
(1928), 52.6% of the revenues of all class I railroads in Eastern Territory,
excluding the Pocahontas Lines and all the New England roads, except the
Boston & Albany. Whatever additional systems might be set up in this
territory would thus have only 47.4% of the revenues remaining to be
divided among them. Including the Pocahontas Lines, the Pennsylvania
and the New York Central have 47.8% of the revenues. If the Norfolk
& Western be added to the Pennsylvania and nothing to the New York
Central, the two systems would have 51.7% of the total, including the
Pocahontas Lines. The strategic location and desirability of the lines of
these two major systems are indicated by the fact that their percentage of
either the total gross or net operating incomes as compared with the total
gross or net incomes of all other Official Territory roads, is nearly 10%
greater than their percentage of the total miles of road in Official Territory.
Tests other than mileage and revenue will show practically similar relationships of the foregoing systems to the entire Official Territory group of
As has been indicated, there are in this district, outside of the lines owned
by the two major systems described, approximately 33,000 miles of railroad. This mileage is divided among approximately 25 fairly important
lines. Of these lines, if the so-called Chesapeake & Ohio-Nickel Plate
Lines are entitled in any sense to be regarded as a system they, and the
Baltimore & Ohio Railroad, are the two most important existing systems.
What has been said briefly but correctly portrays the existing railway
situation in this section of the country. The problem confronting us is,
how shall these actualities be met in determining upon a plan of consolidation in this territory, in conformity with the clear mandate of Congress?
It should be stated at the very outset that at the time of the passage of
the law providing for consolidation of the railroads, there were in existence
a number of large railway systems. There was no indication given in the
law that it was the desire of Congress that unification of the roads be
brought about by the dismemberment of any of these large systems. It
would seem apparent, on the other hand, that consolidation be consummated by a unification of those lines not already members of a dominant
system so that the new or strengthened systems would be fairly comparable
in competitive strength and earning power with each other and with the
larger systems,
Upon the face of the situation, is it not manifest that the real solution is
to bring together the railways in this territory, outside of the two prominent
systems, in such a manner that the resulting systems will be as nearly equal
as possible to the existing two major systems? It would appear possible of
almost mathematical demonstration that the greater the number of systems
created from the 33,000 miles of road—and much of it less desirable mileage
—the relatively weaker will be the individual units thus created.
The majority propose to meet this problem by the creation of three
systems in addition to the Pennsylvania and the New York Central. They
would add some to the strength of the Baltimore & Ohio System, and both
add to and take from the Chesapeake & Ohio-Nickel Plate System. At the
same time, they would attempt to set up a comparatively new third system,
commonly referred to as the Wabash.
A preliminary glance at the new third system is rather significant. The
majority would start it on the bank of the Missouri River at Kansas City
and Omaha, then by way of the Wabash, through St. Louis to Chicago,
Detroit,Toledo and Buffalo,and then on the one hand by the Lehigh Valley
RR., and on the other by the Wheeling & Lake Erie, Pittsburgh & West
Virginia and the Western Maryland,to the Atlantic seaboard. They would
also proceed from Chicago by way of the Chesapeake & Ohio of Indiana


and the Norfolk & Western to a third port of the Atlantic. Then continuing
southward along the Atlantic Ocean and the Gulf coast by means of the
Seaboard Air Line they would bring their fifth system to the cities of
Montgomery and Birmingham, Ala. I do not quite understand why, in
their spirit of generosity, they did not add to this the line of the Frisco
from Birmingham to Kansas City, and thus create a system which would
completely encircle the entire Eastern half of the United States. The very
geographical extent and character of the proposed system is sufficient to
demonstrate its impracticability.
A more important consideration of the proposed fifth system in the East is
its constituent elements. It would be,in truth, and in fact, a second Pennsylvania System. It is a matter of common knowledge that the Pennsylvania directly and indirectly owns or controls a majority of the capital
stock of the Wabash, the constituent parent company of the proposed
system. It is likewise generally known that the Pennsylvania owns a
substantial, if not a controlling interest in the Lehigh %%Ale:, Railroad.
It is also known that the Pennsylvania owns and controls the major portion
of the capitalstock of the Norfolk & Western,a road abs,Antelj, necessary to
the fifth system, by reason of its strong financial position. The Pennsylvania has declared that it will not part with its ownership or control of these
important and necessary elements of the proposed system until they are
compelled, If ever, anywhere short of the last legal ditsh. Even if litigation
now pending, together with the additional litigation necessary before this
system can be formed, were finally successful, it will be many years before
the roads forming the nucleus of this system can be unified. This unnecessarily further complicates and postpones for years the final settlement
of the situation as concerns this territory. From what has been said in
reference to the present strength of the New York Central and Pennsylvania
systems, and with the latter system still further strengthened by the additional system here proposed to be set up,so that that system will have two
out of the five, it will inevitably result in a further weakening of any remaining lines. Evidently, the majority are strong believers in the biblical
suggestion "For whosoever hath, to him shall be given, and he shall have
more abundance, but whosoever hath not shall be taken away even that
he hath."
The systems we are primarily concerned with here are what are termed
or generally spoken of as official territory systems. The majority proPose systems almost wholly within this region, other than the new Wabash
system, varying in mileage from approximately 10,000 to 12,000 miles.
The proposed Wabash System would have less than 6,000 miles of road in
official territory. If we add to that the 2.000 miles of the Norfolk &
Western, as included in this region, it then makes a system of less than
8.000 miles as compared with the others of far greater mileage. By adding
the Seaboard Air Line, which operates in a territory wholly foreign to the
one in which the other systems would be operating, we have a system of
approximately 11,500 miles.
The operating revenues of the Pennsylvania System are $704,000,000 or
$61,286 per mile of road, and of the present New York Central System
$610,000,000 or $50,195 per mile of road. The present operating revenues
of the lines forming the proposed Wabash System in official territory are
$208,000,000 or $32,050 per mile of road. If we add to this the Norfolk &
Western, it would increase the total to $315,000.000 and $35,948 per mile
of road, but still much less in comparison than that of the Pennsylvania-or
the New York Central systems. The Seaboard added to these would
make $372,000,000 or $28,103 per mile of road. It takes about five miles
of the Seaboard to earn as much as one mile of the Pennsylvania. Of the
major lines comprising the majority's proposed fifth system, the Wabash
and the Lehigh Valley earn $143,000,000 or nearly 699, of the total. After
all, it seems quite obvious that so far as official territory particularly is
concerned, this proposed system would prove at best to be severely handicapped in its efforts to thrive under all conditions and circumstances upon
the same level of rates as can systems like the Pennsylvania and the New
York Central.
If time and space permitted, it could be demonstrated that the other two
systems, of official territory, the Baltimore & Ohio and the Chesapeake &
Ohio-Nickel Plate systems, would in like manner be relatively weak from
a transportation standpoint as compared with the two major systems, and
thus likewise handicapped in their ability to efficiently serve the public
and prosper under a common level of rates. The sum total of the situation
simply is that there are not enough railroads for more than two additional,
reasonably adequate systems that can be created out of the mileage not
actually owned by the Pennsylvania and New York Central. It should
be further observed that present routes, facilities, service, and competition
being adequate, there is no substantial reason why any attempt should be
made to build up more than two additional systems. A third one, as is
here proposed to be formed out of this remaining mileage, will inevitably
be formed at the expense of the other two and all three will be inadequate
in comparison with the two existing dominant systems.
Much more might be stated in demonstration of the error of attempting
to build up what is commonly termed a "fifth system" in Official Territory.
Enough has been said, however, to indicate some of the fundamental weaknesses of such a scheme and which may serve to call to the mind of anyone
interested, the many others possible of mention. Any unbiased mind must
be impressed with the absolute futility of the allocation as proposed by the
In the discussion of the question,I have not included in my consideration
the so-called short or weak lines. While the short lines as allocated add
somewhat to the total mileage of the various systems, they are in a great
many instances sources of weakness rather than strength. In fact, one of
the good results expected to be accomplished by consolidation is that the
strong roads will carry the weak ones and on the whole be able to maintain
an adequate system of transportation at the lowest possible level of rates.
It is the well maintained class I roads that must form the backbone of any
successful railway System.
Having indicated what I regard as the existing situation, the problem
confronting us arising therefrom, and the reasons underlying my inability
to agree with the solution adopted by the majority, I feel constrained to
briefly set forth what I regard as tne only proper method of arriving at a
solution of the question in harmony with both the letter and spirit of the
plain direction of Congress. All will agree that we should deal with the
matter In a practical way. Under the provisions of the law, the actual
consolidation of the railroads must proceed on a voluntary basis. It follows,
therefore, if this is to be accomplished, the proposed consolidation must be
sufficiently advantageous as to afford an incentive to the carriers to go
forward, subject always to the limitation that nothing be permitted which
is not in the public interest. As much as we might desire a more perfect
answer than under existing circumstances we can find, we must accept
things as they are, and make the best adjustment possible that affords a
reasonable probability of attainment. As has been already indicated, we
can not be expected to dismember to any great extent 'well articulated
systems that are now functioning. We have to accept the Pennsylvania
and tho Now York Central as permanent institutions. The question is then.
what shall we do with the 33,000 miles not parts of those carriers? Keeping in mind the fundamental requirements imposed by the law that the




results of our work must be systems fairly equal in competitive strength
and earning power under a common level of rates.I can see but one answer
two other systems, or four in all.
The President. in his message to the second session of the Seventy-first
Congress. on Dec. 23 1929, admirably expressed the results to be obtained
If the directions of Congress are wisely carried out:
The chief purpose of consolidation is to secure well balanced systems with
more uniform and satisfactory rate structure, a more stable financial
structure, more equitable distribution of traffic, greater efficiency, and
single line instead of multiple line hauls. In this way the country will have
the assurance of better service and ultimately at lower and more even
rates than would otherwise be attained.
Using the words of the President, "well balanced systems" means,in my
Judgment, four and not five systems. The present New York Central and
Pennsylvania systems ramify through most of this region. Both touch
each other at all points west of the Buffalo-Pittsburgh Line. One is prominent in the State of New York, the other in Pennsylvania. The Baltimore
& Ohio is the next largest system with intensive development in Ohio,
West Virginia and around the Pittsburgh District. The building up of
systems from the remaining mileage, to compete effectively in all respects
with the two larger systems can, in my judgment, be accomplished best
by adding strength to the Baltimore & Ohio and fashioning the other lines
into the fourth System. There is now a basis for the fourth System-what
may be called the Chesapeake & Ohio-Nickel Plate System. The indisputable fact is that even then no effort can place these systems on an equal
basis with the New York Central in New York and Lower Michigan or
the Pennsylvania in the Pittsburgh District. The four systems will, however, meet the requirements of the law and contribute much to bring about
the desirable results mentioned by the President.
Amther distinct advantage of this proposal over the fifth party plan is
that it is practical, not theoretical. It has the possibility of early accomplishment. It need not wait the outcome of lengthy and vexatious
litigation. People now in being may reasonably hope to live to see its
The lines comprising such a four party plan, together with the mileage
Involved, the valuation as of Dec. 31 1928, the rail operating revenues,
the net rail operating income and the rate of return are set out below, and
I invite a study of the advantage of this plan as proposed in the firm belief
that it comes as nearly complying with the statute and as likely to produce
what may be expected from well-balanced systems, as any that may be






• Denotes red.
a Includes data of Boston & Albany RR. b Represents book value.
[The Pennsylvania RR.Co., together with allot its generally recognized subsidiaries,
Including the following]:

Name of Road.

Operated. Dec. 311928.

Railway Net Railway Rate
Operating of ReRevenues.

10,466.72 a2,297,372,581 650,567,316 117,297,886
Norfolk & Western
2,241.46 a427,907,271 106,947,111 34,204,058
Baltimore & Eastern_a740,683
Long Island
404.11 a131,747.689 40,532.572 7,542,459
Ohio River & Western_
Pennsylvania & Atlantic_
Phila. Jr Beach Haven_ __
Roselyn Connecting
Waynesburg & Washlon.
a30.729,073 10,484,098
West Jersey & Seashore-970,614
Western Allegheny
Chicago & Alton (East of
73,974,246 22,832,278 2,200,698
Mexico. Mo.) (4-5).. _
Big Sandy & Curnb. RR_
7,551,901 2,179,189
Toledo, Peoria & West'n.



Dayton & Union
Cm.Ind. & Western b.
Reading Company
Atlantic City
Catasauqua & Fogelsv_
Central RR.. of N. J-690.52
N. Y.& Long Branch__
Gettysburg & Harrieb'g
North East Penne_ _ _ _
Phila. & Chester Valley
Phila. Newtown Sr NY.22.14
Pickering Valley
Port Reading
Reading & Columbia
Stony Creek
Williams Valley
Staten Island Rap. Tran_
Chic. Ind. & Louisville_ _
Wabash (East of Mississippi River) (2-3)
Ann Arbor
Manistique & Lake Superior RR. Co
Detr. Toledo Sr Ironton
Buff. Rochester & Plash_
N. J. Ind.& Ill. RR. Co_
Buffalo & Susquehanna

_______ _

Railway Net Railway Rate
Operating of ReOperating

c883,842,043 236,818,681 49,387,716


260,481,645 89,940,033 17,098,849 6.56
c15,458,727 3,732,785
290,640 25.47
178,050,932 58,002,057 9,385,057 5.27
248,182 3.55
499 653
ci, ,
314,497 8.07
c3,897,023 1,300.485
90,072 2.23
76,456 1.40
c5,464,276 2,365.220
58,180 10.01
349,650 2.78
c12,569,271 3,127,661
c51,903,910 18,381,006 2,606,936 5.20
c188,048,915 47,381,994
c22,920,584 5,965,673
c47,724.336 11.107,836
c72,033,704 16,966,504
11,126,642 1,632,983



2,635,598 5.52
2,787,638 3.87
203,208 10.64
321,448 2.89

12 ntta 19 1 777 000 492 Ann 950 ARS 02 8011 3151


* Denotes red.
a Transportation operations conducted by the Central RR. Co. of New Jersey,
and the Pennsylvania RR. Co.
O Non-operating company, included In B. & 0. c Represents book value.

Western Territory.

88,830,152 15,622,538 5.78
670,291 7.33
93,217,493 23,155,967 11.26
206,071 12.70
31,406.816 7,770,829 6.66
18,480.118 7,096,053 4.72
71,935,071 12,315,126 4.76

14.470.94 2.524.225.315 705.873.601 129.980.067

Baltimore & Ohio

Operated. Dec. 31 1928.


Railway Net Railway Rate
Operating of Re

N. Y. Central RR. Co. a 6,911.27 61,403,505,979 381,733,244 62,222,122
Cleve. CM.Chic. & St. L. 2,397.25
Cincinnati Northern
Evans. Ind.& Terre Han.
Fulton Chain
Michigan Central
Chic. Kalamazoo & Sag
Pittsburgh & Lake Erie
Raquette Lake
N.Y.Ontario & Western_
Lehigh Valley
Wood River Branch

Name of Road.


sidiaries, except the Boston & Albany.]
Operated. Dec. 31 1928.

[The Baltimore & Ohio RR. Co., together with all of its generally recognized subsidiaries, including the following]:

It will be readily observed that the four-system plan above outlined
reveals the following distinct advantages:
1 The important port of New York will be served by the four systems
any one of which will have as complete terminal facilities as it is possible to
provide at this time. Two of the systems will have entry to the port of
Philadelphia, with a third System, the New York Central, reaching Bethlehem Junction, Pa., a point from which it will be entirely possible for it
to enter this important port, as may likewise be true of the Chesapeake &
Ohio System. Baltimore, Norfolk, and Washington will each be served by
three of the systems. Thus, the most important Atlantic ports in this
territory, which are also very large consuming centers, will each be reached
by three or all of the four systems
2. The largest coal-producing regions of the East, those of Virginia and
West Virginia, will be tapped by the four systems, three of which cross this
important section on their way from the Ohio River to Hampton Roads and
the fourth reaching well into the heart of it from.
the North.
3 Each of the systems will ramify throughout the territory and will be
In a position to contribute to the widespread distribution of traffic. The
important centers and traffic producing points of Pittsburgh, Buffalo.
Cleveland, Toledo, Detroit, Columbus, Cincinnati, Indianapolis, Louisville, St. Louis, and Chicago, will be reached by the four systems. Other
gateways along the Mississippi and the Ohio will be reached by from one to
three of the systems. The list of cities thus reached will readily demonstrate how completely will be served the large centers of manufacturing,the
great sources of fuel and other commodities, the important traffic centers
at the lake ports, and the many points of traffic interchange.
4. Mileage, property investment, gross earnings, and net operating income are more nearly equalized than would be at all possible in the case of a
larger number of systems.
5. The four systems will have equality of opportunity to serve the public
throughout the entire region, to provide adequate facilities, and to make
necessary extensions when found within the interest of the public
6. The four well-balanced systems will provide more effective and actual
competition throughout the entire district than any additional number of
systems can possibly afford.

[The New York Central RR. Co., together with all of its generally recognized sub-

Name of Road.

[Vol.. 129.


Without attempting to discuss the merits, but simply for the purpose of
7.29 inviting further consideration at the time that consolidation by proper application may be sought to be effectuated, I wish to mention one allocation
3.16 made by the majority in this territory which I think merits consideration.
Extending across the very heart of the great Western Empire is the finan2.07 cially strong, physically well maintained, and efficiently managed, Union
Pacific System, with its main line extending from Omaha to Ogden, Utah,
4.09 and thence by three arms reaching the Pacific Ocean, one of which over its
14.827.01 2.977.532.347 834.798,031 162.098.638 5.44 own line to Portland, one over trackage rights to San Francisco, and the
third over its own tracks to Los Angeles. We also propose to allow it to
• Denotes red. a Represents book value.
acquire an outlet from Kansas City to the Gulf of Mexico. Through this
same central portion of the country there is now the Western Pacific from
San Francisco to Salt Lake City and the Denver & Rio Grande Western
from there to Denver. These two lines in the past have been considered as
being far from strong transportation units in any respect. To afford any
Railway Net Railway Rate
Operating of Reto
Name of Read.
real competition worthy of the name with the Union Pacific, they must be
Operated. Dec. 311928. Revenues.
coupled up with some efficient and powerful transportation company, able
to assist them financially and with a large volume of traffic. The majority
347.958.480 124,825.172 36,323,594 10.44 propose to do this by allocating these two carriers to the Missouri Pacific
Chesapeake & Ohio
44,921,284 20,801,232 5.624,746 12.52 System. To my mind, the Missouri Pacific System is not in a position to
Hocking Valley
N.Y. Chic. & St. Louis
145,902.854 52.876,520 9,556,897 6.55
Pere Marquette
2,244.51 al13,195.907 45.761,568 10,598,357 9.36 give the strength either financially or in a traffic way to the Western Pacific
288,597,102 81,135,181 17,119,225 5.93 and the Denver & Rio Grande Western that is necessary to make them
Del. Lack. & Western_
326.795,631 110,091,920 18,434,211 5.64 capable of effectually competing with the Union Pacific. The Missouri
Bessemer dr Lake Erie962,432,34i 15,794,736 5,207.732 8.34 Pacific is essentially a Southwestern System, but recently put together, and
Wheeling & Lake Erie _.. _
990,285,348 20,705,664 4,975,836 5.51
942,054,255 4,473,023 2,218,718 5.28 not yet established on a basis sufficiently sound to afford the necessary
Pittsburgh & W. Va
Western Maryland
862.14 9150,838.765 18,592,557 5,250,619 3.48 strength to these two Western lines. Furthermore, it does not reach over
516,712 3.86 Its own tracks the gateway of Denver.
Pittsburgh & Shawmut_
913,402,747 1,883,261
285,658 1.11
925,647,875 1,918,609
Pittsb. Shawrnut & Nor
I am persuaded that the Burlington System, by reason of its splendid
330.088 4.40
17,496,412 1,668,743
Detroit & Mackinac
Chicago & Erie
26.234,344 14,884,622 1,612,949 6.15 physical condition, its conservative capital structure, its strong financial
New Jersey & New York_
03,618.343 1,583,383
POSiti011, and its physical location, affords much the better parent for a new
1.18 transcontinental line
N.Y.Susquehan. & West
538,902,369 4,957.023
from Chicago to the Pacific. I would therefore, in
Bath & Hammondsport22,629
.83 addition to what the majority have allocated to the Burlington System, add
Wilkes-Barre dr Eastern__
151,258 3.80 the Western Pacific and the Denver & Rio Grande Western. With the
Lorain & W. Va. Ry. Co_
completion of the Moffat Tunnel and the Dottier° Cut-off, this route has
12 017 R0 1 725 557 rnz A22 Aix 148 118.441.330 6.82
great possibilities, but it will take a very powerful System such as the
Burlington to make it effective. I submit the following as my proposed
• Denotes red.
Burlington System in lieu of that proposed by the majority:
Does not include 199.04 miles n Canada. b Represents book value.


DEC. 28 1929.]


There are many admirable features of the plan, notably the proposal for
open terminals—terminals,that is to say, not tied up to individual systems
but existing for the use of all. Nothing will promote the public interest
more than such a plan, carefully worked out for the separation of the main
stems of the railways from the pick-up-and-delivery systems in and about
610,780,736 162,891,409 32,912,367 5.39 the greater centres of population.
Chic. Burl.& Quincy RR. 9,375.44
43,385,728 12,303,314 1,957,437
Colo.& Southern Ry. Co. 1,040.77
But the Commission would seem to have been embarrassed by decisions
Ft. Worth & Denver City
which in practice though not in actual text have tied
32,064,461 11,601.560 3,651,576 11.39 already rendered
Ry. Co
388,558 8.79 hands for the future.
4,421,177 1,752,861
Wichita Valley Ry.Co
Thus the Union Pacific was thwarted in its desire to get the Central
Quincy Omaha & Kansas
*197,073 --- Pacific, which gives it a line from Salt Lake City into San Francisco.
City RR. Co
301,535 4.60
6,554,173 1,797.564
Green Bay & Western RR
of any statesmanlike
22,179 2.12 This one denial, in its ramifications, stands in the way
Ahnapee & Western Ry
Plan for even handed competition between systems, each of which operates
Kewaunee Green Bay &
147,584 9.21 straight through from Chicago to the coast.
Western RR
Chicago S. Alton RR. Co.
Then again, the allocation some years ago of the Denver & Rio Grande
(west of Mexico, Mo.).
550,174 2.97 to the Missouri Pacific at Denver, instead of giving a strong road, like
18,493,562 5.708,069
1-5 interest
107,071,046 35,893,871 10,543.390 9.85 Burlington, a straight-away line to the coast, creates what must be a second
Mo.-Kan.-Texas RR. Co. 1,799.31
70,882,694 20,655,247 1,661,082 2.34 rate service in the very nature of things.
M. -T. RR.Co.of Tex. 1.389.23
127,252,221 33,200,656 7,094,772 5.58
Denver & R. G. W.Ry
All these decisions were made with reservations to permit of reallocations
16,566,366 4,011,663 1,428,412 8.62
Denver & Salt Lake Ry
matters knows
103,769,544 17,594,075 2.581,011 2.49 later, if necessary, but everybody experienced in railroad
Western Pacific RR. Co_ 1,050.59
what a scramble ensues to "dig in" wherever advantageous, if this much
K kg
Aq Agg 1MA
RAG, AAA nn,
lo nnn al 1 'AO gMA lAg
has been attained.
In short, undiplomatic as it may seem to say so, I can not avoid the
a Book value. 'Denotes red.
conclusion that the commission's activities for almost a decade under the
Confident that the suggestions I have made in this concurrence are worthy
act of 1920 with reference to consolidation has been characterized rather
consideration, particularly when applications shall be made, looking to the
by economic philandering than by statesmanship. Had they taken hold
effectuation of consolidation, I submit that competition will be largely pre- of
the problem manfully, and by that I do not mean rudely disturbing
served. Present routes and channels of trade will be left undisturbed, and existing relationships, but diplomatically, much might already have been
that the systems proposed are fairly well balanced in those necessary
elements that go to make up an adequate system of transportation.
I have not the slightest sympathy with the attitude that such a plan as
this is only a formality to be disposed of because the law requires it. Had
By the Commission.
the commission proceeded diplomatically, yet aggressively, as Willard,
GEORGE B. McGINTY, Secretary.
for example, has done on the Baltimore & Ohio, or the Van Sweringens for
the Chesapeake & Ohio, much might already have been accomplished.
and that, too, without too greatly upsetting established relationships.
Professor Ripley Declares Rail Plan Faulty—Terms
These criticisms are offered with a knowledge of the almost insuperable
obstacles which must have obstructed the commission within its
Proposal "Startling and Disconcerting."
membership in reaching any conclusion.
A special dispatch to the New York "Times"from Boston,
This body is one of the most powerful administrative agencies in our
body of
Dec. 22,states that Professor William Z. Ripley, of Harvard, national life, bearing perhaps the heaviest burden of any time andmen in
attenWashington. No one familiar with the pressure upon its
the railroad expert who drew the preliminary drafts of the tion could fail to recognize the merit of their achievement.
Inter-State Commerce Commission's national consolidation
But, nevertheless, one cannot but wish that it had throughout adopted
a more vigorous and statesmanlike policy in directing the course of this

Railway Net Railway Rate
Operating Operating
Income. Return
Dec. 31 1928. Revenues.

plan in 1921, characterized the plans as announced by
the Commission in Washington, "startling and disconcert- great by a vigorous attitude on the part of the commission can the conOnly
out without solidation be guided along the right channel in the public interest.
ing." Apparently, he added, they were worked
consideration to the cardinally important points of "operating
efficiency and financial equality in strength." In short, Comments from Heads of Railroads Involved in Comundiplomatic as it may seem to say so," Professor Ripley's
mission's Proposed Consolidation Plan.
statement said, "I cannot avoid the conclusion that the
Comments from the heads of railroads involved in the
Commission, for almost a decade under the Act of 1920 I.
-S. C. Commission's proposed consolidation plan as
with reference to consolidation, has been characterized reported in the "Herald Tribune" Dec. 23, follow:
rather by economic philandering than by statesmanship."
Leonor F. Loree, President of the Delaware & Hudson says:
He criticized as "inconceivable" the proposal to make an
The solution of the problem by the Inter-State Commerce Commission
even-handed competitor to the Pennsylvania, New York was impelled largely by political considerations rather than by transportspolitical basis.
Central, Baltimore & Ohio and Van Sweringen systems out tion considerations, and will Hudson isbe worked out on a substantially
concerned, it remains
So far as the Delaware &
of the Wabash, "which is a string line anyway," bolstered as it is now, and so the plan does not affect us to any great extent.
by the "subnormal" Chesapeake & Ohio of Indiana line,
Patrick E. Crowley, President of New York Central said:
and even the prosperous Lehigh Valley. He characterized
I have not completed my study ofthe Inter-State Commerce Commission's
it as an attempt to build a "trunk line on a shaky stem."
plan, and I would rather say nothing about it as yet. In several days a
Professor Ripley's statement as reported by the "Times'. statement will be issued from my office in the usual way.
E. G. Buckland, Chairman of the New Haven RR.said:
is as follows:

Our road is left largely as it is now with the exception of the addition
The plan is to me decidedly startling and disconcerting because it does
as comment on
not seem to be worked out either on a basis of operating efficiency or financial of two small roads across the Hudson River. In so far
the rest of the plan is concerned. I would prefer not to make it, as I am
equality in strength.
The ideal was that a condition should be brought about under which familiar enough with the other roads affected.
there should be, as far as possible, even-handed competition at as many
L. W. Baldwin, President of the Missouri Pacific said:
points as possible. Everybody knows that competition, not for rates but
Although the plan is yet merely tentative, I believe it is as good a plan
In service, produces results which are of great public interest. You cannot
beneficial to the rail service of the
have effective competition except between substantial equals. A race as can be evolved and would prove
entire nation. I believe the plan would increase the volume of business of
between an eagle and a turtle is no race at all.
The principle does not seem to have been embodied in the plan. It is all railroads.
Inconceivable, for instance, that the Wabash, which Is a string-line anyway,
Paul Shoup, President of the Southern Pacific said:
with nothing but trackage rights east of Detroit, by being pieced together
The Southern Pacific Co. Is not materially affected by the Inter-State
line, itself subnormal,and even with
with the Chesapeake & Ohio of Indiana
Commerce Commission's plan. I have read only a very general outline
the prosperous Lehigh Valley into New York, could be built into anything
of the plan in the papers. I have not had time to study the plan and so
like an even-handed competitor with the powerful Pennsylvania, New York
have no statement to make at this time.
Central, Baltimore & Ohio and Van Sweringen system. It would be a
pigmy among giants.
Ralph Budd, President of the Great Northern said:
Furthermore, the very lines allocated to it east of Toledo are, in various
The grouping plan proposed by the Inter-State Commerce Commission
ways, of the utmost importance for incorporation in the existing big systems establishing a limited number of railroad systems seems to foreshadow a
in order to give them relief, by a short line, from the roundabout routes decision in the unification of the Great Northern and Northern Pacific
they now have to follow. The New York Central, for example, must go railways which will impose as a condition of that unification the sale of
up to Albany before it goes West and the Baltimore & Ohio down to the Burlington stock owned by the two Northern lines.
This is such a major undertaking that it would be impossible to express
To create a fifth trunk line on a shaky stem would be bad enough for this any opinion at this juncture. Such a separation may be possible and
reason, but another sin, in my judgment, is committed when they tack there IS no question but that the officers and directors of the two Northern
onto this fifth system a property which, at least until recently, has been lines will give very careful consideration to any suggestion that may be
subnormal financially—the Seaboard Air Line.
made by the Inter-State Commerce Commission, with a view of making
This brings us to another characteristic of the plan which seems to me their recommendations to the stockholders.
radically unwise. Some of these new "paper-made" systems, like this
It should be understood clearly that the Inter-State Commerce Comone. sprawl over trunk line territory—Western territory out to Kansas mission does not propose to take away the Burlington from the Northerns
down to Southern Florida.
City, and Southern territory
without full compensations for its value nor without full consent of the
Thus its fate is involved with the rate schedules in three entirely distinct Northerns. In other words, if the Northerns do not find it advisable or
territories—trunk line. Western and Southeastern. Each of these regions possible to sell the Burlington, they would be left in undisturbed posseshas a rate system peculiar to itself, and tariffs have to be constructed for sion of it.
each region in accordance with its needs and practices. How is the business
Charles Donnelly, President of the Northern Pacific said:
of one system going to be handled statistically to ascertain whether rates
Without having seen the text of the Commission's report accompanying
are properly adjusted to conditions everywhere? I believe that a cardinal
principle should be to confine each system to a definite rate territory, even if its plan of railroad consolidation. I do not wish to comment on the
of the plan. It appears, however, that the Northern lines are grouped
it takes time to bring it about.
together and that the Burlington is made the nucleus of a separate and inThis principle, however, seems to be substantially disregarded in th
Northern lines, of
plan. New England roads are projected into trunk line territory. The dependent group. The pending application of the
Burlington. and it
Illinois Central is extended far to the north and into the Southwest. The course, contemplates our continued ownership of the
foreshadows an unfavorBurlington reaches from Canada to Mexico, Mobile & Ohio, way down, may be said, therefore, that the plan announced
decision on that specific
by the Gulf is tied in with the Chicago & Northwestern. And so it goes, able decision on that application. Until the
examined and studied, it
disregarding the boundaries which with more and more distinctness have application is rendered, however, and the text
would be premature to anticipate or discuss it.
been set to these rate adjustment territor!Js.



It has been rumored for some time that the Commission might allow
the consolidation or unification of the Northern lines, provided they gave
Up ownership of the Burlington, and the possibility of our having to face
such a situation has, therefore, been recognized. The plan will, of course,
be carefully considered by the deposit committee, consisting of J. P.
Morgan, George F. Baker, Arthur Curtiss James, L. W. Hill and Stephen
Birch, and will, of course, come up for consideration before the Northern
Pacific board of directors at its meeting. Beyond this I do not think it
advisable to make any comment at this time.

W. B. Storey, President of the Atchison Topeka & Santa
Fe said:
I have seen nothing on the proposed consolidation beyond the press
eports and those are rather vague as to details. I am not quite familiar
with the projected Eastern consolidation, comprising some four or five
roads—at least not to the point of commenting on it.
It appears from the newspaper accounts that the changes, suggested for
the Western roads, such as the Chicago & Northwestern, the Union and
the Southern Pacific, comprise extensions to the Gulf rather than in east
and west service. It would be premature, however, to speculate on these
Points until the full details of the plan have been digested.

Frederick E. Williamson, President of the Chicago Burlington & Quincy, said:
The consolidation plan announced by the Inter-State Commerce Commission will require a great deal of study before we feel we can make a
statement. I have received nothing official as yet all I know of the project is what I learned from press reports.

Henry S. Scandrett, President of the Chicago Milwaukee &
St. Paul said:
It would be foolish for me to express myself on the proposal until I
have the detailed information before me and have had a chance to study it.
The newspapers told the story in a general way, but they did not give
enough of the details to make comment at this time possible.

George B. Elliott, President of the Atlantic Coast Line
Since I have not yet seen the complete proposal made by the Inter-State
Commerce Commission it 18 impossible for me to form any opinion as to
what effect the consolidation proposed by the Commerce Commission
would be. Of course this proposal has been expected for some time,
but since I am not familiar with all the angles of the proposed plan I do not
feel that I am in a position to comment upon it.


(VOL. 129.

consolidation as something more than a mere allocation of eixisting tracks
o existing railroad corporations. In our opinion consolidation should be
effected In such a manner as to create new routes, new gateways, and a
greater degree of healthy competition. The Commission has taken a constructive view of the problem.
The proposed Wabash System will extend from the Atlantic seaboard to
the Missouri River and it will serve some of the largest terminal areas in
the United States, including New York, Newark, Baltimore, Norfolk,
Buffalo, Chicago, Cincinnati, Cleveland, Pittsburgh, Detroit, Toledo,
Milwaukee, St. Louis, Kansas City, Des Moines and Omaha. It is strategically located.
It connects the large industrial districts with important coal fields, the
Atlantic seaboard and the important gateways to the West; it connects the
Iron and steel and the rubber producing territories with the automobile
manufacturing centers; it reaches the Northwest through Chicago and the
car ferry routes across Lake Michigan; and will serve the West and Southwest through the important gateways of St. Louis, Kansas City. Hannibal
and Peoria, while the primary grain markets at Chicago, Kansas City,
Omaha and Des Moines will secure a one-line route to the Atlantic seaboard;
and North Carolina, South Carolina, Georgia, Florida and Alabama will
have a one-line route to New York, Pittsburgh, Cleveland, Detroit and
other important markets for Southern products.
It gives New England an additional route to the West as compared with
the so-called Four Party Plan.
It makes possible a substantial improvement in transportation service
by offering a new competitive route from Toledo, Cleveland and Pittsburgh
to New York; an interior route for Norfolk & Western coal to New England,
by-passing New York and Philadelphia; it paves the way for a new singleline route from the East to Milwaukee, it provides for the first time a oneline route from Norfolk & Western territory to the Great Lakes; it gives
Baltimore a third trunk line; it offers the possibility of through passenger
service from New York to Kansas City.

Terminals an Issue in Rail Union Plan—Opposition of
Roads to This Phase of Proposal is Indicated.
According to the New York "Times" of Dec. 23, the
proposal of the 1.-S. C. Commission in its consolidation
plan to unify all terminal lines will meet with opposition by
the railroads. The "Times" says:

P. E. Crowley, President of the New York Central, asserted that the
matter of the terminals was an important part of the Commission's report,
but said from the study he had given the report he could not determine
Carl R. Gray, President of the Union Pacific said:
exactly what the intent of the Commission was in this respect. Leonor F.
"Very interesting, but I have nothing to say," was the comment of Carl Loree, President of the Delaware
& Hudson Co., was outspoken inlhis
R. Gray, President of the Union Pacific, on the proposed railroad consoli- condemnation of this feature
of the report.
dation. Mr. Gray absolutely refused to express an opinion on the combinaMr. Loree, whose idea of a fifth trunk line was adopted, said he did
tion as it would affect Union Pacific or any other railroad.
not think the Commission's plan ran counter to his proposal to build s
new line to Chicago across Pennsylvania. He said also that the proposal
of the Commission to link his road with the Boston & Maine was logical.
Views of Chief Executives of St. Louis-San Francisco, Mr. Loree has petitioned the Commission to approve a belt line into which
Missouri-Kansas-Texas and St. Louis Southwest- he would merge seventeen Eastern roads. He admitted the Commission's
plan left no place for such a line.
Executives of the Chesapeake & Ohio or Van Sweringen, group of lines,
it was learned, also intend to study closely the proposal of the CommisThe New York "Times," Dec. 22, had the following:
J.M.Kum President of the St. Louis-San Francisco Co.,spoke favorably sion for unification of terminals.
In its report the Conunission enumerated nineteen groups into which it
to-day of that portion of the Inter-State Commerce Commission's consolidawould assemble the railroads of the United States and concluded with a
tion plan providing for a Frisco-Rock Island system.
list of terminal lines. It was not made clear in the report whether these
"The Frisco has for some time looked with favor upon a consolidation
with the Rock Island," he said. "We have acquired considerable Rock were the only terminal lines to be mutualized or whether, in the case of
Island stock and believe such a consolidation is a most logical step. The New York. for example, it was the Intent of the Commission that the
facilities of the New York Central or vice versa.
two roads are not competing lines and taken together, would create a Pennsylvania would use the
Another part of the plan which will provoke wide discussion among
system of 14,000 miles, serving the Southeast, the Middle West, the South-and-west lines with north-andrailroad executives is the linking of east
west and the North Central part of the country.
Loree said this factor "had no transportation significance'
"The only competition which exists is in Kansas and Oklahoma, and this south linos. Mr.
"In the case of the Kansas City Southern," said Mr. Lome, who is
Is so insignificant that it doesn t amount to anythings I believe the two
roads would be in a much better position to serve their territories if they Chairman of that road, "there is about 50% more northward traffic than
were consolidated along the lines suggested by the Inter-State Commerce southward traffic. The Commission proposes to put the Kansas City
Southern into the Union Pacific, although little of this northward traffic
goes over the latter road now.
Columbus Halle. President of the Missouri
-Kansas-Texas lines, said his
"The only purpose of railroad consolidation Is to prepare in advance for
company had never considered or contemplated such a consolidation as that
the transportation of the future. Any combination of roads should be
of the Katy to the Burlington.
"I am unprepared to say at this time just how the stockholders would arranged on this principle. I don't see that the Commission gave any
weight to this consideration in combining east-and-west with north-andlook upon it," he added. "The only consolidation plans in which the Katy
south roads.
has been involved was the proposed merger with the Kansas City Southern
"The proposal to make terminals common property would be more
and St. Louis Southwestern. This was later withdrawn and the plans fell
Proper to a paternalistic than an individualistic government. In a period
through. Before expressing any opinion on an alignment with the Burling- of
80 years, the Pennsylvania has built up a terminal system around Philaton, we must take into consideration the new conditions which would
delphia of great magnitude. I don't understand how any road that has
surround us and to which we would be compelled to adjust ourselves."
built itself a dominant terminal position can be made to relinquish it.
Daniel Upthegrove, president of the St. Louis Southwestern, had no com"What is railroad property? Is it unlike other property that it may be
ment to make until he had read the full decision and studied its various
apportioned without regard to the wishes of its owners? Can this property
be made into a present to be given to other interests?
"The proposal to link the Delaware & Hudson with the Boston & Maine
Statement of William H. Williams, Chairman of the seems logical. 65% of the traffic sent west of the Hudson by the B. & M.
Board and Executive Committee, Wabash Rail- is exchanged with us. The fact that the Commission has labeled such a
combination a Boston & Maine group does not mean that the D. & H.
way Company.
would be submerged in that railroad.
Commenting upon the Consolidation Plan of the 1.-S. C. "The plan does not preclude the building of the New York Pittsburgh
& Chicago in accordance with the plan now before the Commission. RegardCommission, Mr. Williams said:
less of the plan, there is still the necessity to connect the 12,000,000 People
The creation of more than four railway systems in Eastern territory In twelve mid-Western States with the 40,000,000 people in the NorthIs in the public interest.
eastern States through the barrier of the Alleghenies. Such a connection
The Transportation Act provides for competitive routes and for a more would be provided by my line, which would have a maximum grade
the country. We have looked upon the mountains 650 feet lower than'hat of the Pennsylvania."
adequate transportation plan for

Indications of Business Activity
Friday Night, Dec. 27 1929.
In some departments business has been quiet owing to
bad weather and in others has reached a fair volume. It is
noticeable however, that the demand is largely for the cheaper
goods. There is no use blinking that fact. The holiday
business however, is admittedly as large as that of last
year, except in the high priced goods. Trade has been

hampered to some extent in recent weeks by great storms
which swept over the whole country, as indeed they have
over large tracts of the globe. As usual at this time of the
year wholesale and jobbing trade is relatively small. There
are the usual shutdowns in industry at the holidays and
perhaps indeed in some cases, notably in the cotton textile
trades, they are for a little longer periods than usual. Still
they are not really very significant. In any case it is a time

DEC. 281929.]



for taking inventories. As to cotton goods however, there the North and the West. Heavy damage to public utilities
has been a larger business at some advance in.prices, notably occurred. Bad weather naturally helped sales of winter
for print cloths. Sales have been made for shipment as far footwear and winter clothing. Severe weather has stimuahead as June. And the tone in Worth Street is more cheer- lated the demand for coal, and at the same time caused
ful. Woolens and worsted, as well as silk piece goods, have shutdowns in numerous mines especially in Eastern Kenbeen quiet as usual at this time of the year. Raw silk has tucky and Southern Illinois. Southern California still
been quiet and steady. Wool has been in fair demand and the needs rain, although Northern and Central Pacific Coast
sales of finer grades of Western wool have increased some- regions have been benefitted by rains which have also stimuwhat while the tone has been rather firmer. Car loadings lated trade. Florida has had freezing weather. What
for the year are 2.7% larger than in 1928 and 2.3% larger the damage has been if any is at the moment uncertain.
than in 1927 though a little below those of 1926. On the Finally it is a fact that the feeling is more hopeful as to the
whole the exhibit is gratifying. Steel scrap is reported outlook for general trade in the United States during the year
higher, and some reports state that Southern iron has ad- about to open.
vanced somewhat. The feeling in the iron trade is rather
The stock market to-day advanced for a time and then
better. Steel has naturally been rather quiet, but there has weakened a little towards the close, with money 6% and
been some demand from automobile interests. Large struc- gold exports still under way. Brokers' loans fell off about
tural awards have been made.
$58,000,000. The loan total is now the smallest in over
Wheat has advanced 8 to 9 cents under the stimulus of three yrars. It shows a decrease from the high point last
unfavorable crop reports from Argentina and reports that fall of 50%. The period of weekly decreases in brokers'
Western co-operatives are inclined to take the aggressive loans is unprecedentedly long. The peak was reached in
with bids of $1.13 for No. 2 hard at Omaha and $1.15 for the week ending Oct. 2,with very few;interruptions the loans
No. 1 hard. On one day the export sales were estimated at have been dropping for about three months. On nearly
3,000,000 to 4,000,000 bushels. There is a growing belief 50 roads in class I the net operating:income for November
that Europe will have to buy American wheat on a larger was about 26% smaller than in the same month last year.
scale. Corn has advanced only slightly, for the crop move- Three bright exceptions were the Atchison, the Delaware
ment has been larger and of late the cash demand has fallen & Hudson and the Virginian. The sales of stocks to-day
off somewhat. Other grain has advanced in response to the were 3,353,840 shares, or about 2,100,000 less than a week
rise in wheat. December wheat closed to-day at 1.25c., ago and 1,400,000 less than on this day last year. Car
March at 1.303 and May 1.343(c. these prices being 12 to loadings are smaller than a year ago but are larger than at
14 c. higher than a year ago. December corn closed to-day this time in 1927. As a wholeItrade and industry despite
at 903/2c. and March at 933/2c. These prices are 5c. higher some exceptions here and there has established new high
than a year ago. December oats ended to-day at 47, March records for the year 1929 and there is a more hopeful feeling
at 483e., and May at 493/20. December is 13/2e. lower than in business generally throughout the United States. The
a year ago, but March and May are 1 to 13/2e. higher than sober second thought counts for a good deal. A decline,
then. December rye ended to-day at 1.053/2, March at even a bad decline, in the stock market last autumn is no
1.045 c. and May at 1.04c. December is 3c. higher than reason why trade in the United States should be prostrated,
a year ago, March unchanged and May 43/20. lower. Pro- with the recognized recuperative powers of this country.
visions have declined somewhat, with no urgency in the
At Fall River, Mass: holiday curtailment was announced
as follows: American Printing Co., cotton division closed for
Coffee early in the week advanced nearly 100 points on two weeks; Kerr Thread Mills, closed until Dec. 26; Shove
Santos in an oversold market, and under the stimulus also Mills closed Dec. 24 for two weeks; King Philip Mills and
of stronger cables from Brazil, both as to coffee and the Firestone Cotton Mills close Tuesday the 24th for the rest
rates of exchange. Santos coffee has been the conspicuous of the week. Fall River, Mass. wired that the Cape Cod
item. Rio coffee has lagged behind. The latest from Shirt Mill will be operated steadily in 1930 with no reduction
Brazil is that the Brazilian Senate has authorized the govern- in wages. Newberry, S. C. wired that the Newberry Mills
ment to secure a loan of £12,000,000. But later in the observed Christmas holidays by closing at noon Saturday
week came a sharp reaction in coffee here, prices falling 50 Dec. 21 and will resume operations Monday, Dec. 30. At
to 75 points on December, Santos and Rio. The trouble Manchester, N. H.,last week the Great Falls Manufacturing
with the coffee market of course is that production has been Co. stock which at one time sold at as high as $250, sold at
stimulated by artificial prices which the Brazilian Defense 15e. a share at public auction in Boston. Nashville, Tenn.,
Committee has sought to maintain. The Nemesis is larger wired that the du Pont Rayon's Old Hickory plant will shut
crops and in the end lower prices, even if it takes three years down completely until it is fitted up to make rayon out of
or more for a coffee tree to begin bearing. No. 7 Rio is 9c. cotton linters instead of wool pulp, thereby it is said improvlower than a year ago. Sugar has not changed much during ing the quality.
a quiet week, but the tone on the whole has been firmer at
Manchester, England reported trade as usual unsettled
a trifling advance. It remains to be seen how Cuba will because of the holidays and merchants are disturbed by the
make out with its scheme to dominate the market irre- situation abroad. Rather higher prices for cotton are
spective of the law of supply and demand. Raw sugar welcomed, but spinners requirements remain small. Only
delivered is Mc.lower than a year ago. It will be of interest scattered sales have been made to Egypt and South America.
to see how far the Farm Board fares in the end in establishing Many weaving sheds extended their usual holidays in adprices by the sheer weight of millions of capital. There are dition to spinning mills. There is a fear in Lancashire that
those who believe that larger crops of wheat will in the end India may boycott British goods in the political agitation
teach the same lessons as larger crops of coffee, sugar and against Great Britain. London cabled Dec. 22: "The
rubber have taught in these several branches of trade. Pro- Lancashire Cotton Corporation, consisting of 71 companies
duction is stimulated and prices in the end drop. Rubber controllingjanIactual 6,750,000 spindles and 20,000 looms,
has been rather irregular during the past week with light has accepted offers made for the absorption of 45 other
trading and no marked net changes in prices.
companies. Negotiations are now in progress. It is exCotton has advanced some 35 to 40 points under the spur pected that the corporation will soon control 10,000,000
of a good trade demand and a better technical position. spindles."
Also larger sales of print cloths at times have not been withA more cheerful feeling has appeared in the automobile
out their effect. Neither have advances of five cents in a industry and present indications are that the trade is beday in wheat and higher markets for stocks. The point, ginning to turn the corner.
too, is that there is believed to be a large hedge short inOn the 21st inst. the temperature here was 22 to 32 with
terest in cotton and that many of the mills are carrying small a high wind until after nightfall. Boston also had 22 to 32;
stocks of the raw material. Moreover it is believed that Albany, N. Y., 22 to 28; Chicago, 6 to 18; Cincinnati, 10
something like 25% of the crop is untenderable on con- to 22; Cleveland, 12 to 20; Detroit, 8 to 22; Galveston, 30
tracts. It is suspected indeed that taken as a whole this is to 34; Jacksonville, 30 to 46; Kansas City, 10 to 22; Mila relatively low grade crop which will mean that the wastage waukee, 6 to 20; Minneapolis, zero to 6 above; Montreal,
in manufacturing goods will be all the greater. Spot cotton 10 to 18; New Orleans, 32 to 38; Oklahoma City, 16 to 32;
here is 33c. lower than a year ago. Hides this week have Omaha,6 to 14; Philadelphia, 24 to 34; Savannah, 30 to 46;
declined somewhat.
Seattle, 36 to 48; St. Louis, 12 to 24; Winnipeg, 10 below to
Trade at the West and South was more or less hampered 4 above. Northern New York was hard hit on the 21st
by snow and freexing weather which penetrated to the Gulf inst. by another snow storm of one foot, which stopped
of Mexico. Impassable country roads also interfered in automobile traffic and delayed trains, including the Twen-



tieth Century Limited of the New York Central Lines as
much as 10 hours. The Central West was digging itself out
from snow drifts and rescuing persons marooned by the last
storm. Stoppage of delivery service caused a milk famine
in Detroit. One hardship was the non-delivery of coal. The
Southern States suffered from cold and snow. Southern
California was swept by a sandstorm which blocked highways and blew down lemon and orange trees. Here incoming
trains on the New York Central were from 6 to 10 hours late
and in the Pennsylvania Railroad five hours late.
It snowed here for a time on the morning of the 23rd inst.
but the fall was light, and later it turned to rain. The temperatures were 25 to 33 degrees. There were many accidents.
Seven barges broke away from tugs in the bay. Hillsboro,
Tex. had a snow fall last week of 26 inches; a little of it had
melted by the 23rd inst. El Dorado, Ark. had 17 inches and
Shreveport 16. The temperatures at the West were rising on
the 23rd but Boston had 12 to 34 degrees, Albany 8 to 18,
Baltimore 28 to 32, Chicago 22 to 28, Cincinnati 16 to 22,
Cleveland 22 to 32, Detroit 16 to 26, Galveston 30 to 42,
Kansas City 12 to 38, Milwaukee 22 to 28, St. Paul 4 below
to 20 above, Montreal 4 below to 6 above, New Orleans 30
to 40 above, Oklahoma City 20 to 44, Omaha 8 to 32, Philo,delphia 26 to 38, Portland, Me.2 to 12; Portland, Ore. 48 to
54, SanAntonio 24 to 50, San Francisco 48 to 54, Savannah
36 to 42, Seattle 44 to 52, St. Louis 16 to 28, Winnipeg 2 to
22. •Later in the week it was cold here.
To-day it was 28 to 35 degrees here. The forecast is fair
and colder. At Boston overnight it was 34 to 42; Montreal,
30 to 38; Philadelphia, 36 to 40; Chicago, 38 to 42; Cincinnati, 42 to 48; Cleveland, 40 to 48; Detroit, 34 to 40; Milwaukee, 36 to 40; Kansas City, 36 to 56; St. Paul, 18 to 44;
Oklahoma City, 34 to 62; St. Louis, 40 to 56; Winnipeg, 2
to 22; San Francisco, 46 to 60; Seattle, 44 to 50. Kansas
City wired to-day to the Associated Press "Rushing from one
extreme to another, the weather gods of the lower middle
West have replaced the blizzard conditions of last week with
record high temperatures for this season. Throughout the
southern half of the central States the mercury hung well up
in the sixties yesterday and in Arkansas, Texas, Kansas and
Oklahoma, visited only a few days ago by zero temperatures,
the readings were as high as 70 degrees."
Trade and Industry In United States as Viewed By
Statisticians In Industry Operating Under Auspices
of National Industrial Conference Board—Finds
Present Situation Indicating Early Recovery.
Business activity during November has shown hesitation
in basic Industries throughout the country, but to far less a
degree than might reasonably have been expected for the
month following the stock market collapse, and various
strong factors in the present situation seem to indicate an
early recovery. That, in brief, is the consensus of the Conference of Statisticians in Industry, operating under the
auspices of the National Industrial Conference Board, 247
Park Avenue, in their December report on business conditions, made available Dec. 22.
Retail trade during November has been holding up well,
says the Board. Department store sales in November were
about the same in volume as in the same month a year ago,
Increased sales in Southern and Western cities offsetting
decreases in other sections.
The Board notes that automobile production was sharply
reduced during November, total production for that month
being 16.5% less than during the corresponding month a
year ago. New !registrations of cars for the first 10 months
of the year, however, were more than for the entire year
The daily average production of steel ingots in November
was 19.1% lower than In October, but total production for
the year is estimated to exceed that of the previous record
year, 1923. Unfilled orders of the United States Steel
Corp. increased for the fourth consecutive month. Employment in the metal trades declined by about 6% during
the month, according to the National Metal Trades Association index, based on reports from plants in 26 cities. Newspaper advertising during November, the Board states, was
about the same in volume as for the same month a year ago,
but the total for the first 11 months of the year exceeded
that for the same period of the previous year by 4%.
Periodical advertising increased by 8%, and advertising
budgets for 1930 are reported in excess of those of the
current year.

[VOL. 129.

The full text of the Conference report follows:
Reports of conditions in basic industries throughout the country indicated
some falling off in November from October levels and not infrequently
lower levels than in November a year ago. There is evidence throughout
that without stopping, business has hesitated. The degree of hesitation
indicated by the figures is far less than the alarmists would have led the
public to expect, and there are strong factors in the present situation which
seem to promise an early recovery from uncertainty and hesitation.
Automobiles, Rubber, Petroleum.
Sharp curtailment of motor vehicle production in November to an output
of 226,887 units has tended to prevent a further increase in inventories of
new automobiles. November declined 42.5% under October and 15.5%
under November last year. New registrations of passenger cars in October
were 5% lower than September, but 1.4% higher than October last year.
Truck registrations in October, on the other hand, showed an increase of 7%
over September and 22% over October 1928. New registrations during the
first 10 months this year were larger than the full year 1928-422,835
increase for passenger cars, and 128,568 gain for trucks. Foreign sales in
October were slightly lower than September and 18% under October last
year. Sales abroad in the first 10 months this year showed a gain of 15%
for passenger cars and 82% for trucks compared with the corresponding
months last year.
Estimated consumption of crude rubber of all classes by United Statett
manufacturers in November was 20.5% less than in October and 26.2%
less than in November 1928. For the first 11 months of this year estimated
consumption was 8.8% greater than in the same months of 1928. November
imports of crude rubber were estimated at 7.1% less than in October and
17.0% more than in November 1928. For the first llmonths of 1929
estimates of imports were 29.6% greater than in the same period a year ago.
Estimated domestic stocks on Nov. 30 were 4.2% greater than on Oct. 31.
Production of pneumatic casings for the first 10 months of this year
showed a very slight increase of 0.3% over the same period a year ago.
Shipments for the same period exceed production by approximately 1.0%.
It is now possible to say that the supply of crude oil in the United States
has been curtailed to approximate equilibrium with current refinery demand.
This has been in part fulfillment of the expressed recommendation of the
Federal Oil Conservative Board that the industry itself take steps to conserve
the petroleum supply. It is pointed out, however, that the refinery demand
for crude oil in 1929 has been inflated and that gasoline has been overproduced by approximately 8,000,000 barrels, resulting in accumulated
stocks which must be liquidated in 1930. In the petroleum industry a
condition of gasoline over-production is recognized as existing and is
promising to grow more serious and acute if the supply of this commodity
is not promptly and substantially curtailed, and the first quarter of 1930
is regarded as a particularly critical period during which gasoline stocks
threaten to mount to uneconomic and unsound levels. Unless the market
expands beyond what may reasonably be expected or unless refiners restrict
production, the continued conversion of crude oil into gasoline at too rapid
a rate would nullify the effects of the curtailment, already accomplished,
in the supply of crude oil.
Iron and Steel, Machine Tools and Other Metal Products, Non-ferrous Metals.
Shipments of Lake Superior iron ore during 1929, including both water
and rail deliveries, were the largest for any year except 1916. Water
shipments in 1929 were larger than in 1916, but rail shipments were much
smaller and the total of both fell about 700,000 tons short of the 1916
total of 66,672,881 tons. In the past decade, according to "Iron Age,"
only one year, 1923, showed shipments of more than sixty million tons.
The tonnage of ore on hand at furnaces and Lake Erie docks on Nov. 1 was
4% greater than one year previous.
The daily average production of coke pig iron in November declined 8.3%
from the October rate and, for the first time this year, monthly production
was less than for the corresponding month of last year. From the high
point reached last May, the average daily rate has declined steadily each
month. However, the total production this year, even with a year-end
decrease, will probably exceed the total production for the last record year,
1923. From the end of October to the end of November there was a net
loss of 26 active blast furnaces, which was considered a fairly heavy
curtailment. Many of the furnaces were reported to have been blown
out towards the close of November, and decreased production is to be
expected in December.
The average daily production of steel ingots reached the high point of
the year in May, since which time the trend has been downward, the
drop from October to November being 19.1%. From the examination of
data it seems clear that the usual course of steel production in November
as compared with October is downward except under abnormal conditions.
The average decline for the past three years has been 6.5%. The European
steel cartel is reported to have ordered reduced operations of all members
about 10% until Jan. 1. Hence, the American steel industry would seem
to have taken due precaution to prevent an over-accumulation of stocks.
Unfilled orders of the United States Steel Corp. at the end of November
showed an increase for the fourth consecutive month.
The November index of gross orders for machine tools was less than in
the preceding month of November 1928. Unfilled orders are expected to
carry business along into the new year.
The index of metal trades employment, made by the National Metal
Trades Association, in November declined 6.3% from October. The
figure for November represents an increase of 3.0% over November 1928.
Employment declined in 24 of the 26 cities supplying this body of data and
in 29 of the 32 cities that all material of the Association covers. In only
one area, the Tr -City region (Moline, Rock Island, and Davenport), where
the agricultural implement industry holds sway, was there any appreciable
increase in employment, while large declines featured other small cities.
The large cities Showed much more steadiness.
In the railroad equipment field during November there was some falling
off in freight car carders and unfilled orders for locomotives from the
October level, which, however, was exceptionally •high. Expansion of
railway equipment production depends in high degree upon the general
situation of the carriers. During the first 10 months of this year the net
railway operating income of Class I railroads, as reported by "Railway
Age," was at the annual rate of return of 5.2% on their property investment, compared with 4.7 last year. During October the net railway
operating income was at the rate of 4.6% per annum compared with 5.1%
in October a year ago. Capital expenditures this year are said to be close
to the annual average of the past six years. After the stock market collapse,
from which they feared a recession of consumption and of traffic earnings,
railroads were expected to hold up the making of a large number o/ contracts for construction and improvements, but these contracts were made
immediately effective when the executives accepted from President Hoover

DEC. 28 19291



portion of it represented by the producers and distributors of coal, was
favored by the weather man with a rather unusually prolonged spell of
Indian summer and the thermometrical record was registered by the production and shipments of anthracite, the shipments for the month as
reported by the carriers to the Anthracite Bureau of Information showing
a drop from 6,477,729 gross tons in October to 4,615,464 tons in November,
a decrease of 1,862,285 tons, or nearly 30%. The coal men were favored
in October, which was marked by several ccild snaps, miners had practically
full working time, and the shipments were, with one exception, the largest
in three years. December opened auspiciously with subnormal temperatures, the effect of which was quickly reflected at the collieries, and if
the predictions for an "old fashioned winter" are realized, there is every
reason to believe that by the end of the coal year on Mar. 31 1930 the
produotion will have equalled if not exceeded that of the preceding year,
and the anthracite industry join in the march of prosperity, arrangements
for which are now in the making.
Electric Power Production.
Evidences of a further recession of industrial activity were indicated by
the November figures for electric power production as reported by the
Building Construction, Lumber and Cement.
National Electric Light Association. While the output of electricity for
The November record of construction contracts awarded in the 37 States the country as a whole still showed a substantial gain over the same
east of the Rocky Mountains and including about 91% of the total con- period of 1928, for the first time this year this increase fell below the
struction volume of the country, amounted to $391,012,500, as reported by figure of normal growth as determined from past experience.
Analyzed according to the various economic regions of the country, these
the F. IV. Dodge Corp. This total represents a continuation of the
declining trend which has prevailed throughout this year. From five to figures revealed significant trends. As a general rule, those regions which
seven months usually elapse following a reversal of interest rates before the gave evidence of the greatest increase in industrial activity during the
effect becomes evident in the volume of contracts awarded. November past twelve months are the ones which showed the largest relative decline;
was 17% below November 1928, whereas October was 25% below October th regions devoted primarily to agriculture and to related products showed
1928. The average volume of weekly contracts for heavy engineering con- a smaller decrease; while the centers of commerce and trade, as distinguished
struction for the Whole United States dropped 10% in November from from manufacture, showed, as yet, but little evidence of any marked business
October, which was less than the normal decrease.
According to the output of electricity, business in New England and
For the four weeks ended Nov. 30, shipments of lumber as reported
by approximately 820 mills to the National Lumber Manufacturers' Associa- the North Atlantic seaboard continued at very nearly the same active
tion were 14% below the production of these mills, and orders received levels that have prevailed throughout the late summer and, while some
were 20% below production. For the year to date, aggregate lumber ship- slackening was indicated in the South, its industry and trade still conments were 2% below production and orders received were 3% below. tinued at satisfactory rates.
In the Middle West, however, throughout the greater part of the region
Stocks on hand Nov. 30 1929, as reported by 335 representative mills,
were 8.4% above stocks on hand at the same mills on Nov. 30 1928; between the Alleghenies and the Missouri River, a sharp decline in industrial
production appeared to have taken place. While this is especially prounfilled orders were 11.2% below those on the similar date of last year.
The production of Portland cement in November declined, as compared nounced in the centers where the automotive industry, together with the
with the month earlier, 16.1%, a decrease which was in part seasonal. production of steel and allied products which enter into its manufacture
For the first 11 months of this year total production was 3.0% less than Predominate, the decrease in the use of industrial power would seem to
in the same months of 1928 but last year was a record year in Portland indicate an extension of curtailment into many other lines of heavy
cement production. Shipments in November were 40.1% less than in manufacture.
The Rocky Mountain region showed a further drop in the output of elecOctober and 6.2% less than in November a year ago. Stocks at the end
of November were 18.4% greater than at the end of October and 2.5% tricity below the amount used the year before, reflecting an increased
greater than at the end of November last year. During November prices curtailment in mining and smelting.
Although reports from California and Oregon indicated the maintenance
of Portland cement were advanced in two areas, which is said to restore
the price level prevailing in August when a reduction was made. The of industry and trade at rates but little different fro?n those which preprice advance occurred only in those areas where there was a price vailed last year, conditions in Washington were distinctly unfavorable
throughout November. The worst drought ever recorded in this territory
decrease in August.
since pioneer days persisted throughout the North Pacific Coast and the
Textiles, Shoes, Hides and Leather.
diminished stream flow not only restricted the output of hydro-electric
The weekly production of standard cotton cloths in November decreased plants but even forced the curtailment of industry and trade at several
2.5% from the October rate. Shipments last month were at the rate of centers where the substitution of adequate steam-electric power was
80.1% of production and in October 93.8%. Sales were 64.6% of pro- impossible.
duction in November and 78.5% in October. Stocks during the month
Trade-Domestic and Foreign.
Increased 19.0% and unfilled orders decreased 13.5%.
Primary distribution, from preliminary reports as compiled by the FedThe consumption of cotton, domestic and foreign, exclusive of linters, eral Reserve Bank of New York, in October was greater than in September
by American mills during November was approximately 15.1% less than and the same as in October a year ago. Distribution to the consumer,
In October and 11.0% less than in November a year ago.
computed by the same authority, was less in October than in September
Silk deliveries to American mills and silk imports were both less in but more than in October last year. Wholesale distribution in October,
November than in October. For the 11 months ended November the Increasing somewhat more than usual for that season, was 0.9% greater
average monthly imports were 54,830 bales as compared with 47,477 in than in September and 2.7% greater than in October a year ago. Of the
the same months of 1928, an increase of 15.5%. The average monthly eight reporting lines, dry goods, men's clothing, and boots and shoes
deliveries to American mills this year from January to November, inclusive, decreased in October as compared with September, but men's clothing
were 52,326 bales as compared with 47,816 bales for the like period in was the only item that showed a decrease when compared with October
1928, an increase of 9.4%. These figures are based upon the reports of a year ago. Department store sales in November, from preliminary reports
the Silk Association of America, Inc. In the silk mills, the October ratio covering 522 stores in the most important centers of the country, showed
of activity to a computed normal was greater than in September or in an increase of 0.7% over the same month a year ago, which, however,
October a year ago. The wholesale sale of silk goods (quantity, not value) had one less Saturday. The increase in the sales in Richmond, Kansas
during October was 1.1% more than in September and 13.0% more than City, Dallas, and San Francisco was sufficient to offset decreases in eight
in October a year ago. The stock of silk goods (quantity, not value)
other centers. Most of the Federal Reserve districts reported the expecta- Increased 1.8% from Sept. 30 to Oct. 31, and on that date was 0.6% less
tion of a satisfactory holiday trade. The Fairchild Analytical Bureau
than at the end of October last year.
expects retail distribution by department stores during the spring of 1930
The activity of the wool weaving industry during last October, as
to approximate 1929, but it is suggested that it may not show the normal
shown by the combined totals of the volume of production and billings
by the men's wear and women's wear mills, increased in comparison with
The sale of farm equipment in October was 15.5% less than in September
the totals for September. Totals for identical mills, all groups, for
and 4.2% less than in October a year ago. There is usually a seasonal
October 1929 compared with the same period in 1928, indicated a 3% recession in October.
Increase in production.
The value of exports in November were approximately 15.2% less than
Shoe production in October was about 6.3% more than in September in October. For the 11 months ended November, exports were about 3.6%
in October 1928. The production in October was
and 10.9% more than
greater than in the same period last year. The value of imports in
greater than for any corresponding month since 1921, but there is usually November were approximately 13.3% less than in October, but for the
a falling off over the year end. Stocks of cattle hides at the end of first 11 months of this year some 9.0% greater.
October were 2.8% more than on Sept. 30 but 0.5% less than on Oct. 31
For the 48 weeks to Nov. 30, inclusive, total freight car loadings were
1928. Stocks of sole leather were 5.5 and 23.1% less at the end of approximately 2.9% more than in the same period of 1928, the total
October than on Sept. 30 last and Oct 31 1928, respectively.
reflecting largely the activity in the first three quarters of the year.
From the week of Jan. 5 to Sept. 28, both inclusive, with the exception
Production of newsprint paper in North America amounted to 366,000 of one week in March, total loadings were greater than in the corresponding
tons in November, with shipments 4,000 tons more than output. Total weeks of last year. During October and November, except for one week
production for 11 months in 1929 was 9% ahead of 1928, with no accumula- In October, total loadings were less than in the corresponding weeks of
tion of stocks. The industry to date this year has averaged 83% of last year.
The R. G. Dun dr Co. insolvency records for November showed an
rated operating capacity. Newsprint consumption in the United States has
increase in monthly liabilities of around 66% above the amount reported
been 8% more this year than last
Newspaper advertising in November was in practically the same volume in October and approximately 28% over November 1928. However,
as in November 1928, and this year's total to Nov. 30 was 4% more than much of this increase was accounted for outside of the manufacturing or
last year. Periodical advertising in 1929 has taken 8% more space than trading groups.
In 1928. Surveys of the national advertising field indicate larger budgets
On July 1 last the estimates for the production of nine agricultural
for 1930 than expenditures in 1929.
crops (total wheat, corn, oats, barley, rye, potatoes, apples, flaxseed, and
cultivated bay), due to unfavorable weather conditions, indicated that
Production of bituminous coal in November 1929 amounted to 45,500,000 only three (rye, flaxseed, and hay) were likely to be above the 1928
tons. This is approximately 2.75% below the 46,788,000 tons pro- harvest While unfavorable weather during the summer further reduced
duction of November 1928. For the first 11 months of 1929 the estimated the prospects, between Sept. 1 and Nov. 1 weather for growing conditions
output was 479,156,000 tons, or almost exactly 30,000,000 tons ahead of improved somewhat so that on the latter date, with the exceptions of rye,
the first 11 months of 1928. While the production for November of this apples, and flaxseed, the estimates were above what was expected on
year was slightly below that of the same month of last year, preliminary Sept 1, but still below the estimates of July 1, with the exception of hay.
reports indicate that December production, at least for the first three After June the trend in the prices of several of these products was upward
weeks of the month, will run substantially above last year's record.
to around Sept 15 and Oct. 15. In view of the Nov. 1 production estimate
During the first three weeks of November the country, except that it would have seemed reasonable to expect a continued advance, but on

leadership in the general movement to maintain capital budgets. A collateral result was enhanced plan programs of equipment, material and
supply concerns.
The daily average production of refined copper it North and South
America in November *was 1.7% less than in October, and 6.5% less than in
November 1928. Domestic and foreign shipments were 52,332 tons less
than in October, resulting in increase of stocks by 38,518 short tons. Total
refined stocks Nov. 30 were reported by the American Bureau of Metal
Statistics as 126,919 tons, which equals about 23 days' supply, based upon
average daily consumption for 11 months ended Nov. 30 1929. Unfilled
contracts as of Nov. 30 were reported to exceed 200,000 tons. United
States mine production amounted to 75,231 tons, compared with 82,575
tons in October, a decrease of 7,344 tons, and lowest since July 1928.
Normally, about 90 days elapse from the mining of ore before the refined
copper is available for shipment.
November production of refined and antimonial lead in the United States
and Mexico was about 2.8% less than in October. Stocks at the end of
November showed a decrease of approximately 5% from the stocks reported
at the end of the preceding month.


[Vol,. 129.


Nov. 15 prices of all but one were less than on Oct. 15. However, on
Nov. 15 six of them (oats, wheat, flaxseed, hay, potatoes, and apples)
were above what they were a year ago. The Department of Agriculture
expects that the total income for the crop year 1929-1930 should equal
or exceed that of the previous year.

Monthly Business Indexes of Federal Reserve Board.
The Federal Reserve Board makes available as follows,
Dec. 21, its index numbers of production, factory employment,payrolls,etc., covering November:

-Richmond, Kansas City, Dallas, and San Francisco. In certain
of the large industrial districts-Boston, New York, Chicago, and Cleveland
-sales were approximately the same as in November 1928.
Wholesale Prices.
Wholesale prices were at a lower level in November than in October and
continued to decline during the first half of December. The downward
movement, which had previously involved principally commodities with
organized exchanges, became general during the latter part of the period.

Bank Credit.
Liquidation of bank credit, which had begun early in November, contimed throughout that month and the first two weeks of December, and on
INDEX NUMBERS OF PRODUCTION, FACTORY EMPLOYMENT AND Dec. 11 total loans and investments of reporting member banks were at
about the same level as on Oct. 23, prior to the increase caused by the
withdrawal of funds by non-banking lenders. At member banks in New
York City loans were somewhat larger and investments considerably larger
Adjusted for
on Dec. 11 than on Oct. 23, while at reporting banks outside New York
Seasonal Variations. Seasonal Adjustment. loans on securities, all other loans, and investments were smaller than on
1928. that date.
Reserve bank credit outstanding was also reduced during November and
Nov. Oct. Nov.
Nov. Oct. Nov.
the first two weeks of December, largely in consequence of reduction in
balances of member banks at the Reserve banks, which accompanied the
Industrial production, total
107p 117
109p 119
liquidation of member bank credit. The decrease in Reserve balances
106p 117
1080 118
114p 127
1100 118
released Reserve funds in more than sufficient volume to meet the export
Building, value of contracts awarded_ 105
98.2 102 .1 98.8 demand for gold amounting to $65,000,000 during the period, as well
Factory employment
Factory payrolls
102 .0 110.0 103.6 as the seasonal currency requirements.
Freight car loadings
Between Nov. 0 and Dec. 18, United States security holdings of the
Reserve banks increased considerably, while their holdings of acceptances
declined somewhat, and there was a reduction of $250,000,000 in the
(Adjusted for seasonal variations)
indebtedness of member banks.
Money rites in the open market continued to decline and the discount
rate, which had previously been reduced at live reserve banks, was lowered
1928. at the Kansas City bank from 5 to 41%.
Nov. Oct. Nov.
100 124
Iron and steel
1090 118
Food products
Paper and printing,._
Autome WI -,_ . _ __ 83 116
Leather and shoes__ 106p 113
Cement, brick, glass_ 130p 141
Non-ferrous metals__ 1190 121
Petroleum refining-----178
Rubber tires
Tobacco manufac'res 130 135

Nov. Oct. Nov.

120 Bituminous coal
113 Anthracite coal
102 Petroleum
115 Iron ore shipments_ _
118 Copper
97 Zinc
122 Lead
126 Silver


1100 94


(Without seasonal adjustment)

IN ''






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Iron and steel
Textiles. group
Wearing apparel
Paper and printing
Transportation equipment
Cement. clay and glass
Non-ferrous metals
Chemicals, group
Rubber products
r Revised. D Preliminarya









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The "Annalist" Weekly Index of Wholesale Commodity
The "Annalist" weekly index of wholesale commodity
prices stands 141.8, an increase of 1.7 points from last
week (140.1) and compares with 147.4 last year at this
time. The "Annalist" further states:
Sharp advances in wheat and live stock made for a rise in the farm
products index and in turn caused a sympathetic rise in the food products
Index through advances in meat and flour. Declines in cotton goods,
worsted yarn and silk brought about a decline in the textile index. The
fuel index fell because of a decline in coke. Declines in tin, cement and rubber caused lower indexes in the fuel, metal and miscellaneous groups.
Dec. 24 1929. Dec. 17 1929. Dec. 24 1928.
Fann products
Food products
Textile products
Building materials
All commodities




Real Estate Market Index for November 80.6.
Real estate market activity for November is indicated
by the figure 80.6, according to the index of real estate market activity compiled monthly by the National Association
of Real Estate Boards. The index is based upon official
reports of the total number of deeds recorded in 64 typical
cities throughout the United States. Real estate activity
for the year 1926 is taken as the base year in computing
the monthly figure.

Federal Reserve Board's Summary of Business Conditions in the United States-Further Decline in
Industrial Production.
The Federal Reserve Board, in its "Monthly Summary"
issued Dec. 22, states that "industrial production declined
In November for the fifth consecutive month and was below
the level of last year. Retail sales at department stores Outlook for National Buying Power By Regional Areas
continued in larger volume than a year ago. Wholesale
As Seen By Silberling Research Corp.
in Buying Power Already Under Way.
commodity prices moved downward in November and the
first half Of December." The Board's summary continues:
The relative buying power of regional areas and the outlook
for the next six months is discussed by the Silberling ReProduction.
Production in basic industries decreased by 9% in November, according search Corp., Ltd., of Berkeley, Calif., under date of Dec.
to the Board's index, and was 5% lower than a year ago. The decline 21, which in presenting a chart to show the expected course
in production, which began in mid-summer, was restricted prior to
November largely to industries in which the expansion during the earlier of buying power throughout the country says:
part of the year had been exceptionally rapid, particularly iron and steel,
automobiles, and related industries.
The same industries showed the largest reductions in November, but
there were declines aim in the copper, cotton and wool textiles, and shoe
Industries, and, in smaller degree, in silk textiles and coal. Production
of crude petroleum was also curtailed. Volume of building contracts
awarded during the month continued to be considerably smaller than in
the corresponding period of 1928.
Employment in factories was also reduced during November to a level
slightly below a year ago, and there was a somewhat larger decrease in
factory payrolls. The decline in employment since mid-summer, however,
has been relatively smaller than that in the physical volume of production.
Employment was in 'smaller volume than in November a year ago in the
automobile, iron and steel, lumber, and rublxr products industries, and
larger in the machinery, textiles, paper and printing, leather, and chemicals
Distribution of commodities, as measured by freight-ear loadings, was in
smaller volume in November than in October, reflecting larger-thanseasonal decreases in most classes of freight. Miscellaneous freight in lessthan-carload lots, however, which includes chiefly commodities for retail
trade, showed the usual seasonal change.
Department store sales in leading cities during the month were about I%
larger than last year. Increased sales were reported in four agricultural

The most striking feature of the regional outlook for buying-power
throughout the country Is the impending sharp recession from extremely
over-expanded positions in the eastern industrial districts, and the relatively
more sustained level to be expected in the more agricultural areas. On
the whole there is evidence almost everywhere of reduction in buying-power
already under way which in some cases will reach severe proportions and
which bears out the warnings contained in our forecasts six months or more
ago. Retail trade is still feeling some of the stimulus of the recent prosperity but much of it is due to special sales efforts.
On the map above [this we omit-Ed.] are shown the 12 Federal Reserve
Districts, which afford a convenient basis for broadly dividing the country
Into territories conforming to regional economic geography as well as to
major sales and credit division.s. The size of the circles represents the relative importance of the districts from a btt;ins-power angle. The arrows
indicate the most probable direction of general activity in each district
over the next sic months. The monthly course of the regional indexes
folerthe past
years and the trends of growth are shown on the
Current Business Policy.
The present outlook calls for careful handling of sales and credit plans
Particularly in the industrial centers. We see no possibility of the business
recession being materially checked by any artificial means in those sections
which, during the past year, have been maintaining an industrial pace ten
to fifteen per cent above the normal rate. Superficial and momentary
appearances which will be interpreted by some as indicating an immediate

DEC. 28 19291


recovery should be ignored and policies geared to basic facts and fundamental
economic analysis. The main points to be clearly kept in mind during the
near future are that it will be necessary to put special emphasis in sales
promotion for six months or more on the areas which will suffer least in
the prospective recession, and that credit should not be overextended.
It is still too early to indicate the duration of depressed conditions, but we
are inclined to extend the period of subnormal buying-power well into
the fall of 1930. A good opportunity will be offered this spring to strong
organizations to extend distribution facilities by the absorption of weak
local units which have not been efficiently managed or able to weather the
storm. New construction of additional distributive or branch plant facilities can, however, be postponed for seine little time. If at all feasible, new
products can be added to established linos and actively advertised as a
means of compensating the general reduction in demand. This is a good
time to begin to engage skilled personnel in those districts throughout the
country which are to be made important distributive or branch headquarters for concerns planning expansion on a nationwide basis toward the
end of 1930.

