The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Financial
The.
glinntrami
Railway& Industrial Compendium
State & Municipal Compendium
VOL. 125.
rtintrie
Public Utility Compendium
Railway Earnings Section
SATURDAY,DECEMBER 31 1927.
4'Ili
(Chronicle
PUBLISHED WEEKLY
Terms of Subscription—Payable in Advance
Including Postage—
12 Mos. 6 Mos.
Within Continental United States except Alaska
$10.00
$6.00
In Dominion of Canada
11.50
6.75
Other foreign countries, U. S. Possessions and territories_
13.50
7.75
NOTICE.—On account of the fluctuations in the rates of exchange,
remittances for European subscriptions and advertisements must be made
in New York funds.
The following sections or supplements are also issued. For each or
these tbe subscription price Is $5.00 per year. For any three combined
the subscription price is $12 per year and for the whole five combined
It is $20 per year.
COMPENDIUMB—
SECTIONS—
PUBLIC UTILtrr—(semi-annually)
BANK ANDAQuorknox—(monthly)
RAILWAY & INDUSTRIAL-030111i-E11/1.)
RAILWAY Egatruslos—(monthly)
STATE AND MUNICIPAIr—(se111-allnually)
Terms of Advertising
Transient display matter per agate line
45 cents
Contract and Card rates
On request
Cinceoci 017ICE—In charge of Fred. H. Gray. Western Representative.
208 South La Salle Street, Telephone State 0613.
LONDON Orszcz—Edwards & Smith, 1 Drapers' Gardens, London, E. C.
WILLIAM B. DANA COMPANY, Publishers,
Front, Pine and Depeyster Streets, New York
•
Published every,Saturday morning by WILLIAM B. DANA COMPANY.
President and Editor, Jacob Seibert: Business Manager, William D. Riggs;
Treas., William Dana Seibert: Sec., Herbert D.Seibert. Addresses of all. Office of Co.
The Financial Situation.
Rather overmuch has been made of the changes
announced the present week in the personnel of the
United States Steel Corporation made necessary
by the demise of Judge Elbert H. Gary. Judge Gary
was so prominently in the public eye during the
whole of the existence of the Steel Corporation, and
took such great delight in having himself surrounded
by newspaper men, that the public naturally got the
impression that he was the head and front of this
gigantic steel property. Moreover, his connection
with the Steel Corporation extended over such a
long period of time that the assumption was natural that to him also the Corporation owed its existence. Neither supposition was correct.
The Steel Corporation was the creature of the
brain of the late J. P. Morgan, though Judge Gary
played an important part in the legal formalities incident to its organization. As the largest industrial
undertaking in the world the Steel Corporation met
with sharp condemnation at the time of its inception,
and Mr. Morgan was mercilessly assailed for having promoted the great undertaking. Never was
mortal man so bitterly denounced, while books by
learned authors were written to show that by no
possibility could the merger ever succeed. No one
ever denounced Judge Gary for his connection with
the consolidation, for it was recognized and admitted that he was acting merely under the direction
and the guidance of Mr. Morgan. Though Mr. Morgan has been dead fourteen years, he lived long
enough to see his critics confuted and the company
brought to a high plane of prosperity through the application of the same Morgan policies and methods
that had been applied with such great success in the
Bank and Quotation Section
Bankers' Convention Section
NO. 3262.
rehabilitation Of numerous railroad properties by
Mr. Morgan during the closing quarter of the last
century.
To-day the Steel Corporation through steadfast
adherence to the business and financial policies
which Mr. Morgan insisted at the very start must be
carried out, ranks not only as the greatest of modern
day industrial undertakings, but one of the most
admirably managed and the most successful among
them. As we have said on a previous occasion, the
Steel Corporation stands as a monument to his great
genius and wonderful organizing ability. It is well
enough to recall, too, that the Steel Corporation had
to meet legal attacks which charged that its organization was in conflict with the laws of the land, and
in combatting these attacks it was as successful as
in its business administration, and candor compels
the statement that when these legal assaults reached
the tribunal of last resort, the Supreme Court of the
United States, the only thing found vulnerable and
condemned by the Court was the so-called Gary dinners.
Mr. Gary,'s connection with the Steel Corporation
was important, but the part he played in the actual
management of the property has always been exaggerated in the public mind. The reason for this has
already been mentioned, namely, that he talked so
freely to newspaper men, sending out advance notices when he purposed saying anything. The daily
papers in their news columns this week have spoken
of the great responsibilities he carried. Virtually
he had no responsibilities. The executive management of the different properties has been for over
sixteen years in the hands of President James A.
Farrell who naturally is continued in that capacity
and no one ever supposed that any change would be
made in that respect. The policies to be pursued in
the management of the properties have always been
dictated by the Board of Directors, one of the strongest ever in control of an important property. In
this Judge Gary had a voice of course, but the Board
has long been pre-eminently distinguished for its
great independence of judgment.
The dominant power has always been the Morgan
interests, re-enforced by the interest represented by
George F. Baker of the First National Bank, who
from the first has been associated with the Morgan
people in all their great undertakings, and has valiantly co-operated with them in enforcing sound financial methods and enduring business policies. It
seems natural in'these circumstances that the present J. P. Morgan should have agreed to take the position of Chairman of the Board of Directors, but relieved of all executive duties, and that Myron C. Taylor should be given the place of Chairman of the Ft-
3522
THE CHRONICLE
[VoL. 125.
merchandise traffic caused by trade recession has
operated in the same direction. As pointed out
by us last week, bituminous coal production in the
United States in November aggregated only 40,628,000 tons as against 59,213,000 tons in November
1926. As other typical instances of declines in earnings we might mention the Pennsylvania Railroad
with gross of $52,622,554 against $62,667,412 and
net of $12,376,746 against $15,005,188, and the New
York Central with gross of $29,914,462 against $33,841,934 and net of $4,956,418 against $7,681,867.
In the Spring wheat States of the Northwest,
earnings returns have been much more satisfactory,
the Northern Pacific, for instance, reporting gross
of $9,225,518 for November this year against $8,807,047 for November last year and net of $4,000,523
against $3,384,764, and the Great Northern gross
of $12,224,036 against $12,218,696 and net of $5,535,733 against $5,786,079, while the Milwaukee & St.
Paul has reported gross of $13,903,742 against $13,928,917 and net of $3,272,182 against $3,448,057.
But even in the case of these stocks, it has not been
easy to stimulate speculative activity. Rock Island
stock has displayed some strength and this stock
2 against 108% on Friday
There has been no great change in the character closed yesterday at 1111/
of the stock market the present week. Price fluctu- of last week. This company's earnings have been
ations have continued more or less irregular, but keeping up well and rumor has it that the dividend
with firmness and strength the prevailing character- on the shares is to be increased. These rumors have
istics. The copper shares have been less conspicuous served to benefit also St. Louis-San Francisco
as market leaders than in the weeks immediately shares, since that company holds a considerable
preceding and though closing quite generally lower amount of Rock Island stock. But trading has been
than on Friday of last week, have well maintained limited even here.
The specialties have again commanded a considtheir big advances, and in one or two instances have
moved still higher. Standard stocks of high grade erable amount of attention and some new leaders
have shown an advancing tendency, but only in a among these have come to the front and distinmoderate kind of way. For instance, General Mo- guished themselves for sharp advances. Among
8 on Fri- these may be mentioned Christie Brown, which
4 against 1341/
tors closed yesterday at 1371/
2 on Friday of
1
/8 yesterday against 69/
day of last week and 127% at the close on Dec. 9. closed at 897
United States Steel declined after the news of the last week, American International Corporation,
8, Brooklyn Edison
/
changes made in the management of the Corpora- which closed at 70 against 597
tion, as often happens when important news which closed at 217 against 197%, and Consolidated
4 against
has become known, but subsequently recovered most Gas of New York which closed at 1241/
2.
8 against 1171/
of the loss and closed yesterday at 1521/
8 on Dec. 9.
/
2 all week, but
Call money has ruled as high as 51/
4 on Friday of last week and 1417
1541/
Rumors or suggestions that a further stock distri- this has had no very great influence on trading.
bution or a stock split-up is impending, which have Neither did the further increase in brokers' loans in
found more or less currency, are to be discredited; the report issued after the closse of business on
the company is now paying 7% on the shares after Thursday cause any setback in the market yesterday.
the recent 40% stock dividend, which is equivalent Tax reduction legislation at Washington is attractto 9.8% on the old shares, and with the steel trade ing a good deal of notice and the suggestion of Secin its present depressed state the company will be 'retary Mellon that the new legislation be delayed
doing well if its earnings prove equal to this high until after Mar. 15 so that it cannot apply to the
income returns for 1927, is not viewed with favor.
level of distribution.
The railroad list does not command any great In fact, it is causing considerable consternation. It
degree of speculative favor and the reasons for this is felt that only some all pervading influence, such
become apparent when the returns of earnings for as drastic income tax reduction, will avail to bring
the month of November which are now coming to about business revival and that if this is to be dehand are examined. These returns, which will be layed, or worse still, actually abandoned, the counfound detailed at length in our news columns on try may easily run into business prostration of a
pages 2634 and 2635, nearly all make very unfav= very pronounced character.
orable comparisons with a year ago—in some inAnother big increase, superimposed on all the
stances strikingly so, as in the case of the Norfolk
& Western which reports gross for the month this previous big increases, is the record made by brokyear of $8,450,415 against $11,444,946 in November ers'loans in this.city the present week. The further
last year and net of $2,633,589 (before taxes) increase is no less than $73,291,000, and it follows
against $5,134,292. The reason for the big loss in $85,976,000 increase in the return for Wednesday
this instance is the great falling off in the coal traf- night of last week, making a further expansion in
fic. And as a matter of fact the shrinkage in the the short space of a fortnight of *159,267,000. As
coal traffic has been an unfavorable factor with a result, the grand total of loans to brokers and dealthe railroads nearly everywhere and the lessened ers (secured by stocks and bonds) by the 51 reportnance Committee where he will have full scope for
the exercise of his great talents as a most eminent
financier.
There has not been the slightest change in the
conduct of the Steel Corporation since the death of
Mr.,Gary. Nor is there likely to be any in the future. The newspaper men will miss Judge Gary's
genial presence and will no longer be certain of a
"story" whenever the Steel Directors meet, for
Messrs. Morgan, Taylor and Farrell are not very
loquacious individuals or likely to seek the public
ear in season and out of season. In reality, there is
no good reason why the head of the Steel Corporation should periodically interpret trade conditions
or dilate upon the outlook for the Steel Corporation.
Such action often involves embarrassing possibilities. The Steel Corporation is no longer in need of
a public spokesman,if it ever was in such need in the
past. It is too strongly entrenched in public confidence to need extraneous aids of any kind, and neither Mr. Morgan, Mr. Taylor or Mr. Farrell is likely
to endeavor to exploit his own personality—which
is as it should be.
DEC. 31 1927.]
THE CHRONICLE
3523
lug member banks in New York City is raised to $3,- increased during the week from *423,718,000 to
717,622,000, and of course establishes another new $528,097,000, which means an addition to the Rehigh record. At this new figure- comparison is with serve credit employed in this district during the
$2,787,761,000 on Dec. 29 last year. The increase as week of $104,379,000. On the corresponding date
compared with twelve months ago is steadily grow- in 1926 total bill and security holdings of the New
ing larger, and is rapidly approaching the billion- York Reserve Bank were only $339,793,000, and the
dollar mark. In exact figures the expansion for jump from that figure to $528,097,000, the presthe twelve months is $929,861,000. As in all pre- ent amount, represents an increase of $188,ceding weeks, too, large increases are found under 304,000.
Turning now to the statement for the twelve Reall the different categories, showing a general disposition to extend borrowing and an equally general serve banks combined including, of course, New
disposition on the part of all classes of loaning in- York, and in which totals the operations of the New
stitutions to encourage and further the tendency. York Reserve Bank always exercise a dominant
Thus the loans which these reporting member banks part, the same tendencies and characteristics are
made for their own account now stand at $1,373,- observable. In this case, naturally, we are dealing
536,000, as against $1,008,235,000 on Dec. 29 1926; with much larger totals. During the week the disthe loans made for account of out-of-town banks count holdings of the twelve Reserve banks, which
now aggregate $1,338,291,000 against $1,021,747,000, item reflects direct borrowing by the member banks,
and the loans for account of others $1,005,795,000 increased from $578,156,000 to $609,209,000, the acagainst $757,779,000, the increase being in excess of ceptance holdings, which reflect indirect borrowing,
increased from $365,772,000 to $385,527,000, and in
30% in each one of these great loaning divisions.