Business Fundamentally in Unusually Good Position
Says First Wisconsin National Bank of Milwaukee.
Under date of Dec. 16 the First Wis:-onsin National Bank
of Milwaukee, summarizing the Business situation says:
Most business indices reveal a more than seasonal decline in activity
during November. Steel production fell from about 80% of capacity at the
beginning to 69% at the end of the month. Automobile output has been
estimated at 214,400 units against 394,365 during October. Building
contracts awarded in 37 eastern States were down only 17% as compared
with a year ago against a drop of 26% in October, but this was partly
due to an exceptionally large eastern project which was included In last
month's total. The decline in freight car loadings was much more pronounced than in November last year.
In view of the exceptionally high levels attained by production and trade
within the past year some readjustment was to be expected. OverspeculaCon in securities gave the upward movement of business additional impetus
and now deflation of securities is accentuating the downward swing. Front
a broad viewpoint, recession in business and the liquidation in stocks have
been healthy developments in that they are laying the foundation for a
renewed advance.
Business, fundamentally, is in an unusually good position. There has
been no inflation in commodity prices. Inventories, except in a few lines,
are not abnormal. Most industrial corporations are in good financial condition and well able to withstand temporarily slower trade. And of particular significance is the strong banking situation and abundant supply of
The efforts of the Administration have been eiTective in checking undue
pessimism. These consist of bringing about a reduction of 160 millions in
taxes, or planning larger eependltures for public improvements and of calling
conferences with business executives to outline programs for now construcThe conferences contributed much toward bringing out the fact
that expansion programs are going forward and that confidence among
Industrial leaders in continued prosperity is unshaken. It is probable that
since President Hoover has focused attention upon the construction to be
undertaken, there will be fully as much work done as was originally contemplated.
Commodity prices during the early part of last month continued the downward movement which has been in progress since July. The "Annalist"
weekly index of wholesale prices during the week ended Nov. 12 fell to the
lowest point since April 1027. A good part of the recent decline was doubtless In sympathy with the collapse In the stock market. Those commodities
in which speculative markets aro maintained showed the greatest weakness.
In the last week of November, there was a sharp upturn which carried commodity prices to about the same levels as at the beginning of the month.
As for the outlook, no pronounced recovery during the near future is indicated. Supplies of most raw materials are well up to current requirements.

movement are limited for the most part to these bringing out new models
for the January shows.
So far, Michigan manufacturers have had very few cancellations. Plants
producing heavy oliemicals and pharmaceuticals report that business is
unusually good. A large electric refrigerator plant and a well
company manufacturing vacuum cleaners, both of which are situated in
Detroit, are doing a better volume of business than they did a year ago.
However, the electrical goods industry, for the most part, is quite spotty,
as is also the brass goods industry. Production schedules are below
volume of
in the stove industry. Paint manufacturers report a good
business. Gas engine plants have had one of the best years in
Cement plants are reflecting the decline in building construction.
output of steel castings is holding up remarkably well. Spotty
the total volume of
prevail in the paper and furniture industries, but
business in each of these lines is fairly good. Mining operations in
Upper Peninsula continue good.
Consumption of electrical energy by Michigan industries in November
amounted to 148,172,010 kilowatt hours, which was 23% below
consumption in the preceding month and 22% less than the amount
in November 1928.
increasing in
Industrial employment is reported normal in 29 cities,
prepared by
eight and decreasing in 23. The Detroit employment index
November as comthe Detroit Board of Commerce was 93 at the close of
year ago. There has been a
pared with 89.5 a month previous and 98.5 a
distinct improvement in the employment situation in Detroit since
first of December.
issued in 23
The estimated value of building authorized by permits
principal cities in Michigan during the month of November was
$15,596,000 in November
as compared- with $16,882,000 in October and

W. W. Putnam of Union Trust Co.—Detroit Looks For
Record Volume of Business In Final Quarter This
Year Despite Recession—Conditions In Michigan.
"In spite of the recession that has been taking place during the fourth- quarter the volume of American business
activity in 1029 will be recorded as one of the largest, if
not the largest, in history," says Wayne W. Putnam, Assistant Vice-President of the Union Trust Co., Detroit, in surveying business conditions under date of Dec. 16. In part,
Mr. Putnam continues:
In view of the extraordinary pace maintained from almost the beginning
of the year until well past midsummer, industry, traditionally quiet
during the closing weeks of the year, would doubtless have experienced a
decline greater than normal at this time regardless of a collapse in the
stock market. Retail trade, however, with the stimulus of cold weather
and holiday demands, would probably have been of record proportions in
the absence of deflation in security prices.
Industry and trade do not give any indication of entering 1930 under a
strong momentum. On the other hand, there is no indication of a sudden
breakdown. A fair first quarter, a satisfactory second quarter, followed
by good business in the latter half of the year, are indicated, according
to recognized authorities on economic conditions.
Although building construction and automobile and steel production
continue on a downward trend, there are many manufacturing lines in
which operations are at a satisfactory level. Moreover, a national income
of more than one hundred billion dollars in 1929 argues against an extended
contraction in retail sales, with the exception of luxury goods. Furthermore, the foundation of the business structure in 1930 will rest on a sound
credit base. Ample credit combined with easy money rates will be the
new year's richest inheritance.

Conditions in Michigan are indicated as follows by Mr.
Business as a whole in Michigan is a little below the level prevailing at
this time a year ago. The reduction is due chiefly to the slowing up of
the automotive industry. Other manufacturing lines by and large are
enjoying a fairly good volume of business. Inventories and year-end
changes will tend to restrict output in many lines during the next few
weeks. The downward movement which took place in the automotive
Industry during November leveled off at the beginning of December and
has since turned perceptibly upward. Companies participating in this


last year.
Bay City,
Debits to individual accounts for November in Battle* Creek,
Kalamazoo, Lansing, Musle:Ton and St. Joseph and Detroit
$2,239,$2,029,070,834. Debits in the same cities for October totaled
890,757 and $1,885,565,138 for November 1928.
and normal to good in 29.
Retail trade is reported fair in 27 cities
ago. NotwithVery few cities report sales better than at this lime a year
savings, holiday
stinding the release of a large volume of Christmas
purchases are not up to expectations. Some improvement has taken
in Detroit since the first ef December. Collections are slow.
generally satisof merchandise through wholesale dlannels is reported
factory, but collections are slow.' Cancellations have been negligible.
Men's furnishings, dry goods and drugs have recently shown good gains.

United States Spent $45,652,000,000 for Construction
During Last 7 Years—Amount for 1928 87,789,000,000—Urban Building Work Showed Upward
Trend While That on Farms Fell Off 8437,000,000.
Construction, which is widely held to be one of the most
significant indicators of a nation's prosperity, when considered in the light of its total value during a given period,
is a subject treated in the 500-page report, under the title,
The National Income and Its Purchasing Power, soon to be
published by the National Bureau of Economic Research.
Advance figures taken from a copyrighted statement issued
on Dec. 26 by the National Bureau and covering the period
from 1909 to 1028, incl., show that the upward trend of the
value of construction in the leading cities has been steady
since 1922. During these seven years the money put into
urban construction, estimated in current dollars, amounted
to $41,799,000,000. Construction on the farms during the
same period reached $3,853,000,000, or a total for farm
and city of $45,652,000,000. The total construction value
for 1928 is estimated at 87,789,000,000. The statement
goes on to say:
Records compiled by the National Bureau from the most reliable source
available indicate that while urban construction figures rose consistently
over the seven years since 1921, there has been an almost.steady decline in
the value of farm construction work during the same period, from $800,000,000 in 1922 to 5363,000,000 in 192S.
To enable those who realize the significance of the complete figue
to draw their own deductions, the National Bureau has compiled the fol
lowing table of the total value of construction in the continental Unito.
States, estimated in current dollars, from 1909 to 1928. inclusive:
On Farms.
191 1
14 3
Analyzing this table,the National Bureau's report shows that th.e physical volume of construction, which was on a relatively high level in 1909, declined almost steadily until 1915, rose sharply in 1916,then fell off abruptly
during the next two years. It recovered to high levels in 1919 and 1920,
but fell again in 1921. Thereafter a long ascent began which was still continuing in 1927.
The figures in the table, the report explains,showing the value in current
dollars of the urban construction in the United States for the years 1909 to
1918, are based primarily on the volume of building permits reported for
leading cities. Since 1919 the records of building contracts for a considerable portion of the area of the United States have been carefully compiled.
This proposition has been growing from year to year and, therefore, it has
been necessary to make supplementary estimates for a constantly smaller
fraction of the urban area.



The building permit records for the years 1909 to 1918 have been conYerted to relatives and by the aid of this series of relatives applied to the
reports for 1919 estimates in terms of absolute value have been made for
the earlier years.

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Projects. Square Feet.

Contracts Awarded.*





November Construction Contracts Below Last Year.
Total construction contracts awarded during November in
the 37 Eastern States amounted to $391,012,500, according
to statistics compiled by the F. W.Dodge Corp. In November 1928 these construction contracts aggregated $471,482,200. For the 11 months of 1929 the contracts awarded
foot up $5,437,922,400, as compared with $6,195,529,800
in the corresponding 11 months of 1928.
We give below a table showing the details of projects contemplated in November and for the 11 months of this year as
compared with the corresponding period a year ago, and
the contracts awarded for the same periods. These figures
cover 91% of the total United States construction, according
to the F. W. Dodge Corp.






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[vol.. 129.

- -Grain and grain products loading for the week totaled 43,969 cars, a
reduction of 7,767 cars under the corresponding week last year and 932
cars under the same period in 1927. In the Western districts alone, grain
and grain products loading amounted to 31,208 cars, a reduction of 5,237
cars under the same week in 1928.
Live stock loading totaled 28,908 cars. 2,757 cars below the same week
last year and 3,386 cars below the corresponding week in 1927. In the
Western districts alone, live stock loading amounted to 22,657, a decrease
of 1,406 cars compared with the same week in 1928.
All districts, except the Pocahontas. reported reductions in the total
loading of all commodities compared with the same week in 1928, but all
districts reported increases compared with the same week in 1927 except
the Northwestern, which showed a small decrease.
Loading of revenue freight in 1929 compared with the two previous years
Four weeks in January
3,570,978 3,448.895 3,756,660
Four weeks in February
3,767,758 3,590.742 3,801,918
Five weeks in March
4,807,944 4,752,559 4.982,547
Four weeks in April
3,983,978 3,740,307 3,875,589
Four weeks in May
4.205.709 4,005,155 4,108.472
Five weeks in June
4,924,115 4,995.854
Four weeks in July
4,153.220 3,944,041
Five weeks in August
5,590,853 5,348,407 5,367,206
Four weeks in September
4.538.575 4,470,541
Four weeks in October
4,677,375 4.703,882 4,464,872
Five weeks in November
4,891,835 5,144,208 4,741.390
Week ended Dec. 7
Week ended Dec. 14

51.308,861 50,021,293 50,125,442

Life Insurance Sales in United States Continusto
Gain-8% Increase in Last Twelve Months.
The year 1929 has been one of unprecedented growth in
the field of life insurance. Sales of new ordinary life
insurance during the past 12 months represent a volume of
business 8% greater than was sold in the preceding year.
This increase appears even more noteworthy when it is
considered that during 1928 sales in the country as a whole
increased 5% over the volume sold in 1927. Every year since
1921 the United States has increased its Investment in new
ordinary life insurance until in 1929 the figure will be about
90% greater than the annual volume paid for in 1921. The
large increase in 1929 is not due to exceptional activity in
certain sections of the country but is brought about by
increased sales in every section. During the last months
of the year the decline in the stock market has been stimulating sales. Those who lost during the stock market crash
have bought life insurance as a means of restoring to their
estate at least part of the amount which was lost in the
deflation of securities. It is stated that the volume of
business sold each month in 1929 exceeded that of the same
month in 1928. March sales of ordinary life insurance set a
new record for the largest volume ever paid for in a single
month. This information is based upon figures prepared
by the Life Insurance Sales Research Bureau at Hartford,
Conn. The Bureau's figures are based on the experience of
78 companies which on Jan. 1 1929 had in force 88% of the
total legal reserve ordinary life insurance in force in the
United States. The Bureau's survey continues:

This steady increase in the sales of life insurance is due to two factors:
one coming from within the business itself, the other from outside. The
companies themselves have realized the value in the adequate selection and
training of agents and agency managers. The high pressure salesman is
being replaced by an agent who is a student of his business and its relaii1 2
tion to potential and actual * policyholders. This new force from within
Ae 8
the companies themselves is having a favorable effect on the quality as well
3Z; 3
as the quantity of business sold.
0= 0
F.° F,
The second factor, more recent, is nevertheless making itself felt. Life
8.9M0442 . 4
8.9cTig4ca . 4
insurance sales are closely related to economic conditions. The recent
depression in the stock market has led to speculation as to the effect on
business and, therefore,
Railroad Revenue Freight Loading Below 1928 But 1921 have anticipated on life insurance. People who recall the panic of
a pronounced business recession. There is, howAbove 1927.
ever, a distinct difference between the panic which occurred in 1921 and
the stock market crash of 1929. In 1921 there was an excessive commodity
Loading of revenue freight for the week ended on Dec. 14
totaled 923,240 cars, the Car Service Division of the Ameri- speculation which affected the whole business structure of the country.
This was accompanied by a credit shortage which forced interest rates on
can Railway Association announced on Dec. 23. This was loans to excessive heights. In contrast to the panic of 1921, the deflation
a decrease of 13,585 cars below the preceding week this year, of 1929 was confined almost entirely to the stock market. In 1929 we are
and a reduction of 40,428 cars under the corresponding week aided by much statistical information compiled by trade associations and
by the Government which was not available
in 1928 but an increase of 54,490 cars above the correspond- ditions in the country are basically sound, loansin 1921. The business conare available at a reasonable
rate, and the financial conditions of the major industries are such
ing week in 1927. Details follow:
that their
Miscellaneous freight loading for the week of Dec. 14 totaled 319,721 earnings in the first of this year have placed them in a position to withcars, 27,273 cars below the same week last year, but 20,745 cars above the stand a temporary dullness. Sales of life insurance are an indication of
existing business conditions. Figures just issued show that
corresponding week two years ago.
during the
Loading of merchandise less than carload lot freight amounted to 245,002 past month the United States as a whole purchased a volume of insurance
7% larger than in 1928. Every section of the country
cars, a reduction of 6,923 cars under the same week in 1928 and 1,310 cars
shared the increase
and reported increased sales.
under the same week two years ago.
The public has been made to realize forcibly that profits quickly made
Coal loading amounted to 212,732 cars, an increase of 14,212 cars above
can be as quickly lost. In contrast to the abnormal rise and then
the same week in 1928 and 39,458 cars above the same week in 1927.
fall of
Forest products loading totaled 52,376 cars, 9,150 cars below the same stocks, life insurance is an investment which does not fluctuate but steadily
grows in value. Many life insurance agents have taken advantage of the
week in 1928 and 1.509 cars under the corresponding week in 1927.
Ore loading amounted to 8.868 cars, a decrease of 1,509 cars under the stock market crash to sell insurance to persons who suffered heavy losses.
same week week in 1928 and 267 cars under the corresponding week two Insurance offers a means of building up an estate at a small percentage
cost and insures the policyholder and his family against future
years ago.
The comparison of sales of ordinary insurance in 1929 to 1928,
Coke loading amounted to 11,664 cars, an increase of 739 cars above the
corresponding week last year and 1,691 cars over the same week two years follows, shows that every section has increased its production in November
and the past year:


35 g' 11
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DEC. 28 1929.]


Sales in Past
12 Months.
United States
New England
Middle tiantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
+11 o
The West North Central States showed the largest monthly gain over
sales in November 1928. The States in this section showed an average
increase of 15%. The East South Central States, with an average monthly
increase of 11%, follow the West North Central. All but thirteen States
shared the country's average gain of 7%. Utah leads all States in the
country, with a 35% gain over November 1928. Wyoming comes second
with a 31% gain, while Maine follows closely with a 30% increase.
The 8% average increase for the United States as a whole during the
past 12 months was shared by all sections. Only eight States failed to
equal their production in the preceding year. The Mountain States increased
their production 12% during the past 12 months, and lead all sections.
The Middle Atlantic and East North Central States, which pay over half
the total new business sold in •the United States, have increased their
production 9% and 10%, respectively, during the past 12 months.

Sales of Ordinary Life Insurance in Canada Continue
To Gain—Increase of 7% in Past Twelve Months.
During the vast 12 months, sales of ordinary life insurance in the Dominion of Canada show a 7% increase. This
gain, it is stated, is shared by all the Provinces except
Alberta and Prince Edward Island, which show slight losses.
The largest gain in the past 12 months, a 21% increase,
was made by the colony of Newfoundland. British Columbia
led the Provinces with a 17% increase over the preceding 12
months. These figures are prepared and issued by the Life
Insurance Sales Research Bureau at Hartford, Conn.; they
are based on the experience of companies which on Jan. 1
1929 had in force 84% of the total legal reserve ordinary
life insurance outstanding in the Dominion. The Bureau's
survey Dec. 20 reports further as follows:
Sales in the month of November show a 2% increase in the Dominion
as a whole. This gain is shared by all but three of the Provinces.
Ontario, which pays for the largest volume of insurance of any Province,
shows a 1% gain, while Quebec, which pays for the second largest volume,
shows a 13% increase over sales in November 1928.
During 11 months of 1929 Canada as a whole has paid for a volume
of insurance 7% greater than in the same months of 1928.
The city figures reported vary widely. Quebec shows the largest monthly
gain, sales reported in that city are 42% larger than in November 1928.
Hamilton shows the largest increase in the 11-month period, a 25% gain.
Vancouver follows closely with a 24% gain over 11 months of 1928.

Union Trust Co., of Cleveland, Hopeful as to the
Future of Trade.
Although industry is now in a state of recession, present
indications point to gradual improvement throughout the
winter and spring, says the Union Trust Co., Cleveland.
Discussing the outlook in its magazine, Trade Winds, the
bank says:


Buffalo Unemployment Survey.
The results of a special study of unemployment in nine
areas in Buffalo was announced, Dec. 23, by New York
PreState Industrial Commissioner Frances Perkins.
liminary plans for this study were made last April and it was
carried on through co-operation of the State Department of
Labor, State Teachers College of Buffalo, University of
Buffalo, Canisius College, and the Buffalo Foundation.
The study was made and the report prepared under the
direction of Fred C. Croxton and Frederick E. Croxton.
Information was secured through a house to house canvass
made by students in the two colleges and the University.
The enumeration was made during the first week of November. 15,164 persons were included in the study of that
number 1,509 or 9.9% were unemployed, 981 or 6.5% had
only part time work and 12,674 or 83.6% had full time
employment. The results of the survey are announced as

Briefly summarized the report shows for the 12,331 enumerated males
18 years of age or over that:
109 per thousand were unemployed
67 per thousand had only part time work—or
176 per thousand were unemployed or under-employed.
Further analysis of the information for enumerated males shows that
the cause for unemployment for more than half was slack work
59 per thousand were unemployed betause ofslack work.
23 per thousand were unemployed because of sickness or injury
20 per thousand were unemployed because of old age or retirement
7 per thousand were unemployed for miscell. or not reported causes.
Unemployment had continued for 10 weeks or longer for one-half of
the enumerated males.

Commissioner Perkins in issuing this report, states that:

In planning the work earlier in the year it was hoped that similar studies
could be carried on at the same time in other cities of the State in order to
secure definite information concerning unemployment at a given time in
several localities. The plan followed required the co-operation of universities
and colleges in the cities in which the surveys were to be conducted and.
with the limited time available, Buffalo was the only city in which such
co-operation on a scale sufficiently large could be developed.

Commissioner Perkins also says:

Very few studies of unemployment have been made. Information concerning unemployment is, however, extremely valuable to supplement the
data now available on employment. Furthermore, data on unemployment
seems absolutely necessary if the effect of unemployment and irregularity
of employment upon the individual and the family is to be studied and
constructive plans for stabilizing employment are to be undertaken.

Commissioner Perkins expresses the hope that the Buffalo
study may be repeated at the same season of the year for a
series of years and that similar series of studies may be made
in other cities of the State. A series of studies in early
November ought also to be followed by a series during a
late spring month. The purpose in carrying the studies
for a series of years would be not only to learn employment
conditions each year, but to try to discover for a considerable
number of individuals what might be considered a normal
condition with reference to full-time employment, parttime employment, and unemployment as an aid in developing constructive plans for regularizing employment.

"As we look back over the past few months, it becomes apparent Reactionary Business Trends Reported by Indiana
that there was over-enthusiasm in some lines of industrial proUniversity.
duction as well as in the stock market. Such current falling off in
the volume of production and distribution as cannot be attributed
Production of coal and shipments of stone in November
to normal seasonal trends seems largely a correction of an effort to
good increases over the corresponding month of
produce and to sell more merchandise than the market could absorb showed
during the summer and early fall. From this point of view, the last year, but a survey of general business conditions
present curtailment of industrial production is distinctly an en- Indiana showed continued reactionary trends during Novemcouraging factor, as it is in itself a corrective measure.
ber. This is the report of the current Indiana Business
"Now that November statistics are available, we are able to get
Indiana University
a much more definite idea of the extent of the falling off in busi- Review, prepared by E. J. Kunst, of the
ness precipitated by the stock market collapse than was the case bureau of business research, and published by the Fletcher
during and immediately following the crash. The November figures
American National Bank of Indianapolis. The review
would appear to indicate the following:
1. Business in terms of total volume of production and sales is, states:
Output of pig iron in the Indiana districts was higher than a year ago,
at this writing, definitely, in a period of depression.
industry were sharply reduced
"2. The depression, however, is not universal. Although the ma- although operations in the iron and steel
a good lead over a year
jority of lines show some declines, a drastic reaction is evident during the month. Flour production maintained
followed seasonally downonly in certain specific industries, and other specific industries ago. Output of automobiles and accessories
levels of last year. Employment in
and also certain sections of the country are actually showing ward trends and were also below the
metal trades and other manufacturing industries showed further declines,
retail trade employment. Building
The fundamental soundness of the business structure, plus the which were partly offset by increases in
and permits for new construction
constructive efforts of industrial leaders, give promise of a is entering its low season with contracts
gradual recovery throughout the spring and good business with at lower value than a year ago.
Grain and livestock receipts were seasonally larger than in the previous
the arrival of summer, or at latest, early autumn.
levels of last year. Freight car loadings at
"As has been repeatedly stated, hand-to-mouth buying, prevalence month, but not up to the high
after seven months of exceptionally large shipments.
of low inventories, absence of commodity speculation, ample supply Indianapolis dropped bank clearings, bank debits, and newspaper adverPost office receipts,
of credit at reasonable rates, and back-log of earnings—in short,
tising were higher than a year ago and below October with trends toward
the component parts of the basic structure of business—form the
narrowing the percentage of gain. Chain drug sales were unusually large;
foundations of a steady business recovery.
department stores reported holiday buying somewhat retarded by weather
favorable factor—and a most important one—is the psy"Another
conditions; wholesale trade was also retarded. Saks of automobiles dropped
chology with which business men, and indeed the rank and file of off, but used car sales were practically equal to year ago.
the public, for that matter, are facing the present situation. People
are turning away from the ticker and going back to work. In this
connection, it is significant that new capital flotations for Novem- Optimistic View of Business by E. W. Decker of Northber totaled only $297,369,025, as compared to $877,617,670 in
west Bancorporation—Crop Conditions in MinneOctober and $1,614,744,164 in September.
apolis Reserve District.
"Another important psychological element is the orderly fashion in
which leaders of industry have sought to work together in the inEdward W. Decker, President of the Northwest Banterest of business stability and recovery. This has been inspired
corporation, Minneapolis, which is an affiliation of 86
largely, of course, by the remarkable activity of President Hoover
banks in eight northwestern States, with combined resources
in this respect."



[VOL. 129.

of $472,000,000, is conservatively optimistic relative to
business of 1930. Mr. Decker says:

economic conditions remain sound. There has been no upheaval
of nature
to destroy any of our natural resources. Industrial and
properties are in excellent physical condition, and under able management.
The 1929 grain crop in the Ninth Federal Reserve District was
a little
The conferences of business and financial leaders held in Washington
below normal. Price at times rather disappointing,
but recently quite with President
Hoover have brought forth announcement of expenditures
satisfactory. As a result of the price situation, and under the
of Governmental bodies, our farmers have not sold their grain as freely planned for 1930 in amounts which are bound to give a continuing impulse
to business. Local leaders are gathering similar figures. Those
as in former years, and our information indicates that about
one-third given
out for Southern California indicate the use of greater sums
of this year's crop is still owned by the farmer. In addition
a normal
movement of wheat out of Minneapolis has not appeared: we have large in any previous years in our history.
Our prosperity has been widespread. Never before have so many people
accumulations in country elevators and in terminals—more, I think, in
proportion than over before at this time of the year. This means that been able to share in the returns from industry, to enjoy comforts
there has not been normal liquidation.
luxuries, to lay aside a surplus. We have every incentive, both of experiAside from this, business in all lines in this District has been very satis- ence and foresight, to continue our prosperity. We can
do so, if the
factory. Dairying, livestock, mining and manufacturing, have all enjoyed country will but heed the advice of the President to "go
to work," if it
a prosperous year.
will remain industrious, and practice thrift.
We look forward to 1930 with confidence. Liquidation in the securities
market, while more sudden and drastic than was expected, will prove
Annual Review of Business Conditions in Canada and
to be a boon, as more attention will be given to business and its profits
I see no reason why 1930 should not be a very satisfactory year to
United States as Viewed by Royal Bank of Canada.
Ninth District in every line of endeavor.
The Annual Review of Business Conditions in Canada
By the formation of two important groups of banks in this part of the
country, as well as the natural accumulation of wealth, the financial and the United States, appearing in the Monthly Letter
situation has been stabilized, and I believe is now on a very sound footing.
of the Royal Bank of Canada on Dec. 12, summarized the

situation as follows:

Bank of Montreal Reports Large Volume of Business
Despite Slight Slowing Down.
In its business summary, Dec. 23, the Bank of Montreal
states that "the month as a whole, has been marked by
a slight slowing down of the remarkable activity and expansion characteristic of trade during the past five years.
A large volume of business, however, is moving, and what
may appear a quiet condition would two years ago have
been regarded as one of unwonted briskness." In part the
bank also states:

The situation in Canada is not unlike that which exists in the United
States. In both countries, the recent decline in security prices is
likely to
have a somewhat depressing influence. The record level of automobile
production that characterized the early part of the year could
not be
maintained. In Canada. there is the additional factor that the uncertainty
In regard to the ultimate return that will be received for the
wheat that is
now in storage is likely to have a disturbing influence upon business
As observers in the United States have distinguished between the
decli nein security pricesand those other declines which have followed
of price inflation and over-extension of business, so it should be possible
to draw the same distinctions in Canada. Price levels in Canada are
in line with price levels in other parts of the world. Inventories are
manufacturing concerns are in an excellent financial position. Easier
credit should encourage building and expansion during the coming year.
Although there may be a mild recession during the winter months, there are
no basic factors in the situation that suggest lack of strength in the business
structure. Even as late as Nov. 1 the volume of employment throughout
the country had shown less than the normal seasonal decline. The
level of
employment on Nov. 1 1929 was higher than on Nov. 1 1928.
Canada is
more dependent upon foreign markets than is the United States.
great decline in security markets in the United States has brought
an easing of the credit situation throughout the world. The buying power
of many countries should show substantial improvemen
t during the coming
year and this improvement in world buying power will have a
influence on Canadian exports. In view of all these facts there can be no
question that the prospects for the continuation of the balanced expansion
in the manufacturing, mining and agricultural activities
of Canada during
the next few years are as good as they have been
at any time in the past.

Holiday trade the country over has been favored with seasonable
weather, clear, crisp, cold, with satisfactory snowfall. The volume
of retail turnover will compare fairly well with that of last year at
this time and is proving substantially better than in any Christmas
season prior to that of 1928. The adverse influence of the stock
market crash and the light crop is visible principally in what is known
as the luxury trades. For goods of moderate price and household
necessities there has been a satisfactory demand, but there has been
cautious buying of the more expensive articles.
The most unfavorable factor of the year has been a short harvest
and delayed shipment of wheat, the influence of which is felt in many
quarters, though the plan of initial payments on delivery has placed
prairie farmers in better condition than might otherwise have been the
case. The circle of unemployment was enlarged by loss of rail and
lake traffic, and while the index figure of employment remains relatively
high, the labor market is likely to become somewhat congested in spots
In depicting the business situation in Canada the bank
during the winter. Losses in stock speculation are an unknown quanalso says:
tity, but consequences cannot be helpful to business. The automobile
Month by month throughout the first nine months of the year, the
industry, too, has had six months of reduced production, although now
Dominion Bureau of Statistics index of tho physical
volume of production attained
it is not greatly less active than a year ago.
higher levels than in any previous year. A like statement may he
These are the darker shades on the industrial and commercial pic- for
the indices of forestry, mining, manufacturing, domestic trade, and
ture. On the bright side is continuous mining development, much
building. In agriculture, the prolonged drought reduced the wheat
construction, both present and prospective, of buildings and engineer- to
only about 50% of the record volume attained in the previous year,
ing works, important railway projects shortly to be begun, the news- but
the small size of the crop was partly offset by a substantial improveprint industry reaching new peaks of output each month, the iron and
Other crops suffered severely, but in many instances better
steel industries well employed, and, above all, an abiding faith that the ment in grade.
prices partly compensated for reduced yield. Even now, it is impracticable
material progress of Canada is not to be stayed. Bank note circulation to
make a definite statement as to the probable return that will be received
at the close of October was at a high point. Commodity prices have for
wheat. Delayed marketing has left this subject in suspense. Before
tended slightly downward in an orderly way. Textile industries are
attempting to estimate the outlook for the coming year, it may be well to
working at fairly good capacity.
Hydro-electric power production examine
present situation in each of the major geographical areas of
steadily increases and finds a ready market, while major new projects the country,
u nttrhye.
are in the making.
The season of navigation was ,disappointing in freights, but excellent
in passenger traffic, a larger number of tourists using the St. Lawrence Mail Order Houses Reduce Prices 10%--Sears-Roebuck
and Montgomery Ward Make Cuts on Wide Range
route than ever before.
The railway executives anticipate a fruitful business in the coming
of Commodities—No Changes on Auto Tires.
year, in preparation for which orders have this month been placed by
Sears, Roebuck & Co. and Montgomery Ward & Co. issued
the Canadian National Railways for 120,000 gross tons of steel rails
and 5,000 box cars, while the Canadian Pacific has made an issue of on Dec. 21 their midwinter
sales catalogues showing red$30,000,000 bonds in connection with its programme of extensions
duetions averaging around 10% in prices of a wide range of
and betterments.
The newsprint industry reached in November a new height of pro- commodities. A dispatch from Chicago Doc. 24 to the New
duction, mills turning out 252,046 tons, a few more tons than in Octo- York "Times" in
reporting this added:
ber. In the elapsed eleven months the output of Canadian mills has
The reductions will apply not only to mail orders but also will
go into
been 2,496,564 tons, an increase of 322,000 tons over the correspondeffect in the 1,000 retail stores operated by the companies throughout
ing period in 1928. The price of newsprint for the coming year has the
country. The new schedules will be in effect until Fob. 28.
not yet been definitely fixed by all companies, but $60 a ton, an advance
Both companies will continue to pay postage on orders that can be sent
of $5, has been announced by some of the largest producers as their
conveniently by parcel post and freight will be prepaid on most other
new contract price. A large mill was put into production in Nova articles.
Scotia by the Mersey Paper Company this month, and another is ap"Every year wo send out our 'Mid-Winter Flyer,' which is a bargain
proaching completion in New Brunswick.
catalogue filling the same function that January sales do for ordinary
retail establishments," General R. E. Wood, l'resident of Sears, Roebuck
H. D. Ivey of Los Angeles Sees No Lack of Prosperity & Co., explained to-day. "On 2.000 to 3.000 items wo will show our usual
seasonal reduction, varying from item to item but running in general
Provided There Is Industry and Thrift.
about 10%. The 38,000 other items in our catalogue will remain
unchanged in price."
In a recent radio address over KFI, IIerbert D. Ivey,
Montgomery Ward & Co. said in their statement:
President, Citizens National Trust & Savings Bank, Los
"Every item listed is new goods. Over 2,000 of the best bargains from
our general catalogue are greatly cut to
Angeles, had the following to say:
make this the biggest sale in our
history, The 3,000 items listed include auto accessories, clothing,
Prosperity is not a thing of mysterious origin; it is not an indefinite
millinery, farm implements, shoes, furniture, furs, hardware, notions,
influence pervading the atmosphere and making business good, employment
sets, rubber goods, stoves and ranges, table linen, wall paper, washing
plentiful, salaries and wages high—without individual effort on our part.
maIn the final analysis Prosperity is governed by two things: Work and chines, jewelry, dairy supplies and most of the things used on the farm
Thrift. And when a hundred and twenty million people hold fast to the and in the home."
No reductions will be made in automobile tires, which were reduced
determination to be indu.trious, and to practice thrift, we can have no
price last Autumn, but mileage guarantees will be made more
lack of prosperity.
Our nation stands out to-day among all the nations of the world because
of its tremendous natural wealth, and because of the way in which we Advance Report for November on Wholesale and Retail
have developed the wealth. Our great mills and factories and transportaTrade in Philadelphia Federal Reserve District.
tion systems provide a gigantic Industrialism with the greatest tools ever
Tho following advance report on wholesale and retail
known to man for the continuing development of our wealth. Industry
has not merely plowed profits back into the maintenance of these tools, trade for November in the Philadelphia Federal Reserve
but it has stored up important cash reserves. It has done those things District is made available
by the Federal Reserve Bank of
in addition to liberal distribution of earnings through dividends. Basic



DEC. 28 1929.]

products, transportation equipment, stone, clay, and glass products, and
lumber products, reported declines in the number of wageearners, while
those comprising textile products, foods and tobacco, paper and printing,
leather and rubber products, and chemical products showed slight gains.
Stocks at End of Mo. Compared with November 1928, employment was over 7% larger. all
Net Sates During Month.
lumber products reporting increases.
Compared Compared Compared Compared groups except
Index Numbers
Delaware industries reported slight gains both in the number of wage
(P. Cl. of 1923-1925
earners and in the volume of wage disbursements in November as comMonthly Average). Previous
October. Groups contributing to this favorable showing were
Last Year pared with
Last Year
Oct. 1929. Nov. 1929
certain metal manufacturers and the leather and tanning
Most city areas reported seasonal declines in wage payments. In com14.8%
parison with a year ago, however, practically all of them had larger employLb:i3
ment and wage payments.
The statistics follow:
and the Department of
[Compiled by the Federal Reserve Rank of Philadelphia
Labor and Industry, Commonwealth of Pennsylvania.]
Accounts Outstanding
Index Numbers, 1923-1925 Average=c100.
During Month.
at End of Month.


Compared Compared Ratio to Compared Compared
Net Sales
During Previous
Last Year
Last Year
-0.9% -10.8%


Group and Industry.

+2.8% -12.9%


Boots and shoes
Dry goods
Electrical supplies
a Preliminary. d Revised.

November 1929
November 1929
No. of
Per Cent
Per Cent
Change Since
Change Since
frig. Nov.
Nov. Index. Oct.
Index. Oct.
1929. 1928.
1929. 1928.

1++11+1++++111+11111111++11++.+1+11+1+1++.10.1111+11+++ +11111
- o, ...tow owto wr.
wwow-4 oo:www.owow=oow.ww,- woba , ,

Boots and shoes-Drugs
Dry goods
Electrical supplies

+7.3 100.4 -3.9 +8.9
All mfg. industries (51) _ ___ 858
+3.6 99.5 -4.8 +4.5
Metal products
+9.0 51.3 -2.5 +14.3
Blast furnaces
+5.4 84.9 -8.3 +2.5
Steel works dc rolling mills 49
+13.1 116.1 -7.9 +2.1
Iron and steel torg1ngs
+11.3 120.1 -5.2 +9.4
Structural iron work
Steam and hot water heat+7.4 107.8 -6.7 +5.3
ing apparatus
+2.3 86.6 -7.2 -5.7
Stoves and furnaces
+11.5 106.6 -1.8 +14.5
+12.1 137.8 -0.3 +17.4
Machinery and parts__ _
+6.1 154.4 +3.6 +17.2
Net Sales.
Electrical apparatus
+7.8 106.1 -9.6 +0.7
Index Numbers
Engines and pumps
-2.0 83.4 -9.0 -5.5
November Jan. 1of Sales
Hardware and tools
-19.9 88.8 -6.5 -11.1
Nov. 30
(Per Cent of 1923-25
Brass and bronze products 12
5.5 +3.2
+3.2 °77.8
Monthly Average). Compared Compared Transportation equipment
-4.8 +14.1
+25.2 120.
with Same
-13.7 66. -13.2 -17.1
October November November Period a
and parts
Auto, bodies
+21.7 65.2 -7.0 +41.1
1928. Year Ago.
Locomotives and cars
+7.6 97.4 +0.6 +18.2
Railroad repair shops..,._
+166.3 67.5 +33.9 +147.2
All reporting stores
+7.3 113.5 -2.6 +8.1
Textile products
Department stores
-5.7 75.4 -3.3 -14.1
In Philadelphia
Cotton goods
-3.5 84.7 -12.6 -2.1
Outside Philadelphia
Woolens and worsteds
+4.8 112.9 -0.8 +7.(
Silk goods
Apparel stores
-5.4 108.5 -11.6 -11.1
Men's apparel stores
Textile dyeing do finishing
+8.4 97.7 +1.6 +17.1
In Philadelphia
Carpets and rugs
+0.5 89.8 -0.6 +0.1
Outside Philadelphia
+22.1 166.6 -1.0 +20.1
Women's apparel stores
+13.8 116.1 -3.0 +8.1
In Philadelphia
Knit goods, other
+17.3 96.2 -11.8 +46.1
Outside Philadelphia
Men's clothing
-1.2 109.5 +0.1 -9.1
Shoe stores
Women's clothing
+13.9 114.6 -1.0 +14.1
Credit stores
Shirts and furnishings
+5.1 105.2 -3.4 +4.:
Stores In:
Foods and tobacco
+5.4 104.7 -2.3 +4.'
Bread do bakery products_
+12.8 118.3 -6.8 +12.1
Allentown, Bethlehem and Easton
-1.4 88.9 -8.4 +2.:
Ice cream
+2.9 107.1 -0.7 -O.
Meat packing
+2.7 104.0 -1.9
Cigars and tobacco
+0.4 80.6 -3.8 -3..
Stone. clay So glass products 68
+4.2 88.1 -3.9 +0.!
Brick, tile and pottery__
-7.2 72.8 -5.3 -10.:
+4.7 91.9 -2.3 +1.
-2.7 82.1 -3.9 -9.
Lumber products
-0.9 72.1 -3.5 -3.
Lumber and planing mills 17
-9.4 80.5 -5.7 -21.
All other cities
+0.2 135.3 +3.2 +6.
Wooden boxes
+8.8 116.0 -1.6 +10.
Chemical products
Accounts Coneer=
+4.1 99.4 -1.8 +7.
Chemicals and drugs
Stotts at End
Stocks Turnover Receivable During
+0.9 123.3 -0.5 +0.
End of Month
of Month,
January 1 to
+1.5 140.8 +2.0 +8.
Month Compared
Compared WUh
November 30
+4.6 136.0 -4.2 +2.
Paints and varnishes
+17.7 113.5 -1.8 +20.
Petroleum refining
Mo. Ago. Year Ago
1928. Year Ago. Year Ago.
+9.7 107.0 -4.6 +12.
Leather do Rubber Products 50
. +8.5 114.4 -2.3 +11.
Leather tanning
reporting stores_ _
+15.5 93.6 -14.7 +22.
Department stores _
-0.7 123.7
+9.3 -6
Leather products, other_ -5.5
In Phila
+6 8
+0.1 97.1 -2.
Rubber tires and goods
Outside Phila
+5 3
+3. 115.1 -O.
Paper and printing
Apparel stores
-0 6
+2.4 97.4 +1.
Paper and wood pulp
Men's apparel stores_
+9.7 144.5 +5. +14 9
Paper boxes and bags
In Phila
A-2 8
--1.9 123.3 --1.
Printing and publishing
Outside Phila
Women's app'l stores -3.5
• Preliminary figure.
In Picnic
Outside Phila
Shoe stores
[Compiled by Federal Reserve Bank of Philadelphia.]
Credit stores
Stores in:
Number Increase(+)or Decrease (-).
Nov. 1929 over Oct. 1929
Allentown. BethlePlants
hem dc Easton
Report- Employ-0.3
All Industries
Foundries and machinery products
Other metal manufactures
Food industries
Chemicals, drugs and paints
Leather tanned and products
+14 9
Printing and publishing
All other cities
Miscellaneous industries
• Revised.
[Compiled by Department of Statistics and Research of Federal Reserve Bank of
Decline in Wages and Employment in Pennsylvania of








Seasonal Nature-Slight Gains in Delaware.
Factory wage payments in Pennsylvania declined slightly
less than 4% from the peak of this year, reached in October,
according to 858 reports collected by the Federal Reserve
Bank of Philadelphia in co-operation with the Pennsylvania
Department of Labor and Industry. This decline is in a
measure a seasonal tendency, although the extent of the drop
was more pronounced than in the same period last year. All
reporting groups showed recession, says the Bank under
date of Dec. 17, its survey adding:
In comparison with a year ago. wage disbursements were almost 9%
larger, most of the'reporting groups sharing in this gain. Largest gains
over a year ago wore reported by the groups comprising leather and rubber
products, chemical products, and textile products.
Factory employment showed a decrease of about 2% in November which
was a little more than the usual seasonal decline. Groups representing metal


New Castle__

No. of Percentage Change Percentage Change
Nov. 1929 Since
Report- Nov. 1929 Since


+3.9 -11.1
+14.2 -10.4
--2.4 -12.0
-3.8 -18.5




Compikcl by the Federal Reserve Bank of Philadelphia and the Department of
Labor and Industry. Commonwealth of Pennsylvania.]

All manufacturing industries (47)
Metal products
Blast furnaces
Steel works and rolling mills
Iron and steel forgings
Structural iron work
Steam and hot water heating
Machinery and Parts
Electrical apparatus
Engines and pumps
Hardware and tools
Brass and bronze products
Transportation equipment
Automobile bodies and parts
Locomotives and cars
Railroad repair shops
Textile products
Cotton goods
Woolens and worsteds
Silk goods
Textile dyeing and finishing
Carpets and rugs
Knit goods. other
Men's clothing
Women's clothing
Shirts and furnishings
Foods and tobacco
Bread and bakery products- - Confectionery
Ice cream
Meat packing
Cigars and tobacco
none, clay and glass products
Brick, tile and pottery
Lumber products
Lumber and planing mills
Wooden boxes
Chemical products
Chemicals and drugs
Paints and varnishes
Petroleum refining
Leather and rubber products
Leather tanning
Leather products, other
Rubber tires and goods
Paper and printing
Paper and wood pulp
Paper boxes and bags
Printing and publishing




$.588 $27.35
.622 29.79
.576 30.91
.630 30.00
.581 26.47
.565 28.00







Group and Industry.


EmployeNo. of Hour,
Plants Change Hourly Wages. *Weekly Wages.
Report- Nov.'29
Oct.'29. Nov.

•These figures are for the 858 firms reporting employment.














11 mos.ended Nov-- 4.820.447 4,652,512 4,457,735 3,343,291 4,441,542 4,145.237
12 mos. ending Dec_
5 128,356 4,865,375 4,808,680 4,909,848 4,590,984

368.897 337,916 356,841
369.442 351,035 310.877
383,818 380,437 378,331
410.666 345,314 375,733
400.149 353,981 346,501
353,403 317,249 354.892
352.981 317.848 319.298
369,358 346,715 368,875
351,304 319,618 342,154
391.025 855,358 355.738
339,000 326.565 344,269
339.408 331.234

416,752 346,165
387,306 333,387
442,899 385,379
397,912 346,091
320,919 327,519
336,251 325,218
338.959 325,648
336,477 340,086
343,202 349,954
376,868 374,074
373.881 376,431
359.462 396,640


1 mos.ended Nov--_ 4.090.043 3,752,036 3,853.509 4.071.4263.829,950 3,276,771
2 mos. ending Dec..
4,091,444 4.184.7424,430.888 4,226,589 3,609,963

11 Mos. Ended Nov.





Excess of exports
Excess of imports






Excess of exports
Excess of imports









__ _















1,000 1,000 1,000 1.000 1,000
Dols. Dols.
Dols. Dols. Dole.
3.087 8.264 6.693 7,388 9.763
3.851 6,595 7.479 6.233 7,752
4.225 7,814 7.405 8,077 8.333
17,884 5,752 6,587 6,824
9,343 7,485 6.712 6.026 7,931
3,346 5.445 7.456 5.444 7,978
5.069 6.795 6.160 6.1350 7,921
29,743 8,522 9,246 5,590 8,041
23,081 4,374 6.229 6,627 7.243
1,156 7,314 7.252 5.945 7,279
7.727 8,676 7.674 5,634 6,794
8.489 7,186 5,610





Country's Foreign Trade in November-Imports and
The Bureau of Statistics of the Department of Commerce
at Washington on Dec. 16 issued its statement on the foreign 11 mos.end. Nov 44,036 559,123 123.606 108.512 77,037 78,892 68,438 86,647
560,760 201.455 115.708
87,382 75,625 92,258
trade of the United States for November and the 11 months 12 mos.end. Dec
ended with November. The value of merchandise exported January 48,577 38.320 59,355 19,351 8,260 6,305 5,151 5,763
28,913 14,888 22,309 25,418 4,458 4,658 3,849 8,863
in November 1929 was $448,000,000, as compared with February
26,470 2,683 16,382 43.413 6,435 5,134 4,308 5,639
$544,912,000 in November 1928. The imports of merchan- April
24,687 5,319 14,503 13.118 3,957 4.888 3.815 6,322
24.098 1.968 34.212 2,935 4.602 4,247 5.083 4,872
dise are provisionally computed at $339,000,000 in Novem- June
30.762 20,001 14.611 18,890 5,022 6,221 4,790 5,628
35.525 10.330 10,738 19.820 4.723 6,544 4,288 5,949
ber, as against $326,565,000 in November the previous year, August
2,445 7,877 11,979 7,345 6,496 4,856 5,988
18,781 4.273 12,979 15,987 4.111 6,739 4,992 7.203
leaving a favorable balance in the merchandise movement lePtember
21,321 14,331 2,056 8.857 5,403 7,319 5.069 5,098
for the month of November 1929 of $109,000,000. Last year govember
7,123 29,591 2,082 16,738 5,143 5.448 5,102 3,941
24,950 10,431 17.004
5.120 3.770 4,430
in November there was a favorable trade balance on the December
1 mos.end. Nov 285.528143.947 197,104 196,502 59,460 62,998 51,303 65,166
merchandise movement of $218,347,000. Imports for the 2 mos. end. Dec
168,897 207,535 213,504
68,117 55,074 69.596
11 months of 1929 have been $4,090,043,000 as against
$3,752,036,000 for the corresponding 11 months of 1928.
Lippitt Woolen Company's Woonsocket Plant to Close
The merchandise exports for the 11 months of 1929 have
Down Indefinitely-Work Slack.
been $4,820,447,000, against $4,652,512,000, giving a favorFrom the Providence "Journal" of Dec. 19 we take the
able trade balance of $730,404,000 in 1929, against a favorable trade balance of $900,476,000 in 1928. Gold imports following:
An Indefinite shutdown of the Lippitt Woolen
totaled $7,123,000 in November, against $29,591,000 in the Woonsocket, one of the oldest textile plants inCo.'s plant on Main St.,
or near that city, was
corresponding month in the previous year, and for the 11 announced yesterday.
T. Harold Merriman, Agent and Treasurer of the company, stated that
months were $283,528,000, as against $143,947,000. Gold work in several
departments is slack at present and it was deemed advisable
exports in November were $30,289,000, against $22,916,000 to close the mill and take an Inventory.
Mr. Merriman said it was impossible to say how long the plant will be
in November 1928. For the 11 months in 1929 the exports
but he intimated
of the metal foot up $44,036,000, against $559,123,000 in Closed,No information that it would undoubtedly re-open the first of the
could be obtained as to how many departments or
the 11 months of 1928. Silver imports for the 11 months employees would be affected by the shutdown.
Two Fall River textile corporations have ended their careers recently.
of 1929 have been $59,460,000, as against $62,998,000 in
Directors of the Cornell Mills, in a letter to the stockholders
1928, and silver exports $77,037,000 as against.$78,892,000. advised liquidation of that company to conserve the assets. Theyesterday.
Linen Co. and the Bourne Mills have already authorized liquidation.
Following is the complete official report:
(Preliminary figures for 1929 corrected to Oct. 14 1929.)

11 Months Ended Nov.


Excess of exports
Excess of imports














Incandescent Lamp Sales in 1929.
Sales of incandescent lamps in the United States during
1929 were approximately 340,000,000 large and 292,000,000
small lamps, according to a review of the electrical industry
for the year by John Liston of the General Electric Co.
This, it is stated, is an increase of 18,000,000, or approximately 51%, in the large sizes over the previous year, and
an increase of 37,000,000, or 14%%, in the small sizes. Mr.
Liston says:

DEC. 28 1929.]


"These 1929 sales exceed all previous figures, being the largest in the
history of the industry. On March 1, 50- and 60-watt standard lighting
lamps of the 115-volt group were reduced in list price from 22 to 20c.,
so that the 20e. price now covers all the generally used lamps up to and
including the 60-watt size. The price trend for lamps has been downward
for a number of years; the present prices being leas than half the so-called
pre-war figure.
"Compare this with the present cost of living, which is now 60% above
the pre-war level, a peak of 100% increase having been in effect during
1920. While the average prices of lamps did go up during the post-war
period, their increase was less than one-tenth that of the increased cost of
living during the same period."


While the volume of industrial employment has registered a decline
during the last two consecutive months, the level remains above that. of a
year ago. The gain for all reporting industries amounts to 3.3%, while
for manufacturing alone it is somewhat higher, 4.4%. Payrolls increases
3.6% at the factories but were slightly lower, 0.9%, in all industries, for
the year.
The volume of unemployment is considerable, with an average of 181
applicants for every 100 positions available at the 14 free employment
offices of the State, the ratios ranging from 107 in East Bt. LOtliti to 251 in
Cicero and from 123 for casual workers to 372 for clerical workers. The only
city in which the unemployment ratio was lower than for the preceding
month was East St. Louis and the only reporting industry for which this
was the ease was printing.

In his analysis of the industrial situation by cities, Mr.
Opposition to Chain Stores.—Alabama Attorney General Myers says:
Who Seeks Governorship Joins Fight.
Almost all cities throughout the State felt the effects of the industrial
Attorney General C. C. McCall, a candidate for Governor depression, the decline in factory employment ranging from less than 1%
in Aurora, Moline, and Quincy to over 10% in Cicero and Decatur.
of Alabama in the 1930 Democratic Primary, on Dec. 26 were some exceptions, however, Chicago factories employing as There
workers as in October and Danville reporting a 1% increase. The demand
declared himself against "the continued unregulated growth for
farm labor has been unusually light this season, in some cases due to the
of foreign chain stores in Alabama," according to an Asso- use of corn-husking machinery, and at the close of November this work was
ciated Press dispatch from Montgomery, Ala., dated Dec. discontinuedcompleted. Much of the road construction work has also been
and a large volume of common labor is idle, presenting a
26 and appearing in the New York "Times" for Dec. 27. serious unemployment problem in pratically every large city of the State.
Extensive construction programs have been planned in a number of thews
The dispatch went on to say:

Industrial Situation in Illinois During November—
Employment and Wages in Manufacturing Industries Declined—Increased in Other Lines.
The review of the industrial situation in Illinois during
November states that "employment declined 1.1% in the
manufacturing industries and increased 0.4% in the nonmanufacturing industries, the aggregate loss for the month
amounting to 0.6%. Payroll totals decreased 4.3% in manufacturing, gained 2.4% in other industries, the aggregate
falling off 1.7%." The summary of employment and industry, made available Dec.20 by Howard B. Myers, Chief
of the Bureau of Statistics and Research of the Illinois
Department of Labor, goes on to say:

to meet the situation.
Aurora.—While most industrial plants were working full time With employment as large as the preceding month, a reduction by several metal
industry concerns caused a decline of 0.6% in aggregate employment.
Building and outdoor activities were practically at a standstill, thus increasing the existing common labor surplus. Reflected by the ratio of registrations for work to positions available at the free employment office, the
volume of unemployment was 8% larger than in October. Contemplated
building, however, is greater than for some months past, especially the
non-residential type, which may gradually relieve the situation.
Bloomington.—A decline of 5.6% in employment reported for October
was followed by a further curtailment of 5.1% in November. Foundries
were On full-time schedules but a number of other industries were reducing
hours and laying off men. Some of the railroad shops have been clewed
part of the time and are not expected to operate steadily until early next
year when new appropriations for maintenance work will be available. An
increase in wages / and 2 % per hour according to the length of service
—has been granted motormen and conductors employed by the street car
company, settling the controversy in progress since May 29. The demand
for farm labor for corn husking has been light and the free employment
office reports a surplus of common labor and an increase in unemployment.
Chicago.—Activity in the printing industry and in the manufacture of
clothing and some food products offset declines in other industrial lines,
so that factory employment as a whole escaped the general depression.
Payroll totals followed the downward trend which was general throughout
the State. Owing to the unusually early cold weather and a large influx
of floating labor, the unemployment ratio at the free employment office
rose from 159 to 224, an increase of over 40% and more than 45% over
the ratio a year ago.
Cfcero.—A number of plants suspended operations entirely and others
operated only part time and with reduced forces, causing a large surplus
of both skilled and unskilled labor The strike in the cleaning and dyeing
industry aggravated the situation There were 251 applicants for every
100 Jobs at the free employment office compared with 207 in October and
and 191 in November a year ago. Construction work was inactive but
there was some gain in the estimated value of the building permits.

The losses in manufacturing industries were general, but two of the
groups registered gains, the printing and paper goods and the clothing
and millinery. In the non-manufacturing lines public utilities, and wholesale and retail trade registered galas.
The volume of employment continues above that of a year ago
for manufacturing and 3.3% for all reporting industries.
The ratio of applicants to each 100 available positions at the free
employment offices of the State was 181 compared with 147 a month
earlier, and 144 a year ago.
Industrial activity in the State showed a recession during November,
manufacturing plants throughout all sections and in most industries reporting a smaller number of workers and lower payrolls than a month
earlier. The decline in factory employment averaged 1.1% and in Payrolls 4.3%. Armistice Day was observed as a holiday by a number of
plants and accounted for some of the reduction In payroll totals, but shorter
time schedules and partial shut
-downs were mainly responsible for the
heavy decline in this item. An increasing activity in department stores
and mail-order houses where the needs of the holiday trade demanded
more workers, offset some of the loss in manufacturing so that the aggregate decline for all reporting Industries, non-manufacturing as well as
manufacturing, was not more than 0.6% in employment and 1.7 in payrolls.
Another group registering gains during the month was the public utilities,
where employment increased very slightly, 0.3%, and payrolls advanced
4.2%. Factory operations were expanded in the Industries classified as
printing and paper goods, and clothing and millinery. In the printing
and paper goods group the highly seasonal activity of addition bookbinding
and the continued demand for paper containers, were entirely responsible
for the 9.1% increase in employment, and the 6.8 rise in payrolls. Increased activity in the manufacture of clothing occasioned a gain of 6.1%
In the number of persons employed, but was not sufficient to raise the
payroll totals which decreased 1.2%. The millinery trades included in
this group showed the usual heavy decline for the season.
While all other major industrial groups shared in the downward trend
for the month,reports from a number of industries included in these groups
were contrary to the prevailing trend. The most pronounced of these increases were registered by pianos and musical Instruments in the wood
products group; by furs and miscellaneous leather goods in the furs and
leather group; and by meat packing under food, beverages and tobacco.
Cement and glass factories showed a slight gain but this was counteracted
by the greater losses of the stone and brick industries. Under metals,
machinery and conveyances, the only exceptions to the downward trend
were furnished by tools and cutlery, and the manufacture of watches and
Jewelry. Agricultural implements registered a gain of 0.2% in men, but
payrolls declined 3.0%. Leather tanning and the manufacture of boots
and shoes registered some of the heaviest losses in both employment and
payrolls. The aggregate decline in the food products group was due to
the seasonal declines in the canning industry and in the manufacture of
ice and ice cream. Groceries, bread products, and cigars as well as meat
packing expanded operations. In the coal mining industry, the number of
men employed remained practically unchanged but payrolls decreased 7.8%
due to shorter working time. The building and contracting industries
declined as a whole, due to the heavy drop in road construction work, but
building construction showed a 3.6% increase.

Danville.—An increase of 1.0% in factory employment and 0.9% in
payroll totals interrupted a decline of several months previous, and also
furnished a contrast to the general trend in the State. Brick yards were
working five days a week, coal mines from one to four, and most other
industries full time but with reduced forces. Unemployment was on the
increase, with 172 applicants for every 100 jobs offered at the employment office. The demand for corn huskers has declined as most of the
farmers have finished bringing in their crops. The surplus consists of
common labor with a large number of floaters.
Decatur.—There was a heavy curtailment in employment, with automobile
accessories and foundry and brass industries working part time only.
Those still on full time schedules were the corn products, boiler and steel
tanks, farm implements and most branches of the railway industries. There
was an increase in the number of men seeking work, the public employment
office registering a ratio of 166 applicants to 100 openings, compared to
146 last month. A large building and construction program, including
several office buildings and a large sewer project, is in progress, relieving
the unemployment situation to some extent.
East St. Louis.—While one plant laid off its men and aggregate employment in the factories went down 2.8%,most of the industries were operating
on full time and there was no increase in the general unemployment ratio.
The unfavorable weather has caused building activities to slow down but it
Is reported that the construction of an addition to an industrial plant and
some street improvements will soon give employment to a large number of
Joliet.—A shortage of skilled labor, first-class mechanics. lathe hands,
and tool and die makers was reported by the free employment office. The
use of husking machines reduced the demand for farm labor this fall and
there is a considerable surplus of common labor. The ratio of applicants
to positions stood at 157. an increase of 11% over the October figure. The
decline in industrial employment amounted to 4.0%. There are indications that building projects will be pushed so that few workers in the
building trades will be Idle this winter.
Peoria.—Several industrial plants that have been working part time
expect to resume normal operations soon and even to increase their payrolls.
Factory employment for the month declined 3.4%. A number of large
building projects are under way and more are in prospect. The unemployment index reflected less than a 1% increase over last month. Skilled
workers, tool makers, designers, molders and pattern makers are in demand.
It is reported that some of the striking rallwoad employees have returned
to work and others have been replaced,
Quincy.—Employment in the factories, which was appreciably curtailed
during October, showed little change in November. Most of the factories,
such as the pump, and tractor and wheel concerns, continue to work on
curtailed time schedules, but some have returned to normal hours. Both
building and road construction are reported to be still active. The corn
husking season is practically over and the demand for help has been light
due to a poor crop in this section. The number of applicants to each 100
available positions at the free employment offices increased from 133 to 149.
Moline.—Factory employment showed a slight decline. 0.5% In both
number of employees and payrolls, but the level was above that of a year
ago. Estimated cost of building authorized by the permits issued during

Be took this stand after receipt of a telegram last night from W. E.
Henderson, operator of radio station EWICH at Shreveport, La., and
Governor Hury P. Long of Louisiana, requesting him to aid in the
fight being waged by the Louisiana Governor and the radio station
against chain stores.
"I am with you and Henderson in your fight against the domination
of our economic life by this menace," the Attorney General replied in
part, "and I am convinced that the continued unregulated growth of
foreign chain stores in Alabama and other States will surely tend to
destroy individualism and independent business through slowly bleeding communities of profits which otherwise would be used by independent
or domestic agencies to build up communities.
"I am opposed to putting business in Alabama in the hands of outsiders and its earnings into the hands of a group of Wall Street
financiers who do not and will not help build up my State."



[VOL. 129.

the month was higher than in October, and mostly for non-residential
International Paper Co. Notifies Publishers Price of
construction work.
$55 For Newsprint Will Be Kept For First Half of
-There was a general decline in industrial activity in Rockford
during November, few plants working full time. Factory employment
1930-Chairman of Newsprint Institute of Canada
Seasonal conditions were
declined 4.1% while payrolls went down 8.4%
Says $60 Will Stand Unless Market Conditions
responsible for a decrease in activity in the building and other outdoor
trades. There was some surplus of skilled as well as common labor. The
unemployment ratio increased from 112 in October to 120 in November.
The International Paper Co. announced on Dec. 21
Rock Island.
-While the curtailment in factory employment was general,
through the American Newspaper Publishers Association
plants reporting a drop of 4.7%, some of the larger plants were operating
full time, and one of them has enlarged its plant and has been employing that the present price of $55.20 a ton for newsprint would readditional workers. The unemployment ratio increased 40% but was not, main unchanged for the first six months of 1930. The anhowever, so large as a year ago. Construction work assisted materially
nouncement said there would be no increase after that date
in reducing the number of men that are idle.
-A decline of 5.9% in factory employment reported for the unless a notice of at least thirty days was given to the newsSpringfield.
month was ascribed to the closing of a radio equipment company. Other paper publishers. Advices to this effect appeared in the
plants were operating normally and men were busy on building and other
New York "Times" of Dec. 22, from which the following is
outdoor work with a prospect of steady employment if the weather permits.
There was a slight shortage of highly skilled mechanics, but some also taken:
surplus of common labor.
At the same time the special newsprint committee of the publishers'
-Factory employment fell off 3.4% and payrolls association received a telegram from C. It. Whitehead, Chairman of the
Sterling-Rock Falls.
were 3.9% smaller than the preceding month. Here as in other cities, Board of Governors of the Newsprint Institute of Canada, saying that the
price of $60 a ton for newsprint recently decided on by some of the larger
there was an increase in the surplus of common labor.
Canadian newsprint manufacturers would remain unless conditions of the
The statistics follow:
market changed in the near future. The American association and pubCOURSE OF EMPLOYMENT AND EARNINGS IN ILLINOIS DURING lishers not members of the organization have been opposing the attempts
of the Canadian paper manufacturers to increase the price to $60 a ton and
recently held an emergency convention here to discuss the situation.
At the convention the publishers charged that the newsprint manuEarnings (Payroll).
facturers were violating the inter-state commerce and the anti-trust laws in
Index of
their concerted action in fixing the price of newsprint. The officials of the
Per Cent
publishers association were asked at the convention to look into the advisPer Cent Earnings
ability of asking a Federal investigation.
from a 1925-27=100). of Choc Nov. 1929.
Announces Retention of Price.
Apo. Nov. Oct. Nov. Oct.
Po1929, 1929. 1928. 1929. Males. males.
The action of the International Paper Co. to continue its present price
for the ensuing six months and the announcement of the Canadian manu5
-0.6 101.9 102.5 102.5 d-1.7 d32.21 d18.94 facturers was made public by W. G. Chandler of the Scripps
All industries
- -1.1 102.7 103.8 96.4 e-4.3 631.14 617.08 newspapers, Chairman of the Newsprint Committee of the publishers'
All manufacturing
-2.7 86.9 89.3 119.7 -5.0 30.79 14.07 association. Mr. Chandler said:
-10.3 87.0 97.0 96.5 -19.0 28.51 13.00
Miscellaneous stone-mineral
"Following a meeting with the special paper committee of the American News+1.4 73.8 72.8 107.8 -3.1 27.85 16.80
-2.4 72.2 74.0 101.7 +0.4 32.16 13.79 paper Publishers Association, the International Paper Sales Co. sent the following
+0.5 107.4 106.9 148.7 -4.9 31.24 14.11 telegram to all their customers to-day.
'You are aware that the extension of time for our 1930 price notification under
Metals-machinery-conveyances- -2.5 112.5 115.4 111.6 j-5.7 131.45 118.44
115.7 118.4 125.7 -2.5 31.42 15.29 our newsprint contract with you expires at the end of the month. We are sure that
Iron and steel
87.7 92.1 100.3 -7.1 30.01 17.42 You understand the difficultues of the situation. We hereby agree that your price
Sheet metal work
0.0 86.5 86.5 84.0 +2.2 31.91 14.25 for the first six months of 1930 will remain the same as in 1929 and that this price will
Tools and cutlery
Cooking & heating apparatus_ -1.6 105.7 107.4 108.7 -7.0 31.91 16.56 continue in effect through the year 1930 unless we give you not less than thirty days'
Brass-copper-zinc and other_ _ -10.9 109.3 122.7 152.8 -15.0 29.68 18.20 notice of increased price, to be effective at any time after June 30 1930. J. L.
-0.3 66.1 66.3 37.8 -4.3 34.14 23.15 wire acknowledgement to the International Paper Sales Co., Inc., attention
-14.5 114.9 134.4 132.5 -9.5 31.62 20.23 Fearing, President, 100 East 42nd Street.'"
-1.7 126.3 128.5 146.2 -3.1 30.67 18.39
Canada Action To Stand.
-0.7 131.6 132.5 118.5 0-20.4 033.28 020.94
Electrical apparatus
+0.2 126.3 126.0 148.9 -3.0 28.77 14.93
The communication from Mr.Whitehead as made public by Mr.Chandler
Agricultural implements
-12.7 84.5 96.8 95.3 -11.7 31.24 19.41
Instruments and anallances
was as follows:
+2.9 97.8 95.0 111.9 +11.6 34.01 17.37
"The Paper Committee of the American Newspaper Publishers Association has
- .9 27.97 16 4
3 48
All other
received the following message from C. R. Whitehead. Chairman of the Board of
-1.1 76.7 -7-7-.;
-9.6 27.65
Wood products
Governors of the Newsprint Institute of Canada.
-6.6 71.0 76.0 93.5 -13.3 30.25 8.36
Saw-planing mills
"'Careful consineration of your committee has failed to shake our faith in the
-1.1 84.2 85.1 98.2 -10.8 27.51 14.64
Furniture-cabinet work
89 announced and which remains unchanged unless conditions of
Pianos-musical lustruments- +7.6 63.6 59.1 83.7 +2.1 30.20 12.80 fairness of our priceIn the near future.'"
Miscellaneous wood products_ -0.9 76.8 77.5 51.7 -8.8 23.77 12.11 the market change
-5.3 99.1 104.6 100.5 -18.9 22.06 9.19
leather goods
Mr. Chandler said the following telegram was sent In reply:
Funs and
-7.8 94.3 102.3 84.2 -10.7 31.20 15.95
"Your message has been received and Is being relayed to the newspaper publishers
+2.9 127.1 123.5 81.8 -3.9 51.03 35.69
Furs-fur goods
States and Canada. This Committee is convinced that the con-5.0 103.1 108.5 106.3 -22.7 13.74 7.78 of the United market mentioned in your wire will soon be so affected by economic
Boots and shoe]
- +3.7 61.1 58.9 49.3 +0.7 27.64 15.94 ditions of the you will recognize the inexpediency of your advance in the price of
Miscellaneous leather goods
changes that
-0.2 99.7 99.9 122.5 -1.7 29.94 15.64 newsprint during 1930."
+0.9 82.6 81.9 93.4 +0.5 27.55 14.58
Conference Not Held.
-1.9 97.8 99.7 130.0 -5.3 27.80 16.69
-0.7 92.1 92.7 124.6 -1.8 30.77 16.82
Mineral and segetabie oil_
The members of the Canadian Newsprint Institute committee were
-12.0 119.6 117.3 147.7 +1.3 30.76 14.77
Miscellaneous chemicals
of the American Newspaper
+9.1 108.2 99.2 117.8 +6.8 38.54 18.78 to have mot with the neswprint committee
Printing and paper goods
+2.6 103.8 101.2 148.4 -1.7 28.84 16.77 Publishers Association on Friday, but the meeting was not held. Mr.
Paper boxes-bags-tubes
-3.6 104.7 108.6 131.3 -3.5 34.08 17.71 Chandler was notified that inasmuch as the Canadian committee was of
Miscellaneous paper goods_
-0.5 91.9 92.4 110.2 +0.7 39.71 19.63 the opinion there would not be any change from the decision of the newsJob printing
-7.4 103.4 111.7 136.0 -8.4 45.90 26.02
+116.0 ------------+102.5 39.04 19.71 print manufacturers there to increase the price $5 a ton, it was
Edition book binding
+2.4 50.20 23.42 inadvisable to come to Now York for the conference.
Lithographing and engraving_ -0.1
1017." foie -4.3 27.36 15.54
The members of the Canadian committee in addition to its Chairman,
+1.7 109.2 107.4 144.4 +4.3 23.66 16.67 Mr. Whitehead, are as follows:
Cotton-woolen goods
+4.9 91.2 86.9 87.0 -4.0 29.35 12.67
Knit goods
-1.3 96.2 97.5 76.8 -1.0 23.90 18.96
George Chahoon Jr., Canadian Power & Paper Corp.
-8.1 114.0 124.1 104.4 -8.1 29.11 16.24
Alexander Smith.
Miscellaneous textiles
+6.1 83.7 78.9 57.8 -1.2 28.93 16.13
Clothing and millinery
Robert T. Houk Jr., Abitibi Power & Paper Co.
+7.7 74.9 69.5 45.6 +0.5 28.53 17.35
Men's clothing
E. L. Crooker, St. Maurice Valley Paper Co.
+3.0 70.8 68.7 103.3 +0.9 34.47 20.02
Men's shirts-furnishings
+14.8 81.8 71.4 62.7 +25.1 28.23 18.25
The committee representing the American Newspaper Publishers AssociaOveralls-work clothes
-1.4 92.0 93.3 53.1 -2.2 29.50 19.48 tion is as follows:
Men's hats
+8.4 101.5 93.6 111.2 -6.6 34.19 15.20
Women's clothing
Edward H. Butler, Buffalo "Evening News."
+0.7 141.4 140.4 105.7 -5.0 26.61 10.75
Women's underwear
W. G. Chandler, Scripps
-Howard Newspapers.
-39.6 34.5 57.2 45.4 -39.4 31.66 16.98
Women's hats
-0.7 95.5 98.2 91.6 -2.2 29.55 18.29
It. C. Hollis, New York "Daily News."
-6.2 86.3 92.0 95.4 -18.3 28.79 11.28
Howard Davis, New York "Herald Tribune."
-27.8 13.8 19.1 7.6 -32.5 19.82 11.75
Fruit-vegetable canning
Paul Block, Paul Block Newspapers.
+1.4 196.5102.1 98.9 -7.0 34.65 14.83
Miscellaneous groceries
+1.7 105.6 103.8 91.4 +2.6 27.97 21.15
J. D. Barnum, Syracuse "Post
slaughtering-meat Packing-9.0 102.1 112.2 93.4 -8.8 38.07 15.97
E. P. Adler, Davenport "Times."
Dairy products
+0.4 92.2 91.8 82.5 -1.4 34.14 16.88
Bread-other bakery products_
Charles H. Taylor, Boston "Globe."
-9.1 96.5 106.2 82.0 -8.9 30.40 14.68
F. I. Her, Hamilton "Spectator."
-2.9 72.2 74.4 65.0 -0.2 28.96 12.35
+0.7 96.1 95.4 87.1 -16.7 23.51 18.25
George M. Rogers, Cleveland "Plain Dealer."
Cigars-other tobaccos
-19.8 53.1 68.2 56.6 -9.3 48.13
Manufactured Ice
F. J. Burd, Vancouver (B. C.)"Daily Province."
-5.6 -------------12.0 48.43 2;2;10
Ice cream
Gardner Cowles, Des Moines "Register-Tribune."
-19.4 28.81
Miscellaneous manufacturing
J. S. Parks, Fort Smith (Ark.) "Times
+2.4 34.42 20.84
+3.2 33.77 21.29
Charles A. Webb, Asheville (N. C.) "Citizen."
+1.6 36.23 18.37
+0.5 109.0 108.5 128.1
88.8 89.3 62.2 -3.5 24.87 21.59
From Quebec Dec. 21 the "Times" reported the following:
Wholesale dry goods
-5.4 88.8 93.9 95.1 -5.7 27.98 16.67
Wholesale groceries
+3.5 95.0 91.8 93.7 +7.2 25.55 37.07
Little Surprise in Canada.
Mail order houses
-1.2 49.27
-0.7 _Milk distributing
News that the International Paper Co. had decided not to increase the
---1.8-------------2.5 36.70 27.52
Metal lobbing
+0.0 -------------0.3 22.48 15.67 price of newsprint for another six months caused no great surprise here.
+2.5 21.55 16 25 It was said that the action will moan only that all newspapers will pay
5 15
10.b122:5 +1.1 26.62
a ton for newsprint on July 1 instead of some of them paying it then
+0.3 107.2 106.9 139.2 +4.2 36.50 21.36 $60
Public utilities
+0.7 126.7 125.8 149.5 +0.7 34.86 24.05 and others immediately, since the majority of the Canadian
-0.2 115.2 115.4 135.6 +2.2 41.96 21.28 manufacturers have indicated that the price on newsprint would be inTelephone
+0.5 100.1 99.8 108.3 +10.0 37.28 17.71 creased on July 1. Price Brothers & Co., possibly the largest producers
Street railways
+0.6 82.9 82.4 53.5 +3.3 31.88 22.35 in Canada, informed their customers last week that they were increasing
Railway car repair
-0.2 78.9 79.1 60.9 -7.8 26.87
Coal mining
the price of newsprint from $55 to $60, but added that those signing a
-2.2 91.3 93.4 140.7 -1.8 43.96
Building and contracting
three-year contract would get a $5 cut for the first six months, which
+3.6 78.0 76.3 98.8 +3.0 43.53
Building construction
-30.5 101.5 148.0539.1 -19.5 41.41 --__ would make the $60 rate effective July 1.
Miscellaneous contracting-- -18.2 121.8 148.9239.4 -16.1 48.44
The decision reached by the board of directors of International Paper
is looked on as the outcome of the conference held in Montreal on Thursday.
a Includes firms not reporting by sex. d Figures based on payro Is for 383,697
and of which
employees-274,422 mules, 77.745 females and 37.530 not separated as to sex. to which officials of the Province of Quebec were not invited
e Figure based on payrolls for 234,551 employees-184,841 males, 36,193 females, it was not officially advised.
payrolls for 123,313 emand 13,517 not separated as to sex. I Figures based on
We likewise take from the "Times" the following Montoloyees-107,701 males, 12,728 females, and 2,884 not separated as to sex. 0 Figures
based on payrolls for 10,874 employees--7.596 males, 2,638 females, and 640 not real dispatch Dec. 21:
separated as to sex.

Canadian newsprint manufacturers have a new problem before them
as a result of the decision of International Paper Co. to continue to accept
the old price for at least six months longer. With International Paper
so large a factor in newsprint production in Canada. it is admitted by
interested parties here that it will be difficult for the other Canadian
manufacturers to maintain their stand for an increase of $5 a ton. While
the terms offered by these manufacturers included the six-month concession, it was only on condition that publishers signed up for three years,
with the increase operative from the July 1.
The Canadian manufacturers made no official announcement here
to-day of any change of front, although it has been recognized that the
position taken by International Paper was a vital part of the problem.

Canadian November Output of Newsprint Gains
-Production in Dominion for 11 Months 2,495,628 Tons, Against 2,173,498 Tons in Same Period
The following is from the Montreal "Gazette" of Dec. 14:
Following upon a very favorable report issued by the Newsprint Service
Bureau, the November figures of newsprint production in Canada are even
more favorable. Total output of Canadian mills was 252,046 tons, or
slightly over October output of 251,914, in spite of the latter being a longer
working month. As in October, shipments from the mills were well ahead
of production, amounting in November to 253.219 tons.
The ratio of production to installed capacity was higher in November
than in the previous month, amounting to 91.2%, the second time this
year that this ratio has risen above 90%. The ratio for October was 88.8%•
During the first 11 months of the present year, Canadian mills produced
322,130 tons more than in the first 11 months of 1928, showing an increase
of 15% United States mills in November produced 113,729 tons and shipped
some 3,000 tons more than this, 116.726 tons. During the 11 months
United States output was 19.177 tons, or 1% less than for the the first 11
months of 1928. U. S. mills last month operated at 77.6%. Mills in
Newfoundland operated at 108 1% during November, producing 22,151
Total Canadian output for the 11 months of this year was 2,495,628
tons as compared with 2,173,498 for the same period in 1928: and with
1,900,513 tons for 1927, 1,714,020 tons for 1926, and 1,385,234 tons for
1925. Total production of United States mills for the 11 months was
1.274,486 tons as compared with 1,293.663 for the same period in 1928:
1,365,988 for the 1927 period: 1,542,415 for 1926, and 1,393.637 tons for
Total North American production for the 11 months was 4,021,894 tons
compared with 3,694,489 for the same period in 1928, and with 3.464,646
for 1927.
Stocks on hand at Canadian mills at the end of November amounted
to 28,891 tons and at United States mills to 23,549 tons, a total of 52,440
This is equal to only a little more than three days' average protons.
duction, and is well down below the total shown at the end of October.

Canadian Pulp and Paper Exports in November
Amounted to $17,952,008-Increase of $56,000 over
October Figures-Gain of $1,100,000 over November 1928.
Exports of pulp and paper from Canada in November were
valued at $17,952,008, according to the report issued by the
Canadian Pulp & Paper Association. This was an increase
of $56,000 over the total for October and of $1,100,000 over
November 1928, says the Montreal "Gazette" of Dec. 21,
from which we also take the following:
Wood-pulp exports for the month were valued at $4,152,432 and exports
of paper at $13,799.576, as compared with $3,703,414 and $14,192,737
respectively in the previous month.
Details for the various grades of pulp and paper are as follows:
November 1929.
Sulphite bleached
Sulphite unbleached
1300k (cwts)
Writing (cwts.)•
All other


November 1928.














For the 11 mouths ending Nov. 30 1929 the total value of pu p and Paper
exported from Canada amounted to $181,466,226 as compared with a
total of $174,756,988 for the corresponding months of 1928, an increase for
this year of $6,709,238.
Exports of the various grades of pulp and paper for the 11 months are
as follows:
11 Months 1929.
Sulphite bleached
Sulphite unbleached
Book (cwts.)
All other

11 Months 1928.









2,290,462 135.662,449 1,993.425 127,694,880


pulpwood exports have been smaller this year than for severe years past
The total shipments in the first 11 months of the year amounted to 1,227,879
cords valued at $12,619,783 as compared with 1,482,598 cords valued at
$15.805,576 exported in the corresponding months of 1928.



DEC. 28 1929.]

Compilation by Thermoid Company Shows Total Investment in Automobiles Exceeds Railroads' Capitalization, While Railroad Mileage Has Decreased.
The total investment of the American public in automobiles now in use is slightly greater than the entire par
value capitalization of the railroads in stocks and bonds,
according to a comparison by the Thermoid Co. "At the
beginning of 1920 there were 24,500,000 automobiles in use
in the United States," said R. J. Stokes, President, in explaining how his company had arrived at this conclusion.
"Estimating that the original delivered and equipped cost
to the public averaged $750 per car, this represented an
investment of over $18,000,000,000 (18 billion dollars). The
average life of an automobile is less than seven years, so
that this figure is rendered still more impressive as it
represents expenditures for new cars alone since 1922."
Mr. Stokes went on to say:
"On the other hand, the total par value capitalization of all the railroads
in the United States is slightly less than this current investment in
automobiles, although the former transportation medium antedates the
automobile by three-quarters of a century.
"The automobile industry has grown at a tremendous pace. In 1895
there were only four cars in operation in the country, while in the same
year there were 180,657 miles of railroad track laid. This mileage
increased 40% by 1927, but surfaced highway mileage, due to the automobile, rose much more rapidly, increasing from 400,000 to 625,000 miles
from 1924 to 1927 alone, or more than 50%.
"During the last three years railroad mileage actually decreased from
250,156 miles in 1924 to 249,131 miles in 1927. In addition, passenger
traffic fell off 4,500,000,000 passenger miles. The competition of automobiles and buses was a major factor in this."

Another comparison made by the Thermoid Co. is in the
amounts of money spent on upkeep. To quote Mr. Stokes:
"Even if we assume that the total revenue of the railroads was spent for
upkeep, the automobiles would still show a higher figure. In 1928 total
gross railroad revenue was $6,178,000,000, while the public spent $6,649,500,000 for automobile brake linings, tires, fuel, oil, replacements, repairs
and other upkeep essentials, or at the rate of $271 for each car.
"These facts indicate the stability of the automotive replacement parts
industry, especially when it is remembered that since the first automobiles
were placed in use there has been an increase every year in the number
of cars registered and never a decrease. The replacements Industry is
both permanent and stable, and such parts as tires and brake linings are
as essential to the country's transportation as shoes for pedestrians."

New Automobile Models and Price Changes Announced.
The Chrysler Corp. on Dec. 20 announced price increases
of $20 to $100 on models "77," "70," "66" and Imperials
effective Jan. 1.
Ford dealers in the metropolitan district of New York City
are being given their first view of the new Ford line of
passenger cars which will be officially announced on Jan. 1.
The new models will be priced identically with the corresponding types of the current model "A" line and the changes in
construction are only minor ones it is stated. There are no
important changes in the chassis or engine. The outstanding
changes are in the body, wheels and tires and these have not
been radical enough to materially alter the appearance of the
car. The radiator of the new line is slightly higher and this
tends to give a more stream-line effect and helps to further
conceal the gasoline tank in the cowl. The fenders have been
moderately changed and the wheels are slightly smaller in
diameter but take wider tires. The plants already are in
fair volume production on the new line and by January it is
expected that output will be at the rate of upwards of 5,000
cars a day.
The Oakland division of the General Motors Corp. last
week announced the new eight-cylinder "V" type motor at
prices ranging from $80 to $150 less than present six-cylinder
models. Prices (factory f. o. b.) are as follows:
-door sedan
C 2
I-door sedan
Sports coupe
Customs sedan
Phaeton touring

New Model.

Present Model.

The Moon Motor Car introducing its Windsor White
Prince 1930 models in two lines, both offered in 6 body types.
Both lines are powered with eight-in-line engines developing
86 horse-power. Price range on the series 8-85 is from
81,695 to $2,045 and on the series 8-92 from $1,945 to
Automotive Parts Industry Slows Up As Year Ends.
Manufacturing operations in the parts-accessory industry
declined in November and have continued a seasonal recession in December, as was expected. The business of
automotive wholesalers was also lower, but is still considered generally good, according to the Motor and Equip-



[Vol. 129.

ment Association. Output in the industry, it is stated, will producers were in
comparatively the same economic straits
probably resume a moderate upward trend early in the new as the farmers, and
that, therefore, it
year. The extent of the falling off is outlined as follows: of the question for a Governmental should not be out
agency to exercise
Aggregate shipments in October of a large and representative control over the producing division
of the industry. Mr.
group of manufacturers in the M. E. A. were 90% of the January,
1925 base as compared with 156 in October and 150 in November Squier, while stating that he did not want to tear down
any structure in the industry, urged that the Ohio oil men
a year ago.
Parts and accessory makers selling their product to the car and place themselves on record as favoring his
plan. Such
truck manufacturers for original equipment made shipments
aggregating 81% of the January, 1925 base figure as compared with action was not taken, it being the consensus of the members
that the executive members of the association study the
160 in October, and 163 in November, 1928.
Shipments to the trade in November by makers of service parts proposal more closely.
were 135% of the 1925 base as compared with 166 in October and
Mr. Squier, in making his proposal, stated, "Under this
149 in November a year ago.
Accessory shipments to the trade in November were 75% of the system, if there was overproduction anywhere, the GovernJanuary, 1925 base as compared with 91 in October and 78 in ment would soon be able to see it, and would be in a position
November last year.
to say to the producers, 'Hold on there, you are going too
Service equipment shipments, that is repair, shop machinery and
tools were 113% as compared with 147 in October and 122 in fast.' The Government would therefore be in a position
to effectively stop overproduction." It was Mr. Squier's
November, 1928.
Business of wholesaler members of the Association was considered general idea that the Government provide a general revolving
good in November and was only moderately below October. Acfund, from which the producers would be paid for their
counts receivable showed a drop from October.
production when run to the Government tanks, and which
Fall River Loses 40% of Its Cotton Mills in 10 Years. would be replenished by refiners when they bought their
supplies of crude.
The following is taken from the Dec. 19 issue of the "Daily
The situation in Oklahoma City continues unchanged, with
Bulletin" of the Manufacturers' Record, Baltimore, Md.:
operators deciding to carry on the time plan of proration,
The blow that has been dealt to Fall River, chiefly by the arbitrary
restrictions of labor organizations, but partly also by other factors, is alternately closing wells and opening them during the first
described with blunt and brutal force in a recent dispatch to the New York quarter of 1930. During January the wells will be on
"Herald Tribune." In 10 years, according to this dispatch, the number of production 60% of the time, as the
restriction order calls
spindles in Fall River cotton mills has fallen from 3,405,375 to a little
over 2,000,000; number of looms has shrunk from 79,074 to about 47,000, for a cut of 40%. There was a substitute proration plan
and number of mill operatives from over 28,000 to a little snore than 15,000. submitted, but it failed of 100% approval and has been
This is a decline of 46% in wage earners. In the last year the disaster dropped.
to the city's industry seems to have come with increased velocity, some
Prorating pzoduction has spread to Texas, where Gray
905,000 spindles and 22,000 looms having been removed in the past 12
months, and the jobs of about 8,000 operatives having vanished with them. County producers are devising an equitable procedure to
In the South the textile industry has never become concentrated in cities insure keeping production down to the
requirements of the
as it has in New England, and Columbus, Ga., with 484,496 spindles and
8,251 looms, and Greenville, S. C., with 633,860 spindles and 16,043 crude purchasing companies.
There were no changes in crude prices during the past
looms, are large mill centers for the section. Rapidly as the industries of
the South are growing, if both of these cities should lose all of their spindles week.

and all of their looms in a 10-year period, it would be a heavy hardship
to the whole Southeast; yet Fall River has lost more spindles and more
looms than can be found in Columbus and Greenville combined.
Nothing in the world but man-made restrictions are to blame for this
extraordinary flight of cotton mills from Fall River. Proximity to cotton
mills is no advantage, for the raw cotton can be shipped more cheaply
than the finished goods, and Fall River is very near the great cotton goods
market of the country. Furthermore, for fine-goods manufacture, Fall
River has an advantage in that it can get the long-staple Texas cotton by
water at lower rates than the Georgia, Alabama and Carolina mills must
pay. Short working hours and high taxes have been a handicap to the
New England industry. Cash wages are lower in the South, but so large
a part of the Southern mills' capital is tied up in mill village property
that it is doubtful whether help is really any cheaper.
The unreasonable and often tyrannical exactions of organized labor have
for years been a severe burden on the New England industry, and freedom
from such disturbances has been the South's greatest single advantage for
cotton mills. If the Southern mill managers are able to rebuff the efforts
of labor organizers they will continue to enjoy their great competitive
advantage over New England, but if labor organizations are victorious
the same reign of tyranny that has crippled the New England branch of
the industry may be expected in the South.

President Machado of Cuba Sets Jan. 15 for Sugar
Grinding in Accordance with Recommendations
of Sugar Defense Commission.
President Machado of Cuba has fixed Jan. 15 1930 as the
opening date of the Cuban sugar campaign in accordance
with recommendations of the Sugar Defense Commission,
according to information reaching the Department of Agriculture. Cane cutting is permitted to begin before this date,
however, it was stated. We quote from Washington advices
Dec. 22, to the New York "Journal of Commerce," which
Estimates for the new crop range from 5,090.944 short tons as reported
by the Cuban Department of Agriculture to 5,488,000 short tons, the preliminary estimate of Whet & Gray. Other estimates by commercial firms
place the crop at 5,264,000 short tons and 5,233,962 short tons. The official estimate for last season's crop was 5,775,179 short tons.
Satisfactory results from beet sugar factory operations were reported
from most parts of Europe, according to a trade report dated Dec. 12.
Weather conditions up to that date had been generally favorable to the
conservation of the stored beets.

Petroleum and Its Products—Ohio Oil Men Discuss
Plan for Running all Crude Under Federal Supervision—Oklahoma City Proration Continues Under
Time Plan.
The board of directors of the Southwestern Ohio Oil and
Gas Association are deliverating upon a plan whereby crude
oil production in this country will all be run to Government
account in a manner similar to the conduct of the new
Federal Farm Board, with refiners buying their crude supplies from that agency. This plan was suggested by A. H.
Squier of Reno, Pa., and is intended as a more certain,
If radical, means of preventing the continued over-production
of crude oil. It was Mr. Squier's assertion that the oil

Prices of Typical Crudes per Barrel at Wells.
(A11 gravities where A. P. I. degrees are not shown.)
Bradford. Pa
93.05 Smackover, Ark., 24 and over
Corning, Ohio
175 Smackover, Ark., below 24
Cabell. W. Va
1.35 Eldorado, Ark.. 34
1.45 Urania. La
Western Kentucky
1.53 Salt Creek. Wyo.,37
sttdcontinent, Okla.. 37
1.23 Sunburst, Mont
Corsicana, Texas, heavy
.80 Arteela. N. M
tiutchinson, Texas, 35
.87 Santa Fe Springs, Calif., 33
Luling, Texas
1.00 Midway-Sunset. Calif., 22
ipindletop. Texas. grade A
1.20 Huntington, Calif., 26
iptndletop, Texas, below 23
1.05 Ventura, Calif., 30
Winkler. Texas
.65 Petrol's. Canada

Although contract gasoline deliveries are holding up fairly
well for this time of the year, there is little spot business
being placed. No change in the general situation is expected
until after the first of the New Year. What the price fluctuation, if any, will be then, is problematical. From sentiment
expressed in the trade in New York it is quite probable that
there will be no change in U. S. Motor gasoline quotations
in this section. Despite the continuance of rumors concerning price cuts being made to secure immediate business on
U. S. motor, it is significant that no suppliers have revised
their quotations to meet this reported competition. A small
contract was placed in New York at 8.50, but as this was for
distant shipments it exerted no influence on present conditions.
California gasoline demand in this market has quieted
down considerably, distributors report.
Kerosene demand continues strong, with prices firm and
unchanged. The usual December movement got under way
early. Consumption was held up somewhat by the intermittent warm spells of the month, but the total movement
has been generally up to expectations, while some refiners
report that their holdings have been materially depleted.
Water white is still holding at 7% cents per gallon in tank
ear lots, at refineries. The tank wagon market is brisk
throughout the New York and New England territory, with
every indication of steadily increasing demand as the colder
weather of January and February sets in. The spot movement of fuel oil has been increasing during the week. Deliveries against contracts also show large totals, and the
general situation in this division of the trade is promising
with $1.05 still quoted for bunker C per barrel in bulk at the
refinery terminals. No immediate change is anticipated in
this fuel.
Diesel oil contacts for 1930 deliveries have been moving
rapidly with $2 as the minimum and $2.10 as the maximum
price per barrel, in bulk, at refineries. This is taken as a
strong intimation that the leading refiners do not expect any
great fluctuation on next year.


DEC. 281929.]


Gasoline, U. S. Motor, Tankcar Lots, F.O.B. Refinery.
fields. The Oklahoma City and East Earlsboro fields will be prorated
$.0614 North Louisiana- --$.073( 40% during January and February and 50% during March, with the other
NY(Bayo'ne)5.081303.083 Arkansas
.06)11 fields prorated 20% for all three months.
.083( North Texas
West Texas
.0631 California
.093( Los Angeles, export_ .073Z Oklahoma
The South Oklahoma City field will continue on the same proration plan
New Orleans
.07h 'Gulf Coast. exnort_ .0834 Pennsylvania
during January as that in force at present, with wells divided into A and
Gasoline. Service Station, Tax Included.
13 groups, one group being on full capacity production part of the time and
New York
the other group then taking its turn.
16 New Orleans
.188 Philadelphia
Limit State's Output.
.18 San Francisco
20 Houston
24 Spokane
Under the Corporation Commission order the State's production will be
.15 Jacksonville
179 St. Louis
.15 Kansas City
held to 641.000 barrels daily during January.670,000 barrels daily in February and 671,600 barrels daily during March. Potential output of the State
Kerosene, 41-43 Water White, Tankcar Lots, F.0.13. Refinery.
8.0544 New Orleans
without proration is estimated at 799,500 barrels daily for January. 850,000
NT(llayonne)S.07,(442.08 Chicago
0634 for February and 922,000 barrels daily in March.
.0534 Los Angeles, export- .0534 Tulsa
North Texas
South Oklahoma City field will be allowed to produce an estimated daily
Fuel Oil, 18-22 Degree, F.O.B. Refinery or Terminal.
8.72 average of 84,00 barrels in January, 120,000 barrels in February and 150.8.85 Gulf Coast
New York(Bayonne).$1.05 Los Angeles
.55 000 barrels daily in March. Estimate production of the field without prora.95 Chicago
2.00 New Orleans
tion is 140.000 barrels daily for January, 200,060 barrels for February and
Gas Oil, 32-36 Degree, F.O.B. Refinery or Terminal.
$ 01 300,000 barrels a day for March.
ew York(Bayonne)8.0534[Chicago
Production Up 3,293 Barrels.
Daily crude oil production for the entire'United States averaged 2,620,580
Crude Oil Output in United States Higher.
barrels last week, an increase of 3,293 barrels from the preceding week, acThe American Petroleum Institute estimates that the daily cording to the Oil and Gas Journal's estimates.
It was estimated that light oil production increased 9.856 barrels daily.
average gross crude oil production in the United States for
the week ending Dec. 21 1929 was 2,633,800 barrels, as compared with 2,622,250 barrals for the preceding week, an Conservation Policies Help Stabilization of Petroleum
Increase of 11,550 barrels. Compared with the output for
Industry, Says Pres. E. B. Reeser of the American
the week ended Dec. 22 1928 of 2,550,750 barrels per day,
Petroleum Institute-More Than 5,000 Companies,
the current figure represents an increase of 83,050 barrels
Refiners and Individuals Have Signed the "Nadaily. The daily average production east of Oalifornia for
tional Code of Practices for Marketing Refined
the week ended Dec. 21 1929 was 1,923,200 barrels, as comPetroleum Products."
pared with 1,929,150 barrels for the preceding week, a dePresident E. B. Reeser of the American Petroleum Increase of 5,950 barrels. The following are estimates of stitute has authorized the following statement of conditions
daily average gross production, by districts:
in the petroleum industry.
Conservation policies adopted a year or more ago are generally conceded
(Figures In barrels)

Week Ended Dec. '29. Dec. 14'29.
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
Southwest Texas
North Louisiana
Coastal Texas
Coastal Louisiana
Eastern (not incl. Michigan)
New Mexico


Dec. 7'29. Dec. 22 '28.

to have gone far toward the stabilization of the petroleum industry.
the co-operative movement through the various fields, at least 10,000.000
barrels ofcrude oil that otherwise would have been produced were kept in the
ground, the natural tankage and the proper place to store petroleum.
More than 5.000 refining companies, marketing companies and individuals engaged in the distribution of petroleum products have signed the
"National Code of Practices for Marketing Refined Petroleum Products."
This is tending to correct many of the abuses in the marketing division and
will, undoubtedly, assist in putting the selling end of the oil business on an
ethical plane. The interest of the public, as well as the industry, will be
served better as a result of the Code.
The refining department, as indicated by the figures compiled by the
Bureau of Mines, has not, as yet, taken advantage of a great opportunity
to complete the cycle in the conservation of petroleum products. Leaders
realize the wasteful practices of present refinery operations. Stocks of
gasoline, for instance, are twice as much as they should be. I look forward
to an early correction in this phase of the petroleum industry and believe
that 1930 will be a more prosperous year for the entire industry than 1929.

2,622,250 2,630,550 2,550,750
The estimated daily average gross production for the Mid-Continent
field, including Oklahoma, Kansas, Panhandle, North, West Central, West,
Weekly Refinery Statistics For The United States.
East Central and Southwest Texas, North Louisiana and Arkansas, for the
According to the American Petroleum Institute, companies
week ended Dec. 21, was 1,541,600 barrels, as compared with 1,551,800
barrels for the preceding week, a decrease of 10,200 barrels. The Mid. aggregating 3,507,400 barrels, or 95.3% of the 3,678,700
Continent production, excluding Smackover (Arkansas) heavy oil, was barrel estignated daily potential refining capacity ofthe plants
1,498,550 barrels, as compared with 1,508,550 barrels, a decrease of
operating in the United States during the week ended Dec.
10,000 barrels.
The production figures of certain pools in the various districts for the 21 1929, report that the crude runs to stills for the week show
current week, compared with the previous week, in barrels of 42 gallons, that these companies operated to 73.6% of their total
published last week show that companies
-Weelc Ended- capacity. Figures
-Week EndedDec.21. Dec. 14. aggregating 3,503,200 barrels, or 95.2% of the 3,678,700
Dec.21. Dec. 14. Southwest Texas
Oklahoma9,200 9,300
20,100 23,100 Laredo District
Allen Dome
10.800 10.800 barrels estimated daily potential refining capacity of all plants
3,700 Luling
29.800 30,550
23,750 23,900 Salt Flat
operating in the United States during that week, but which
18,700 18,700 North LouisianaBristow-Slick
4,750 4.700
17,350 17,400 Haynesville
73.6% of their total capacity, contributed
5,500 5,500 operated to only
8.500 9,650 Urania
Carr City
7,550 Arkansas7,550
to that report. The report for the week ended Dec. 21 1929
5,500 5,750
66,600 66.650 Charnpagnolle
5,750 5,750 follows:
4.650 3,900 Smackover (light)
East Seminole
43,050 43,250
65,750 69,600 Smackover (heavy)
Little River
14,100 13,850 Coastal Texas
Logan County
17,000 17.500
8,050 8.050 Barbers Hill
10,300 10,250
15,850 15,600 Hull
12,800 11,500
65,500 64,400 Pierce Junction
Oklahoma City
P. C.
P. C.
8,300 12,350 Raccoon Bend
8,600 9.250
Gas and
Poten18,550 18,550
50,650 54,700 SpindletoP
St. Louis
Asel OU
of Total Gasoline
Hal Co- Runs to
8,500 9,200 Sugarland
12,300 12,200
24,550 23,800 West Columbia
6,300 6.550
8,850 8,800
Coastal Louisiana
Kansas3,100 2.150
23,600 23,350 Dud llackberry
Sedgwick County
Old Ilackberry
2,100 2,000 East Coast
Panhandle Texas
9,600Sulphur Dome
3,300 5,000 Appalachian
Carson County
73,000 64,650 Vinton
4,300 4,400 Indiana,Illinols,Kentucky 98.6
Gray County
Okla., Kansas, Mlasourl.- 88.6
Hutchinson County __ 26,600 27,200 Wyoming
Salt Creek
32,100 34,100 Texas
North Texas
18,300 18,400 Montana
Archer County
29,700 29,850 Sunburst
6,800 6,800 Rocky Mountain
WIlbarger County
70.7 14,914,000 109,252,000
West Central Texas
10,000 10.200 California
Brown County
73.6 40,4.51,000 144,683.000
Total Week Dee. 21... 95.3 18,074.000
9,000 9,000
Shackelford County_ -__ 9,250 9,300 Dominguez
34,700 38,000 Daily average
West Texas
73.6 39,058,000 144,215,000
95.2 18,048,900
41,500 41.500
Total week Dec. 14
Crane & Upton Counties 45,450 47,400 Huntington Beach
37,000 38,200 Inglewood
22,500 22,500 Daily average
Howard County
140,700 141,200 Kettleman Hills
9.400 9,600 Texas Gulf Coast
Pecos County
1 032_500
lno n
17,500 17,450 Long Beach
106,000 104,000 Lnubilana Gulf C'.. at
Reagan County
94,100 95,600 Midway-Sunset
75.000 75,000
Santa Fe Springs
173,200 159,500
-All crude runs to stills and stocks figures follow exactly the present Bureau
Seal Beach
28,500 29,000 of Mines definitions. In California, stocks of heavy crude and all grades of fuel oil
East Central Texas-0,850 0,750 Ventura Avenue
51,800 50,500 are included under the heading "Gas and Fuel Oil Stocks." Crude oil runs to stills
include both foreign and domestic crude.

Oklahoma Oil Curb Extended to April 1
Lead and Zinc in Good Demand-Call for Copper Quiet
Orders Proration Continued in All Flush Pools.
at Unchanged Prices-Tin Sales Improve.
The Oklahoma Corporation Commission on Dec. 23
Demand for lead and zinc was fairly active in the non-ferordered the continuance of oil curtailment in all flush pools in
but buying of copper
the State until April 1. The New York "Evening Post" rous metals markets in the past week,
continued at about the same slow rate as in recent weeks,
of Dec. 24 says:
"Engineering & Mining Journal" reports and then proceeds
The order will effect the Oklahoma City, East Earlsboro, Greater Seminole, St. Louis-Pearson. Logan County, Allen Dome. Sasakwa and Asher as follows:



(VOL. 129.

Finished Steel,
The call for tin showed improvement, most of the inquiry coming from the
rig Iron.
Dec. 23 1929, 2.362c. a Lb.
Dec. 23 1929. 518.21 a Gross Ton.
automotive industry.
One week ago
2.3620. One week ago
Scarcely any change took place in the market for copper during the week. One month ago
2.3620. One month ago
Prices were unchanged and while the sales total was slightly higher than in One year ago
2.3910. One year ago
1.689e. 10-year pre-war average
the preceding week,it means little in view of the fact that the daily average 10-year pre-war average
Based on
Based on average of basic iron at Valley
was a little less than 400 tons for the period. The tone of the market is gen- wire, rails, steel bars, beams, tank plates.
black pipe and black sheets, furnace and foundry irons at Chicago.
erally regarded as better,due to the moderate improvement in the industrial These products make 87% of the United Philadelphia, Buffalo, Valley and Sirsituation.
States output of finished steel.
Although lead sales did not reach the volume of the preceding week, the
1929_2 412c. Apr, 2 2.362e, Oct. 29 1929_418.71 May 14 518.21 Dee. 17
fundamental strength of the markets continues. Prices are unchanged at 1928_2.391e. Dec. 11 2.314e, Jan, 3 1928___ 18.59 Nov. 27
17.04 July 24
6.10 cents, St. Louis and 6.25 cents New York. No variation from these 1927-2.453c. Jan. 4 2.293c. Oct. 25 1927- 19.71 Jan. 4 17.54 Nov. 1
prices seems to exist in any direction,though for deliveries beyond January, 1926_2.453c. Jan. 5 2.4030. May 18 1926___ 21.54 Jan. 5 19.46 July 13
producers are unwilling sellers, feeling that should demand pick up after the 1925_-2.560o. Jan. 6 2.396e. Aug. 18 1925-- 22.50 Jan: 13 18.96 July 7
Iron and steel producers are taking advtantage of the
holidays, somewhat higher prices might be justified.
Good sales ofzinc were booked during the week at from 5.45 to 5.50 cents, unusually quiet markets and
the necessity for repairs to
St. Louis. The bulk of the business done was at the low figure. Demand
was even more active than in the preceding week, with consumers in quite a impose the most drastic holiday shutdown in recent years,
few instances willing to book ahead for part of their first half of 1930 require- says the "Iron Trade Review" of Cleveland, this week.
ments. Consumers of tin entered the market for a good tonnage. The Excepting the
continuous processes, a large proportion of
week was an unusually active one and much of the buying was the result of
the country's steel-making capacity is idle all this week,
feeling that the metal at less than 40 cents was a good purchase.

and some will not be restored until after New Year. December output of pig iron and steel ingots apparently will
World Production and Consumption!of Aluminum In be the lowest since 1923, adds the "Review," which goes
on to say:
There has not, however, been a corresponding depression of sentiment.
World production and consumption of aluminum in 1928
to nominal
was estimated at about 220,000 and 200,000 tons respectively, The industry, with the best year in history behind it,it resigned demand
business until about the middle of January, when
or more than three times the amounts in 1913, according come back rather sharply. Consumers now are taking in only their
to the Index published by the New York Trust Company. pressing requirements, and are deferring contracting. Unseasonal weather
Possessing large supplies of bauxite ore, the United States is Is hindering shipments in the North Central States, but is causing no
the leading world producer of aluminum, states the review. The price situation in both pig iron and finished steel continues to
"The output of the metal in this country has shown a steady drift, with time apparently more on the side of consumers than producers.
Large carryovers from this quarter and the
prices will
increase in recent years, the total value of new aluminum be no higher leave no incentive for steel buyerscertainty that Concessions
to contract.
produced in 1928 amounting to $47,899,000 as compared for prompt-shipment orders seem fewer.
Rarely has pig
with $37,607,000 in 1924. In the past year imports declined few commitments iron approached so closely to the first quarter with so
made, and a clarification of prices seems probable in
while exports increased somewhat."
some districts. Beehive furnace coke is slightly weaker at $2.60 to $2.65.
The highly centralized nature of the industry is pointed Iron and steel scrap prices are giving no more ground; in fact, several
grades at
out. In America the leading concern produces most of the selling far Pittsburgh are somewhat stronger, and dealers are wary about
ahead at current levels.
domestic output and with its foreign subsidiaries now
Six thousand freight cars are actively pending in the East, with a Chesapeake & Ohio inquiry expected. In the West the Chicago Milwaukee
accounts for about half of the world's supply. The few large
St. Paul
companies which control the industry in Europe are united slated to & Pacific has 2,300 cars out, while the Illinois Central week
buy 4,000 early in 1930. The Texas Co. may act this
in a cartel, which was prolonged in 1928 for a period of three 500 tank cars. The Birmingham Southern has placed 25 box cars. The
Canadian National has ordered 40 locomotives and the Missouri Pacific five.
years. Research and experimentation are constantly adding
Chicago rail mills expect to book 100,000 tons
the next month.
new fields for the employment of aluminum, the review Atlantic Coast Line has placed 7,000 tons additional.inNew York Central
asserts. The metal is taking a prominent part in the develop- is distributing its 14.000 tons of track accessories, half having been allotted
ment of aviation, it is used in the manufacture of automobile to Chicago district makers.
Gas and oil pipe line projects in the Middle West are
parts, railway coaches, buses and trolleys and to a growing district mills as even more promising for 1930 than regarded by Chicago
they were for 1929.
extent in building construction. "It is possible that further Specifications for welded pipe material enable Chicago plate mills to
hold to 75% operations, considerably higher than Pittsburgh and Youngsstrengthening of the metal will eventually result in its em- town
mills. In the East inquiry for cast-iron pipe for
ployment in the construction of bridges, cranes and the for first-half laying is broadening, totaling 20.000 tons.municipal Purposes
Twelve river barges. requiring 1,850 tons of plates and shapes, have
upper part of skyscrapers."
Steel Output Sharply Curtailed, Owing to Drastic
Holiday Shutdown-Prices Unchanged.
Further increases in specifications from the automobile
industry, large awards of fabricated steel, additional strength
in scrap and drastic reduction of consumers' stocks are encouraging features of the steel market, according to the
"Iron Age" of Dec.26, which further states'
Mill operations have been sharply curtailed, with many units idle for
the entire week. Raw steel output will not be cut down proportionately,
but the average, counting suspensions, may not be more than 40% of
capacity. The rate for December promises to be lower than that for any
month,save in the summer of 1924,since the depression of 1921
The very severity of the fourth-quarter decline in production is regarded
as the best promise of an early recovery. December's recession in ingot
output from November may approximate November's 19% drop from the
October rate. The greatest decline in any single previous month was 34%
in December, 1907.
The thoroughness with which both manufacturing consumers and warehouses have deflated their steel inventories definitely calls for an improvement in tonnage releases next month. This expectation is borne out by developments at Chicago, where the blocking of shipments by one of the
worst blizzards in years was immediately reflected in increased specifications from steel users.
A rush of new business in January is not looked for, since it is realized
that many buyers are awaiting further price testa, but betterment Is expected
in proportion to the damming up of requirements in recent weeks. It
is noted that the automobile industry, which has largely passed its inventory Period, is continuing to increase its drafts on the mills. First-quarter
contracts for alloy steel bars have been placed by the largest buyers in the
automotive field, and fair January booldngs from both motor car builders
and Parts makers have been entered for sheets, strip steel and carbon steel
bars. The Ford Motor Co. has made large purchases of automoitve accessories and now is understood to be aiming at an output of 125,000 cars
next month.
Steel producers are disposed to suspend judgment on the rate of recovery
in motor car production until after the January automobile shows, when the
reaction of the public can be better appraised. However, steel interests
with a diversified trade, and not primarily dependent on business from motor
car makers, look for a substantial gain in mill operations, a number of them
estimating that their ingot output for the first quarter will average close
to 75%.
The confidence of the industry rests partly on a downward revision of
Production estimates for 1929. It is now clear that total steel ingot output
for the year will exceed the previous record, made in 1928, by not much more
than 8%. Pig iron production, which felt the stimulus of steel needs more
than last year, will exceed the previous high mark, reached in 1923, by 6%.
"The Iron Age" composite prices remain at the year's low, pid iron at
$18.21 a gross ton and finished steel at 2.362c. a lb., which goes on to say:

been bought at Pittsburgh. Two Great Lakes barges, involving 2,000
to 2.500 tons of plates, are being figured. Structural steel awards, totaling
56.000 tons this week, were topped by 6,800 tons for New York subway
work. At Chicago public utilities account for 4,000 tons of awards and
a like total of inquiry.
Automotive specifications for steel have subsided from the slight bulge
of the past fortnight. Makers have about completed their initial trial
runs on January show models and are now awaiting the verdict. Strip.
sheet and bar mills at Youngstown, Pittsburgh, and Cleveland especially
are sensitive to this trend. Tin plate specifications are equal to the
December average.
In the Great Lakes region a slight increase over the November rate
of merchant pig iron shipment is reported. Chicago forecasts a heavier
demand for malleable iron in the first quarter. Alabama iron is offered
at $13.50, Birmingham, in some Northern markets, despite a 50
advance in home territory.
Independent steelmakers in the Youngstown district are operating
this week at 30%, and Steel corporation plants at 50. Ingot operations
at Chicago have declined to 55%, although 22 of 36 steelworks blast
furnace stacks continue active. At Pittsburgh the steel rate is no higher
than 60%, and at Buffalo about 40.
Rising cost of production has prompted the British Steel Association
to advance plates 61 cents a ton and structural shapes to $1.21 $1.82.
Most British steelworks are closed this week. Belgian mills will establish
minimum prices on bars, plates, shapes and semi-finished steel. Some
German plants are stocking steel.
Following a rise last week, when Southern pig iron was advanced, he
"Iron Trade Review" composite of 14 leading iron and steel products has
declined 8 cents this week, to $35.91. the lowest point in 13 months.

Although there will be sharp curtailment in steel ingot
production this week because of the protracted holiday
shut-down in various plants, only a small drop will be recorded in the average per day for the period of operation, the
"Wall Street Journal" stated on Dec. 24. It has been estimated that the industry will be running between 35 and
40% this week, continued the "Journal," which further said:
In contrast with this average for the seven days, the daily rate, while
plants were operating, was down only h of 1%. at 63%, compared with
63 % in the preceding two weeks.
The United States Steel Corp. continued to run, on its working days, at
64% as in the previous week. Two weeks ago the rate was at 65%. Independents had a rate of 6236% for the operating days, against a fraction
over 63% a week ago and 62% two weeks ago.
Prior to the Christmas holiday a year ago the Steel Corp. was running at
83% to 84%. with independents at 79% and the average at 81%. During
the holiday shut down the rate was estimated in the industry at between
55% and 60%•

Writing with reference to the outlook in the iron trade,
Rogers Brown & Crocker Bros., Inc. under date of Dec. 26

DEC. 28 1929.]


Buyers of pig iron show increasing interest in the market. Inquiries
during the past week have been much more numerous and the tonnage of
iron sold was larger than for some time. In order to close the year with
small inventories, consumers have allowed their stocks to be reduced to a
point that has brought out many requests for prompt shipment from the
furnaces. While most of the buying was for delivery over the first quarter
of next year, an unusually large tonnage, for this time of the year, was
required immediately. It appears that the business of the foundries has
not fallen off to the extent that was anticipated, except in a few special
industries, and a more optimistic feeling prevails regarding foundry activities over the first quarter of next year.
Foundry coke is moving freely on contracts and the colder weather has
stimulated the demand for domestic fuel.
Contracting for Ferro Alloys is less active for the time being.

Production of Bituminous Coal and Anthracite Exceeds
That of a Year Ago.
According to the United States Bureau of Mines, Department of Commerce, the output of bituminous coal and
Pennsylvania anthracite for the week ended Dec. 14 1929,
exceeded that of the corresponding period last year. Production of bituminous coal fell 157,000 net tons below
the figure for the preceding week, while output of Pennsylvania anthracite exceeded that for the week of Dec. 7.
The production for the week under review was as follows:
Bituminous coal, 11,570,000 net tons; Pennsylvania anthracite, 1,992,000 tons; beehive coke, 79,600 tons. This
compares with 11,035,000 tons of bituminous coal, 1,709,000
tons of Pennsylvania anthracite and 93,100 tons of beehive
coke produced in the week ended Dec. 15 1928, and 11,727,000 tons of bituminous coal, 1,923,000 tons of Pennsylvania anthracite and 86,300 tons of beehive coke in the
week ended Dec. 7 1929.
For the calendar year ended Dec. 14 1929 the production
of bituminous coal totaled 502,453,000 net tons as compared with 471,581,000 tons in the corresponding period
in 1928, while output of Pennsylvania anthracite amounted
to 72,897,000 tons, as against 73,853,000 tons in the calendar
year to Dec. 15 1928. The Bureau's statement follows:
The total production of anthracite in Pennsylvania during the week
ended Dec. 14 is estimated at 1,992,000 net tons, an increase of 69,000
tons, or 3.6%, over the output in the preceding week. Production during
the week in 1928 corresponding with that of Dec. 14 amounted to 1,709.000
Estimated Production of Pennsylvania Anthracite (Net Tons).
Ca/. Year
Cal. Year
Week EndedWeek.
to Date.
to Dale.a
Nov. 30
Dec 7
• 1,923,000
Dec. 14_b
1 992,000
a Minus one day's production first week In January to equalize number of days
In the two years. b Subject to revision.
The total production of soft coal during the week ended Dec. 14 1929.
including lignite and coal coked at the mines, is estimated at 11,570,000
net tons. Compared with the output in the preceding week, this shows
a decrease of 157,000 tons, or 1.3%. Production during the week in 1928
corresponding with that of Dec. 14 amounted to 11,035,000 tons.
Estimated United States Production of Bituminous Coal (Net Tons), Incl. Coal Coked.
Cal. Year
Cal. Year
Week EndedWeek.
to Date.
to Date.a
Daily average...... 1.922,000
Dec. 7.1z
Daily average__
Dec. 14_c
Daily average
a Minus one day's production first week in January 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 calendar year to
Dec. 14 (approximately 295 working days) amounted to 502.453,000 net
tons. Figures for corresponding periods in other recent years are given
471,581,000 net tons11926
546,769,000 net tons
495,592.000 net tons11925
495,171,000 net tons
As already indicated by the revised figures above, the total production
as a whole during the week ended Dec. 7
of soft coal for the country
amounted to 11,727,000 net tons. This is an increase of 1,734,000 tons
over the preceding week, when output was curtailed by the Thanksgiving
holiday. The following table apportions the tonnage by States and gives
comparable figures for other recent years.
Estimated Weekly Production of Coal by States (Net Tow).
Week Ended
Dec. 1923
Dec. 7 '29. Nov. 3029 Dec. 8'28. Dec. 10'27 Avge.a
1,658,000 1,315,000 1,491,000 1.558,000 1,535,000
New Mexico
North Dakota
2,728,000 2,327,000 2,737,000 2,326,000 2.818,000
Pennsylvania (bitum.)
W. Virginla-Southern_b 2.100,000 1,867,000 1.978,000 1.582.000 1.161.000
Other States
Total bituminous coal_ _11,727,000 9,993,000 11,211,000 9,649,000 9.900,000
Pennsylvania anthracite._ 1.923,000 1,438,000 1.600.000 1.378.000 1,806,000
13,650,000 11,431.000 12,811,000 11,027,000 11.706,000
Total all coal
a Average weekly rate for entire month. b Includes operations on the N.&.
C. & 0., Virginian, K. & M., and Charleston Divison of the B. & 0. c Rest of
State, inciding Panhandle. d Kansas included in "Other States."
The total production of beehive coke for the country as a whole during
the week ended Dec. 14 is estimated at 79,600 tons. Compared with the
output in the preceding week, this shows a decrease of 6,700 tons, or
8.1%. The detailed table below apportions the tonnage by regions.
Estimated Production of Beehive Coke (Net Tons).
Week Ended
Dec. 14 Dec. 7 Dec. 15
1929.b 1929.c
RegionPennsylvania, Ohio and W. Va_ _ 69,400 75,500 79,800 5,226,300 3,567,300
Georgia, Ky., Tenn., and Va.__ 6,500
Colorado, Utah and Washington.. 3.700
Un ted States total
Daily average
a Minus One day's production
in the two years. b Subject to

79,600 86,300 93,100 5.835,800 4,174,600
first week in January to equalize number of days
revision. c Revised.

Cost of Locomotive Fuel Coal in October Lower.
The quantity and average cost per net ton of coal used by
class I railroads in locomotives in yard switching and transportation train service during the months of Oct. 1929 and
1928, were as follows:
Net Tons Used.




4,938,123 4,838,373 $2.41
2,064,101 2,050,805 1.96
3,154,432 3,250,530 2.59



Eastern District
Southern District
Western District

Average Cost per Net Ton.
Excl. Diced
Incl. Direct
Freight Charges. Freight Charges.



10,156,656 10,139,708 $2.38 $2.49 $2.01
United States
-The averages, both those including direct freight charges and those excluding such charges, as shown above, include charges for labor and supplies incidental to the handling of the coal.

Current Events and Discussions
The Week with the Federal Reserve Banks.
The consolidated statement of condition of the Federal
Reserve Banks on Dec. 24, made public by the Federal
Reserve Board, and which deals with the result for the 12
Reserve banks combined, shows increases for the week of
$25,700,000 in holdings of discounted bills and $45,500,000
in bills bought in open market and a decrease of $48,200,000
in U. S. securities. Member bank reserve deposits declined
$88,100,000 and cash reserves $75,400,000, while Federal
Reserve note circulation increased $63,100,000 and Government deposits $27,800,000. Total bills and securities were
$23,100,000 above the amount reported a week ago. After
noting these facts, the Federal Reserve Board proceeds as

$10,900.000. New York $9,000,000, Chicago $7,900,000. San Francisco
$6,600,000, Boston $5,600,000 and Philadelphia $5.400.000.

The statement in full, in comparison with the preceding
week and with the corresponding date last year, will be found
on subsequent pages-namely, pages 4104 and 4105. A
summary of the principal assets and liabilities of the Reserve
banks, together with changes during the week and the year
ended Dec. 21 is as follows:

Increase (+) or Decrease (-)
2,950,746,000 -75,407,000 +261,919,000
Total reserves
2,821,640,000 -61,168,000 +237.401,000
Gold reserves
1,612,537,000 +23,071,000 -286,775,000
Total bills and securities
762,781,000 +25,743.000 -404.798,000
Bills discounted. total
Secured by U.S. Govt. obliga'as_ 430,556.000 +48,095,000 -283,203,000
332,225,000 --22,352.000 --121,595.000
Other bills discounted
354.943,000 +45,532,000 -134,327,000
Bills bought in open market
Holdings of discounted bills increased $25,100,000 at the Federal Reserve
U. S. Government securities, total_ 485,043,000 -48,222,000 +252,715.000
Bank of Chicago, $21,500,000 at New York, and $5,400,000 at Boston and
declined $21,200,000 at San Francisco and $8,400,000 at Minneapolis.
Treasury notes
215,124,000 -50,529,000 +140,272,000
Certificates and Bills
The System's holdings of bills bought In open market increased $45,500,000
and of Treasury notes $2,300,000, while hol Sings of certificates and bills Federal Reserve notes in cIrculation..1,989,159,000 +63,136,000
declined $50,500,000.
2 375,211,000 -63,921,000
Total deposits
All Federal Reserve banks reported increases for the week in the amount
2,320,118,000 -88,098,000
reserve deposits
30,671,000 +27,580.000
Government deposits
of Federal Reserve note circulation, the principal increases being Cleveland

Dec. 241929.



Returns of Member Banks for New York and Chicago
Federal Reserve Districts—Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of the
member banks in the New York Federal Reserve District,
as well as those in the Chicago Reserve District, on Thursdays, simultaneously with the figures for the Reserve banks
themselves, and for the same week, instead of waiting until
the following Monday, before which time the statistics covering the entire body of reporting member banks in 101 cities
cannot be got ready.
Below is the statement for the New York member banks
and that for the Chicago member banks thus issued in
advance of the full statement of the member banks, which
latter will not be available until the coming Monday. The
New York statement, of course, also includes the brokers'
loans of reporting member banks. The grand aggregate of
these brokers' loans the present week show a decrease of
$58,000,000, bringing the amount down to $3,328,000,000
which compares with $5,091,000,000, on Dec. 26 1928 and
with $6,804,000,000, the high record in all time established
on Oct. 2 1929. The loans "for our account" increased
during the week from $832,000,000 to $845,000,000, the
loans "for account of out-of-town banks" decreased from
$750,000,000 to $716,000,000, while the loans "for account
of others" fell from $11,804,000,000 to $1,767,000,000.
New York.
Dec. 24 1929. Dec. 18 1920. Dec. 26 1928.
Loans and investments—total

7,892,000,000 7,929,000,000 7,216.000.000


5906.000.000 5,927,000,000 5,399,000,000

On securities
All other

3 045,000,000 3,022.000,000 2.780.000,000
2,861.000.000 2.905.000,000 2,619,000,000


1 986.000.000 2,001,000,000 1,817,000,000

U. S. Government securities
Other securities

1 089,000,000 1,112,000,000 1,097,000,000
897,000,000 890,000,000 720,000,000

Reserve with Federal Reserve Bank_ _ _ _
Cash in vault
Net demand deposits
Time deposits
Government deposits




5 662,000,000 5,715.000,000 5,283.000,000
1,195.000,000 1,210,000,000 1,207,000.000

Due from banks
Due to banks
Borrowings from Federal Reserve Bank- 107,000,000



Loans on securities to brokers and dealers
For own account
845,000,000 832,000,000 1,109.000,000
For account of out-of-town banks_
716,000,000 750.000.000 1,660,000,000
For account of others
1,767.000,000 1,804,000,000 2,322,000,000
On demand
On time
as and investments—total

3,328,000,000 3,386,000.000 5,091,000,000
2 886,000.000 2,943,000.000 4.538.000.000
442,000,000 443,000,000 554,000,100
2,029,000,000 2,035.000,000 2,070,000,000

On securities
An other
U. S. Government securities
Other securities
Reserve with Federal Reserve Bank_ __ _
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks

1,634,000,000 1,633,000,000 1,620,000,000












1 253,000,000 1,258.000,000 1,226,000,000
606.000.000 625,000,000 600,000,000



Borrowings from Federal Reserve Bank-51,000,000



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 Thursdays,
simultaneously with the figures for the Reserve banks themselves, and covering the same week, instead of being held
until the following Monday, before which time the statistics
covering the entire body of reporting member banks, in 101
cities, cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with the close of business Dec. 18:

[Vol.. 129.

banks, $48,000,000 In the New York district, $16,000.000 in the Chicago
district, $11,000,000 in the Boston district, $8,000,000 each in the Philadelphia and San Francisco districts and 17,000,000 in the Atlanta district.
Holdings of United States securities increased $8,000,000 in the San
Francisco district, $6,000,000 each in tho New York and Chicago districts
and $24,000,000 at all reporting banks. Holdings of other securities increased $16,000.000 at all reporting banks and $55,000,000 in the New
York district and declined 322.000.000 in the Boston district and $14,000,000 in the San Francisco district.
The principal changes in borrowings from Federal Reserve banks for the
week comprise an increase of $23,000,000 at the Federal Reserve Bank of
New York and decreases of $12,000,000 at Kansas City. $8,000,000 at
San Francisco, $7,000,000 each at Chicago and Dallas, and $6,000.000 at
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ended
Dec. 18 1929. follows:
Increase (-1-1 or Decrease (—)
Dec. 18
Dec. 11 1929,
Dec. 19 1928.
Loans and investments—total_ _ _ _22.933.000,000



—28,000,000 +1,099.000,000

On securities
All other








U. S. Government securities _ _ - 2,743,000,000
Other securities



Reserve with Federal Res've banks 1,774,000,000
Cash in vault












Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from Fed. Res. banks_

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 banks;
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, borrowings at the Federal Reserve are not now subdivided to show the amount secured by U. S. Government
obligations and those secured by commercial paper, only a
lump total of the two being given. The figures have also
been revised to exclude a bank in the San Francisco district,
with loans and investments of $135,000,000 on Jan. 2, which
recently merged with a non-member bank.
Summary of Conditions in World Markets, According
to Cablegrams and Other Reports to the Department of Commerce.
The Department of Commerce at Washington releases
for publication Dec. 28, the following summary of market
conditions abroad, based on advices by cable and radio:
Holiday business in Australia continues fair despite the reduced purchasing power of the country, but It is still decidedly below normal. Important
reductions aro shown in new residence and business buildings, but recent
tariff increases have stimulated plans for factory buildings. The coal
strike in New South Wales remains unsettled, and State authorities have
opened one mine with voluntary labor. The export outlook has not Improved, and facilities for financing imports continue unsatisfactory. London balances are extremely low and Federal and State Governments are
accumulating important overdrafts there. Telegraphic transfers to London
have increased further 7 shillings 6 pence to 42 shillings 6 pence per cent.
The 210,000,000 Federal loan closed Dec. 16 with approximately 20%
left with the underwriters. Local banking authorities are further reducing
credits and business morality has increased noticeably, particularly with
merchandise and agency companies. No improvement is looked for in
January. A new banking law just enacted gives the Federal Treasury
power to take over and control exports of gold on recommendations of the
Commonwealth Bank. Further tariff revision is expected, but no action
can be taken until Parliament convenes on March 1.

Manufacturers and Jobbers are seasonally quiet in preparation for the
year-end Inventory but retail trade Is active with Christmas buying at the
Peak. Money is apparently none too plentiful and buying is concentrated
on moderate priced goods. Sleet, snow and cold weather have stimulated
sales of rubber footwear, apparel, fuel and winter sports equipment. In
Vancouver,the power shortage due to the deficient rainfall this year is forcing
some firms to curtail operations. Unemployment throughout the West
is estimated to be twice as large as a year ago. and there is also a largo number of casual unemployed in the Eastern Provinces. The early resumption
of active operations in the automobile and rubber industries is anticipated
with prospects for relieving the situation in Ontario. Building permits
through November maintained the high rate of previous months as compared with 1928 but there was a seasonal decline from the October valuation,
The Federal Reserve Board's condition statement of weekly reporting estimated at 11% for the 61 reporting
cities. Production of 252,046 tons of
member banks in leading cities on Dec. 18 shows Increases for the week of newsprint from Canadian mills
during the month slightly bettered the new
$11,000,000 in loans and investments and $86,000,000 in Government record established in October. Newsprint
exports during the month were
deposits, and decreases of 3100,000.000 in net demand deposits and 325,- 18% higher than a year ago. Woodpulp
and screenings exports also In000.000 in borrowings from Federal Reserve banks.
creased, by about 6%, but pulpwood exports were 30% lower than in
Loans on securities Increased 178,000.000 at all reporting banks, $34.- November, 1928. Blister copper, pig lead
and fine nickel exports were
000,000 in the San Francisco district,$14.000.000 in the New York district. higher in November than a year ago
but were lower than in October.
$12,000,000 in the Dallas district, $9.000,000 In the Atlanta district and November wheat exports were 70% under November.
1928, and shipments
38.000.000 in the Kansas City district, and decreased $7.000,000 in the of wheat flour were 54% lower in the same
comparison. The seasonal trend
Boston district. "All other- loans declined $106,000,000 at all reporting carried November pig iron output
to 86,516 tons, 5% under October

DEC. 281929.]


production and 9% less than the output in November of last year. The
figure of 93,648 tons reported for steel ingots and castings is the lowest
monthly output registered this year; it is 19% under October production
and 14% under November, 1928.


General business showed a seasonal upward trend during November. but
improvement was spotty and below expectations. Copra and abaci
districts were particularly slow and Aibay province suffered from storms.
Retail buying for Christmas has been good, but the gene al turnover of
Christmas trade is not expected to equal that of last year. November
textile collections showed considerable improvement. Collections in other
lines were fair, but continued difficult. The cc dit situation was fair.
p red caztisractory,
General conditions in the district of Cebu are
due to scarcity of money.

Conditions in North China evidence little change from last month, and
merchants emphatically assert that no improvement in trading conditions
are looked for under the prevailing apprehension of further political instability. Money continues tight, and fourteen small Chinese Banks in Tientsin ceased operating in recent weeks. Business commitments are cautious
and restricted. Poor transport facilities now obtain because of disrupted
service on both the Tlentsin-Pukow and Peking-Hankow railways and Gold and Silver Imported Into and Exported from the
freezing of inland waterways. A blizzard and cold wave in North China
United States, by Countries, in November.
in the past week has badly delayed coastwise shipping, and a blockade of
rail and telegraphic communications between Tientsin and Mukden resulted
The Bureau of Foreign and Domestic Commerce of the
for several days, but traffic is now being resumed. If the cold wave conDepartment of Commerce at Washington has made public
tinues, the port of Tientsin may be closed for a few weeks. Tientsin import
clearances of dutiable goods during November show a decline of 5% from its monthly report showing the imports and exports of gold
one year ago. While export clearances increased by 9%, due chiefly to and silver into and from the United States during the month
cotton and wool shipments previously contracted for.
of Nov. 1929. The gold exports were $30,288,776. The
imports were $7,122,592, of which $3,031,264 came from
It is reported that calls for dollar drafts are heavy with no foreign exchange
bills to meet the demand, owing to the lack of coffee transactions. Dollars Canada and $2,027,879 from Argentina. Of the exports of
are at a premium, the banks protecting foreign exporters by collecting and the metal $10,006,699 went to Switzerland, and $14,499,294
remitting on their own accounts. The situation appears to be serious went to France.
although it should be relieved by the arrival of new coffee drafts in January.
It is stated that banks will probably finance the coffee crop up to 40% of the
total value. It is stated that exports of gold to stabilize exchange are not
favored by the Salvadorean Government. The local banks of issue and one
foreign bank have a little over $5,000,000 deposited against note circulation,
which is in excess of the $3,600,000 required by law. Customs collections
Refined Bullion.
Total (Inc. Coin.)
during the first nine months of 1929 amounted to approximately $7,400,000,
Exports, Imports. Exports. Imports. Exports. Imports.
an increase of 3% over the corresponding period of last year. Collections
Dollars. Dollars. Ounces. Ounces. Dollars. Dollars.
for the first 13 days of December are averaging the same as during the like
Period of last year.
14,499.294 103,154
Prospects for this year's rice crop, which were naost encouraging until Italy
November, have been altered by heavy rains in rice growing districts last Norway
month. Total estimates now place the output at practically the same as in Poland & Danzig
1928. The altered outlook is disappointing in business circles, as it was Spain
hoped that the new rice crop would relieve somewhat the general business United Kingdom_
depression which has prevailed during the entire year, and is gradually Canada
41,796 3,031,264
50.944 176.809 330,807
becoming serious, with the steady decline in value of the piaster, the local Costa Rica
currency. The decline in exchange is causing serious discussion of the Guatemala
advisability of placing the country's currency on a gold standard. Exports Nicaragua
of rice from Saigon in November totaled 57,000 metric tons, compared with Panama
20,450 3.391,024
425,796 505,905
109,000 tons in the same month a year ago. Of the total shipments last Mexico
Trinidad & Tobago
month. 16.000 tons went to Hong Kong. 14.000 to Java, and 7,000 to Cuba. Oth.Br.West Indies
Dominican Replic
Early and general rains throughout the Hawaiian Islands have been of Haiti, Republic of
great benefit to growing crops. Holiday retail business is only moderate, Argentina
and the ratio of cash sales is reported to be lower. Collections in the past Bolivia
month have been only fair and the business mortality of small stores is Chile
greater than at any time since 1927 The employment situation is sub- Ecuador
normal but is expected to improve in the latter half of December and in Peru
JanuarY. No additional labor of any kind Is needed at present. The Uruguay
Nov. 1 estimate on the sugar crop was about 856,000 short tons or about 7% British India
under that of last year. The influence of low sugar prices in the past Year British Malaya-- 100,000
122 7,680,270
111,004 15.338,423
has affected trade considerably, but business leaders consider underlying China
conditions in Hawaii as sound. The conditions with pineapple growers is Java & Madura2,500 50,000
Hong Kong
reported as good,and progress is being made with the winter pack.
Philippine IslandsJAPAN.
Business in Japan continues dull, and the outlook for 1930 is not particu- New Zealand
larly encouraging. The Government is considering plans for various Belgium Congo460
measures leading toward stability following removal of the gold embargo Union of So. Africa
on Jan. 11, which include assistance to industries, improvement of the
30,288,776 7,122,592 17.032.388 4,582.805 8,676.365 5.143.211
international trade balance, the lowering of commodity prices, reduction of
freight rates and other transportation changes. Continued declines regisGerman Reparation Payments Under Present
tered in the stock market reflect uncertainty in business conditions and
political situation. Small traders and industrialists are experiencing
Provisional Arrangements.
much difficulty in securing funds with which to meet year-end obligations.
In presenting the statements of German Reparations
The silk market is weak, despite the suspension of reeling operations on
Dec. 15. Overproduction on the part of cotton spinners makes curtailed Payments for November, the Agent General for Reparation
output inevitable, even though this meets with official opposition. The Payments, makes some preliminary observations, explanadomestic market for cotton yarns is dull, and exports to China and other
markets are declining. Depression in the paper market is reflected in smaller tory of the same, which we print here in full in connection
profits earned by leading mills.
with the statements:
In view of the provisions of the Hague Protocol of Aug. 31 1929, the
With a decline of about over 2,000,000 bahts ($880,000) in value of ex- monthly statement of the office of the Agent General for Reparation Payports and an increase of over 1,000,000 bahts ($440,000) in import trade, ments for the period beginning Sept. 1 1929, are divided into three parts,
compared with the previous month, and unfavorable balance characterized which for convenience are designated I, II, and III. The statements for
Bangkok's foreign trade in November. Exports were valued at 12,477,000 the month of November, with the cumulative figures for the period Sept. I
bahts ($5,490,000) and imports of 14.455,000 bahts ($6,360,000). (The to Nov. 30 1929, are presented herewith.
baht is equal to $0.44). Compared with the corresponding month last year,
Statement I shows, in the usual form, the available funds and the transimports under the classifications of general merchandise and wines and fers made under the Experts' Plan of 1924 (Dawes Plan). This statement.
spirits increased, while imports of bullion and gold leaf were less, resulting In other words, gives the transfers made out of the funds still available
in a net gain in total import trade of $1.200,000 bahts ($528,000). Total under the Dawes Plan in respect of the period ending with the Fifth Anexports were 3,000,000 bahts,($1,320.000) under the corresponding month nuity, and the cash balance remaining as at Nov. 30 1929.
last year, mainly because of decreased shipments of rice, and teak. Trade
Statement II shows the total receipts from Germany in respect of the
of tho southern provinces, which is conducted independently at Bangkok, Period after the Fifth Annuity of the Dawes Plan, and the total allocations
decrease in imports and an increase in export values in October, out of these receipts for distribution to the Creditor Powers and otherwise,
showed a
the last month for which information is available. Compared with the in accordance with the provisions of The Hague Protocol of Aug. 31 1929.
corresponding month last year, exports of tin, ore and rubber were larger.
Interest and exchange differences in respect of this period, which are held
subject to allocation, are also shown in this statement. The Hague
The high level of Swedish industrial output for the current year was Protocol provides that during the transitional period, until the
well maintained during October with the industrial production index re- Report of June 7 1929 (Young Plan), is put into force. Germany will make
the payments provided for in the Dawes Plan to the Agent General for
corded at ler against 125 and 110 respectively for the same month of 1928
German External Loan, 1924,
and 1927 (monthly average for 1923-25 equals 100). Foreign trade also Reparation Payments. The service of the
shows increased turnover with October imports valued at 176.120,000 stands, of course, as a first charge against these payments.
The Hague Protocol provided further that the Creditor Powers on their
crowns compared with 157,984.000 crowns during October, 1928 while
into force, that
exports amounted to 185,000 crowns against 165,569,000 crowns for the Part agreed, subject to the Young Plan being finally put
the amounts they were to receive out of the payments to be made by
same month of the previous year. For the first ten months of 1929 imports
Annuity of the Dawes
reached 1.445,100,000 crowns and exports 1,473.100,000 crowns compared Germany in respect of the period after the Fifth
limited,in respect of the share of each Power,to the amounts
with 1,411,300,000 crowns and 1,239,700,000 crowns respectively in 1928. Plan would be
of the Young Plan.
of the Annuities
The trade balance at the end of October thus revealed a favorable balance laid down in the distribution
The German Government, in addition, undertook to contribute (1) an
of 27,000,000 crowns against an import surplus of 171,600,000 crowns at
amount not to exceed 6.000,000 reichsmarks, to be retained out of the
the same time last year. According to present indications this year will
payments made by Germany during the transitional period,for the expenses
probably yield a larger export surplus than any previous year since the post
of the Commissions and the Organizations under the Dawes Plan covered
war boom.
hitherto by the Dawes Annuities, and (2) a lump sum of 30,000.000
The Department's summary also includes the following reichsmarks, once and for all, to the reserve fund to cover the costs of
with regard to the Island possessions of the United States: armies of occupation and the Inter-Allied Rhineland High Commission.

Statement II, in other words, shows, in respect of the Transition Period
up to Nov. 30 1929, the total receipts and allocations under The Hague
Protocol, the excess of receipts over allocations, and the interest and exchange differences held subject to allocation.
Statement III shows, in respect of the Transition Period, the total fluids
available for distribution to the Creditor Powers and otherwise, i. e., the
total allocations as under Statement II, and gives detailed figures in the
usual form of the transfers actually made up to Nov. 30 1929, with the
Cash balance remaining at Nov. 30 1929.
The balances shown on Statements I, II, and III, taken together,
represent the total funds in the hands of the Agent General for Reparation
Payments as at Nov. 30 1929, comprising 90,223.160.93 gold marks under
the Dawes Plan (Statement I) and 252.338,953.22 reichsmarks under the
Hague Protocol (Statements II and III combined). Of the balance under
the Dawes Plan, about 13.400,000 gold marks were in reichsmarks and
about 76,800,000 in foreign currencies. Of the combined balances in
hand under The Hague Protocol, about 128,100.000 were in foreign currencies and about 124.200,000 in reichsmarks. Of these reichsmark funds.
as shown in Statement II, about 86,300,000 represent funds received from
Germany in excess of the allocations made pursuant to The Hague Protocol.
This sum has been used to afford credit facilities to the Treasury of the
Reich, in accordance with Article I of Annex III to The Hague Protocol,
and as at Nov. 30 1929 stood invested in Treasury bills of the Reich
(Reichsschatzwechsel) to the nominal amount of 25,000,000 reichsmarks,
maturing Dec. 31 1929 and in Treasury certificates of the Reich (Berths
schatzanweLsungen) to the nominal amount of 50.000,000 reichsmarks,
maturing Dec.2 1929 and 12,000,000 reichsmarks maturing Dec.311929.
(On Cash Basis, reduced to Gold Mark equivalents.)
Cumulative Total
Month of
Sept. 110
Nov. 30 1929.
Available Funds—

Balance as at Aug. 31 1929
Receipts in completion of the Fifth Annuity:
Transport Tax
Int. dr amortization on Railway Reparation Bds_
Interest and exchange differences




Transfers Made—
In foreign currencies—
Service of the German External Loan 1924
Reparation Recovery Acts
Deliveries under Agreement
Transferred in cash


Dr.727.309.81 Dr.8,092,002.61

By reichsmark payments for—
Deliveries in kind
Armies of Occupation
Costs of Inter-Allied Commissions
Miscellaneous objects





Total transfers


Balance as at Nov.301929

Distribution of Amounts Transferred—
To the Powers—
France—Army of Occupation
Reparation Recovery Act
Coal, coke and lignite (Including transport)
Dyestuffs and pharmaceutical products
Chemical fertilizers and nitrogenous products....
Coal by-products
Refractory earths
Agricultural products
Miscellaneous deliveries
Cash transfers



Italy—Coal and coke (including transport)
Coal by-products
Cash transfers

Belgium—Dyestuffs and pharmaceutical products.'
Chemical fertilizers and nitrogenous products
Coal by-products
Agricultural products
Miscellaneous aeliveries
Cash transfers

(On Cash Basis, Expressed in Reichsmarks.)
Month of

From Germany:
Interest and amortization on Railway Repara53,534,498.33
tion Bonds, less discount
Budgetary Contribution
Transport Tax
Interest and exchange differences






Funds received from Germany In excess of allocations made pursuant to The Hague Protocol*
Interest and exchange differences, as above. unallocated




Balance as at Nov.30 1929

* Invested,as atNov.301920,in Treasury bills of the Reich (Reichaschatzwechsel)
to the nominal amount of 25,000,000 relchsmarks,maturing Dec. 31 1929 and In
Treasury certificates of the Reich (Reichsschatzanweisungen) to the nominal amount
of 50,000,000 relchsmarks, maturing Dec. 2 1929 and 12,000,000 reichsmarks
maturing Dec. 31 1929, all in accordance with the provisions of Article I of Annex
III to The Hague Protocol.
(On Cash Basis, Expressed In Relchamarks.)
Cumulative Total
Month of
Sept. 1 to
Nov. 30 1929.
Available Funds (I. e., the total allocations as
under Statement II)—
For service of the German External Loan 1924
To Creditor Powers under the Agreement upon the
106,114,285.71 318,342,857.14
Transition Period
ContrIbut'n to Reserve Fund for costs of occupation
Contribut'n to fund for expenses of Commissions and
of Organizations under Experts' Plan of 1924Totals


Transfers Made—
In foreign currencies:
Service of the German External Loan 1924
Reparation Recovery Acts
Deliveries under Agreement
Transferred in cash
Costs of Commissions and of Organizations under
Experts' Plan of 1924 chargeable to fund for
such expenses








By Reichsmark payments for—Deliveries in kind_ 33,747,814.38
Armies of Occupation
Miscellaneous objects
Costs of Occupation chargeable to Reserve Fund_ 1,985,000.00
Costs of Commissions and of Organizations under
Experts' Plan of 1924 chargeable to fund for
such expenses







Total Transfers




Japan—Chemical fertilizers dr nitrogenous prod•ts
Miscellaneous deliveries
Cash transfers





Portugal—Miscellaneous deliveries
Cash transfers








Belgium—Army of Occupation
Dyestuffs and pharmaceutical products
Chemical fertilizers and nitrogenous products_ _ Miscellaneous deliveries
Cash transfers








Yugoslavia—Chemical fertilizers and nitrogenous
Miscellaneous deliveries
Miscellaneous payments
Cash transfers





Italy—Coal and coke (including transport)
Coal by-products
Cash transfers


Rumania—Miscellaneous deliveries


Balance as at Nov. 30 1929

DIstrtbuHon of Amounts Transferred—
To the Powers—
20,040.429.93 France—Reparation Recovery Act
Coal, coke and lignite (including transport)
Dyestuffs and pharmaceutical products
Chemical fertilizers and nitrogenous products-91.195.5
Coal by-products
Refractory earths
Miscellaneous deliveries
Miscellaneous payments
Great Britain—Army of Occupation
Reparation Recovery Act
Cash transfers

Greece—.Miscellaneous deliveries
Cash transfers



U. S. of America—Deliveries under agreement



Allocations Made—
For service of the German External Loan 192C___ 7,373,461.87
For distribution to Creditor Powers under the Agreement upon the Transition Period, Annex III, Art.
I (1) of The Hague Protocol of Aug. 31 1929_ __106,114.285.71
Contribution to Reserve Fund for costs of occupat'n
provided for in Annex IV of The Hague Protocol
Contribution to fund for expenses of Commissions
and of Organizations under Experts' Plan of 1924
provided for In Annex III. Article II of The
Hague Protocol

Cumulative Total
Sept. 110
Nov. 30 1929.



Great Britain—Reparation Recovery Act
Cash transfers

Yugoalavia—Miscellaneous deliveries
Cash transfers

[VOL. 129.



Total transfers to Powers
For Prior Chartes—
'vice of the German External Loan 1924
Costa of Inter-Allied Commisedons
Total transfers


Dr.727,309.81 Dr.6,092,002.81


Japan—Chemical fertilizers and nitrogenous prod_ _
Miscellaneous deliveries
Cash transfers





U.S.of America—Deliveries under Agreement...Cash transfers






land—Agricultural Products
Miscellaneous payments


Mc. 28 19291

Month of

Cumulative rota
Sept. 1 to
Nov. 30 1929.





Cash transfers








In Foreign Currencies. By Reichsmark Payls Total Transfers.
Gold 31arks.
Gold Marks.
Gold Marks.

Gold Marks.
1st _ 1000,000,000.00 271,270,846.6530.37 621,970,652.7569.63 1175,876,966.72
1220,000,000.00 415,677,331.6335.35 760,199,635.09 64.65 1382,088,379.35
683,464,535.8249.45 698.623.843.53 50.55
4th __ 1750,000,000.00 943,236,140.54 54.25 796,061,054.8745.77 2452,842,213.37
2500,000,000.00 1418,518,002.23 57.83 1034,324,211.14 42.17
rec. de
in exch'ge
(5Yrs) 18,849,925.05

The original plan which will now be superseded by the Young plan
accepted by the six-Power conference at The Hague, provided a schedule
of progressive annuities which began with 1.000,000,000 gold marks (about
$240,000,000) for the first year and steadily increased until the standard
annuity of 2,500,000.000 marks (about $600,000,000) for the fifth year
Just ended, was reached. . ..
Under the Young plan, which is effective to-day. Germany's annual
reparations payments fo^ the first decade will be considerable less than the
standard annuity proscribed by the Dawes plan, and, while her new commitment to the creditor Powers still awaits the approval of the Reichstag, its
ratification by that body is viewed as assured by the Government.

The following is the statement issued by Mr. Gilbert
under date of Sept. 1:

2 697,992,428.62
Deduct-Discount on advance payments for service of:
German railway bonds
German industrial debentures
2 689,901,185.95

In foreign currencies:
Service of German external loan, 1924
British Reparation Recovery Act
French Reparation Recovery Act
Deliveries under agreement to the U. S. A
Settlement of balances owing for deliveries made
or services rendered by Germany prior to
Sept. 1 1924
Transferred in cash
Costs of Inter-Allied Commissions



31 '29 237,058,972.58
Cash balanceand other funds available on demand as at Aug.
in completion
Amounts payable by Germany in September 1929
of the fifth annuity
Total discount on advance payments of service of railway
and industrial debentures (five years)



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Gold Marks.
Available Funds189,488,944.86
Balance as at Aug. 31 1928
Receipts In completion of the fourth annuity in September 1928:
Transport tax
Interest and amortization on German railway bonds
account of the fifth annuity during the period Sept. 1
Receipts on
I928-Aug. 31 1929.
1 250,000,000.00
Budgetary contribution
Transport tax
Interest and amortization on Germany railway bonds
and amortization on German industrial debentures
Interest received on cash balances
Gain in exchange

925 053732.l66,856.87!-_
840, .
Totals 7988,

A nnuity

Berlin, Sept. 1 1929.
-General for Reparation I'ayments announces that in the fifth
The Agent
Year of the experts' plan, ended Aug. 31 1929, Germany has made all payments fully and punctually as they became due, and that transfers have
been made regularly and currently during the year, to the creditor Powers
and for the other objects contemplated by the plan, without interfering
with the stability of the German exchange.
The reparation payments actually received from Germany within the
fifth annuity year have amounted to about 2,500 million gold marks, including two payments in completion of the fourth annuity, to the amount
of about 79 millions, which were not due until September 1928. The fifth
annuity itself amounts to 2,500 million gold marks, and the two payments
necessary to complete it, aggregatIng about 79 millions, fall due in September 1929. The first of these payments, representing the final installment of the service of the German railway bonds for the fifth annuity year,
is duo Sept. 1 1929 in the amount of 55 million gold marks. The second,
amounting to about 24 millions, represents tho final installment of the
year's contribution from the transport tax and becomes due Sept. 21 1929.
The total transfers made during the fifth annuity year have amounted,
In round figures, to 2,453 million gold marks, as compared with total
receipts of about 2,500 millions. Of the total transfers, about 1,419 million
or 57.83%, were made in foreign currencies and about 1,034 millions, or
42.17%, were made by means of relchsmark payments in Germany.
The cash balance in the Agent-General's account at the beginning of the
fifth annuity year was about 189.5 million gold marks and at the end of
the year, on Aug. 31 1929, was about 237 millions, of which about 67
millions were in reichsmarks and about 170 millions in foreign currencies.
The threo accompanying tables show: I. The funds available for
transfer and the transfers actually made during the fifth annuity year,
further details of which will appear in the regular monthly statement of
receipts and payments; II. The amounts of the first five annuities, and of
the transfers made in foreign currencies and by reichsmark payment in each
of the first five annuity years; and III. The amounts transferred to the
creditor Powers in each of the first five annuity years, with the totals for
each Power during the five-year period.


Transfers Made


S. Parker Gilbert's Report of German Reparation
Receipts and Payments During Five Years Under
Dawes Plan.
Although several months have elapsed since the conclusion of the fifth annuity year under the Dawes Plan on
Aug. 31 1929, we are only now able to make room for a
statement issued under date of Sept. 1 by S. Parker Gilbert,
Agent-General for Reparation Payments, presenting a summary of the five annuities and of transfers made in each
annuity year. Total annuities during the five years amounted
to 7,988,849,925 gold marks, while the total transfers in
that period were 7,643,346,254 gold marks. The cash
balance on Aug. 31 1929 was shown as 237,058,972 gold
marks. Referring to the report of the Agent-General, a
cablegram Sept. 1 to the New York "Times" said in part:

Total available for transfer


Total transfers
Cash balance as at Aug. 31 1929


Total Transfers

Gold Marks.

By reichsmarks payments for:
Deliveries in kind
Armies of occupation
Costs of Inter-Allied Commissions
Miscellaneous objects


Total Transfers to Powers
Service of the German External Loan 1924
Costs of Occupation-French Army and Rhineland
Commisslon-Chargeable to Reserve Fund
Costs of Commissions and of Organizations under
Experts' Plan of 1924 chargeable to fund for
such expenses

Poland-Agricultural products




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Sixteen Nations Sign Treaty Banning Trade Export
and Import Restriction-Paris Convention Removes Contingents and Embargoes, Effective on
July 1.
Prom Paris, Dec. 20, the New York "Herald Tribune"
reported the following copyright cablegram:
The compromise League of Nations' convention for abolition of export
and import restrictions and prohibitions was signed here to-day by
representatives of 16 nations. Owing to a technical difficulty, the Italian
signature will not be added until to-morrow. Charles Lyon,
attache at Berne, signed for the United States, following receipt of formal
instructions from Washington this morning.
Under the compromise plan the convention will run as of Jan. 1, but will
not become effective until July 1. Any one of the signatory powers may
withdraw, from May 31 to July 1, if it sees fit, and a number of the
signatory Continental powers have indicated that they will take advantage
of this withdrawal provision unless Czechoslovakia and Poland ratify the
convention by May 31.



Every effort will be made to bring Czechoslovakia and Poland into the
accord by that date, but doubt is expressed here to-night whether this can
be accomplished. In any case, the treaty is expected to become effective
on July 1 for the United States, Great Britain and Northern Ireland, Japan,
the Netherlands, Norway, Portugal and perhaps three or four other
The treaty has nothing to do with tariff levels, but provides for the
complete alio., en by July 1 of all restrictions and prohibitions in international trade such as embargoes, contingents and quotas. The restriction
on importation of American films and automobiles through quota arrangements will come under the treaty.
Besides the six nations listed above, those which signed to-day are Austria,
Belgium, Denmark, France, Germany, Luxemburg, Rumania, Switzerland,
Jugoslavia and Hungary. Italy is certain to sign to-morrow and Finland
and Sweden may sign later.
The treaty is renewal):•-• each yeas for five years. Any signatory power
may withdraw between My 31 and July 1 of any year during the full
period of the treaty.

[VOL. 129.

normalcy. He said he was sure every one in Spain wished to live together
in peace and that the decision of the majority would be satisfactory.
The Premier admitted that the Government's "pride" had led to artificially bolstering the peseta and regretted that the gold basis was not

France to Have Acceptance Bank—French Commercial
Banks to Be Stockholders.
Formation of an acceptance bank, in which the principal
French commercial banks will be shareholders, as part of a
plan for reorganization of the Paris financial market is now
under construction, according to semi-official information
received in Washington Dec. 20 by the Finance and Investment division of the Department of Commerce. The
Washington account of this to the New York "Journal of
Commerce"from which we quote, adds:

The New York "Times," In Paris advleen, Dec. 20, said,
In part:
The proposed bank would have a capital of 100,000,000 francs.
For some time, according to information reaching the department, the
Eleven Make Reservation.
When the convention comes into effective application on July 1, next need has been felt for a real interest money market in Paris, but this could
year, the League of Nations will have successfully passed the first stage not be developed owing to the lack of a currency readily convertible into
of its comprehensive program for economic reform as laid down by the gold. This handicap was overcome by the currency reform and stabilization
world economic conference at Geneva in 1927. In the import and export of 1928 and with the increased gold reserves now available, it is felt that the
convention represents but a modest beginning, it can nevertheless be said market Is ready for the change.
In recent years,it was pointed out by officials of the division,thefinancing
that practically all the great commercial nations have gone on record
against the old policy of safeguarding internal trade by uneconomic restric- of International trade has been carried on mainly by New York and London.
Other handicaps hindered the development ofsuch a market in Paris besides
tions and prohibitions that make for unpleasantness in international
business relations, but contribute very little to material advancement of the inconcertibie currency, such as the lack of flexibility in certain banking
practices and the burden of various taxes.
the peoples concerned.
Before the war, the currency of France WU on what is commonly called
There still remains a possibility that the convention will be weakened
the "limping" standard. The notes of the Bank of France, which was the
by the abstention of 11 important members who have made their acceptsole bank of issue, were redeemable in either gold or sliver at the option
ance of the protocol contingent upon the signatures of Czechoslovakia and
of the bank; though redemption was usually in gold, the option acted as a
Poland. The two latter States have refused to enter into the convention,
check on
and, while there are hopes of the eventual acquiescence of Poland, the franc wasexcessive withdrawals. Throughout much of the war period, the
"pegged," but when this influence was removed in March 1919,
position of the Central European country is very doubtful.
the franc declined rapidly. On June 24 1928, the franc was stabilized at
The United States is one of the eight countries which ratified the approximately one-fifth
the old value, and was put directly on a gold basis
convention unconditionally, thereby thowing willingness to abolish restric- The Bank of France now
is required to redeem its notes in gold coin or
tions regardless of the attitude of Poland and Czechoslovakia.
bullion, having the right to adopt, with the consent of the Minister of Finance, a minimum amount for redemption at any one time.
Eases American Exportation.
From the American point of view, the effect of the convention will be
Cable despatches from Paris have since nnouncod the
that after July 1 American goods Will move across the borders of the
signatory States with greater ease, and those States which have erected election of Jean Velay,the Irving Trust Company's representbarriers in the form of contingent quotas will have to take measures to ative in Paris, to be manager of the new Banque Francaise
modify or remove them. This may facilitate the export of American films d'Acceptation. Charles Sergent, President
of the Banque de
and motor cars, but in those countries where these two important items
of American export are on a contingent basis, special restrictions may be l'Union Parisienne, will be Chairman of the Bank, and Emile
Oudot, a Director of the Banquo de Paris et des Pays Bag,
invoked to continue the present arrangements.
For foreign exporters, the path to the United States markets will be will be Vice-Chairman. Mr. Velay has
represented the Irvsimilarly smoothed out, especially in regard to essential raw materials
ing Trust since Dec.31 1919,and has had charge of the Comand semi-manufactured articles.
Although the convention was especially written to win the adherence of pany's interests in France, Belgium, Italy, Switzerland,
the Central European States, they are as yet but weakly represented. Spain, Portugal, Poland and the Balkan countries.
However, a lead has been given by the more important States, and this
During the World War, Mr. Velay served in the French
has done much to allay the suspicions held by the smaller countries that
Army,and was connected with the French High Commission
the convention was drawn up in the interest of the great trading nations.
One month before the end of the six-month period which must now in New York. Prior to that, he had eight years experience
elapse before the convention becomes effective, the signatories have the
right to withdraw if it appears that other countries, whose co-operation in banking in Sao Paulo, Brazil, first with the Societe
Financiere et Commerciale Franco Bresilienne, and later as
is vital to their interests, will not be included.
The absence of Poland and Czechoslovakia would cause the withdrawal manager for the Caisse Generale de Prets Fonciers et Inof 10 or 11 of the countries which signed to-day, leaving the treaty in
dustriels. The office of the Irving's representative at 22
operation for one year among the remaining signatories, including Great
Place Vendome, Paris, will be continued, and the business of
Britain and Japan.
Dr. Charles E. Lyon, American commercial attache at Berne, who its customers for the time being will be handled by Mr.
signed for the United States, characterized the treaty as a snore for
Velay's present staff.
freer trade as opposed to free trade, since the treaty has nothing to do
with tariffs.
Exchange of Stock in Merger of Deutsche Bank and
Disconto-Gesellschaft of Germany.
The Deutsche Bank mid Disconto-Gesellschaft has issued
a call to shareholders of Direction Der Disconto-Gesellschaft
to present their stock certificates to the Central Hanover
Bank & Trust Co. for exchange at the rate of one for one of
Deutsche Bank und Disconto-Gesellschaft, the merged
institution. New stock will be issued in 1,000 Rmk.par value
shares or 100 Rmk,for fractional amounts exceeding 1,000
Rm., or multiples thereof. Stock of Direction der DiscontoGesellschaft that has not been exchanged on or before
March 15 1930, will in due course be declared null and
void. Items regarding the amalgamation appeared in these
columns Sept. 28, page 1994 and Oct. 12, page 2321.
7.39 Pesetas to a Dollar—Lowest Rate in Years
Madrid Laid to Buying Foreign Gold.