The further borrowing, too, is now leading to in- addition, the holdings of United States Government
creasing recourse to the facilities of the Federal Re- securities have been raised from $587,952,000 to
serve banks. This marks its entrance upon a new $603,126,000. A year ago the amount of United
phase, which gives added occasion for anxiety. Pre- States Government securities held by the twelve Reviously the member banks had been financing the serve institutions was only $317,204,000. The volgrowing volume of speculation with their own ume of discounts, however, at $609,209,000 Dec. 28
means. As a matter of fact, with industrial activity the present year is not quite up to the amount on
waning, and a lessened demand for banking accom- Dec. 29 1926, which was $710,921,000. Altogether
modation on that account, the member banks have the aggregate of bill and security holdings now
until lately been able actually to diminish their stands at $1,598,842,000, against $1,532,860,000 a
borrowing at the Reserve institutions, at a time week ago and $1,409,529,000 12 months ago.
when brokers' loans were mounting higher and still
Through their larger borrowing, the member
higher. But that is no longer the ease and the mem- banks were able to increase their reserve account
ber banks are now again extending their borrow- with the Reserve institutions and this brought with
ings, though there has been no revival of trade that it an increase in the deposits, carrying the total up
would warrant such a course. The present week, from $2,434,003,000 Dec. 21 to $2,473,276,000 Dec.
for instance, the discount holdings of the Federal 28. The amount of Federal Reserve notes in circuReserve Bank of New York have run up from $192,- lation, however, was reduced during the week from
794,000 to $263,487,000, at which figure comparison $1,821,332,000 to $1,813,198,000. Gold reserves at
is with only $173,655,000 on the corresponding date the same time further slightly declined, the amount
in 1926. At the same time the 'acceptance holdings dropping from $2,742,323,000 to $2,739,100,000. The
have increased during the week from $76,896,000 result altogether is that the ratio of total reserves
to $95,931,000, which last is somewhat below the (including reserves other than gold) to deposit and
total of the same item on Dec. 29 1926 when the Federal Reserve note liability combined is now
amount was $100,045,000.
66.8% against 67.2% a week ago. On Nov. 23 this
Most noteworthy of all, holdings of the United ratio was 71.9%.
States Government securities have been further enlarged the present week, though the United States
Last Saturday's return of the New York Clearing
Treasury has not been obliged to engage in any ad- House banks and trust companies showed changes
ditional borrowing at the Reserve bank. The New difficult to reconcile one with another. Loans and
York Reserve Bank has simply entered the market discounts increased as compared with the previous
and bought some more United States bonds and Saturday $43,435,000, but this brought with it no
some more Treasury notes, with the view to putting increase in deposits, as usually happens; instead,
more Reserve credit into use, thereby further pro- actually a decrease in net demand deposits occurred
moting present inflationary tendencies. A demand in the large amount of $56,985,000, though this was
for currency for holiday purposes may have played offset by an increase of $28,986,000 in the time desome part in the increase in borrowing by the mem- posits. The drawing out of money for holiday pur• ber banks, but certainly this cannot be held respon- poses might account for part of this, though apparsible for the action of the managers of the Reserve ently not for the whole of it. Reserves kept with
institution in going into the market and acquiring the Federal Reserve Bank declined $5,790,000, but
additional amounts of United States obligations.
on the other hand, cash-in-own-vaults increased $3,Total holdings of United States Government se- 956,000, though it is well to remember that this latcurities were raised during the week from $154,028,- ter does not constitute legal reserve for member
000 to $168,679,000; on Dec. 29 1926 the holdings of banks of the Reserve. The shrinkage in deposits,
United States Government securities by the New diminishing reserve requirements, served to offset
York Reserve Bank stood at only $66,093,000, show- the loss in reserves, and accordingly excess reserves
ing an increase for the twelve months of over $102,- increased slightly—to $18,821,100 Dec. 24 from *18,000,000. The grand aggregate of bill and security 281,560 on Dec.17. United States Government deholdings combined of the New York Reserve Bank posits remained virtually unchanged, being $50.051,-
3524
TUE CHRONICLE
[Void. 126.
000 last Saturday as against $50,052,000 the pre- petitions for confirmation of rights, for which pevious Saturday.
titions were not presented within the terms originally fixed by the original law." It was remarked
Several important developments in Mexico dur- that by this means the waiver of rights absolutely
ing the past week appeared to presage an early in favor of the Government entirely disappears.
settlement of some of the outstanding difficulties
The Presidential bill was passed unanimously by
in Mexican-American relations. President Canes the Chamber of Deputies Tuesday, the Mexican Sentook the initiative Monday in an attempt to solve ate adding its approval in principle Thursday. This
the difficult question of the petroleum land laws, was taken to mean that the revisions will become
which have been a source of much friction between law, as President Calks naturally will sign his own
the two governments. A bill seeking amendment of proposals. In Washington, a dispatch of Dec. 27
those sections of the organic law of Article XXVII to the New York "Times" said, President Calles's
of the constitution which have been objected to by move was regarded as one of the most hopeful signs
the United States Government was sent to the Cham- on the Mexican horizon since the oil and land law
ber of Deputies by the Mexican Executive. The controversy between the two Governments became
amendment, dispatches said, would be in accord with serious. Solution of the problem, the dispatch addthe recent decision of the Mexican Supreme Court in ed, would be a tribute to Ambassador Morrow and
favor of American oil interests, holding certain pro- the good feeling developed by the Washington-Mexvisions of the law to be confiscatory. Under Mexi- ico City flight of Colonel Lindbergh. A further good
can legal practice the Supreme Court must make omen for the relations between the two countries
five similar decisions before a statute is definitely was seen Wednesday in the granting by the Meximade void, and this was regarded as insuring a can Congress to President Calles of extraordinary
lengthy delay while the Court was considering the powers to act in certain phases of the agrarian situcases. The action of the Mexican Executive in ation. The decree authorized the President to legissweeping aside the legal technicalities was consid- late for a period of six months from the date of pubered, therefore, as highly important practical evi- lication on questions of rural credit, waters of nadence of Mexico's desire for closer and friendly re- tional proprietorship and national chambers and
lations with the United States. The effect of the associations of agriculture and colonization. The
proposed amendment was foreseen, according to a President, in Mexico City opinion, will have the
Mexico City dispatch of Dec. 27 to the New York power to see that the agrarian laws are properly ap"Times," as a renewal of foreign petroleum opera- plied and that there is no abuse of the rights of the
tions in Mexico on a scale equal in intensity to that owners of property. The improper application of
of any period in Mexican history.
the legislation was said to have resulted in many
President Calles's message to the Chamber of Dep- claims by American owners, which added to the
uties detailed the history of the Mexican Petroleum strain in relations between the United States and
Co. case, involving the revocation by the Ministry of Mexico.
Industry and Commerce of drilling permits for three
wells in the famous producing sector of Chapacao
The likelihood that the United States Government
for not having sought confirmation of the company's also will take practical steps for improving Mexicanrights in terms of the petroleum law regulating Ar- American relations was indicated early this week
ticle XXVII of the constitution. It continues that, when it was suggested that the ban against shipthe Supreme Court having found certain points un- ments of airplanes and airplane equipment to Mexconstitutional and therefore anomalous, a situation ico will soon be lifted. A recommendation that orhas arisen placing the companies concerned under ders be issued removing the embargo against the
the protection of the law, but in antagonism to the exportation of aircraft to Mexico was submitted to
constitution. The Mexican Executive, it was added, Secretary of State Kellogg in the previous week by
thus finds itself unable to continue the uniform ap- Representative Edith Nourse Rogers, of Massachuplication of the law and must find an immediate so- setts. It was understood, dispatches said, that Seclution of the situation in accordance with the policy retary Kellogg was favorably impressed with these
of justice which it is always desirous of observing. representations and that he immediately entered
The Presidential project then gave in detail the pro- into communication on the subject with Ambassador
posed reforms of Articles 14 and 15 of the regula- Morrow. "Unless there is a change of program," a
tory law. Article 14, in effect, substitutes fifty- New York "Times" report from Washington added,
year concessions for oil land titles acquired before "it is expected that the Secretary of State will an1917. President Calles in his message suggested the nounce at an early date that export licenses to ship
following change: "Confirmation of these rights airplanes and airplane equipment to Mexico will
shall be granted 'without limitation of time when in be approved henceforth under certain conditions."
favor of the surface owners and for the term of the Attention was also called to a bill prepared by Postcontract when treating of rights derived from con- master-General New and approved by President
tracts closed with owners of surface rights or their Coolidge looking to the inauguration of air mail
successors in the title'."
service between the United States and Mexico City
Article 15 declares forfeited those titles to oil and to points in Central and South America. Conlands for which no applications for confirmatory tractors are said to be ready to bid on routes to Mexconcessions have been made within one year from ico City and elsewhere in Latin America, making .it
the going into effect of the new law, which came into possible that the service will be installed before the
force at the first of this year. To this article Presi- end of 1928. Here again, the good-will flight of Coldent Calles recommended the following addition: onel Lindbergh and the effective services already
"The term of one year running from the day follow- rendered by Dwight W. Morrow, American Ambasing publication of these reforms until the same day, sador in the Mexican Capital, are said to be the reainclusive, of the following year is fixed for lodging sons for the decision expected to be made by the
DEC. 31 1927.]
THE CHRONICLE
American Government The impression of a forthcoming change was further strengthened Tuesday,
when permission was granted the Mexican Government to purchase the plane in which Mrs. Evangeline
Lindbergh, mother of the famous Colonel, flew from
Detroit to Mexico City. It was indicated in Washington, at the same time, that the policy to be followed for the present will be that of dealing with
each individual application for export licenses upon
its own merits as a separate case. This rule, it was
intimated in a Washington dispatch to the New
York "Times," will be observed in the case of airplanes, to see that none fall into the hands of Mexicans unfriendly to the Calles Government.
A further practical step toward crystallization of
the new spirit of cordiality between Washington and
Mexico City was seen by observers in definite moves
for the adjustment of the public, debt of the Mexican Republic. The arrival in New York early this
week of Fernando de la Fuente, chief of the Mexican Government Department of Credit, to confer
with bankers on Mexico's finances was the first of
these moves. Mexico is committed to pay in the
service of her foreign debt next year 117,762,000
pesos (about $59,000,000). This sum is due the
International Committee of Bankers on Mexico at
New York. In a statement issued in Mexico City,
Dec. 26, by the Ministry of Finance, it was declared
that Mexico would have great difficulty in fulfilling
its obligations. This situation, the Finance Ministry added, will result from the expiration of the
moratorium on Dec. 31, which was agreed upon with
the Bankers' Committee for the duration of the original loan contract, first embodied in the de la
Huerta compact and afterwards revised in an agreement concluded in 1925 by Senor yani when he was
Minister of Finance. The payments due next year
embrace interest and amortization on recognized obligations under the agreements mentioned and also
of interest and amortization on obligations not included in the agreements with the Committee, and
payments on differences in exchange. In substance,
Mexico's foreign obligations, according to a New
York "Times" account dated Mexico City, Dec. 26,
will amount to 42% of her total estimated expense,
according to budget calculations for the year. By
no possible economies, it was indicated, could Mexico bb enabled to meet this enormous charge hanging over the heads of the Calles Administration.
The logical conclusion, according to Mexico City observers, appears to be a new international agreement, based on Mexico's ability to pay. This was
said to be the aim of Senor de la Fuente in going to
New York. A second important step looking to the
adjustment of Mexican finances was the notice of a
decree, passed by the Chamber of Deputies Monday,
empowering President Calles to legislate regarding
the public indebtedness of the Republic. The decree
was issued in accordance with a Presidential petition seeking "extraordinary faculties regarding the
public debt." The Federal Government, it was explained in the petition, "does not think it is able to
comply entirely with the obligations contracted under the Lamont-de la Huerta agreement as revised
in October 1925, notwithstanding the great efforts
it has made." The economic condition of the country was mentioned as the cause of this situation.
"The Executive," it was added in the petition, "proposes to appropriate for the public debt 12,500,000
3525
pesos from the ordinary income of 20,000,000 estimated as probable yield from export, production and
taxation of petroleum, plus all surplus income over
estimated receipts of 290,000,000 pesos. Therefore
it is proposed as convenient to concede to the Executive during the coming year the power sought to
cover the most obligations."
Colonel Charles A. Lindbergh continsed this week
his admirable work of cementing the good-will and
good relations of the United States with Mexico and
the countries of Central America. The Colonel,
after his arrival in Mexico City, Dec. 14, partook
in a round of official and semi-official functions
with his customary engaging modesty, which endeared him greatly to the Mexican people. No small
part of the new spirit of cordiality in the relations
between Washington and Mexico City is credited
to him by observers. Flying south according to his
own schedule, Colonel Lindbergh winged his way
out of the Mexican capital early Wednesday morning, landing at Aurora Field, Guatemala City, seven
hours later after an admittedly perilous flight over
the sparsely populated mountainous region of southern Mexico. He was acclaimed with an enthusiasm
that was said to have surprised even Colonel Lindbergh himself. "Hello, Guatemala," was his smiling
greeting as he stepped out of the plane. President
Chacon, members of his Cabinet and high State
officials were at the field, along with American Minister Geissler, to welcome the flyer. Colonel Lindbergh was reported, meanwhile, to have again
changed his plans so as to include a greater number of Central and South American capitals in his
itinerary. In addition to each of the Central American republics, he was said to contemplate flights to
Bogota, Colombia, and Caracas, Venezuela, returning via the Antilles, Porto Rico and Cuba.