From the New York "Times" we take the following
Madrid Associated Press advices, Dec. 26:

The peseta slumped to-day to a published quotation of 7.39 to the dollar,
the lowest mark in several years. It is normally about five to the dollar.
The decline caused some surprise because the Government floated recently
an interior gold loan of 350,000.000 pesetas, effective Jan. 1. The loan,
ostensibly to meet foreign credits was expected to bolster the peseta exchange, which has been fluctuating recently.
Many bankers attributed the decline to banks buying foreign gold to
meet liquidations on Dec. 31. Despite the published quotation, exchanges
in business transactions varied between 7.25 and 7.30.

From Madrid on Dec. 23 the "Times" reported the
following cablegram:
Premier Primo de Rivera told your correspondent to-day that the National
Assembly in January would discuss various steps with a view to a return to

France Pays U. S. ;12,067,934.63 On Account of Annuities Under Debt Settlement Agreement.
The payment by France to the United States of $12,067,934.63, representing the balance due on account of the annuities under the Mellon-Berenger debt funding agreement
of April 29 1926, was announced by the Treasury Department at Washington on Dec. 26. The announcement
The Treasury Department has received from the Government of France
the sum of $12,067,934.63, being the balance due on account of the annuities under the funding agreement of Apr. 20 1928. As authorized by the
terms of the agreement, the payment was made in obligations of the United
States which were accepted at par and accrued interest to date.
The obligations tendered in payament of the amount due were $10,572,500face amount 33e% Treasury notes:$1,398,600 face amount First Liberty
Loan 3ye% bonds due in 1947; $96,820.96 accrued interest on the obligations; and a cash adjustment of $13.67.
Under date of Dec. 18 1929, the President approved the bill authorizing
the settlement of the indebtedness of the Government of France to the
United States. The French Government having ratified the settlement in
July of this year, the Mellon-Berenger agreement of Apr. 29 1926, has now
been approved by both Governments.
Payments Reviewed.
The Government of France since June 15 1925, the date as of which the
debt is funded under the funding agreement, has paid on account of the
principal of the obligations given for cash advances and on account of interest
due on the obligations given for surplus war material purchased on credit
the sum of $112,932,065.37. It has been understood that upon ratification
of the debt
-funding agreement by both Governments, any sums paid by
France since June 15 1925, would be applied on account of the annuities
first due under the funding agreement.
The annuities due up to June 15 1929, aggregated $125,000,000. thus
leaving a balance due to $12,067,934.63. The amount which the Treasury
has received, therefore, places the annuities on a current basis. The next
annuity,amounting to $35,000,000, will be due and payable on June 15 1930.
The obligations of the United States accepted in connection with the payment have been cancelled and retired and the public debt reduced accordingly.

DEC. 28 1929.]



The signing by President Hoover of the bill authorizing
the settlement of the indebtedness of France to the United
States was referred to in our issue of Dec.21, page 3888.

towns had been surveyed or were being surveyed, and contracts had bees
let for construction of distribution facilities, including the wiring of houses
in 35 towns. The expense of wiring is borne by the Government,and is to
be repaid by the owners in installments over a period of 10 years.

Paris Rejects Gold in American Shipment—Bank of
France Refuses Bars as Containing Less Than
99 2% of Pure Metal.
The New York "Times" of Dec. 25 stated that according
to reports received here on Dec. 24 the Bank of France recently refused to accept part of a shipment of gold from this
country on the ground that the metal was of inferior fineness.
Continuing the'Braes" said:

The Irish Free State currency system, adopted in 1927
following the recommendation of a banking commission
headed by Professor H. Parker Willis of New York, is distinctive and adapted to the needs of the country, but by
making the notes convertible into Bank of England notes
the possibility of exchange differentials between the Free
State and England, with whom the greater part of financial
transactions take place, is removed. Discussing the Free
State currency system, the bulletin states:

In 1926 the Government of the Free State felt that a banking system
The identity of the shipper who was thus left with a parcel of gold bars
on his hands was not revealed. Presumably the metal will be forwarded to adapted primarily to meet the needs of an industrial country, such as
some other European market where the restrictions of the bank of issue are England, could not adequately serve the needs of an agricultural country
like the Free State. The Government therefore appointed a banking comless severe.
The Incident arose, it is supposed,from the ignorance of the shipper that mission "to consider and report what changes,if any,in the law relating to
the Bank of France accepts only gold bars of .995 fineness, that is, bars banking and note issue are necessary or desirable, regard being had to the
which are 991% pure gold. It is the practice of the Federal Reserve Bank altered circumstances arising from the establishment of Saorstat Eireann."
The reports of this Commission included a recommendation that no
here to accept gold bars of any fineness, although payment is made only for
central bank be established, and that no new unit of currency should be
the actual gold content of the bars.
In selling gold to exporters the Reserve delivers a certificate testifying to adopted, but that distinct Irish Free State legal-tender notes, linked to the
the identity of the bars. The bars themselves are stamped at the Assay British currency, should be created, and that a currency commission,
Office with the percentage of their fineness. It is explained that doubtless charged with issuing and maintaining Free State notes, should be set up.
the shipper in question received some bars of less than .995 fineness, and the These recommendations were accepted and the requisite legislative act was
fact that these would not be accepted by the Bank of France was not realized passed by the Dail in December 1927.
until they were presented. The consequent delay in putting the gold to
It is noted that by following a policy of meeting ordinary
work will deprive him of profit on the transaction.

$22,786,730 Gold Purchase By Bank of England Largest
In Its History.
The following London advices Dec. 21 are from the New
York "Times".
The Bank of England to-day bought /4,679,000(822,786,730)in bar gold,
the biggest day's purchase in the bank's history.
'The shipment had come from New York on the liner Berengaria and had
been conveyed from Southampton to London in armored railway aus with
plating three inches thick.
Detectives superintended the unloading of the precious cargo and rode
with the gold until it was safely inside the bank's vaults.

expenses with recurring or ordinary revenue, and by borrowing only in order to meet capital expenditures, the Irish Free
State has kept its borrowing at a minimum. The amount of
debt arising out of loans amounted to 22,528,000 pounds
at the end of March 1929, the Institute points out. The out,
standing amount of Dail Eireann loans contracted during
the period from 1919 to 1921 for the "Irish Republic" is

How Funds From Loan to City of Warsaw, Poland,
Floated in New York, Were Applied.
According to the "Survey of Poland," issued Nov. 2 by the
Lists For Spanish Government Loan Closed.
American Polish Chamber of Commerce and Industry in the
The following is from the "Wall Street Journal" of Dec. 23: United States, the proceeds from the loan to the City of
Lists for the Spanish Government gold loan of 8350,000,000 pesetas were Warsaw, floated on the New York market a year ago, have
closed within three-quarters of an hour after opening. In order to meet
as follows:
private demand, quota of 100.000,000 pesetas reserved for the Bank of been used
Spain was canceled, while that reserved for other Spanish banks was reduced
to 112,000,000.

The loan was referred to in our issue of Dec. 21, page 3889.

1. Investments in enterprises which assure an immediate return
return on the capital:
street railways—construction ofnew linesand purchase
of rolling stock
Extension of the water and sewer systems
Gas works
Warehouses and elevators
Market halls
Municipal office buildings
Other enterprises
2. Investments in enterprises which offer a partial return on
the capital
Garbage incinerators
Bathing Pavilions
Street improvements
Purchases of plots and completion of tenement houses
of a National Museum
Establishment of a Zoological Garden
which do not give returns on the capital but
3. Investments
which are necessary to the development of the city:
Construction of a hospital
Establishment of health stations
Drainage of certain municipal properties

Irish Free State's Adoption of Legal Tender Currency
and Development of Shannon River Hydro-electric
Plants Important Steps According to Institute of
International Finance.
The Irish Free State has taken two important stepsforward
economically within the last few years in the Shannon River
Hydro-electric development and the adoption of a Free State
legal-tender currency, according to a credit position study of
that Government issued by the Institute of International
Finance. The Institute, a fact-finding body organized to
study foreign credit conditions, is conducted by the Invest,.
Corp. Will Finance Equipment of
ment Bankers Association of America, in co-operation with Standard Steel Car
Polish Railroads—Long Term Credit Granted.
New York University.
Associated Press advices from Warsaw, Poland, Dec. 10
The Shannon River power development, the Institute
points out,will not only meet the Free State's present demand stated:
The Ministry of Communications has signed a contract with Lilpop,
for electric power, but will also provide for the needs of indusprovide the State railways with 14,000 freight cars
trial establishments which may be erected in the future. The - & Loewenstein to coaches on ten years' credit. The order will be
' 1,100 passenger
project, a Government enterprise, is to be developed in three executed in seven years. The arrangement will be financed by the Standard
stages: (1) partial development—installation capacity, 90,- Car Finance Corporation of America, and the credit obtained will In two
000 horse-power; (2) further dvelopment—installation of an years total $20,000,000. advances, the American group will supply the
In addition to these
additional 90,000 h.p.; and (3) final development
--the Lilpop firm with $1,000,000 to enable it to increase its output. The
completion of the power plant. The total cost of the enter- Americans also propose to establish a factory for rolling stock to supply
prise is estimated at approximately $32,704,400, all of which Poland's neighbors with railway material.
The American-Polish Chamber of Commerce under date
is to be obtained from loans. Up to October 1929, the
Government had spent above $22,880,600 on the project, of Dec. 14 has the following to say in the matter:
The concern Lilpop, Rau & Loewenstein, which recently sold to the
the first unit of which was completed and placed in operamade arrangements
tion in July. Since the capacity of the Shannon hydro- Standard Steel Car Corporation a block of its stock,
with the Polish Ministry of Communication for deliveries of freight and
electric plants, when completed, will be 180,000 h.P., or passenger railroad cars to the Polish State Railroads.
about twice that needed to supply present demands for
According to the terms of the contract, Lilpop, Rau & Loewenstein will
pascurrent, one of the first problems to be solved in this con- deliver during a period of seven years 14,000 freight cars and 1,000 to
senger coaches on long-term credits amounting during the next decade
nection, the Institute notes, is to increase consumption of $20,000,000.
electricity in the Free State. The study says:
The Polish Railroads will pay for the cars in half-yearly instalment..
The Irish Free State is primarily an agricultural country, with only a
few manufacturing plants of importance. The success of the Shannon
project depends to a large extent, therefore, upon the use of electricity for
household purposes. At tho present time there are 86 towns with distribution facilities for direct current which must be reconstructed in order to
permit the distribution of alternating current generated by the Shannon
power plants. Three of the existing plants were undergoing conversion in
November 1928, and preliminary steps had been taken for the conversion
of the remaining number.
In addition,therewere approximately 140towns with a population of more
than 500 which had no electric supply. In November 1928, all of these

85% of each instalment being in Treasury notes and 15% in cash. Tt e
rate of interest has been fixed at the same level as on collateral loan.
extended by the Bank of Poland, at present 91%, with a minimum of
The transaction will be financed by the Standard Steel Finance Corporation of America.
The Standard Steel Oar Corporation will, moreover, extend to Lilpop,
Rau & Loewenstein a credit of $1,000,000, the proceeds of which will be
used for the purpose of increasing the production of that concern.
This arrangement is of great importance to the future development of
the Polish Railroads, inasmuch as considerable funds, which would have
been used for the purpose of increasing the rolling stock, are now released



and will be employed in financing the construction
of new lines, especially
the line connecting Upper Silesia with the Port of
Mr. Charles S. Dewey, Financial Adviser to the Polish
Government, when
making a formal announcement of this important agreement
at a luncheon
tendered in his honor on Dec. 8 by the Polish American Chamber
of Commerce in Warsaw, stated that this is a new astern of financing
Polish production by foreign capital and that he considers the above contract
turning point in Polish-American relations.
Mr. Dewey played an important role in the negotiations
between the
two concerns.

Moscow Bans Joys of Christmas Day—For Bolsheviki
It is but Third Day in "Unbroken Working Week,"
Without Festivities.
Walter Duranty in a wireless message from Moscow Dec.
24 to the New York "Times" says:

[VOL. 129.

Silver Prices Fall With) Chinese Pool— New York's
Quotation 47Yi Cents an Ounce, Lowest Since
Shanghai a Heavy Seller.
Collapse of a Chinese pool in silver Dec. 23 broke the price
in London to the lowest point at which the metal has sold
In that market since 1903. We quote from the New York
"Times" of Dec 24, which went on to say:
In New York, selling was general and the quotation declined
to the lowest touched since 1915. At the close the price in London was
2174d and in New York 475 cents an ounce, the day's loss here
amounting to h cents.
The silver pool, which, according to New York metal dealers, is centred in Shanghai had accumulated a considerable stock against anticipated monetary requirements. When this demand failed to materialize
the pool turned seller and the consequence was a swift decline in prices
here and abroad.
Chinese demands for silver are the principal ones, while a comparatively small amount is used for commercial purposes throughout the
world. Occasionally, buying orders have originated in India, but that
country is now said to possess a stock of 20,000,000 ounces above her
needs. In 1926, the Royal Commission on Indian Currency and Finance recommended the adoption of the gold standard for India,
since that time the commission's proposal has been working against
silver as a commodity.
Although it is expected that it will be many years before silver is
abandoned as a monetary unit, reports have been current in banking
circles that France may insist on the gold standard for Indo-China.
addition, the report of Professor E. W. Kemmerer, who, with a commission of experts has been engaged in studying the Chinese financial
problem, is expected to contain some suggestions for the gradual
adoption of the gold standard.
At any rate, according to New York metal dealers, the Chinese
pool found itself at the end of its resources and obliged to dump
amounts of exchange on the London and New York markets. Hongkong dollars sold in New York at 42 cents, Peking taels at 54g cents
and Shanghai tads at 52h cents. These all represented new low
prices for the year.

Moscow,the city of church bells; Moscow, the capital of"Holy Russia"
has no Christmas Day this year, no holiday, no trees nor feasting, and no
special services in churches or chapels. Christmas is but the third day in
the new "unbroken working week" which, only introduced a few months
ago, has found favor with the masses.
Factory and office executives complain it is difficult to get a quorum
for the innumerable "conferences" which American experts often say are
the bane of Soviet business life. They complain they must often work
on the fifth free day because they cannot afford to let business go on without
the conferences.
Yet, few men are really indispensable and to the public the new system
has a great advantage in this country. Movie shows,skating rinks,theatres
and other forms of amusement are so limited and the city population's
living quarters so crowded that the universal week-end holiday had more
drawbacks than charm, whether one went out or stayed at home. Then,
too, the stores were closed, which was a nuisance for poor people living on
narrow budgets. Anyway, the Saturday "queues" have disappeared and
most of the Saturday and Sunday drunkenness.
The new system has reduced unemployment and increased production.
According to The "Industrial Gazette," 35% of industry is now on the unbroken week basis, which will become universal by the end of next year.
From the religious angle the population seems little disturbed. The
Greek Church has lost its hold on the urban masses. Those who wish can
still attend evening services.
In regard to Christmas, another factor explains the ease of the Bolshevik Petition By Chinese Chamber of Commerce to Nanking
victory. The old Orthodox Church never accepted the new calendar, so
Government For Discontinuance of Likin Taxes.
that its faithful Christmas is still a fortnight hence.
In its issue of Dec. 22 the New York "Times" reported
The new "living church" lost caste as the public came to believe it an
the following special correspondence from Shanghai, Nov.
instrument in the hands of the State to weaken the Church's power
by a
split. Which, perhaps, it was.
The New Year celebrations, which have also vanished officially from
Strong protest against the continued collection of illegal likin, or
from the calendar, will be observed nevertheless. But Christmas is gone.
transit taxes, has been made by the Chinese National Associated
Chamber of Commerce in a petition to the Nanking Government.
Immediate abolition of the likin "and all other vexatious taxes" is
Turkey Observes Dec. 25 as National Savings Day.
demanded, and the government is reminded of its repeated promises
that when the customs duties were increased these other levies would
Associated Press accounts from Angora Dec. 24 stated:
Christmas Day, which is laden with gifts and merriment for the Christian cease. Customs autonomy was achieved more than ten months ago,
the chamber asserts, but the illegal taxes are still collected.
world, will be this year Turkey's day of grim National economy.
"Instead of abolishing all the vexatious levies," says the petition,
The Turkish Government has named Dec. 25 as National savings day
"the Ministry of Finance has introduced new 'consumption taxes' for
to instil notions of economy in the luxury-loving Turkish people. The
savings day is part of the Government's program for extricating Turkey five provinces—Kiangsu, Chekiang, Kiangsi, Anhui and Fukien. It is
indeed highly regrettable that the demands of the government upon the
from economic depression.
The Angora Industrial Bank will give a tea party to-morrow to Turkish people have never been rectified and that the faith of the people, on
the other hand, has not been justified and is treated as though it
mothers and school teachers to outline methods of teaching economy to
the youth of the country. Speeches and publications throughout the amounted to nothing."
nation will be devoted to the same purpose, and Dec. 25 will henceforth
be celebrated annually as National economy day.
Text of Czechoslovak Law for Stabilization of Currency.
One of the Government schemes for inculcating notions of household
economy in the Turks is the replacement of the traditional Turkish coffee
The Federal Reserve Board in its December Bulletin,
by linden tea, a product of Anatolia.
Several functionaries have tried to set an example recently by serving makes public as follows, the text of the newly enacted curlinden tea instead of coffee to their guests. The Angora bank is follow- rency law of Czechoslovakia:
ing this lead in entertaining the mothers and the school teachers, who
Test of Czechoslovak Currency Law.
have not hitherto shown much enthusiasm for the idea.
On Nov. 7 1929, the standing committee of the Czechoslovak National
Assembly enacted, in pursuance of Article 54 of the Constitution, certain
legislation for the definite stabilization of the Czechoslovak currency. By
Albert Conway, New York State Superintendent of Section 11 the enactment was to come into force on the day of proclamation:
Insurance Sustained on Russian Assets—Appellate the Act was proclaimed in force on Nov. 27 1929. The text (English text
furnished by National Bank of Czechoslovakia) is given below:
Division Upholds Action to Preserve Funds of
Sec. 1. The Czechoslovak crown (Kc) as the present currency unit of the
Insurance Companies Branches Here.
Czechoslovak Republic shall be equal in value to 44.58 milligrammos of
fine gold (80.029629).
From the New York "Times" of Dec. 21 we take the
Sec. 8. The National Bank of Czechoslovakia (hereafter referred to as
the Bank) shall maintain the exchange value of its notes at the legal rate
Albert Conway, State Superintendent of Insurance, again was success- (see Sec. 1) and can be made responsible for nonperformance of this prime
ful yesterday in the Appellate Division of the Supreme Court when he duty (see Sec. 11 of the bank of issue Act of April 14 1920, No. 347 of the
was sustained in his fight to preserve the funds belonging to five United Collection of Laws and Ordinances).
Sec. 3. (1) The Bank shall be bound to purchase at the head office in
States branches of Russian fire insurance companies which he is holding
for the benefit of foreign creditors, policy holders and stockholders, during Prague and at such branch offices as shall be designated by the Bank gold
the non-recognition of the Soviet Government by the Government of the at the price of 1 Kc per 44.58 milligrammes, but only if the seller offers a
United States.
quantity of at least 12 kilogrammes of fine gold 187,975]. The Bank shall
The decision handed down by the Appellate Division involved a claim be entitled, in effecting such purchase, to make no other charges except for
for 823,860, but the decision will act as a precedent in similar cases in- assaYing, and for coining in accordance with a scale fixed by the Government mint (see Sec. 4, Par. 6).
volving more than $100,000.
In another phase of the case, Mr. Conway was sustained by the Court
(2) The Bank shall at the aforesaid premises (see Par. 1) redeem its notes
of Appeals in Albany last week. At that time, he was represented by at its option either by gold (either in the form of current coin or gold bullion)
at the price of 1 Kc per 44.58 millIgrammes of fine gold or by gold foreign
Clarence C. Fowler, special deputy of the Insurance department.
The case decided yesterday related to the Russian Reinsurance Com- exchanges at the rate of the day quoted on the Prague Bourse, but only In
amounts equal in value to at least 12 kilogrammes of fine gold. Should the
pany of Petrograd, Russia, several directors of which, when the Czars'
Government fell, fled to Paris and retained American counsel on a con- Bank fail to carry out this obligation within 24 hours of the presentation
tingent retainer to recover for the refugee directors the American assets. of the notes without being able to plead force majeure, its charter shall be
The New York State Insurance Department refused to allow the assets to cancelled (see Sec. 12b of the Bank Act).
be transferred to the refugee directors at Paris, and upon application to
(3) The Government in agreement with the Dank will determine by special
the Supreme Court was directed to take possession of the funds and hold decree the date on which the aforesaid legal obligation stated in Paragraphs
them for the benefit of credhors, policy holders and stockholders wherever 1 and 2 shall come into force, or, having come into force, to what extent
this obligation shall be temporarily limited or amended with regard to the
they might be situated.
Superintendent Conway contended that the services of the American amount.
Sec.4. (1) In conformity with the legal gold content of the Kc (see Sec. 1)
attorneys could not be paid, because they were retained by the refugee
directors upon a contingent-fee contract conditional upon the success of gold coins (hrivny) shall be minted, containing 900 parts of fine gold and
100 parts of copper.
procuring the release of funds and their transmission .to Paris.
In another decision handed down yesterday the court refused to reverse
(2) One kilogramme of standard gold shall be minted into 201.89783969
an order which directed Superintendent Conway to pay out of the funds hundred-crown pieces, and one kilogramme of fine gold into 224.31583669
in his hands the costs of the stenographer's minutes which had been furnished hundred-crown pieces,the standard weight of the hundred-crown piece to
be 4.9533 grammes containing 4.458 grammes of fine gold.
to the American counsel for the refugee directors.


Dm. 281929.]


(3) The minting of the coins shall be as accurate as possible;in so far as Argentina to Get .£5,000,000 Loan in London—Hailed
this can not be attained absolutely a tolerance shall be allowed either
as Step Toward Recovery of the Peso's Exchange
way of 2-1000 in standard weight and 1-100 in fineness.
(4) One face of the hundred-crown piece shall be impressed with the
armorial bearings of the Czechoslovak Republic, and the denomination of
The Argentine Government has arranged a loan of £5,according to the charthe coin shall be marked on the face or the reverse
acter of its general design.
000,000 in London for one year at 53 % interest plus M of
(5) The hundred-crown gold pieces shall be legal tender for the payment 1% commission for the bankers, according to a Buenos
of any amounts which can be made in Czechoslovak currency.
the New York "Times" which
(6) The general design of the hundred-crown gold coins and the date on Aires cablegram Dec. 24 to
which the Government Mint shall commence their coinage on account of said:
the Government, as well as the date on which unlimited coinage of gold for
The arrangement provides, that two private banking firms in London
Private persons shall commence, shall be fixed by special Government
will discount Argentine Treasury notes for the net amount after deducting
decree which shall also fix the minting charges, which, however, shall not interest, commission and the British stamp tax.
exceed 0.3% of the value.
It is clearly stated that the notes are not renewable and must be paid
Sec. 5. (1) If a hundred-crown gold coin has lost in weight (see Sec. 4, by
Dec. 31 1930. The payment also must be made in gold coin if the
Par. 2) by the ordinary wear and tear not more than 5-1000 of the standard
bankers so demand when the loan expires.
weight, it shall be considered as of current weight and shall be accepted as
While financial circles consider the amount insufficient totally to correct
of full weight for all payments both at Government and other public cash
the present situation, due to the unfavorable balance of trade against
and in private dealings. If, however, its weight has diminished by
Argentina, it is generally believed to be sufficient to have a substantial
ordinary wear and tear below the current weight or if the coin has been
corrective effect on the exchange rate of the Argentine peso, which has
reduced, impaired, or perforated otherwise than by ordinary wear and
been low since the closing of the gold Conversion office.
tear, it shall cease to be legal tender. Government and other public cash
The exchange value of the peso already has recovered considerably in
receiving such coin shall withdraw it from circulation by deoffices when
relation to the dollar and the pound sterling, on rumors that the government
basing the same in a striking manner and returning it to the presentor
was arranging a foreign loan. The loan will also enable the government
without compensation.
to meet pressing financial obligations. It is expected to have a generally
(2) Any counterfeit coins ascertained by any of the aforesaid cash offices
effect on the situation.
shall be impounded without compensation by the Government and sent to helpful
the Government mint.
Regarding the loan the "Wall Street Journal" of Dec. 26
(3) The Government mint, to which all faulty coins must be sent, shall announced the following from London:
decide whether the coins have lost weight through ordinary wear and tear
Baring Bros. & Co. and Morgan, Grenfell & Co. have placed in London
or other damages (see Par. 1) or whether they are counterfeit (see Par. 2).
one-year notes at a discount of 51j`7,•
Sec.6. (1) The Bank shall maintain the following metallic cover: Until £5,000,000 of Argentine Government
notes maturing Dec. 1 1930.
the end of 1929 at least 25%, by the end of 1930 at least 30%, by the end Payment will be made Jan. 1, the
of 1935 and thereafter at least 35% of the total note circulation plus sight
(2) In calculating the relation of the metallic cover to circulation, the
Drawn for Redemption.
average rate of exchange of the gold foreign exchanges in each fiscal quarter Bonds of Republic of Cuba
as quoted on the Prague Bourse during the last fortnight of the preceding
notified holders of Republic of
J. P. Morgan & Co. have
quarter shall be conclusive.
gold bonds of 1914, due February
(3) At least one-half of the metallic cover shall consist of gold bullion or Cuba External Debt 5%
coin; the balance may consist of foreign bank notes convertible into gold 1 1949, that $345,400 aggregate principal amount of the
(valuta), foreign full legal tender coin and bills of exchange, which are bonds have been drawn by lot for redemption on Feb. 1 1930,
either drafts on the principal banking places in Europe and America inand accrued interest. Bonds so drawn will be
dorsed by first-class banking institutions and otherwise conforming to the at 102
conditions of bank drafts, or liquid balances with banks of unquestionable redeemed upon presentation and surrender at the office of
standing in the principal banking places of Europe and America.
& Co., 23 Wall St., on and after Feb. 1 1930,
Sec. 7.(1) The present share capital of 12.000,000 United States dollars, J. P. Morgan
divided into 120,000 shares of 100 United States dollars each, shall be con- after which date interest on the drawn bonds will cease.
verted at the rate of $1 to 33.75 Kc into 405,000,000 Kc, the nominal
value of one share thus becoming 3.375 Kc.;it will not be neccessary, however, to issue new shares nor to stamp the old shares.
(2) The Bank is authorized to increase its capital to 607,500,000 Kc Bonds. ofiKingdom of Belgium Called For Redemption.
should a resolution to that effect be passed at a general meeting.
J. P. Morgan & Co. and the Guaranty Trust Co. of New
Sec. 8. When the State notes debt has been reduced to not more than
1,000,000,000 Kc, the Bank shall be authorized, in spite of the principle York are issuing a notice to holders of Kingdom of Belgium
stated in Paragraph 1. Section 129 of the Bank Act,to discount Government external loan 20-year 8% sinking fund gold bonds, due
bills up to a total of 200,000,000 Kc to cover temporary differences in
face amount of the bonds
budgetary expenditure and revenue. Such temporary credits shall be Feb. 1 1941, stating that $1,500,000
repaid not later than the end of March in the following year. Such bills of this issue have been called for redemption at 107
must also bear the signature of a banking institution.
out of moneys in sinking fund. Bonds
the Minister of interest on Feb. 1 1930
Sec. 9. The Bank is authorized, in agreement with
paid on and after that date at
Finance and as long as no infringement of its own legal obligations is in- so drawn, will be redeemed and
volved, to participate in international financial and economic institu- the office of J. P. Morgan & Co., 23 Wall St., or at the
tions and arrangements of monetary importance.
Guaranty Trust Co.of New York,140 Broadway, New York.
Sec. 10. (I) The following are hereby cancelled:
reference is made to Interest will cease on all such drawn bonds after the redemp(a) Sections 6 and 15 of the Bank Act. Where
Section 15 in Section 12, Section (b), of the same Act, the reference shall tion date.
now be to the last sentence of Paragraph 2, Section 3. of this enactment.
(b) Article III, Paragraph 1, Article VII and Article XIV, of the Act
of April 23d 1925. No. 102 of the Collection of Laws and Ordinances amend- Bonds of Greek Government (Stabilization and Refugee
ing and supplementing the Bank Act.
Loan of 1928) Drawn For Redemption.
(2) The following enactments are hereby amended:
(a) The Bank Act. Section 929, Paragraph 1.
Speyer & Co. and The National City Bank of :New York
(6) Act No. 102, 1925, of the Collection of Laws and Ordinances, Article announce that the third drawing for the sinking fund of the,
VIII in so far as where reference in this article is made to Article VII, the
Greek Government 40-year 6% secured sinking fund gold
reference will now be to Section 6 of this enactment.
(c) Act No. 102, 1925, of the Collection of Laws and Ordinances, Article bonds (Stabilization and Refugee Loan of 1928) has taken
XVI in which Annex A shall read as follows:
bonds so drawn will be payable
Share of the National Bank of Czechoslovakia for Kc 3,375.
Three thousand three hundred and seventy-five Czechoslovak crowns
or his lawful heirs
conferring on
and assigns all rights in the entire property and profits of the "National
Bank of Czechoslovakia" that belong to every shareholder according to
the laws of April 14 1920. No.347 of the Collection of Laws and Ordinances,
and of April 23 1925, No. 102 of the Collection of Laws and Ordinances,
and according to the enactment of the Standing Committee of the National
of the Collection of Laws and
Assembly of Nov. 7 1929, No.
Sec. 11. This enactment shall come into force on the day of proclamation.
be charged with putting it into execution.
The Minister of Finance shall

Sao Paulo to Borrow $60,000,000 in Coffee Protection
Under date of Dec. 25 a cablegram from Sao Paulo to the
New York "Times" said:
The President of the State of Sao Paulo received authorization from the
state Senate yesterday to contract a foreign loan not to exceed 12,000,000
pounds sterling (about 560,000,000), which will be used to carry out a
coffee protection plan.
The legislative enactment permits the loan to be contracted by the
State bank, the terms to be subject to the approval of the State Senate.
No information WRS forthcoming as to whether negotiations for the loan
had been initiated, but it was generally believed steps had been taken
as a result of a recent announcement of Lazard Brothers, English bankers. that that company was unable to make further advances on account
of the stringent financial situation in England.

place and that the $58,000
on and after Feb. 1 1930 at par at either of their offices.

Denies Loan Sought Here by
From its Washington correspondent, the New York "Journal of Commerce" reported the following, Dec. 26:


Ortiz Rubio

President•elect of Mexico Pascual Ortiz Rubio, in his first interview
since he arrived in Washington this morning as the official guest of the
nation, to-night dispelled reports that he is in this country to negotiate
Mexican Govs stabilization loan in the United States in behalf of the
In response to questions put by newspapermen whom he received at the
Mexican Embassy, Senor Ortiz Rubio said that Mexico had sufficient
resources to relieve the necessity for any financial loan in the United States
and that he was not here for that purpose. He insisted that his mission
to the United States was strictly one of social good will.
The Mexican President-elect made another gesture toward amity between
his country and the United States in declaring himself in favor of the new
land laws, which were designed to remove even further any possible cause
for friction. He announced himself whole-heartedly in favor of legislation
now pending before the Mexican Congress which would provide for cash
settlement for all land expropriated in the future under the agrarian
policy of the present Government of Mexico. lie explained that such land
as had been seized by the Government was being settled for on the basis
of terms stipulated by the general claims commission with mealean Government bonds.
In referring to conversations which he had since his arrival with President Hoover and other high officials of the American Government, the
Mexican President:elect described the subjects discussed as bearing entirely
upon cordial relations between the two countries.



Mexicans Resume Trading in Laredo, Tex. Though
Embargo Stands.
Associated Press advices from Laredo, Tex. Dec. 23,
were carried as follows in the New York "Times":

[vol.. 129.

The move came as a complete surprise to bankers and foreign exchange
experts all over the world and resulted in severe criticism in some quarters,
many men believing that economic, financial and political conditions
Argentina did not justify the action.
Although gold losses of the Argentine Republic thus far this year have
totaled approximately 5120,000.000, of which $72,000,000 has come to
Trade with Laredo merchants by citizens from the other side of the Rio United States, the
loss is considerably less than were Argentina's imports of
Grande was resumed to-day, although no announcement was made here gold during 1927 and
1928. Comparatively little of the metal has been
that the virtual embargo clamored by Mexican officials against Laredo taken from the Caja, most
of It coming out of stocks held by private banks.
merchants had been lifted or modified.
Advices to bankers here coincident with the news of the closing of
Mexican trade with Laredo merchants was curtailed shortly after the Caja said that the Banco de
la Nacion. Argentina's central bank, which is
closing of the consulate here when the privilege of carrying small articles now in control of
exchange, has a cover of approximately 82%, including
and household goods duty free from the American side to the Mexican side conversion fund, against
the currency. This cover is one of the highest in
of the boundary was rescinded.
the world.
Despite lack of a public announcement that the embargo had been lifted,
Effect of Action on Loan Here.
merchancs reported their heaviest business since differences with the
Another circumstance which made the closing of the Caja a surprise to
Mexican Government arose after activities of District Attorney John A.
bankers was that it was synchronous with the announcement of an
$8,000,Valls in trying to arrest former President Cedes.
000 loan arranged In this market on behalf of the Province of Buenos Aires.
Border business men also were optimistic to view of the new Mexican
The bankers who were about to offer the loan postponed their action in
customs law which becomes effective in January.
view of the effect of the closing of the conversion office.
Under these regulations, the consulate no longer will be the clearing house
Dropping of the gold standard in Argentina, however, has happened on
for American exports. This business will revert to the customs house.
numerous accasions.
The 10% consular fee will be eliminated.
The fiscal history of Argentina is presented in a chronological list comIf this is done here, business men said, the closing of the consulate will
piled by Max Winkler, economist, as follows:
not affect expert and Import business through Laredo.
1820—First issue of paper notes by Buenos Aires Junta.
Further Associated Press accounts from Mexico City, 1822—Discount Bank established.
1826—National Bank succeeds Discount Bank—Notes guaranteed
- Dec. 24 said:
government—Rapid increase in notes due to war with Brazil—
Excelsior to-day says it has learned that permission given for the resumpNotes declared inconvertible.
tion of trade with Laredo merchants by Nuevo Laredo people will in no way 1828—Currency declines to less than one-seventh.
affect the consulate at Laredo which "will remain closed until the reasons 1835—Note issue reaches 15,000,000
that caused the action disappear."
1840—Currency declines to lees than one-thirty-second.
The paper says that resumption of trade was permitted inasmuch as 1854—Noteissue reaches 204,000.000
Mexican citizens were suffering and they had vigorously beseeched the 1865—Note issue reaches 298,000,000 pesos.
Government not to make them continue bearing the hardship of no trade. 1866—Provincial banks empowered to issue notes—Provis
ion made for
Under date of Dec. 18 the "Times" reported the following 1867—Exchan redemption of outstanding paper money
ge office (Officina di Cambio) established—Conversion rate
from Washington:
fixed at 25 paper pesos for one peso specie.
The State Department will do what it can toward the reopening of the 1873—Normality re-established—Gold reserve reaches 16,000,000 pesos.
Mexican consulate at Laredo, Tex., and the removal of the restrictions im- 1874—Civil War—Political and economic crisis—Notes again declared inposed by Mexico on the movement of merchandise and tourists between the
United States and Mexico at that port.
1881—Note issue reaches 882,000,000—Crisis aggravated by land boom and
Joseph P. Cotton, Under Secretary of State, who received the appeal of
issue of notes in each province—Law enacted requiring Bank of
Governor Dan Moody of Texas for assistance in clearing up the situation,
Buenos Aires to contract note issue and replace inconvertible notes
gave that assurance to-day, although he would make no promises as to what
by specie notes at rate of 25 to 1.
could be done in approaching the Mexican Government on the situation. 1884—Old notes replaced by 61,750,000 new notes.
Secretary Stimson is confined to his home with a cold and did not see the 1885—Process of conversion suspended.
1887—Free banking law enacted, based on principle of guaranteed circulaIn the absence of Manuel C. Tellez, the Mexican Ambassador, the Mexition.
can Embassy would not discuss the situation that has arisen as a result of 1889—Gold premium rises to 100%.
threats of local authorities at Laredo to arrest former President CaIles 1890—Revolution breaks out—Premium on gold rises to
when he passed through there earlier this week en route to Mexico from a
Office (Caja de Conversion) opened—Note issue Increases.
trip abroad.
1891—Public debt reaches 476,000,000 Pesos.
It was believed, however, that the ban imposed by Mexico would not be 1895—Note Issue reaches 296,000,000 Pesos.
maintained for any long period. However,there will be some inconvenienc
e 1899—New conversion law passed—Premium on gold declines to 125—
In normal transactions at that point because of the necessity of clearing
Provision made for exchange of outstanding notes into gold at
goods and routing tourists through other consulates.
rate of 44 centavos for one gold peso.
1914—Gold payments suspended by Conversion Office.
1927—Convertibility of notes re-established.
Mexican Railroad Strike Ends After 13 Days-3,500 1929—Conversion Office ordered closed.
Trouble Due to Poor Crops.
Employees Return to Work on British Line From
Argentina's difficulties are the result of poor crops this year, resulting in
Capital to Vera Cruz—Settled by Arbitration.
a less favorable balance of trade, whereas in the two years prior to 1929
Under date of Dec. 19 a cablegram (copyright) from exceptionally favorable balance of trade was paid for by large imports an
Mexico City to the New York "Herald Tribune" stated:
Conditions in the money market here have had their Influence upon
Service on the British-owned Mexican° By., which operates between this Argentine
exchange as upon all other exchanges The unusually high money
city and the port of Vera Cruz, was resumed this morning when the com- rates
which obtained here until the time of the stock market reaction pulled
pany's 3.500 employees returned to work afire having brought traffic to a to this
market the major part of Argentina's gold exports. With the exstandstill by a strike since Dec. 6.
ception of February, every month of this year witnessed imports of gold
Settlement was brought about by President Emilio Portes Gil, acting as from Argentina.
The largest of these imports came in July, when $19,the arbitrator agreed upon by the company and the employees. This is 780,000
was brought In. December, thus far, has seen imports of only
expected to have far-reaching effect on the relations between capital and $1.871,000 from
Argentina, but the total for the year to date Is $72,118,000.
labor in this country.
While this sum is large, it is little more than the United States sent to
The award strips Colonel J. D. W. Holmes, general manager of the line, Argentina
in 1928. During the first six months of that year $69,400,000
and other high officials of the company, of their unimpeded management of gold was exported
to Argentina. No exports were made after June, howthe company, says "El Universal Grafico" in reporting the general state of ever, and in
October and November the movement was reversed with imgratification felt by the labor leaders at the President's award, and con- ports of $2,000,000
and $2.500,000 for those two months respectively.
tinues: "The Mexicano Railways are now being run practically without The net loss
of gold to Argentina by the United States during 1928 was
therefore $64,900,000.
Payment of the men for part of the time they were on strike was one of the
The only gold shipments between the two countries in 1927 were exports
Principal points of the Portes Gil award, wich was in favor of the strikers, from the United States
to Argentina of $22,140,000 in September,$8,400,000
despite the widely held view that they should have returned to work im- in October and
$30,850,000 in December or a total of $61,390,000. Over
mediately upon the announcement that the President had consented to act the 3
-year period Argentina has experienced a net gain of $84,172,000 as a
as arbitrator. Other important points favoring the men were approval of result of gold movements
between that nation and the United States.
deductions by the company from the pay sheets for union dues: adoption of
the seniority system without previous examination in fillinevacancies,thus
abolishing the selective system hitherto In force: establishment of additional Central Bank Held Argentine's Need—Chilean Finanpositions hitherto considered unnecessary by the company, and signing of a
cial Circles Say American Suggestion Would Have
a new collective contract between the company and the men within fortyStabilized Currency—Back Kemmerer Views.
five days, this to contain clauses giving the men a voice in the administration of the company.
From the New York "Times" of Dec. 23 we take the folAcceptance of this contract by the company will involve recognition of lowing cablegram
from Santiago, Chile, Dec. 21:
the union, a point which has been well to the fore in all recent labor disIf Argentina had a central bank along the lines of the existing institution
putes in Mexico. The legality of the strike, which had been challenged by
in Chile, patterned on the American Commission's suggestions in 1925,
the company, is sustained by the award.
is more than probable that the recent trouble arising there
from the instability of the currency would not have occurred,in the opinion of Santiago
banking circles.
Argentina's Action on Gold Assailed—Closing of ConThe suspension of gold exchange operations, with a consequent drop
version Office Held Unjustified by Present Econ- Wall Street quotations, as reported to Argentine business and financial
quarters here, immediately drew attention to the now situation created
omic Conditions—Buenos Aires Offering of $18,- the other side
of the Andes, especially as Chilean bonds in Now York
000,000 in New York Deferred—Three Years' Net dropped slightly in sympathy with the Argentine bonds.
It is generally admitted, however, that there is no reason to expect any
Influx From United States $54,172,000.
reaction in Chilean affairs, in view of the fact that the trade balance beCommenting on the effect of the closing on Dec. 16 of the tween the two countries favors Argentina with the volume of exportations
Caja de Conversion or exchange bank of Argentina, the New to Chile principally in cattle, against importations from Chile of timber,
York "Times" had the following to say in its issue of Dec.22: fruits and cement. recognized
It is unanimously
that the existence of the central bank here
The heavy drain to which the gold stocks of Argentina have been sub- has proved once again the truth of statements
by Edwin Kemmerer and
jected this year culminated last week in drastic action on the part of the other American financiers In 1925, when they said
It was essential to create
authorities of that country. President Irigoyen, by ordering the closing of a centralizing organization on the lines of the Federal
Reserve System of the
the Caja de Conversion, or gold conversion office, virtually removed United States in order to cope
with the ever increasing movement of curArgentina from the list of countries adhering to the gold basis.
rency, bills and drafts.

DEC. 28 1929.]


An official statement by President Ibanez, which also helped establish
Chile's position as regards the stability of the gold standard, is being
welcomed now as a safeguard against possible changes in the monetary
policy of the country, although the accepted principle that Chile will not
necessarily follow the other nation's financial programs has not been
As the position now is one of thorough confidence In the gold basis, which
covers 400.000,000 pesos in paper currency,it can safely be said no changes
are contemplated of any importance.

The decree of President Irigoyen of Argentina closing the
Caja de Conversion, or exchange bank, this virtually taking
Argentine off the gold basis,was noted in our issue of Dec.21,
page 3893.
Argentine Peso Gains—Slowly Recovering After
Closing of the Conversion Bank.
Under date of Dec. 21 Associated Press advices from
Buenos Aires, Argentina, were published as follows in the
New York "Times":
The Argentine peso is slowly recovering the ground it lost early this week
when the Government decreed the closing of the Conversion Bank, but the
latter action, coupled with President Irigoyen's recent announcement that
the Government has not yet prepared the 1930 budget, is resulting in a
generally unstable financial condition. The peso closed at noon at a slight
gain over yesterday.
Financial circles attribute to the Government's recent moves a decision to
postpone the floating of the province of Buenos Aires $8,000.000loan, which
had been practically concluded last week with New York bankers.
The closing of the Conversion Bank is said by exporters to have been a
serious setback for them, and two of the largest firms are reported to be
Preparing to reduce the volume of orders considerably. Newspapers and
leading economists meanwhile have been criticizing the Government's policy
In the financial field,declaring it is damaging Argentina's credit at home and

The closing of the Conversion Bank was referred to in our
issue of Dec.21, page 3893.
Julius H. Barnes of United States Chamber of Commerce Before Lobby Investigating Committee
Holds Federal Farm Board Unfair in Making of
Rates on Loans.
Opposition to the Federal Farm Board policy in advancing
to wheat co-operatives funds equivalent to the current value
of the product was expressed on Dec. 17 before the Senate
Lobby Committee by Julius H. Barnes, Chairrman of the
Board of the United States Chamber of Commerce. Mr.
Barnes contended that the price advanced to wheat growers
by the Board "will be found to stimulate such an acreage
as to produce another burdensome surplus." Mr. Barnes
declared that it was unfair for the Board to loan money to
co-operatives at 3%%, while independent dealers were
called upon to pay 6%. His testimony, as given in a Washington account, Dec. 17, to the New York "Journal of Commerce," follows:
Testifying before the Senate Lobby Committee in response to a summons
following reports that he had protested the Farm Board's policies to
President Hoover, Mr. Barnes objected to the plan of loaning money to
wheat co-operatives at the current grain price with the understanding that
the producers were to share in any subsequent increase. Mr. Barnes testified
that he had never discussed the Board with the President and that he
had only one conference with Alexander H. Legge, its Chairman.
This conference, held in Washington on Dec. 4 between himself, grain
trade members and Mr. Legge, was arranged because of "growing bitterness" among grain men, Mr. Barnes said. It resulted in the Board announcdng a policy under which loans would be extended to local elevators at
the same rates as to farm co-operative members.
Opposes Loan Discrimination.
After sharp questioning by committee members about his friendship with
Mr. Hoover and the part he is playing in the Administration's prosperity
campaign, Mr. Barnes declared that he was sorry that Farm Board policies
had to be discussed "because business was willing to give the Board a
chance to get started."
The Chamber of Commerce official said he believed the Farm Board
would be successful, but he added that he believed it should change its
policy to eliminate "discrimination." He said that loaning the co-opera%
tives money at 31 while independent dealers had to pay 6% was "unfair
and unsound." He added that there is a difference between natural causes
used to stimulate production and the use of "taxpayers' money to
stimulate over-production."
Asked by a committee member whether he objected to loaning money
to steamship companies at 31%, Barnes said he did not object lilt were
loaned on those terms to all shipping concerns. He said he would object to
money were loaned at such a rate only to a co-operative shipping
it if
Senator Nye (Rep.) of North Dakota, who recently said on the floor
of the Senate that independent grain dealers were "fighting the Farm
Board," sat with the Lobby Committee to-day and took part in the examination of Mr. Barnes.
Eager to hear Chairman Lggge's version of his parley with Mr. Barnes
and other grain trade representatives, members of the Lobby Committee
to-night Considered summoning the Federal Farm Board Chairman and
decided against it, hoping he would offer to appear before them of his
own accord.
Nothing less than a statement from Mr. Legge, it appeared, could clarify
the muddle which Mr. Barnes' testimony stirred regarding the plans and
practices of the Board.
Denies Modifying Policy.


Senator Blaine said the Board has retreated. Senator Walsh of Montana
was unwilling to draw any conclusions from Barnes's testimony without
first hearing from Mr. Legge. The committee as a whole does not want to
call the Farm Board Chairman because he is not accused of lobbying for
anybody, and the Senators wish no aspersion of lobbying to go out.
Prompt denials were issued from the Farm Board that it has changed or
will modify any policy one iota under pressure of the grain trade. The
Board's Chairman was silent. He will make no comment of any kind until
he can study the transcript of to-day's testimony, it was said.
Charges and countercharges involving both the Farm Board and the grain
trade were circulated following the Lobby Committee's hearing. One story
was that Barnes' statements were a clever ruse of the grain trade, designed
to get farmers throughout the country involved in a controversy over
interest charges on Farm Board loans and make them suspicious of the
Board's integrity, thus undermining the whole co-operative marketing
Analyzing the testimony, Senator Caraway, Chairman of the Committee,
declared it disclosed existence of widespread and deliberate efforts by
private commission men to influence the Farm Board. He said two agreements were entered into by Legge and Barnes. They were:
First, that interest charged local co-operative associations should be at
the commercial rate.
Second, that no major policy would be decided by the Board until grain
merchants were given a hearing on any objections or changes they might
See Board Retreating.
The Farm Board is known, however, to have an explanation of both these
propositions, interpreted by Senators as evidence that the Board is beating
a retreat before grain trade onslaughts.
As to the first, it is represented as having been the constant intention of
the Board to lend to local co-operatives only at commercial rates. Lower
charges now being made are temporary emergency rates. The ultimate
plan, it is said, always has been to lend only to the central marketing
agency, such as the Farmers' National Grain Corporation, at 31%, at
the lowest prevailing charge for Government securities. The agency then
commercial rates, using the difference to
would put out money to locals at
build up reserve funds, pay business costs and for ultimate division among
local members, owners of the agency, as profits.
At the Farm Board it was asserted that, although no formal statement
has been made, this plan has been openly discussed and is widely understood among farm co-operative leaders. It was pointed out that in his
testimony to-day Mr. Barnes in at least one instance admitted the Board's
policy in this regard was fixed before and not during or after the Dec. 4
conference with grain commission men.
As to the charge that Legge agreed to consult the grain trade before
important changes in policy were decided, he announced a few days ago
his willingness to give their representatives a hearing, the same as any
other private citizens, at any time.

Chairman Legge of Federal Farm Board Answers
Criticisms of Board's Policies Made By Julius H.
Barnes and President Butterworth of U. S. Chambr
of Commerce.
The Federal Farm Board made public on Dec. 19 a statement by Chairman Legge and letters written by Mr. Legge
to Senator Caraway and William Butterworth, President
of the United States Chamber of Commerce, all relating to
questions raised before the Lobby Investigation Sub-committee of the Senate Judiciary Committee. The statement
by Mr. Legge follows:
"I have now had an opportunity to read Mr. Barnes's testimony before
Senator Caraway's committee. No one can object to any responsible
citizen giving public expression to his opinions, and the Board welcomes
every variety of opinion upon its work.
"There are two points, however, upon which Mr. Barnes's statements
have apparently been misconstrued. The Board did not alter its policies
as a result of the hearing given to the grain trade, nor has the Board
agreed to submit its policies to the grain trade before action, and I do
not think Mr. Barnes intended to convey this impression. The Board has
given public assurance on several occasions, and does not hesitate to
reiterate it now, that it welcomes any responsible person's views at any
time, but this of course cannot be interpreted as obligating the Board to
submit its proposals to any particular group before action."

Commenting on Chairman's Legge's letters and the policies
of the Board as indicated by the Chairman, the Washington
correspondent of the New York "Journal of Commerce" had
the following to say, Dec. 19:

Chairman Alexander H. Legge of the Federal Farm Board to-day
responded to the pounding by the private grain trade, advices from Julius N.
Barnes, Chairman of the Board of the United States Chamber of Commerce,
and admonitions from that organization to go slow with the agricultural
marketing program.
The substance of Chairman Legge's reply principally to Mr. Barnes's
testimony before the Senate lobby coen:cnittee on Tuesday, follows:
First, the Farm Board plans to speed up its present machinery to such an
extent that between 25 and 30% of next year's wheat crop can be marketed
through co-operative agencies.
Second, the board proposes that ultimately one-half the grain crop shall
be handled through farmer-owned and farmer controlled associations.
financed in uart at least by Government funds. As rapidly as possible
other commodit es will be marketed in like manner.
To Push Export Marketing.
Third, the board proposes to help co-operatives to invade the export
wheat market,a field now occupied in part by Mr. Barnes.
If not aimed directly at the grain trade, Mr. Barnes and the National
Chamber of Commerce, this at least is the Farm Board's answer to charges
that it is in "retreat." Instead of yielding to pressure, the Board proposes to push steadily ahead with its plans.
Mr. Legge emphasized the force of his announcements of new and more
expansive co-operative marketing plans with written statements to Senator
T. H. Caraway of Arkansas, Chairman of the Lobby Committee, and William
Butterworth, President of the United States Chamber of Commerce.
In one communication, Mr. Legge denied that the Farm Board has
changed its policies as the result of pressure from the grain trade. In the
informed Mr. Butterworth that the National Chamber has missed
No two among the Senators present agreed precisely on the import of the other, he
the point of the Agricultural Marketing Act, and that fundamental change
story told by Barnes about the grain conference.



in the marketing system, not merely a scheme to save a fraction of a cent
per bushel on wheat, is in the making. "Julius Barnes never did get the
straight of the story about interest charges to local co-operatives," the
Farm Board Chairman told newspapermen. "He was called out of the room
while it was being discussed. The version he gave the Senate Committee
was twisted."
Not Obligated to Ask Advice.
In his testimony before the Lobby Committee, the Chamber of Commerce
Chairman also gave an erroneous impression, evidently unintentional, Mr.
Legge said, that the Farm Board had agreed to consult grain trade representatives before formulating its future policies.
The Farm Board's policy on interest rates to co-operatives was fully
outlined in the Chairman's letter to Senator Caraway. There will be some
spread between the Government rate of 31 or thereabouts to be charged
to central or national market agency and the rate for the local co-operatives
and ,farmer member. The purpose of this spread, however, is to cover
financing costs and build up a reserve fund, not to equalize interest rates
with those charged by bankers.
"No assurance has been given any one," Mr. Legge asserted, "that the
rates to the farmer will be maintained at the commercial level. No
injustice could be done, however, if more should be charged by the central
organization in some instances than necessary to cover costs, because the
farmers themselves will own the central and will share in any profits from
its operations, lending or otherwise." The financing charge of intermediate credit banks is 1%, he added, and that probably would be ample
in many cases.
The only assurance as to loans he had given the grain trade representatives who conferred with him Dec. 4 was that as a matter of fact there is
less difference at present between the interest cost on loans to co-operatives
and on private loans than has been supposed and represented," Mr. Legge

[vol.. 129.

to the reasonable consumptive demand or requirements. In other words,
as the Agricultural Marketing Act puts it, "control surplus at its source,"
and, after all, this is the fundamental difference between agriculture and
other industries. It is a condition which we can only hope to correct by
collective action on the part of the agricultural producers. If, in carrying
out such a program, certain reasonable adjustments on the part of existing
agencies to adapt themselves to new Conditions are found necessary, this
should be regarded as incidental to a changing business condition rather
than attacking anybody's business.
"A few years ago the introduction of the automobile affected rather
seriously one of the lines which you were -producing at the time. If my
memory serves me correctly, ylou did not appeal for help, but rather
proceeded to adjust your business to the new condition, in which effort you
seem to have been quite successful. While the changes in the agricultural
marketing program may necessitate some adjustments on the part of some
of those now dealing in agricultural commodities, any improvement in the
return to the farmer cannot prove other than helpful to the other industries
of the nation.
"Very truly yours,
"Chairman, Federal Farm Board."

A previous criticism by Mr. Leege of the views expressed
by the United States Chamber of Commerce was contained
In the following from Washington, Dec. 16, to the "Journal
of Commerce":

The United States Chamber of Commerce wants the Federal Farm Board
"to hang its clothes on a hickory limb but not go near the water." This
was the comment to-night of Alexander Legge, Chairman of the Farm
Board, on the Chamber's recent statement on co-operative marketing and
the functions of the Board.
The pronouncement by the spokesman for the Nation's business shows
The following is Mr. Legge's letter to Senator Caraway:
that the Chamber has failed entirely to grasp the broad picture of the
"Dec. 19 1929.
Board's program, Mr. Legge asserted.
"Hon. T. H. Caraway,
Referring to the Chamber's argument that, to be sound, co-operative
"Chairman, Lobby Investigation Sub-committee,
marketing must be a slow growth, Legge said the process apparently would
"Senate Judiciary Committee,
demand the services of a boy as the Farm Board's Chairman, who would
"United States Senate.
be able to grow up with the co-operative system.
"Dear Senator:
The Farm Board could not operate in the manner laid down by the
"Inasmuch as the question of interest on advances made by this Board
out of the revolving fund provided by the Agricultural Marketing Act, has Chamber of Commerce statement, Chairman Legge declared. The Farm
come up for discussion before your committee, perhaps the following state- Board has no choice under the Marketing Act, but to function through
co-operatives. If this is discriminating against the grain trade or other
ment may clarify some of the points involved.
"As we understand the Agricultural Marketing Act, the main purpose middlemen, then it is just too bad, he said.
The Chamber of Commerce had contended that loans to co-operatives
is to build up farmer-owned and farmer-controlled co-operative organizations
to the end that the farmer may exert a greater influence in marketing his should ,be made only after investigation to determine whether the farmers'
products. A revolving fund is provided by which loans may be made to organization or existing private agencies were most economical.
"All the loans we have been making," the Chairman continued, "have
co-operatives to enable the farmer to market his product in an orderly
been commodity loans. Our security is the grain itself. It does not appear
"Upon representations from reliable co-operatives the Board from the necessary for us to inquire further than to determine that we have proper
beginning recognized that in order to cover their expenses and possible security, and that the organization applying for credit is a bona fide
losses in handling such loans, it would be necessary for them to add a small co-bperative qualified to seceive credit under the terms of the law."
Mr. Legge added that the method proposed by tire Chamber would delay
additional charge to the farmer borrower. This addition may vary somewhat as to particular commodities, but any saving made becomes the the Board greatly in aiding co-operatives with their marketing programs.
property of the farmers through their co-operatives. In reaching this
The views of the Chamber of Commerce were indicated
conclusion in conference with co-operatives, the Board acted solely for
in an item published in our issue of Dec. 14. page 3722.
the benefit of the farmer under the provisions of the Act.
Mr. Barnes's statements before the Lobby Investigating
"Inasmuch as there are 12,500 co-operatives, often competitive, one with
another, the Board concluded that it would not always be conducive to Committee are given
elsewhere in our issue to-day.
an efficient administration of the Art to deal directly with the separate
co-operatives representing certain agricultural commodities. For the purpose of strengthening the co-operative movement in such commodities, it
has therefore sought to create national associations of such commodity co- Senator Caraway of Senate Lobby Investigating Comoperatives, through which its loans might be centralized, thus avoiding
mittee Criticises Secret Conferences of Federal•
competition, duplication and unnecessary expense, to the end that the
Farm Board—Chairman Legge's Explanation.
producer might secure the funds provided in the Art with the utmost
Secret conferences of the Federal Farm Board may cause
dispatch and at the lowest rate.
"Very sincerely yours,
farmers' co-operative associations to lose confidence in the
Board, Senator Caraway (Dem.), of Arkansas, Chairman
"Chairman, Federal Farm Board."

Mr. Legge's letter to Mr. Butterworth reads as follows:
"Dec. 17 1929.
"Hon. William Butterworth,
''President, Chamber of Commerce of the United States,
"Washington, D. C.
"Dear Mr. Butterworth:
"Replying to your letter of Dec. 9, I would say that I feel that your
committee in the making of the report which you enclosed has rather
missed what we believe to be the principal object of the Agricultural
Marketing Act. This report is largely a discussion of a comparison of the
costs of operation as between private traders and co-operative organizations.
This idea reflects the thought of the farmers' co-operatives of 25 or 30
years ago when they thought to improve their condition by joining together
and buying or building a local elevator at some point in the country for
handling their grain. Obviously, any advantage in that would be limited
to any savings they could make as compared to the private operation of a
similar elevator. Such organizations have not, and could not be expected
to have, had any appreciable effect on the marketing of their product as a
"Perhaps on an average, a comparison of the cost of these co-operatively
managed local institutions with that of private concerns doing the same
service would be in favor of the privately owned operations, but yet this
could not have any bearing on the broader problem as to whether the marketing system as a whole is susceptible to change which would be advantageous
to the producers.
"Unless we can work out a different system of marketing which goes
far beyond the question of saving a fraction of a cent per bushel on grain,
a few cents per bale on cotton, or a few cents per head on livestock, as
compared to the present system, there would be little hope of progress in
the line of putting agriculture on an equality with other industries, for the
simple reason that if all of these operating costs were added to the price
the farmer gets for his profit it would make but little difference in the
return to the grower. On the other hand, if gradual marketing of what
the farmer has to sell through a longer period instead of within a few
weeks as is now the prevailing practice, can be brought about, it may be
passible to make a material improvement in the returns to the producer.
I think you will agree with me that such a change can only be brought
about by the producer himself, as the private trader could not hope to have
any measureable influence on this phase of the marketing process. To
follow it to its logical conclusion this would result in adjusting production

of the Senate Judiciary sub-committee investigating lobbying, wrote to Alexander Legge, Chairman of the Farm
Board, according to a letter made public Dec. 21 says the
"United States Daily" of Dec. 23, which in giving Senator
Caraway's letter went on to state:

Chairman Legge later referred to a statement of policy made Dec. 19.
When it was stated that the Farm Board will act for the best interests of
American farmers without submitting its policies to or being biased by
any other body, and added:
"Every action taken by the Board affecting co-operatives has been after
full consultation with representatives of farmers'co-operative associations."
Mr. Legge also said the subject of his conferences with Julius Barnes,
Chairman of the board of the United States Chamber of Commerce. and
other grain men related to their inquiries on the policy the Board intended
to follow in lending money for the building of grain-handling facilities
duplicating those now in existence, and that he referred them to a section
of the agricultural marketing act providing that no loan should be made for
such purposes if existing facilities would fill the need equitably.
Necessary to Testify.
Senator Caraway,in his letter, also wrote Mr. Legge that,for statements
made by Mr. Legge in his letter to Senator Caraway, as Chairman of the
Sub-committee, to be made a part of the Sub-committee record, it will be
necessary for Mr. Legge to appear personally and testify before the Subcommittee. Senator Caraway said such an opportunity will be offered Mr.
Senator Caraway's letter is in reply too letter of Dec. 19 from Mr. Legge,
stating certain policies of the Board. Mr. Legge's letter was written following the appearance of Julius H. Barnes, Chairman of the Board of the
United States Chamber of Commerce and a wheat exporter, before the
Sub-committee in regard to influence brougit bear on the Farm Board
by grain commission men.
Mr. Barnes stated before the Sub-committee that it was unfair on the
part of the Board to lend money at reduced rates to co-operatives and not
to independent dealers. He said this subject had been discussed at the
conference with Mr. Legge and that Mr. Legge had agreed that the special
rates were unfair.
Agreements entered into at this conference form "a surrender of the
Board to these grain people and a disclaimer of any intention on the part
of the Farm Board of a desire to be helpful to co-operative associations,"
Sanator Caraway's letter to Mr. Legge said. It described the agreements

DEC. 28 1929.]


further as "a determination to disregard both the spirit and intent of
law under which the Board was appointed."
In his letter to the Senator Mr. Legge had maintained that "the Board
from the beginning recognized that in order to cover their expenses
Possible losses in handling such loans, it would be necessary for them
borrower." He said he had
add a small additional charge to the farm
written Senator Caraway "inasmuch as the question of interest on advances
made by this Board out of the revolving fund provided by the agricultural
marketing act has come up for discussion before your Committee."
Mr. Caraway's Letter,
Senator Caraway's letter to Mr. Legge dated Dec. 21 1929, follows
full text:
"Dear Sir: Your letter of yesterday addressed to the Chairman of the
Lobby Investigating Committee, but given to the newspapers prior to
delivery to me as such Chairman, and in which you seek to justify
conference with grain men held in the office of Mr. Julius Barnes in
United States Chamber of Commerce Building here in Washington,
at which time you made commitments of the Federal Farm Board to
the demands of Mr. Barnes and other grain dealers, received.
"The policy of the Committee investigating lobbying is not to incorporate
letters or explanations in the records of said hearings unless they are offered
in an open hearing of that Committee. If you desire, therefore, to incorporate any statement Into that record you will be given an opportunity
at any time to do so in person.
"I cannot, however, refrain from replying to that part of your letter In
which you mentioned that the agreements that you announced at this
private meeting with Mr. Barnes and other grain speculators in the office
of Mr. Barnes were in accordance with a determination of the Federal Farm
Board arrived at at another time but not previously published.


Senator Nye Alleges Grain Trade Attempt to Hold Down
World Wheat Price to Cut Value Below Lending Basis
of Federal Farm Board—Chairman Legge Emphasizes
Need For Stabilization Body.
Calling attention to recent operations allegedly credited
to American grain interests on the Liverpool wheat
Senator Gerald P. Nye (Rep.) of North Dakota on Dec.
the grain trade with attempting to beat down world
prices, keep the exportable surplus in this country,
domestic prices from attaining the loan value of wheat
Farm Board's co-operative marketing
wreck the Federal
the New
program at the source. The foregoing is from
"Journal of Commerce" of Dec. 27, whose Washington
correspondent on Dec. 26 added in part:
trade and the
"The arena of battle between the private grain
table discussions
Farm Board has now been transferred from round
Nye in an
to the wheat markets of the world," said Senator
Board has
authorized statement. He pointed out that the Farm corporations
up its sleeve surplus control operations by stabilization
to fight any such trade price war.
Simultaneously, Alexander Legge, chairman of the Farm
if the
asserted that stabilization corporations would be established
step should prove necessary.

Refers to Agreements.
"These agreements seem to have been two, as you announce them to Mr.
Barnes and the grain dealers.
"First—In accordance with their demands you say the Farm Board. although expressly required so to do by law, will refuse to lend money to the
co-operative associations that may seek to relieve the distress of their
members by buying their grain unless they shall pay the commercial rate
of interest.
"Secondly—That the Farm Board will not in future announce any
policy affecting the prico of grain until and after a consultation with those
engaged in the grain business. Whether this conference is to be public or
again in private your letter does not disclose.
"Your announcements, if they be concurred in by the Board, is a surrender of the Board to these grain people and a disclaimer of any intention
on the part of the Farm Board of a desire to be helpful to co-operative
associations and, as I said before, a determination to disregard both the
spirit and intent of the law under which the Board was appointed.
"Again, would it not be both wise and but simple justice to the farmers,
if the Board had these two questions under consideration, to have had an
open meeting in which they could have been heard to protest Instead of
you, as the Chairman of the Board, going into a private, if not a secret.
meeting with Mr. Barnes, and there announcing these important decisions
of the Board? Will not this method of announcing Board determinations
lead every farmer to suspect that if the policy of the Board Is to be determined in secret meetings with the speculative interests that the Board is
now functioning in the interest of the grain people and In apposition to
Hopes for Repudiation.
"I truly hope tile Board will repudiate your agreements and the place and
time in which you saw fit to announce them. It must do so, If it wishes to
retain the confidence of not only the farmers, but all those who earnestly
sought by legislation some means of relieving the distressed condition of
Treasury Furnishes Rates.
Every loan made, Mr. Legge said, in his statement Dec. 21, has been at
the rate provided in the act, the exact rate for each day being furnished by
Treasury Department officials. Any additional interest charge is made,
not by the Board, but by the co-operatives themselves, and surpluses belong to the farmer borrowers.
Mr. Legge's statement, as made public by the Farm Board, fellows In
full text:
In response to a request by newspaper correspondents for comment on a
letter which Senator Caraway has written to Chairman Legge, of the
Federal Farm Board, but which has not been received as yet. Mr. Legge

made the following statement:
"The Board's policy was set forth in press release No. 95 (this appeared
elsewhere in the Chronicle to-day) issued Thursday afternoon. It might
be added that every action taken by the Board affecting co-operatives has
been after full consultation with representatives of farmers' co-operative
"Every loan made has been at the rate provided in the act, the exact rate
for each day being furnished by officials of the Treasury Department. Any
additional interest charge is made, not by the Board, but by the co-operatives themselves to their own members and should it exceed their actual
cost of operation, the surplus belongs to the farmer borrowers through their
co-operative association.

Cite Efforts to Maintain Prices.

saying that
Senator Nye quoted from a recent market review
selling orders of
"breaks at the finish in Liverpool were ascribed to
of Frank Beitler,
this side of the Atlantic." He referred to comments
charging the
agricultural editor of the Findlay, Ohio, Republican,
prices, and emgrain trade with manipulations to depress world
phasized the accusations with charges of his
wheat markets
The Farm Board has gone into all the important levels at least
in this country in an effort to maintain prices
board, it was emequal to the lending scale established by the
and Mr. Nye.
phasized in statements today by Chairman Legge
and $1.18 at
The Board is lending $1.25 a bushel at Minneapolis
Corporation, the naChicago. Until the Farmers' National Grain
Board, began
tional co-operative sales agency established by the
purchasing cash wheat at these prices at the terminals, the
recently had sagged below the loan values.
required to repay to
It is pointed out that local co-operatives are
Borrowing $1.25
the Farm Board the sums they have borrowed.
turn over not
a bushel on wheat at Minneopolis, they would have to
sum necessary
only the wheat itself as security, but any additional
level. In that
to cover the loss, if prices did not come up to that
established, there is
event and unless a stabilization corporation is
funds so long
no way losses legally can be absorbed by Government
as the indebted co-operatives are financially responsible. editor arises
and the Ohio
The anxiety shown by Senator Nye
have the support
from the contention that the Farm Board must
to retain if the grain
of the co-operatives, which would be difficult
would realize less than
trade was able to beat down prices so they
the loan value on wheat.
Grain Agency Operating.
necessity to maintain
That the Farm Board is fully aware of the
today by Chairman
wheat prices at the lending levels was indicated
National Grain CorpoLegge. In order to accomplish it the Farmers
markets. Mr. Legge
ration is now operating on all important cash
is not speculating in
today made it plain that the corporation
the farmers. Buying from
wheat, purchasing only cash grain from
held as security for
the local co-operatives grain that has been
any liability from
$1.25 loans would be one way of transferring
them to the Farmers' National Grain Corporation.
studied the problem
It is indicated here that the Farm Board has
and legal to
thoroughly and is ready to do anything necessary
maintain wheat prices at the loan levels.
and other foreign markets
Grain trade manipulations in Liverpool
/pointed out today,
might complicate its problem, Senator Nye
used to offset buying on the
as "selling short" abroad might be
American markets.
Farm Board is
Chairman Legge already has announced that the
Establishing a grain stabpreparing to invade the export market.
National Grain
ilization corporation, or constituting the Farmers'
the board to
Corporation for that function, not only would permit
export surplus operations but also would establish

engage in
absorbed from Government
legal method by which losses could be
themselves, if any vien
funds, thus relieving the co-operatives

Chosen Manager of Farmers' National
Grain Corporation.
as ManWilliam Kellogg, of Minneapolis, has been chosen
Demands Not Recalled.
Farmers' National Grain Corporation, the reager of the
"I cannot understaml the reference to loans on purchased grain. No such
Grain Co-operative
cently formed central agency of the
loans have been requested and I do not see how such loans could be made,
which was organized under the direction
for when the farmer sells his grain he has no further interest in it.
"I do not recall that any demands were made by either Mr. Barnes or the Farm Board with a view to marketing eventually 60%
the grain men They were concerned about reports to the effect that the
produced in the United States. Associated
Board was to finance co-operatives in building facilities duplicating those of the grain
this added:
now in existence and were referred to sub-paragraph (3) of paragraph (c) Press dispatches from Chicago, Dec. 23 stating
been previously
section 7, of the agricultural marketing act, and were advised that existing
W. C. Lonsdale, Kansas City grain dealer, had
facilities would be carefully considered by the Board before any Government offered the post as manager of the Grain Corporation but he remoney was spent for new construction. They were told that the Board
would be glad to have any information they could give on this or any other
subject from time to time with the understanding that in doing so there
was no promise, expressed or Implied, as to what action the Board might
take on any proposition submitted."
The paragraph of the law referred to follows:
"(3) No loan for the construction, purchase, or lease of such facilities
shall be made unless the Board finds that there are not available suitable
existing facilities that will furnish their services to the co-operative association at reasonable rates; and in addition to the preceding limitation, no
loan for the construction of facilities shall be made unless the Board finds
that suitable existing facilities are not available for purchase or lease at a
reasonable price or rent.'

William Kellogg

with the Board's
fused it, saying that he was out of sympathy
grain marketing policies.
Mr. Kellogg's
Announcing that the corporation had notified him of
was sympathetic
selection, Chairman Legge today said the Board
taken in buying wheat
toward the action the corporation already had
Legge said that more storage
on the Chicago Grain Exchange. Mr.
had been thought possible a
space was available at present than
month ago.
Some of the grain now being purchased, he said, probably would
go into the export trade which the National Grain Corporation
expects will increase soon due to the prospects of a smaller world
wheat crop.



[Vol,. 129.

Co-operative marketing of cotton, to which the Board is giving
at- which proposed to place agriculture in position to market its
tention, has increased rapidly within the past season,
own prodin the view of ucts and control enough of each major commodity
to have a say in its
Commissioner Williams of the Board. He said today that
the cotton marketing and market price. Chairman Legge
phrased it nicely when
co-operative associations had marketed 30% more this year
than last he said the Chamber of Commerce 'misunderstood
the issue.'
Year. Before the entire crop has reached the market,
he expects
"In the second place, if co-operative marketing is to be confined
the increase to be at least 50% over that of last year.
Cotton farmers in the South are joining co-operative marketing local co-operatives depending upon local handling of grain, for instance,
to solve the grain marketing program, then the farmers may as
associations very rapidly, Mr. Williams said. Early in January
he, forget co-operative marketing as a solution of their marketing
with other members of the Board, expects to meet with
a com"It is the 'boys who trade in pink slips of paper,' rather than actual
mittee from the cotton co-operative associations to
frame the handlers of wheat, who may be put out of business
charter and by-laws of a national sales agency for cotton
by the co-operative
organized grain marketing program sponsored and financed
along lines similar to those followed in the organizati
by the Board," Chairon of the man Legge says.
National Grain Corporation.
Says Consumers Will Not Suffer.
An item regarding the Farmers' National
Grain Corpora"If he is correct in that assumption, neither the farmer who produces
tion appeared in our issue of Nov. 9, page
grain nor those who eat what he produces are in line to suffer. Both
can get along just as well without the grain gambling and 'trading in
pink slips of paper,' in my judgment.
"The Federal Farm Board still is on trial, so far as agriculture is conChairman Legge of Federal Farm Board Denies Report
cerned. The agricultural West will hold President Hoover and
That Board Gave Out Wheat Statement.
Federal Farm Board responsible for its actions. The Board is working
out a program which has the approval of the President. It is my
Under date of Dec. 16 Associated Press advices from
judgment that the great mass of the farmers in the country, and particularl
Washington stated:
in the Middle West, are in sympathy with that program. They
On learning that wheat prices on the Chicago Exchange had risen
after it will work. So far the actions and announced policies of the Board, on
publication of a so-called "official statement" from the Farm Board
that the whole, lead them to believe that it is likely to work, if any such
wheat prices "shall advance," Chairman Legge of the Board said to-day plan can work.
that he was glad prices had risen, but he disowned for the Board
"The agricultural Middle West realizes that the biggest work
of its
authorship of any such statement.
kind ever given to a group of men in this country has been
handed to
He said that any such advance in wheat prices was pleasing, but that the Federal Farm
Board. There also is a general feeling that President
no official statement about wheat had been made by the Board.
Hoover picked a good Board and selected a good Chairman
in Mr.
Commissioner McKelvie, under whose direction the Farm Board policy Legge.
toward wheat is being carried out, in response to an inquiry said
"Farmers do not expect that the Federal Farm Board
can, through
In his opinion if the price of wheat dropped below the loan level set
by the some magic no one else possesses, find an overnight solution
for the
Board, no wheat would come on the market.
farm problem. As a rule, they are rather pleased that the
If grain dealers then wished to obtain wheat they would have to
Board has
pay not rushed headlong into attempts at quick relief. But neither
a price at least equal to that of the loan level set by the Board.
do the
farmers expect the Board to allow itself to be dictated to by
Mr. McKelvie later started for Chicago.
the grain
The Farm Board, so far as known, has no intention of changing the trade, nor the live stock exchanges, nor even by the Chamber of Commerce of the United States,
policy toward wheat announced on Oct. 16, which set the loan levels
the differing marketing centres. Ample funds are available for the in
Expect Orderly Marketing.
of grain co-operatives in marketing and storing wheat for grower members.
"Farmers appreciate statements from the Chamber of
When the policy was outlined, Chairman Legge said that 3100,000,
Commerce and
000 other groups that these
would be available if needed.
'believe' in the principle of co-operative marketing. But these same farmers expect, if orderly
marketing through farm
The account of the reported statement by the Board was co-operative
marketing associations is to be the foundation of
the procontained in a Chicago dispatch Dec. 16 to the New York gram to place agriculture on an equality
with industry—
expect the Farm Board to believe also in the 'practice these farmers
"Times," which said in part:
of co-operative
marketing,' And they expect the Board to put
Short covering in volume in the wheat market to-day followed an early to
the principle
the full extent of its broad powers under the Agricultur into practice
decline to a new low mark on the present movement. The Farm Boards
al Marketing
statement that it would continue to lend money to carry wheat at the Act.
"The Board is made up of strong men. They
recently announced prices regardless of the market's action was largely
should be given every
responsible for a change in sentiment. With houses with Eastern con- chance to function. They should have freedom of action to the extent
nections free buyers, prices advanced 23' to 2% cents from the low and provided by the law. No one has any objection to criticism or • suggestions from any source, but the board should not be
the close was at about the top, with net gains 2. to 23 cents.
Reports that foreigners had taken about 1.000,000 bushels of hard
Winters and Manitobas also had some effect. While many operators
felt that the rally was simply a natural reaction in a bear market, others Abolition
of 35 Cent Differential on New York Cotton Exbelieved that the Farm Board statement would have considerable influence
change Urged By W. L. Clayton Before Senate
to-morrow and that a further upturn would be only natural.
ComWinnipeg had gained 2M to 214 cents at the last, while Buenos Aires
mittee Inquiring Into Cotton Exchanges. Time
finished unchanged to M cent higher and Rosario was up 14 cent. LiverFiling Committee's Report Extended.
pool weakened toward the close and finished unchanged to Md. lower
after having been sharply higher at one time. The May delivery there
A recommendation that the 35 cent differential
on the
was 93 cents over Chicago at the end, although earlier it was around 10
New York Cotton Exchange on Southern deliverie
s be abolished was made by W. L. Clayton, Houston (Tex.)
broker, in testifying on Dec. 16 before the Senate
ComSenator Capper Defends Policy of Federal Farm Board— mittee which is conducti
ng an investigation into the acHe Says Attack by National Commerce Chamber Was tivities and speculative
transactions on the New York,
Inspired by "Grain Gamblers."—Holds Law Misunder- Chicago and New
Orleans Cotton Exchanges. Associated
Press accounts regarding Mr. Clayton's testimony
Senator Capper of Kansas, said on Dec. 26, that the
The Houston dealer denied that Anderson, Clayton & Co. had
United States Chamber of Commerce was on the wrong an undue influence on the cotton market, as had been
charged. He
track in joining with the "grain gamblers" in its attack informed the Senate Agriculture Sub-Committee that the company never
had sold a "bale short."
against the Farm Board's policy of financing co-operatives
"We are not interested in breaking the price," he said.
"We have no
in the marketing of grain, according to a Washington dis- motive."
Senator Heflin (D., Ala.), a member of the sub-commit
patch to the New York "Times," which further reports him
days ago said the firm had held an "overshadowing" influence several
on the
as saying:
While Mr. Clayton was on the stand at an all-day hearing
The Senator expressed the belief that the Board was carrying out the
the com"spirit and letter of the act." Its program of loaning money for ware- mittee heard suggestions for legislation to aid the cotton farmer, a dishouses has been attacked by Julius H. Barnes and grain dealers of cussion of the effect of the tariff and the effect of a proposal to raise
the Farm Board loan basis for cotton from 16 cents a
Kansas, Minnesota and other Western States.
pound, the present
Senator Capper said that the farmers did not expect the Board to be rate, to 20 cents a pound.
At adjournment, the Texan still was on the stand. He
dictated to by these interests. If the present system proves ineffective,
will resume
he said, "there are the equalization fee and debenture plan in the back- his testimony tomorrow. After tomorrow the sub-committee
intends to
take a recess over the holidays and obtained permission
of the Senate to
"It is too early, of course, to pass judgment on the Federal Farm delay its report thirty days. Under the Heflin resolution ordering
Board," Senator Capper said. "The Board will be known by its works, investigation, a report was due Dec. 21.
Heflin opened today's session with a statement in which
and it has a long-time job to perform.
he predicted a
"But I want to say that it looks to me as if Chairman Alex Legge "gloomy" Christmas for many children of the South whose
fathers had
and his Board are on the right track. The program outlined is in line been hard hit by the decline in the cotton market.
"With cotton selling below cost of production,"
with the spirit and letter of the Agricultural Marketing Act. Carried
the Alabaman said,
out intelligently and energetically, the program of marketing farm prod- "and debts hanging heavily over their fathers the
outlook is indeed a
ucts through farmer-owned and farmer-controlled co-operative marketing gloomy one to the cotton producers and their families
in the South."
Asked whether Congress could help, Mr. Clayton
agencies will enable both the farmer and those who eat what the farmer
said the farmer was
"facing a world economic situation," and that
produces to profit in the long run.
legislation could do very
Declares Act Is Misunderstood.
Mr. Clayton suggested that Congress pass
a resolution to authorize the
"I must confess I am not in sympathy with the attacks on the Farm Departments of
Board and its policies by the 'grain gamblers'," Senator Capper con- production and Agriculture and Commerce to collect data on the foreign
consumption of cotton with a view to determinin
g their
tinued, "and these are the ones back of the recent attacks made by the effect on the
American price.
grain trade as a whole. It is regrettable that the Chamber of ComMr. Clayton said a correct diagnosis of
the cotton situation would aid
merce of the United States has joined forces with the grain trade. My in finding
a remedy. The committee is conducting an
own idea is that the Chamber of Commerce committee, just as Chair- reason
inquiry into the
for the depressed price of cotton.
man Legge said in his letter to Mr. Butterworth, President of the
Senator Heflin (D., Ala.), said it would be
a good idea to investigate
Chamber of Commerce, is laboring under two misunderstandings.
the cotton carry-over to determine how
much of it "was real" and how
"In the first place, it misinterprets the agricultural marketing
act, much was linters.

DEC. 28 1929.1



the merchandiswas no other commodity which is more competitive than
Mr. Clayton said he thought that information was available now, but
if there has ever been any parceling of
the inquiry would go into ing of cotton and said that
the Alabama Senator continued that he hoped
territories he did not know of it.
cotton growers,
the carry-over question with particular reference to its character.
If the cotton exchanges were taken away from the
being used to depress the price."
their cotton.
"Linters," he said, "are
Mr. Clayton said, the growers would not know how to sell
better than
a 35-point differential on the New York Cotton Exchange
Abolition of
Senator Heflin declared that the wool growers were faring
on Southern deliveries on future contracts was recommended by Mr. the cotton producers because there is no exchange in which wool could
S. C.),
Clayton who was questioned at length by Senator Smith (D.,
would do if there were no exprice be hedged. What the cotton growers
price and
as to what effect abolition of the differential would have on the
changes, he said, would be to meet in August and discuss the
to pay
of cotton.
their cotton for 20 cents, and the spinners would have
opinion the differential soon would be dis- then hold
The witness said in his
that much for it.
by the New York exchange and that when it was,
carded voluntarily
In the same account it was stated that charges that
shipment of cotton on future contracts to New York would cease.
"It's a matter for legislation if Congress thinks best," Mr. Clayton cotton exchanges have "degenerated into a gigantic gamsaid, "but it will come anyway."
on Dec.
bling machine" were made before the committee
The New York "Journal of Commerce," in its report 17 by Leo Shields, a cotton grower of Louisiana, representfrom Washington, covering Mr. Clayton's testimony on ing the Chamber of Commerce of East Carrol Parish, La.
Dec. 16, said in part:
The paper quoted went on to say:
Clash Over Buying at Call.
Before launching his attack on the exchanges, Mr. Shields outlined
the futures market, declaring
Throughout the hearing Mr. Clayton and Senator Smith (Dem.) of the views of the cotton farmers regarding
futures market and favor
South Carolina, were at odds over the question of buying cotton on call. that "we recognize the need of a legitimate
under Government supervision and
Senator Smith took the view that such transactions should not be the retention of such an institution,
allowed on the exchanges, while Mr. Clayton said that looking at the regulations.
legitimate futures
"I believe," he said, "that prior to 1914 we had a
matter in a broad way he could see no harm in buying cotton on call,
arrived at by the exchanges
although it has led to speculation in cases. At this point, Senator Smith market; then the price of spot cotton was
ascertaining the price at
shouted: "Stop the call business; stop the rendering; get rid of all the communicating with the selling agencies and
futures market
which the actual cotton was being sold. The price of the
technicalities and do straight business."
be, but today it is exactly
Senator Smith declared that there is not any use of talking about the was regulated by the spot price, as it should
the dog."
law of supply and demand governing the market; that the market has the reverse. In this case the tail is wagging
gotten so technical that no one can understand it except those who are
"Exercising Baleful Influence."
thoroughly familiar with the terms applied. Speculative interests alone
or off of a
The price of spot cotton is fixed as so many points on
price of
control the prices, he asserted. He added that be has studied the terms
month, called the trading month, he said, and "the basis
reference to
in buying and selling cotton through the exchanges for twenty-one given
the trading month is fixed by pure speculation,
manufactured product.
years and he found that it always led to the speculator.
the actual value of cotton as represented by the
Abolishment of the thirty-five-point differential for Southern delivery
branch of the cotton marketing maMr. So, gentlemen, that from an orderly
gambling maon the New York Cotton Exchange within a short time is seen by
chinery, the exchanges have degenerated into a gigantic
Clayton. He declared that with the abolishment of the differential on
exercising a baleful influence over the entire industry from
he did not believe there would be any more chine that is
of cotton
the New York exchange
the lowly two or three-bale farmer to the biggest manufacturer
cotton delivered in New York in the future.
goods. The futures market as at present conducted," he added,
not benefit anybody save the gamblers."
Sees Bonus Only Remedy.
The views expressed by President Miller of the
Senator Ransdell (Bern.), of Louisiana, asked the witness what could
be done by Congress to enable the producers to get better prices for York Cotton Exchange before the Coinmittee were indicated
their cotton. Mr. Clayton replied that he could see no way in which
of Dec. 14, page 3724.
Congress could do anything unless it was to create laws making the in our issue
On Dec. 13 J. P. Henican, President of the New
producers more able to compete with the foreign countries or else grant
a bonus or subsidy to the growers.
told the Senate Investigating Committee
Cotton Exchange,
Mr. Clayton said that the only alternative to the tariff which the pro"uncertainty of pending legislation is exercising a
ducers have to pay for imported commodities would be to give them a that
added that if the tariff burden was taken off detrimental influence" on the market. Associated Press
bonus on their exports. He
the cotton producers they could probably be in a better position to com- accounts of what Mr. Henican had to say follow:
on the
pete with the foreign producers. Senator Smith interrupted Mr. Clayton
Mr. Henican contended that until definite action was taken
to say, "Then you believe that the prices the producer has to pay for
pending measures, "the valuable protective influence of the
his commodities is governmentally stimulated." Mr. Clayton replied that
market will be minimized."
he was of the opinion that this was true, and he believed that the tariff
Operators who were accustomed to intervene by buying contracts when
has an effect on the farmer.
were low, he said, now are unwilling to "assume the double risk
if the Government has imposed an extra burden on about prices market and legislation."
of the
7,000,000 people by virtue of legislation, don't you think that it is the
capital" were
Tin added that "these men on the street with their
duty of the Government to equalize that burden by taking care of those needed, but said that they had been conspicuously absent since the
on whom that burden is imposed?" Senator Smith asked. "I certainly Agriculture Department's prediction of a drop in cotton prices in 1927
do," Mr. Clayton replied, and was interrupted by Senator Smith again
and the subsequent slump in values.
who said, "all right, that's all I want to get. It has aided industry,
Another reason he assigned as contributing to depressed cotton
American prices as to do substantial justice to those
why can't we so fix
was competition from India. He said that foreign mills were
are being mulcted by legislation on the one hand and European to foreign cotton at the expense of America and asserted that India
and the
buyers and statisticians on the other?"
was becoming the greatest competitor of the United States
world's largest producer outside of this country.
Selling Under Production Cost.
Questioned about the legislation to which he was referring, Mr.
Before Mr. Clayton answered the question of Senator Randsell he Henican said that measures now pending before Congress ranged "from
that have affected the cotton market. He additional regulation to practical abolition of trading on the exchanges."
again pointed out the conditions
cited as principal causes the general business depression and the fact
"It is within the range of truth to say that they are a disturbing
that spinners were buying from hand-to-mouth while the producers were influence on the cotton market and will continue to be until they are
rushing the crop to the market. Having a large market of actual cotton finally disposed of," he said.
with spinners buying only from hand-to-mouth the speculators had to
The New Orleans Exchange President testified that domestic occurjump in and handle the market, he said, and added that they were doing rences were not the only influences that govern the trend of the market.
and vary
the crash on the Stock Exchange.
a good job until
He said that these were worldwide "in their ramifications
"Cotton is selling several cents per pound under the cost of produc- largely in accord with the values abroad of exportable surpluses."
tion," Mr. Clayton asserted, and he declared that the underlying cause
"Hence," he said, "the futility of ascribing the ups and downs to
of the cheap price was the competition with the foreign countries. "There manipulation and speculation, which are of themselves circumscribed by
is no question but what the Indian cotton is a great factor," he said. He the laws of supply and demand. The exchanges do not make values.
pointed out that within the last two years there has been an increase of They reflect values which in turn, under the regulation of the United
500,000 bales in the production of spinnerable cotton outside of the States Cotton Futures Act for exchange trading, are closely the result
United States.
of supply and demand."
Mr. Clayton's further statements before the Committee
on Dec. 17, are indicated in the following from the "Journal
Senator Brookhart Urges Co-operative Banks for
of Commerce":
Upon being questioned today on his views of a probable increase in
the loans made to the cotton growers by the Federal Farm Board from
the application of the co-operative principle to all
sixteen and a fraction cents to twenty cents, Mr. Clayton opposed the
the fact that the United
proposal, declaring that it would mean that the Government would be American business, and decrying
in greater debt on the carry-over than they will be under the sixteen States is the one country In the world that prohibits farmers
cents policy. He estimated, however, that the increase would mean about
from organizing their own co-operative banking systems,
$70,000,000 for farmers.
21 spoke in the
Mr. Clayton also said, upon being questioned by members of the Senator Brookhart (Rep.), Iowa, on Dec.
committee, that he does not believe there is a conspiracy to depress the Senate on "the natal day of co-operation." We quote from
cotton market, adding that he did not believe it could continue if there
the "United States Daily" of Dec. 23, which went on to say:
Recalling the foundation on Dec. 21 1844 of the Rothsdale Co-operative
To Examine Books.
Association of Great Britain, the Senator declared that "this was the
(Dem.), of South Carolina, declared that "you find meagre beginning of the greatest economic idea ever promulgated."
Senator Smith
from statements from all sides why cotton prices should be lower" and
Operates 6,000 Stores.
read statistics to show that the world's production has not varied at all
now it operates
"The association has grown," the Senator declared, "until
since 1921. He said that he could not understand why there seems to be
its own private banking system,
"this almost unanimous bear talk." "There is a significance in it that over 6,000 co-operative stores, and has of any commercial bank. The
I think we can get," he said, and announced that the committee will which operates entirely
percentage of growth over six times as great as
go into the books of the cotton concerns before the inquiry is concluded. association has enjoyed aEngland.
Senator Heflin (Dem.), of Alabama, sponsor of the resolution direct- any private business in
"Robert Owen is generally credited with being the father of the coing the investigation, read a telegram which declared that buyers of
Rothdale Association was the first to operate
cotton from the producers now have territories assigned them and operative idea, though the
of trade dividends. If American business
asked Mr. Clayton if this was true. Mr. Clayton replied that there under the plan of distribution



o mild agree to operate under this plan,
I would be willing to repeal every
anti-trust law in the country," the Senator
Senator Brookhart continued by declaring
that none of the legislative
powers of this country, either State or
National, in passing tariff, public
utility and corporation legislation, bad ever
considered the wealth production of population and the people's ability
to pay.
Co-operative Banks Proposed.
In discussing co-operative banking systems
for farmers, Senator Brookhart
declared that "what we need is co-operativ reserve
banks for the little
fellows as well as Federal Reserve Banks
for large corporations. It is a
well known fact that the Federal
Reserve System does not meet the needs
of agriculture."
The co-operative system in England acts as
a powerful stabilizing influence to all business, the Senator declared, which
is reflected in the steady
slues of stocks as compared with fluctuations
in the American stocks.
Senator Brookhart concluded by declaring
that we have reached the
most critical period ia the history of the
co-operative movement.
'This Congress has decided to do something
," he said. "Chairman
Legge of the Federal Farm Board has not
yet reached the point where he is
wholly favorable to the co-operative movement.
Is he going to use the
money for farm aid under a real co-operativ
e plan, or under the corporation laws of Delaware or New Jersey?"

"Monthly Labor Review" for December of U. S. Department of Labor—Study of Union Wages
Unemployment or underemployment was given as a major
cause of dependency by more than half of the families covered
by a ease study of 1,000 families applying for aid in three
Boston family relief agencies. The study, appearing in the
December issue of the "Labor Review," issued by the Bureau
of Labor Statistics, U. S. Department of Labor, shows that
although unemployment is an important factor it is not the
only cause of economic breakdown as in only 11% of the
cases was it given as the sole reason, while only 3% of
families stated that their dependency was due entirely to
underemployment. In the remaining 86% of the cases
was the factor most frequently associated with lack
of employment, among the other important factors being
defects, old age, intemperance, imprisonment, and
families. The wages in the last job, for the women,
from under $5 to $25 or more per week, the model
being $10—$14: while for the men they ranged from
more, the model group being $20—$24 per week.
$15 to $35 or
One-fifth of the men, however, had received no wages
some time before they applied for aid. The Bureau
The annual study of union wage rates by the Bureau
of Labor Statistics
shows the rates in 1929 were, on the average, slightly
higher than in 1928.
The survey covered 786,010 organized workers
including the Principal
time-work trades—Bakery trades, building trades,
drivers, stone trades, laundry workers, linemen, longshore teamsters and
men, and printing trades—in 67 important industrial cities. The average
hourly rate in
1929 for all trades covered was 31.204 as compared with
31.195 in 1928.
The reduction in hours of labor has been almost as continuou
s from year to
year as the Increase in hourly wage rates, a reduction of
four-tenths of 1%
from average working hours in 1928 being shown in
The amount of the salaries paid to members offire and
police departments
In cities having a population of 100,000 or over was the
subject of a questionnaire study by the Bureau under date of August 30,
1929. The figures
for fire departments are presented in this issue of the
"Review." in general the salaries vary with the period of service, automatic
increases being
given at fixed intervals, the maximum usually being reached
at the end of
from two to four years. In certain cities efficiency as well
as length ofservice
Is considered in granting salary increases. The salaries of first-year
range from 31,200 in Oklahoma City to $2,160 in
Oakland, Calif. The
highest salary paid to any private was found in Detroit, Mich.,
where the
annual salary is $2,520 after 15 months'service.
A summary of a recent bulletin of the Bureau of Labor
historical study of American wages from colonial times to 1928—cont
the long hours and low wages of colonial times with present
hours and
earnings. For example,in 18-10 a carpenter In Massachusetts
earned on the
average $1.25 a day and his working hours averaged 65 per week, while
1928. in the same city the carpenter earned $1.25 an hour and his working
week was 44 hours. Similar differences are shown in the
wages and hours of
work of bricklayers, cotton weavers, shoemakers, and members of other
Other articles of interest include an account of the social insurance
system in the Netherlands, a review of the labor banking movement
of the
United States, various articles on labor and economic subjects,
and the
usual statistical reports on trend of employment, wages and hours,
wholesale and retail prices.

[VOL. 129.

their spot purchases as a protection until there
is a demand for the cotton
from mills and manufacturers as well as from
foreign importers. But for
this buying of spots by cotton merchants, there
is no telling how low cotton
would have gone.
Farmers the Real Bears.
Our Senators are investigating cotton merchants
when as a matter of fact
the real cause of the decline in the cotton market
has been the eagerness
of cotton farmers to get rid of their cotton as
fast as ginned. The only
real bears in the cotton market this year have
been the farmers themselves.
They have sold and sold, regardless of the
It cannot be proved that Southern delivery on
the New York contract has
had a depressing effect on the market for, as
a strict fact, the difference between spot cotton and futures has been narrower
than usual this season.
Usually, and with but few exceptions during
the past several seasons, cotton
shippers have been able to buy cotton from interior
street buyers at from 100
points to 150 points off December New York
basis middling, unculled for
staple, f. 0. b. primary markets in the Eastern
belt, and at nearly the same
basis in other sections.
This year the buying basis has been high.
Interior street buyers have been
able to sell their daily purchases at from
50 to 75 points off New York December all the fall,and,in good staple sections,
even with December has been
paid right at the gins from day to day.
The Government and, seemingly,
everyone else connected with the cotton business
has been trying to help
the farmer, while the farmers themselves
have been exerting a bearish
influence on the market all the time by selling
their cotton at what they
could get for it from day to day and every
Market Not "Pegged."
When the Federal Farm Board announced
that it would advance the
farmers 16c Per pound basis middling, through
the co-operative associations,
many well posted people thought this would
"Peg the market," but it had
no such effect. The farmers seem to prefer
selling their cotton themselves
at what they can get for it rather than placing
it in the hands of the cooperative associations. Reports of street buyers
buying cotton from nonmembers and selling it to members of
the co-operatives at a profit are
The Senators are looking in the cotton exchanges
and among the cotton
merchants for the bears; they need to turn aside
and go out in the country
If they wish to locate the only bears in the cotton
market. Over a million
bales were marketed and brought into sight in one
week in November when
bull speculators were trying to hold the market by buying futures.
It could
not be held as the farmers were too eager
to sell and insisted on selling
all they could pick and gin as fast as possible.
It may be true that the co-operative associations
have not been free sellers
this season, but the co-operatives only handle
7 to 10% of the crop, and
independent farmers have refused to join in any holding movement
. It
might be said that the farmers had to
pay their debts to merchants, but
these debts are made payable usually on Nov.
1 to Nov. 15, and yet the
farmers began selling as fast as they could pick
and gin as early as in August
this year and continued it to date.

Merchants Supported Market
"Helping the farmer" has always been a popular pastime among politicians, but it seems certain that no politician has
been as great a help to
the farmers this year as has been the star witness
at the Senatorial investigation in Washington last week. Cotton merchants
have been buying cotton all the fall as fast as the farmers would sell,
and the real wonder is that
these cotton merchants were paying a higher basis
all the fall than they have
been paying in past years, and at the same time have
been forced to warohouse the cotton for a lack of mill demand.
Usually at this time of the year Southern mills have contracted for
about all the cotton they will need until the next crop begins to move.
This year only a few mills have covered their requirements beyond March.
1930, and many of them have only enough cotton on hand
to last them
through January 1930.
Unless the basis improves and the mills become free buyers the merchants who bought from the farmers may be also in need of help, but it
goes without saying that the cotton merchants of the world must get on
without help. A few of them have been able to make money, but the record
of the last twenty-five or tiny years shows that many of them have gone
There are not very many old cotton firms in this country. The farmer sells
his cotton "as Is" to the cotton merchants, the latter has
to guarantee it
what he says it is until it is opened at the mills, and some strange things
have been found in some bales when they were opened. If the Senators
really want to find the cause of the present price of cotton,let them investigate the farmers who sold more cotton day by day then the market could

Investment Trusts Arouse Discussion—Wall Street's
Views Clash on Which Type Offers the Greater
Stability—Both Hard Hit in Slump—Liquidating
Values Figure in Contentions Advanced by Two
Rival Groups.
According to the New York "Times" of Dec. 22, the bear
market has started a controversy between sponsors of the
two chief types of investment trusts—the general management type of investment trust, which permits its managers to
made wide changes in its securities portfolio, and the fixed
Cotton Men Object to Senate's Probe—Farmer Called investment trust, which allows no alteration in the underlying securities. The item from which we quote further
Principal Bear Influence in the Market This Year—
Cotton Merchants Constant Buyers.
The discussion centres upon the question of which type of trust
In special advices from Charlotte, N. C., Dec. 23, the greatest stability and the largest profits in the light of the recentoffers the
slump in
New York "Journal of Commerce" says:
During the nine months ended on Sept. 30, in which the investment trust
Cotton manufacturers, as well as cotton merchants and brokers

in this
section, can see no good reason for this investigation of the cotton business
by a committee of the Senate. There are so few secrets in the cotton business these days that it is practically useless for any individual or firm to try
to cover up any important deals in cotton or the cotton market.
In fact, It simply is not done. One hears rumors of some large sale to a
cotton mill and next hears exactly who made the sale and what were the
grade, staple and shipment. Any transaction of more than ordinary size
is quickly reported, and the news is flashed over the wires from Maine to
It is a known fact that the larger firms of cotton merchants have been
large buyers of spot cotton in all sections of the South all this season, while
the American mills have been buying only for immediate wants. Naturally,
these large cotton merchants have sold hedges In the future markets against

movement is held to have made its greatest gains and in which securities
totaling $2,000.000,000 were sold to the public by investment trusts,trading
companies and holding companies, the general management form of trust
met the greatest popularity, according to bankers who were
identified with
the movement. This popularity, the bankers say, was based upon
generally held belief that the skilled executives and directors of the general
management trusts would not only obtain large profits for their organizations during bull markets but would guard the assets of their trusts against
market depreciation in times of depression by seizing the proper opportunities for increasing or decreasing security holdings.
While the fixed trusts also grew rapidly during the first three quarters of
the year, their gains did not keep pace with the expansion
of the general
management trusts, whose stock offerings were several times as large as
f he fixed trusts. Both types of trusts sought profits through in-

DEC. 28 1929.1


vesting in diversified lists of securities, but the fixed trust, in failing to provide management for its portfolio, lacked the popular appeal of the general
management trusts, the bankers hold.
During the fall bear market both types of trusts, it is conceded, suffered
severe losses. As a result of the crash, however, the sponsors of the fixed
trusts are asserting now that the test demonstrated that their organizations
Possess greater stability. This claim is strongly controverted by the sponsors of the management trusts.
A letter sent recently by the sponsors of several large fixed trusts to their
stockholders asserted that 62 listed general management trusts showed an
average declinefrom the high of the year to the low level on Nov. 14 amounting to 69%,while a group offixed trusts demonstrated their greater stability
in declining only 32% during the corresponding period.
"The three weeks ended Nov. 15," the letter says, "closed a memorable
chapter in stock market history. In abruptness and extent, the decline
eclipsed all records. The pressure brought to bear on all classes of stocks
found reflection in corresponding declines of all investment trust securities.
The test was severe, but we were totally unprepared to witness the overwhelming victory for the fixed trust."
Views on Liquidating Values.
While contradicting the latter statement,sponsors of the general management trusts concede that many of their issues showed wider declines than
did several fixed trust stocks. The reason for this, they say, was that the
market price of the fixed trust stocks must be based at all times upon the
liquidating value of the underlying stocks, while the general management
trust issues may fluctuate far above or below their liquidating value. Prior
to the crash, the general management stocks sold many points above their
liquidating value, but under heavy selling pressure, during October and
of the
November, many of them receded to levels that were from 2-3 to
break-up value.
Aside from the question of the fluctuation in the market prices offixed and
management trusts, sponsors of the latter contend that their units fared
much better in the bear market than the fixed trusts. Before the slump,
they assert, many general management trusts sold a part of the investments
on which they had unrealized profits and kept the proceeds in the callmoney market during the fall decline. Several of the largest management
trusts are said to have had from 40 to 80% of their assets in cash before the
slump gathered momentum, and consequently not only minimized their
losses but were enabled to buy stocks heavily at the lowest levels.
The fixed trusts, on the other hand, were prevented by their indentures.
It is contended,from liquidating any portion of their security holdings before
the crash. They had invested 100% of their assets in common stocks during
the break and were unable to "average up" on their holdings by purchasing
additional shares at the lowest levels.


Boody, on election, will become a general partner of his
father's firm, Boody, McLellan & Co., and will take his
father's place on the floor of the Exchange. Mr. Boody
has been a member of the Stock Exchange since 1908 and a
member of the firm of Boody, McLellan & Co., since 1904.
He has been a Governor of the Stock Exchange since 1918
and has served on some of the most important Committees
of the Exchange, including the Finance Committee, the
Business Conduct Committee and the Committee on oda
Lots & Specialists, of which Committees he is still a member,
and the Admissions Committee, the Committee on Constitution, and the Publicity Committee, of which he was ViceChairman for several years. Mr. Boody also served on the
Special Committee on Survey and on the Special Committee
on the Increase in Membership.
Edgar Boody's father, David A. Boody, recently retired
from the firm of Boody, McLellan & Co., which is one of the
oldest firms in the Street, on reaching his ninetieth year.
David A. Boody is the last living Ex-Mayor of the City of
Brooklyn, and was for many years prominent in both Brooklyn and Wall Street affairs. He still resides in Brooklyn,
although he has retired from his Wall Street interests.

Say Losses Were Checked.
Supporters of the management trusts contend that their organizations
were able to build up large reserves out of realized profits before the break
came, whereas the fixed trusts had automatically distributed all their earnings as dividends on the participating shares. Management trust executives
also declare that their organizations were able to minimize their losses
through achieving greater diversification in investments than the fixed
trusts are able to attain.
There are observers in Wall Street who hold that, theoretically, the fixed
trusts should fare better in a bull market, since they would have 100% of
their funds invested in common stocks The management trusts, on the
other hand, would have portions of them assets In cash or bonds, on which
the profit is smaller than on common stocks in a boom period. During
bear markets, however, according to these observers, the general management trusts should be able to show better earnings, since the executives are
Permitted to liquidate thefr common stock holdings whenever the outlook
becomes unfavorable.

Brokerage Firm of Backus, Fordon & Co., Detroit,
In Receivership—Ralph Fordon Resigns as President of Detroit Stock Exchange.
The Detroit brokerage house of Backus, Fordon & Co.
filed application for a receivership on Dec. 24, according to
the Detroit "Free Press" of that date. A statement by the
firm blames the recent stock market crash and the consequent inability of many of their customers to meet their
obligations to the firm for the failure. The statement,
which was signed by Ralph Fordon and H. D. Backus, as
printed in the paper mentioned, said:

Due to the recent drop in the stock market, many of the customers of
Backus, Fordon Sr Co. find theme:yes precently unable to meet their obligations to the company, and because certain of its assets are not readily
convertible into cash this company finds itself without sufficient working
capital to properly continue its operations.for
In order, therefore, to fully preserve the assets of the corporation
the benefit of the creditors and stockholders, we have applied for
liquidation of the
appointment of a receiver, thus insuring an orderly
realized from
company's property and accounts. While the amount to be
it is expected
the assets is dependint, of course, upon market conditions,
of the
that under ordinary circtansianees prudent and orderly liquidation
creditor and
assets of the company will result in payment of every

A week ago, to the Detroit paper, Mr. Fordon
resigned as President of the Detroit Stock Exchange and
announced his firm would relinquish its membership. Mr.
Financial Stock Clearing Co. Formed—Mark A. Noble,
Portion's resignation was accepted on Dec. 24 and the firm's
seat on the exchange has been disposed of for $60,000. The
It was announced on Dec. 24 that the organization of company had been a member of the exchange since Dec. 14
Financial Stock Clearing Co., Inc., has been completed by 1920. Continuing, the paper mentioned said:
Stevenson, Butzel.
those dealers in bank stocks who have expressed their willingThe application for a receiver, which was filed by
the Detroit k
ness to join in an association for the clearing of bank and Eamon ik Long, attorneys, suggested as receivers Fordon az Co. &emit?,
insurance stocks. The following directors have been named: Trust Co. and Robert T. Ross, Cashier of by Circuit Judge Maurice Markwere appointed

The suggested receivers
Warren Sullivan, with McClure,Jones & Co.; Gilbert Elliott, with Gilbert
ley, Circuit Court Commissioner.
Elliott & Co.; and J. R. Derksom, of Orannis, Doty & Co., to serve for a
Will Markley,
A meeting of creditors has been scheduled for Feb. 11 by
Period of one year; Otto Culman, with Stanton & Co.: Prank S. Thomas,
Circuit Court Commissioner.
with Potter & Co.; and Willis M. Summers, with Bolt, Rose & Troster, to
Springer, former
Until its annual meeting next month, at least, Max
serve for a period of two years; Mark A. Noble, with Noble & Corwin;
ent, will be President of the Stock Exchange.
Clinton Gilbert, with Clinton Gilbert; and Gerald Clokey, with Clokey & Vice-Presid
for a period of three years.
Miller, to serve

At a meeting of the board of directors the following officers were elected: President, Mark A. Noble; Vice-President,
Otto Cu'man; Treasurer, Willis M.Summers, and Secretary,
Clinton Gilbert. The qualifications for membership in the
association include a requirement that each clearing member
must have a net worth of at least $200,000. A meeting to
consider the by-laws of the new organization was held on
Dec. 10 at the offices of Clinton Gilbert, the New York
"Journal of Commerce" in referring thereto, said:
The organization of the new clearing house is being sponsored by the
Bank Stock Dealers' Association,including sixty dealers specializing in these
securities. A number of other dealers were present at the meeting and are
expected to join the organization, it was said
Dealings in bank and insurance stocks have assumed enormous proportions during the last few years. As those issues are, with minor exceptions,
traded in on the over-the-counter market, a lack of organized facilities for
transfer of securities and settling of transactions has been felt. Conditions
have been especially difficult in times of active trading and in times of
erratic price fluctuations, as during the recent break in stock prices. A
better control over trading conditions is thought likely in the long run
through the operation of the clearing house, control of which will be owned
by the members through stock ownership.

Edgar Boody, Assistant Treasurer New York Stock
Exchange Transfers Seat to Son.
Edgar Boody,for many years a Governor and the Assistant
Treasurer of the Stock Exchange, has posted his seat for
transfer to his son, Edgar Boody, Jr. The younger Mr.

W. W. Townsend & Co., Inc., Stock Brokers, New

York, In.Bankruptcy.
W. W. Townsend & Co., Inc., a brokerage house of
120 Broadway, this city, with branch offices in Albany,
Syracuse, and Buffalo, filed a voluntary petition in bankruptcy in the United States District Court yesterday,
Dec. 27, giving its liabilities as $230,651.63 and its assets
as $128,112.85, according to the "Sun" of last night. The
petition, filed by Louis H. Saper, attorney of 49 Chambers
St., listed the Central Hanover Bank & Trust Co. as the
principal creditor, to which the bankrupt firm owes $118,000,
it was stated. This debt is secured, the petition states,
to the amount of $108,400. No cause for the failure was
contained in the petition, it was said.
Brokerage Firm of E. A. Randolph & Co., Inc., New
York, Enjoined from Selling Securities.
An order permanently enjoining the brokerage house of
E. A. Randolph & Co., Inc., 29 Broadway, this city, from
the further sale of securities was issued on Dec. 18 by Supreme Court Justice Strong in Brooklyn, according to the
New York "Times" of Dec. 19. The order, it was said, also
restrains the members of the firm, Emile Helfer and Rudolph
Witrofsky, from further operations. Continuing, the
"Times" said:



[VOL. 129.

The firm recently was investigated by Assistant AttorneyGeneral Wat- corporations in the United States. It is taken from the Treasury's statisson Washburn, head of the State Bureau of Securities.
in his drive against tics of income for the years 1922 to 1927. To the figures derived from this
firnts specializing in fraudulent "puts and calls."
This is a form of insur- official source have been added estimates for 1928 and 1929.
ance which enables the stockholder to limit his losses, and is
conducted by
legitimate brokers and is guaranteed by members of the New York Stock
Exchange. The fake brokers gave their own contracts, which are not guaranteed by any responsible person. Mr. Washburn explained. Scores of
Net Profits Net to
complaints, mostly from out-of-town speculators lured by promises of
After Taxes. Gross. Dividends.
"Christmas money," have been received against this latest stock "racket,
Mr.Washburn said.
$101,314,000 $5,183,000 5.11% $3.436,000
119,019,000 6,697.000 5.63
119,746,000 5.913.000 4.94
136.710,000 8,146,000 5.96
Mackie, Hentz & Co., Investment Bankers, Phila- 1926
142,629,000 8,280,000 5.80
144.899,000 7,538,000 5.20
delphia, in Bankruptcy.
*155,000,000 *8,500,000 5.49
*1•7n 11/111 Ann so onn nnn A R9
A voluntary petition in bankruptcy was filed in the Fed1 R nnn_nnrs
* Estimated.
eral District Court of Philadelphia yesterday (Dec. 27) by
Not since 1921 have dividends encroached upon surplus. During these
the investment banking firm of Mackie, Hentz & Co., years the accumulations
of surplus out of earnings amounted to almost
Philadelphia, one of whose former employees was recently $16,000,000,000. At the end of 1927 the surplus and undivided profits of
convicted of embezzling about $250,000 belonging to the all corporations, after subtracting deficits, were shown by the Treasury as
firm, according to Associated Press advices from Philadelphia $40,500,000,000. By the end of 1929 this item will totalwith accumulated
Dividends of American corporations are well buttressed
yesterday, published in the New York "Evening Post" which surplus, so that their future maintenance does not depend on the profits
of any single year. In 1927 corporations which reported deficits paid
cash dividends of $637,000,000.
The petition was filed upon the advice of counsel, who issued a statement
It Is important also to note that the profits shown above are after interthat the firm had been forced to take this course "in order to prevent pref- est payments and
after providing for depreciation, amortization and depleerences caused by the issue of attachments against substantial assets of tion. In these last eight
years over $28,000,000,000 have been charged to
the firm by certain creditors, who had refused to agree to a settlement operating
expenses and carried to depreciation reserves. The annual
between the firm and its creditors, which had been proposed by a creditors' charges for this
account have increased from $2,889,000,000 in 1922 to
over $4,200,000,000 in 1929. In 1920 they had been only $2,073,000,000.
"It is impossible to state at this time," the statement said, "what the
• * •
assets of the firm amount to, as they are largely represented by the equities
From 1922 to 1927 the Treasury reports show that interest payments of
In the bank loans, and the amount that creditors will receive is dependent
all companies increased from $33,069,000,000 to $4,375,000,000. At the
on the liquidation of these loans.
same time, dividends grew from $33,436,000,000 to $6,423,000,000. These
The employee who embezzled the $250.000 is Clarence E. Heitman. His Interest payments
include those on bank deposits. If they were eliminated
defalcation was discovered at the time of the Stock Exchange slump when the disparity in
growth would be still more striking. In 1929 the interest
he was unable to put up sufficient margin to protect stocks he had purchased.
Payments will not exceed $5,000,000,000 while dividends approximate
He was recently sentenced to five to ten years in the penitentiary.
$8.000.000,000. During these eight years the new stock issues exclusive
"The liabilities of the firm," It was stated by counsel, "are chiefly for of refundings
have been less than $15,000,000,000.
conversion of securities and cash of customers by Heitman."
What Map We Expect in 1930?
So much
past experience.
Sewell S. Watts, Partner in the Investment Banking depends firstfor all upon the extent What may we expect in 1930? That
and duration of the decline in industrial
Firm of Baker, Watts & Co., Baltimore Dies production. The Harvard Economic Service in its Nov. 16 Issue sums up
its view to the effect that "a severe depression like that of 1920-21 is outSuddenly.
side the range of
than a mild recesSewell S. Watts, a member of the investment banking firm sion such as that probability." But,the end of more is already certain.
which occurred at
of Baker, Watts & Co., Baltimore, committed suicide by This means that the only forecasts worth considering are (1) a severe recesa few
shooting himself yesterday (Dec. 27) in'a private garage sion lastinglasting months longer and followed by recovery; and (2) a mild
at least six months and not so promptly followed by a
near his home in Baltimore.
return to prosperity. Precedent favors the first of the alternatives and
makes it premature to forecast a depression.
Col. Leonard P.
speaking before the Harvard Economic
David Friday on Effect of Probable Business Recession expressed the view Ayres production and employment would fall Society
in the
earlier part of the year but would turn up in the latter part, and that the
on Corporate Profits and Dividends.
Prices of non-agricultural commodities would fall, but not more than 5%•
In an article in The Bankers Magazine, issued Dec. 16,
If these two groups of predictions come true we will experience a depresDavid Friday discusses the effect of a probable business sion more severe than in 1927 but less serious than in 1924. It will probably carry the index of industrial production down from 126, its highest
recession on corporate profits and dividends in 1930, and
1929 to 105. The average
states that even if profits should "decline by the same per- Point, in Junethat of 1928, which was 110.level for the year 1930for any
not fall below
This was the highest
cent as in 1924 they will still be well above the total divi- full year up to that time. In 1929 it will average 120 even with the recesdends paid in 1929." He adds that "the corporations will sion which we are experiencing at its close.
Under these conditions the profits of all corporations will fall. But even
therefore be able to maintain their dividends on the high level if they decline by the same per cent as in 1924, they will still be well above
of the current year if they choose to do so. In the depres- the total dividends paid in 1929. The corporations will, therefore, bo
dividends on the high level of the current year if
sions of the last eight years they have never allowed them to they to maintain their In the
choose to do so.
depressions of the last eight years they have
recede." We give the article in part herewith:
never allowed them to recede.
What does 1930 hold in store by way of profits and dividends? This
question is on everybody's lips because it is generally expected that some
Bank of Nova Scotia on Decline in Stock Values and
degree of business recession will follow in the wake of the recent collapse
of prices in the stock market. This expectation amounts to well-nigh a
Effects of Same.
certainty in the public mind, and Is supported by the utterances of most
The possibility that the recent decline in stock prices may
financial writers and agencies. The fact that the stock market crash of
March 1926 brought no business recession, but only predictions that de- in the long run "react upon the great exporting industries
pression would follow, is ignored, as is that fact that the "Black Friday" of Canada not
harmfully, but if anything beneficially"
of May 1927, on the Berlin Stock Exchange brought no decline in producis indicated in the following from the December issue of the
tive output.
The important question which remains to be discussed is the probable .Monthly Review of the Bank of Nova Scotia, in a discussion
decline in productive output and its effect upon the profits which corpora- of
"The Aftermath":
tions will earn, and the dividends which they will distribute.
At every marked change, whether in climatic or political or business
Business Recessions of 1924 and 1927.
conditions, the mind instinctively searches the past for precedents. When
Our experience during the last eight years will give us some assistance In the great liquidation began in the security markets last October, comarriving at a definite answer to this question. We have had two business parison was naturally made with the pronounced decline of nine years ago:
recessions during that period. The first came in 1924 and carried indus- current opinion described the conditions of October as "the most serious
trial production, as reported by the Federal Reserve Board, down from a since 1920." Further liquidation led to paralells with earlier, and yet
level of 102 early in the year to 84 in July. This was a decline of 18%• earlier times: comparison was made successively with 1907. 1893, 1873.
The second reversal in business came in the latter half of 1927. It carried 1857, and other years of pronounced financial stress. Finally, when the
full dimensions of the recent decline became evident, little less than a
production down from 112 to 99. This represented a fall of 12%.
In both of these periods prices fell along with production, especially month ago, still older memories were ransacked, and the situation of 1929
those for non-agricultural commodities. These had averaged 165 in the was compared, more than once, with that of 1720, when the collapse ocfirst quarter of 1924. By mid-summer they were down to 158 and re- curred of the South Sea Bubble. Possibly not for two hundred years out
mained at that level four months. The year 1927 started with a level of had there been so swift and widespread a correction of inflated security
156 for these industrial products. By April they were down to 150, and prices, and one which took so many by surprise
Just as. In warfare, the time immediately following an action is devoted.
they have not advanced 2% since that time.
The price index for all commodities, agricultural as well as industrial, by those engaged in it, to the counting of casualties; and only when the line
fell less than did the latter group, and rose sharply toward the close of is established and the smoke of battle clears away, can the result be seen
both years because of a rapid recovery in farm products. These recessions for the first time in perspective, so on the present occasion it would have
were regarded seriously at the time, especially that of 1924. The follow- been premature to make an appraisal of the situation as a whole, at a time
ing quotation from the Commercial and Financial Chronicle in Juno shows when individuals were with difficulty trying to calculate their own immediate losses. The opinion may be ventured that not until now has it
that the situation was considered a serious one:
"Nearly all the leading industries of the country are in a state of utmost been possible to make even a reasonable estimate, based on the sober
depression. The complete collapse in business, which has occurred since realities, of the new State of affairs. At last, however, we may hone
the beginning of March, ranks as the most pronounced in trade annals." that, without indulging either in unwarranted pessimism or in equally
The 1927 decline was regarded less seriously, but it was of sufficient mag- baseless optimism, the change that has occurred may be reviewed obnitude to move the Federal Reserve System to buy eighty millions of iectively.
In the present instance, there is less to be learned by ransacking the pages or
Government securities and to reduce the rediscount rate, partly "In conhistory, than would at first sight be supposed; for this is the first example,
sideration of the recession of business in the United States."
since our present industrial system was evolved, of a great decline in stock
Profits Reduction in Previous Reversals.
values that was not preceded by the development of unhealthy conditions
How seriously did these two reversals of the course of prosperity reduce in the commodity
markets. It is agreed by most authorities that, despite
profits and dividends? The following table answers this question for all the presence
of unstable influences in the automobile and certain other, but

DEC. 28 1929.1


much less important, industries, in general the business situation was
healthy during the summer and fall of 1929; and no serious apprehension
was felt on this score.
Looking back on what has occurred so dramatically, there is much that
Individuals will bitterly regret. On the other hand, whether the Dominion
as a whole has been the loser, is another and a different question.
The view put forward in the brief analysis that follows is threefold: first.
that the fall in security prices must have some influence of an adverse
character upon business conditions, but that this in itself need not be heavily
stressed; secondly, that we can now discern a definite, though neither an
abrupt nor a serious slackening of industrial activity within this country
before the break occurred; and thirdly, that on balance, and in the long
run, the break itself may quite possibly react upon the great exporting
industries of Canada not harmfully, but, if anything, beneficially.

Massachusetts Bill Would Prohibit Banks from Giving
Legal Advice.
Under date of Dee. 16, the following from Boston appeared
in the "United States Daily":


in the course of business or Is purchased by the bank at sales under Judgments, decrees or mortgages held by the company, unless special written
permission to continue to hold said real estate is granted by the superintendent of banks.
Prior to the codification of the banking laws by said chapter 89 of the
Laws of 1927 the banking laws insofar as they related to incorporated banks
were found in sections 6014 to 6086 R. C. M 1921. and the laws relating to
unincorporated banks were found in sections 6095 to 6107 of said codes.
Section 6015 of said codes which related to incorporated banks specifically
provided that the act should not apply to private banks except that they
were to comply with section 6069 referring to reserve requirements. It
therefore appears that by its own terms the banking act as it existed at
that time relating to incorporated banks should not apply to private banks
except as to reserve requirements and in State v. Yegen, 74 Mont. 126.
238 Pac. 603, the Supreme Court of Montana appears to have concluded
that insofar as private banks were concerned they were governed by sec
dons 6095 to 6107 of the codes, which dealt specifically with unincorporated
referring to incorporated banks
banks, and that the provisions of the code
did not apply to unincorporated banks.

Laws Are Enacted.
Since this decision, however. chapter 89 of the Session Laws of 1927 has
been enacted and it is a general revision and codification of the Laws of
Montana relating to banks and banking and it covers both incorporated
and unincorporated banks. Section 2 of said chapter provides "that this
act shall not apply to any person, firm or association now doing a private
business; provided, however, that said private banks hereinabove referred
to shall come under all of the provisions of this act which may be fairly
applicable thereto; "
This provision was not contained in the prior law and in my opinion it extends the provisions of the act to private banks insofar as they can be said in
the nature of things to fairly apply to the conduct of unincorporated banks.
The object of the banking law is to regulate the business for the safety of
the public dealing with the banks and if the legislature has deemed it good
policy to prevent incorporated banks from holding the real estate above
mentioned for a period longer than five years without special permission
from the superintendent of banks, reason would seem to compel the conclusion that the safety of the public would likewise demand that this same
Provision should be applicable to private banks.
I can see no reason to conclude that this provision of the law is not fairly
applicable to private banks within the meaning of section 2 of chapter 89 of
the laws of 1927. It is true that said section 25 of said chapter apparently
confines the restrictions to "banks organized under the provisions of this
act" but this statement must be read in connection with said chapter 2 above
quoted, which makes this provision also applicable to private banks if in
reason it could be said to be fairly applicable thereto. As stated above,in
my opinion it is fairly applicable to private banks and I so inform you.
You further inquire if said unincorporated or private banks are subject to
the provisions of section 27 of said chapter 89 of the Laws of 1927. which
provides that no commercial bank shall loan in the aggregate more than
25% of its assets on real estate loans, &c. For the reasons hereinabove
Montana Law Governing Mergers of Bank Trustees stated, it is my opinion that this provision is fairly applicable to private
Held Not to Intend that Consolidated Institu- banks in the same manner that it is applicable to incorporated banks.
The legislature evidently concluded that in the banking business the safety
tions Hold Own Securities in Trust.
of the public required legislation of this sort and inasmuch as the public
Helena, Mont., advices Dec. 17 were published as follows In dealing with a private bank does so in the same manner that it does with
an incorporated bank, I can see no reason why what the legislature deemed
in the "United States Daily" of Dec. 18:
for depositors dealing with an incorporated
Where one Montana bank has boon acting as trustee of the securities of to be a reasonable safeguard
fairly applicable to the depositors dealing
another Montana bank, placed with it to secure the deposit of county funds bank should not be said to be
opinion, therefore, that unincorin the second bank, and the two banks in question merge, the consolidated with unincorporated banks. It is my
provision of the law.
Institution can not continue to serve as trustee, according to an opinion porated banks are subject to this
rendered by L. A. Foot, attorney general. It was not intended, Mr. Foot
said, that a bank should be permitted to act as trustee for its own securities, Dominick & Dominick See Benefits in Decline in Labor
which would be the case in the situation outlined.
Banking Movement.
The opinion follows in full text:
You have requested my opinion on the following questions:
Decline in the labor banking movement since 1926 has
"Where a bank is acting as trustee of the securities of another bank Placed
been accompanied by several favorable developments,
with the bank to secure the deposit of county funds and the two banks merge,
according to the review published Nov. 9 by Dominick &
can the first bank still continue to act as trustee of such securities?
"In case there is no bank in the county and more than one bank is desig- Dominick.
nated by the commissioners outside of the county, does chapter 49 of the
"It has meant for one thing the weeding out of weaker
laws of 1929 mean that the money must be pro-rated the same as if the banks
were in the county?"
units in the field, and the survival of a few well established
Chapter 49 of the laws of 1929 provides in part as follows:
banks that may operate unhampered by the prejudice and
"Provided, further, that when negotiable securities are furnished, such
enterprises in the movesecurities may be placed in trust and the trustee's receipt may be accepted in distrust attached to less successful
lieu of the actual securities when such receipt is in favor ot the treasurer, his ment," the review states.
successors and the State of Montana,and the form of receipt and the trustee
We likewise quote as follows from the review:
have been approved by the State examiner.'
Like all pioneering movements in the field of social endeavor labor banking
It was not the intention of the law that a bank should act as trustee of his
After a decade of existence,
or its own security and it Is therefore my opinion that where the two banks has undergone a period of rise and recession.
1926, there are to-day
merge and become one legal entity, the first bank can not continue to act as wherein the greatest detelopment was achieved in
$108,539,900. Compared with
trustee of the securities in question. If, however, the two banks continue to 22 labor banks with aggregate resources of
appears to be on the
operate as separate legal entities, and the only "merger" is that a third cor- the 36 banks in operation four years ago,the movement
soundly established banks
poration Is the holder ofstock in both banks,so that in fact there is no merger decline; but it is leaving behind it a nucleus of
with resources that still total well over a hundred million dollars. In other
of their entities, business and affairs, it would be otherwise.
banking has become
In answer to your second question, will say there is no provision in chapter words, the stage of experimentation is over, and labor
49. supra, requiring the pro-rating of county funds in banks outside of the an established phase of present-day finance.
In May 1920, the Mount Vernon Savings Bank was established in
Washington with a capital of $160,000. From then on the movement
developed rapidly. Even in the depression year of 1921 the American
Montana Restricts Private Banks in Loans on Realty Federation of Labor unions entered the movement.and 10 labor banks were
—State Attorney General Rules They Are Bound established by the end of 1922. Four years later there were 36 such banks
than $126.500.000. FurtherBy Same Rules Governing Incorporated Institu- in existence, with aggregate resources of more June 30 1920,to $109,000,000
more, deposits had increased from $697,243 on
on June 30 1926.
terminations began to exceed initiations of labor
Private banks in Montana are subject to the same pro- banks, and awith 1926downward trend became evident. Altogether 17
visions of law in regard to loans against real estate security, labor banks have been terminated. Six of these terminations were due due to
and the period of time that real estate acquired by them failure, and 10 resulted from the selling of the stock to non-labor interests
under labor control had
can be held, as are the incorporated banks in the State of (although in most of the latter cases operation the 22 banks in existence
been unprofitable). On June 31 of the current year,
Montana, according to an opinion of L. A. Foot, Attorney- showed deposits aggregating 692,078,000, capital of $6,687,500, and surplus
General, given Dec. 7 at the request of A. J. Lochrie, Super- and undivided profits of $3,807,580.
The chief purpose behind the organization of labor banking was that of
intendent of Banks. The United States Daily in Helena business profits. Aside from this, it was felt that a labor bank with its own
advices Dec. 18, published in its issue of Dec.20,reports this, advisers would be in the best capacity to invest the growing funds of the
and would, among other things, be more sympathetic than
and gives as follows the full text of the Attorney-General's various unions; bankers to the need for credit among various labor movethe open-shop
From a banking standpoint these purposes have not always been crowned
My Dear Mr. Lochrie I have your letter of the 20th instant, in which
you inquire whether or not a private bank must comply with section 25 of with success. Average yearly returns to stockholders of all labor banks, tor
chapter 89 of the Laws of 1927. which prohibits banks from holding real example, have never been altogether favorable. Starting off with a rash
estate longer than five years from the date of its acquisition when it is that hoisted dividend rates to 6.18 in 1922. interest fell off to the low of 1.7
acquired by conveyance to it in satisfaction of debts previously contracted in 1924, although in the latter year many new non-paying banks brought

A bill to prohibit any bank or trust company from furnishing legal information or advice on a number of matters now allowable under the law was
filed Dec. 1() with the Clerk of the Massachusetts Senate by Senator Frank
Hurley. of Holyoke.
The proposed measure would strike out part of a section of the general
laws which at present do not prevent "any bank or trust company lawfully
doing business in the Commonwealth from furnishing to persons with whom
it may deal or who may apply for the same, through its officers or agents,
legal information or legal advice with respect to investments, taxation
or an issue or offering for sale of stocks, bonds, notes or other securities or
The new bill reads as follows:
"No corporation shall practice or appear as attorney for any person
other than itself in any court in the Commonwealth, or before any judicial
body or hold itself out to the public or advertise as being entitled to Practice law, and no corporation shall draw agreements, or other legal documents not relating to 1 awful business, or draw wills or practice law, or
give legal advice or legal information, or hold itself out in any manner
as being entitled to do any of the foregoing acts, by or through any person orally or by advertisement, letter or circular: provided, that the foregoing shall not prevent a corporation from employing an attorney in regard
to its own affairs or in any litigation to which it is or may be a Party.
Any corporation violating this section shall be punished by a fine of not
more than $1,000; and every officer, agent or employee of such corporation, who, in behalf of the same, directly or indirectly, engages in any
of the acts heroin prohibited, or assists such corporation to do such prohibited acts, shall be punished by a fine of not more than $500."



down the average. Only in 1928, after every bank bad been in existence at
least two years, and one-half the banks were on a dividend paying basis,
did the indicated return again exceed 3%.
Hooever, the results cited above are hardly fair to the more stable units
in the movement. Many ofthe labor bankssustaining heavy losses suspended
operations altogether,and meanwidie offset the highly satisfactory results of
banks that continued to operate on a steadily stable keel. Thus, if only
the continuing labor banks are considered, the yearly return to stockholders
on paid-in investment would average well above 3.5 for the past eight years.
For this reason, the decline in the labor banking movement since 1928
Is not altogether an unfavorable sign. It has meant for one thing the
weeding out of weaker units in the field, and the survival of a few well
established banks that may operate unhampered by the prejudice and
distrust attached to less successful enterprises in the movement. While the
number of banks has decreased 38% since 1926, total resources have declined only 14% and deposits by a similar amount. Labor has won a deservedly permanent place in the progress of banking in this country, but it is
probable that expansion in the future vrill be on a far slower scale than it has
been in the past 10 years.

Compilation Showing More Than 3,600 Women Officers
In Banks In United States.
The number of women officers of banks in the United
States totals well over 3,600, according to the Institute of
Women's Professional Relations, a research organization
affiliated with the American Association of University
Women, which is making a detailed study of the work of
women in responsible positions in banks. In making this
showing, the Institute says:

[VOL. 129.

taken place during the latter months of 1929 has simply served to repeat
the-old lesson that sound progress cannot be made too rapidly. The march
of progress cannot be speeded up by the impatience of those who wish to
arrive ahead of the procession."

In closing, the review expresses the belief that the usual
relationship between bond and stock financing will probably
be resumed in 1930, saying:
"Ordinarily, the public financing of corporations has been accomplished
to a larger extent through bonds than through stock issues. The value of
stock offerings during 1929 was very much greater than that of bond and
note issues. Judging from the trends which were in evidence during the
latter months of the year, it seems probable that the two types of
financing will return to something more like their usual relationship
in 1930."

Two Banking Law Reports to Urge Many Changes—
New York Legislative Committee Will Make Recommendations to Governor Independently.
Two reports, instead of one, on the need for revision of the
State Banking Law will be in the hands of Governor Roosevelt just after Jan. 1, it was learned on Dec. 25 says the
New York "Herald Tribune" of Dec. 26 from which we also
take the following:

A spokesman for the Joint Legislative Committee on Banking, which
has been holding public hearings since last August,disclosed that it intended
to submit recommendations independently of the special Commission of
Bankers appointed by the Governor last summer to study the suggestions
Figures based on an analysis of the official listings as given in Rand contained in the report of Robert S. Moses, Moreland Act Commissioner
In the City Trust Co. investigation.
McNaily's Bankers' Directory, issue of January 1929, show over 2,800
When he named his Special Commission the Governor invited the Chairwomen assistant cashiers, while more than 280 cashiers, 195 Vice-Presidents,
and 75 Presidents are women. There are at least 70 women holding the men of the Banking Committees of both houses of the Legislature to sit with
title of Assistant Secretary, 57 Assistant Treasurers, and 11 with the it. This the Legislative Chairmen have done, but at the same time they
combined title, while women secretaries of banks or trust companies have carried on their own independent investigation and are preparing
number more than 27, Treasurers, 12, and three women carry the com- an independent report.
It was forecast yesterday that the two reports would be far from agreebined title of Secretary and Treasurer. Trust Officer is an unusual office
for a woman to hold, yet there are at least six women who have won that ment as to what is wrong with the Banking Law and as to the remedies.
The Governor's Commission of bankers, it was learned, has been greatly
appointment, while 28 women hold the office of Assistant Trust Officer.
Impressed with the suggestions contained in the Moses report, but the joint
Other offices including that of Chairman of the Board of Directors (at
Legislative Committee is expected to meet them critically.
least six in number) are held by women in small numbers.
These figures are definitely ascertained minimums. Many women use
Moses Report Based on City Trust.
initials instead of the full name, and were, therefore, not included in this
Mr. Moses' report was based upon the findings in his investigation of the
count. Names used by both men and women, such as "Marion," were also
Department of Banking in relation to the failure of the City Trust Co.
omitted, as the effort in this particular analysis was to arrive at definite
• Mr. Moses found that the State Banking Department, under the adfigures, however limited.
ministration of Frank H. Warder, former Superintendent, who was conViewed from the standpoint of geographical distribution, these figures victed
of accepting a bribe while in office, had become demoralized and
Indicate that women have won the fullest official recognition in the
needed complete reorganization. The first step, Mr. Moses suggested.
Middle West. In this respect Illinois leads the entire country, with over should be
tho grading of examiners and a substantial upward revision of
380 women bank officers listed in the Blue Book. Missouri, Kansas, their salaries.
Indiana, Texas and Iowa follow in the order named, with over 200. Ohio,
His Recommendations.
Wisconsin, Nebraska, Michigan, Minnesota and Oklahoma have over 100,
Other recommendations made by Mr. Moses were:
while California, Pennsylvania and New York rank with Arkansas and
That the jurisdiction of the Banking Department be extended to every
Tennessee in the nineties.
banking institution, whether organized under state or Federal laws, and
Ranking the 48 States according to population, total bank deposits, total to private banks.
That all savings and thrift accounts in banks other than savings banks
number of bank officers (both men and women) and number of women
bank officers, some interesting situations are indicated. Space does not should be subject to the laws governing investment by savings banks.
The failure of the City Trust Company would have been impossible if the
permit the use of the lull table here, but the relative positions of the greater part of its deposits had not been in the form of savings and thrift
accounts, Mr. Moses said.
larger States in the various categories are interesting:
That upon directors should be imposed the statutory duty, supported
Ranking of Ten States According to Their Position Among the 48 Stales in the Pour by criminal as well as civil penalties, to diligently and honestly administer
the affairs of the bank.
Categories of Population, Total Bank Deposits, Total Number of
Bank Officers, and Number of Women Bank Officers.
Would Enforce Loan Supervision.
That the Chairman of the
Bank Officers. Rank Officers. loans are actually passed uponBoard of directors should see to it that all
at regular meetings of the Board.
New York
That every prospective bank director should be personally interviewed
by the Banking Department before being allowed to assume the duties of a
That persons holding the office of judge or district attorney or any similar
position should not be permitted to be directors of banks.
That there should be a statutory duty upon the secretary of the board
to preserve minutes of the board of directors, with a penalty if they are
not preserved.
That there should be more stringent provision against the borrowing of
New Jersey
money by officers of banks through allied corporations and against the
payment of extra compensation to officers by allied companies.
How closely the reports to be submitted to Governor Roosevelt will
Bond Market in Exceptionally Satisfactory Condition, follow the recommendations in Mr. Moses' report could not be learned
with precision, as the drafts have not been completed. It was learned.
According to Halsey, Stuart 8c Co.
however, that the special commission considers the weight of testimony
The bend market, as the new year nears, is in an excep- adduced as favorable to many of the Moses suggestions, while the legislative committee takes the opposite view.

satisfactory condition, according to the quarterly
review of Halsey, Stuart & Co. There are very few large
issues in the market that still remain to be absorbed, and
dealers have kept their inventories low. Consequently, the
review points out, new offerings which are made in the
early months of 1930 will not compete with any large amount
of undigested bonds. If an active demand arises in the
early part of the yeair, on the other hand, the review expresses the belief that it will in all probability quickly
clean up the best values still remaining. Commenting on
the present situation, the review says:
"The last two months of the old year have seen the market for most
classes of bonds growing gradually stronger. Lower money rates and the
decline of speculative interest have been the principal factors in directing
attention toward the attractive values in the bond market. It is interesting
to note that most of the buying has come from institutions and the most
expert class of buyers. The situation is still such, however, that it is
possible to obtain many bonds which offer attractive combinations of
security, liberal income and other desirable features."

Discussing the business situation, the review says:
From a long-range viewpoint, there can be little question that
American industry and business is moving toward a greater future than
anything we have yet seen. The past decade has brought the American
people more wealth, opportunities, and advantages than have been enjoyed
by the people of any other nation, and it may be regarded as a certainty
that the years ahead will see progress on a still broader scale. What has

Private Banks Oppose Supervision.
A majority of the banking fraternity, in the opinion of the Joint Legislative Committee, is opposed to at least two of Mr. Moses'important recommendations. -The bankers are not in favor, it is said, of placing thrift and
savings accounts in commercial banks under the same laws as those governing such accounts in savings banks. There is also considerable opposition
to placing private banks under the jurisdiction of the Banking Department.
George V. McLaughlin, Mr. Warder's predecessor as head of the Banking
Department, was one of the most outspoken of the critics who testified
against the Moses report before the Joint Legislative Committee.
Mr. McLaughlin said,in effect, that the banking law was substantially all
right as it is. He said no law could be devised which would guarantee a
bank against the dishonesty of officials.
Mr. McLaughlin specifically opposed penalizing bank directors for failing
to do their duty, pointing out that an honest bank director will perform his
duty without compulsion of law and that no law could compel a dishonest
director to do his duty.
The former Bank Superintendent also opposed the suggestion that thrift
accounts in State banks should be subjected to the same regulations an accounts in savings banks. Moreover, he objected to hampering private
banks or to placing restrictions upon the sale of securities. Private banks.
he said,fall into two classes, those which are as sound as any regulated bank
and those which do not deserve the confidence of the public. lie contended
It was up to the public to discriminate between the two.
Will Recommend Changes.
It Is certain, however, that the Joint Legislative Committee will recommend changes in the Banking Law,although recommendations probably will
not coincide with those recommended by the Governor's Commission in all

DEC. 28 1929.]



The Joint Legislative Committee is headed by Assemblyman Nelson W. volume of credit of reporting member banks declined by
Cheney, Republican,of Erie County,and Senator W.W.Campbell, Repub- $1,000,000,000, but at the end of this period it still stood
lican, of Niagara County.
a year ago. The Board
The Chairman of the Governor's Commission is George W. Davidson, $1,250,000,000 above the level of
President of the Central Hanover Bank and Trust Company. The other further says "demand for Reserve Bank credit increases in
members are: Howard Blase', of Buffalo, President of the Manufacturers December in response largely to increased currency requireand Traders People's Trust Company; Darwin R. James. President of the
East River Savings Bank; Russel C. Leffingwell, member of J. P. Morgan ments of the holiday season. The Board adds:
& Co., and formerly Assistant Secretary of the Treasury; Ray Morris, of
The Reserve banks this year enter upon the season of maximum demand
Brown Brothers & Co.; William H.Wood'''. President of the American Car for Reserve bank credit with the volume of their credit outstanding smaller
and Foundry Company; Henry W. Pollok, Vice-President of the Bank of than at the same period of 1928 and with a reserve position stronger than a
United States,and formerly State Senator, and Jesse Isidor Straus,of R. H. year ago.
Macy & Co.
The general credit situation has been improved by the liquidation of a
large volume of security loans, and the banking system of the country lain
position to meet such seasonal demands upon it as will arise in the next
New Directors of Branches of Federal Reserve Bank of
few weeks without any considerable firming of money rates to trade and
St. Louis.

According to announcement of Rolla Wells, Chairman of
the Board of the Federal Reserve Bank of St. Louis, at a
meeting held Dec. 18, the directors of the parent bank
elected the following branch directors to succeed those
appointed by it whose terms expire at the end of this yar:
For Louisville Branch—Eugene E. Hoge, Frankfort, Ky., for three years,
and W. P. Kincheloe, Louisville, for one year.
For Memphis Branch—William White, Memphis, Tenn., for three years,
and W. H. Glasgow, Memphis for one year.
For Little Rock Branch—Stuart Wilson, Texarkana, Ark., for three
years, and A. F. Bailey, Little Rock, for one year.

The Federal Reserve Board has appointed the following
branch directors to succeed its appointees whose terms expire at the end of this year:
For Louisville Branch—William Black, Louisville, Ky.
For Memphis Branch—William Orgill, Memphis, Tenn.
For Little Rock Branch—Gordon H. Campbell, Little Rock, Ark.
Each has been appointed for a three-year term beginning Jan. 1 1930.

The Board's comments are given herewith in full:
Changes at New York Banks.
In November changes in the banking position were largely in the nature
of readjustment accompanying and following the drop in security prices.
Since it was chiefly at the member banks in New York City'that the changes
occurred, the course of events can best be described by reference to figures
for these banks alone. During the week ending Oct. 30 loans and investments of these banks had increased by $1,400,000,000 largely because they
had taken over a large part of the loans in the call loan market which had
previously been made by out-of-town banks and non-banking lenders, as
these lenders withdrew funds from the market. As the liquidation of
brokers' loans continued in November, however, it was reflected in a reduction of security loans by the New York banks for their own account.
Changes ill the position of the New York banks during the week ending
-week period
Oct. 30, during the four weeks following, and for the entire 5
are shown in the following‘&.ble:
[In millions of dollars]

The Board of Directors of each branch consists of seven
members,four of whom are appointed by the parent Federal
Reserve Bank in St. Louis, and three by the Federal Reserve
Board in Washington. Th Managing Director is elected
annually, but the other six directors serve for terms of three
years each.

oa. 23 to Oct. 30 to OeI. 23 to
Oct. 30'29. Nov. 27 '29. Nov. 27 '29.
Loans and investments
Loans on securities
To brokers
To others
All other loans
Reserves with Federal Reserve Bank
Borrowings from Federal Reserve Bank




Federal Reserve Board Interprets Anew Provision of
During the week ending Oct. 30 the New York banks took over $1,200
which about $1,000.000.000 were lonas to
Reserve Act Governing Eligibility of Bankers' 000,000 of security loans, of
brokers and $200.000,000loans to others;in the following four weeks brokers
Acceptances Drawn to Finance Domestic Ship- loans of New York banks were liquidated lathe amount of $1.240,000.000
but their other security loans increased further, and there was also a con
siderable growth in their other loans, including loans for commercial purThe Federal Reserve Board makes public, in its December poses, and in their investments. Asa consequence,at the end of the 5-week
eligible for acceptance by a Period the New York banks' security loans to brokers were considerably
Bulletin, a ruling that a draft
member bank when it has a maturity consistent with the usual smaller than at the beginning, while their other loans, both on securities
and otherwise, as well as their investments, had increased, so that the
and customary credit time prevailing in the particular busi- total volume of their credit showed a growth of $570,000,000 and was at a
ness, provided that all other relevant requirements of the law higher level than at any time prior to Oct. 30 of this year.
loans and investments was not
This growth in the
and of the Board's regulations are complied with." The accompanied,however,New York banks' their indebtedness at the Federal
by any increase in
Board's ruling follows:
Reserve Bank, as the reserve funds needed to meet the increase in their
reserve requirements, arising from the growth in their deposit liabilities,
Law Department.
were supplied through security purchases by the Reserve Banks. The
Maturity of Bankers' Acceptances Drawn to Finance Domestic ShipMents.
relatively low level of indebtedness of the New York banks was a factor
The Federal Reserve Board has had under consideration the question In the decline in open market rates for money which characterized the
whether drafts drawn in accordance with the following facts are eligible for period. The reserve banks' buying rates for bills were reduced gradually
to a range of 4 to 43%. and the discount
acceptance by member banks under the privisions of section 13 of the Federal from.a range of S% to 5
rate at the New York bank was reduced from 6 to 5% on Nov. 1 and to
reserve act:
A firm in New York City purchases certain staples from a seller in a 4% on Nov. 15. Discount rates at the Boston, Chicago. Atlanta. and
western city who ships the same and draws a sight draft on the purchaser in San Francisco reserve banks were also reduced from 5 to 454%•
New York with bill of lading attached. This draft and bill of lading atBanks Outside New York.
tached are sent in the customary way to a bank in New York, Bank A,
Outside New York City there was also during this period an increased
-day bill on Bank
designated by the purchaser. The latter then draws a 90
for loans on securities and for other loans. This demand was
A, which is accepted by the bank, having at the time in its possession the demand both
obtained in part through the withdrawal by the
bill of lading covering the staples in process of shipment. The acceptance met by the use of funds
lowns from the security market, and in part through
is then discounted by the purchaser and the proceeds used to pay the sight out-of-town banks of
sale of investments, with the consequence that total loans and
draft and to obtain the release of the bill of lading. It does not require 90 the further
of member banks in leading cities outside New York showed
days for the completion of the shipment of goods, only a relatively short investment
period. At the end of the period the volume of security
time being necessary for this purpose. It was recommended to the Federal little change for the
to their own customers continued at a high level
Reserve Board that the bill drawn by the purchaser be considered eligible loans by member banks
banks and at banks outside New York City, while
for acceptance by Bank A when it has a maturity consistent with the usual both at New York City
the volume of open-market loans by banks to brokers in New York City
and customary credit time prevailing in the particular business.
time since Jan. 6 1926, when figures on loans to
After a careful consideration of this question the Federal Reserve Board was smaller than at any
has ruled that a draft drawn by the purchaser of goods in accordance with brokers first became
Brokers' Loans.
the facts above stated is eligible for acceptance by a member bank when it
has a maturity consistent with the usual and customary credit time prevailThis decline in the volume of funds loaned by banks to brokers in New
ing in the particular business, provided that all other relvant requirements York City accompanied an even greater liquidation of brokers'loans for the
of the law and of the board's regulations are complied with. Under the facts account of non-banking lenders, with the consequence that on Nov. 27
stated the accepting bank has possession of the bill oflading at the time of the total loans to brokers and dealers at $3.450.000.000 were reduced by oneacceptance of the draft drawn upon it, and this Is believed to be a substantial half as compared with their October peak and were approximately at the
compliance with the requirement of the law that shipping documents con- same level as two years earlier. About 60% of this decrease occurred in
veying or securing title be attached at the time of acceptance.
loans for the account of non-banking lenders and 40% in loans reported as
The ruling of the Federal Reserve Board set forth above may be in some for account of member and non-member banks. The accompanying table
respects inconsistent with previous rulings of the board to the effect that shows changes in the volume of the differnet classes of brokers' loans from
bankers' acceptance credits should not be used for the purpose of furnishing Jan.6 1926. when the reporting service began, to Oct. 23 1929, and for the
working capital. (See,for example,1920 Federal Reserve Bulletin. p. 1301: subsequent 5
-week period.
1923 Federal Reserve Bulletin, p. 158.) Such previous rulings of the board
regard to working capital may accordingly be regarded as superseded BROKERS' LOANS PLACED YORK CITY.
or qualified by the ruling contained herein to the extent of any such in[In millions of dollars
consistencies, but no further.

Federal Reserve Board on Bank Credit in 1929—Volume
More Than Billion in Excess of Year Ago.
In its December Bulletin the Federal Reserve Board,

besides reviewing the banking position in November discusses the situation as to bank credit in 1929 and notes the
increase since June in the volume of credit. In the four
weeks between Oct. 30 and Nov. 27, says the Board, the

Oct. 23
1929 to
Nov. 27

1926 to
Nor. 27

Total loans to brokers..__ 3,141 6,634 3,450 +3,493 —3,184
2,577 2,810 1,469
+233 —1,341
For banks, total
1,338 1,077
For own account
+494 —1,095
For out-of-town banks. 1,239 1,733
564 3.823 1.982 +3.259 —mum
Vnr others
•Includes an indeterminate amount for customers of these banks.

-1_ 1 els

Jan. 6 Oct. 23 Nov. 27 Jan.6
1926. 1929. 1929. 192610
Oct. 23



[Vol.. 129.

The table brings out the fact that total brokers' loans, which had in- security
loans still showed a large growth during the past year. The growth
creased by $3,500,000,000 between Jan. 6 1926, and Oct. 23 1929, declined was not in loans
to brokers, however, but in security loans to others, chiefly
by 33,200.000,000 in the following five weks, so that the increase for the customers who had
transferred their borrowings from brokers directly to
entire period of nearly four years was only $300,000,000. Loans by New the banks.
All other loans have shown a constant growth beginning with
York banks for their own account on Oct. 23 1929, were $260,000.000 lower February
of this year and have increased even more rapidly during the past
than at the beginning of the reports and declined by another $245,000,000 month. The growth
since the middle of October which has amounted to
In the following five weeks, while loans for account of out-of-town banks about
$300,000,000, has been contrary to the usual seasonal trend and has
on Oct. 23 1929, were $500,000,000 above their January 1926. level, but
not been altogether in loans for commercial purposes but has included a
declined by $1.100,000,000 in the next five weeks. In the aggregate loans variety of lending and investing operations,
some of which may have been
by banks, which in the third week of October of this year had been $230.- Indirectly
related to the large changes in the volume of security loans.
000,000 above the level of Jan. 6 1926, were on Nov. 27 $1,100,000,000 Furthermore,
the relative abundance of funds at banks in New York City,
below that level. The largest changes had occurred in the volume of loans where most of the
increase has occurred, has resulted in the purchase by the
for account of non-banking lenders. These loans had increased by $3,260,- banks of
acceptances and other Paper in the open market.
000,000 between Jan. 6 1926, and Oct. 23 1929, and decreased by $1,840,Discounts in New York and Outside.
000,000 in the following five weeks. After this decrease, however, they
were still 31,420,000,000 higher than at the time the reporting service
The easy condition of the money market in New York has been associated
began. Expressed in terms of percentage, loans by non-banking lenders with a low level of indebtedness of the New York City banks at the Reserve
constituted on Jan. 6 1926, about 18%, and on Oct. 23 1929, about 57% Bank, while outside banks have had a relatively large volume of discounts
of total brokers' loans; after the recent liquidation the proportion remained with the Reserve Banks. The chart shows discounts by the Federal RePractically unchanged, indicating that while the growth in brokers' loans serve banks for banks in New York City, in other leading cities, and outduring the past four years had been largely in loans by non-banking lenders, side of these cities. Member banks in New York City at the end of Novemthe liquidation during the five weeks after the middle of October of this ber had a lower volume of inaebtedness than at any other time in the past
year was in approximately the same proportion for loans by banks and by two years, while borrowings by banks in other leading cities were at a high
other lenders.
level. Borrowings of banks outside leading cities, which have their usual
Too little time has elapsed as yet since the end of October to make possible seasonal peak in midsummer, increased in November, contrary to usual
a comprehensive appraisal of the effects of the drop in security prices on seasonal trends, and were at the end of that month close to the highest
the banking situation. The diminution in the demand for credit from the figure in recent years.
security market has resulted in a decline of money rates. Although there
The system's holdings of Government securities increased by $190,000,000
has been an increase in the volume of bank credit, as the banks have taken between Oct. 23 and Nov. 27, the growth occurring for the most part
over loans of non-banking lenders, the total volume of funds used in the the first week of the period, when reserve requirements of member banks
security market has decreased by a large amount, and the general credit increased as a consequence of their taking over of a large volume of loans
of non-banking lenders. Acceptance holdings, on the other hand, declined
situation has been improved by the liquidation of these security loans.
by about $120,000,000 during the period, owing chiefly to the fact that
Security Issues.
easy conditions in the money market resulted in increased purchases of
As has been frequently pointed out, the growth of brokers' loans since acceptances by
banks and other investors.
1926 and their recent decline has corresponded closely to the course of
security prices. An additional factor in the trend of brokers' loans, howStrong Banking Position.
ever, has been the greatly increased volume of capital issues, since the
Demand for Reserve Bank credit increases in December in
flotation of securities involves the use of bank credit by the issuing houses largely to increased currency requirements
of the holiday season. The
during the period when the securities are being distributed to investors. Reserve Banks this year enter upon
the season of maximum demand for
Purchasers of these new ISSUES through brokerage houses are also likely to Reserve Bank credit with the volume
of their credit outstanding smaller
carry a part of the purchase price on credit, causing the brokers to increase than at the same period of 1928
and with a reserve position stronger than
their borrowings from the banks. The following table shows the volume a year ago. The general credit situation
has been improved by the liquidaof domestic corporate issues of securities for each year from 1924 to 1928 tion of a large volume of security
loans, and the banking system of the
and also for the 10 months ending October 1928 and 1929.
country is in position to meet such seasonal demands upon it as will arise
in the next few weeks without considerable firming of money rates to trade
and industry.
[in millions of dollars]



utilities menufacturice.