Terrorist bomb explosions that wrought havoc in
two branches of American banks in Buenos Aires
occurred on Christmas Eve, twenty persons being
injured. The explosions were attributed to partisans of Sacco and Vanzetti, the Massachusetts anarchists who were convicted of murder in 1920 and
executed earlier this year. The first of the explosions occurred in the Buenos Aires branch of the
National City Bank of New York. Shortly afterward another bomb exploded at the Argentine
Branch of the First National Bank of Boston, about
three blocks away. These are the only American
banks in Buenos Aires, although there are a dozen
other foreign banks in the same section. Thomas F.
Little, Manager of the National City Bank, and his
assistant, Clarence H. Wisely, were reported slightly
injured. Three other persons were said to be seriously injured. The banks, according to an Associated
Press dispatch of Dec. 25, have been under guard
since the recent Sacco-Vanzetti demonstrations in
the Argentine Capital, but vigilance was relaxed as
tension over the executions in Boston seemed to die
down. Charles E. Mitchell, President of the National City Bank, cabled the opinion that the explosion was the work of "disordered, anarchistic
minds," and ordered that all possible relief measures
be taken.
A balanced budget prepared by Premier and
Finance Minister Raymond Poincare was adopted
by the French Parliament early on Dec. 25 after a
3526
THE CHRONICLE
whole night spent in wrangling over minor items.
Six times in all the Chamber of Deputies sent back
the budget to the Senate with amendments, which
the Senators in turn rejected. The chief point of
difference was the matter of compensation to be
paid road makers by the State. Rather important
electoral interests were involved in this point, according to a Paris special of Dec. 25 to the New
York "Times." Not until Andre Tardieu and M.
Poincare made the question one of confidence did
the Government gain the consent of the upper house
to a compromise. A second point at issue was the
granting of a $4 indemnity to former prisoners of
war, a measure which would entail an expenditure of
5,000,000 francs this year. The Chamber of Deputies gave way on this matter on the request of the
Premier. After the differences were finally settled
and the budget adopted, M. Poincare read a decree
closing the two houses until Jan. 10. The result,
dispatches said, is that next year's budget starts the
new year in excellent shape. Estimated revenues
will be 42,496,616,000 francs, and expenditure 42,441,457,000 francs, leaving a balance of 55,159,000
francs.
General gratification was expressed in Italian financial and industrial circles during the past week
over the formal stabilization of the lira on a gold
basis, as announced by Governmental decree Dec.
21. Unusual activity was caused in the Rome stock
market by the action, all stocks and Government securities showing substantial increases over previous
quotations. A feeling of great confidence is prevalent, according to a Rome dispatch of Dec. 23 to the
New York "Times." "It is fully realized, however,"
the dispatch added, "that Italy is not yet out of the
woods and must direct every effort to the reorganization of industry to place it on solid ground. The
newspapers urge manufacturers and retailers not
to relax their efforts to reduce prices in order that
Italy may not only successfully face foreign competition but also reap the benefits of the ten years'
struggle and sacrifices for financial rehabilitation."
In further dispatches it was suggested that the announcement of stabilization brings two facts to the
attention of home and international markets. One
is the great care and ability which have been displayed by the Government to achieve monetary purposes of the most difficult and delicate sort. The
other is the discipline and comprehension of facts
which the Italian people have shown, with the result that notwithstanding their poverty, they have
exhibited a spirit of willingness to endure the incidental hardship of deflation, and of faith in the
country's future destiny, which augurs well for the
future.
A continuance of the relatively good business conditions in Germany in the immediate future was
confidently predicted by the Berlin Chamber of Industry and Commerce, in its annual report, issued
Dec. 28. The past year was characterized in the report as a year of considerable activity in industry
and commerce with, however, only moderate profit
returns. The Chamber's forecast for the coming
months, a Berlin dispatch of Dec. 28 to the New
York "Times" said, is that "there are no basic
grounds for regarding a descent from the height now
scaled as having begun or as being inevitable. In
their internal constitution, industry and commerce
•
[VoL. 125.
feel themselves healthy and freed cif the former
years' ailments and prepared for stalwart progress."
The report was described as strongly urging Governmental economy along the lines advocated by S.
Parker Gilbert, Agent-General of Reparations, as
"only at the end of this road there beckons to us the
much desired possibility of arriving at a tolerable
limitation of our war burdens and a solution of the
economic puzzle still inherent in the application of
the Dawes plan." The Chamber dissented, however,
from the Agent-General's proposals for diminishing
the flow of foreign capital to private German enterprise. The revision of the Dawes plan was declared
absolutely imperative.
Famine has appeared in Shantung and Chili
Provinces in China, where 9,000,000 people are reported to be starving, while whole counties are entirely depopulated. Sixty-five of 107 counties inShantung were said to be suffering, in a Peking dispatch
of Dec. 27 to the New York "Times." It was added
that conditions are certain to be appalling later in
the Winter. In a large part of the stricken area
crops were reported as less than 10% of normal,
while in the remainder they were estimated variously at from 10% to 40%. The bad crops were due to
drought and locusts, complicated with banditry,
civil war and extortionate taxes. Hundreds of thousands of Chinese are wandering aimlessly over the
country, "tearing down houses for fuel and eating
bark, roots and dried grass." Relief work by foreigners is said to be impossible in much of the stricken area owing to the banditry of the "Red Spears."
The usual relief method of paying for work on highways was regarded as unfeasible for this reason.
Nevertheless, the Peking chapter of the American
Red Cross has been appealed to for aid by the China
International Famine Relief Commission.
The Bank of France on Thursday reduced its
rate of discount from 5% to 4%. The 5% rate had
been in effect since April 14 1927 when it was marked
down from 53', the figure prevailing since Feb. 3
1927 to 5%. Elsewhere rates remain unchanged,
being 7% in Germany and Italy; 63/2% injAustria;
5% in Denmark, Norway, and Madrid; 43/2% in
London, Belgium and Holland; 4% in Sweden and
/
2% in Switzerland. In LondonlropenTmarket
31
discounts are now 4 5-16®4%% for both long and
short bills against 498% for short bills and 4 5-16®
4%% for long bills on Friday of last week. Money
on call in London yesterday was down to 2%%.
At Paris open market discounts remain at 3%, but
in Switzerland there has been an advance from
398% to 3 7-16%.
Another and much larger gain in gold holdings
was shown by the Bank of England in its statement
for the week ending Dec. 28, namely £2,027,644.
Note circulation was reduced £67,000, so that the
total increase in reserve in the banking department
was £2,094,000, but the proportion of the banks
reserve to liabilities declined to 24.14% from 25.84%
last week and 29.31% two weeks ago. At this
time a year ago the ratio stood at 21.04% and in
1925 at 113/
2%. Important changes occurred in
the deposit items. Public deposits declined
£3,883,000 at the same time that "other" deposits
expanded £21,073,000. The Bank's temporary loans
to the government increased £5,595,000 and loans
DEC. 31 1927.]
THE CHRONICLE
3527
FtEICHSBANK'S COMPARATIVE STATEMENT.
on other securities rose £9,494,000. Gold boldingA
Changes for
Dec. 23 1927. Dec. 23 1926. Dec. 23 1925.
Week.
now total £152,408,844 against £151,118,648 in Assets—
Reichstnarks. Reicksmarks. Retchsmarks.
Reichsmark*.
Dec. 174.000 1.860,557,000 1,805,850,000 1,207,960,000
Gold and bullion
1926 and £144,556,367 two years ago (1925). Re- Of
Unchanged
77.248.000 170,280,000
96,607,000
which depos.abed
in for'n curr_ _ _ _Dec. 6,794,000 279,445,000 471,974,000 401,811,000
serve aggregates £33,448,000 as compared with Res've
Bills of exch.& checks_Inc.146,394,000 2,416.850.000 1,412,749,000 1,620,385,000
48,510.000 112,150.000
63,927,000
and other coin_ _Dec. 6.340,000
£30,083,708 last year and £19,575,857 in 1925. Silver
16,407,000
12,538,000
28,153,000
Notes on oth. Ger.bks_Dec. 1,438.000
44,148,000
29.406.000
14,478,000
10,246,000
Advances
Dec.
Notes in circulation now stand at £138,711,000 in Investments
93,430,000
90,956,000 227,570,000
Unchanged
2,447,000 474.860,000 527.015.000 660,753,000
Dec.
Other
assets
comparison with £140,784,940 and £144,730,510 Liabilities—
Notes in ciruclation. Inc.114,913.000 4,046.354,000 3,298,113,000 2,623,437,000
in 1926 and 1925 respectively. The Bank's official 0th.
daily matur.oblig.Inc. 42,298.000 567,387,000 585,386,000 712.490,000
Dec.42,488.000 254,245,000 219,266,000 576,283,000
Other liabilities
furnish
Below
we
discount rate remains at 432%.
Money rates in the New York market were slightly
comparisons of the various items of the Bank 'of
higher in the past week than at any previous time
England's returns for five years.
of the year. Call funds opened at 5% Tuesday,
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
the holiday, but on the calling of approximately
after
1924.
1923.
1926.
1925.
1927.
Jan. 2
Dec.29.
Dec.30.
Dec. 31.
Dec. 28.
$40,000,000 in loans by the banks the rate advanced
On Wednesday, only
b138,711,000 140,784,940 144,730,510 128,295.915 127,520,765 later in the day to
Circulation
14,560,000 11,632,266 8.362,323 8,511,485 13,434,631
Public deposits
called. Nevertheless, the
Other deposits
123,975,000 131,342,517 160,681.969 165,779,092 150.193,259 $10,000,000 in loans was
Govern't securities_ 48,579,000 34,167.539 64,087,526 68,579,552 52.262.032 demand rate remained at the 532% figure for the
Other securities._ _ 74,448,000 96.658.843 103.280,596 103,600,354 108,966,150
Reserve notes & coin 33,448,000 30,083,708 19,575,857 20.014,087 20,287,237 remainder of the week, although outside business
Coln and bullion_ _•152,408,844 151,118,648 144,556,367 128.560,002 128,058,002
was again reported done at the customary /°7
14,o
Proportion of reserve
11%
12% concession. Little concern regarding the tightening
24.14%
21.04%
to liabilities
11%
5%
4%
4%
5%
Bank rate
4%
of rates was expressed as it was looked upon as
• Includes, beginning with April 29 1925, £27,000.000 gold coin and bullion
It was recalled that demand
previously held as security for currency notes issued and which was transferred to the purely seasonal.
Bank of England on the British Government's decision to return to the gold standard. funds were as high as 6% a year ago at this time.
b Beginning with the statement for April 29 1925 includes £27,000,000 of Bank
of England notes issued in return for the same amount of gold coin and bullion Slightly firmer conditions also prevailed in the time
held up to that time in redemption account of currency note issue.
money market. Interest and dividend payments
are said to be of record proportions at the end of
The Bank of France in its statement as of Dec. 28 this year, necessitating the anticipatory gathering
reported an expansion of 744,297,000 francs in of funds. The gold export movement was again
note circulation, raising the total of that item to followed with absorbing interest in the New York
56,550,607,335 francs as against 52,907,329,545 francs money market. Brokers' loans against stock and
in 1926 and 51,085,133,250 francs in 1925. Total bond collateral this week advanced to ever dizzier
gold holdings went up 3,000 francs; the amounts heights. The compilation of the Federal Reserve
held abroad remained unchanged. Advances to Bank for the 51 New York reporting member banks
State also remained unchanged at 24,550,000,000 showed an increase for the week of $73,291,000,
francs. Silver increased 3,000 francs, bills dis- this on top of an even larger advance last week.
counted 924,520,000 francs, general deposits 21,- The grand total of such loans is now about $930,245,000 francs and divers assets 757,515,000 francs, 000,000 higher than at this time one year ago.
Dealing in detail with the rates from day to day,
while trade advances fell off 44,732,000 francs and
treasury deposits 6,437,000 francs. Below we give the renewal rate for call loans on the Stock Exchange
a comparison of the various items for the past three on Tuesday (Christmas was celebrated on Monday)
years.
was 5%, but new loans commanded 532%. The
BANK OF FRANCE'S COMPARATIVE STATEMENT.
rest of the week all loans each day were at 5I2%
Changes
Statue as o
including renewals. Time loans showed very little
for Week.
Dec. 28 1927. Dec. 29 1926. Dec. 30 1925.
Gold Holdings—
Francs.
Francs.
Francs.
France.
change and the quotation yesterday was 4@438%
Inc.
In France
3,000 3,680,511,414 3,684,488,693 3,683,767,093
1% for 60 and 90 days and
Abroad—available
Unchanged
462,771,4781 1,864,320,907 1,864,320,907 for 30 days, 4N@4Y
Non-available_
Unchanged
1,401.549,420
43'i@4/% for four, five and six months. The
Total
3,000 5,544,832,317 5,548,809,600 5,548.088.000 commercial paper market has been dull, with the
Inc.
Inc.
3,000
Silver
342,951,703
340,724,101
321,207,317
Bills discounted__ _Inc. 924,520,000 2,320,728,550 4,437,327,790 3,202,738,412 quotation for four to six months' names of choice
Trade advances_ Dec. 44,732,000 1,691,997,199 2,082,788,247 2,517,507,397
character 4%. For names less well known the
Note circulation_ _Inc. 744,297,000 56,550,607,335 52,907,329,545 51,085,133,250
Treasury deposits_Dec. 6,437,000
25,910,542
14,370,885
11,903,822 quotation remains at 43,%. For New England
General deposits...Inc. 21,245,000 10,480,864,880 5,894.436.901 3,322.890,047
24,550.000,000 36,000,000,000 35,950,000,000 mill paper the range is still 4@,431%.