Land, (includbuild- OW inings,

10 months, Oct.:
•From "Commercial and Financial Chronicle." Exclusive of refunding Issues.
During the first 10 months of this year new domest ce capital issues
amounted to $8,130,000,000, compared with $6,015,000,000 for the whole
of last year and smaller amounts for previous years. An analysis of this
Increase in capital issues over the corresponding period of last year shows
that there has been a growth in financing by railroads, public utilities, and
mining and manufacturing industries, while the financing of land and buildings has been on a somewhat smaller scale. The largest change, however,
has been in the securities grouped under the heading "Miscellaneous."
This group of securities, the issues of which amounted to $1,000,000,000
in the first 10 months of 1928, absorbed $3,400,000,000 of funds in the
first 10 months of 1929. This group includes the capital stock issued by
investment trusts and trading companies, which increased at a rapid rate
in the present year. These issues of investment
-trust securities, which were
the principal single factor of growth in total security issues in 1929, particularly in the later months, were also an important source of brokers'
loans for account of non-banking lenders, since the trusts, having obtained
funds from the public through the sales of their own securities, used portions
of these funds in the call loan market, where high rates of interest prevailed
In the early autumn of this year. When security prices declined toward
the end of October, Investment trusts withdrew some of their funds from
the call-loan market and utilized them in the purchase of securities at the
prevailing lower level of prices. Thus during the past year the growth and
operations of investment trusts have been an important contributing factor
In the rise and subsequent decline of brokers' loans.
Bank Credit in 1929.
Reviewing briefly the course of bank credit in the country as a whole
during the year ending in November, as has been customary in recent years
in the Federal Reserve Bulletin for December, it appears that the early
part of 1929, Just as the larger part of 1928, was characterized by firm
money conditions and the absence of growth of member-bank credit, so
that in May of the present year total loans and investments of member banks
In leading cities were somewhat lower than a year earlier. Beginning with
June of this year, however, the volume of bank credit increased raPidlY,
and on Oct. 23, the last report date prior to the taking over by the banks
of a large volume of loans by non-banking lenders, the volume of credit of
the weekly reporting member banks was about $1,000,000,000 above the
level of the corresponding date a year ago. This growth of $1,000,000,000
represented the net result of an increase in security loans and of a continuous
growth in other loans, offset in part by a liquidation of investments. In
the following week, that ending on Oct. 30, loans and investments of rePorting member banks increased by more than $1,500,000,000, as the banks
took over loans of non-banking lenders; in the four weeks between Oct. 30
and Nov.27,the volume of credit of these banks declined by $1,100,000,000,
but at the end of this period it still stood about $1,250,000,000 above the
level of a year ago.
Loans on Securities and "All Other."
Two charts are here introduced showing the course of security loans and
of other loans by reporting member banks in leading cities for the past three
years. The first chart brings out the fact that after the recent liquidation

Amendment to Federal Reserve'Act Proposed by Governor Harding of Boston Federal Reserve Bank to
Permit Larger Distribution of Earnings to Member
The Federal Reserve Bank of Boston would be able to
distribute on Dec. 30 to the stockholding member banks
of the Boston Federal Reserve District approximately
$1,500,000 instead of the $300,000 semi-annual dividend provided for in present law, if the Rederal Reserve Act were
amended as advocated by the stockholders of the bank.
That statement, says the "United States Daily," was made
at a recent meeting of the member banks of the district by
William P. G. Harding, Governor of the Bank and a former
Governor of the Federal Reserve Board.
Two items bearing on the suggestion appeared on page
3107 of our issue of Nov. 16. The account from the "United
States Daily," from which we quote, appeared in its Dec. 20
edition, and in addition to the portion quoted above, it said:
Mr. Harding urged that the law be amended so that member banks could
share more extensively in the earnings of the Reserve Banks than they do at
present. He also stated the law should be amended to provide that in the
event of dissolution or liquidation of a Reserve Bank, the accumulated
earned surplus should be divided among the stockholders instead of going
to the United States Government. He pointed out that if the Boston
Reserve Bank were to be liquidated, in its present condition and under
present law, the member bank shareholders would receive only the
$10,800,000 of capital subscribed and paid in by them, whereas the United
States Government would benefit to the extent of $20,000,000, the amount
of the earned surplus.
"That money, that surplus, belongs to you," Mr. Harding stated. "It
has been made with money furnished by you, and it has been made
principally by transactions which this bank had with you. That fund is
the result of members dealing with this bank."
The meeting passed resolutions petitioning Congress to amend the Fed.
era) Reserve Act to provide that "in the event of the dissolution or liquidation of a Federal Reserve Bank, any surplus remaining atter the payment
of all debts and obligations of every description shall be distributed
among the stockholding member banks in proportion to the capital stock
held by each of them in such Federal Reserve Bank," and to provide
further that "after expenses have been paid or provided for and a 6%
cumulative dividend has been paid to stockholders, the remaining net
earnings of each Federal Reserve Bank shall be distributed as follows:
25% of such earnings to the United States as a franchise tax, 50% of such
earnings to member banks, and 25% of such earnings to the surplus of
such Federal Reserve Bank, until such surplus shall amount to 100% of
the subscribed capital of such Federal Reserve Bank, any portion of such
25% which shall not be needed for the creation of such 100% surplus to
be distributed to the member banks."
Excerpts from Mr. Harding's address follow:
New England Banks Pay More on Deposits.
I have noticed a sort of a feeling of unrest on the part of some of our
member banks, due to what they term the expense of membership in the
system. I take it the banks of New England may have to pay more on their
deposits than banks in other sections. Now, the member banks know that
the Reserve balances which They carry with the Federal Reserve Bank
yield them no interest. If those balances were carried with other banks
they would get interest. They inquire why it is that the Federal Reserve
Bank cannot pay them interest. I will tell you.

Dm. 28 1929.]



to the required amount and
It is because this bank is a Reserve Bank. You carry, on an average, dends was not enough to build up its surplus
anything to the Government. The Federal
about 5% of all your deposits as a reserve with this bank. In the old consequently it did not pay
in the System„ made net earnings
days a National Bank located outside of a Reserve or Central Reserve city Reserve Bank of Minneapolis, smallest
it had a large surplus in proportion to its
had to carry 6% lawful money in its own vault, on which it got no of over $600,000 and, because
tax of $390,000 to the Government.
interest. You carry about 5% with the Federal Reserve Bank. It would capital, it paid a franchise
If this proposed amendment had been in effect last year, looking at it
take at least $3,000,000 a year for us to pay you 2% interest on your
the Government would have received from
Reserve deposits. Ordinarily that is more than we make. We have had an from the Government standpoint,
franchise tax of about $6,000,000 instead of
exceptionally good year this year, but our total net earnings this year the Federal Reserve Banks a
fact to bring to the attention of the
will hardly exceed $2,900,000, or $3,000,000. That includes a dividend $2,500,000. That is a pertinent
of about $600,000. After paying the dividend we would still be $600,000 Congress.
Remaining Assets Go to Government.
short of enough to pay you 6% interest on your Reserve deposits.
Now I want to refer again to that other provision of the Federal Reserve
In order to do that we would have to ask Congress to amend the law,
Bank, the
lose entirely our character as a Reserve Bank, and enter into competition Act which provides that, in the event of liquidation of a Reserve
with you. In other words, we might be placed in the position of saying member banks take the par value of the stock and get back their
we All the rest of the assets goes to the Government. Take the case of a
to your best customer, "Come here and borrow money direct from us;
in the
will lend you money at 4%." Do you want to lose 2% or 3% on your best bank that is considering •to-day whether or not it shall remain
paper for the sake of getting 2% interest on 5% of your deposits? Figure `System. Such a bank might say, "Our stock is worth three times what
we paid for it, but what is the use of staying in? All we are going to
it out and see how you stand.
get is the par value of it. The Government is going to get the rest."
Large Competing Bank Would Be Nuisance.
If this Act were amended as proposed in your resolutions, a member bank
What you want is a Reserve Bank, something you can call on in case of deciding to withdraw would be getting $50 per share (the paid-in subscripneed, and something that you can depend on and not a big competing bank, tion on each share of stock) for stock having an asset value of $150. By
which would- be a nuisance.
withdrawal it would accept one-third of the worth of the stock, abandoning
At the same time, there is a matter of gross injustice which member the other two-thirds to increase the equity of the fellow who stays in.
may call in a temperate way to the attention of the Federal Reserve If the proposed amendment were adopted, it would be an inducement to
Board and the Congress of the United States in the hope that they can the member bank to remain in the system, particularly if it knows there
get it remedied. The Government, as Senator Glass has pointed out, has is going to be an extra dividend from time to time.
not one dollar of proprietary interest in the Federal Reserve Bank. The
It seems to me that your whole proposal is equitable. It would not
Federal Reserve Bank belongs to its member banks. It is all right, of requirt the Reserve Bank to pay you 2% interest on your deposits or any
the Federal Reserve Banks should be under very strict Govern- rate of interest, but the Reserve Bank would be in a position to assure
course, that
mental regulation, but in other respects they are very much like the you an equitable division of any excess profits made. That, I think, is
National Banks. The National Banks operate under Government charters desirable.
and the Federal Reserve Bank operates under a Government charter; a
The Federal Reserve Bank of Boston has net earnings up to date, for
charter signed in each ease by the Comptroller of the Currency.
the year, of $2,602,000. Let us estimate that at the end of the year that
may have 6% cumulative dividends on your figure will be about $3,000,000, of which, as I outlined before, you already
The law provides that you
stock and requires your Federal Reserve Bank to build up its surplus have received about $300,000 and will receive as much more in dividends;
and when the surplus reaches a certain point, that is, after the surplus is a franchise tax would be paid to the Government, after carrying $1,800,000
equal to the subscribed capital or double the paid-in capital, the Govern- or more to surplus in order to bring our total surplus up to 100% of
ment gets 90% of all the rest of the earnings of the Federal Reserve Bank, subscribed capital or about $21,600,000. It does not make any difference
the remaining 10% going to surplus.
to us whether our surplus is $21,600,000 or $21,000,000. I merely want
Every dollar with which the Federal Reserve Bank operates, as to capital to point out that if the law were amended as suggested in your resolutions,
stock, and almost every dollar as to deposits, comes from the member banks. we could pay you on Dec. 31, instead of $300,000, approximately $1,500,000,
The Government deposits are small and temporary in character, and their which would represent the semi-annual dividend of $300,000 and $1,200,000
value is far more than offset by the actual out-of-pocket expense incurred besides. That would mean five times as much as you will receive for the
by the Federal Reserve Bank in acting as fiscal agent for the Government. second half year, under the present law, or, adding in the dividend already
Senator Glass has pointed out that the Government is tremendously cora- paid for the first half of the year, three times the present return on the
pensated for anything it may have done for the Federal Reserve Banks. stock for the year, while the payment to the Government as franchise tax
The earnings of the Federal Reserve Bank properly belong to you, and I would not be affected. It would be about $600,000 in either case.
believe if you stand up for your rights you are going to get them. I
know the banks in other sections of the country feel as you do, and there
are other sections that seem to have more political power than New Proposal That Federal Reserve Board Make Mortgages
More Liquid to Speed Building Construction Not
Can Be Dissolved Only by Act of Congress.
Well Received.
in the
There is another matter. The Federal Reserve Act provides that
event of liquidation of a Federal Reserve Bank, the member banks get back
In its issue of Dec.20 the "Wall Street Journal" announced
their deposits, they get back what they have paid in on the capital stock, the following from its Washington bureau:
something to make
and all the rest of the assets go to the Government of the United States.
The proposal that the Federal Reserve system do
Now, we have approximately $10,800,000 paid-in capital. This bank can mortgages more liquid in order to speed building construction in the United
appears contrary to the
be dissolved only by an Act of Congress or be liquidated for violation of law. States is not considered favorably here. The plan
It cannot be liquidated by vote of the stockholders.
very nature of mortgages and extraneous to the purpose of a central
It may continue in business as long as Congress permits; Congress could system.
the recent
put us out of business to-morrow. What I want to point out is this: In
Several such suggestions have been put forward following
public and private
the event of liquidation of this bank, you would get back approximately efforts of President Hoover to speed construction of both
announcement of the Associated General
$10,800,000. The Government of the United States would get about nature. The most recent Is the
recommendations which it will purpose
$20,000,000. That money, that surplus, belongs to you; it has been made Contractors of America that among
put into effect on behalf
with money furnished by you, and it ilea been made principally by for the United States Chamber of Commerce to
Board to reconsider
of business stabilization is one for the Federal Reserve
transactions which this bank had with you.
That fund is the result of members dealing with this bank. Now, I ask, the status of mortgages.
Would Status.
where is the justice of the great Government of the United States saying
effect upon all manuthat your share in the earnings of your own bank, every dollar of the
"The construction of homes has by far the greatest
a certain
inflated, restock of which is owned by you, shall be treated is that way, that
facturing and industry," a statement says. "This has been
carried to surplus regardless of whether the bank needs tarded and made the football of bad business through speculative interests.
amount shall be
the surplus or not, and that everything else shall go to the Government and This, In our judgment, is due to the fact that mortgages have not been
that in the event of liquidation, all the accumulated profits and surplus made liquid under the banidng system of the country, and we believe
shall go to the Government? I can not see it and I do not believe any that system has side-stepped the issue from time Immemorial up to the
Congressman can see it. I believe in the spirit of right and justice and I present. It has provided no proper appraisal methods to put mortgages in
the country than
believe that is recognized in the halls of Congress.
a liquid situation and no greater service could be rendered
Let us analyze this situation to-day. I estimate that we may have net for the Federal Reserve to take up this matter and dispose of it in the best
earnings of approximately $3,000,000 this year. We have already paid Interest of all the people. We shall recommend that the United States
you approximately $300,000 in dividends for the first six months of this Chamber of Commerce,through the proper committee, take up this matter
year. In addition, under the present law, you will get $300,000 more in with the Federal Reserve."
may not be done
dividends. We must, as the law stands, accumulate a surplus equal to
Expert opinion will make no forecast of what may or
100% of our subscribed capital, or $21,600,000 at this time. That means about the matter, especially if it comes up under political pressure,
of the
that we shall carry between $1,800,000 and $2,000,000 to surplus. There the general belief is that the proposal is contrary to the purposes
way to make mortis no occasion for carrying $2,000,000 more to surplus. Yet, under the Federal Reserve system. It is pointed out that the best
the soundness of
present law, when we pay you a semi-annual dividend of $300,000 on gage paper snore acceptable by the banks is to improve
has frequently
Dec. 31, we must carry at least $1,800,000 more to surplus and pay the each transaction, to make the paper itself worth more thaa
little about that.
remainder, or about $600,000, to the Government of the United States as a been the case in the past. Federal Reserve system can do
franchise tax. This estimate is, of course, based upon present capital and
Quick Salability Factor.
earnings, both of which may change before Dec. 31.
outside banks at
If it made mortgage paper eligible for rediscount by
might lead to banks'
Arrangements Regarding Surplus Works Unfairly.
member banks, as is proposed in some quarters, it
improve the fundataking on much more such paper, but this would not
This arrangement regarding the accumulation of surplus does not work
situation and might lead to difficulties.
The franchise tax paid to the Government mental
banking agencies
fairly even for the Government.
It is pointed out that the function of almost all central
depends primarily not only on the Reserve Bank's earnings but also on
do this only by handling
is to make credit as liquid as possible and that it can
the proportion of the Reserve Bank's surplus to its capital. If member Paper which is in itself comparatively liquid. This means the Reserve
banks increase their capital, the capital of the Federal Reserve Bank banks can maintain their function and position only by rediscounting shortand quickly
time paper, or paper on which the security is itself readily
What has been the history of this Government franchise tax? Up to salable. The commercial banking experience of the world points conthe Government of the United States has received as franchise clusively to the wisdom ofsuch a highly liquid condition,it has been pointed
Jan. 1 1929
tax from the Federal Reserve Banks $142,826,000, but those payments have out.
not been at all regular. In 1920 the banks paid the Government something
over $00,000,000; in 1921 they paid the Government something over
Rapid Retirement of Large Sized Paper Currency
$59,000,000; in 1922 and 1923 they fell off; in 1924 the banks all told
Ordered—Treasury to Accelerate Replacement of
in 1925 they paid the Government $59,000,
paid the Government $113,000;
year, although the total net earnings of the Federal Reserve Banks
and last
Old Currency, Beginning Jan. 2.
were over $32,000,000, the Government received a franchise tax of
From the Jan. 23 issue of the "United States Daily" we
$2,500,000, which was paid by the six smaller banks in the System.
Except for the year 1926, when it paid $45,000, the Federal Reserve Bank take the following:
Retirement of all United States notes, gold and silver certificates, and
of Boston has paid no franchise tax to the Government since 1923.
and including denominations of
Last year the net earnings of the Federal Reserve Bank of New York were Federal Reserve notes of the large size to
and small size currency, has been
over $11,000,000. The amount left after payment of $2,700,000 in divi- $50 and replacement of them by the new



ordered by the Department of the Treasury to begin
Jan. 2 1930, in instructions issued to the Federal Reserve Banks Dec. 21. The
operation will take place as fast as the large sized bills
reach the Federal
Reserve Banks and without consideration of the fitness of the currency
future circulation.
The retirement order does not affect the National bank notes.
will continue to be reissued in both size temporarily with
the expectation
that another two months will see a reserve of them built up that
large size
National bank notes also may be taken out of circulation.
In an oral statement by the Treasury, it was announced that
the production of the new currency was proceeding at a more rapid rate than
was anticipated several months ago. The responsible officials decided,
that the public should be relieved of the difficulty of handling two
types of
currency as far as was practicable.
While retirement of the notes means that some will be taken out of circulation that would serve for several months more, the Treasury was
represented as anxious to accomplish final transition from the old to the
type of bids with the utmost expedibion.

Treasury Department's Announcement Regarding
clusion of Treasury Bills as Collateral Security
Special Deposits of Public Moneys.


Under date of Dec. 15, the Treasury Department issued
the following circular calling attention to an amendment to
the provisions of the Department's circular of Oct. 1 1928,
governing collateral security for deposits of public moneys,
so as to include Treasury bills as collateral security therefor:
First Supplement to
Treasury Department,
Department Circular No.92
Office of the Secretary,
Washington, Dec. 15 1929.

[VOL. 129.

"Education" Seen Necessary.
These records were looked upon simply as proving that
the bankers
generally and the country banker in particular must be "educated"
to the
use and possibilities of insurance trust business.
There has been no announcement at the Treasury indicating
officials concerned with supervision of the National banks will
seek directly
to encourage National banks to take up the insurance business.
Pole's figures were compiled by his staff, whose duty is to
gather data on
general trust activities of the banks. Usually there is no disposition
the part of the Treasury to go further than to advise the banks on
of law and to see that the laws are observed.
Compilation of the figures, however, was regarded as most timely,
the whole National banking structure has been the subject lately of
scrutiny, because of the urge for new legislation.

Extracts from the annual report of the Comptroller of the
Currency were given in our issue of Dec. 21, pages 3863,3867, one paragraph therein stating:
Another phase of fiduciary activity which is gaining in popularity is
the creation of insurance trusts. While the administration of this
type of
trust is a comparatively recent development in National bank trust
departments, yet on June 29 1929, 118 National banks were administerin
271 insurance trusts representing the proceeds of insurance policies
aggregating $11,384,632. Some indication of the place this type of trust
make for itself in the future operations of National banks is evidenced
the fact that 558 trust departments now hold 9,505 trust agreements
name those banks trustees in the future of the proceeds of insurance
with a present face value of $375,524,409,an amount aggregating
more than
one-third of the total individual trust assets under administrati
on in 1926
by the 1,104 National bank trust departments then in operation.

Internal Revenue Bureau Calls Upon Employers To
Make Information Returns of Employees by Feb. 15
Instead of March 15.
Employers and other persons who have paid more than
$1,500 in wage incomes to employees or other persons as
fixed income during 1929 must make their information
returns to the Bureau of Internal Revenue not later than
Feb. 15. The notice was issued on Dec. 14 by the Bureau,
in view of the fact that this requires the filing of the information one month earlier than has been the case in
previous years.
These returns giving information from the source of
incomes actually paid out, the Bureau said, are the most
valuable check that the office uses in auditing the actual
income tax returns. Under date of Dec. 15 a Washington
dispatch to the New York "Journal of Commerce" stated:

Division of Deposits
To Federal Reserve Natnks and other banks and trust companies incorporated
under the laws of the United States or of any State*
Department Circular No.92,revised Oct. 1 1928,is hereby supplemente
to include Treasury bills as collateral security for deposits of public moneys
thereunder among the securities of the United States Government specified
in subparagraph (a) under the caption Collateral Security, so
that such
subparagraph will read as follows: '
'(a) Bonds, notes, certificates of indebtedness, and Treasury bills of the
United States Government of any issue, including interim certificates
receipts for payment therefor; at par for bonds, notes and certificaets,
face value in the case of Treasury bills."
Payment for Treasury bills may not be made by credit in War Loan Deposit Account, but must be made in cash or other funds that will be
immediately available on the specified payment date.
The returns are to be filed with the Collector of Internal Revenue for
the payer's district and are not to be addressed to the sorting section of
Secretary of the Treasury.
income tax unit at Washington, as heretofore. Forms are being sent
collectors for distribution.
"Under the 'information at source' provision of the Revenue Act person,
Insurance Trusts For Banks—Treasury Officials Re- making payment to another person of 'fixed or determinabl
e income' of
ported as Seeing National Banks Neglecting Golden $1,500 or more during any calendar year must make a return thereof,
If the recipient of such payment is single." the statement said.
"If the recipient is married, report need not be made if the payments
From the New York "Evening Post" of Dec. 26 we take aggregate less than $3,500. If the marital status of the payee is unknown to the payer, the payee is considered a single person for the purthe following credited to its staff correspondent at Washing- pose of filing an information return.
ton the same date:
"A separate return of information for each employee is required of
Treasury officials believe that the National banks of the country are employers. The requirement is not limited to periodical payments,but
a single payment must be reported.
overlooking an opportunity to broaden the scope of their activities and in"Information returns are required on Form 1099 and must be accomfluence and to increase their revenue, by their failure to cultivate the new
field of insurance trusts. While insurance trusts have been employed only panied by a letter of transmittal on Form 1096, which shows the number
In recent years, a study of their possibilities has convinced Treasury officials of returns filed.
"Information returns are carefully checked with the individual returns
that little effort is required on the part of the banks to develop this business
Into one of the greatest sources of income available to the banks under their of the taxpayer to whom the payments are made. Many delinquent
returns and additional revenue amounting to hundreds of thousands of
fiduciary powers.
The Department's views were made known in connection with publication dollars have been secured as a result of the examination of the information
of statistics compiled by John W. Pole, the Comptroller of the Currency, returns."
which show that trust departments of National banks alone, have accumulated trusteeships under some 9.000 insurance policies, whose present face United States Attorney-General Mitchell Asks Right
value aggregates around $385.000,000. When it is remembered that only
To Tax State or Municipal Bond Sale Profits—
about 10,000 such trusteeships are held by National banks, the importance
Appeals to Supreme Court Against Adverse Rulings
of the three-year growth becomes obvious.
Wide Influence Stressed.
In calling attention to this startling development in the banking business,
officials pointed out that the value of its result must be considered from two
angles. First, there is the relative assurance that as the proceeds of these
policies are paid into the hands of the trustee bank, its revenues will be correspondingly increased. Second, in the view of the officials, the phase that
Is really more important now, is the vastly expanded sphere of influence in
which the bank is operating when it is acting as a trustee.
With respect to the value of the influence, one official said that there was
so little prospect of immediate legislation to liberalize the National banking
statutes, that any new channel through which the National banks can gain
access to new business meant the difference between a position in which
"many banks will be holding their own or withering away" under the inroads of State bank competition. That expression was admittedly an
exaggeration, if employed generally, yet its sponsor declared that there were
instances where it was wholly true.
According to the statistics which Mr.Pole has compiled,the larger banks,
with their higher prices and better-trained executives, are getting proportionately the lion's share of the business, a fact which is not true of the
general trust business of the National banks.
The figures showed that,in so far as general trust activities are concerned,
the so-called country banks are able to accomplish just as much within their
limited areas, as are the stronger metropolitan banks.
Of the total of $385,000.000 represented in policies under which national
banks are trustees,some $12,000,000 already has been paid into the trustee
banks, which number 118. This sum came as proceeds from 271 policies.
Yet not a single one of these trusts was being administered by a bank with
the minimum of 325,000 capital,and only five of them were being handled by
banks with capital between $25,000 and $50,000. Banks with capital
ranging from $200,000 upward, however, were administering assets under
101 of these policies.

on Levy-Free Securities Case.
Attorney-General Mitchell has asked the United States
Supreme Court to rule upon the question as to whether
Congress can constitutionally impose a tax upon gains
derived from the sale at profit of State or municipal bonds,
the income from which is tax-free. In reporting this from
Washington Dee. 26, the New York "Times" adds:

The ruling was asked in the Government's appeal from decisions of
Minnesota Federal and Eighth District Court, which held against
Government and denied its application for authority to impose such a tax.
The case was brought originally by Charles W. Demi of Minnesota to
force the Government to refund to him an income tax imposed upon
total of $736 profits arising from sales of Minnesota county and municipal
bonds. Mr. I3enn won in both the lower and appellate Federal courts.
In its petition and brief to the Supreme Court, the Department
Justice asserts:
"The question whether the Federal Government may tax the
derived from the sale of municipal bonds by an individual is an
one, which has not been, but should be, settled by this Court. important
It is also stated that the Treasury Department has consistently
interpreted the revenue Acts as imposing an income tax upon such
gain, and
points out that the imposition of such tax does not involve the question
of a tax upon any State bond, and no attempt is being made
to tax the
bond itself nor the interst thereon paid by the State.
"Here, the transaction which gives rise to the imposition of the tax is
between individuals, and not between an individual and a State nor a
subdivision thereof," it is said.
The Department hold that, as the decision of the Circuit Court of
Appeals affects thousands of taxpayers, a review of tho judgment should
be made by the Supreme Court.

DEC. 28 1929.]


He intimated that the issue would finally be

were opposed to the idea.
Agricultural Tariff Rates Develop Clash in House— settled by a vote on a flat rate on imported sugar.
Corn Belt Plea for "Fair" Bill Draws Democratic
Some of the Republican and Democratic leaders are not so optimistic
as Senators Smoot and Borah over the chance of sending the bill to conChallenege to Line Up for Revision.
ference by Feb. 15. They foresee an extended debate when the sugar
The agricultural rates written into the tariff bill by the schedule comes up, and believe that the testimony developed by the Senate
Senate came up in the House on Dec. 20 and brought a chall- lobby committee will form the basis of the discussion.
The United States "Daily" of Dec. 24 in referring to the
enge from the Democrats to the Western Farm Belt Republicans to go on record for or against the revised schedules. This, tariff and other measures now before Congress, as well as to
according to the New York "Times", which in Washington action taken since the present.session was brought under way
Dec. 2 said:
advices Dec. 20, said:
The conflict was brought to a head when Representative Garner of Texas.
the Democratic floor leader, made a charge of "four-flushing" at the conclusion of a plea by Representative Ramseyer, Republican, of Iowa,for a
'just and fair" tariff measure.
Representative Ramseyer devoted the greater part of a thirty-minute
address to an attack on the rates in the House bill as they affect the farmer.
He said these rates must either be reduced by the Senate ot the conference
to be of any relief to agriculute. He advised farm organizations to fight for
reasonable rates on what the farmer buys as well as on what he sells.
Garner Demands Definite Stand.
"This apology for the Hawley bill is very significant," Representative
parner interposed. "I here and now ask the gentleman if he will assist me
in establishing the rates in the Senate bill."
"If they meet with my approval, I'll join with any ono," Representative
Ramseyer replied.
Representative Garner insisted upon an answer of"yes" or "no."
Representative Ramseyer said he could only answer that if the schedules
In the Senate bill suited him he would join with any one to help enact them
and would use every parliamentary means to that end.
"This is not a party question," Mr. Dowan added and this statement
roused representative Garner.
"You and others of your party who pretend to favor the farmer are simply
four-flushing," the Democratic leader declared. "You are always parading
before the farmer, declaring you want what the farmer wants but when
something comes up that presents a way to help you look for a way to get out.
"If your interest in your farmers is greater than your party loyalty, then
You will use every parliamentary means possible to get these rates.
"I amend my question to read: "If the Senate rates are preferable to
Western farmers, will you join with us or members of your own party in
doing everything possible to adopt them."
Representative Ramseyer still insisted that he was for a tariff "fair for
all." Representative Garner retorted with a charge that Representative
Ramseyer wanted to let the conference members adopt the Senate coalition
changes so that he would not have to bote for both the House bill and rates
as revised by the Senate.

When the wool schedule, now before the Senate, has been completed,
there will remain five rate schedules to be considered for Committee amendments. In this number is the controversial sugar schedule and the long
sundries section. With these out of the way,the Senate will be prepared to
review the rate schedules for floor amendments.
Measures Face Delay.
The Senate has received from the House two appropriation bills, the Intenor and Agriculture departmental measures, but has taken no action on
them. This also applies to the $230,000,000 public building program and
to the resolution creating a commission for a study of conditions in Haiti.
These matters, unless they can be disposed of by unanimous consent
within a short time, must await passage of the tariff.
One of the first tasks facing the Senate upon reconvening will be extraofficial. Numerous committee vacancies must be filled by the majority
conference. These involve two chairmanships, that of the Appropriations
Committee, which is to be filled by Senator Jones (Rep.), of Washington,
and of the Commerce Committee, which is to go to Senator Johnson (Rep.),
of California. In each instance the vacancy will be filled according to the
usual rules of senority.
The $160,00.000 income-tax cut is regarded by Senate leaders as the outstanding feature of congressional accomplishments during the pre-holiday
three weeks of the regular session. Also among the Senate's activities was
final dispostion of the Vero case and the seating of Joseph R. Grundy in
the Pennsylvania seat vacant since Mar. 4 1927.
At noon on Dec. 6, the fifth day of the second session, Senator-elect
William S. Vare, after speaking from the floor in his own behalf, was denied
the seat, by a vote of 58 to 22, on the ground of excessive primary campaign expenditures. A few minutes later the Senate decreed. 66 to115,
that William B. Wilson, who contested Mr. Vare's election, was not elected
either, thereby leaving the seat open to appointment.
Senator Grundy (Rep.), was appointed to the place and sworn inIDec.
12. His credentials have been referred to the Committee on Privileges7and
Eiections, together with a resolution (S. Res. 185) by Senator Nye (Rep.),
of North Dakota, which would deny his right to retain his seat. A report
favorable to Mr. Grundy is expected soon after the holidays, according to
majority leaders.
In addition to voting a reduction of 1% In the tax incomes of 1929.
the Senate joined the House in ratifying the Mellon-Berenger French.debt
settlement, in continuing the life of the Federal Radio Commission indefinitely, and in authorizing expenditures of $15,950,000 on hospitalization.
Another Item in the legislative record was the authorization of $9,740,000
for a building to house the United States Supreme Court.
The French debt settlement provides for the funding of 34,025,000,00'.
plus interest, over a period of 62 years. The radio bill, whhe designed
chiefly to continue the original jurisdiction of the Radio Commission until
it will be supplanted by a communications commission, also created anew
office of chief engineer of the Commission at a salary of $10,000.

Rammer Charges Inequalities.
In his speech on the floor, Representative Ramseyer complained of many
imperfections with regard to agriculture in the tariff bill as passed by the
"There are burdens in this bill imposed on farmers and consumers generally which should be removed before the bill is enacted into law," he said,
"The objections to the House bill are not that the rates therein on agricultural products are insufficient, but that there are imposed increased
tariff burdens on the things the farmers have to buy."
He said that the farmers were entitled to the benefits in the tariff bill,
but that "if those benefits can only be gotten with all the burdens which the
House bill imposes on them,it is the judgment of the farmers of the corn and
President Favored Measures Adopted.
wheat belts that they would be better off with the rates in the present tariff
Tax reduction, radio, debt settlement, and hospitalization were all
law than with the proposed rates in the tariff bill as it passed the House."
These farmers, he continued, have a feeling that the House tariff bill is subjects of recommendation in the message of President Hoover to the
not in compliance with President Hoover's recommendations to Congress for Congress. Mr. Hoover also urged rapid dispostion of the tarriff bill.
Another project recommended by President Hoover last June was set
"limited changes in the tariff" and agreed with the President in his tariff
in motion by the Senate when on Dec. 16 it adopted a resolution creating
"They have an abiding conviction," he said, "that in this tariff mixup a joint congressional committee for an investigation of the concentration
brought about by combinations of selfish local interests and party and fac- of prohibition enforcement agencies of the Government.
Congress appropriated $200,000 for the expenses of United States partitional bickerings that the President ultimately should have and will have his
way, not because of the prestige and power of his office, but because he is cipation in the naval arms conference at London in January.
Another matter which occupied the Senate for several days of the three
To-day's debate in the House on the farm rates in the tariff was incidental weeks it has been in session was the confirmation of two district judges,
to the unanimous passage of the Department of Agriculture supply bill, Albert L. Watson, appointed for the middle district of Pennsylvania, and
carrying an appropriation of$153,284,000 for the support of that department Richard J. Hopkins, for the district of Kansas.
Activities of Senate committees have centered chiefly on the lobby inand its bureaus.
This appropriation is strictly for the budgetry requirements of the depart- vestigation by the Judiciary subcommittee, headed by Senator Caraway
ment and does not include any part of the new funds provided in the farm (Dem.), of Arkansas, and on the hearings of communications and power by
the Inter-State Commerce Committee. The Caraway Committee has
relief legislation of the special session of Congress,
While the House was giving indications of how it would receive the tariff made four partial reports on its findings. Owen D. Young, Chairman of
bill as amended by the Senate, it became known to-day that the Senate the Board of the General Electric Corp. and the Radio Corp. of America,
would take up the bill as soon as it convenes after the Christmas holidays was one of the witnesses on communications.
and would give it the right of way over everything else in an effort to dispose
Investigation Is Begun Into Cotton Exchange.
of it quickly as possible.
A subcommittee of the Senate Committee on Agriculture and Forestry
Majority leaders hope for a final vote about the middle of February, but
the coalitionists say that it will be well toward the close of March before they undertook an investigation of cotton exchange trading activities, but as yet
has made only a beginning in this work.
will be through with the measure.
At one brief meeting the Banking and Currency Committee reported
favorably on five bills amending the Federal Reserve Act and National
Senator Smoot Looks for Passage by Senate of Tariff banking statutes, and agreed to take up the question of a general investigation of the Nation's credit system immediately after the holidays.
Bill by Feb. 15, Legislative Measures Disposed of
Two new Senators, in addition to Mr. Grundy, were seated, both by
and Those Still Before Congress.
appointment to fill unexpired vacancies. Senator Sullivan (Rep.), of
Wyoming, was named by the Governor to occupy the seat of the late
The Senate, now in recess (since Dec. 21) over the Christ- Senator Francis E. Warren until a special election can be held. Senator
mas holidays, is expected by Senator Smoot to pass the David Baird, Jr. (Rep.), of New Jersey, was designated to take the place
tariff bill by Feb. 15. Mr. Smoot, who is Chairman of the of Walter E. Edge, who resigned to represent the United States as Ambassador to France. Both were sworn in on Dec. 9.

Senate Finance Committee, so advised President Hoover on
Dec. 23. Congress will reconvene on Jan. 6 and under a
working agreement the Senate plans to give the bill pre- Advisory Committee of 140 Trade Representatives
Named By J. H. Barnes of U. S. Chamber of Comference over other legislative measures. Senator Borah, bemerce to Serve as Adjunct to National Business
lieves with Mr. Smoot that the bill may be disposed of by
Survey Conference.
named, according to a Washington dispatch Dec.
the date
An advisory committee of 140 representatives of business
23 to the New York "Times" which said: When he was
told what Mr. Smoot had stated at the White House, the organizations, whose task it will be to observe and report on •
business trends in many lines for the benefit of the recently
Idahoan [Mr. Borah] said:
"I see no reason why the bill shoudn't be passed before that, date. There organized Nationgl Business Survey Conference, was anwill not be many amendments offered from the floor, and I feel sure that nounced on Dec. 20 by Julius B. Barnes, Chairman of the
there will be no extended debate on the sugar schedule."
Executive Committee of business leaders and Chairman of
Mr. Borah asserted that he still favored the bounty system for domestic
sugar producers, but thought that both sides in the sugar controversy the Board of the United States Chamber of Commerce,



[VOL. 129.

says a Washington dispatch Dec. 20 to the "Herald- according to Associated Press accounts from New Orleans
Tribune" which further said:
published in the New York "Times." The account added:
In letters to all the members of the advisory committee, informing them
of their appointment, Mr. Barnes called on them to report by December 28
any significant changes in business trends up to Christmas Day. The reports
to be submitted will deal with trade conditions observed between November
-30, when full information on every Phase of national commercial activity
was collected and submitted to the National Business Survey Conference
on December 3, and December 24, when the holiday trade will have passed
Its peak.
Close Observation Urged.
In his letters to the 140 appointees Mr. Barnes said:
"There is need for continuing interpretation by informed business executives of the situations in the trade lines. The reaction to the White House
conferences and to the National Business Survey Conference, as well as the
responses so far received from trade associations and chambers of commerce.
Indicate to a reassuring extent that the momentum of business will be maintained during the next few months. It seems desirable, however, that developments be closely observed during the period. . . . We desire to
obtain your comments, in the light of the best information obtainable in
your industry, covering any significant changes and trends which were not
apparent on December 5."
The advisory committee of 140 is intended as a continuing body whose
function it wlli be to watch out for and advise of the existence of depressed
areas in the business world, it is indicated by the announcement of its
appointment, which was made public at the offices of the United States
Chamber of Commerce here. Foreknowledge of such weak spots will permit of the application of remedial measures in time to achieve constructive
results, it is believed.
"Reports indicate," the announcement continued, "that various trades
already are taking steps to fortify their positions and to carry into effect
the gendal purpose, formulated at the conference called by President
Hoover and the subsequent national business survey conference held under
the auspices of the national chamber, of maintaining the national business
momentum and safeguarding economic stability. To the same end, chambers of commerce are looking especially to the furtherance of constructive
public building programs and the stimulation of repair, replacement and
betterment work during the winter months."

In an opinion in the case of R. Foster Kincaid against the United States,
Judge Dawkins held that operations should cease until Kincaid was
assured by the Government that he would be reimbursed for any damage to
his land by construction of a spillway in the Boeuf River Basin of
Northeast Louisiana.
The decision was the first to be handed down in several test suits and
affects more than 1,000,000 acres of alluvial lands in Northeast Louisiana
and Southeast Arkansas and indirectly affects all claims of property
owners for compensation for overflow lands as a result of the Jadwin plan.
Philip H. Mecom, United States District Attorney, said he would forward
the records of the case to the Attorney General and would be guided in
his future course in the case by instructions from Washington.
"Government Now Responsible."
"When the Government departed from the policy of building levees and
other public works for the purpose of commerce and navigation alone,
and expressly entered the field of controlling floods for the protection
and reclamation of private lands, then it became engaged in activities
which make it responsible for the invasion of private rights," Judge
Dawkins said in his opinion.
"It will not be assumed," the opinion continued, "that Congress intended
to violate the fifth amendment to the Constitution by taking private property for public purposes without just compensation.
"There is a universally recognized principle that the owner of property
subject to overflow waters of either navigable or non-navigable streams
is entitled to have them to continue in their natural state without burden
or hindrance imposed by artificial means, and no public easement beyond
the natural can arise without grant or dedication, save by condemnation
with appropriate compensation for the private right.
"I think it reasonably clear that when the plan is completed, the
property within the floodways can be cultivated in most years. But
always, of course, with the knowledge that a flood may come and cause
owners or operators to suffer serious loss.

Holds Land Values Affected.
"However, there are elements going into the amount, or value to be
President Hoover Names Research Committee To Conpaid for the rights, for the act clearly indicates that the Government
duct Survey Into "Social Changes in Our National may acquire, either in fee simple, the lands desired, or merely a servitude
or right of flowage in these cases where nothing more is needed.
"It is admitted that the defendants
A statement issued at the White House on Dec. 19 made proceedings for the condemnation of do not contemplate prosecuting any
flowage rights through the Boeuf
known the appointment by President Hoover of a "Research Basin, or that they will endeavor to acquire them amicably from the
owners. Under the view they have taken of the law, they could not have
Committee on social trends to direct an extensive survey
Into the social changes in our national life." The statement followed a different course. surveys and other works of the engineers,
"It also appears that the
Indicates that the President's action was taken in response including the location of the levees and the proposed construction of the
to the request of a number of interested agencies. Wesley fuse plug at the head of the floodway in Arkansas, have for the present, at
least, affected materially the sale and mortgage values of property between
C. Mitchell, Chairman of the Board of Dlrectors of the Social the proposed levees which will be subjected to the floodwaters passing
Science Research Council, is chairman of the committee. through.
"This may be a psychological condition, but it seems real enough to
The funds for the research have been provided by the Rockethose affected.
feller Foundation, according to the White House state"The act provides that when the Secretary of War whiles to acquire
ment, which we give herewith:
any lands, easements or rights-of-way needed in carrying out this project,
At the request of a number of interested agencies the President has he shall institute proceedings in •the United States District Court where
appointed a Research Committee. on Social Trends, to direct an extensive the same is situated, if unable to agree with the owners as to the price."
survey into the significant social changes in our national life over recent
years, paralleling in character the investigation of economic changes made
J. B. Campbell Resigns as Member of Inter-State
over a year ago.
Such subjects will be studied as the improvement of national health and
Commerce Commission.
vitality, its bearing upon increased number of persons of "old age" and
Johnston B. Campbell has tendered to President Hoover
other results; the changes in maladjusted, such as insane, feeble-minded,
etc.; the effect of urban life upon mental and physical health, the institu- his resignation as a member of the Inter-State Commerce
tional development to meet these changes; the problems arising from Commission, and will retire from office as soon as a successor
increased leisure; changes in recreation and the provision for it; the
has been selected.
changes in occupations; occupations likely to continue to diminish in
Commissioner Campbell, who has been a member of the
importance; those likely to increase; the changes in family life; in
housing; in education; the effect of inventions upon the life of the Commission since 1921, will return to the practice of law
people; and many others which may indicate trends which are of
according to Associated Press advices from Washington yesimportance.
The survey will be a strictly scientific research, carried out by trained terday (Dec. 27), which said:
technicians, and will require about two or three years to complete. It is
He was selected for the Commission during the Harding administration,
believed that it will produce a body of systematic fact about social prob- having been particularly indorsed by farm organizations of the country
lems, hitherto inaccessible, that will be of fundamental and permanent value during the more active period of controversy over rail rates on agricultural
to all students and workers in the field of social science.
Classified as a Republican, his official term of the Commission had two
The funds for the research have been provided by the Rockefeller
invaluable preliminary aid in defining the nature of the years to run before expiration.
Foundation, and
The resignation of Mr. Campbell, if accepted before the first of the
survey has been rendered by the Social Science Research Council.
year, will leave two vacancies on the Commission of eleven, with the reThe members of the Committee are the following:
Wesley C. Mitchell, Chairman; Chairman Board of Directors, Social Maining nine comprising five Democrats and four Republicans.
The term of Richard V. Taylor of Alabama, one of the six Democrats
Science Research Council, Professor of Economics, Columbia
Director National Bureau Economic Research; Past President of American now on the Commission, expires next Tuesday. The Senate has recommitted the nomination of Robert M. Jones, a Nashville Republican, to
and of American Statistical Association.
Economic Association
Charles E. Merriam, Chairman of the Department and Professor of succeed Mr. Taylor for further investigation.
The law provides that not more than six members of the Commission
Political Science, University of Chicago; former President American Social
Science Research Council; Director National Institute of Public Ad- shall be of one political party.
William F. Ogburn, President American Sociological Society; Professor Air Fare to Meet Rail-Pullman Rate—Universal Airlines
of Sociology, University of Chicago; former editor, "Journal of the
Make Bid for Travel in 1930 by New Level for
American Statistical Association."
Business Men—To Issue Mileage Books—System,
Howard W. Odum, Kenan Professor of Sociology, Director of Institute
for Research in Social Science, University of North Carolina; editor, "Social
in Force at Once, Applies to Transcontinental and
Forces," a journal of social study and interpretation, and one of the
Chicago-Mexico City Routes.
leading sociologists of the South.
Shelby M. Harrison, Director Department of Surveys and Exhibits, and
As the first bid of the 1930 campaign by airline operators
Vice-General Director, Russel Sage Foundation; Director of Social for increased
air travel, rates equal to combined railroad
Division, Regional Plan of New York and Its Environs,

Flood Control Work in Louisiana Halted Under Ruling
of Federal Judge That Government Must Guar-1,000,000 Acres
antee Landowner Against Loss
Flood control work in the Boeuf Basin, Louisiana, under
the Jadwin plan was brought to a halt on Dec. 14 by an
Injunction issued by Judge Ben C. Dawkins in United States
District Court in a test suit instigated by property owners,

and Pullman fares were announced on Dec. 26 by Universal
Airlines, a subsidiary of the Aviation Corporation. Under
the plan outlined by Colonel Halsey Dunwoody of Universal
the new rates will apply only to business travel and mileage
scrip books similar to those formerly used on railroads will
be sold. The New York "Times" in reporting this on Dec. 27
went on to my:

The first two lines which will use such rates will be those now operating on the air-rail transconinental line of the company and another
which runs from Chicago to Mexico City by train and plane. The mile.

DEC. 28 1929.]



age books will be issued to cover $250 worth of coupons, each coupon rep- any appreciable extent, and at the end of 1928 only about 0.14% of the
resenting one passenger-mile at rail and Pullman rates and being exchange- number of all manufacturing establishments, employing only 2.6% of all
industrial wage earners, as far as could be ascertained, were operating on a
able for regular tickets on the airlines.
Colonel Dunwoody said that the new scale was in line with President regular five-day week schedule, but also under a great variety of plans of
Hoover's plan to speed up business in 1930. He declared, however, that number of working hours per day and of wage payments.
In point of number of establishments, the five-day week in the manuthe new system would not affect the excursion rate for casual travelers.
"The service is for American business," he said, "and is available facturing field has made greatest headway in the garment industries,
.over our entire system, but we are not cutting our established rates. the number of workers employed by these plants operating under a five-day
The American business man has said that he would use air transportation schedule, however, constituting only a small portion of the total number
were the rates not so high. Universal has taken him at his word and of workers in manufacturing working five days a week. Another industry
through the use of the new air-scrip offers him air transportation at rail- in which the five-day arrangement has made considerable progress is in
printing and lithographing, where special conditions make it more easily
road plus Pullman rates.
"A survey covering a period of four months has shown us that we can applicable. From the standpoint of size of establishment, the five-day
meet the demands of business for speed within its structure so that week has spread mostly among relatively smaller plants; excluding the
-commercial travelers may have the opportunity to prove what aviation Ford Motor Co., the average number of employees of establishments operatean accomplish for them. The system will go into effect immediately ing on a five-day schedule is 155.
Aside from the broader social considerations which are advanced by
on all our lines and it will be interesting to note how quickly the modern salesmanager and other executives will take advantage of the plan. some as reasons for adopting the five-day week schedule, the relatively
"An example of how the rates will apply may be taken from a trip be- high overhead cost and lower efficiency on Saturday in plants ordinarily
tween Chicago and Kansas City. The established airway fare is $45.75, operating only half a day at the week-end, in many cases have contributed
while the rail and Pullman fare is $21.03. With the use of the air-scrip toward the decision to eliminate Saturday operation altogether, this day
he will be able to get a through ticket by air in exchange for $21.05 being dedicated instead to repair and similar maintenance work.
The effect of a five-day week schedule upon production is inconclusive
worth of the coupons in his book and will save approximately seven hours
on basis of the evidence available, principally because whatever change in
over the railroad time between the two cities."
Universal opened its transcontinental air-rail system last June in con- output occurred under that arrangement generally is due also to a number
junction with the New York Central and Santa Fe Railroads. Later of other factors. Of the reporting companies, 6.4% stated that the output
in the year this service was augmented by the New York-Chicago-Kansas under the five-day schedule had been "substantially less"; 25.4% declared
that it had been "less in proportion." No change in output was reported
City-Mexico City rail-air-mail line.
by 49%, while 19.2% declared that output had incr sced.

Two Hundred Seventy Manufacturing Establishments
in United States Operating on Five-Day Week
Schedule According to National Industrial Conference Board, Inc.
At least 270 manufacturing establishments in the United
States, employing in the aggregate approximately 218,000
persons, are operating on a regular five-day week schedule,
according to a report published by the National Industrial
Conference Board, 247 Park Avenue, New York. This number Includes the Ford plants, but excludes the workers in
the building trades working on a five-day schedule. The
total number of wage earners employed on a permanent
five-day schedule is not known, but is estimated by the
Conference Board to have reached 400,000 persons at the
beginning of the current year. Lairge groups of building
trade workers, however, were granted a five-day week later
during the year. In stating this, under date of Dec, 16, the
Board says:

Continued Use of Gas in Industry and Home Seen by
B. J. Mullaney,President of American Gas Industry
"Expansion into new fields of usefulness and a most extensive development of existing markets has marked the
year 1929 in the gas industry of the United States," says B.
J'. Mullaney, President of American Gas Association. "The
indications for the year 1930, are that this growth will continue during the new year in about the same ratio as that of
the year just closing. This anticipated growth is predicated
upon the new trends and changing conditions, such as the
increase of large-volume industrial use of gas, accelerated
use of gas for additional domestic purposes, including central
house heating and refrigeration. Expansion is further stimulated by the growing popular recognition of the superior
advantages of gaseous fuel, and by the continuous program
of research, conducted by the American Gas Association,
that is developing new uses and greater efficiencies and
economies in methods of utilization." Mr. Mullaney's
While the five-day week thus has been adopted perhaps more widely statement adds;

than is generally realized, still it applies to only a relatively small portion
of industrial workers, those in the manufacturing industries found to be
working under that schedule amounting to only 2.6% of the industrial
workers of the country, and 80%, or most of them, were employed by
the Ford Motor Co.
Companies operating under the five-day week arrangement were found
to represent a number of industries and types of processing, but belonged
generally to the non-continuous, as contrasted with the continuous process
type. Where the process has no fixed time element, the five-day schedule
appears to be susceptible of wide application, but in the continuous process
industries the five-day arrangement presents the alternative of either the
loss of one or two days' production each week or of employing sufficient
additional workers to provide a revolving shift.

The five-day week, it is emphasized, as now in operation,
Is not always a 40-hour week, but frequently constitutes
merely a rearrangement of hours with no or only partial
loss of the number of hours worked under the six-day
schedule. It is thus, at the present stage of its development,
in part a question of rearrangement of working hours, the
time lost on Saturday being reapportioned over the other
five working days of the week, lengthening each day somewhat, and In paid a question of reduction of the total work
period. But, "in effect, the five-day week is only the current
form of the movement toward progressively shorter working hours for labor," the Board finds. "Since this tendency
is coupled generally, or in principle, with the assumption
that wages are to be maintained or increased (in spite of
the shorter work period) the five-day week is, at bottom,
also a part of the general movement for higher wages."
Further advices from the Board state:
The question of shorter working hours in this form thus has become
one of social economy and industrial technology. The evidence uncovered
by the Conference Board in its analysis of the experience with the five-day
week in the 270 reporting manufacturing establishments does not allow
the conclusion that any or all Industrial plants could advantageously adopt
the five-day plan. The facts collected by the Board do, however, remove
the five-day week from the status of a radical and impractical administrative experiment and places it among the plans which have demonstrated
both practicability and usefulness under certain given circumstances,
allowing employers to approach the problem with some factual evidence
as a guide as to the practicability in their own specific instance.
The earliest instance of five-day week operation discovered by the
Conference Board in its investigation was that in a New England spinning
mill, which started business in 1908 on a five-day schedule, the reason
being principally a religious one, since most of the workers were of
Jewish faith and wished to observe the Sabbath holiday. The five-day
schedule in this case was instituted without loss of working hours, the
five remaining working days being proportionately lengthened. It was
snore than 10 years, however, before the movement began to spread to

In 1928 the combined revenues of the manufactured and natural gas
Industry aggregated $875,000,000, an increase of nearly 8% over the preceding Year. At the close of 1929 the combined revenues of the Industry
mounted to $950,000,000, a gain of nearly 9%. At the close of 1928 the
Industry's customers numbered 16,000,000, a gain of more than 500,000.
As we enter the year, 1930, the gas industry has a clientele of upwards of
17,000,000, a gain of almost one million customers. To the service of these
customers is dedicated an investment of approximately $4.750,000,000.
During the coming year the industry will, according to our recent estimates
prepared for the business conference called by President Hoover. expend in
the neighborhood of $425,000,000 in the construction of additional facilities
for enlarged service, and another $50,000,000 for the maintenance of existing
service facilities.
The financial position of the industry Is generally conceded to be excellent.
A summary of the financial status recently prepared by one of the leading
investment banking houses, estimates for the coming year that the production of gas, both manufactured and natural, will exceed 2,000,000,000,000
cubic feet, that the total investment in the industry will cross the $5,000,000.000 mark and that revenues from the sale of both manufactured and
natural gas will more nearly approach a $1,000,000,000 total.
Gas industry growth, while unspectacular, has been marked and steady
for upwards of twenty years. In the last four years. and 1928 has outstripped all previous years, tremendous strides have been made in the
efficiency and economy of transporting gas. The tensile strength of pipe
has been increased to withstand the high pressures; methods of preventing
It rusting and deterioration have been devised which extend the life of this
equipment materially; efficiencies and economies have been introduced into
every department of its production, transportation and distribution,
resulting In a much different estimate of the industry and the value of the
Perpetuity of the service it renders, than has ever before obtained.
In consequence of these advances, particularly in the natural gas branch
of the industry, the past few years have witnessed remarkable activity in
the building of long trunk lines for the transmission of gas, mostly in the
Southwest and West. This activity has been attended by the development
of great producing areas containing vast reserves, which coupled with large
increases in production, is making the transmission of natural gas to even
greater distances than it is now propelled economically practicable.
The great Monroe and Richland Parish gas fields, in Louisiana, the
"Panhandle" and numerous other prolific producing areas in Texas, and in
California the Kettleman Hills and other big fields, offer to the people, even
those hundreds of miles distant, this ideal fuel in hitherto undreamed of
Main trunkline building is well under way. This will, of course, be
followed by years of active expansion and extension of small lines from the
main trunk lines, first to the larger communities and later to the smaller
centers. The consolidations of separate lines are already beginning. In all
likelihood there will ensue an era of gradual consolidations, with physical
connections and tie-ins following, similar to phases which the electric light
and power industry have experienced in recent years, and which is very
strikingly evident at this time.



[VOL. 129.

Compilation by Fletcher American Company of Indian- Stock Land banks in receivership. In presenting its survey
apolis Showing Ratio of Earning Position of Vari- the Fletcher American Company says:
The ratios presented are designed to indicate the operating efficiency of
ous Joint Stock Land Banks.
the various banks. One of the ratios reflects the position of the banks If
The comparative condition of all the Joint Stock Land foreclosed property is added as an asset, or if payments are slow, and the
banks as of Sept. 30 1929, showing among other statistics other ratio reflects losses written off out of surplus. We have made no atthe value
the comparative ratio of the earning position of the banks, tempt to estimate angle. of the assets In liquidation, nor to look at the
picture from that
has been prepared in pamphlet form by the Fletcher AmerAt present prices Joint Stock Land bank bonds would appear to offer
ican Company of Indianapolis, the data being compiled from good investment opportunities. In our opinion one must choose among
them, just as one must do among
official reports to the Federal Farm Loan Board. Included of investments where managementcorporation bonds, and among any class.
is a factor.
in the compilation are the statistics relative to the Joint
The survey follows:
OF SEPT. 30 1929.
Comparative Ratios.z

Atlanta-Atlanta, Ga
Atlantic-Raleigh, N. C
Burlington-Burlington, Iowa
California-San Francisco, Calif
Chicago--Chicago. Ill
-Dallas, Texas
Denver-Denver, Colo
Des Moines
-Des Moines, Iowa
First Carolinas-Columbia, S. C
First-Ft. Wayne,Ind
First-Montgomery, Ala
First-New Orleans, La
First Texas
-Houston, Texas
a First Trust-Chicago, III
Fletcher-Indianapolis, Ind
Fremont-Lincoln, Neb
Greenbrier-Lewisburg, W. Va
Greensboro-Greensboro, N. C
Illinois-Monticello, Ill
Illinois Midwest-Edwardsville, Ill
•Indianapolls-Indianapolls, Ind
Iowa-Sioux City,Iowa
Kentucky-Lexington, Ky
Lafayette-Lafayette, Ind
Lincoln-Lincoln, Neb
Loulsville-Louisville, Ky
Maryland-Virginia-Baltimore, Md
-Minneapolis, Minn
-Memphis, Tenn
O New York-Rochester, N. Y
North Carolina-Durham, N. C
Ohlo-Pennsylvania-Cleveland, Ohio
Oregon-Washington-Portland, Ore
Pacific Coast
-Portland, Ore
Pacific Coast-Salt Lake City, Utah
c Pacific Coast-San Francisco, Calif
Pennsylvania-Philadelphia, Pa
Potomac-Alexandria, Va
St. Louis-St. Louis, Mo
San Antonio-San Antonio. Texas
S. Minnesota-Minneapolis, Minn
Southwest-Little Rock, Ark
Tennessee-Memphis, Tenn
Union-Detroit, Mich
Union-Louisville, Ky
*Union Trust-Indianapolis. Ind
Virginia-Carolina-Norfolk, Va
Viral nInn-Chnrlemtnn W VA.

Charter. Undistributed
Earned Surplus


Georgia and Ala.
No.and So. Car_
Iowa and Illinois
Calif. and Ore.
Illinois and Iowa
Texas and Okla.
Colo. and Wyo.
Iowa and Minn.
So. and No. Car.
Ind.and Ohio
Ala. and Ga.
Ls. and Miss.
Texas and Okla.
Illinois and Iowa
Ind. and Illinois
Neb. and Iowa
Va. and W. Va.
N. C. and Tenn.
Illinois and Iowa
III. and Mo.
Ind.and Ohio
S. D.and Iowa
Ky. and Ohio
Ind. and III.
Iowa and Neb.
Ky. and Ind.
Md.and Va.
N. D.and Minn
Miss. and Tenn
N.Y.and N.J.
N. C. and Vs.
Ohio and Pa.
Ore. and Wash.
Ore. and Wash.
Idaho and Utah
Cal. and Ariz.
Pa. and N. Y.
Va.and Md.
Ark. and Mo.
Texas and Okla.
Minn. and S. D.
Ark. and Texas
Ark. and Tenn.
Mich. and Ohio
Tenn. and Ky.
Ind. and Ohio
N. C. and Va.
Min and W. Va.

• 1918

Indications of
Unpaid Loans

AS OF SEPT. 30 1929.

Total wets
Bonds outstanding
Other liabilities

Total liabilities
Margin of Safety
Included Among Assets.
Loans in default
Loans being foreclosed
Sheriff's certificates
Real estate owned
Banking house owned
2 Total assets
Bonds and certificates outstanding
Other liabilities
Total liabilities
Margin of safety
Included Among Assets.
-ii Loans in default
Loans being foreclosed
Sheriff's certificates
Real estate owned
OHIO J. S. L. B.
Total assets
Bonds and certificates outstanding
Other liabilities
Total liabilities
Margin of safety
Included Among Assets.
Loans in default
Loans being foreclosed
Sheriff's certificates
164iii Real estate owned
339.atin Rd








Real Estate,
and Notes.


Installments Indications of
Unpaid. Net Mortgage


Atlanta-Atlanta, Ga
$6,591,231.95 $5,902,542.93 $5,993,000.00 $3
" ,, 4350,000.00 $209,531.26
Atlantic-Raleigh, N. C
16,610,314.35 15,953,103.19 14,582,000.00 1,341,52 e"" 4 4008.0.00
Burlington-Burlington, Iowa
3,904,111.59 3,603,768.46 3,540,500.00
:46101 000
California-San Francisco, Calif
16,870,838.87 14,526,167.74 15,030,000.00 1,498,093.93
Chicago-Chicago, Ill
54,668,083.68 46,822,028.78 49,440,700.00 3,645,436.88 4,000,000.00 5.125,569.53
Dallas-Dallas, Texas
43.595,776.00 41,673,207.99 39.213,000.00 3,422,519.96 2,589,000.00
Denver-Denver, Colo
15,400,248.11 14,557,204.26 13,551,000.00 1,562,803.09 1,184,800.00
Des Moines
14,624,745.37 11,208,707.47 12,995,000.00
-Des Moines, Iowa
906,623.56 1,150,000.00 2,650,236.74
First Carolinas-Columbia, S. C
12.942,255.16 11,704,850.92 11,871,000.00
First-Ft. Wayne,Ind
8,831,048.04 8,335,223.21 7,758,600.00
First-Montgomery, Ala
9.626,620.96 8,985,894.17 8,703,000.00
-New Orleans, La
4,611,808.24 4,239,793.90 4,042,000.00
First Texas
7,638.674.56 7,467,000.00
-Houston, Texas
a First Trust
76,974,310.86 75,349,304.32 69,530,000.00 5,998,921.15 4,600,000.00
-Chicago, III
Fletcher-Indianapolis, Ind
16,583,508.52 15,702,787.84 14,606,500.00 1,716,223.25
Fremont-Lincoln. Neb
9,752,694.09 8,847,568.26 8,471,000.00 1,084.878.03
Greenbrier-Lewisburg, W. Va
2,846,326.50 2,715,888.12 2,442,000.00
4,999,201.26 4.790,000.00
Greensboro-Greensboro, N. C
Illinois-Monticello. Ill
7,401,827.70 7,113,885.93 6,710,000.00
6,147,398.84 5,899.265.80 5,470,000.00
Illinois Midwest
-Edwardsville, Ill
*Indianapolls--Indlanapolls, Ind
.-Iowa-Sioux City, Iowa
8,147,803.47 7,271,694.02 7,221,000.00
Kentucky-Lexington, Ky
12,467.377.89 11,357,817.42 11,253,500.00
9,895,335.74 9,340,245.91 8,973,500.00
Lafayette-Lafayette, Ind
38.967,890.60 35.926,898.6934,675.500.00 3,436,611.39 2,711,400.00 1,671,087.75
Lincoln-Lincoln, Neb
Louisville-Louisville. Ky
7,507,106.10 6,057,423.41 6,785,500.00
2,727,103.50 2,621,235.03 2.300,000.00
Maryland-Virginia-Baltimore, Md
5,206.251.77 4.950,747.11 4,357,000.00
-Minneapolis, Minn
4,465,335.70 4,130,286.98 3,874.000.00
Mississippi-Memphis, Tenn
14.973,477.42 14,005,063.34 13,303,000.00 1,030,834.19
ta New York-Rochester. N. Y
15,278,766.83 14,214,211.83 13,700,000.00 1,170,194.16
North Carolina-Durham, N. C
Ohlo-Pennsylvania-Cleveland, Ohio
14,892,826.15 14,160,136.64 13,163,000.00 1,088.754.95
3,641,567.61 3,289,331.63 3,269,000.00
Oregon-Washington-Portland, Ore
7,741,724.04 7,443,453.79 6,925,000.00
Pacific Coast
-Portland, Ore
4,964.714.97 4,706,726.67 4,482,000.00
Pacific Coast-Salt Lake City, Utah
23.286,000.46 21,937,750.72 21,100,000.00 1,872.904.31 1,450,000.00
c Pacific Coast-San Francisco, Calif
7,213,360.98 6.796.844.20 6,502,000.00
Pennsylvania-Philadelphia, Pa
6,829,244.65 6,530,832.84 6,128,000.00
Potomac-Alexandria, Va
22,193,046.84 20,865,984.75 20,072,000.00 1,826.148.49 1,464,000.00
-St. Louis, Mo
St. Louis
20,116,577.90 19,352,204.18 18,175,500.00 1,530,399.41 1,284,916.00
San Antonio-San Antonio, Texas
26,979.956.41 18,367,101.53 23,289,700.00 2,755,063.01 3,000,000.00 7,361,757.40
E4. Minnesota-Minneapolis. Minn
4,883.071.35 4,610,846.61 4,369,000.00
Southwest-Little Rock, Ark
3,883,361.53 3,604,569.86 3,474,000.00
Tennessee--Mem phis, Tenn
10,250,637.36 9.577,743.97 9,013,500.00
Unton-Detrolt, Mich
3,282,672.23 2,804,830.58 2,932,000.00
Union-Louisville, Ky
*Union Trust-Indianapolis, Ind
7.645,112.36 6,825.482.81 6,904,000.00
Virglnia-Carolina--Norfolk, Va
VircrInla.n--r.harloatnn W Va
16.1191.96.4.13 15.242,253.75 4.835.000.00 1.531,039.34 1,192,500.00
Trust. Dallas, and First Trust Chicarto. b Consolidation of N. Y. and N. Y.
• New banks.
-N. J. Banks,
a Consolidation of First
c Consolidation of Pacific
Coast. Los Angeles and San Francisco banks. x The lower this ratio, the better the showing of the bank.

DEC. 28 1929.]


Congress to Defer Rail Merger Bills—Legislation to
Pave Way For Consolidation is Unlikely at Present
Session—Fess Bill.
While the Administration favors it and leaders of both
parties appear to be in agreement that legislation should be
enacted at this session of Congress looking to the consolidation of railroads, strong doubts exist that such a bill can be
passedlin the near future according to reports Dec. 25 from
Washington to the New York "Times", which added:


Four of the seven directors of the defunct City Trust Co. indicted by
the extraordinary grand jury several months ago for making false or
fraudulent reports on the bank's condition to the State Banking Department pleaded guilty before Justice Tompkins in the criminal branch of the
Supreme Court yesterday.
They were freed on suspended sentences, however, on the recommendation
of District Attorney Banton, who told the court that through information
they had given the State important evidence was uncovered which aided in
the conviction of Frank H. Warder, former State Superintendent of Banks.
The pleas were entered a few minutes after the grand jury had reported
to Justice Tompkins that it had been unable to find any law under which
indictments might be returned against former General Sessions Judge
Francis X. Mancuso and the other six directors in substitution of an
indictment charging participation in the fraudulent insolvency of the bank.
This indictment was quashed by Justice Tompkins a few weeks ago on the
ground the subdivision of the penal law under which is was returned was

Fess May Modify Bill.
Senator Fess, author of a consolidation bill introduced in the preceding
Congress, announced just before he left Washington this week that his
measure might be modified in some important phases in view of the five- unconstitutional.
Di Paoli Pleads to Felony.
system plan proposed for Eastern territory by the Inter-State Commerce
Those who pleaded guilty were Anthony Di Paola, Cashier of the bank;
The Fess bill and a bill pending in the House,presented by Representative Frederico Ferrari, Vice-President, and brother of the late Francisco Ferrari,
Parker of New York, Chairman of the Inter-State Commerce Committee, the President, whose manipulation of the funds caused the bank's crash;
are similar in purpose, although they differ in detail. The Parker bill is Leonard Rose, a Harlem druggist, and Salvatore Soraci, a contractor. All
purely permissive, but in the opinion of railroad men the Fess bill has at previously had pleaded not guilty.
least one provision that ultimately,operating as a law, mightforce railroads,
Di Paola pleaded guilty to one felony indicement to cover three accusing
especially short lines, into consolidations distasteful to them.
him of making false and fraudulent reports to the State Banking DepartThe provision in the Fess bill under discussion is one which permits the
ment. Justice Tompkins imposed a sentence of from one to two years in
Commission to authorize a carrier which is a party to a plan of unification Sing Sing,
but suspended it contingent on Di Paola's good behavior while
to acquire by condemnation of properties, right and franchises of another
on probation.
carrier which is not a party and which insists upon "unreasonable" terms,if
In urging the court not to send Di Paola to prison Mr. Banton said:
the Commission determines that it is in the public Interest that such carrier
"We had made very slow progress in our investigation, and the
should be included in a given plan of unification.
was discouraging until this defendant voluntarily appeared and offered
House to Study Situation.
his assistance. His example brought in others, and the investigation in
Indications are that the House Committee will begin a study of the rail- its important aspects of malfeasance by a State officer was speedily
road situation in January, with a probability that the Parker bill or a meas- closed."
ure approximating it will be reported. In the meantime, the Executive
Warder, who is awaiting a decision from the Appellate Division of
Committee of the Association of Railway Executives will meet at an early Supreme Court on an appeal from his conviction and five-year sentence
date and discuss its attitude toward proposed legislation.
for accepting a $10,000 bribe from Francisco Ferrari, was the State
The Senate situation at present is unfavorable to consolidation legislation, officer to whom the prosecutor referred.
although Eastern Republicans are hostile at this time, because they are
Banton Asks Clemency for Others.
suspicious of the Commission's plan and are disposed to defer action to some
Guilty pleas to misdemeanor indictments, charging they had made false
future session.
by Ferrari,
Nevertheless, advocates of early consolidation, such as Senator Watson reports to the State Banking Department, were then entered
of Indiana, the Republican leader, and Senator Fess, see no reason why a Rose and Coraci and, after Mr. Banton had urged clemency because
they were freed under like
consolidation bill should not be passed at this session. Senator Watson in- their help in the grand jury investigation,
sists that consolidation has been too long deferred and that legislation conditions.
reasonably circumscribed to avoid the danger of injustice to any road or
Francis S. Paterno, a real estate operator, and Isidore Siegeltuch, a
group of roads should be passed as soon as possible.
lawyer, were the sixth and seventh directors named with Judge Mancuso
The Senate has much work mapped out for January and February and and the others in the quashed indictment
this is likely to defeat any attempt that may be made to bring the subject to
Mr. Banton said later that proceedings against the directors were not
the front in the near future. Agreement has been made to resume debate on ended, since he had filed notices of appeal from Justice Tompkin's decision.
the tariff bill on Jan. 6, and following the passage of that measure an effort
Justice Tompkins was informed by the grand jury that all possible evithe
will be made to bring forward legislation dealing with Muscle Shoals,
dence had been obtained in connection with the responsibility of
The Senate Inter-State Commerce Committee expects to devote all of City Trust directors in the bank's collapse, but that other matters of
proposal to create a communications "importance to the taxpayers" still were under discussion. The court
Janaury to consideration of the Couzens
commission, after which it will turn to the bill, extending the authority of thereupon ordered the grand jurors to continue their work.
the Inter-State Commerce Commission over motor bus passenger traffic.

Regarding the provisions of the Fess bill, a dispatch from
Washington to the New York"World" Dec.24 said;
Senator Fess (R.,0.) revealed to-day that the railroad bill he will introduce will contain a section to bring railroad security holding companies
under the jurisdiction of the Inter-State Commerce Commission.
The measure wit have for its main purpose the authorization of railroad
unifications, but only to the extent that they promote the public interests
and the setting up of definite standards to be taken into consideration by
the Commission to determine whether proposed mergers are in the public
Purpose of Bill.
Other purposes of the bill are listed by Senator Foss as follows:
To enable the carriers to carry into effect such unifications as have been
approved by the Commission by establishing a uniform and effective
To safeguard the interests of all who might be directly or substantially
affected by such unifications, especially carriers that are not originally
Joined in the unification plan.
To establish an efficient system of supervision by the Commission in all
cases of proposed unifications.
To provide adequate protection for all dissenting stockholders of the
carriers who are parties to a proposed unification by establishing a procedure
whereby they may receive just compensation for their stock.
To remove the defects of existing law which have prevented the promotion
of the policy of voluntary unifications.
To relieve the Commission of the duty of preparing a complete plan for the
unification into a limited number of systems of all the railway properties in
the continental United States and to substitute a provision directing the
Commission to make a study of transportation facilities and to prepare one
or more tentative plans to be available for its use in passing upon petitions
for unification.
To Permit Condemnation.
TO permit the Commission under certain circumstances to authorize the
acquisition by condemnation of a carrier which was not a party to the plan
If the Commission determines that it is in the public interest that such carrier
be made a party to a unification.
To prohibit all unifications, including consolidations, mergers, acquisitions of properties and acquisitions of securities, under State or Federal law,
except as specifically provided in the bill.
To provide relief from State and Federal taxation in order to encourage
and make possible unifications that will be in the public interest.

Suspended Sentences Given Cashier Di Paola and
Others Indicted in City Trust Co. Failure—Grand
Jury Finds No Law Under Which to Indict Judge
Suspended sentences were received by several of the
Indicted directors of the City Trust Co. of New York on
Dec. 18, at which time the grand jury indicated that it
could find no law under which Judge Mancuso might be
indicted. Regarding this, we quote the following from the
New York "Times" of Dec. 19:

From the New York "World" of Dec. 19 we take the
District Attorney Banton asserted yesterday that the case against
and the six others indicted with him is "not closed." He issued the following statement:
"At the time Justice Tompkins sustained the demurrer to the indictments against
as a precautionary
Judge Mancusco and the other directors I filed a notice of appealwas served on the
measure. Yesterday the record and the notice of the appeal heard later in the
appeal will be
lawyers for Judge Mancuso and the others. The
against us and
Appellate Division of the Supreme Court. If the decision there is
Justice Tompkins view is sustained, the matter will be carried to the Court
Jan. 1, and
I s"
APP tr1ct Attorney Banton's term of office, however, expires
lee will be succeeded by former Supreme Court Justice Crain. Just
could not be
status this change of prosecutors will place the appeal in
city as a
learned. It was suggested that Banton may be retained by the
through to its
special prosecutor, in order that he might carry the appeal
end. But the chances appeared to be against such a move.

The conviction of Superintendent Warder was referred to
in our issues of Nov. 16, page 3113, and Dec. 14, page 3741.
The indictments against Judge Mancuso and other directors
of the City Trust were reported in these columns Oct. 26,
page 2627.
A New York Cocoa Exchange membership was reported
sold this week—that of R. G. Dale to Wessels, Kulenkampff
& Co. for another—for $3,500. Last preceding sale $3,000.
Alexander Gilbert, a Vice-Chairman of the Board of the
Irving Trust Co., who frequently has been referred to as
the oldest banker in New York City, died just before midnight, Dec. 20, at his home in Plainfield, N. J., after an
illness of several months. He was in his 91st year, and had
been a banker for more than 70 years. Mr. Gilbert began
his banking career Nov. 29 1859 when he entered the old
Market Bank as an Assistant Receiving Teller. In 1863,
when he was 24 3-ears old, he was appointed Cashier of the
Market Bank, the youngest bank Cashier in the city at
that time. In 1887 the Presidency of the Fulton National
Bank of New York was offered to him. He declined the
offer. Later the Market National Bank and Fulton National
Bank merged as the Market and Fulton National Bank, and
in 1890 he became Vice-President, and in 1896 President.
In 1917 Mr. Gilbert became Chairman of the Board of the
Market and Fulton National Bank, and when that bank
was taken over by the Irving Trust Co. he was appointed



Chairman of the Board of the combined institution. When
the Irving Trust Co. was absorbed by the Irving National
Bank in 1920 he was made Vice-Chairman, a position which
he held through the various mergers of the bank until his
death. From 1904 to 1905 Mr. Gilbert was a member of the
New York Clearing House Committee, and in 1907 he was
elected President of the New York Clearing House Association. Mr. Gilbert had been a resident of Plainfield since
1866. From 1890 to 1896 he was Mayor of the city. In
1888 he was a delegate to the Republican National Convention in Minneapolis, and later was a member of the committee appointed to notify Benjamin Harrison of his nomination for President. Notwithstanding his advancing years,
Mr. Gilbert went to business until less than a year ago,
commuting between his home and New York City daily.
His headquarters were at the Market and Fulton Office of
the Irving, at 81 Fulton Street.
The following resolutions have been adopted by the directors of Irving Trust Co. in appreciation of the services of
Mr. Gilbert:
"We, the members of the Board of Directors of the Irving Trust Co.,
record with deep sorrow the death, on Dec. 20, of our dear friend and
associate on this Board, Alexander Gilbert.
"In the death of Mr. Gilbert there has passed from American banking
one of its sturdiest and most lovable characters. Of inflexible principles
and most definite views, still he always showed the most delicate consideration for the views and feelings of others. Keenly interested in business,
and recognizing no limits in his devotion to duty, still he always was
able to find sufficient time for the pleasant little things which make life
most fully worth while.
"Mr. Gilbert's contribution to the upbuilding of American banking
was an important one and extended far beyond any considerations of
institutional connectioa. He participated in the creation of the National
banking system, was among the earliest advocates of the Federal Reserve
System, was President of the New York Clearing House Association
during the panic of 1907, and rendered effective service in every National
banking crisis since the Civil War.
"Rarely do we find a man so well adjusted to his environment as he.
His chosen work, his home, his friends, his business associates, the
demands of community life and of the State, charity, religion, recreation—
al] met and harmonized in him so as to produce that most unusual thing,
a well balanced life. And not until the entered the final shadows of his
fourscore and ten did he concede anything to the claims of years.
"Therefore we testify to our pride in the record of achievement of a
great American, and because we have known him as a man and enjoyed the
privilege of his friendship and counsel, we mourn Alexander Gilbert as a
dear friend who has gone.
"To the bereaved family we offer profound sympathy and we direct
that a copy of this Resolution be transmitted to them."

FoL. 129.

President of the Webster & Atlas National Bank of Boston,.
according to the Boston "Transcript" of Dec. 17. Mr. Russell will have charge, it was said, of the new agency department of the bank which is being formed to handle the
securities, taxes, and clerical details of investors and trustees. The Boston paper furthermore stated that Arthur W.
Lane and Frederick H. Turnbull, heretofore Assistant
Cashiers of the bank, were promoted to Assistant VicePresidents, while William E. Westman, formerly Auditor,
was made an Assistant Cashier.
According to advices from Hartford, Conn., on Dec. 19 to
the "Wall Street Journal," the directors of the Hartford
National Dank & Trust Co., Hartford, have declared an
extra dividend of $1 and a regular quarterly dividend of
$3.50, both payable Jan. 2 1930, to stockholders of record
Dec. 18. The directors have also recommended a reduction
In the par value of the bank's stock from $100 a share to
$10 a share, and have called a special meeting of the shareholders for Jan. 14 to consider the proposal.

A consolidation of the People's National Bank and the
Downtown Trust Co., both of Elizabeth, N. J., under the
title of the former, was approved by the respective directors
of the institutions on Dec. 23. The merger will increase
the deposits of the People's National Bank and enlarge the
accommodations to the present depositors of both banks.
After the merger, the People's National Bank will have,
through its three institutions—that is, its main bank on
Broad St., its Sixth Ward Branch at South Broad and
Summer Sts., and the new branch, now the Downtown
Trust Co., at Third and East Jersey Sts., capital and
resources of approximately $8,000,000. Following the merger it is planned to continue the directors of the Downtown
Trust an advisory board, with the President, Frederick
Rieke of the Downtown Trust Co., as Chairman of the
Advisory Board at the Downtown branch. The policies
as well as the personnel of the Downtown Trust Co., will
be continued with George C. Hulick in active charge of the
Downtown Branch. Application will be made to the
Comptroller of the Currency at Washington and the Commissioner of Banking and Insurance at Trenton for approval
The Guaranty Trust Co. of New York announces the ap- of the consolidation and the merger will also be submitted
at once to the stockholders of each institution for their
pointment of Robert A. Jones as Assistant Trust Officer
approval. General D.F. Collins is President of the People's
and Ira W. Aldom as Assistant Real Estate Officer. Mr.
National Bank.
Aldom was formerly Assistant Treasurer.
Central Hanover Bank & Trust Co. of New York announces that F. A. Buck, A. F. Smith and J. H. Osborne
have been made Assistant Vice-Presidents; James G. Dougherty, Robert MacDougall and Albert D. Washington have
been appointed Assistant Secretaries, and W. H. Schermerhorn, Assistant Treasurer.
Edward L. Love, formerly a partner in Love, Macomber &
Co., has been elected a Vice-President of the Equitable
Trust Co. of New York and also a Vice-President of its
affiliated securities company, the Equitable Corporation of
New York.
The Metropolitan Savings Bank of this city has declared
interest at the rate of 411% per annum on deposits for the
quarter ended Dec. 31. The rate paid heretofore had been
4;i% per annum.
Edwin Nesbit Chapmon, senior member of the Stock Exchange firm of Chisholm & Chapman, 52 Broadway, died
of pneumonia at his home in this city on Dec. 20. He Was
57 years of age. In 1906 Mr. Chapman entered the firm of
Chisholm & Pouch, the name of which was changed in 1907
to Chisholm and Chapman. Besides being a partner in the
latter, Mr. Chapman at the time of his death was a director
of the Continental Bank of New York, and the Putnam
Trust Co. of Greenwich, Conn.; President, Treasurer and
Director of the Exchange Court Corporation; Director of
the Berkshire Fine Spinning Associates, and Vice-President
and Director of the Shellmound Plantation. In Greenwich,
Conn., he was a member of the Board of Estimate and Taxation for many years.
William E. Russell, formerly associated with the law firm
of Gaston, Snow, Saltonstall & Hunt, but more recently
Assistant Trust Officer of the Northwestern Trust Co. of
St. Paul, Minn., was recently appointed an Assistant Vice-

The United Strength Bank & Trust Co. (better known as
the U. S. Bank & Trust Co.), Philadelphia, located at 4th
and Market Streets, with a branch at Front Street and
Allegheny Avenue, was closed on Dec. 24 by order of Peter J.
Cameron, State Secretary of Blanking, after an audit
revealed some of its assets were "frozen" through real
estate loans, according to the Philadelphia "Ledger" of
Dec. 25. Mr. Cameron was quoted as saying that the bank
was closed with "the greatest reluctance" after a hearing
before Attorney General Woods, who agreed the bank's
reserve had been jeopardized. The failed bank, It was said,
has deposits of approximately $2,000,000 and assets of
$4,000,000, "a large portion of which have been pledged,
It was said." The institution's capital is $997,100, with a
surplus of $200,000. The main bank and branch, it was
stated, were closed without notice to employees, who arrived
for work to find a notice pasted on the doors, which read as
"By virtue of the power and authority vested in him under provision of
the Act of Assembly approved June 15 1923, as amended by the Act of
Assembly No. 400 approved March 5 1927, the Secretary of Banking of
the Commonwealth of Pennsylvania has taken possession of the property
and business of the U. S. Bank & Trust Co., Philadelphia. (Signed)
William R. Smith, Special Deputy."

In a formal statement Mr. Cameron announced that he
had appointed William R. Smith Special Deputy to assist
him in continuing or liquidating the institution's business,
"The U.
Bank & Trust Co., formerly called the Allegheny Title dr
Trust Co., has for some years past loaned extensively to real estate speculators and operators, and is at present carrying many loans made upon the
security of real estate that are delinquent and the collection of which is
very uncertain, because of the present depression in the real estate market
in Philadelphia.
"The bank, because of the character of its assets, is in an unsafe and
unsound condition to continue business, and the Secretary of Banking finds
it his duty to take possession of the affairs of the bank for the purpose
of determining its true condition, to the end that the best interests of the
depositors and other creditors may be properly cared for.
"The stock control of the bank was acquired some months ago by
William Goldstein and soon thereafter Mr. 0. Stuart White was elected

DEC. 28 1929.]


president. It is only fair to these men to say that the present condition of
the bank is chargeable to its former management and not to them."

Mr. Cameron indicated, it was said, that there was no
shortage in the bank's funds, explaining it appeared to be
a case of "frozen assets." He declared closing of the
institution represented the beginning of a campaign to
break up the practice in Philadelphia banks and building
and loan associations of collecting commission on loans.
Mr. Cameron was further reported as saying:
"For some time this has been going on, and we have under investigation
the report that an official of the old Allegheny Title d; Trust Co., which
was merged with the U. S. Bank & Trust Co., collected such commissions.
"In my opinion, this is clearly a violation of the law, and we have
decided to press prosecution of the case in the courts if we can unearth
sufficient evidence to support charges of misapplication of funds.



"At the time of our recent examination of the U. S. Bank dr Trust Co.
it appeared that some loans had been made without sufficient security
upon payment of a commission to some official. If our investigation now
satisfies the Banking Department that such was the case the department
will undertake to recover from persons responsible, or will prosecute on
the grounds of misapplication of founds. The action will be determined
by the evidence forthcoming."

Philip S. Coffins, Vice-President and Treasurer of the
Curtis Publishing Co., has been appointed a director of
the Tradesmen's National Bank & Trust Co. of Philadelphia
to succeed Victor C.Mather,resigned.
According to the Philadelphia "Ledger" of Dec. 24, the
National Bank of Delaware, Wilmington, Del., at their
special meeting on Dec. 23 unanimously approved the proposed merger of the institution with the Security Trust Co.
of that place. As noted in our issue of Dec. 21, page 3908,
shareholders of the Security Trust Co. unanimously voted in
favor of the union on Dec. 5.
The Southern Maryland Trust Co., with banking offices
at Seat Pleasant and Upper Marlboro, Md. (an institution,
it is understood, with deposits of approximately $900,000
and !resources of about $1,300,000), was ordered closed on
Dec. 13 by George W. Page, State Bank Examiner, according to the Baltimore "Sun" of Dec. 14. Mr. Page was
quoted as saying that he ordered the institution closed
because it was short of reserves and had "frozen" and irregular loans, some of which appeared to be fraudulent. The
"Sun" went on to say, in part:
W. J. Hayward and Allen MacCtrilen recently were elected President and
Cashier, respectively, of the institution. The former officers were S. J.
Henry, President, and Hubert Plaster, Cashier.
Mr. Page said he thought Mr. Henry was involved with the F. H. Smith
Co., a defunct investment house of Washington (D. C.), which sold
securities through the mails. Mr. Plaster had been very closely associated
with Mr. Henry, Mr. Page said.

A more recent issue of the paper mentioned (Dec. 17),
after stating that a petition would be presented at Upper
Marlboro that morning by Thomas H. Robinson, Attorney
General, and Herbert Levy, Assistant Attorney General,
asking the Circuit Court for Prince George's Co. to assume
jurisdiction of the receivership of the failed institution, had
the following to say:
Under the law, George W. Page, State Bank Commissioner, will act as
receiver. On the court's order appointing him, Mr. Page will qualify by
giving bond in the amount the court may fix.
• •
Mr. Page said he could not predict when the examiners would get far
enough in their work to permit him to make a more precise statement of
the bank's affairs. According to the most recent statements, the resources
of the bank were approximately $1,300,000, with about $900,000 deposits
Included in this sum.
After the closing of the bank, an investigation into its possible connection
with the F. II. Smith Co., of which Representative Frederick N. Zihlman
formerly was a director, was begun. The fact that Samuel J. Henry, head
of the Smith Co., until about two weeks ago, was President of the trust
company, started the inquiry.
The Smith Co. and its directors, including Mr. Zihlman, are under
Indictment on charges of using the mails to defraud.

The closing, on Dec. 19, of the Dairyman's State Bank of
Marengo, Ill., with combined capital and surplus of $50,000,
following a three days' "run" on the institution caused by
the closing of two Genoa, Ill., banks the previous Saturday,
was reported in advices from Marengo on Dec. 19 to the New
York "Times," which, continuing, said:
"Frozen assets," principally farm loans, were given as the cause for
closing the bank, although officials maintain that without the run they
could have weathered the storm.
W. C. 1Voodard, the President, declared that depositors would suffer
no loss.

The consolidation of the First National Bank of Fort
Wayne, Ind., and the Tri-State Loan & Trust Co. of that
city, both capitalized at $1,000,000, was consummated on
Dec. 14 under the 'title of the First and Tri-State National
Bank & Trust Co. of Fort Wayne with capital of $2,000,000.


An item with reference to the merger of these banks appeared
in the "Chronicle" of April 20, page 2577.
That the Citizens' State Bank of Newcastle, Ind., and the
Central Trust & Savings Co. of that place are to unite under
the name of the former, effective Jan. 1, was reported in
advices from Newcastle on Dec. 21, printed in the Indianapolis "News" of the same date. The merger will be brought
about on the basis of $300 a share for stock of the Citizens'
State Bank and $200 a share for the stock of the Central
Trust Co. The enlarged bank will have a capital of
$180,000, surplus of $155,000, and undivided profits of
$50,000, and total resources of $3,500,000. The directorates
of the Institutions will be combined to form a new board,
and Harry E. Jennings, now President of the Citizens' State
Bank, will be President of the consolidated bank, while
Robert H. McIntyre, now President of the Central Trust Co.,
will be First Vice-President. Other officers of the enlarged
bank will be Frank Spence, Second Vice-President; John R.
Milliken, Cashier; Ora Morris, Assistant Cashier, and N.
Guy Jones, Trust Officer. The Citizens' State Bank was
organized in 1873, and the Central Trust Co. opened for
business in 1903.
Further referring to the $3,592,000 embezzlement at the
Union Industrial Bank of Flint, Mich. (our last reference
to which appeared in the "Chronicle" of Dec. 7, page 3580),
Grant J. Brown, former President of the bank, stood mute
when arraigned in the Circuit Court of Flint on Monday
of this week (Dec. 23) on a charge of making a false statement to the State Banking Commission, according to advices by the Associated Press from Flint on that date,
appearing in the New York "Times" of Dec. 24. Mr. Brown
is accused of making a statement that he owed the bank
$55,550 on Dec. 31 1928, whereas the amount was more
than $100,000. His attorney waived the reading of the
complaint, and Judge James S. Parker placed the bail at
$100,000. The prosecuting attorney, Charles D. Beagle, was
reported as saying that he expected to ask Judge Parker
in a few days to set the date for the trial. The fifteen other
former executives and employees of the institution, accused
of embezzlement in connection with the defalcations totaling
$3,592,000, were arraigned recently (Dec. 16) before Judge
Parker. Nine pleaded "guilty" and will be sentenced on
Jan. 2, while the remaining six, who asked trials, will be
heard early in January, the dispatch stated.
That the respective directors of the North-Western Trust
& Savings Bank of Chicago and the Home Bank & Trust Co.
of that city have agreed to consolidate the institutions under
the title of the former was announced on Dec. 20, according to the Chicago "Journal of Commerce" of Dec. 21. A
proposal for the merger of these banks was presented to
the respective stockholders the early part of November (as
noted In the "Chronicle" of Nov. 9, page 2962), but owing
to the inability to agree at that time on certain details,
the plan was rejected. According to F. E. Lackowski, Chairman of the Board of the North-Western Trust & Savings
Bank, the paper mentioned said, these obstacles have been
overcome and the proposal will be again submitted to the
stockholders of the two banks for ratification. Mr. Lackowski was reported as saying:
"This consolidation is not only logical because of the proximity of the
two banks, but appeals to the customers inasmuch as it will give them
improved and enlarged banking facilities. The institution will be the
largest outside of the loop by many millions of dollars."

Under the merger agreement, stockholders a the NorthWestern Trust & Savings Bunk will receive 13,800 shares
of Stock of the enlarged bank, while stockholders of the
Home Bank & Trust Co. will receiive 11,200 shares. The
new organization will be capitalized at $2,500,000, with surplus of $1,000,000, and will have total resources in excess
of $30,000,000. Peter L. Evans, now President of the Home
Bank & Trust Co., will be Chairman of the Board of the
consolidated bank, and Mr. Lackowski will be President.
According to the same paper, the directors of the NorthWestern Trust & Savings Bank have declared an extra
dividend of $4 a share in addition to the regular quarterly
dividend of $3 a share.
Organization of the Security National Bank of Willmar,
Minn., to commence operations on Dec. 21 as an affiliate of
the First Bank Stock Corp. and the affiliation with the holding company of the Clark County National Bank of Clark,
S.D.,were announced last week by P.J. Leeman,Vice-President and Gen. Mgr. of the corporation. John W. Black,



President of the John W.Black Co., which operates an extensive chain of banks in the Northwest, is President of the new
Willmar bank. Mr.Black was elected a director of the First
Bank Stock Corp. at the last meeting of the corporation's
board. The building formerly occupied by the First National
bank of Willmar has been remodeled and redecorated and will
house the new Security National. As chartered, the bank is
capitalized at $100,000 with surplus of $20,000 and undivided
profits of $10,000. E. T. Sletten as Vice-President and
George W. Odell as Cashier will be actively in charge of the
bank's operations as executive officers. Both men are residents of Willmar and bankers of long experience.
The new Security National becomes the fourth unit of the
First Bank Stock Corporation in Central Western Minnesota.
Affiliated banks are now operating at Litchfield, Benson and
Graceville. The Clark County National is the eleventh
affiliate of the First Bank Stock Corporation group in South
Dakota. It serves an extensive agricultural territory between
Watertown and Huron. The bank is capitalized at $25,000
with surplus of $20,000 and undivided profits of $25,210.
Deposits as of Oct.4 were $412,898 and total resources $507,458. Officers are R. J. Mann,President; E. M.Jones, VicePresident; Charles Carpenter, Cashier and L. L. Mann,
Assistant Cashier.
Another announcement by Mr.Leeman last week (Dee.20)
was that a charter for a new National bank in East Grand
Forks, Minn., had been approved by the Comptroller of the
Currency and that the Minnesota National Bank had been
organized under the sponsorship of the First Bank Stock
Corporation. East Grand Forks has recently been without
banking facilities. The new bank will commence operations
on Thursday, Jan. 2. The building of the former First Bank
has been purchased and is now being renovated and redecorated. As chartered, the Minnesota National will have capital of $50,000 and surplus and undivided profits of $15,000.
Mortimer M. Hayden of Saint Paul, Treasurer of the First
Bank Stock corporation, will be its President. E. A. Hoff
of Jamestown, N. D., a banker of many years experience in
Minnesota and North Dakota, will become Vice-President
and Cashier. Mr. Hoff is now the receiver of the closed
First National Bank of Langdon. Monte Lockwood, who has
been on the staff of the National Bank and Trust Co. of
Jamestown, becomes Assistant Cashier.
Still more recently (Tuesday, Dec. 24) Mr. Leeman announced that the First National Bank of Lemmon,S. D., has
affiliated with the corporation, making the twelfth South
Dakota institution to enter the group. The Lemmon bank
is the 82nd affiliate of the corporation whose resources are
now in excess of $450,000,000. Established Dec. 8 1925,
to provide banking facilities after the closing of Lemmon's
three banks, the First National has remained the only bank
in the city. It serves an unusually large agricultural area.
The bank is capitalized at $30,000 with surplus and undivided profits of $38,480. In the near future the capital is
to be increased to $50,000, Mr. Leeman said. Deposits as of
Oct. 4, the date of the last National bank call, were $611,547.78 and resources $710,604.66. Officers are: Wilson
Eyer, President; George P. Allen and Robert Raney, VicePresidents; J. K. Clark, Cashier and J. Howard Eyer and
Miss Lila Tarter, Assistant Cashiers. In conclusion the
announcement says:
Other South Dakota affiliates of the First Bank Stock corporation are
the Aberdeen National Bank & Trust company and the First State Savings
Bank of Aberdeen, the Clark County National of Clark, the First National
and the Potter County Bank of Gettysburg,the First National of Highmore,
the Security National, now organizing in Huron; the First National of
Lemmon, the First National of Miller, the First National of Ree Heights,
the First National of St. Lawrence and the First National Bank & Trust
Co. of Vermilion.

On Thursday of this week (Dec. 26) Mr. Leeman announced that the First National banks of Harvey and New
England, N. D., the two largest depositories in the "Peterson
Line" of banks, have affiliated with the corporation. With
these additions to the group, the First Bank Stock Corporation now controls, it is stated, 84 banks in the Ninth Federal Reserve District, 14 of which are located in North
Dakota. Total resources are reported as being in excess of
$451,000,000. August Peterson, Mayor of Harvey, will remain as President of both institutions and their staffs will
continue without change. It is added that "Mr. Peterson has
spent 30 years developing the Peterson line which he built
to include ten banks. The remaining eight smaller banks

[voL. 129.

announced by C. T. Jaffray, Chairman of the Board of the
Corporation. The new company will have a capital of
$6,000,000 with an initial surplus of $1,500,000 and is to
be known as the First Securities Corporation. It will commence operations immediately after the first of the year
and will take over the securities and investment businesses
of the First Saint Paul Co. and the First Minneapolis Co.,
the allied investment houses of the First National banks
of Saint Paul and Minneapolis. Headquarters will be maintained in Saint Paul and Minneapolis. Branch offices will
be opened in the larger cities in the Northwest in which
affiliated banks of the corporation are situated and a general investment service will be developed, we are told, in
the smaller cities and towns through the member banks,
"thus extending the same opportunity for safe and profitable investment to the residents of the smaller centers that
is afforded in the metropolitan cities." Sales and distribution operations of the corporation will be operative through
two divisions. The Saint Paul division will include eastern
Minnesota, Wisconsin, upper Michigan and Montana. Minneapolis will distribute to Western Minnesota, North and
South Dakota. The personnel of the First Securities Corporation is a consolidation of the executive staffs of the First
Minneapolis Co. and the First Saint Paul Co., with Robert
W. Webb, President of the First Minneapolis Trust Co.
and the First Minneapolis Co., as Chairman of the Board.
Officers will be:
Julian B. Baird, President
N.P. Delander, Vice-President
I. H. Overman, Vice-President
Henry E. Atwood, Vice-President
A. A. Greenman, Vice-President
Hugh W. Martin, Secretary-Treasurer

G.C. Tyler, Assistant Treasurer
Leo. L. Quist, Assistant Treasurer
Henry Verdelln, Assistant Secretary
Charles B. Chrisman, Assistant Secretary
Frank H. Carleton, Assistant Secretary

The announcement, which comes from the Minneapolis
office of the corporation, goes on to say:
In announcing the launching of the new corporation, Mr. Jaffray pointed
out a considerable economy and increased efficiency would result from
elimination of duplication in the sales organizations of the First Minneapolis Co. and the First Saint Paul Co.
'iConcentration of distribution of securities in one organization will
make possible a more intensive development of the territory, and will
warrant the opening of branches in localities which would not support
an office for either company, operating separately," Mr. Jaffray said,
"By developing agencies through the affiliated banks in the smaller cities,
we will be able to offer the businessman and investor at those points an
investment service that hitherto they have lacked. Such a service should
be able to direct the investment power of the Northwest into sound, conservative and profitable channels.
"Our combined capital of $7,500,000 and our extensive distribution,
will enable the First Securities Corporation to carry a much broader list
of investment offerings and will make the company the largest distributor
of Securities in the Ninth Federal Reserve District. Our buying and distributing power will mean that even the largest industries in the Northwest
will have at their door a securities organization capable of underwriting
investment issucs of a size which in the past have had to seek a New
York or Chicago market.
"From a territorial standpoint, it will mean that the Northwest should
be able to meet its own financing requirements on a basis of profit and
safety to the investor."

Affiliation of the Central National Bank of Minneapolis
with the Northwest Bancorporation of that city was announced on Dec. 14 by officers of both institutions, according to the Minneapolis "Journal" of the same date. Combined capital, surplus and undivided profits of the acquired
bank are $187,179, deposits $1,904,523, and total resources
$2,217,763. The institution, which has served the outer part
of Central Avenue since 1907, erected a new building several
years ago when it outgrew its old quarters, it was said.
The officers are: J. W. Barton, Chairman of the Board;
J. Schmidler, President; E. L. Forsythe, Vice
-President, and
G. M. Christoferson, Cashier.
Minneapolis advices on Dec. 18 to the New York "Times"
reported that another bank had joined the bancorporation,
namely the Continental National Bank of Lincoln, Neb.,
with resources of $6,000,000, on Dec. 17. The bank will
remain under its present management, the dispatch said,
with C. T. Knapp as Chairman of the Board, and E. H. Van
Horne as President. The institution was organized in
1909 and has combined capital, surplus and undivided profits
of $429,349, and deposits of $5,290,359.
Advices this week from Minneapolis (Dec. 26) to the
"Wall Street Journal" report that the First National Bank
and the Scanlan-Habberstad Bank, both of Lanesboro,
Minn., have consolidated under the title of the ScanlanHabberstad Bank & Trust Co., and the enlarged institution
has become affiliated with the Northwest Bancorporation,
Increasing the number of banks in the group to 86 and the
combined resources to *474,000,000.

in the chain located along the Soo Line in North Dakota
are not affected by the affiliation."
Yesterday (Dec. 27) organization of a new major subsidiary of the corporation to extend an investment service
John Dudley Bird, a Vice-President of'the First National
throughout the entire Ninth Federal Reserve District was Bank of Milwaukee, Wis., died recently at St. Mary's Hos-

DEC. 28 1929.]



pital, that city. Mir. Bird was also President of the Oakland
The statement issued by the Canadian Bank of Commerce
Avenue State Bank of Milwaukee and the Cudahy State (head office Toronto) just made public, attracts attention,
Bank, Cudahy, Wis. He was 61 years of age.
showing as it does record figures for the twelve months end-

ng Nov. 30 1929, in practically every department. Total
Announcement is made by William S. Ryland, President assets increased by $56,543,000 to the record figure of $801,-

of the North Carolina Bank & Trust Co.(head office Greensboro) of the formation of the North Carolina Corporation, a
State-wide organization, as an affiliate to handle the securities, investment, mortgage loan and insurance departments
of the bank. The capital is $250,000 and the services of the
corporation are now available to all sections of the two
Carolinas through thirteen offices located in ten strategic
industrial and commercial cities. Oscar W. Burnett, formerly with the Guaranty Trust Co. of New York and for the
last several years the Southern representative of the Guaranty Co. of New York, was elected President of the North
Carolina Corporation and entered upon his new duties
Jan. 1. Continuing the announcement says in part:

225,808. This great increase was largely the result of higher
loans and a gain in cash, these additions being made possible
mainly by new deposits to the extent of about $25,000,000 and
by new shareholders' funds of $9,949,000 paid in by subscribers to the new stock issue announced some months ago.
That the bank's funds have been fully and profitably employed is revealed by the net profits for the year of $5,066,229, an increase of more than $1,000,000 over 1928. In all
about $10,000,000 was available in the profit and loss
account for distribution, made up of the carry-over of
$304,000 from last year, the $5,000,000 odd mentioned
above and $4,974,610, the premium on the new shares issued.
The latter amount has been transferred to reserve fund
Mr. Burnett is well known in the securities field throughout the South bringing this to the same figure as paid-up capital, $29,798,and East, and especially in North and South Carolina where he has a very
wide acquaintance. His office is located at the Greensboro, N. C., office 010.
of the North Carolina Bank and Trust Co.
After dividends and bonuses to shareholders of about
Mr. Burnett first became associated with the Guaranty Trust Co. of
$3,500,000, writing down premises account by $400,000,
New York in 1921, immediately out of college, serving in practically all
departments of the New York office of that organization. For five years, allowing over $700,000 for taxes, etc., and transferring
dating from 1922, Mr. Burnett MIS with the New York office of the Guar- $249,000 to the pension fund operated for the bank's emanty Co.,serving in various branches of the bond department, both buying
ployees, about $475,000 was carried forward. The suband selling.
Since April, 1927, Mr. Burnett has been in charge of the Southern office stantial progress of the Canadian Bank of Commerce is
of the Guaranty Co. of New York located in Atlanta and covering the shown in other directions. Nearly $8,000,000 was added to
states of Virginia, North Carolina, South Carolina, Florida, Georgia.
the cash holdings of the bank, which include $32,890,000
Alabama, Mississippi and Louisiana.
A native of Murfreesboro, Tenn., Mr. Burnett obtained his preparatory in gold and silver coin. Combining an increase of $28,000,000
education at Richmond Academy, Richmond, Va., graduating in 1917. in commercial loans with one of $14,000,000 in letters of
and his college education at Mercer University, Macon, Ga.. where he was
credit issued, an important contribution is found to the credit
graduated in 1921. . . .
The North Carolina Bank & Trust Co., of which the North Carolina structure of Canada for the development of domestic and
Corporation is a subsidiary, was formed last September by the union of six
foreign trade. The usual feature in statements of the Canawell known and long established Carolina banking institutions for the purpose of providing the extensive commerce and industry of the two Carolinas dian Bank of Commerce of a strong liquid position is again
with facilities paralleling their activities and based upon long experience brought out. Total cash holdings of about
in the sister states. The bank is, therefore, essentially Carolina in character
together with $54,000,000 due from other banks in the form
although State-wide in scope and nation-wide in extent of operation
The bank has major offices In Greensboro, Raleigh, Wilmington, Rocky of cheques and balances, high-grade securities of about
Mount, High Point, Salisbury. Burlington and Spencer, and resources of $77,000,000, call loans of $160,000,000 and $1,250,000 on demore than $44,000,000. Angus W. McLean, former Governor of North
Carolina, is Chairman of the Board of Directors; J. V. Grainger, ofWilming- posit with the Dominion Government comprise liquid assets
ton, is Vice-Chairman, Julius W. Cone, of Greensboro, is Chairman of the of over $370,000,000. This latter amount represents a
executive committee and S. G. Vaughn Vice-Chairman. William S. Ryland liquid reserve of over 50% of the liabilities to the public and
is President of the bank and Isaac B. Grainger is executive Vice-President 467 of the total liabilities of the bank,including shareholders'
funds. The annual meeting of the shareholders is announced
"The Bourbon News" of Paris, Ky., in its issue of Dec. 10 for Jan. 14 next, when all the accounts will be submitted
reported that White P. Varden had resigned as Cashier and when the Rt. Hon. Sir Thomas White, K.C.M.G.
and a director of the Security Bank & Trust Co. of Mays- Vice-President, and Mr. S. H. Logan, General Manager of
the bank, will speak on the economic position of Canada.
ville, Ky., effective Jun. 1. Mr. Varden went to Maysville
from Paris about three years ago, following the failure of
the Farmers' & Traders' Bank of Maysville (together with
Its affiliated institution, the Equitable Trust Co.) to become
receiver for that bank. The closing up of the defunct
bank's affairs has not yet been completed, and Mr. Varden
has announced that he will remain in Maysville until they
are settled. Mr. Varden has been with the Security Bank &
Trust Co. as Cashier and a director since its organization
a year and a half ago, and his work has done much to
bring about the progress of the institution.

The Comptroller of the Currency on Dec. 16 issued a
charter for the Commercial National Bank of Greenville,
Miss., with capital of $120,000. The institution represents
a conversion of the Commercial Bank of Greenville. W. P.
Kiretschmar Is President and A. M. Lytell, Cashier.
E. C. Barkley, heretofore Senior Active Vice-President
and Cashier of the San Jacinto Trust Co. of Houston, Tex.,
on Dec. 13 was appointed Vice-President and Trust Officer
of the Second National Bank of Houston, succeeding Hudson P. Ellis, whose death occurred on Oct. 7, according to
the Houston "Post" of Dec. 14. Mr. Barkley was also made
a member of the Board of Directors. Outlining the banking
career of the new Vice-President, the "Post" said:
His banking experience covers about 17 years. He was connected with
the Bankers' Trust Co. and Guardian Trust Co. prior to his connection with
the institution which he has just left.
His association with the San Jacinto Trust Co. dates back eight and
a half years to the time when that institution was young and occupied a
small suite of offices in the Union National Bank Building. Over that
period he has contributed largely to the growth and development of that
institution through the strength of his executive ability and the force of
his personality, officials of the bank declared.

The Seaport National Bank of Houston, Tex., with capital of $250,000, was placed in voluntary liquidation on Nov.
12 1929. The institution was absorbed by the City Bank &
Trust Co. of Houston, as noted in our issue of Oct. 5 last,
page 2176.

The Bank of Nova Scotia (head office Halifax) is increasing its paid-up capital from $10,000,000 to $12,000,000,
according to the Toronto "Globe" of Dec. 19, which stated
that the increase of $2.000,000 is being effected by means
of the issuance of 20,000 shares of new stock (par value
$100 a share) at the price of $250 a share to stockholders
of record Dec. 31 on the basis of one new share for each
five shares held. An official statement In the matter, issued
Dee. 18 from Halifax and signed by J. A. McLeod, General
Manager of the bank, reads as follows:
At a meeting of the board of directors of this bank, held on the 17th inst.,
it was decided to issue at $250 per share, to shareholders of record of
Dec. 31 1929, twenty thousand (20,000) shares of the authorized capital
of the bank of the par value of two million dollars ($2,000,000), increasing
the aid-up capital from $10,000,000 to $12,000,000.
The Bank Act requires that the new share.; be issued to existing shareholders pro rata, but that no fractional shares be issued. As there are
20,000 shares to be allotted, against 100,000 already paid up, allotment
will be made in the proportion of one share of the new to every five
shares of the old. Notices of the allotment will be sent to shareholders
as soon as possible after Dec. 31 next.
As no fractions of shares may be issued, those shareholders whose holding on Dec. 31 is not a multiple of five will not receive the fractional
shares of new stock that otherwise might be due them. It is the intention
of the directors to dispose of any such fractions that may remain after
allotments have been accepted and to distribute any proceeds received in
excess of the issue price pro rata to the shareholders from whose holdings
the fractions arise.

Advices from Toronto to the "Wall Street Journal," under
date of Dec. 24, stated that at the current price of the stock,
"rights" are worth approximately $20 a share.

The New York Stock Market has shown a better tone
the present week, though there have been occasional periods
of profit taking when the upswing was temporailly checked.
The weekly statement of the Federal Reserve Bank, issued
after the close of business on Thursday, recorded a further
llecrease of $58,000,000 in brokers' loans in this district.
Call money renewed at 5% on Monday, advanced to 6% on
Thursday and closed at that rate on Friday. The market
displayed considerable irregularity during the early part of



[VOL. 129.

the short session on Saturday, but enjoyed a brisk rally United States Steel common, which forged ahead to 169,
during the closing hour. In the rebound many of the though it slipped back to 165 at the close with a loss of
market leaders recovered the greater part of losts experienced point, American Can which dropped from 117 to below 115
in Friday's slump. United States Steel moved briskly for- and General Electric which sold up to 236 and later dropped
ward to 16434 and closed at 163, a net gain of one point. to 230. Public utilities continued to move with the leaders,
Railroad issues also were in good demand and averaged from Commonwealth Power closing with a net gain of 103 points
2 to 5 or more points higher. The outstanding strong stocks at 1153 followed by Brooklyn Union Gas with an advance
of the group included Chesapeake & Ohio, which shot up- of four points to 13634. Mail order stocks were weak,
ward 48% points to 2033/2; Atlantic Coast Line which ran up Montgomery Ward slipping back about 13/2 points, while
33j points to 171; New York Central which had gained 3% Sears, Roebuck dipped about two points. Railroad shares
points as it closed at 17234; Norfolk & Western, which im- were down and oils, coppers and motors were without noteproved 234 points to 228, and Pere Marquette, which worthy movement.
surged upward 10 points to 160. Merchandising stocks were
firm and moved sharply forward under the leadership of
Montgomery Ward which closed at 473 with a net advance
of 23/2 points. General Electric gained 2 points to 226;
Week Ended Dec. 27.
Number of
Municipal &
Foreign Bonds.
Columbian Carbon forged ahead 10 points to 162. J. I.
Case closed at 187 with a gain of 7 points and United States Monday
Industrial Alcohol moved ahead 33% points to 13134. Motor Tuesday
shares, with the possible exception of Auburn, which im- Thursday
proved 8 points to 185, were in little demand and copper Friday
11 153.120 326.788500
stocks displayed only moderate gains.
On Monday stocks were in many cases, under pressure
Sales at
Weak Ended Dec. 27.
Jan. 1 to Dec. 27.
New York Stock
and dipped to new low levels for the present movement.
In the late afternoon a brisk rally developed which carried
Stocks-No. of shares_
13,153.320 17,591,860 1,116,520,500
a number of stocks to higher levels,but last minute selling
Government bonds_
again brought the final quotations to the lowest levels of the State and foreign bonds 82,473,000 57,639,000 $140,129,000 3186,089.750
day. Public utilities bore the brunt of the early decline, Railroad dr misc. bonds 26,788,500 24,095,500 2,169,901,300 2,205,217,176
but most of them recovered to some extent before the close
838,784,500 839.406,000 52,960,242,950 113,137,133,581
Railroad stocks sold sharply downward and oil issues also DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
were lower, though the recessions in this group were comBALTIMORE EXCHANGES.
paratively small. The market displayed considerable
improvement on Tuesday and the general tone was better
Week Ended
Dec. 27 1929.
Shares. Bond Sales. Shares. Bond Sales. Shares. Rend Sales.
all around. Some selling made its appearawe late in the
87.000 a93,745
day, and prices eased off somewhat though the final quota- Saturday
33,000 al02,558
tions were moderately higher. Motor stocks were stronger Tuesday
14,000 a138.455
than for several days and some of the more active issues Thursday
42,000 090,703
22,000 a27,500
scored fractional gains. Copper shares were fairly active Friday
364,855 5118.000 450,961 5105,800
throughout the day and advances of a point or more were
registered by Anaconda and Magna Copper and most of the Prey, week revised 371,098' 8178,000 454,177 $115.200 18,827 $67,90
* In addition, sales of rights were: Saturday,200; Monday,2,404: Tuesday, 1,646
rest of the group closed with substantial gains. United
States Steel common, was in active demand and ran quickly Thursday, 1,110.sales of rights were: Monday. 55,200; Thursday, 132,200; Friday.
a In addition,
upward to 164, but slipped back later in the day and closed 37,800.
at 16134 with a net gain of 13 points. American Can was
up two points at 11034, Allied Chemical and Dye closed at
Bank clearings this week will again show a decrease as
2443 with a net gain of 43% points and Laclede Gas Light
compared with a year ago. Preliminary figures compiled by
scored a net gain of five points at 205.
The New York Stock Exchange, the Curb Market and the us, based upon telegraphic advices from the chief cities of
commodity markets were all closed on Dec. 25 in observance the country, indicate that for the week ended to-day (Saturday, Dec.28) bank exchanges for all the cities of the United
of Christmas day. The market displayed a firmer tone on
States from which it is possible to obtain weekly returns
Thursday and brisk advances took place in most of the
will fall 15.9% below those for the corresponding week
active market leaders. Railway shares showed considerable
last year. Our preliminary total stands at $9,437,983,004,
uncertainty, some moving ahead, while others, equally
against $11,221,829,548 for the same week in 1928. At this
popular, slipped down to lower levels. Athison for instance,
centre there is a loss for the five days ended Friday of 13.1%.
moved up 3 points to 223, followed by New York Central
Our comparative summary for the week follows:
with a gain of 33' points at 1713/2 and Louisville & Nashville with nearly two points gain, while on the other hand,
Clearings-Returns by Telegraph.
Week Ending Dec. 28.
Wabash dropped down a point to 563/2, Norfolk & Western
was off a point at 228, Lehigh Valley dipped 1 point to 73 New York
$4.624,000,000 $5,323,000.000 -13.1
507,706,735 -14.5
and Del. Lack. & Western dropped 2 points to 138. United Philadelphia
334,000,000 -9.6
States Steel common was strong throughout the day and Kansas City
109,600,000 -4.9
closed at 166 with a gain of 434 points. American Can SanLouis
improved 4 points to 1145 , Amer. Tel. & Tel. advanced Los Angeles
about 332 points to 2183, General Electric (new) was up Detroit
172,014,829 -17.9
nearly 2 points as it closed at 58% and Westinghouse Electric Baltimore
48,448,011 -10.7
closed at 13534 with a net gain of 7 points. Copper shares New Orleans
Thirteen cities,5days
showed decided improvement, particularly Anaconda which
7,645,594,221 -11.3
925,986,370 +18.9
had gained over 2 points at its final price of 733 . Kennecott Other cities,5
Total all cities,5 days
gained a point and closed above 57, and Calumet & Arizona All cities. 1 daY
2,650,268,957 -40.7
improved % point to 84. The strong stocks of the public Total ail cities for week
9.437.083.004 11.221.829.548 -15.9
utilities were Standard Gas & Electric, which gained 7
Complete and exact details for the week covered by the
points and crossed 112, American & Foreign Power which
forged ahead 6 points to 86, American Water Works which foregoing will appear in our issue of next week. We cannot
improved 8 points to above 84 and Columbia Gas & Electric furnish them to-day, inasmuch as the week ends to-day
which closed at 70 with a gain of 4 points. Motor shares (Saturday) and the Saturday figures will not be available
were stronger, Auburn closing at 2013. with a gain of 163j until noon to-day. Accordingly, in the above the last day
points followed by Hudson with an advance of 33/2 points of the week has in all cases had to be estimated.
In the elaborate detailed statements, however, which we
to 55, and Hupp with over a point to 213. Packard,
Chrysler, Peerless, Nash and Mack Truck also registered present further below, we are able to give final and complete
results for the week previous-the week ended Dec. 21.
substantial gains.
The market opened fairly strong on Friday and the brisk For that week there is a decrease of 13.1%, the aggregate
upswing in the early trading carried many of the speculative of clearings for the whole country being $12,116,845,193,
favorites to higher levels. As the day advanced consider- against $13,937,145,113 in the same week of 1928. Outside
able selling appeared and the market lost much of its early of this city the decrease is 9.2%, the bank exchanges at this
strength. The strong stocks in the forenoon rise included centre having recorded a loss of 15.2%. We group the cities

DEC. 28 1929.]


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, there is a loss of 15.1%
and in the Boston Reserve district a loss of 20.3%, but the
Philadelphia Reserve district shows a gain of 0.2%. In the
Cleveland Reserve district the totals record a decrease of
9.9%, in the Richmond Reserve district of 1.0% and in the
Atlanta Reserve district of 6.2%. The Chicago Reserve district has suffered a decrease of 13.5%, the St. Louis Reserve
district of 12.1%, and the Minneapolis Reserve district of
8.4%. The Kansas City Reserve district has an increase of
3.1% to its credit, but in the Dallas Reserve district clearings have sustained a loss of 1.5% and in the San Francisco
Reserve district of 8.5%.
In the following we furnish a summary by Federal Reserve

Week Ended Dec. 21.
Clearings at



Federal Reserve Diets.
let Boston ____12 cities
2nd New York_11 "
3rd Philadelpla 10 "
ilth Cleveland__ 8 "
6th Richmond _ 6 "
13th Atlanta_ _--12 "
7th Chleago ---20 "
8th St. Louis._ _ 8 "
9th Minneapolis 7 "
135,823 880
10th KansasCity 11 "
11th Dallas
5 "
12th San Fran_ _17 "
127 cities
()605614s N Y. City

31 cities






-15.1 6,968,915,493 4,933,333,394
-13.1 11,155,408 196 8.461,507.861

5,016,409,953 -9.2 4.314,820,736
494 539.149 -4-ii

ena g.21 aan

Ian ORO a n

We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended Dec. 21.

Clearings al


Inc. or

First Federal Reserve Dist rict-Boston 605,600
547,262 +10.7
3.777,469 -9.5
-Boston -- 480,000,000 612,000,000 -21.6
Fall River_ - _ _
1,633,276 -12.4
1,310,864 -3.3
New Bedford-1,102,492
1,348,846 -19.4
Springfield.-- 5,362,059
5,142,006 +4.3
3,869,431 -14.0
17,327,193 -7.5
New Haven...
8,820,158 -14.2
R. 1.-Providenee
16,992,500 -4.8
707,703 -6.9
Total(12 cities)


673,471,718 -20.3




Second Feder al Reserve D istrict-New York.
N. Y.-A1bany-6,994,053
6,496,702 +7.7
1,369,071 -7.4
63,473,959 -7.2
1,236,352 -32.0
Jamestown_ __ 1.360,587
1,187,801 +14.5
New York
7,560,704,373 8,920,735,160 -15.02 6,840,587,460 4,817.077,857
14,781,178 -7.1
6.510,624 -31.8
5,015,262 -4.0
N. J.
1,118,891 -25.3
Northern N. 3_
64,732,250 -9.9
Total(11 cities) 7,702,199,890 9,086.657,250 -15.1 8,968,915,493 4,933,333,394
Third Federal Reserve Dist act-1.111W elphla-Altoona
1.756,118 -10.1
Bethlehem_ -5,611,934
5,673,320 -1.1
1,192,316 -1.1
1,841,920 +4.4
Philadelphia_ _ 702,000,000 608,000,000 +0.6 550,000,000
4,118,959 -1.6
6,667.432 -21.1
Wilkes-Barre_ _
4,571,540 -19.8
2,230,354 -8.2
5,684,497 +8.1
Total(10 cities)












Fifth Federal Reserve Dist rIct.-Richm ond.W.Va.-Hunt'g'n
1,287,728 -0.1
7,370,967 -27.5
Richmond __55.476.000
53,154,600 +4.4
2,144.000 +6.1
. 105,867,054 106,368.299 -0.4
29,629,029 -6.4






Sixth Federal Reserve Dist rict-Atlant a.
*3.000.000 3,061,376 -2.0
24,318,538 +2.6
68.017,620 -12.6
2.364.548 +15.1
2,099,882 +0.5
18,856.016 -13.2
2,668.000 +22.6
29,445,098 -8.8
2,215,921 -4.0
3,221,000 -33.6
Miss -Jackson..
57,798,821 -3.3




Total(6 cities).

Total(12 cities)










970,610,536 1,122,745.356 -13.5



Eighth Federa I Reserve Dls tact-St.Lo uis5,909,321 -10.1
Intl -Evansville.
Mo.-St. Louis_ _ 146,000,000 164,600,000 -11.3
45,460,719 -16.9
672,150 -1.3
30,417,222 -14.3
16,412.408 -0.1
-Little Rock
8415,307 -24.3
1,401,246 -6.9



265,288.373 -12.1



Ninth Federal Reserve Dis trict-Minn eapolis11,811,131
12,244,774 -25.2
91,310,352 -1.0
Minneapolls_ -31,981,142
36,192,642 -20.5
St. Paul
2.108,661 -5.2
1,375,914 -16.1
S. D.
-Aberdeen •
806,202 -22.5
4,262,000 -14.6




Total(8 cities).

Total(7 cities)





Tenth Federal Reserve DIs triet Kens as City441,354
371,520 -5.2
467,237 +37.9
3,710,801 -9.4
43,299,268 +8.9
3,983,436 -6.9
-Topeka _
9,277.667 -18.8
Mo.-Kan. City. 144,823,791 140,308.310 +3.2 134,074.121
6,264,199 +1.5
St. Joseph.- -35,010,299 +3.4
Oklahoma City
1,180,406 -3.7
-Col. SRN
1,547,467 +15.8





-Da Ilas
Eleventh Fed ral Reserve District
1,574,593 +9.5
63,456,104 +2.6
18,690,562 -10.9
Fort Worth._ 6,797,000 -15.4
5.980,649 -2.4





Franci sco47,324.832
-9.6 183,806,000
-7.8 201,988.000


Total(11 cities)

Total(5 cities)





Twelfth Feder al Reserve D (strict-San
-Seattle -_
Ore -Portland...
Utah-S. L. City
-Fresno__ 9,483,847
Long Beach -213,122,000 235,647,000
Los Angeles _
Sacramento _ - 7,894,921
San Diego.
San Francisco_ 210.156,238 228,064,710
San Jose
Santa Barbara.


Total(17 cities) 606,035,186 662.366,472 -8.5 568.490,384 444,832,244
Grand total (127
12116845,193 13937145,113 -13.1 11155408,196 8,461,507,861
Outside NewYork 4,556,140,820 5,016.409,953

-9.2 4,314,820.736 3,644,430.004

Week Ended Dec. 19.
Clearings 68



Inc. or



Fourth Feder al Reserve 13 istrict.-Cle
153,911,532 156.166,138
-Pittsburgh. 186,522,383 224.470,873


Seventh Feder al Reserve D strict-Chi cago
266,475 -14.6
-Adrian _ _
Ann Arbor_
1.168,545 -18.3
206,636,491 277,201,465 -25.5 181,639,036
8,516,646 -11.2
Grand Rapids _
2,752,561 +1.9
4,405,972 +2.2
-Ft. Wayne
23,440,000 -10.2
Indianapolis_ _ _
3.389,353 -19.4
South Bend...
5,712.637 +0.4
Terre Haute_ _
31,735,913 -3.1
2,888,965 +3.9
8,850,414 +18.1
Des Moines_
6.787,306 -4.9
Sioux City_ _
1,611,189 -3.9
2,490,456 -34.2
Ill.-Bloom'ton_ _
652,427,985 727,473,883 -10.3 699,044,829
1,431,519 -22.8
5,768,076 -8.3
3,964,013 -3.3
2,889,968 -19.9
Total(20 cities)

Week End. Dec. 21 1929.







St. John
Moose Jaw
Fort William_
New Westminster
Medicine Hat.. _ Peterborough
Prince Albert--- Moncton






Total(31 cities)








(VOL. 129.




£27,807 Germany
31.164 Czecho-Slovakia
Trading on the Curb Exchange this week was very quiet France
27,893 China
volume of business was the smallest in some time. British India
101,095 Hong Kong
in fact the
Other countries
18,205 British India
The week began with stocks under pressure resulting in a
Other countries
general loss in values. As the week progressed prices im£748,169
proved somewhat though trading continued dull. Utilities
Nov. 22.
Nov. 15.
(In tact of rupees)
Nov. 30.
continue to command attention. Allied Power & Light
Notes in circulation
% to 305 moved up to 36 and Silver COIII and bullion in India
com. after early loss from 33
-_ _
--Silver coin and bullion out of India
reacted finally to 34. Amer. & Foreign Power warrants Gold coin and bullion in India
dropped from 62 to 5*4 then rose to 65%, closing to-day Securities (Indian Government)
Securities (British Government)
at 65. Amer. Gas & Elec, com, lost six points at first to
The stock in Shanghai on the 7th instant consisted of about 84,600,000
106, advanced to 120 and finished to-day at 1193 . Com- ounces in sycee, 128,000,000 dollars and 5,800 silver bars, as compared
dollars and 7,300 silver
with about
monwealth Edison on few transactions weakened from bars on the 83,900,000 ounces in sycee. 127.000,000
311th ultimo.
Quotations during the week:
24434 to 235, recovered to 245, and ended the week at
Bar Gold
-Bar Silver per Oz. Std.2363', . Electric Bond & Share corn. sold down from 783
Per Oz. Fine.
2 Mos.
84s' 11%d.
to 723 , then up to 82
the close to-day being at 7934. Dec. 5
84s. 1154d.
Dec. 6
22 11-16d.
Northern States Power corn. eased off from 162 to 160y, Dec. 7
Ms. 113d.
84s. 1154d.
moved up to 173 the final transaction to-day being at 172. Dec. 9
84s' 1054d.
22 11-16d.
Dec. 10
Standard Power & Light corn. after early loss from 115 to Dec. 11
84s. 11d.
22%d. _
84s. 11.25d.
105, recovered to 1343 ,but reacted finally to 125. Changes
The silver quotations to-day for cash and two months' delivery are
elsewhere in the list for the most part were small. Aluminum respectively 3-16d. and ;id. above those fixed a week ago.
Co. sold up from 2744 to 3043'. Amer. Cigar corn, was
conspicuous for a drop from 95 to 783', the close to-day
being at 79. Glen Alden Coal after a loss of a point to 109
The daily closing quotations for securities, &c., at London,
during the week to-day jumped to 118. Lehman Corp. as reported by cable, have been as follows the past week:
declined from 713i to 685 and sold finally at 68%. Oil
Dec. 21. Dec. 23. Dec. 24. Dec. 25. Dec. 26. Dec. 27.
stocks were dull.
21 13-16
Silver, p. °a.d _ 21 15-16 21 7-16
A complete record of Curb Exchange transactions for the Gold,p.fine oz. 84s.11% d. 843.1134d. 84s.115id.
Consols, 2)%
week will be found on page 4124.
Bonds (Par Value).
Week Ended
Dec. 27.

(No. Shares)














British, 5%
French Rentes
(In Paris)_fr_
French War L'n
(in Paris)Jr_ ----












The price of silver in New York on the same days has been:


Sliver in N. Y., per oz. (eta.):





gommercial andWiscellanzonsROW
Foreign Trade of New York-Monthly Statement.

We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of
Dec. 11 1929:
The Bank of England gold reserve against notes amounted to £133,725,605
on the 4th instant (as compared with £134,712,194 on the previous
Wednesday) and represents a decrease of £20,180,710 since April 29 1925
-when an effective gold standard was resumed.
The South African gold available in the open market yesterday amounted
to about £375.000. The price was fixed at 84s. 113%d. per fine ounce,
at which India secured £40,000,the home trade £38,000 and the Continental
trade /50,000. The balance of about £245,000 was obtained by the Bank
of England at the statutory buying price.
The French Exchange having moved in favor of sterling there have been
no withdrawals from the Bank of England for France during the week
under review. The following movements announced by the Bank show a
net influx of £3,277,426:
Dec. 7. Dec. 9. Dec. 10. Dec. 11.
Dec. 5, Dec. 6.
£47 £1,158,742 £364,377 5556,000 .047.444 £1,010,880
The receipts include £2,000,000 in sovereigns from Australia, £500.000
from South Africa and about £570,000 from Argentina.
The following were the United Kingdom imports and exports of geld
registered from mid-day on the 2d instant to mid-day on the 9th instant:


British South Africa
Other countries


British India
Other countries


The transvaal gold output for the month of November last amounted to
861.593 fine ounces, as compared with 888,690 fine ounces for October
1929 and 872,484 fine ounces for November 1928.
Silver has been a steady market. Following a rise on the 5th inst. of
3-16d. and 54d. in the cash and two months' prices respectively, quotations
reach 22%d. for both deliveries, but fluctuations since have been limited
to 1-16d. The steadiness has been due to more enquiry from China, influenced doubtless by the disturbed situation in that country. Demand
has been met mainly by re-sales. Although the Indian rates have been
affected by the news from China, the Bazaars have not been active, while
America has both bought and sold, but only on a moderate scale.
The cash and two months' quotations were quoted level on the 5th inst.
but have since varied between even rates and 1-16d. premium on forward
The following were the United Kingdom imports and exports of silver
registered from mid-day on the 2d instant to mid-day on the 9th instant.

Merchandise Movement at New York.





171,501,300 168.712.467 1764.80.924 148,120,044
188,138.0491173.828.482 187.045,251 135,898,81
March_.-- 187,708,168185,264,893209,690,365 168,891,788
200,158.4251165,919,118 159,917,637 130,785.040
188,510,6671157.560.673 132,845,534 150,186,285
167,839,901 144,666,805 151,986,551 147,075,390
166.191,360 149,390,965 168,829,725 147,613,519
August...168,711,6341154,359,944 143,450.060 139,961,583
176,246,040150,470,783 149,465,106103,008,757

Customs Receipts
at New York.





1615005544 1450 17213 1479 7111531271 541222261.770,647232,805,160

Movement of gold and silver for the nine months:
Silver-New York.

Gold Movement at New York.


January -February _



178,905,119 17,125,255







50,866,191 4,344,061
24,536,938 1,051,75
96,975,664 2,130,725
94,843,016 2,015,676
82,603.409 1,323,768
97,939,505 1,815,544
3.401.081 1.013.326

9,112.393455,364,850 16,588,88


National Banks.
-The following information regarding
national banks is from the office of the Comptroller of the
Currency, Treasury Department:


-The Citizens National Bank & Trust Co.of Walton,N.Y.-$100,000
Correspondent: Perley A. Dutton, Meredith, N. Y.
-First National Bank in Glen Ullln, N.D
Dec. 18
Correspondent: John C. Fischer, Glen Ullln, N.I).
-The Commercial National Bank of Greenville, Miss
Dec. 16
President: W. P. Kretschmar. Cashier: A. M. Lyell.
Conversion of The Commercial Bank,Greenville, Miss.
-The Central National Bank of Mineola, N.Y
Dec. 17
President: Howard S. Walters. Cashier: C. D.Broadhurst.
-The Minnesota Nat. Bank of East Grand Forks, Minn
Dec. 19
President: M. M.Hayden. Cashier: E. A. Hoff.

DEC. 28 1929.]



$ Per Sh.
$ per Sh. Shares. Stocks.
Shares. Stocks.
300 United Cigar Stores Ws. of
67,888 La Francis Sugar Co.(Del.)
$900 lot
dep. preferred
no par
50 Edward A. Blatt "Harlem" Inc.
11,167 Trent Proc. Corp.,no ver..500.
82 lot
25.000 200 Killian Roller Bearing Co., no
-The Poolesville Nat. Bank,Poolesville, Md
Dec. 19
$1 lot 513 Thomas Henry Co., Nashville,
Effective, Dec. 14 1929. Lie, agents: Grover L. Michael
Tenn., no par, as follows: 513,
10 Brotherhood Investment Co..
and C. Thomas Summers,care of Central Trust Co. of
$5 lot
$2 lot; 313,82 lot;45,51 lot: 200,51 lot
prof.; 5 coin., no par
Maryland, Frederick, Md. Absorbed by Central Trust
83 N. C. Joint Stock Land Bank,
$5.500demand note of Harp-Thomas
Co. of Maryland, Frederick. Md.
Durham, N. C
Cultures Corp., dated Dec. 31
-The First National Bank of Farwell, Minn
Dec. 20
45 Nat. City Bk.of N.Y., par 520_211
1925; $2,000 note dated Jan. 8
Effective Dec. 13 1929. Lid. agent: A. P. Anderson,
April 28
84 United Chemicals Inc. com.,
1926; $2,000 note dated
Farwell, Minn. Absorbed by Farwell State Bank,
$50 lot
$200 lot
no par
Farwell Mimi.
200 Greeley Sq. Hotel Co.. pref 5100 lot 100 Fandango Corp. com. A, no
$100 lot
common,no par
$1 lot
3 Amer. Social Registry, pref
10 Interstate Co. prof.; 22 com2,000 Brazil Gold & Diamond Mines
Dec.i20-The City National Bank of Lansing, Mich. Location of
mon, no par
$20 lot
Corp., par $1
branch-Southeast corner of Washington Ave. and
100 United Chemicals, Inc., com25 Magazine Repeating Razor Co.,
Elm St., Lansing.
52.000 lot
mon, no par
$25 lot
class A, no par
200 Dreamland Park pref.. par $25 S80lot
101 Magazine Repeating Razor Co..
565 lot 50 Old Point Vanderbilt Corp. 8%
class B, no par
-Among other securities, the following, 261 Tamiami City Devel.Co.. prof.;
Auction Sales.
.850 lot
non-cum. pref.; 1234 common.
26 Motow Mfg.& Sales, no par___ 31 lot
261 Tamiami City Devel. Co.,
not actually dealt in at the Stock Exchange, were sold at auction
10 Tyson Co., Inc., pref.; 10 comcorn.;609-10Tamiami City Corp.
83 lot
mon, no Par
prof.; 174 Tamiami City, com___51 lot
in New York, Boston, Philadelphia and Buffalo this week:
$20101 104 Caldwell-Temple Impt. Co. of
60 Mercon Corp. (La.), pref
$90 lot
Lake Wales, Fla
540,000 Ga. & Fla. RR. inc. nonAdrian H. Muller & Son, New York, on Thursday:
200 units Am.Int. Airways, Inc_ 5400 lot
mtge. 6% debs. temp. ctfs.; 800
$ per SA.
S per SA. Shares. Stocks.
Shares. Stocks.
20 Wickwire Spencer Steel Co.
Ga. & Fla. Mi., pref. tr. Mrs.;
$20 lot
760 Cottonseed Prod. corn
$400,000 prin. amt. Wakenva Coal
$3 lot
common trust ctf
1,920 Ga.& Fla.RR., ctfs.:
$100 lot
4,177 Nat. Cottonseed Prod
Co. 20-yr. s. f. 6345, Aug. 11947,
$500 lot 50 Photomaton, Inc., common B.
no par
20 Outlook Co. pref., no par; 40
with non-detachable stk. purch.
no par
2,544 Ga. & Fla. RR., corn. trust
common, no par
$40 lot
warrants evidencing right to sub$100 lot 50 Wolverine Petroleum Corp. comctfs. no par
1,207 Engineering Control, Inc.,
scribe (in respect of each $1,000
mon, par 55
$20 lot
'-O-Phone Corp
lot 100 Port
pref.; 2,600
Prin. amt.) for 10 shs. Wakenva
4,000 Fremont Grant, Inc., no par.. 50c.
20 Structural Pressed Steel Wheel
5 Shields Machine Tool class A
Coal Co. $100 par stock: $70 bet.
$1 lot 3,900 Union Cigar Co., par $10__11500 lot
Co., Inc
no par
11932;$80 bet. Aug. 1 1937;
12 Vacuum Hand Block. Co.,Inc-510 lot 67 Wolff Mfg. Co.. no par
533 Sunshine Copper, par $5: 50
$90 bet. Aug. 1 1942; and having
8100 lot
10.329 Wolff Mfg. par $5
50 Amer. Woman's Realty Corp..
Universal Interests, Inc., no par:
Feb. 1 1929 and subs, coup. at$105101 500 Big Ledge Copperco. Par $5:
275 N. Y. Irvine 011 Co., no Par:
$1,000 lot
100 El Salvador Silver Mines Co.,
1 Harp-Thomas Farmogerm Co.
$550 N. Y. Irvine Oil Co. 7%
56 N. Y. Greyhound Racing Assn.,
$2 lot
Inc., par $1; 167 Huron Copper
(N. J.)
notes dated Nov. 1 1917
$15 lot
Inc., corn., no par; 50 pref., no
Mining, par S1
26 Wachter Mfg. Co. (Conn.), par
$70 lot 50 Nat. Licorice Co., common---- 25
100 Nat. Industrial Loan Co. of
$25; 1,275 Cold Spring Quartz dr
$25 lot 75 Nat. Aero Corp. pref.; 150 com_540 lot
200 Paint Specialties Corp
J. C., pref., par $25; 50 Nat. InChannel Mining (Ariz.), par $1:
4,281 James Butler Grocery com - 134
$27,062.05 claim of Wm.Sally agst.
dus. Loan Co. of J. C. com., no
25 0. I. C. Mining Co., par $10;
est. of Charlotte Fairchild __ _81,000 lot Due bill calling for 200 slhs. Frazier
Par; 20 Commercial Steel Equip.
$100 Nat. Asphalt Co., gold ctf.
& Co., Inc., pref., and 100 abs.
51 Brooklyn Trust Co
Co. pref., no par; 200 Commercial
Equitable Trust Co. of Phila.
$100 lot
common, no par
1 Chelsea Exchange Bank & Trust
Steel Equip. Co., com., no par:
I 20-50
ctf. of dep. for collateral;
100 Floridale Townsite Corp. com..
Co., par $25
200 Safeguard Check Writer Corp.
Nat. Asphalt Co., pref. Equitable
$10 lot
no par; 100 class A pref
150 Lefcourt Normandie Nat.Bank
com., no par; 20 Richardson &
Trust Co. of Phila. ctf. of dell.;
100 Elec. Shovel Coal $4 pref.... 1
400 Normandie Nat. Securities Co.
EquitGarret Bag Co. pref.; 20 Rich2 Nat. Asphalt Co., com.
250Perryville Woolen Mills(Mass.)
pref., with warrants
ardson & Garret Bag Co. com.,
able Tr. Co. of Phila. cti, of dep-86 lot
$5 lot
250 Am. Home Bid's. Corp.(Ohio)
$7 lot
no par; 10 Hickory Hills Synd.$500 lot
1 Essex Co.(N. J.)
540 lot
$35 lot 462 Scott's Preparations, Inc
7% cum. pref
lot 5 Frances Fox Devel. Co. pref.; 20
$10 lot 24 Liberty Holding Corp., no par_525
50 Am.Home Sidra.(Ohio) com -$5 lot 50 Mo. Kansas Zinc, no par
$1 lot
100 Judea Industrial Corp.. par $25:
48 Amer. Founders Corp. common- 30
100 Deltho Corp. (N.Y.) class A
200 Industrial Discount class A__ $5 lot
500 Security Title dr Trust Co.,
$30 lot Amer. Founders Corp. scrip Ws.
no par
2.050 Tanawah Gold Min. Co.. Par
Phila., par $10; 201 Small Issues
for 16-140th share
2,000 Dramagraph Motion
51; 1,000 Flag Staff Mining Co..
Corp., pref., no par; 835 Small
25 Westfield Mfg. par- 27
Corp. pref. (N. Y.), par $10;
Par $1;25 White River Manganese
Issues Corp., corn., no par; 500
$5,0001ot 100 Fed. Elec. Co., Inc., corn.--- 10
2.000 common,par $10
Co., Batesville, Ark., par $10;
Stein Cosmetics, no par; 200 Tex30,000 Diamond K. Packing Co.
Syndicate int. representing 400 shit.
-$5,500 lot
13 Cobb Mfg. Co.; 1 Union Fuel
-more 011 & Gas, par
$5 lot
(Alaska), par $1
Hofgaard-Remington Corp.(Del.)
Co. pref.; 2 Union Fuel Co. cam.:
made by D•
400 she. com_ _55,000 lot 107 J. E. Farnsworth & Co., Inc_ _$25 lot $4,400 promissory note$10- coll.
7% pref., and
5 Davies Car Wheel dt Machine
L. Hutchinson,. sm. int. &
400 Columbiana Coal & clay PI-5400 lot
592 14-18 Reserve Petrol. Co.(Del.)
Co. Prof.; 50 No, Amer. Iron Co.
attached, dated Nov. 17 1927,
$25 lot 500 Producers Oil & Gas Co. comcommon, no par
$l lot
of Ariz., par $1; 1.96 Chicago
due on demand
mon (W. Va.). par $10
$85 lot
580 10-18 Reserve Petrol. Co.(Del.)
Mines Co. com.: 20 Metals Prod.
Mining Co. of
$30 lot 250 Robert Muller & Co.8% preLS75 lot 1.000 Golden Dawn Coshiti Gold
common, no par
Co. pref.. par $10: 5 Ores Prod.
Wonder, par $1; 200
250 Robert Muller dr Co.6% pret$75 lot
holdings of stock of Socleta
Co. pref., par $10; 122 Union DeCo., temp. receipt 300
250 Robert Muller & Co.6% pref-580 lot
Nationale Incremento Razza Ca$25 lot
velopment Co., par $1
Silver Leaf Mining, Ltd., par 8182lot
1,000 Reybarn Co., par 810
nino Italia, represented by as1,000 Photomaton,Inc.. pref____$650 lot
10 13owman-131Itmore Hotels Corp.
$30 lot 200 Van Camp Milk Co. 7% prof.,
signment of interest
$6 lot 9,000 Photomaton. Inc., class B.
1st pref, conditional ctf
with warr. attached
2,500 U. S. Hammered Piston Ring
$1,200 lot
no par
5,000 Bingham Standard Copper
$100 lot 400 Guanajuato Consol. M. & M.
Co.(N.J.) corn., no par
$1 lot 2,584 Photomaton, Inc., class B,
CO. par $5
Co.(W. Va.), par $5; 10 Miquon
625 Chilton Pen Co. (Mass.) com81,600 lot
par $i._$1 lot
no par
Sales Corp. (Del.)
$25 lot 1,500 Vienna Vein Min.,
mon, no par: 1,250 pref., no pa4155 lot
10,000 Canada-Kitzee Co., par $1.81 lot 111 Suburb. Lt. & Pr. 7% pref._5775 lot
50 Teredo-Proof Paint Co.(Maine):
2,950 Chilton Pen Co. corn.(Mass.)
5,500 Trent Process Corp
receivable aggregat.
$250 lot
10 Miquon Sales Corp.(Del.) $20 lot Sundry accts.
no par
approximate $75,857.94- _$18,000 lot 50 Van Camp Milk Co. 7% pref. 30
100 Continental Tobacco Co.corn_ _ 1
39,839 Atlantis Fruit & Sugar Co.,
with warrants
Sundry accts, receivable aggregat•
$14,000 lot 50 Anthracite Fuel Corp. pref.; 25
par 85
approximately $12,178.03-51,500 lot 441 Amal. Silk Corp. pref. and
$2 lot
4,174.207 Cuban Dominion Sugar
scrip for 50-100share; 1,103 Amal.
Partic. ctts. representing an undivid.
$5,000lot 50 U.S. Air Lines (Ohio)
Corp., no par
Silk corn, v, t. c. syndic. partic. 6% gold notes of Ga.& Fla.
125 Compo Bond Corn
$80 lot
200 Calif. Cyanide Co.. pref.; 200
receipt & 75-100 scrip, no par_ $100 lot
RR., am't'g to $167,612.79_51,000 lot
$100 lot 3,125 Ramsey Chain Co., no par...5650 lot
common, no par
50 Guayaquil dc Quito Ry. pref._ _55 lot 100 Clinton Invest. ASSOC.. Inc..
$90 lot
100 Hydraulic Turbine corn
700 Celluloid Corp. corn., no par__ 13
com.; 98 Montague Inv. Corp-525 lot
$357,183.49 unsec'd note of
16 Metcalf-Shaw Corp. v.t.c., no
100 87th St. dr East End Ave. $6
$18,500 Interstate Window Glass
011 Corp., dated Nov. 23 1929,
$2 lot
$110 lot
Par: 8 8% pref
prof.; 50 common
Corp. 1st M. 65, 1942, with all
due 5 yrs. after date; 91 Beaver
1,000 Foster-Osage Oil .4 Gas Co_ 38 lot
7.000 Eastern Steel Castings com$75 lot
coupons attached; 1834 Interstate
011 Corp
$500 lot 10 Frances. Fox Laboratories, Inc--$1 lot
mon, no par
$25 lot
$10 lot
Window Glass Corp. pref
15 Fla. Shores Realty Co
10 Frances Fox Devel. Co.8% pf...51 lot
100 Trent Anthracite Corp. of Del.
Co., no par_ _IC lot
134 10 Frances Fox Development Co....S1 lot $15,000 19 Grace Court deb.781937; lot 161 Regal Oil & Gas Corp. 1st pf.;
1st pref
500 Trent Anthracite
60 Ms. 19 Grace Court
25 Frances Fox Laboratories, Inc-81 lot
Review Inc.of N.Y.
50 Chain Store
$500 lot
12,500 common, no par
10 Frances Fox Devel. Co.8% pf 51 lot 518,500 19 Grace Court deb.7s1937; lot
no par
20 Animated Book Match Corp. pf_ 10
75 sits. 19 Grace Court
13 Capitol Park Realty Co. com
$1 lot
250 North Am. Discount Corp.
100 Caro Cloth Corp. corn., no par- 10
$40,000 Santa Cecilia Sugar Corp.
50 Richloam Farms Co. (Fla.), no
com., no par; 125 No. Am.
1st M.s. f. 6s 1927, default _$6,000 lot 20 Gen. Discount Corp. of Del., lot
$1 lot
pref.; 71 Welts-Mignon Corp.
no par
100 Miami Jockey Club, no par
2034 554,000 Amer. Real Estate Co.6%
corn., no par: 35 Welte-Mignon
20 Gen. Discount Corp.of Del. pf_.11 lot
reg. bonds, due Sept. 1 1916 to
250 Guanajuato Consol. M. & M.
Corp. pref., par $50: 2020-100
Grape Prod.,Inc..7%
1,000 United
March 6 1923,stamped 40%
Co., par $5
Welts-Mignon Corp. prior pref.,
$205 lot
prof.; 1,000 United Grape Prod.
in liquidation
$20 lot 36 Teziutlan Copper Mining St
par $50
$1,000 lot
corn. v. t. c., no par
Smelting Co., no par
$3 lot 130 Gen'l Optical Co., pfd., no par_ $6
200 No. Am. Disc. Corp. com., no
5,500 Selective Equities common.$500 lot 200 Gen,Optic. Co.. com.,no par_5200lot 200 Clarence Saunders Stores cl. Apar; 100 No. Am. DM. Corp.
$5,000 Outline Sales Corp. 7% gold
1,200 Estimate Realty Corp.(N.Y.)
150 Union Tobacco Co. class A...
pref.; 56 Welts-Mignon
520 lot
$15 lot
notes, Oct. 1
300 Union & United Tobacco Comcom.. Par $10
com., no par; 28 Welte-Mignon
100 New Jersey Clock Co.,Newark,
$5 lot
$5 lot 850 Compania Azucarera Trinidad
Corp. pref., par $50
N.J., no par
com., par $20; 250 Compania
400 Union & United Tobacco Co_ _$10 lot
114 Recreator, Inc., com. A v.t.c.;
$45 lot 100 Hodgman Rubber Co. pref
Azucarera Trinidad. Prof
$300 lot 2,000 Trademark Prod. Corp_ ___510 lot
114 common B
100 Trent Anthracite Corp. of Del.
lot 1,000 Union Tobacco Co. com _5800 lot 515,000 int. in syndicate to acquire
ZOO Producers Oil& Gas Co
$75 lot
let prof
stock of Excelsior Hold
110 Recreator Corp. corn.; 220 p1815 lot 400 Union Tobacco Co. class A. _ 2
4,000 Calavada Copper Mines Co-S20 lot 50 Meldrum-llosmer Co. pref _ __58 lot 500 R. D. Bunnell & Co. (Del.). lot 100 Sunhill Realty Co.; 422 Sherry
Agency Co., par 550; 1
Corn,, no par
650 59th St. & Fifth Ave. Corp.
310 Automatic Straight Alibrake
Casino Co.; judgment, LOILL3
$3 lot
Prof.; 1,075 common, no par_.5250 lot 20 Chic,Jt. Stk. Land Bank,com__ 5
8% 2d pref
26234 Forest Lakes Corp.. cam_ _5100 lot
Sherry against George T. Wilson $12101
100 59th St. & Fifth Ave. Corp.
100 Trent Anthracite Corp. 1st Pf.;
$60 lot
$100 lot
pref.; 165 common, no par
$35 lot 118 Blake-Clarke Co., pre!
2,500 common, no par
Per Cent.
Bonds574 Hayti Co. pref.; 865 common $5 lot 6834 Blake-Clarke, com., no par $30 lot
55.000 New Coliseum Co. gen. M.
510,000 Rittenhouse Square Corp.,
1,160 Lamer Machine Co., corn.,
78, May 1 dt sub, coup. attached;
5100 lot
2nd 65, Jan, 1 1946, guar.
no par
no par;25 Mtge. Guar. Co.(Fla.):
75 Nat. Arenas Synd. corn. B.-550 lot
$1,150 lot
400 Federal Aviation Corp., com.,
by Penn Athletic Club
7 8-10 Florida Title & Trust Co.
125 Nat. Arenas Synd. class A 8%
-year deb.85,
$125101 $3,500 Baysliore Co. 10
no par
$10 lot
(Fla.); 102-10 Florida Title &
prof.; 175 common
Sept. 15 1938;$280 Bayshore Co.
Trust Co.
$55 lot 1,420 John Warren Watson Co.,de100 Bayshore Co. 8% pref.: 100
$480 lot
-year deb. 8% coupon scrip:
ferred com., no par
$10 lot $1.500 Buffalo Elevators, Inc.(Dacommon v. t 0
70 sits. Bayshore Co.,com.v.t.c.$30 lot
6447-100 Amalgamated Silk Corp.,
kota elevator mtge.); Inc. due
2,300 Electric Shovel Coal Corp.$4
Pref.; 161 18-100 com. v.t.c- -$65 lot $50,000 Rio Grande Southern RR.
Apr. I 1948:335 Buffalo Elevators
cum. partic. pref., no Par
Co. 1st 51.4g. 1940,guar. prin. dr
250 Iroquois Pub. Serv. 7% pref--$7 lot
prof. A. par $10; 5 Buffalo Ele275 Elec. Shovel Coal corn., no par_ 10
int. by Denver dr Rio Grande RR.
vators corn.. no par
$110 lot 325 Penn Seaboard &Wel Corp..
6.370 El. Shovel Coal $4 C. P. Pf
Jan. 1922 & subs,coup.attach_5300 lot
be. 50 Subur. Lt. dt Pr. Co. 1st pref_ 390 lot
no par
2,892 Elec. Shovel Coal corn
100 Thermiodyne Radio, no par-51 lot $25,000 Aldecress Corp. inc. mtge.
25 Wanaksink Lake Corp. Prof.,
600 Amer. Protein Corp. common
$1,000 lot
6s, 1953
$15 lot
Par $10: 375 com., par $10
V. t. c.. no par
$5101 100 Keystone Tire & Rubber Co.,
$8 lot $25,000 Aldecress Corp. inc. mtge.
no par
500 Southern Ice & Utilities Co.
100 EUmeric Trading Corp. pref.,
$1,000 lot
6s, 1953
corn. B. no par
$26 lot
8800101 50 Seneca Copper (old) no par.. _ _51 lot
par $50; 100 com., no par
$678,750 notes of La Francia Sugar
1,175 Home Oil Ref. Co. of Texas,
2,000 Hot Dogs,Ltd.,com.,par £1822lot 3,000 U. S. Hammered Piston Ring
$16 lot
Co.(Del.).($550,000 due May 31
elf of dep
Co. common, no par
$500 lot
95 Uniondale Ave. Holding Corp..
1931. and $128,750 due May 31
500 Amer. Road Machinery Co.,
$28 lot 1,800 Pollak Mtg. Co. corn.,
pref.; 10 common
$339,375 lot..
no par
corn.: 50 Croton Color & Chem.
$900 lot
236 Amityville Holding common 595 lot
$11,000 General Fuel Corp. 5
Co.. prof.; 50 Croton Color &
435 Richland 2,400 Merlin Products Corp. com8% sink, fund gold notes. series
Chem. Co.. com.; 10 Cowtan
50 common, no par
$245 lot
.50 Bayshore Co. pref.;
A, Dec. 1925 and subseq, coup.
$5 lot 264 Domin.Foundries & Steel ord.- 5
Tout, Pref.; 5 Cowtan d: Tout,
mon, no par
attached; $28,500 General Fuel
corn., no par; 82 North-Eastern
2,000 Boston Mexican Petrol. Co.$35 lot
4234 Thermo-Electric Corp. of Am.
-year 8% sink, fund gold
Corp. 5
Agency Co.;21 Palmer-Perchlorate
100 Gilliland 011 Co. pref
pref., with subscription right
$35 lot
notes. series B, June 1925, and
Powder Co.of Can., pref.:50 Pal$10 lot 100 Nat. Motor Car & Veh. Co--$1 lot
warrant attached, no par
subseq. coup. attached
5100 lot
mer Perch. Powder Co. of Can.,
400 World Bestos Corp., pref
demand 5% notes of
$5,000 Alaska Anthracite RR. 1st
com.;440-100 Studebaker Vebic.
$40 lot 300 Latherizer Corp., corn. A_ -530 lot
F. Manning
(closed) mtge. 20
-year sink. fund
corn.; 1,500 Willys Corp.,
25 American Neon Light & Sign
$10.000 demand note of Bozart
5115 lot
68, ctf. of dep
$2 lot
com., no Par
Corp., pref
$40 lot
$50 lot
76 Subur. Lt. & Pr. Co. 1st pf 5255 lot $3.250 Temple Furnace Co., gen.
75 American Neon Light & Sign
2,000 Mtge. Bond & Title Corp.
mtge. inc. 7s, Mar. 11933
$10 lot
$40 lot 240 Sou. Cities Util. Co.$6 pref_ _ 60
Corp., corn., no par
(Del.), no par
50 Pyramid Silk Co., Inc., pref -$25 lot 138 So•west Gas Util. $6.50 pfd_ 42 $800 Temple Furnace Co. 1st mtge.
4,177 Nat. Cottonseed Products
7s, March 1 1938
811 lot
$50 lot 233 Okla. Nat. Gas 7 1. pref
$100 lot 300 Allerton Corp., pref. B
Corp. common

Dec. 21-The Peoples National Bank of Liberal, Karla
lam President: C. M.Light. Cashier: J. N.


Per Cent.
$100,000 Aktien Gesellschaft Porzellanfabrik Rudoletadt inc.6% reg.
dabs., due Sept. 1 1932
$310 lot
$2,500 New Coliseum Co.gen.mtge.
7s, May 1 1932, Nov. 1929 and
subseq. coup,attached;consented
to agreement
$50 lot
$1.000 Indiana Limestone Co. deb.
75, 1936, with warrants
$500 lot
$3.000 Sayre & Fisher Brick Co. 1st
sink. fund 68, 1947
$2,100 lot
$5,000 Vesten Elec. Rya. 1st sink.
fund 78, 1947
$5,500 lot
$5,000 Malba Estates Corp. 20
deb. Is. April 1 1933. April 1929
and subseq. coup. attached...3150 lot

Per Cent.
$9.000 Keystone Water Works Co.
deb. Se. 1942
$6,300 lot
comp metal & mining Founders
Sits., Inc. deb. 69. Sept. 2'34.5275 lot
$10,000 Sanford, Fla., 534% bonds,
due 1956
$1,000 lot
$1,500 571 Park Ave. Corp., class
A bonds
$100 lot
$9.500 571 Park Ave. Corp., class C
and all right, title & Mt. of Aaron
Lapidus in and to 50% of entire
cap. stk. of Fidel Coast. Corp 3500 lot
$5,000 Missouri Kansas Zinc 7%
bonds, 1932
$80 lot
$5,000 Aldecress Corp. inc. mtge.
$75 lot

EvoL. 129.