Advances to State.. Unchanged
Inc. 757,515,000 26,551,593,000
Divers assets
635,933,215 2,032,261,596
In the market for banks' and bankers' acceptances
the posted rate of the American Acceptance Council
The Bank of Germany in it's statement as of for call loans against acceptances has again remained
Dec. 23 shows an increase in note circulation of unchanged throughout the week at 33,%. Nor has
114,913,000 marks, raising the total of that item the Council made any change in the rates for accepto 4,046,354,000 marks as against 3,298,113,000 tances, the posted quotations on prime bankers'
marks and 2,623,437,000 marks in 1926 and 1925 acceptances eligible for purchase by the Federal
respectively. Other daily maturing obligations Reserve banks remaining at 31A% bid and 3% asked
moved up 42,298,000 marks while other liabilities for bills running 30 days; 33I% bid and 33A% asked
fell off 42,488,000 marks. Total gold and bullion for bills running 60 days; 33A% bid and 33.
1 % asked
holding,/ dropped 174,000 marks, the amount held for 90 days; 332% bid and 3N3% asked for 120 days,
abroad remaining unchanged. Reserve in foreign and 3%% bid and 3M% asked for 150 and 180 days.
currency fell 6,794,000 marks, silver and other Open market rates also remain unchanged as follows:
SPOT DELIVERY.
coin 6,340,000 marks, notes on other German banks
—180 Days— —150 Days— —120 Dail-Asked.
Bid.
Bid.
Asked.
1.438,000 marks, advances 14,478,000 marks and
Asked.
Bid.
354
354
Prime eligible Mils
334
334
354
334
other assets 2,447,000 marks. Bills of exchange
—90 Days— —60 Days— —30 Ding—
Asked.
Bid.
Bid.
Asked.
Asked.
Bid.
and checks expanded 146,394,000 marks while in- Prime eligible DM
334
3
334
334
3)
I
,
354
DELIVERY WITHIN THIRTY DAYS.
vestments remained unchanged. Below we give a Eligible memberFOR
11,4 bid
banks
834 WEI
comparison of the various items for three years pastf Eligible non-member banks
3528
THE CHRONICLE
There have been no changes this week in Federal
Reserve Bank rates. The following is the schedule
of rates now in effect for the various classes of paper
at the different Reserve banks:
DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
Federal Reserve Rant.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Rate in Effect
on Dec. 30.
3J.
3Si
3Si
3Si
33-i
3J.i
334
33.i
33.
314
3Si
3S4
Date
Established.
Aug.
Aug.
Sept.
Aug.
Aug. 1
Aug. 1
Sept.
Aug.
Sept.!
July 2
Aug. 1
Sept. 1
1927
1927
1927
1927
1927
1927
1927
1927
1927
1927
1927
1927
Previous
Rate.
4
4
4
4
4
4
4
4
4
4
4
4
Sterling exchange has been firm this week, with
only trifling variations in rates. Therrange for
the week has been 4.87 to 4.88 for bankers sight,
and from 4.88 5-16 to 4.88 7-16 for cable transfers.
The market, as in fact are all foreign exchange
markets, have been extremely quiet due to the holidays. Despite some fluctuation in rates and a few
scattered transactions of noticeable importance,
foreign exchange trading hasitherefore been almost
at a standstill this week. Banking circles are still
discussing the probability of furtherigold movements to London from New York and:from Montreal,
but nothing has developed this weekitolindicate a
continuance of the shipments recentlylbegun when
the export of $1,000,000 in gold by the International
Acceptance Bank and of $7,537,000 by the:National
City Bank created such a stir. On Thursday the
trading here became more activen4the late afternoon and this fact was taken to indicate the beginning of large year-end transfers:for:the adjustment
of balances which should come to a close to-day.
The recent gold shipments from this side, whether
to London, Berlin, Amsterdam, Paris or Rome, are
considered special transactions not in the:least based
upon strict foreign exchange considerations, nor
in any way related to the gold points as understood
prior to 1914. Certainly it wouldrseenii that the
question of interest charges on the gold transferred
has been entirely waived. As one authority states
the case, "The transactions afford yet another
example of the intricacies of the present gold standard
mechanism, under whose working gold movements
have lost their simplicity and arbitrage operations
of the kind with which we were familiar in pre-war
days have a very restricted scope. Under goldexchange standard regulations many central banks
are not obliged to buy actual gold at all; others may
prevent either an inflow or outflow of gold by the
adoption of special devices. We understand that
recently both the National Bank of Belgium and the
Netherlands Bank have discouraged the import of
gold. In these circumstances gold movements are
largely the product of central banking co-operation."
Considering this new central bank attitude toward
gold and gold exchange, London traders begin to feel
that more gold is likely to go over, whether or not
the sterling rate continues at present levels. Formerly
when gold began to move to London in volume,
bankers expected a reduction in the:Bank of England
rate. The best banking opinion, however, does not
concede the possibility of a lower Bank of England
rate at this time. It is taken for granted that a
concerted arrangement exists between the central
banks to insure an accumulation of gold by the Bank
of England, in order to safeguardithe approaching
[Pot,. 125.
amalgamation of the war-time currency notes (the
Bradburys) with the Bank of England issues. There
does not seem to be a very large accumulation of
money in London. The present short-term market
is supplied chiefly by foreign short-term deposits,
especially those of the Bank of France, which are not
considered a permanent superstructure for the money
market. A lowering of the London Bank rate would
almost certainly cause a withdrawal of these deposits,
making money scarce, so that a lower rediscount rate
would be completely nullified. Again, it must be
considered that the New York Federal Reserve Bank
rediscount rate, when next changed, will move, it is
thought, upward. Thus, the differential between
New York and London would be effaced, greatly to
the detriment of any plans which the Bank of England
might have for accumulating gold against the currency amalgamation.
The Bank of England in its return for the week
ended Wednesday night showed a further gain ingo id
holdings of £2,027,644. On Tuesday the Bank of
England bought £5,000 in gold bars and sold £43,000
in gold bars to an unstated designation. On Wednesday the Bank sold £41,000 in gold bars to an unstated
designation. On Thursday the Bank of England
bought £10,000 in gold bars. At the Port of New
York the gold movement for the week Dec. 22-28,
inclusive as reported by the Federal Reserve Bank,
consisted of imports of $103,000, chiefly from Latin
America. Exports totaled $14,503,000, of which $10,000,000 went to France and $4,000,000 to Holland.
This leaves some gold exports to be accounted for and
the lacking quantity was doubtless sent to the Far
East, Straits Settlements and the Dutch East Indies,
as the Farmers' Loan & Trust Co.reported a shipment
during the week of $450,000 to Batavia. Yesterday
the Seaboard National Bank arranged to ship $5,000,000 gold to Buenos Aires, Argentina, for account
of the Bunge North American Grain Corp. and the
American Exchange Irving Trust and the AngloSouth American Trust arranged shipments of $1,000,000 each to the same country, in addition to
which Louis Dreyfus & Co. also shipped $3,000,000
to Argentina. The Federal Reserve Bank reported
no gold movement to Canada. However, the New
York agency of the Bank of Montreal received $2,000,000 in gold from Montreal on Thursday and
$2,000,000 more on Friday, and the Canadian Bank
of Commerce $1,500,000. Total gold imports from
Canada in the past three weeks $8,500,000. Montreal
funds continued at a discount ranging from 5-32 of
1% in the early part of the week to 11-64 of 1% on
Wednesday. The gold import point from Canada is
ordinarily placed at 11-64 of 1% discount.
Referring to day-to-day rates sterling was steady
in a dull market last Saturday. Bankers sight was
4.87 13-16@4.88, cable transfers 4.88 5-16@4.88%.
On Monday there were no dealings owing to the
Christmas holiday. On Tuesday the market was
dull. Bankers sight ranged from 4.87 11-16 to
4.88, cable transfers from 4.88 5-16 to 4.889/
8. On
Wednesday dullness continued. The range was
4.87%@4.88 for bankers sight and 4.88 5-16@4.889/g
for cable transfers. On Thursday the holiday
character of the market continued, though there was
some evidence of demand in the late afternoon.
Bankers sight was 4.87 11-16@4.88 and cable
transfers 4.88 5-16@4.88 7-16. On Friday the
range was 4.87%@4.88 for bankers sight and
4.88 5-16@4.88% for cable transfers. Closing quo.
Mac. 31 1927.]
THE CHRONICLE
%
tations yesterday were 4.873
% for demand and 4.883
for cable transfers. Commercial sight bills finished
%,
%,60-day bills at 4.84, 90-day bills at 4.821
at 4.875
documents for payment (60 days) at 4.84, and sevenday grain bills at 4.87. Cotton and grain for payment closed at 4.875
%.
The Continental exchanges, like sterling, are
under the spell of the holidays, although there has
been no lack of interesting news pertaining at least
to the future of the leading Continentals. Interest
centers" around developments likely to arise from
the anchoring of the Italian lira to gold, which was
discussed here last week. Lire have been in active
demand this week, although the market as a whole
has been dull. The activity was due in slight
measure to immigrant holiday transmissions, but
as there were a number of larger transactions of a
financial character with some activity in demand
for lire in foreign centers, the reasonable presumption
is that there is a strong demand for Italian securities,
resulting from a restoration of confidence following
upon the acquisition of credits and the stabilization
of the currency.
French exchange is now a matter of uppermost
importance in foreign exchange circles. On Thursday announcement was made of an export of $10.000,000 in gold on the Rochambeau for the account
of the Bank of France. Paris dispatches state that
at least $20,000,000 more will be withdrawn from
New York by the Bank of France. The shipment
on Thursday was made by the Guaranty Trust
Company of New York. The gold was bought,
according to Paris dispatches, from dollar reserves
of the Bank of France, and it is asserted that gold
held earmarked for the Bank of France with the
Federal Reserve Bank has not been touched. This
is the more surprising since the statement of the
Bank of France for the week ended Dec. 29, shows
an increase in its Sundry Assets, which include its
foreign exchange holdings, of 757,500,000 francs.
The inference drawn from these operations of the
Bank of France by bankers here and abroad is that
the Government has decided upon a change in its
plans for the stabilization of the franc. The original
intention, as frequently intimated in official and
semi-official quarters in Paris, was to defer legal
stabilization until after the elections in May. Now,
however, with the success of the Italian plans for
stabilization, it seems to be considered impolitic
in Paris to delay longer a complete return to the
gold basis. Announcement of stabilization plans
by Government officials is expected ahhost daily.
It is generally believed that the Bank of France is in
a sufficiently strong position to maintain a stabilization program without recourse to foreign borrowing
or credits. The money market has become comfortable in Paris, as was reflected by a reduction
in the Bank of France rediscount rate from 5% to
4% on Wednesday.
German marks have been lower, the rate yesterday
for cable transfers dropping to 23.87. Still discussions with respect to reparations payments appear
to be without much influence on the mark situation.
Expectation of large borrowing, especially in the
New York market, continues to be a prominent
topic of discussion in banking circles. Resumption
of borrowing is almost certain to take place on a
large scale after the turn of the year. The current
statement of the Reichsbank shows a rise of 114,-
3529
913,000 marks in circulation, which must, however,
be entirely discounted because holiday demands
everywhere cause an increase in circulation figures.
The Reichsbank showed a loss of 174,000 marks in
gold coin and bullion and of 6,794,000 in foreign
currency reserves. A drop of 23/i points, on average,
took place in marks, guilders, Swiss francs and
Swedish korona in yesterday's trading. The entire
European active list, except Madrid went off slightly.
This weakness does not indicate a new trend. The
explanation is found in that Friday's session was the
last in which it was possible to effect payments in
Europe this year. Consequently rates moved irregularly, and in many there were wide spreads between prices on transactions for payment Tuesday.
A spot or cable transaction in exchange, means a
transaction in which payment is made abroad on the
business day following, in the case of sterling, and
two days afterwad for most other currencies. Consequently the cable rates on continental gold exchanges were for transactions payable Tuesday,
though many special trades were made for payment
Saturday, possibly for window-dressing purposes.
The London check rate on Paris closed at 124.02
on Friday of this week, against 124.02 on Friday of
last week. In New York sight bills on the French
centre finished at 3.9332, against 3.933/i a week ago;
3 against 3.9334, and comcable transfers at 3.93%,
mercial sight bills at 3.93%, against 3.93%. Antwerp
belgas finished at 13.99 for checks and at 13.993/2 for
cable transfers, as against 13.983/2 and 13.993/ on
Friday of last week. Final quotations for Berlin
marks were 23.87 for checks and 23.88 for cable
transfers, in comparison with 23.90 and 23.91 a week
earlier. Italian lire closed at 5.28 for bankers' sight
bills and at 5.2834 for cable transfers, as against
5.2734 and 5.273
% last week. Austrian schillings
have not been changed from 143/
8. Exchange on
Czechoslovakia finished at 2.9634, against 2.963/
8;
on Bucharest at 0.613
/
1, against 0.613/
2; on Poland at
11.15, against 11.15, and on Finland at 2.52, against
2.52. Greek exchange closed at 1.33 for checks and
at 1.3334 for cable transfers, against 1.33 and 1.3334
a week ago.
In the exchanges of the countries neutral during
the war, the outstanding feature of the week has
been the firmness of Holland guilders. Exchange
on Amsterdam made a new high for the year on
Thursday, when cable transfers sold at 40.47%,
though there was a reaction yesterday to 40.44.
This compares with a low for 1927 of 39.9334 cable
rates. The par of the guilder is 40.20. Under
the circumstances it is not surprising to note another
gold shipment of
,000,000 from New York to
Amsterdam. The metal was taken by the Netherlands Bank from the earmarked store with the New
York Federal Reserve Bank. This makes a total
of
,000,000 gold exported to Holland during
December. Incidentally, $1,064,000 in gold has
been shipped to Batavia, capital of the Dutch East
Indies, since early November. The prosperity of
the Dutch East Indies has had much to do with the
firmness which began in guilders around August.
The gold sent from New York to Holland had, however, hardly any relation to the higher guilder
quotations or to foreign exchange transactions, but
was rather a central bank matter such as referred
to above in the discussion of sterling. This may be
inferred from the fact that the shipment was made
3530
on a slow boat, interest on the value being apparently disregarded. It is even suggested that the
gold may be intended for Poland, a central bank
operation. In connection with Swiss francs, it is
an interesting fact that the Swiss Bank Corporation
in its latest monthly bulletin recommends the formal
adoption by Switzerland of a gold exchange standard.
Swiss francs have been around parity for so long
that the nation is considered to be on a gold basis,
especially as capital is freely exported and gold may
be coined in unlimited quantities. Notes of the
Swiss National Bank have been inconvertible since
1914, although recently the inconvertibility has been
mainly nominal. The Swiss Bank Corporation
points out, however, that Switzerland is still tied
up to "limping bi-metallism," a relic of the defunct
Latin monetary unit. Gold and silver five-franc
pieces are legal tender to any amount. Coinage
of the former is not restricted, but the coinage of
the silver is limited to 80,000,000 francs. The
Swiss Bank Corporation suggests the abolition of
inconvertibility to gold and the reduction of the
five-franc pieces to divisional coinage. It would
not be surprising to bankers were the Swiss to anchor
unqualifiedly to gold within a short time. The
reason for the weakness which developed on Friday
in guilders, krona and Swiss francs has been explained
above, following comments on German mark exchange. Spanish pesetas proved an exception,
moving up toward the close, 19 points to 16.94
for cable transfers. Ambassador Hammond's prediction of a gold standard for Spain had been cabled
to Europe on the strength of this foreign market,
particularly Amsterdam, bid pesetas up so that they
closed 18 points stronger than on Friday of last
week.
Bankers' sight on Amsterdam finished on Friday
at 40.43, against 40.42 on Friday of last week; cable
transfers at 40.45, against 40.44, and commercial
sight bills at 40.38, against 40.38. Swiss francs
closed at 19.32 for bankers' sight bills and at 19.323
for cable transfers, in comparison with 19.333/i and
1934 a week earlier. Copenhagen checks finished at
26.82 and cable transfers at 26.83, against 26.82
and 26.83. Checks on Sweden closed at 26.99 and
cable transfers at 27.00, against 27.02 and 27.03,
while checks on Norway finished at 26.62 and cable
transfers at 26.63, against 26.62 and 26.63. Spanish
pesetas closed at 16.93 for checks and at 16.94 for
cable transfers, which compares with 16.75 and
16.76 a week earlier.
The South American exchanges are dull though
firm. The firmness of course is due to the exceptional
export season which the Latin American countries
have had and to the improvement in the monetary
status of Argentina, Brazil, and Peru brought about
within recent weeks. Ever since last May when
Argentina began to demonstrate its ability to attract
gold, the affairs of this prosperous country have
commanded world-wide attention. The currency of
the country is now considered sound, credit is good,
and trade has reached record levels. This improvement has taken place without rising prices and with
scarcely a beginning made of innumerable development measures. It is stated in authoritative quarters
that production during the first.half of 1927 almost
doubled the average for the previous decade. The
sentiment of the country is predominantly optimistic
regarding the business outlook, as the weather during
[vol.. 125.
THE CHRONICLE
the growing season was most propitious for crops and
pastures. The favorable trade balance for the first
ten months was 161,435,000 gold pesos, against an
unfavorable balance in 1926 of 12.719,000 gold pesos.
Buenos Aires customs revenues up to nearly the end
of November were 288,000,000 pesos, or 5.2% above
similar figures for last year. As noted above $10,000,000 more gold is being shipped to Argentina,
making the grand total from New York to Buenos
Aires, $32,000,000 in December. Argentine paper
pesos closed yesterday at 42.75 for checks, as compared with 42.75 last week,. and at 42.80 for cable
transfers, against 42.80. Brazilian milreis finished at
12.01 for checks and at 12.02 for cable transfers,
against 12.01 and 12.02. Chilean exchange closed at
12.22 for checks and at 12.23 for cable transfers,
against 12.24 and 12.25, and Peru at 3.92 for checks
and at 3.93 for cable transfers, against 3.92 and 3.93.
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
DEC.24 1927 TO DEC.30 1927. INCLUSIVE.
Country and Monetary
Unit
Noon Buying Rate for Cable Transfers to New York,
Value In (Jutted States Dollars.
Dec. 24. Dec. 26. Dec. 27. Dec. 28. Dec. 29. Dec. 30.
EUROPEAustria,@chilling
Belgium, belga
Bulgaria. lev
Czechoslovakia. kron
Denmark. krone
England. pound sterling
Finland, markka
France,franc
Germany. reichsmark.
Greece, drachma
Holland, guilder
Hungary, pengo
Italy, lira
Norway, krone
Poland. zloty
Portugal, escudo
Rumania,leu
Spain, peseta
Sweden,krona
Switeeriand. tranc_
Yugoslavia. dinar....
ASIAChinaChetoo tael
Hankow tool
Shanghai tael
Tientsin tael
Hong Kong dollar._
Mexican dollar_ _ _ Tientsin or Pely
dollar
Yuan dollar
India. rupee
Japan, yen
BIngapore(S.S.)dollarNORTH AMEIL
Canada. dollar
Cuba. peso
.,_
Mexico, peso
Newfoundland, dollar.
SOUTH AMER.Argentina, peso (gold)
Brasil. milreJs
Chile. peso
2
14098
1399
007259
029632
2682
8830
025192
0394
.2390
013313
4044
1748
0527
2682
1125
0496
006205
1671
2702
.1933
.017628
8
$
.14089
.1399
.007241
.029833
.2682
8
2
2
.14107
.14117
.14095
.1399
.1399
.1399
.007258 .007250 .007265
.029630 .029633 .029630
.2682
.2682
.2882
8830
4.8832
.025198 .025185
.0394
.0394
.2390
.2391
.013313 .013310
.4046
.4045
.1748
.1748
.0527
.0527
.2662
.2662
.1127
.1125
.0496
.0494
.008197 .006178
.1668
.1672
.2702
.2702
.1934
HOLI- .1933
DAY. .017627 .017823
4.8837
.025192
.0394
.2390
.013318
.4047
.1748
.0528
.2663
.1124
.0496
.006182
.1675
.2703
.1934
.017832
4.8831
.025191
.0394
.2387
.013319
.4044
.1748
.0528
.2662
.1121
.0495
.006183
.1692
.2701
.1932
.017626
6629
6525
6364
.6683
.5041
.4573
.6629
.6521
.6361
.6883
.5039
.4583
.6638
.6525
.6373
.6692
.5039
.4590
.6683
.6563
.6404
.6754
.6062
.4603
.6627
.6515
.6388
.6681
.5046
.4578
4533
4500
3675
4639
.5688
.4550
.4517
.3676
.4650
.5696
.4550
.4517
.3676
.4655
.5696
.4567
.4533
.3676
.4660
.5692
.4546
.4513
.3678
.4871
.5692
.998474
.999031
485333
.996063
.998419 .998242
.999031 .999031
.485667 .486000
.995820 .995813
.9724
.1201
1222
.9723
.1201
.1222
.9725
1202
.1222
1 11202
I A%RII
.998295 .998277
.999(131 .999031
.485687 .486000
.995742 .995844
.9728
.1201
.1221
1 max
.9726
.1201
.1221
1 min
The Far Eastern exchanges owing to the quiet
trading in most of the financial centers of the world
this week have been exceptionally dull. The quotations, however, though largely nominal, were firm
and compared favorably with those of the past few
weeks. From foreign exchange point of view nothing
of interest'seems to have transpired. The price of
silver is favorable to the Chinese units and the
Japanese banking and business affairs are slowly
but steadily mending. The Indian rupee is firm,
largely owing to the heavy demand for money in
India, as noticed during the past few weeks, for
moving crops from the interior to the ports. The
Indian demand for money this season arose about
two weeks earlier than usual and hence the increase
in the rediscount rate of the Imperial Bank of India
to 7%, noted here last week, in contrast with a year,
when the increase to 7% did not take effect until
January. The demand for money at the Indian
centres is closely related to the price of cotton and
cotton goods. If these prices are well maintained,
foreign exchange circles look for a further increase
in the Bank of India rediscount rate. Closing
quotations for yen checks yesterday were 46.70@
DEC. 31 1927.]
THE CHRONICLE
46%, against 46/@463/ on Friday of last week;
Hong Kong closed at 50@,50 13-16, against
50@150 9-16; Sanghai at 63%@63 13-16, against
63%@63%; Manila at 49 9-16, against 49 9-16;
Singapore at 571
/
1@573/
2, against 57/@573/2; Bombay at 37, against 36 15-16, and Calcutta at 37,
against 36 15-16.
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
on the Clearing House institutions. The Federal
Reserve Bank of New York was creditor at the Clearing House each day as follows:
DAILY CREDIT BALANCES OF NEW YORK FEDERAL RESERVE BANK
AT CLEARING HOUSE.
Saturday. Monday.
Dec. 24. Dec. 26.
99.000.000 Holiday.
Tuesday. Wednesd'h. Thursday
Dec. 27. Dec. 28. Dec. 29.
Friday.
Dec. 30.
$
$
109.000.000 104 000.000 100.000.0001 107.000,000
Aggregate
for Week.
Cr. 519.00000
Note.—The forego!' g heavy credits reflec the huge mass of checks which come
to the New York Reserve Bank from all parts of the country in the operation of
the Federal Reserve System's par collection scheme. These large credit balances,
however, reflect only a part of the Reserve Bank's operations with the Clearing
House institutions, as only the items payable In New York City are represented in
she daily balances. The large volume of checks on institutions located outside of
New Yolk are not accounted for in arriving at these balances, as such cheeks do
not pass through the Clearing House but are deposited with the Federal Reserve
Bank for collection for the account of the local Clearing House banks.
The following table indicates the amount of bullion in the principal European banks:
December 28 1927.
December 30 1926.
Banks of—,
Gold,
Sheer.
Total.
Gold.
Myer.
Total.
g
England—.152.408.849
151,118.648
152.408,849 151,118,648
France a_ _ 146,220,344 13.718.023159,938.467 147,379,54 13.600.000 160,979,548
Germany b 89,182,850 c994,600 90377.450 81,460,000
994,600 82,454,600
Spain-____ 104,132.000 27,480.000 131.612.000 102,268.000 27,099,000129.367.000
46.946,000 3,776.000 50,722,000 45.597,000 4,159,000 49,756.000
Italy
Nether'lds- 32,506.000 2.339.000 34.845.000 34,460.000
,
Nat. Bois. 20,410,000 1,242.000 21.652,000 17,722.000 1,073,000 18,795.000
Sivitzerrd. 18,851,000 2,530,000 21.381.000 18,143,000 2.997,000 21,140.000
12,798,000 12,497.000
12,497,000
Sweden_ _ _ 12,798,000
Denmark— 10,114,000
647,000 10.761,000 11,612,000
886,000 12398,000
8,180.000 8.180,000
Norway-__ 8,186.000
8.180.000
Total week641,749,143 52,726.623694.475,766680,437,196 53,135,600 3,572,796
Prey.week 638.695,679 52,572,503691.268,182 629,179.763 53,045.600682,225.363
a Gold holdings of the Bank of France are exc usive of gold held abrcad,amounting
the present year to £74,572,866. b Gold holdings of the Bank of Germany are
exclusive of gold held abroad, the amount of which the present year is £3,862.400.
C As of_Oet. 7 1924.
The Decline of Democratic Government
in Europe.
In a dispatch bearing date of Christmas Day the
Paris correspondent of the New York "Times," Edwin L. James, called attention to the decline of
democratic government in Europe, and the increase
in the number of States whose Governments are
openly or virtually dictatorships. Conceding the difficulty of making an altogether satisfactory distinction between States in which the principle of popular representative government is still, in the main,
adhered to, and those in which it has been, in form
or fact, overborne, Mr. James nevertheless pointed
out that approximately three-fifths of the 500,000,000 people of Europe are living to-day under governmental systems which deny to them effective personal or political liberty, and are ruled by Governments which they have had no free part in choosing.