Shales. Stocks.
$ per Sh. Shares, Stocks.
$ per Sh.
125 Nashawena Mills
1834-1734 25 Pacific Develop. Corp
224 Booth Mfg Co
1,000 Sonora Products Corp. of Am. 50ct
50 Everett Mills
10,000 United Royalty, units
$25 lot
100 Fitchburg dr Leominster St.
40 Northern Texas El. Co., pref.__ 234
By. Co
14 lot 15 Northern Texas El. Co
20 Central Vermont Ry. Co
35c 1.000 C. K. Seymour Corp
404 Fitchburg & Leominster St. Ry.70 lot 200 Chrysler Corp
10 Standard Sup. & Equip, classes
1-5 undivided interest in the followA and B
Mg notes: 250.000 Pantex Oil
79 Thompson's Spa., Inc, units_ _80-8034
Co., dated April 1927 payable on
500 Imperishable Arts, Inc
demand int.6% from date; $250,200 Shepard Stores A
000 Pantex 011 Co., dated July
66 Shepard Stores
1927, payable on demand int.
600 Mary Lee Candy Shops, cl B 25 lot
6% from date; $250.000 Pantex
272 B. B. & R. Knight, prof
011 Co., dated Oct. 1927, payable
340 Abington Tex. Mach. Tr
13 lot
on demand int. 6% from date_3100 lot
11 At. Gas & Elec. Co., class A_ __ _ 23
50 Saco Lowell Shops, 2d pref
By Wise, Hobbs & Arnold, Boston, on Thursday:
75 Incorporated Investors
100 New England Southern Corp__ 10
23)4 10 Mo. Kan. Farms Co.. class A;
Shares. Stocks.
$ per Sh. 50 Incorporated Equities
6 per Sh. Shares. Stocks.
100 Indian Co
$1,000 Detroit Ry. & Harbor
5 Medford (Mass.)Tr. Co.,par $90.
31,500 Triplex Coal Mines, Ltd.,
400 Shoe Tread Corp
of rm' it
Tedep0. Co., 7s, May 1935, tf.
50 Sharp Mfg. Co. pref
par Si; 40 Stine Coal Mira corn.;
$25 lot
20 Wickwire Spencer Steel Corp.,
$22 lot
46 Lancaster Mills common
20 Stine Coal Min. pref.; 6 Titan
prof ctf. dep.; 210 Cons. Pet., cl B$5
100 Universal Chain Theatres, units 8
10 Hamilton Woolen Co
Iron & Steel Co. corn.; 6 Titan
40 Robt Gail'& Co., class A _ __15-13%
600 Beaver Park Land & Water_.$15 lot
430 York Mfg. Co
Iron & Steel Co pref.; 100 Thomas
334 350 Royal Tiger Mines
12 Associated Textiles Co. com_.-- 36
Products, Inc., Cl, A corn
$10 lot 20 Robt. Garr & Co., class B
10 Carter Macy Co., Inc., pref.;
20 Plerce Rubber Co
15 Grinnell Mfg. Corp
100 U. S. Metal Cap & Seal Co.
4 Carter Macy Co., Inc
2 $755
Si lot 1,531,000 So. Penn. Collieries, : Lott
corn. (stnand.). par 51; 200 Gulf
450 Farr Alpaca Co
85 ex-div.
Mtge. 6345; 126,000 2d Mtge.
20 Great Falls Mfg. Co
States Oil & Refg. class A,par $5_52 lot 1,000 Cadillac Mining Co.; 1,000
$1 lot
Philipsborne, Inc., v.t.c.
63is;89,500 2d Mtg. 63-I8; 12,500
80 Appleton Co. common
5% 5 Shimpf Starter Co.; 100 Ajax Oil
1,400 Chapparal Hill Gold MIrang_51 lot
2d Mtge.63-I8
18 Nashua Mfg. Co. common
Co. class A ctf. of int., par 100.:
200 Jackson & Curtis Invest. Assoc_ 52
$1,346.43 Calaveras Copper,6%-. 50t
3 251et
3 1o
10 Boston Mfg. Co. pref
150 Upressit Metal Cap corn.,
5,712 Coeur d'Alene Mining Co_810 lot
46 Fairhaven Mills, pref
$15 lot 1 Boston Athenaeum
par $10
35 40-100 New England Southern_55 lot 45 U. S. Worsted Corp., pref.; 150
50 Sharp Mfg. Co. pref
$30 lot $6,000 Detroit Ry. & Harbour
25 Boston Condensed Milk 7% pf_32 lot
corn.; $135 1st pref. scrip
70 Great Falls Mfg. Co
Term. deb. 7s, Dec. 1935 (ctf. of
,210 Insuraushares Corp. of Del.,
103 Brill Corp., class B
10 Sharp Mfg. Co. pref
den.); 50 New Jersey Worsted
$15 lot
class A
13-12% 206 Brill Corp., cass A
10 Sharp Mfg. Co. common
Mills. pref.; 10 Metropolitan Ti.
$2 lot
10,000 Yates American Mach. Co
Co.(Boston), in liquidtaion
$20 lot 5 Boston Insurance Co
596 Respro Mills, Inc., common,
50 Northwestern National Insur. 110
100 Gould Coupler Co., A
par $10
25 Eastern Theatres corn.; 50 East
100 Francis Jordan Inc., class A__.$5 lot Trust 2d Prof
10 Nat. Fabric & Fin. Co. pref.- 10
era Theatres pref., par $10; 25
50 Old Colony Trust Associates.... 45
10 Boston Soccer Club; 26 Filtner
105 Dwight Mfg. Co
Service Station Equip. corn.; 5(1
100 Beacon Participations, Inc. pf.A 13
Atwood Co
102 Nashua Mfg. Co. common.... 3534
Service Station Equip. 1st pref.;
48% 2.700 Boston & Montana Mining 1"
1,500 Allied 011 Corp., par 810-.520 lot 57 Great Northern Paper Co
100 Fort Dodge Des M. & South.
25 Merrimac Hat Corp
Corp., last asst. unpaid
RR. Co. common v. t. c
$25 lot 40 Jones, McDuffee & Stratton
27 New Bedford Gas & Edison Lt.
840 Acker, Merrell & Condit. prof_ _
100 Beacon Participations, Inc.,
Corp. class A; 78 Dwight Mfg.
Co., undeposited
1,000 C. K. Seymour Corp
Co.; 25 York Mfg. Co.: 54,000
class A pref
3 Springfield Gas Lt. Co., v.t.c_-_ 54
Promissory note for 51,100, dated 1"
Rochester & Syracuse RR. Is,
400 United Corp. common
50 Woonsocket Mach. & Trust; 12
Feb. 14 1924, due in four months,
May 1957; 311.000 Sryacuse Lake
1,000 Old Colony Inv. Trust
signed by C. K. Seymour Corp.:
$2 lot
Sh. & N. RR. Is. May 1947_5752 lot
300 Commonwealth dr Southern
9 Goodall Securities Corp
$400 due the Amer. Rim Corp.,
100 Oliver Farm Equip. pr. pref.__ 67
300 First Nat. Copper Co., par $5;
5 Kimball Hat Co., Inc.: 5 pref.-310 lot
dated Mar. 1824. due in 30 days $10101
110 Silver Butte Mines Corp.;400
25 U.S. Rubber 1st pref
10 N. E. Southern Corp., prior pf.,
238 Gardiner Beardsell & Co.. pf--- 5
Rotary Ring Spinning Co.: 4,000
100 Amer. Cirrus Engines, Inc.,
100 Butters Lumber Co., prof. $30 lot
$700 58, 1933, coupon Dec. 1928,
Alaska Copper Corp.. Par 55;
class A
and sub. on
$40 lot
25 Amer. Cirrus Engines, Inc., Cl. B 2
1,000 Stewart Min. Corp.. par $1;
420 Gillman Mfg Co., pref
Per cent.
106 Ritz
-Canton Hotel Co. (Bos1,500 Nevada Douglas Cons.
120 Lewis A. Crossett Co_ _50c., 58cr, 50 S13000 arbor Tr. Inc.,gen. mtge.
$5 1201
ton), common
Copper Co.. par $5;51,000 Nevada
98 Joseph F. Stuart, Inc
7s, July 1935
$8,400 lot
35 Houghton & Dutton Building
Douglas Cots. Copper Co. 1st
$1,750 N.E. Southern Corp. 55,'33;
$1,000 Det Ball & Bar, Term., let
Trust pref
68; 750 Hermes Min. Co.: 900
25 prior prof; $43, $50, $100 non6)48, May 1945
100 Roosevelt Field Inc. common
Portsmouth Coal Min. Co.; 4
Interest bearing scrip, payable
$5,000 Met. Assn. of N. Y., 68,
42 U. S. Envelope Co. corn
Peerless Knit. Mills Co. com.,
Dec. 1 1933
5150 lot
Feb. 1927. Coupon Feb. 1916 &
10 Flintkote Co. class A common
20 Peerless Knit. Mills Co. pref.;
50 The United Corp
Sub. on
200 Coldak Corp. class A
244 Sinaloa Land & Water Co.;
1,000 Farrell Rouyn Mines, Ltd.__$1 lot $500 Rockport Granite Co., 1st M.
10 New Eng. Power Association
320 Abblngton Textile Machin'y
6s. June 1934
Trustees;6 Riordon Co., Ltd.; 20
6% pref
8934 ex-div.
150 Heywood Wakefield Co
85,000 Lockwood Greene 75, 1933.
15 Universal Chain Theatres 1st pf_ 7
Riordon Co., Ltd., pref.; 50 The
6375-1000 Geo. Harvey Tr
Coup. Mar. 1929 and sub. on..__ 1
100 Perfect Circle Co.
Rubay Co.; 200 Internat. Abra$14 lot
36 ex-div.
40 Eastern Gas & Fuel
$4,000 Det. Ry. & Ilar. Ter. Co..
100 Traveler Shoe Stores Corp.
sive Corp. corn., par 325; 25 Int.
5 So. Surety Co. of N.Y
deb. 7s, May 1935. Coupon Nov.
Abrasive Corp. pref.; 25 Airdry
10 ex-div.
15 Employers Group Associates_
1928 and sub. on
100 Air Investors, Inc., pref
Corp.: 40 Owen Tire Co. pref.,
$1.7100 NV. 7 So. Coal Co., 1st 78,
,0, 154Va.
150 Nor. Amer. Aviation common
$150 lot 20 Chain & Gen Equities
Par 550
10 Blue Ridge Corp.; 5 Sharp Mfg.
10 Sugar Estates of the Oriente pfd_ 10
pref.; 5 Sharp Mfg.; 20 Jessup &
$5.000 Cities Service deb. Is, 1969_ 99
5 New Eng. P. S. Co.$6 cum. pref. 81
BondsPer Cent.
Moore Paper: 60 Northern Silver
$2,000 Sherman Apt. 2d mtge. 78,
750 Nat. Protective Cos
$5,000 Guardian Investors Corp.
Black Fox & Stock Co.; 5 AnaSept 1929
100 Suffolk Real Estate Trust
Is, May 1948
45 & int.
bacher-Seigle; 5 Ansbacher-Seigle
$20,000 City of Sanford, Fla., 65,
200 Amer. Agricul. Chem. pref.__ 2434 $2,000 Nat. Rys. of Mexico gen.
July 1929, in default
10 Saco-Lowell Shops 1st pref.... 45
mtge. 4s. Oct. 1977
7% flat
100 Rheabat Corp., pref; 100 Rhea$8,000 Bitter Root Valley Mtite•Cu.
150 Manville Jenckes Co. common_ 15
$5,000 Island Refg. Corp. 7s, Apr.
bat Corp
$2 lot
1st mtge. 6s, 1922-3-5
15, 1929 (ctf. of dep.).---83 per bond
1.050 Miller Pocahontas Coal Co.
100 Granite State Sprg. Water, pf.$25 lot $1,000 Det. Ry.& Bar. Ter.
$250 lot $2,000 Nat. 011 Co. 1st 7s (ctt'. of
$1,000 Penn Dixie Cement Corp.,
50 L. A. Crossett Co. 1st pref
$1 per bond 1 Pond Creek Pocahontas Co
$1,200 Costilla Tr., 1st lien Is, ctf.
(is, Sept. 15 1941
110 Nor. Boston Ltg. Prop. corn$5.000 Eastern Mass. St. Ry. Is.
of dep.; $2,662.76 2d lien 7s, ctf.
58,000 Cities Service Is, April 1958_ 80
mon v. t. c
Jan. 1948
5134 & int.
of dep.; $414.57 6% pref. lien ctf.
$1,000 Ducktown Chemical & Iron
12 Worcester Invest. Trust pref__$21 lot $5,000 Det. Ry.& Harbour Terms.
Co. 7s, Nov. 1935
of dep.; 9-15000 4th lien ctf. of
1st 6)45. May 1945 (ctf. dep.)_8% flat
14,727 Logan County Coal corn__ 1
dep.;$100 5th lien ctf. of dep.- _35 lot $4,000 S'west G. Co.,63 May '37 81
189 Laconia Car Co. 1st pref
$5,000 City of Fort Lauderdale,
51,000 Cady L. Corp.6i4s, Nov.'39 45
Fla 68 Jan 1948
70 & int. 225 No. Carolina Jt. Stk. Land Bk. 25
250 Goodyear Tire & Rub. common 62
$2,000 The Dominican Sugar Co.
1 Renewable Shear Co., Inc., v.t.c.;
$10,000 Eastern Mass.St. Ry.4iis,
5 United Securities Trust Assoc.._ _ _ 40
(Cuban) 734allov.'44 ctf.dep_ _$10 lo
30 the Latherizer Corp, pref.; 60
Jan. 1948
100 Guardian Investors common__ 1
4534 & int.
the Latherizer Corp;90 Ohio Body
$3,000 Amer. Locker 78, Mar, 1935_ 60
40 New Boston Arena Co. pref._ __ 1
$1.000 Hotel Bellevue Trust deb. 78,
& Blower Co., Inc.; 2,599 Frank$1,000 Wayland Manor, Inc.. 7s,
Oct. 1940 (ctf. of dep.).---$5 per bond
40 New Boston Arena Co. common. 50c.
Aug. 15 1938. Coupon Feb 15
1ln Process, Ltd.; $3,000 Premier
$7,000 Bay of Biscayne Bridge Co.
45 Sun-Maid Raslin Growers AssoMotor,6% notes ctf. dep
$65 lot
1st 63113, July 1941 (ctf. dep.)-$320 lot
1927 and sub. on
dation 7% pref
50 Allotment ULU Equities Corp.,
$2,000 Canadian Locker Co.75, Jan 10 1"
10 Heywood-Wakefield Co. com
$2,000 Superior Elevator Prop.(Su12
1934. Coup. July '28 & sub. on _$10 lot
perior Elev. Corp.) 1st 6315, Oct.
534% pr. and stock units
10 Heywood-Wakefield Co. 1st pf
10 At int. 100 Metropolitan Assoc. of N. Y.325 lot $3,000 Continental Valve & Equip50 Franklin Mining Co. (assess't
150 Tezuitlan Cop. Min.& Smelt.$60 lot
moot Co. 8s, Jan. 1939. Coupon
No. 5 paid), par $25
50c. lot $2,000 Det. Ry. & Barb. Terms.
July 1927 and sub. on
1st 6345, May 1945 (ctf. dep.)_8% flat 27 Joint Stk. Secur. Co. of Mass.__ 51c
1,000 Riverside Copper an. Co.,
30 Bausch Mach. Tool Co
$2,055 lot $5,000 Compania Azucarera Ver-10 1"
par $10
$5 lot $5,000 Southwest Gas Co. 1st 1334s,
May 1937
80% & int. 700 Coldak Corp., class A
$5 lot
tientes, 7s,tedecy. 0 58,
rigo D eri. 19: .
162 Logan Wilton Smokeless Coal
280 Chandalar Gold Mines,Inc
$1 lot $3,000 Minneapolis Anoka & Cu- let
Co. common
$25 lot $5,000 Sugar Estates of Oreinte tat
Nov. 15
50 & int. 3,300 Jerome Del NIonte Copper_430 lot
7s, Sept. 1942
50 Guardian Investors Corp. pref._ 5
United Secur. Trust Assoc
500 Uni
$7,000 Punta Alegre Sugar Co. deb.
733 1-18 Reserve Petroleum Co. of
55 dr int. 100 Westinghouse El. & Mfg. Co-132%$2,000 Pittsb, Hotels 510, Mar.'48 80
7s, July 1937
Del. common
100 DuPont deNemours & Co
114% $2,000 G. B. Theat, 78, Mar. 1946_ 75
$5,000 Wickwire Spencer Steel Corp.
Mtge. note for $16,000. signed by
1,000 Tintic Co
$20 lot $5,000 Container Corp. of Am. Is,
78, Jan. 1935 (Jan. 1 1928 ma.
Arthur J. Driscoll, dated Feb. 11
25% flat 62 Sc. A. Canalize, pref.; 38 RockJune 1943
& sub. cpns. on)
1929.secured by land at Chatham,
land & Rockport Lime Co.,2d pl..
$5,000 Central Pub. Serv. Corp.
$25 lot $5,000 Menet! Sugar Co. 734s,
cony. deb. 534s, Feb. 1949 w
60 & int.
60 Rockland & Rockport Lime.$75 lot
April 1942
1,000 Shepard Stores, Inc., class A
$1,000 Wickwire Spencer Steel 78,
(interim rcts.); 334 common (inBy A. J. Wright & Co., Buffalo, on Thursday:
15% flat
Feb. 25 1930
terms rct8.)
$7,500 rat
$15,000 Guardian Investors Corp.
$ per Sh.
6 Buff. dt Lake Erie Ti. Co. corn.;
Shares. Stocks.
$ per Sh. Shares. Stocks.
45 & int. 867 Barcalo Mfg. Co., 7% pref.-851.90 60 Ocean Tours Corp., pref., no Par $8101
Is. May 1948
10 Amer. Planograph Co.; A. L.
Sayles & Sons, pref., par $50-32 lot $10,000 Utilities Service Co. (Dis.
2.220 Adargas Mines, 1 peso_ _ _ _$1.60 lot
105 Blanchard Lumber & Mill Co..
50 & int.
Aug. 1938
101) O'Gorman, Wade dr Powers Co.
20 Buffalo Property Owners. Inc.
.81 lot
$2,000 Det. Ry. & Barb. Terms.
class A pref.; 250 General Engi660 Osage Oil & Ref. Co., par $1._$2 lot 3,000 Candelaria Mines Co., par $1.12 lot
1st tiMs, May 1945(ctf.deP.)-6% flat 2,000 Porcupine Grande Gold M
neering Co., par $10
$200 10t
44,530 Adargas Mines, par, 1 peso
$25,000 K.C.Joint Stock Land Bk.
$10 lot
504 Laconia Car Co. common; 299
Ltd, par $1
48% flat 42 Utah Lead Co., par 510
5s, 1965 (efts. of den.)
2nd preferred
$20 lot
$1.50 lot 8031-100 Allied Oil Co
10 New Ramp. Co-Operative Mar$5,000 Covert Gear & Mfg. Corp.
25 Gen. Airplanes Corp., no par_ _525 lot 3,000 Murphy Mines, Ltd.. par 5$ 3 35 1loi
1_ 2$01g
40 & int. 25 BUffalo Steel Car Co., Inc., pref_32 lot 200 Tradesmerur Finance Corp., 2nd
7348, 1939
keting Assn. corn., par $10; 10
B. H. Piper Co. corn., Dar $50;
$5,000 Det. Ry.& Harb.Terms. lot
10 Cons. Distributors, Inc., temp.
preferred, par $50
6515. May 1945 (ca. dep.).--3% flat
$4 1 ot
1 Concord Airport el. A corn.;
certificates, no par
.75c. lot 10 Shoemaker &Volkert, Inc
$1,000 New Eng. 011 & Refg. Co.
1 Concord Airport cl. B corn.;
100 Buffalo Steel Car Co., Inc., pf34 lot 10 McCormick Cigar Corp.. Prof..
8s, March 1931 (Ctt. dep.), 51%
240 So'western Stores common_ _$10 lot
with 6shes common, par 85-32.50 lot
500 Honduras Timber Corp., trust
$15 lot
paid in liquidation
.5 Lewis A. Crossett Co. pref., 50
certificate, no par
Per Cent.
Columbia Graph. Mfg. Co
100 Honduras Timber Corp., pref. 1" Bonds.
$3 rat $1,000 Det. Ry.& Herb. Terms. 1st
634s, May 1945 (ctf. dep.)----3% flat
50 Island Oil& Trans. corn. v. t. c.,
trust certificate
$3 lot $502,700 Locomoblle Co., 1st Os.
$12,000 Joint 1st mtge.8% Virginia
20 Buffalo Wills Sainte Claire Corp.,
$493.25 per M.
Dar $10; 10 Hopkins & Allen Arms
and Miller
Smokeless Fuel Co.
com.;10 Trinity Copper., par $5 50c.lot
no par
50c. lot $89,500 Warner Sugar, deb. Gs A.
Pocahontas Coal Co.. due June
350 Island Investment Co. $8 cum.
50 Buffalo Wills Sainte Claire Corp.,
1% flat
pref.; 560 common
.4 7 Pe
$10 lot
31.50 lot $259,000 Warner Sugar, deb$4 13, r M.
10 Haskell Corp, no par
$5 lot
By R. L. Day & Co., Boston, on Thursday:
3,400 Adargas Mines, 1 peso_ _ _32.25 lot $5,000 Sarasota, Fla., 6s,'32$497 pe M.
53 7Per
$5,000 Sarasota, Fla., 6s, '31 $347 per M.
$ Per Sh. 10 Moleaut International Aviators,
Shares. Stocks.
$ per Sh. Shares. Stocks.
pref., par $10 with 5 shares corn.
$10.000 Sarasota, Fla., county road
50 National Shawmut Bank
6734 50 Lancaster Mills, pref
and bridge Gs, 1939
par $10
10 Pacific Mills
258 Citizens National Bank, $75
20 Augustine Automatio Rotary
$5,000 Sanford, Fla., imp. 5%87 7M.
834 13
paid in liquidation
$100 lot 50 Sharp Mfg. Co., pref.; 35 Sharp
14 lot
Engine Co., par $25
$ 8 33
Fla., imp. 5 147 1:83 M.
Mfg Co
25 Federal National Bank
134 10 Sterling Tire Corp., no par-_500.lot $5,000 Sanford,
10 Chase National Bank, N. Y____153% 87 Barnard Mfg. Co
4034 100 Fred Mason Products, Inc..
9 Goodall Worsted Co
200 National City Bank, N Y
temporary certificate, no par
S5 lot $5,000 Sanford, Fla., imp. 5%8; :
$2 7 or M
4 13P r m
592 Mug Philip Mills
39-5000 Park Trust Co.. ptc. cf. in
Ocean Tours Corp., pref., no par 87101
50 1933
50 Farr Alpaca Co
beneficial int. in lig
534 50 Amer. Neon Lt. Corp., no par_SIO lot $6,400 A-0 Worsted Co., 1st mtge.
25 Naumkeag Steam Cotton Co_-- 8834 60 Grinnell Mfg Co
(Ss, 1934
5 British Amer. Film Producers
250 Ipswich Mills pref
334 200 U. S. Worsted Corp., 1st pref_ _104
0 pe
$ 0oll :
51 c . r I
Alliance, Inc., pref., with 5shares
$25,000 Level Club, Inc.. 6%100 Per I
70 lot
200 Fairhaven Mills, pref
3 Associated Textile Co
common, no par
notes, 1928-1931
$3 lot
50 Grftwoldville Mfg. Co., pref__115 lot 10 Arlington Mills

DEC. 28 1929.]


By Barnes & Lofland, Philadelphia, on Tuesday:
Shares. Stocks.
Spec Sh.
Pennsylvania Academy of the
Fine Arts
Equitable Bonded Mtge. Co., pref.
as follows: 200 at 820 lot, 8 at $3
lot, 125 at $1 lot, and 25 at $3 lot
34 Central Nat'l Bank, par $10_..... 6734
14 Phila. National Bank. par $20_140
6 Union Bank & Trust Co
5 Tradesmens Nat. Bk. & Tr. Co 460
Bankers Trust Co., Par $50 as
follows: 65 at 382. 25 at $7831.
25 at 5.78, 25 at $77, SO at $78,
25 at $76, 10 at $7534. and 100 at
41 Northwestern 'tr. Co., par 510-200
5 Northwestern Tr. Co., par $10._225
82 Northern Central Trust Co.,
par $10
5-12 Market St. Title & Trust Co..
Dar $50
16 Market St. Title & Trust Co- 350
6 Colonial Trust Co.. par $50
50 Security Title & Trust Co., Par
2 Fidelity-Phila. Trust Co
10 Swedesboro (N. J.) Trust Co_ 162
10 Broadway Merchants Tr. Co.,
Camden, N. .1., par $20
25 Broadway Merchants 'tr. Co
Camden, N. J., par 520
200 Federal Finance Corp., A
$6 lot
200 Feeeral Finance Corp.. B. --35 lot
100 Federal Aviation Corp.. no par 1
20 West End Realty Cd. of Pa..
$25 lot
797 Hare & Chase, Inc., pref.,
certificate of deposit
564 Hare & Chase, Inc., oom.,
certificate of deposit
40 Parlcsburg iron Co
10 Beaver Park Land & Water Co..$6 lot
5 Beaver Park Land & Irrigation Co-56 lot
100 Bankers Seery. Corp., corn.,
voting trust certificates
15 Bankers Secur. Corp., corn.,
voting trust certificates
25 Reliance Ins. Co., par 810
160 Girard Life Ins. Co., par $10_ _ 21
25 Richland Collieries Co., corn_ $2 lot
50 Richland c-

Shares. Stocks.
$ per Sh.
300 Greenbaum Sons Invest. Corp.,
$100 lot
60 Federal Purchase Corp., cl. A,
certificate of deposit, no par...... $30 lot
18 St. Charles Hotel Co., pref..- 144
50 units Merlon Magnesia Co.,
(unit consist.of 1 share pref. and
I share common)
$25 lot
500 Merrill Realty Corp.. corn.,
no par
$10 lot
121 Franklin Trust Co
375 East Coast Fisheries
$2 lot
2 1st Camden Nat'l Bk & Trust_ _ _110
15 Phila. Life & Ins. Co
20 Mixon Corp., common
$1 lot
150 General Secur. Corp., corn_
$1 lot
150 General Secur. Corp., com_51 lot
50 General Secur. Corp., corn
$1 lot
10 Rockhill Iron & Coal, prat
$1 lot
175 Union Trust of Indiana. corn_ _55 lot
25 Chas. Coles, pref.. 25 common_520 lot
50 North Amer. Discount Co. of
N. Y 7% preferred
$25 lot
100 North Amer. Discount Co. of
N. Y., common
$S lot
Per Cent.
$100 Old York Road Fire Co. of
Cheltenham, 1st m. Ss
$5 lot
$1,000 Indiana, Columbus & Eastern Trac., Gen.& ref. 5s, 1926_830 lot
$10,000 Roosevelt Bldg., 6s
55.000 Plaza Building
$10,000 Central Idaho hilt. Dist.
Water Improvment ils 5%•
($4,000 due 1942, 81,000 due
1943, $5,000 due 1945.) July 1
1929 and subs, coups. attached.
$15,000 Schuylkill Ry. Co.,1st
cons. 5s April 11935. int. in default since April 1 1925, (certificate of deposit)
$45 lot
$500 Sesqui-Centennial Participation certificate
$10 lot
$9,000 1701 Locust Eit , 2nd mtge.
6s, series A, due 1935
$1,000 Wayne Coal Co., 1st(3s 1931,
certificate of deposit
$5 lot
$1,000 Scranton. Montrose &Binghamton RR., let 6s 1949
$1 lot

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 yet been paid.
The dividends announced this week are:
Name of CornPantr.

Cent. Payable.

Books Closed,
Days Inclusive.

Railroads (Steam).
Delaware, Lackawanna .4 West.(guar.). '51.50 Jan. 20 *Holders of rec. Jan. 4
Jan. 20 *Holders of me. Jan. 4
Norfolk .k Western. adj. pref. (guar.)._ •1
Feb. 19 *Holders of rec. Jan. 31
Public Utilities.
Associated Gas & Elec., cl. A
(payable in cash cm 2-125tbs sh. A stk.) *40c. Feb. 1 *Holders of rec. Dec. 31
Bell Telephone of Pa.. cone. (guar.).- *2
Dec. 31 *Holders of rec. Dec. 31
Binghamton L..
& Pow..86 pref.(gu.) "51.50 Jan. 2'Holders of rec. Nov.30
Chicago Aurora & Elgin RR., pf.(guar.) •134 Jan. 2 *Holders of rec. Dec. 31
Dixie Gas & Utilities, pref. (guar.)
*144 Jan. 2 *Holders of rec. Dec. 20
Eastern Mass •st. Ry., common-divide nd oral tted.
Electric Power & Light, corn. (guar.)
*25c. Feb. 1 *Holders of rec. Jan. 10
Florida Public Service. pref.-Dividend ()mitt ed.
Massachusetts Utilities Associates
5% participatinc cony. pref. (guar.)._ 6244c Jan. 15 Holders of rec. Dec. 24
Montreal Telegraph (guar.)
Jan. 15 "Holders of rec. Dec. 31
Mountain States Tel. & Tel.(quar.)_.. '2
Jan. 15 *Holders of rec. Dec. 31
National Pow. & Light, $6 pref.(quay.). $1.50 Feb. 1 Holders of rec. Jan. 10
Nevada-Calif. Elm Corp., pref. (qu.) _
134 Feb. 1 Holders of rec. Dec. 30
New Bedford Gas & Edison Light (qu.). "51
Jan. 15 *Holders of me. Dec. 28
New England Pub. Sem., corn.(quar.)
*25e. Dec. 31 *Holders of rec. Dec. 15
87 preferred (guar.)
.51.75 Jan. 15 *Holders of rec. Dec. 31
$6 preferred (quar.)
*51.50 Jan. 15 *Holders of rec. Dec. 31
Adjustment preferred (guar.)
"81.75 Jan. 15 *Holders of rec. Dec. 31
$6 convertible pref. (guar.)
41.50 Jan. 15 *Holders of rec. Dec. 31
Northeastern Power Corp., corn.(guar.) K25c Dec. 31 *Holders of rec. Dec. 16
Northwestern Bell Tel., corn.(guar.)._
Dec. 31 Holders of rec. Dec. 250
Preferred (guar.)
144 Jan. 15 Holders of rec. Dec. 20a
Class A (guar.)
•51.50 Dec. 31 *Holders of rec. Dec. 16
Peoples Gas Light & Coke (quar.)
Jan. 17 *Holders of rec. Jan. 3
Philadelphia & Camden Ferry (quar.)._ 111.25 Jan. 10 *Holders of rec. Dec. 27
Puget Boum Pow & Licht.6% pf.(qu.) M134 Jan. 15 "Holders of rec. Dec. 20
Railway & Light Securities (guar.)
*50e. Jan. 10 *Holders of rec. Dec. 31
Rhine Westphalia Elec. Pow., Am.dui._ $2.16 Jan. 4 Holders of rec. Dec. 28a
Southern Calif. Gas, pref. A (guar.)..._ '3734c Jan. 15 *Holders of roe. Dee. 31
Southern Ind. Gas dr Elec.,7% pf.(qu.). 1% Jan. 2 Holders of roe. Dec. 23
134 Jan. 2 Holders of rec. Dec. 23
6% preferred (guar.)
6% preferred (semi-annual)
Jan. 2 Holders of roe. Dec. 23
6.6% preferred (quay.)
$1.65 Jan. 2 Holders of rec. Dee. 23
Southern Canada Pow., corn. (guar.)._
250. Feb. 15 Holders of roe. Jan. 31
Southern N. E. Telep. (guar.)
Jan. 15 *Holders of rec. Dec. 31
Spanish Amer. Elec.(Chade)Amer. shares for E shares (7 pesetas).
Dec. 27 *Holders of reo. Dec. 19
Thirteenth & Fifteenth Sts. Ry., Phfla
Jan. 1 Dec. 21
Jan. 1
United Gas & Elec. Co., preferred
234 Jan. 15 Holders of rae. Dec. 31
United Gas Improvement, corn. (qu.)
*30e Mar. 31 *Holders of res. Feb. 28
West Kootenay Power, pref. (quar.)
'1)4 Jan. 2 *Holders of roe. Dee. 26
Trust Companies.
Bank of Sicily Trust Co.(guar.)

*50c. Jan. 10 *Holders of tea. Dec. 31

. 1.K Jan. 2 *Holders of reo. Dec. 27
Acme Staple, pref. (guar.)
Aero Supply Mfg., Inc., cl. A (guar.) -- *3734c Jan. 2 *Holders of reo. Dec. 20
Aetna-Standard Engineering, com.(gti.). •25c. Jan. 1 *Holders of reo. Dec. 24
Common (extra)
50c. Jan. 1 *Holders of roe. Dec. 24
Preferred (guar.)
144 Jan. 1 *Holders of roe. Dec. 24
Alabama Fuel & Iron (quar.)
134 Jan. 2 Dec. 22 to Jan 1
Alliance Realty, corn.(guar.)
75e. Jan. 23 Holders Of rec. Jan. 10
50c. Jan. 23 Holders of rec. Jan. 10
Common (extra)
Alpha Claude Neon Corp., Prof. (qu.)._ '134 Jan. 10 *Holders of rec. Dec. 22
•75c. Jan. 1 *Holders of rec. Dec. 14
Amer. Capital Corp.. pref. (guar.)
American Felt Co.(guar.)
134 Jan. 2 Holders of reo. Dec. 23
Amer. Hardware (extra)
•75C. Jan. 25 *Holders of rec. Jan. 7
American Ice. corn. (guar.)
Jan. 25 *Holders of rot. Jan. 7
Common (extra)
*1)4 Jan. 25 *Holders of rec. Jan. 7
Preferred (guar.)
44334 Dec. 31 *Holders of roe. Dec. 10
Amer. Republics Corp..7% prof.
Anaconda Copper Mining (guar.)
$1.75 Feb. 17 Holders of nee. Jan. 11
•750. Feb. 10 *Holders of rec. Jan. 11
Andes Copper Mining (guar.)
.20c. Jan. 15 *Holders of rec. Jan. 5
Angle Steel Stool(guar.)
*20c. Feb. 15
Anglo-Norwegian Holding, Ltd., pref.
(7% ann. from April 1 to Dec. 31)___ $5.25 Dec. 31 Opening of bus. Dec. 31

Name of Company.

Cent. Payable.

Books Closed,
Days !mimics.

Miscellaneous (Continued).
Apollo Steel (guar.)
*30c. Jan. 1 *Holders of rect. Dee. 20
'Sc. Jan. 1 *Holders of roe. Dec. 20
Art Metal Works, common (guar.)
*75c Feb. 1 *Holders of roe. Jan. 13
Athol Mfg. (quar.)
Jan. 2*Holders of roe. Dee. 29
Jan. 2*Holders of roe. Dec. 29
.3S4 Jan. 2 *Holders of rec. Dec. 29
Atlas Plywood, new corn. stock (guar.)
*50c. Jan. 15 *Holders of rec. Jan. 2
Attock 011. Interim dividend passed.
Bankstocks Corp., classes A,B & pref. Divide nd omit ted.
Bastian Blessing Co., common (quar.).. *75c. Mar. 1 'Holders of rec. Feb. 14
Beck & Corbitt, preferred (guar.)
144 Jan. 2 Holders of rec. Dec. 26
Bell View 011 Syndicate (guar.)
Jan. 1 *Holders of rec. Dec. 20
Jan. 1 *Holders of rec. Dec. 20
Bliss(E. W.) Co., common (guar.)
*250. Jan. 2 *Holders of rec. Dec. 23
First preferred (guar.)
*51 Jan. 2 *Holders of rec. Dec. 23
Second preferred, lease A ((plan)
'8734c Jan. 2 *Holders of rec. Dec. 23
Second preferred, class B (guar.)
*150. Jan. 2 *Holders of rec. Dec. 23
Bonded Capital Corp., prof.(guar.).- "134 Jan. 1 'Holders of rec. Dec. 23
Brompton Pulp & Paper (guar.)
'500. Jan. 15 *Holders of rec. Dec. 31
Bruce(E. L.), preferred (guar.)
1K Jan. 2 Holders of rec. Dee 21
Brott & Co. (guar.)(No. 1)
"1.254c Jan. I *Holders of rec. Dec. 8
Burkart Mfg. Co., pref.(guar.)
55c. Jan. 2 *Holders of rec. Dec 21
Canada Bud Breweries, common
25c. Jan. 15 Holders of rec. Dec. 31
Canada Foundries & Font., Cl. A (go.)... "3734c Jan. 15 *Holders of rec. Dec. 31
Canadian Bronze, common (guar.)
6244c. Feb. 1 Holders of rec. Jan. 20
Preferred (guar.)
IK Feb. 1 Holders of roe. Jan. 20
Canadian Consol. Felt, preferred
234 Dec. 30 Holders of rec. Dec. 26
Canadian Gen'l Invest. Trust
-Div. Om Med.
Can. Indust. Alcohol, cl. A & B (qu.). 38e. Jan. 15 Holders of rec. Dee. 31
Canadian Industries. prof. (guar.)
134 Jan. 15 Holders of rec. Dec. 31
Canadian Power & Paper Inv., pref.(qu) IM Feb. 15 Holders of rec. Jan. 20
Cardiff Corporation. corn.(No. 1)
Dec. 31 Holders of rec. Dec. 23
Case, Lockwood& Brainerd (extra)
*510 Jan. 1 *Holders of rec. Dec. 16
Cent. Amer. Plantations Corp
Jan. 15 Holders of rec. Dec. 20
Carman & Co., Ltd., class A (guar.).*50c. Mar. 1 *Holders of rec. Feb. 15
Class B
*50c. Jan. 2 *Holders of rec. Jan. 15
City Stores, class A (guar.)
8734c. Feb. 1 Holders of roe. Jan. 15
Cleveland Union Stock Yards (guar.).
- 500. Dec. 31 Holders of roe. Dec. 20
Commercial Bookbinding (guar.)
4354c. Jan. 15 Holders of rec. Jan. 1
Continental Securities Corp. (guar.).- - "51
Jan. 15 *Holders of rec. Jan. 2
Corn Products Refg.. corn. (guar.)
*750. Jan. 20 *Holders of roe. Jan. 3
Common (extra)
*750. Jan. 20 *Holders of roe. Jan. 3
Preferred (guar.)
*154 Jan. 15 *Holders of rec. Jan. 3
Curtiss Publishing, corn. (rattly.)
*50c. Feb. 2 *Holders of rec. Jan. 20
Preferred (guar.)
*51.75 Apr. 1 *Holders of rec. Mar.20
Cuyamel Fruit
Jan. 7 *Holders of rec. Jan. 3
Dahlberg & Co.,corn. & pref.(guar.).- $1.75 Jan. 20 Holders of rec. Dec. 31
Dahluerg Corp. of America. pref.(qu.)
750. Jan. 15 Holders of rec. Dec. 31
Detroit & Cleveland Navigation (extra)_
200. Jan. 15 Holders of roe Dec. 30
Dolese & Shepherd, Inc. (guar.)
Jan. 2 Holders of roe. Dec. 20
Jan. 2 Holders of rec. Dec. 20
Eastern Steel Products(No.1)
Jan.!! 15 *Holders of rec. Dec. 31
Edison Brothers Stores, com.(qua?.)
250. Jan.I 20 Holders of rec. Dec. 31
Edwards (William) Co., corn
Jan. 2 *Holders of rec. Dec. 20
Jan., 2 *Holders of reo. Dee. 20
7% Preferred (guar.)
Edmonton City Dairy, corn. (No. 1)- *51
Jan I 2 *Holders of reo. Dee. 18
Elder Dempster Co.,6% and 634% pfd.
-Div. Omitted.
Elgin National Watch (guar.)
*62 Kc Feb. 1 *Holders of roe. Jan. 15
Jan. 21 *Holders of rec. Jan. 3
Ely-Walker Dry Goods, corn.(quar.)_ _ _
50e. Jan. 15 Holders of rec. Jan. 4
Empire Bond & Mortgage,corn.(quay.). 1134 Jan. 15 Holders of roe. Dec. 26
Preferred (guar.)
134 Jan. 15 Holders of rec. Dec. 26
Evans-Wallower Lead Co., pref. (qu.)... 134 Jan. 1 Holders of rec. Dec. 20
Fafnir Bearing (guar.)
*500. Dec. 31 "Holden of rec. Doe. 16
*50c. Dec. 31 *Holders of reg. Dee. 18
Fageol Motors preferred
"35e. Jan. 15'Holders of rec. Dec. 31
*600. Feb. 1 *Holders of rec. Jan. 20
Common (guar.)
*60e. May 1 *Holders of rec. Apr. 21
*154 May 1 *Holders of rec. Apr. 21
Preferred (guar.)
Fifth Avenue Investing Corp.corn.(qu.) $1
Dec. 31 Holders of rec. Dec. 23
Dec. 31 Holders of roe. Dec. 23
Preferred (guar.)
Filing Equipment Bureau pref.(qu.)
134 Jan. 1 Holders of rec. Dec. 21
Fokker Aircraft Corp. of Am. pf.(qu.)._ *4334c Jan. 15 *Holders of rec. Deo. 31
Foreign Power Securities coin.(No. 1).. $1
Jan. 20 Holders of rec. Dec. 31
134 Feb. 15 Holders of roe. Jan. 31
General Ire Cream Corp.(guar.)
M Dec. 23 Holders of rec. Dec. 16
45e. Jan. 2 Holders of roc. Dec. 20
Geometric Stamping (guar.)
10c. Jan, 1 Holders of roe. Dec. 24
Gibraltar Finance Corp., corn,(No. 1)
Preferred class A (guar.)
134 Jan. 1 Holders of rec. Dec. 24
Gimbel Bros., Inc., pref. (qua?.)
*144 Feb. 1 *Holders of me. Jan. 15
Gold Dust Corp.,corn.(guar.)
"6234c Feb. 1 *Holders of rec. Jan. 10
Green (Daniel) CO. prof. (guar.)
$1.75 Jan. 2 Holders of rec. Doe. 23
Hall(W. F.) Printing (guar.)
*250. Jan. 3 *Holders of rec. Jan. 20
Stock dividend
*e6 2-3 Feb. 1 *Holders of rec. Jan. 20
Harbauer Co.(guar.)
350. Jan. 2 Holders of rec. Dee. 23
Hartford Times pref. (guar.)
*750. Feb. 1 *Holders of rec. Feb. 1
Haverty Furniture common (guar.)---- "1844e Jan. 1 *Holders of rec. Dec. 30
Preferred (guar.)
"3734e Jan. 1 *Holders of rec. Dec. 30
Hayes Wheel & ForgIngs corn. (guar.)._ *50e. Jan. 1 *Holders of roe. Dec. 21
Hercules Power Corp.. prof. (quar.)_.. "154 Feb. 1 *Holders of roe. Feb. 4
Hill Joiner dr Co., Inc., common
Jan. 1 Holders of rec. Dec. 31
334 Jan. 1 Holders of rec. Dec. 31
Holly Development (guar.)
*234e Jan. 15 *Holders of roe. Dec. 31
Home Oil, Ltd
"200. Jan. 20 *Holders of rec. Dec. 31
Horn & Hardart Baking corn.(guar.).
- $1.75 Jan. 1 Holders of rec. Dec. 21a
Hussman-Ligonier Co.(guar.)
500. Jan.I 15 Holders of roe. Jan. 3
Hunts Sash & Door pref.(quar.)
1% Jan. 2 Holders of ree. Dec. 20
Hydraulic Press Brick-dividend °mine d
Island Investor, Inc.(quar.)
*600. Jan 2 *Holders of rec. Dec. 20
•10. Jan. 2 *Holders of roe. Dee. 20
Investment Foundation pref. (guar.)_ _ _
75e. Jan 15 Holders of rec. Dee. 21
Kennedy (Colin B.) Corp.class A(No.1) *8
Jan. 2 *Holders of too. Deo. 20
Kentucky Rock Asphalt coin.(guar.)... *400. Jan. 2 *Holders of rec. Dec. 14
Key Boiler Equip.(guar.)
*25e. Feb. 28 *Holders of roe. Deo. 23
Stock dividend
Holders of rec. Dec. 25
Keystone Steel & Wire,corn.(guar.)____ *50e. Jan. 15 *Holders of me. Jan. 5
Preferred (guar.)
•144 Jan. 15 *Holders of roe. Jan. 5
Laclede Christy Clay Products common. 31340. Jan. 2 Holders of roe. Dec. 21
Land & Building Investing pref
53.50 Jan. 15 Holders of roe. Dee. 31
Lanston MonotyPe Machine (quar.)..... *154 Feb. 28 *Holders of rec. Feb. 18
250. Feb. 28 *Holders of too. Feb. 18
Lawrence Portland Cement, coin.(gu.). *51 Dee. 28 *Holders of rec. Dee. 14
Leath & CO., common (guar.)
*25e Mar.30 *Holders of rec. Mar.20
Common (guar.)
•25c. June 30 *Holders of reg. June 20
Common (guar.)
*25e. Sept.30 *Holders of rec. Sept. 20
Lehigh Portland Cement.corn.(quar.)_ _ *6244c Feb. 1 *Holders of roe. Jan. 14
Lucky Tiger Comb. Gold Mln.-dIvlden d omit ted.
Ludlow Typograph, common (guar.)...
50o. Jan. 1 Holders of rec. Dec. 4
Corn.(stock dlv., 1 sh.for every l0)
(1) Jan. 25 Holders of ree. Dee. 21
134 Jan. 1 Holders of rec. Dec. 21
Lunkenheimer Co., common (extra).- _ •250. Dec. 16 *Holders of rec. Dec. 16
Magor Corp., preferred ((Mar.)
144 Dec. 31 Holders of roe. Dec. 23
Manning, Bowman .4 Co., cl. A (guar.)_ *3744c Jan. 1 *Holders of reo. Dec. 20
Class B (guar.)
*1234e Jan. 1 *Holders of rec. Dec. 20
Manning, Maxwell & Moore, Inc.(gu.)_ *1
Jan. 2 *Holders of rec. Dec. 31
Marbelite Corp., preferred (guar.)
*50e. Jan. 10 *Holders of rec. Dec. 31
Marks Bros. Theatres, pref. (guar.)_ _ _ *50o. Jan. 1 *Holders of roe. Dec. 81
Massey-Harris Co. (guar.)
750. Jan. 16 Holders of roe. Dec. 31
McCaskey Register, 1st prof. (quar.)--- 1% Jan. 2 Holders of rec. Dec. 20
Metal & Mining Shares, Inc.(guar.)
*300. Jan. 2 *Holders of rec. Dec. 31
Meyer-Blanke Co.. preferred (guar.).
- 134 Jan. 2 Holders of roe. Dec. 20
Michigan-Davis Co
81 Jan. 2 Holders of rec. Dec. 20
Mid-City Co. of Amer.. 00132.(quar.)... *400. Jan. 15 *Holders of roe. Dec. 27
Monolith Portl. Cement,corn.& pf.(qu.) *40c. Jan. 1 'Holders of ree. Dee. 14
National Baneservice Corp.
Stock dividend (1-40th share)
(e) Jan. 2 *Holders of reo. Dec. 28
*400. Jan. 1 *Holders of rec. Dec. 20
National Screen Service
National Shirt Shops, pref. (quay.)
2 Jan. 2 Holders of rec. Dee. 26
$1.75 Jan, 2 Holders of roc. Dee. 20
National Title Guaranty (guar.)
Newhall Buildings Trust, pref. (quar.)
134 Jan. 15 Holders of reo. Jan. 1

Name of Company.

Cent. Payable.

Books Closed
Days Inclusive.

Miscellaneous (Concluded).
New Jersey Zinc (Var.)
*50c. Feb. 10 *Holders of rec. Jan. 20
New York Dock, preferred
•235 Jan, 16 *Holders of rec. Jan. 6
Northwest Engineering (guar.)
*50c. Feb. 1 *Holders of rec. Jan. 15
Paahau Sugar Plantations, common..._ •20c. Jan. 10 *Holders of rec. Dec. 31
Pacific Cotton Seed Products, corn.(gu.) 4 14i Mar. I *Holders of rec. Feb. 20
Pacific Portland Cement, pref.(guar.)
*135 Jan. 5 *Holders of rec. Dec. 31
Paragon Trading Corp. class A
Dec. 31 Holders of rec. Nov. 30
Class B and C
$3.50 Dec. 31 Holders of rec. Nov. 30
Pedigo Weber Shoe (guar.)
37 Me Jan. 2 Holders of rec. Dec. 23
•1% Feb. 1 *Holders of rec. Jan. 20
Phillips-Jones Co., pref.(quar.)
Pickrel Walnut (guar.)
50c. Jan. 2 Holders of rec. Dec. 21
PYrene Mfg., common (guar.)
20e. Feb. 1 Jan. 18 to Jan. 31
Reserve Resources corn. & pref. (special) $4
Dec. 24 Holders of rec. Dec. 19
Royal Typewriter, common
$1.50 Jan, 17 Holders of me. Jan. 10
Common (extra)
50c. Jan, 17 Holders of rec. Jan. 10
3% Jan. 17 Holders of rec. Jan. 16
Ruud Mfg., corn. (guar.)
*6.5e. Feb. 1 *Holders of rec. Jan. 20
St. Louis Bank Building & Equip
25c. Jan. 2 Holders of rec. Dec. 20
St. Paul Union Stock Yards (quar.)____ *2
Jan. 1 *Holders of rec. Dec. 20
San Francisco Mines of Mexico
Amer.dep.rcts.(2shill.3 pence)
Jan. 14 *Holders of rec. Dec. 20
Sayers dr Scoville (extra)
Jan. 2 *Holders of rec. Dec. 20
Seaboard Dairy Credit Corp. com.(qu.)_ *50c. Jab. 1 *Holders of rec. Dec. 20
Preferred (guar.)
*131 Jan. I *Holders of rec. Dec. 20
-Div Wend omitted
Second Canada Gen. Invest. Trust
235 Jan. 15 Holders of rec. Dec. 31
Securities Company
Securities Invest. common (quar.)
75c. Jan. 2 Holders of rec. Dec. 20
Common (extra)
25e. Jan. 2 Holders of rec. Dec. 20
Jan. 2 Holders of rec. Dec. 20
Preferred (guar.)
*20c. Jan. 15 *Holders of rec. Dec. 31
Signode Steel Strapping corn. (quar.)__
Common (payable in corn. stock)
Jan. 15 *Holders of rec. Dec. 31
•6234c Jan. 15 *Holders of rec. Dec. 31
Preferred (guar.)
*2c Jan. 10 *Holders of rec. Dec. 30
outhern Glass Co
Spicer Manufacturing pref. (guar.)
*75c. Jan. 15 *Holders of rec. Jan. 4
1% Jan. 1 Holders of rec. Dec. 15
Spraco, Inc., pref. quar.)
-Meyer, Inc., corn. (qu.)(No. 1).... •30e. Jan. 1 *Holders of rec. Dec. 27
*134 Jan. 1 *Holders of rec. Dec. 20
Preferred (guar.)
Standard Investing common-Dividend omitte d.
Jan. 2 Holders of rec. Dec. 20
Standard Screw common (guar.)
Jan. 2 Holders of rec. Dec. 20
50c. Jan. 2 Holders of rec. Dec. 27
Stein Cosmetics pref. (guar.)
•$3.75 Jan. 15 *Holders of rec. Jan. 1
Stetson (John B.) common
Jan. 15 *Holders of rec. Jan. 1
Sunray Oil Corp
Jan. 15 *Holders of rec. Dec. 26
*40c. Jan, 25 *Holders of rec. Jan. 5
Transamerica Corp. (guar.)
Stock dividend
Jan, 25 *Holders of rec. Jan. 5
*25c Dec. 31 *Holders of rec. Dec. 30
United Advertising (guar.)
135 Dec. 31 Holders of rec. Dec. 20
United Bond & Share Corp., pfd.(qu.)_ _
*75c. Dec. 24 *Holders of rec. Dec. 13
United Elastic Corp
*40e. Jan. 2 *Holders of rec. Dec. 20
United Paper Box (guar.)
United Profit Sharing,common div. omit ted.
•$1.50 Feb. 1 *Holders of rec. Jan. 11
U.S. dr Foreign Sec. 1st pt.(qu.)
U.S. Leather, el. A. dividend omitted.
U. S. Radiator, corn.(guar.)
*500. Jan. 15 *Holders of rec. Jan. 2
*1,4 Jan. 15 *Holders of rec. Jan. 2
Preferred (guar.)
U.S. Sharp Corp.
Bank Stock Trust Shares,series C-3.... _ 59.29e Jan. 2 Holders of rec. Dec. 2
Universal Consol. Oil (guar.)(No. 1)_ _ _ *50c. Jan. 10 *Holders of rec. Dec. 31
Wagner Electric Co., pref.(guar.)
131 Jan. 2 Holders of rec. Dec. 20
1)4 Jan. 2 Holders of rec. Dec. 21
Waltham Watch, prior pref. (quar.)-- -Western Steel Products (special)
50c. Jan. 15 Holders of rec. Jan. 2
*50e. Jan. 2 *Holders of rec. Dec. 21
West Va.Pulp & Paper corn.(qu.)
Wheeling Steel Corp., pref. A (guar.)._ _
*2 Jan. 2 *Holders of rec. Dec. 12
Preferred B (guar.)
*235 Jan. 2 *Holders of rec. Dec. 12
*25e. Jan. 2 *Holders of rec. Dec. 21
Wiser 011 (guar.)
•25c. Jan. 2 *Holders of rec. Dec. 21
Wolverine Tube, corn. (guar.)
*30c. Jan. 2 *Holders of rec. Dec. 13
*15c. Jan. 2 *Holders of rec. Dec. 13
Common (extra)
Woods Manufacturing, pref.(guar.) _ _ _
'34 Jan. 2 Holders of rec. Dec. 26
235 Jan. 2 Holders of rec. Dec. 20
Young (J. I.) Co.. com.(guar.)
Preferred (guar.)
134 Jan. 2 Holders of rec. Dec. 20

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 oi Company.

Cent. Payable

Books Closed.
Days Inclusive.

Railroads (Steam).
Feb. 13 Holders of rec. Jan. 10
Alabama Great Southern, pref
$1.50 Feb. 13 Holders of rec. Jan. 10
Preferred (extra)
Albany & Susquehanna
435 Jan. 2 Holders of rec. Dec. 14a
2% Feb. I Holders of rec. Dec. 27a
Atch. Topeka & Santa Fe preferred
2% Jan. 2 Holders of rec. Dec. 13
Atlanta Birmingham & Coast pref
. 335 Jan. 10 Holders of rec. Dec. 12a
Atlantic Coast Line RR., tom
Common (extra)
134 Tan. 10 Holders of rec. Dec. 12a
*234 Jan. 5 *Holders of rec. Dec. 15
Augusta & Savannah
•25c. Jan. 5 *Holders of rec. Dec. 15
131 Mar. 1 Holders of rec. Jan. 18a
Baltimore & Ohio, corn. (guar.)
Mar. 1 Holders of rec. Jan. 18a
Preferred (guar.)
(old & new;
870 Jan
I Holders of reo. Nov. 30,
Bangor* Aroos ,e0m.
134 Jan. 1 Holders of rec. Nov. 300
Preferred (quar.)
50c. Jan. 2 Holders of rec. Dec. 16a
Beech Creek (guar.)
Boston & Albany (guar.)
231 Dec. 3 Holders of rec. Nov. 30
*Holders of rec. Dec. 13
Boston & Maine, prior preferred (guar.)*Holders of rec. Dec. 13
First preferred, class A (guar.)
*131 Jan.
*Holders of rec .Dec. 13
First preferred, class B (guar.)
*Holders of rec. Dec. 13
First preferred, class C(guar.)
*151 Jan.
*Holders of rec. Dec. 13
*2% Jan.
First preferred, class D (guar.)
*Holders of rec. Dec. 13
First preferred, class E (guar.)
.13.6 Jan.
*Holders of rec. Dec. 13
6% preferred (guar.)
Dee. 30 Holders of rec. Dec. loo
Buffalo & Susquehanna, pref
Holders of rec. Dec. 27a
135 Feb.
Canada Southern
Canadian Pacific. corn.(guar.)
2% Deo. 3 Holders of rec. Dec. 2a
Central of Ga. Ry
3% Dee. 3
Jan. 15 Holders of rec. Dec. 31a
Central RR. of New Jersey (extra)
75e. Jan. 1 Holders of roe. Dec. tia
Chesapeake Corp.(guar.)
254 Jan. 1 Holdera of rec. Dec. 8a
Chesapeake & Ohio,corn.(guar.)
834 Jan. 1 Holders of tee. Dec. 6a
Preferred (guar.)
2% Jan. 10 Holders of rec. Dec. 26
Chic. Ind. dr Louisville, common
Jan. 10 Holders of rec. Dec. 26
Common (extra)
Jan. 10 Holders of rec. Dee. 26a
235 Dee. 31 Holders of rec. Dec. 2a
Chicago & North Western, corn
334 Dee. 31 Holders of rec. Dec. 2a
134 Dos. 31 Holders of rec. Nov. 29a
Chic.R.I.& Pacific,corn.(quar.)
335 Dee. 81 Holders of rec. Nov. 200
7% Preferred
Dec. 31 Holden; of rec. Nov. 29a
Jan. 20 *Holders of rec. Jan. 13
Cincinnati Northern
134 Dee. 31 Holders of roe. Dee. 20
Cincinnati Union Terminal, pref
Jan. 20 Holders of rec. Dec. 27a
Cleve. Cin. Chic.& St. L., corn.(guar.). 2
134 Jan. 20 Holders of me. Dec. 27a
Preferred mum.)
Dec. 31 Holders of rec. Dec. 20a
Colorado & Southern, corn. (annual)... 3
Dec. 31 Holders of roe. Dec. 20a
First preferred
Dec. 31 Holders of rec. Dec. 20a
Second preferred
Consolidated RRs.,of Cubs pref.((M.)
- 135 Jan. 2 Holders of rec. Dec. 10a
Feb. 1 Holders of rec. Jan. I5a
Ilobs RR.. oref. (guar.)
1 Holders of roe. Dec. 14
Delaware Hit
Jan. 5 Holders of rec. Dec. 20a
Detroit Hillsdale & Southwestern
Jan. 16 *Holders of rec. Jan. 8
Detroit River Tunnel
*$1.81 Jan. 2 *Holders of rec. Dec. 20
Elmira dr Williamsport, pref
Dec. 31 Holders of rec. Dec. 16a
Erie RR.Ist and 2nd preferred
•234 Jan. 15 *Holders of rec. Jan. 2
Georgia RR.& Banking (guar.)
235 Feb. 1 Holders of ree. Dec. 27a
Great Northern, preferred
Gulf Mobile & Northern pref.(qual.)... 134 Jan. 2 Holders of ree. Dec. 20a
235 Dec. 31 Holders of rec. Dec. fla
Rocking Valley, corn.(mum)_
235 Feb. 15 Holders of roe. Feb. la
Hudson & Manhattan Hy., pref
Illinois Central. leased lines
Jan. 2 Holders of rec. Dec. Ila
Joliet & Chicago (guar.)
13( Jan. 6 Holders of rec. Dec. 26a

Name of Company.

[Vol,. 129.
Cent. Payable.

Books Closed,
Days Inclusive.

Railroads (Steam) (Concluded).
Kansas City Southern, corn. (guar.) --134 Feb. 1 Holders of rec. Dec. 31a
Preferred (guar.)
Jan. 15 Holders of rec. Dec. 31a
Lackawanna RR. of N. J.(guar.)
Jan. 2 *Holders of me. Dee. 6
Lehigh Valley common (guar.)
8734c Jan. 2 Holders of rec. Dec. 14a
Common (extra)
Jan. 2 Holders of rec. Dec. 14a
$1.25 Jan. 2 Holders of rec. Dec. 146
Preferred (guar.)
Little Schuylkill Nov.. RR. dr Coal
$1.13 Jan. 15 Dec. 14
to Jan. 15
Louisville & Nashville
3% Feb. 10 Holders of rec. Jan. 15a
Mahoning Coal RR..common (guar.)... $12.50 Feb. 1 Holders of rec. Jan. 156
Preferred _
$1.25 Jan. 2 Holders of rec. Dec. 23
Maine Central, common (guar.)
Jan. 2 Holders of rec. Den. 16
Michigan Central
Jan. 29 Holders of rec. Dee. 276
Midland Valley, corn. (extra)
Dec. 30 Holders of rec. Dec. 14a
131 Dec. 81 Holders of rec. Des. 140
-Texas prof. A (quar.)..
Missouri Pacific pref.(guar.)
131 Dec. 31 Holders of rec. Dec. 13a
135 Dec. 31 Holders of rec. Dec. 13a
Preferred (acc't accum. dlvs.)
Mobile & Birmingham. preferred
2 Jan. 2 Holders of rec. Dec. 20
Mobile & Ohio
*335 Dec. 30 *Holders of rec. Dec. 23
Dec. 30 *Holders of rec. Dec. 23
Morris dr Essex
$2.125 Jan. 2 Holders of rec. Dec. 70
o Nash. Chatt.& St.L(stock city.)
e60 Feb. 15 Holders of rec. Jan. 25a
New London Northern (guar.)
*234 Jan. 1 *Holders of rec. Dec. 15
Jan. 1 *Holders of rec. Dec. 15
New York Central RR.(guar.)
Feb. 1 Dec. 28 to Jan. 22
N.Y. Chicago dr St. Louis, corn.(qu.)._
135 Jan. 2 Holders of rec. Nov. 150
Preferred series A (guar.)
135 Jan. 2 Holders of me. Nov. 15a
New York & Harlem corn. & pref
$2.50 Jan. 2 Holders of rec. Dec. 166
N.Y.Lackawanna & Western (qual.) - 134 Jan. 2 Holders of reo. Dee. 140
N.Y.. N.H.& Hartford, corn.(qu.)
134 Jan. 2 Holders of roe. Dee. 60
131 Jan. 2 Holders of rec. Dec. 6a
Preferred (quar.)
Northern Central
Jan. 15 Holders of rec. Dec. 3I0
Northern Pacific (guar.)
134 Feb. 1 Holders of rec. Dec. 310
Northern Securities
435 Jan. 10 Dec. 25 to Jan. 10
Old Colony (guar.)
*134 Jan. 2 *Holders of rec. Dee. 14
Pere Marquette. cam.(guar.)
135 Jan. 2 Holders of rec. Dec. 60
Prior pref,and pref.stocks(guar.). __134 Feb. 1 Holders of ree. Jan. 30
Pittsb. Ft. Wayne & Chic., corn.(qu.)... 134 Jan. 2 Holders of roe. Dee. 10a
134 Jan. 7 Holders of roe. Dec. 10a
Preferred (guar.)
Pittsburgh & Lake Erie
*52.50 Feb. 1 *Holders of rec. Dec. 27
Pittab. MeKeesp. & Yough. (quar.)...... $1.50 Jan. 2 Holders of rec. Dec. 150
Pittsburgh & West Va..corn.(quar.)..-- 134 Jan. 31 Holders of me. Jan. 150
Providence & Worcester (guar.)
*235 Dec. 31 *Holders of rec. Dec. 11
Reading Company common (quar.)- _ $1
Feb. 13 Holders of rec. Jan. 16a
50e. Jan. 9 Holders of rec. Dee. 19a
Second preferred (guar.)
Rensselaer bz Saratoga
Jan. 2 Holders of rec. Dec. 140
Rich.. Fredericksburg & Potomac
Dee. 31 'Dec. 22 to Jan. 2
Common stock and dlv. obligations-- *4
Com,stock and div. obiig. (extra)____ *4
Dec. 31 'Dee. 22 to Jan. 2
Jan. 1 Holders of rec. Dec. 21
Rome & Clinton
Jan. 2 Holders of rec. Dec. 2a
St. Louis-San Francisco, corn.(quar.)___ $2
134 Feb. 1 Holders of me. Jan. 20
Preferred ((War.)
Preferred (guar.)
134 May 1 Holders of ree. Apr. 125
134 Aug. 1 Holders of me. July la
Preferred (guar.)
Preferred (guar.)
134 Nov. 1 Hoidens of reo. Oct. la
St. Louis Southwestern pref.(quar.).... 131 Dec. 31 Holders of rec. Dec. Ila
Southern Pacific Co.(gear.)
134 Jan. 2 Holders of rec. Nov. 250
Southern Ry.,tom.(guar.)
Feb. 1 Holders of ree. Jan. 20
134 Jan. 15 Holders of rec. Dec. 260
Preferred (guar.)
Texas dz Pacific common (quar.)
131 Jan. 2 Holders of rec. Dec. 140
Preferred (guar.)
•13( Dec. 31 *Holders of rec. Dec. 14
Troy Union RR.(annual)
.Jan. 15 *Holders of rec. Dec. 27
Union Pacific. nom.(guar.)
234 Jan. 2 Holders of rec. Deo. 2"
United N. J. RR.& Canal (guar.)
*234 Jan. 10 *Holders of rec. Dec. 20
Virginian Ry.„ common (annual)
Dee 31 *Holders of rec. Dec. 16
Public Utilities.
Alabama Power, 67 pref.(guar.)
$1.75 Jan. 2 Holders of rec. Dee. 14
$6 preferred (guar.)
$1.50 Jan. 2 Holders of roe. Dee. 14
$1.25 Feb. 12 Kplders of rec. Jan. 15
$5 preferred (quar.)
Amer. Cities Pow.& Lt. class A (guar.). (5) Feb. 1 Hblders of rec. Jan. 4
Class 13 ((War.)
(5) Feb. 1 Holders of rec. Jan. 4
American Commonwealths Power
e235 Jan. 25 Holders of rec. Dec. 31
Corn. A & B (pay. In class A stock)
First and second pref ser. A ((War.)._ $1.75 Feb. 1 Holders of rec. Jan. 15
$1.62 Feb. 1 Holders of rec. Jan. 15
$6.50 first preferred (guar.)
$1.50 Feb. 1 Holders of rec. Jan. 15
$e; first preferred .quar.)(No. 1)
Amer. Community Power,1st Pr. (qu.)-- $1.150 Jan. 2 Holders of rec. Dec. 14
$1.50 Jan. 2 Holders of rec. Dec. 14
Preference (guar.)
0$1 Jan. 15 *Holders of rec. Dec. 14
Amer. Dist. Teleg.of N.J., corn.(qu.)- - .
'131 Jan. 15 *Holders of rec. Dec. 14
Preferred (quar.)
Amer. & Foreign Power. $7 pref. (qu.). 61.75 Jan. 2 Holders of rec. Dec. 140
$1 50 Tan, 2 Holders of rec. Dee. 140
$6 preferred (guar.)
Prof. allot. certifs.,65% paid (qual.).' 1.1331 Ian. 2 *Holders of rec. Dec. 14
25c Jan. 2 Holders of rec. Dec. 12
Amer. Gas & Elec.. corn.(guar.)
Common (1-50 share common stock)_
(I) Jan. 2 Holders of rec. Dec. 12
$1.50 Feb. I Holders of rec. Jan. 10
Preferred (guar.)
Amer. Natural Gas, 2nd pf. (qu.)
*1735c Jan. 1 *Holders of rec. Dee. 20
Amer. Power dr Light, $6 pref. (guar.)._ $1.50 Jan. 2 Holders of rec. Dec. 140
X5 preferred (guar.)
75e. Ian. 2 Holders of rec. Dec. 146
134 Jan. 2 Holders of rec. Dec. 14
$5 laf. A stamped.(guar.)
Amer. Public Service, pref. (quar.)
131 Jan. 2 Holders of rec. Dec. 16
Amer. Public Utilities, odor pref. (qu.)
1)4 Jan. 2 Holders of rec. Dec. 14
Participating preferred (guar.)
141 Tan
Holders of roe. Dec. 14
Amer. States Pub. Service, el. A (qu.) - saa40c Jan. 1 *Holders of rec. Dec. 21
Preferred (guar.)
4 .50 Jan. 1 *Holders of roe. Dee. 21
Amer. Superpower Corp., corn
Jan. 2 Holders of rec. Dec. 106
$1.50 Jan
First preferred (quar.)
2 Holders of me. Dec. 10
$6 preference ((War.)
$1.50 Jan. 2 Holders of rec. Dec. 10
Amer. Tele!). & Teleg. (guar.)
234 Jan. 15 Holders of tee. Dec. 200
Amer. Wat. Wks.& Elec. $6 let pf.(111 ) $1.50 Jan. 2 Holders of rec. Dec. I2a
Arkanaaa Natural Gas. pref. (quer.). -- •15c. Ian. 2'Holders of rec. Dec. 20
Arkansas Power dr Light,$7 Pf.(guar)
- $1.75 Jan. 2 Holders of rec. Dec. 16
$6 preferred (guar.)
$1.50 Jan. 2 Holders of rec. Dee. 16
Associated Oari & Elec., class A (go.)
-- ok50c. Feb. 1 *Holders of rev. Jan io
Associated Tel. & Tel., class A (quar.)_ Si Jan. 2 Holders of roe. Dee. 17
Class A (partcipating dividend)
250. Jan. 2 Holders of roe. Dee. 17
$1.50 Jan. 2 Holders of roe. Deo. 17
$6 preferred (quar.)
7% preferred (qual.)
13' Jan. 2 Holders of reo. Dee. 17
Class D (guar.)
$1 Jan. 2 Holders of rec. Dec. 17
Associated Telep. CUMIN,corn.(qu.) - '134 Jan. 15 *Holders of rec. Dec. 31
Barcelona Tract., Lt.& Pr., Prof.(au.).
Dee. 31 *Holders of me. Dec. 18
Jan. 15 Holders of rec. Dec. 23
Bell Telephone of Canada (guar.)
Bell Tel. of Pa., 635% prof. (guar.)._
144 Jan. 15 Holders of rec. Dec. 200
Birmingham Elec. Co.. $7 pref.(guar.)._ $1.75 Jan. 2 Holders of rec. Dec. 14
$6 preferred ((War.)
$1.50 Jan. 2 Holders of rec. Dec. 14
Boston Elevated Ry.corn.(guar.)
134 Jan. 2 Holders of rec. Dec. 10
First preferred
4. Jan. 2 Holders of rec. Dee. 10
334 Jan. 2 Holders of rec. Dec. 10
Brazilian Tr., L.& Pow. ord. (quar.)...
50c. Mar. I Holders of rec. Jan. 31
Ordinary (payable in ord. stock)
Mar. 1 Holders of rec. Jan. 31
1)4 Jan. 2 Holders of rec. Dec. 16
Preferred (guar.)
Bridgeport Hydraulic Co.(guar.)
•41%. Jan. 15 *Holders of rec. Dec. 31
British Columbia Power, class A
50e. Jan. 15 Holders of rec. Doe. 3
Bklyn.-Manhattan Tran., corn.(qu.)__ - $1
Jan. 15 Holders of rec. Deo. 316
liklyn.-Manh.'Pron. pref. Fur. A (gu.)
$1.50 Jan. 15 Holders of ree. Den. 310
Preferred, series A (guar.)
$1.50 Apr. 15 Holders of refl. Apr. la
Brooklyn & Queens Transit, Pf. (111ae.) Si
Jan. 2 Holders of me. Dec. 250
Brooklyn Union Gas(guar.)
$1.25 Jan. 2 Holders of rec. Dee. 2a
Buff., Niagara dr East. Pow.. coin.(qu.) *3734c Dec. 30 *Holders of rec. Dec. 15
Class A (guar.)
*3734c Dee. 30 *Holders of rec. Dee. 15
Preferred (guar.)
.4043. Jan. 2 Holders of rec. Dee. 16
First preferred (guar.)
•$1.25 Feb. 1 Holders of rec. Jan. 15
Calgary Power, common (guar.)
134 Jan. 2 Holders of me. Dec. 14
California-Oregon Power, 7% Pt. (gill. 134 Jan. 15 Holders of roe. Dec. 31
6% preferred (guar.)
134 Jan. 15 Holders of rec. Dec. 31
Canada Northern Power, corn. (guar.)._
100. Jan. 25 Holders of rec. Dec. 31
Preferred (guar.)
131 Jan. 15 Holders of rec. Dec. 31
Capital Tract., Wash., D. C.(quar,)... 134 Jan. 1 Holders of rec. Dee. 9
Carolina Power & Light, 37 pref.(guar.) $1.75 Jan. 2 Holders of rec. Dec. 14
$1.50 Jan. 2 Holders of rec. Dec. 14
$6 preferred (guar.)
Central Atlantic States Bert., pref. (qu.) 134 Jan. 1 Holders of rec. Dec. 20

DEc. 28 1929.]
Nam' of Company.


Cent. Payable.

looks Closed
Days Inclusive.

Name of Company.

Cent. Payable.

Books Closed.
Days Inclusive.

Public Utilities (Continued).
Public Utilities (Continued).
50c. Jan. 15 Holders of rec. Dec. 20a
Internat. Telep. dr Teleg. (guar.)
Centro!Illinois Light,6% pf.(guar.).- 134 Jan. 2 Holders of rec. Dec. 14
$1.75 Jan. 2 Holders of me. Deo. 5
Interstate Power. $7 pref.(guar.)
lyd Jan. 2 Holders of rec. Dec. 14
7% Preferred (guar.)
$1.50 Jan. 2 Holders of reo. Dee. 5
$6 Preferred (guar.)
Central Ill. Pub. Sen.. 36 pref.(guar.). $1.50 Jan. 15 Holders of rec. Dec. 31
Interstate Public Service prior lien (cm.). 14 Jan. 15 Holders of rec. Dec. 31
Central Public Service. $6 pref.(qu.)- $1.50 Jan. 1 Holders of rec. Dec. 12
Iowa Public Service, $6 let pfd.(guar.). *1.50 Jan. 1 *Holders of ree. Dec. 14
$1.75 Jan. 1 Holders of rec. Dec 12
$7 preferred (guar.)
• $1.625 Jan. 1 *Holders of reo. Dec. 14
$6.50 preferred (guar.)
Jan. 2 *Holders of rec. Dec. 31
Central& South West. Util.(no stk.) -- *el
*51.75 Jan. 1 *Holders of rec. Dec. 14
$7 first preferred (guar.)
10e Jan. 1 Holders of rec. Dec. 5
Central States Elec. Corp., com.(guar.)
•$1.75 Jan. 1 *Holders of rec. Dec. 14
$7 second preferred (guar.)
12)4 Jan. 1 Holders of rec. Dec. 5
Common (payable In common stock)
114 Jan. 2 Holders of rec. Dec. 16
Jamaica Public Service. pref.(quar.)- 4
14 Jan. 1 Holders of rec. Dec. 5
7% pref., Issue of 1912 (guar.)
1% Jan. 1 Holders of res. Dec. 16
Jersey Central Power &Lt.7% pf.(c11.)134 Jan. 1 Holders of rec. Dec. 6
6% Preferred (guar.)
134 Jan. 1 Holders of rec. Dec. 16
6% Preferred (guar.)
Cony. pref., series of 1928(guar.).- (s) Jan. 1 Holders of rec. Dec. 5
Kan. City Power & Light, pref. B (qu.). 1.50 Jan. 1 Holders of reo. Dec. 14a
Cony. pref., series of 1929 (guar.).- (s) Jan. 1 Holders of rec. Dec. 5
Jan. 1 Holders of rec. Dec. 14
Kansas City Pub.Sem.. pref. A (gu.)
Central States Power dr Light.Pref.(1n.) 51.75 Jan. 2 Holders of rec. Dec. 5
134 Jan. 2 Holders of rec. Dec. 15
Kansas Gas & Elec., pref. (guar.)
Central States Utilities Corp., pfd.(gli.) $1.75 Jan. 2 Holders of roe. Dec. 5
114 Jan. 2 Holders of rec. Deo. 200
Kentucky Securities Co., com.(guar.).Chic., North Shore & 5111w.. pref.(on.).. •114 Jan. 1 *Holders of rec. Dec. 18
1% Jan. 16 Holders of rec. Dec. 20a
Preferred (guar.)
5134 Jan. 1 *Holders of ree. Dec. 16
Prior lien stock (guar.)
Lone Star Gas Corp., common (guar.)._ •20c. Dec. 31 *Holders of rec. Dec. 20
Chic. Rap. Transit, pref. A (monthly).- •650 Jan. 1 *Holders of rec. Dec. 17
10c. Jan. 1 Holders of rec. Dec. 16
Long Island Lighting. common
Prior preferred, aeries A (monthly).- •65e Feb. 1 *Holders of rec. Jan. 21
1% Jan. 1 Holders of rec. Dec. 16
7% preferred A (guar.)
Prior preferred, series A (monthly).-- •650 Mar. 1 *Holders of tee. Feb. 18
1% Jan. 1 Holders of rec. Dec. 16
6% preferred B (guar.)
Prior preferred, series B (monthly).- •600 Jan. 1 *Holders of ree. Dec. 17
1% Jan. 2 Holders of rec. Dec. I30
Mackay Cos. common (guar.)
Prior preferred, series 13 (monthly).- •600 Feb. 1 *Holders of rec. Jan. 21
Jan. 2 Holders of rec. Dec. 130
Prior preferred, series B (monthly).- •60e Mar. 1 *Holders of rec. Feb. 18
1)4 Jan. 2 Holders of rec. Dec. 20a
Manhattan Ky.. guaranteed (quar.)---'1)4 Jan. 2 *Holders of rec. Dec. 31
Gold & Stock Teleg.(guar.)
40e. Jan. 2 Holders of rec. Dec. 20a
Modified guarantee
Cincinnati & Sub. Bell Telephone(qual.) $1.1 Jan. 2 Holders of reo. Dec. 18
Memphis Power & Light, $7 pref.(qM.). $1.75 Jan. 2 Holders of rec. Dec. 14
Cleveland Elec. Illuminating. corn.(W.) *40C Jan • 2 *Holders of rec. Dec. 20
$1.50 Jan. 2 Holders of rec. Dec. 14
$6 preferred (guar.)
Preference (guar.)
134 Mar. 1 Holders of rec. Feb. 14
Dec. 31 'Holders of roe. Deo. 17
Jan. 1 Holders of me. Dec. 26
Michigan Bell TeleP. (guar.)
common (guar.)
Cleveland Ry.
134 Jan. 1 Holders of rec. Dec. 16
Michigan Elec. Pow. Co.. 7% PL (q11.)Columbia G.& E.Corp.,oom.(in Mk.)_ 125 Mar.31 Holders of rec. Feb. 28
14 Jan. 1 Holders of rec. Dec. 16
6% preferred (guar.)
500. Jan. 1 Holders of rec. Dec. 100
Columbus Electric dr Power, com.(qu.).
I% Jan. 1 Holders of rec. Dec. 100 Middle West Utilities, new com. (pay.
Preferred B (guar.)
/2 Feb. 15 Holders of roe. Jan. 15a
In com. stk.) (qu.)(No. 1)
134 Jan. 1 Holders of rec. Dec. 10.1
Second preferred (guar.)
• bbl.50 Feb. 15 *Holders of roe. Jan. 16
$6 cony. pref. sec. A (guar.)
Preferred C (guar.)
134 Jan. I Holders of ree. Dec. 100
1% Jan. 1 Holders of reo. Dec. 10a Midland Utilities, 7% prior lien (guar.). 14 JAIL 8 Holders of rec. Dee. 21
Preferred D (guar.)
134 Jan. 6 Holders of rec. Dec. 21
Feb. I Holders of Teo. Jan. 20a
Commonwealth Power common tquar.)- $1
6% prior lien (guar.)
134 Jan. 6 Holders of rec. Dec. 21
Preferred (guar.)
134 Feb. 1 Holders