Somewhat less than half of this unfree total is contributed by Russia, with a population of about 130,000,000, but the list includes also Spain, Portugal,
Italy, Albania, Greece, Turkey, Bulgaria, Jugoslavia, Rumania, Hungary, Poland and Lithuania.
In the remaining countries, embracing Great Bri-
3531
tain, France, Germany, Austria, the Scandinavian
countries, Switzerland, The Netherlands, Belgium,
Ireland, Czechoslovakia, Esthonia, Finland and
Latvia, popular government is still, in Mr. James's
phrase, "in style."
An examination of these two lists will afford some
comfort to those who are inclined to insist that popular representative government is primarily a matter of race and geography. Broadly speaking, the
European States in which democratic political institutions still survive with more or less vitality are
those whose peoples are of Germanic origin, while
the States in which dictatorships flourish are those
of Latin or Slavic strain. There are important exceptions, of course. France, for example, although
a Latin country par excellence, maintains the tradition of popular government quite as vigorously as
does Great Britain; Ireland, with a predominantly
Celtic population, has popular government in practice, as has Belgium with its mixture of Latin and
Germanic elements; while Switzerland, a triple
mixture of French, Italian and German nationalities, is one of the most democratic countries in the
world. Two small Slav States, Esthonia and Latvia, are also to be counted in the democratic group.
Not everyone will agree that Czechoslovakia, with
its variegated population of Germans and Slays,
has in fact a more popular government than Rumania, but it at least preserves more of the outward
forms of democratic methods. Elsewhere among the
Latin and Slav States dictatorship prevails, as it
does in Turkey, with an Asiatic rather than a European population, and in Russia, whose vast population, counting the whole area of the Soviet Union,is
far more Asiatic than Slay. To put the matter in
another way, southern and southeastern Europe,
with the exception of France and Switzerland, have
yielded to dictatorships, while in central and northern Europe the people, in form at least, still govern
themselves.
Mr. James is not, of course, the first to call attention to this political phenomenon. The trend to
dictatorship, indeed,is one of the most striking characteristics of recent political development in Europe. Nine years after the close of the war which
was to make the world safe for democracy, some
three-fifths of the people of Europe are still without
democratic government in practice. Not in every
case, to be sure, does the existing situation represent a loss of something which was formerly possessed. There was no popular government in the
old Turkey under the Sultan, nor in the old Russia
under the Tsar. The member States of the old
Austro-Hungarian Empire enjoyed little of the political freedom and self-rule which, in Great Britain
and France, are inseparable from the conception of
popular government. Yet it is a matter of profound
significance that so many of the combatant States
that survived the war, together with more than half
of the States that were created or given independence in consequence of the war, should have fallen
rapidly under dictatorial rule. What is more, the
change has been widely accepted as inevitable, if
not, indeed, a positive gain. The last of the German
Emperors, at the height of his power, never enjoyed
or exercised the undisputed arbitrary authority
which Mussolini has long wielded in Italy, yet many
of those who have been loudest in their denunciations of the old Imperial system in Germany have
hailed Italian fascism as a national good, and ac-
3532
THE CHRONICLE
[Vol,. 125.
claimed Mussolini as one of the greatest statesmen tion about the reality of these gains, and to those
whose chief test of the intrinsic merit of a Governof all time.
The reason for this change of attitude toward pop- ment is its ability to improve the material welfare
ular government is not far to seek. The widespread of the people, the obvious fact of better order and imsocial disruption which followed from the war led, proved economic conditions Will probably go far to
almost everywhere in Europe, to a demand for sta- convince them that the end has justified the means.
It would be a serious mistake, however, to look
bility. The war wrecked the old social order, and
for the moment the outlook was chaotic. The parlia- only at the surface. In the transition period through
mentary system, in those countries particularly in which Europe has passed and is still passing, it may
which it had been least developed, and in others to very well be that the pressing problems of national
which its benefits were now offered freely for the reconstruction and development have been, in cerfirst time, seemed to many to lend itself far less tain States, best dealt with by dictatorial methods.
to the restoration of good order and the reconstruc- Parliamentary government, with all its virtues, is
tion of economic life than to the perpetuation of never at its best in times of crisis, and the political
the personal, partisan, racial and religious rivalries freedom which is the life of a democracy may easily
which the war had emphasized, and of which the become an obstacle or a menace when prompt or
peace negotiators too often took little or only mis- energetic action is required. Yet if a dictatorship is
taken account. Europe was to learn once more that ever to be justified at all, it must be because of its
men who had been useful in war were not equally success in meeting a national emergency, and not
useful for peace, that personal or party quarrels as a permanent system of good rule. Unless there
were an incitement to perennial disorder, and that is developed in the individual citizen a sense of perunstable government meant lagging industrial re- sonal responsibility for government, and unless the
covery, hesitating and backward trade, disastrous voice of the citizen can be freely raised in the selecunemployment, and widespread unrest in the ranks tion of rulers and the framing of laws, political inof both labor and capital. The only hope of national terest will wane, public concern for public welfare
salvation, in more than one country, appeared to be will die, and the people will become mere pawns
in the emergence of a strong man capable of gov- which a self-constituted dictator may move as he
erning, and once the strong man had shown himself pleases. It is this danger which the 300,000,000
and order began to rise out of chaos, there was less people in the unfree States of Europe face. If the
and less disposition to quarrel with the dictator, or period of arbitrary government through which they
to challenge the methods by which his reforms were are passing is accepted as one of transition, a bridge
by which they may pass safely from social disrupbrought about.
So it is that today, throughout southern and tion to social stability, the gains that accrue in the
southeastern Europe, popular government is in process will redound to their advantage, and the
eclipse and dictatorship generally prevails. A dic- State will come out stronger for the hard experience.
Means are not ends, however, and enforced contator rules in Spain, with the King a figurehead
and the National Assembly a rubber stamp. The formity to the will of another is far removed from
only authority that can keep order in Portugal ap- personal liberty. After all that can be said for
pears to be the army, and every few weeks brings dictators and their ways has been said, it must still
its new tale of conspiracy or threatened revolution be insisted that the end to be hoped for is the restorwhich only a dictator can hold in check. Freedom ation and extension of popular government, with its
of thought, of speech, and of political action has freedom of speech and of the press, its respect for
disappeared from Italy, and the will of Mussolini individual opinion and sincere dissent, its unhampis the supreme law. Every one of the Balkan States ered participation of the citizen in elections and
is governed by an autocracy, and in Poland, Pil- party activities, and its reliance upon just laws
sudski summons and dismisses Parliament at his which the representatives of the people have framed.
pleasure, crushes political opposition with a heavy There is small ground for thinking that any politihand, and tolerates no dissent from his own plans. cal dictator who now holds sway in Europe really
The warmest friends of Russia no longer pretend desires any of these things, but it is precisely for
that the Soviet Government is anything else than that reason that we may with some confidence look
a well-intrenched oligarchy to whose decisions the forward to the time when the nations that are now
people must conform, and the new Turkey, although under the yoke of arbitrary rule, perceiving that the
graced with a Parliament, appears to be completely day of transition has passed, will resume the selfunder the control of Kemal. It is not safe, in any government which for the time being they have surof these countries, to speak one's mind, if by any rendered, or of which they have been forcibly dischance the mind happens to differ from that of the possessed, and take into their own hands the control
of their destiny.
chief of the State.
What reconciles the peoples to the loss of political
The First Day of the New Year.
freedom is the fact that the establishment of a dicThe holiday of "New Year's Day" has often
tatorship has been followed, in most instances, by
substantial material gains. Italy, of course, is the seemed to us an anomaly. Why couple good resooutstanding example, but elsewhere than in Italy, lutions with a day when we are so apt to break
with only such exceptions or variations as are to be them? Why not celebrate on the last day of the
expected from States of different degrees of advance- old year? Then turn over the new leaf and write
ment, the period of actual or virtual dictatorship has something really important on it? Yet, we admit,
witnessed recovery and improvement in industry our idea is somewhat incongruous. Not that we
and agriculture, expansion of trade, progress in the would banish pleasure from the calendar of the New
stabilization of currency and the adjustment of na- Year. We are not recording a grouch. Only, it
tional debts,'educational reforms, and a lessening seems more appropriate to work than to play, if we
of the burden of unemployment. There is no ques- want to start the year right. On the other hand, a
DEC. 31 1927.]
THE CHRONICLE
3533
day of rest and relaxation after three hundred and above the need and desire of accumulation, does he
sixty-five days of arduous struggle and toil, that, in rest and play, conscious now that time and toil,
itself, seems highly desirable. True, we have had save for the orderly needs of life, bring only aggraother holidays, and they are growing in number, so vation and emptiness? One of the reasonable things
that we might devote the first day of the new year of the opening year is to conquer it by forgetting it
to reflection withont destroying its meaning and is the measure of true living.
Yet it is a golden vessel to fill with good deeds.
purpose as a period of celebration as well as helpfulness. Be that as it may, the custom is estab- It is a time for joy and work and rest. It is a narrow plot of ground in which to plant the seeds of imlished, and we are not asking that it be changed.
After all, the calendar of days, months and years mortality —for only that endures which is worthy
is nothing in the perpetual sweep of time. There is of the divine purpose. Rather a common phrase it
much talk, and not without some good reasons, of is to say "I have all the time there is!" And it is
making a new division of the year so that all months literally true. Time, though, has a measurement in
shall have four weeks, but we are willing to leave the way we employ it, and in the way we shape and
that sort of agitation to those who are interested. interpret that employment. Thus, business occuThe important thing is to make the month or the pation turns into well-doing for self and others;
year better and more profitable, in a broad way, wealth and accumulation, the incidentals thereof.
than the last one. We are all too much given to Government becomes a shield under which liberty
recording time rather than thoughts, deeds and feel- functions and individualism finds protection, rather
ings. If we could banish time, perhaps we might than a machine for the satisfying of petitions for
allay some of the rush of life. And as the new year help and the gratification of sectionalism. Society
dawns, we may philosophize a little on the subject foregoes the power of organized sentiment, striving
without being too prosy and dull. Closing the shop to impress its doctrines, fashions and fads on others,
and store merely to count our material gains, though and attains to a natural co-operative force of many
it may be necessary, is the least value attached to working as one to set free the initiative and enterthe first day of the new year. Nor are our good prise in each.
So may the years pass—as a river flowing to the
resolutions, ,though a wholesome practice, the best
that we can extract from our opportunity. Every sea and "watering parched lands" on the way! And
day is a priceless gift, fresh from the Hand of the with each recurring day a new year begins. If we
Great Giver, not to be wasted or frivoled away, but celebrate one marked down on the calendar, shall
to be filled with good-will, love, kindliness, dignity we not fulfill the motive and meaning of each as it
appears? Not by resolutions, though these are worand devout thankfulness!
In this little pause, therefore, in the flow of time, thy, but by constant trial, that all days may be burif we think on these things, we may in a small way, nished and bright. Joy, contentment, work, aspiand for ourselves alone, settle some of the problems ration, faith in the processes of life, these have all
that are agitating human kind and rousing that tu- seasons for their showing. Duty is but appreciation
mult in living which many are now pointing to as and fulfillment of the purpose of life—as each may
the beginning of the end. One thing that suggests see it and as all may interpret it. For out of the
itself to each of us is are we not more responsible for commingling of thought and effort, out of the conour own past in the struggle than for that of others? tributions of each to the social, political and ecoWe are not unmindful of the question: "Am I my nomic welfare, comes that unity in which all are
brother's keeper?" But before we can answer it bound and each is free. The chains of bigotry and
we must account for our own responsibility to self. the manacles of intolerance are broken when each
Our first duty is to make ourselves worthy of the respects the ordered life of his fellowman, though he
(rift of life. And if each of us will do as well as he measures out his own in his own way. And each
knows how, the reformers would have far less to new year shortens or lengthens as our liberal lives
meddle with. Civilization would be in no imminent touch the liberal lives around us.
What humanity needs—does not the contempladanger of perishing. We would not tremble in tear
of a business depression. We would not want to tive eye so envision progress and prosperity?—is a
possess all that scientific invention and human en- realization that it is better to make haste slowly
ergy spreads before us, and to possess it now in this than to make waste rapidly. Are we, in our insanew year or even in this one lifetime. What we tiate desire to possess all things now, destroying
should consider more than we do is that eternity is more than we produce of material things? As we
give our greeting to the new year, shall we not revinfinite and contains other lives than this.
Reason assures us that creation did not come by erence the old year that has served us so well accordchance, that there is a purpose in life, that there can ing to our deserts? Must we utterly forsake the
be no satisfaction for those endowed with conscious past for the future? Shall we cringe before the
existence without fulfillment, find that - aspiration, charge of being a reactionary, when all our ancestors
faith and love are not stopped by the door of a and achievements, on which we build, belong to the
tomb. Why then hurry to have and to hold all the buried years without which we ourselves would persecrets of nature, all the achievements of man, all the ish? If we welcome the coming shall we not speed
resources of earth, in the space of a single lifetime? the parting guest to that immortality which lies
Why haste to make the new year more successful forever out of time and out of space? Not in the
than the old? Why try to prove by logic and ex- material, but in the spiritual content of life, is its
periment and statistics, as we are doing now, that true measurement. Every new year vouchsafed to
"prosperity" will not decline and that happiness is every man, when filled with truth and trust, with
the end of living. An old man who made hundreds love and joy, with friendship and kindness, becomes
of millions has a fad in his last years for giving a golden age, immeasurable in its immortality, and
away newly minted dimes. Is he impressed with the divinely blessed in its being—never to pass away in
futility of money as the shadows lengthen? He is its influence on those who are to come!
3534
THE CHRONICLE
[VoL. 125.
tionalism fell to pieces before the new and all-emGenius and Character
bracing nationalism. In time the German authoriIn forecasting events today men are even more ties made use of him as the means of sowing disimportant than conditions. Therefore the book re- ruption in Russia, and he saw his chance to carry
cently brought out by Harcourt, Brace & Co., Genius forward his plans. Transported to Russia, his opand Character, by Emil Ludwig, the author of the portunity soon came, and for five years he was in
new Life of Napoleon, is of interest. It contains power as the dictator of Russia's policies. Step by
a series of brief and penetrating descriptions of out- step he carried his domination through the continustanding men who were such not because of what ing perils of the war, and inaugurated the great inthey accomplished or the times in which they lived, ternal changes which were to follow. He destroyed
but because of what they were in themselves—their the aristocracy of both place and capital, disposgenius and character, exactly as the title indicates. sessed the petty bourgeoisie, giving the land to the
It is so to be taken up; and as that it is wholly un- peasantry, and then, when discovering the need of
usual and highly instructive. A glance at several greater economic resources, readjusted his policies
of them will suffice to show their relation to the that he might obtain them, and while demanding
world of to-day.
"unconditional subjection to one will," suceeded in
That of Rathenau,for example, is little more than retaining his hold of power and the mind of the peoa sketch, but is like an etching by Rembrandt. A ple.
man embodying the will-to-power, standing always
Seeking nothing for himself, living always in the
entirely alone, without the least trace of simplicity, barest simplicity, utterly tireless in his absorption
but representing assured mastery of modern effi- in his task, he was shot by a woman, a fanatic like
ciency with all its complications. A German politi- himself, and after a year of suffering and confinecally but not radically, as ready always to act as ment to his bed, he died. As an idealist guided by a
to think, with an all-embracing interest coupled with consistent purpose, supported by intelligence and
a knowledge that was as exact as it was extensive, courage, he has shaped the lives of millions and pronever overlooking difficulties or unmindful of his jected Russia into the new world. It will be seen
own limitations, with full confidence in his powers that the author does not probe deeply but accepts
in every direction that might attract him, from con- the superficial estimates of the man.
structing machines, transforming factories, negoLike Rathenau and Lenin, Rhodes is a man standtiating treaties, to judging art, writing verse, play- ing alone, but beyond them he represents the power
ing sonatas, accomplishing all, yet content with of a definitely national character. An Englishman
none, we find him "yearning for warmth, and soul seeking health in South Africa, he devoted himself
and salvation," preaching of the dangers of the utili- and his great native ability to lifting South Africa
tarian and the annihilation of the soul through prop- into having an integral part in the expanding Briterty. Conscious that he is admired but not loved, ish Empire of which he now saw the possibilities
he "projects the image of his own destiny upon his and its importance in the opening world. For twencountry, receiving back from the epoch and its short- ty years before its birth he talked and worked for
comings that which was native to himself." In the Union of South Africa. It was not achieved
spite of his efficiency and what it brought him, he until eight years after his death, but it is his monuleft little but that to the world and was suddenly ment no less than is the lonely tomb on the summit
cut off by the assassin with his heart still empty and of the mighty rocks of the Matappos in Rhodesia.
not knowing peace. His story is of the scope and Night and day he ch6rished his dream; in England
the limitations of great economic efficiency.
and in Africa he talked and toiled for it, laying
Lenin's story, on the other hand, is of the power broad and deep foundations in the education of the
of ideas, especially when they are adjusted to chang- coming generations no less than in developing native
ing conditions. His career is well known, his char- resources; and today the projects on the Zambesi
acter perhaps less so. At a critical hour in the and the nearly completed Cape-to-Cairo railway are
midst of the war he is an exile in Switzerland, past steps in the accomplishing of his purposes. A great
middle life, confirmed by many and bitter experi- and united dominion and an opening continent bear
ences in his convictions and purposes, a fanatic, vig- witness to what the spirit and the institutions of a
orous, smiling, confident and totally fearless, driven great race can accomplish for the world when they
by a single passion, the idea of his mission. He has are embodied in the career of a great son.
been an indefatigable student both of himself and
The only other picture to which we can refer is
of the age, never for a moment carried away by en- that of Leonardo da Vinci, and he may well stand
thusiasm, like a physician seeking an accurate diag- for all. Man's greatest gifts seem to have been given
nosis and ready always for a needful vivisection. him beyond any. That all the conceivable wealth
He was always open to a desirable compromise, and of genius in multitudinous form should be bestowed
with all his strength of conviction, known to his in the 15th century upon a child without ancestry,
friends as "a genius at opportunism." So writes born of a peasant in the hills of Tuscany, should
this author.
suffice to show that gifts may come to men in days
As a youth he was drawn into a conspiracy to come, adequate to meet the needs of the race.
against the State and then against existing society. The list of the doings of the self-taught man who at
Thirty years of exile followed, filled with strength- thirty years of age began teaching himself Latin and
ened convictions and intensified antagonisms. Eu- mathematics, is far too long and varied to do more
rope was fast making history; if Russia was not, it than suggest.
was his opportunitk when he was permitted to reNature'was to him an open book. Before Coperturn. He soon got into action. Sharp controversy nicus he saw that the sun does not move, and the
arose, then a strike and rioting, followed by flight "earth is a star like the moon." Before Galileo, he
for him, and exile. Nine years later the war brought discovered the law of virtual velocity; and long
disillusionment to him and opportunity. Interna- before Newton, the law of the accelerated motion
DEC. 31 19271
THE elliZONICLE
of falling bodiei. He was the first to record the
principles of Archimedes' discovery of the lever,
He read at sight the record of the rocks as to earth
formation and fossils, and founded the sciences of
paleontology and of hydraulics, and of the transmission of sound and light. He inaugurated anatomy
and explained the structure of the eye and the functions of its parts. He scorned the professions of alchemy as he did miracles and magic, the music of
the spheres and the perpetuum mobile. He met
every demand for an invention; he canalized the
Ticino; planned transforming Florence into an ideal
city; tried steam in cannon and as a means of propulsion; made powder, and machines for sawing,
spinning, shearing, washing, and pottery making,
artesian wells, scales, the concave mirror and the
pendulum. Goethe, 300 years afterwards, said:"He
perceived and apprehended nature immediately;
thinking of the phenomenon itself and penetrating
it, he always found the truth." Leonardo said of
himself,"I am discovering for mankind the first and
perhaps the second reason of their existence."
He designed hydroplanes, the parachute, diving
bells, and the submarine, and desisted from describing means for remaining under water, lest evil men
should destroy their enemies on the bottom of the
sea by boring through the hulls of Orips. As an old
man when arrayed over against Michael Angelo as
a painter, he painted on the wall of the Council Hall
in Florence, "The Battle of the Standard," of which
Cellini said it was to be prized as "the school of the
entire world." The few paintings and statues of his
that remain are held as priceless.
With these men in mind, standing severally for
the mastery that lies in modern efficiency; the worth
of ideas clearly apprehended and adapted to meet
changing conditions; the power of a constructive
and unselfish patriotism; and of Science when it
represents the genius and the attainments of the
man or men whom God may place on earth to read
the secrets of the universe, not only that men may
solve the problems of their daily life, but, as Leonardo said,"that thus their thoughts may rise to the
contemplation of the divine;" we may face the problems and tasks even of a new era, and more particularly those of our individual lives with confidence
and courage."
Changes in Condition of Federal Reserve
Banks During 1927.
The weekly return of the Federal Reserve banks,
issued Thursday night, contains a review of the
operations of the Federal Reserve institutions for
the calendar year 1927, and we print it in full below,
as follows:
The principal changes in the condition of the Federal
Reserve banks between the end of 1926 and 1927,as measured
by averages for the month of December of each year, comprise an increase of $170,000,000 in member bank reserve
deposits, reflecting the substantial growth in deposits of
member banks; an increase of $280,000,000 in Government
security holdings, partly offset by a decline of $140.000,000
in holdings of discounted bills; and a decline of $60,000,000
in Federal Reserve note circulation. The peak of total bill
and security holdings, $1,640,000,000 on Dec. 24, was
$150,000,000 above the peak reported on Dec. 24 of last
year, while member bank reserve deposits were $180,000,000
larger on Dec. 24 than on the corresponding date in 1926.
Bill and security holdings, as usual, dropped off sharply
at the beginning of the year, accompanying the seasonal
return flow of currency, and on Jan. 26 total holdings of bills
and securities were $970,000,000, a reduction of $520,000,000 from the peak reported five weeks before. In the
3535
same period cash reserves increased $250,000,000, partly
as a result of large imports of gold but mostly because of the
seasonal return flow of currency, and Federal Reserve note
circulation declined $250,000,000. The reduction in holdings of bills and securities in January brought them down
to a level about $90,000,000 below the average for January
of the year before. For the next seven months bill and
security holdings, with some fluctuations, averaged between
$1,000,000,000 and 81,040,000,000, but beginning with
September there was a steady and rapid increase, with the
result that in November bills and securities were about
$60,000,000 higher than the year before and in Decemner
about $130,000,000 higher.
Boldings of discounted bills, which averaged about
$480,000,000 in January 1927 as compared with $670,000,000
the month before, declined to $390,000,000 in February,
and during the following three months increased to $470,000,000, followed again by a decline to $410,000,000 in
August. In September and October holdings of discounted
bills increased to $420,000,000, followed by a seasonal
increase to $530,000,000 in December as compared with
average holdings of $670,000,000 in December of the year
before. Bills bought in open market declined steadily from
an average of $390,000,000 in December 1926 to $170,000,000
in August 1927, and increased rapidly thereafter to an
average of $380,000,000 in December,or only about $10,000,000 less than the year before. Doldings of U. S. Government securities, except for the usual fluctuations at the
March quarterly income tax payment period, remained at a
level of between $310,000,000 and $350,000,000 during the
first four months of the year and then declined to an average
of $290,000,000 in May. In June there was an increase of
$100,000,000 in holdings of U. S. securities, followed by a
gradual increase to $500,000,000 in September, $580,000,000
in November and $600,000,000 in December, the larger
holdings in Novem her and December nemg due in part to
substantial holdings of temporary certificates issued by the
Treasury to the Federal Reserve banks in connection with
the redemption of the Second Liberty Loan.
Federal Reserve note circulation declined to $1,690,000,000
on Jan. 26 1927, as compared with the seasonal peak of
$1,930,000,000 five weeks before. For the next five months
note circulation fluctuated between $1,700,000,000 and
$1,740,000,000, and then declined to a low seasonal average
of $1,680,000,000 in August. In September and October
the average amount of notes in circulation increased about
$50,000,000 and in December an additional $70,000,000
to $1,800,000,000, or about $60,000,000 less than in December 1926. Total cash reserves were $3,130,000,000 on
Jan. 26 1927, the increase of $250,000,000 for the five-week
period reflecting for the most part the seasonal return flow
of currency, but also, to a large extent, the substantial
imports of gold which took place early in 1927. By May
average reserves had risen to $3,190,000,000, largely as the
result of continued imports of gold, but thereafter declined
steadily due to gold exports and gold earmarkings for foreign
account, and at the end of the year to seasonal currency
requirements. In December 1927 cash reserves averaged
about $2,890,000,000, or $440,000,000 less than the year
before.
Member bank reserve balances following a decline during
January and February gradually increased throughout the
remainder of the year except for a slight recession in July
and August, the average for tne month of December being
$2,390,000,000, or about $170,000,000 above the total for
December 1926.
John J. O'Brien of Byllesby & Co. on Outlook in Public
Utility Field for 1928.
The view that "the utilities as at present organized will
continue to serve a constantly larger number of people,
grow steadily at a rate proportionate to further national
development and remain a highly desirable investment for
those satisfied with moderate returns on their capital," is
expressed by John J. O'Brien, President of H. M. Byllesby
& Co., in a statement issued Dec. 31 on "The Outlook in
the Public Utility Field for 1928." In his survey Mr.
O'Brien says:
As long as the electric and gas utilities continue to increase the efficiency
and production of individuals and industries, they will grow, in my opinion.
They will grow more rapidly in good times than during periods of temporary
recessions, but even in lean times they possess the ability to show progress
and maintain earnings at a point sufficient to secure the inflow of new capital
for additions and extensions. Only extremely unwise political action can
prevent them from continuing in healthy condition; that is to say, in pod.
3536
THE CHRONICLE
tion to render adequate public service based on a sound financial status.
The confidence which the Byllesby organization has in the immediate
future is illustrated by the fact that the operated companies of Standard
Gas & Electric Co. have under construction, or recently completed, additional electric generating capacity totaling 270,000 kilowatts (360,000
horsepower). This represents an increase in capacity of more than 25%•
The new installations variously comprise both steam and water power
plants in Pennsylvania, Kentucky, Wisconsin, North Dakota, Oklahoma.
Oregon and California. They represent, except in the case of one water
power plant, installations necessary to meet plainly apparent demands for
additional service.
While at present general business conditions in the territories in which
these companies operate (with some few exceptions) are not as good as a
year ago, I do not believe that anything approaching "hard times" is in
Prospect for 1928. In the Central Northwest conditions have improved,
due to a better agricultural situation. Despite low prices for petroleum.
business in Oklahoma is surprisingly good. Nevertheless, I believe that
this is a time when caution should guide both business and political action—
one in which individuals should exercise co-operatively the greatest care
towards preserving the largest possible degree of general prosperity.
Although it is true that the electric and gas industries are well stabilized,
at the same time they have a deep interest in the success of all other industries, including agriculture. They strive to promote industrial, community
and individual prosperity as a matter of enlightened self-interest. Irre-
[Vol,. 125.
spective of the fact that they are closely regulated by the State, their own
best ends are served by fair dealing, progressive development, reasonable
rates and constructive adjustment to current economic conditions.
That the country as a whole is in a period both of economic readjustment
and a lull In the recent pace of development hardly can be doubted. The
utilities, like all other business interests, must face this situation squarely.
While I do not believe that the utilities are overbuilt. I think that the next
year will witness a reduction in construction activities. In the case of our
own companies, the construction planned for the next twelve months is
about two-thirds the total planned one year ago.
The utilities, and particularly the electric light and power industry,
to-day belong to the people. The electric companies have an estimated
total of 3,000,000 individual shareholders and probably half as many individual bondholders, while the insurance companies, savings banks and
other institutions have tremendous sums invested in their securities. So
closely are they interwoven with the financial well being of the people of
the country that serious and unwarranted interference with their legitimate
welfare would mean nothing short of a national calamity.
The utilities as a whole are administered and managed by responsible
specialists who have developed them to their present efficiency. They are
directed, it may be said, by managing trustees, held to the strictest account
by the acid test of actual results to the users of service and to the investors.
Such a management system is the outgrowth of economic necessity. Its
critics thus far have failed to suggest a satisfactory substitute.
Delaware & Hudson Co.'s Petition to Acquire Control of Buffalo Rochester & Pittsburgh Ry. Denied—Inter-State Commerce Commission Rejects Loree's
Project as not in Public Interest—Objection is Made over Problem
of Grouping Roads in Trunk Line Territory—Five
Commissioners Dissent from Report.
The application of the Delaware & Hudson Co. for authority to acquire control by lease of the Buffalo, Rochester & Pittsburgh Ry., proposed as a possible step in the
formation of a new eastern trunk line railroad system
advocated by L. F. Loree, President of the Delaware
& Hudson Co. was denied by the Inter-State Commerce
Commission in a report made public on Dec. 29. The denial was based on a finding that the proposed acquisition
would not be in the public interest.
On the same grounds the commission denied in the same
report the application of the Delaware & Hudson Co. for
authority to operate over the line of the Pennsylvania
R. R. between Buttonwood and Dubois, Pa., a connecting
link between the Delaware & Hudson and the Buffalo,
Rochester & Pittsburgh Ry.
The original application has been pending before the
commission since July 16, 1926, and the decision was rendered by a divided vote, 5 of the 11 members of the commission dissenting. This is the second time Mr. Lowell
has met with an adverse decision at the hands of the
commission in his effort to effect a new trunk line railroad system. His previous setback was when the commission denied his application for authority to merge the
Kansas City Southern, the Missouri-Kansas-Texas and
the St. Louis Southwestern railroad. (See issue of May
21, 1927, pages 2980-2987.)
Among the reasons given for disapproving the plan the
majority report says:
"While we believe that these
roads might advantageously form parts of a larger system
connecting the Atlantic Seaboard with the Great Lakes or
the Mississippi Valley, the present record is not sufficiently comprehensive to warrant the practically permanent assignment of such important lines as parts of the
same system. Nor is it a satisfactory answer to say that
the lease could be terminated to meet future exigencies
of consolidation." The majority report also says that
the advantages to be gained from the combined operation
of the two roads are overestimated and that the interchange between them has been slight.
Commissioner Lewis, in a separate concurring opinion,
says that the general consolidation problem should not be
made more complex than it already is by approval of such
proposals as this, Commissioner Woodlock, in a concurring
opinion, says it should be made plain that the denial is
without prejudice to a resubmission of the applications
in connection with more comprehensive proposals.
Commissioner Meyer, in a dissenting opinion in which
Commissioners Esch, Aitchison and Eastman joined, expressed the opinion that the applications should have been
granted. Commissioner Taylor also wrote a dissenting
opinion favoring the proposed lease. The Baltimore &
Ohio R. R. and the New York Central R. R. were the only
interveners.
The report of the Commission which is dated Dec. 13
follows:
The Deleware & Hudson Co., a carrier by railroad subject to the
Inter-State Commerce Act, on July 16, 1926, filed an application in
Finance Docket No. 5656 or an order under paragraph (2) of Section
5 of the act authorizing it to acquire control, by lease, of the railroads, properties, and assets of the Buffalo, Rochester & Pittsburgh
Ry., also a carrier by railroad subject to the act, hereinafter called
the lessor. Intervening petitions were filed by the Baltimore & Ohio
R. R., hereinafter called the B. & 0., and the New York Central R. R.,
hereinafter called the Central. A hearing was held on Sept. 20 and
21, 1926, at which these interveners opposed the granting of the application. A proposed report, recommending that the application be
denied, was served, to which exceptions were filed, and the case was
argued orally and submitted on Dec. 21, 1926.
Before this case was disposed of, the applicant, in order to connect
its railroad with that of the lessor, secured conditional trackage rights,
under an agreement dated Feb. 19, 1927, over the line of railroad of
the Pennsylvania a.a., hereinafter called the Pennsylvania, extending from Buttonwood to Dubois, Pa. On Feb. 23, 1927, the proceeding was reopened, and on April 20, 1927, the lessor was granted leave
to intervene.
On Feb. 25, 1927, the applicant filed an application in Finance
Docket No. 6147, under paragraph (18) of section 1 of the act for
authority to operate under trackage rights over the line of railroad
last mentioned. A hearing was held on the two applications jointly
on April 25 and 26, 1927, at which the B. & 0. and the Central filed
intervening petitions and opposed the grantign of both applications.
No other objection to the granting of either application has been
presented.
The applicant owns and operates a line of railroad extending from
Wilkesbarre and Scranton, Pa., and Binghamton, N. Y., through
Schenectady, Saratoga, Whitehall, Plattsburg, and Rouses Point, N. Y.,
to Montreal, Canada, with branches running to Albany, Troy and
other points in New York, and to Rutland, Vt. As of Dec. 31, 1925,
its total length to steam-railroad lines operated was about 906 miles,
of which 330 miles were owned, 464 miles were leased or subsidiary
lines, and about 112 miles were operated under trackage rights.
The lessor operates about 600 miles of railroad, extending from
Pittsburgh and Newcastle, Pa., to Buffalo and Rochester, N. Y., with
branches running to Clearfield and Vintondale, Pa., and other points
in Pennsylvania and New York. Of its operated mileage, about 370
miles are owned, about 100 miles leased, and about 130 miles operated
under trackage rights.
The applicant's road penetrates the anthracite region of eastern
Pennsylvania, serves the industrial centers of Albany, Troy, and
Schenectady, the slate and marble regions of Vermont, the paper and
pulp industries of the upper Hudson and Champlain Valleys and the
iron ore mines of the Adirondacks. More than half its tonnage consists of anthracite of which it handles over 13,000,000 tons a year,
and about half its freight revenue is derived from the carriage thereof.
The lessor's road runs into the great bituminous-coal region of western
Pennsylvania and serves western New York, including the cities of
Buffalo and Rochester, carrying bituminous coal, clay and clay products,
iron, steel, coke, salt, and petroleum. It also owns one-half of the
stock of the Ontario Car Ferry Co., Ltd., which operates two car'
ferry boats across Lake Ontario from Genesee Docks, Charlotte, N. Y.,
to Coburg, Ont., the other half of that stock being owned by the
Grand Trunk Ry. (Canadian National Rys.). Nearly 60% of the
lessor's tonnage consists of bituminous coal, of which it handles about
6,000,000 tons a year and from which it derives more than half its
freight revenue. Both roads are predominantly freight carriers, the
passenger revenue of each constituting less than one-tenth of its total
transportation revenue.
The only connections between the lines of the applicant and those of
the lessor are over the lines of other carriers, the distances being
about 158 miles by the Delaware, Lackawanna & Western, 163 miles
by the Lehigh Valley, 198 miles by the Erie, 211 miles by the New
York Central, and 228 miles by the Pennsylvania.
The general balance sheets of the applicant and of the lessor as of
December 31, 1925, show the following:
D. & H. B., R. & P.
Investment in road and equipment
$75,458,523 $64,962,451
Investment in affiliated companies
1,099,108
58,804,216
Total investments
158,989,587 68,470,470
Current assets
3,942,543
10,189,062
Total assets
72,867,706
171,850,250
Capital stock
16,500,000
42,503,000
Long-term debt
73,909,000
36,076,409
Current liabilities
1,576,852
114986,920
Profit and loss credit balance
23,655,614
3,447,665
Corporate surplus
8,166,139
30,627,386
DEC. 31. 192'7.]
THE CHRONICLE
The income accounts of the two companies for 1925 show the following:
D. & H. B., R. & P.
Gross railway operating revenue
$41,706,543 $16,560,781
Net railway operating revenue
7,784,502
2,870,052
Net railway operating income
6,823,039
2,374,037
Gross income
12,182,007
3,169,574
Net income
4,907,708
661,596
Percentage of net income on capital stock
11.54
4.01
For 1924 the net railway operating income of the applicant is given
as $8,307. per mile of road and of the lessor at $4,465. These figures,
it
is stated, represent returns on the book investment in road and equipment of 6.62% and 3.62%, respectively.
A witness for the applicant refers to our tentative valuation, $57,54352, of the properties of the lessor devoted to common carrier
purposes, as of June 30, 1917. Adding $12,741,870 for additions and
betterments less retirements to June 30, 1926, he deduces a
value of
$70,271,222. Bringing these figures to date by applying an index
figure to take account of present day prices as compared with
former
prices he fixes a value for those properties of $112,818,741.
Under the proposed lease, dated Jan. 1, 1926, a copy of
which
filed with the application in Finance Docket No. 5656, but which was
parently was not executed, the lessor would lease to the applicant apfor
the term of 999 years all the railroads, properties, and assets
lessor, except certain books and records, and except deposits of the
for the
payment of dividends and interest, the applicant paying annually
to
the lessor as rental therefor $990,000, equal to 6% on the $6,000,000
of preferred stock and the $10,500,000 of common stock of
lessor
the
outstanding, and an additional amount equal to the reasonable
corporate expenses of the lessor for maintaining its corporate
The lessee is also to pay the interest upon the outstanding existence.
bonds and
other obligations of the lessor and its subsidiary companies
and all
taxes and assessments levied upon the lessor and its subsidiary
companies, as well as certain other specified charges and expenses of the
lessor. The application indicates that by virtue of the proposed lease
there would be common control, management, and operation
of the
railroads of the applicant and the lessor.
It will be noted that by this lease the applicant obligates itself to
pay fixed charges on more than $52,000,000 of capital a year, although
about $1,700,000 of this amount is now a fixed interest charge of the
lessor. It may well be doubted whether this large increase in fixed
charges, involving substitution of an annual fixed dividend charge of
$990,000 for a contingent dividend distribution, is in the public
interest.
The lesser's road is in good condition and its average net income for
the years 1910 to 1926, inclusive, was $1,185,852.38, or over 7% on the
capital stock. For the 10 years 1917-1926, inclusive, however, the
average was $783,336.71, or 4.75% on the capital stock. It thus appears
that during this period the carrier did not average annual earnings
equal to the $990,000 payable under the proposed lease. The applicant
points out that the years 1921 and 1922, in which there were deficits
of $946,598 and $1,191,165, respectively, were abnormal, in that during
the former the process of adjustment following Federal control was
incomplete and in the latter the great bituminous coal strike occurred.
The contemplated union of the two lines would not restrict competition in any way, as the applicant and lessor do not compete with
each other. On the contrary, the applicant claims that the acquisition
by it of the lessor's road would increase competition between the united
lines and other railroads. This would come, it is said, through the
stimulation of traffic between the two roads, the more extended use of
the Ontario car ferry, particularly for anthracite shipments, and the
increased shipments of ore from the iron mines of the Adirondacks
to the Pittsburgh district and of bituminous coal to the north and east.
The gradual exhaustion of the anthracite, which forms so large a
part of the applicant's tonnage, is stated as a principal reason for its
desire to acquire control of the lesor's road. The applicant's president states that the Wyoming or northern anthracite field, which his
road serves, has a probable life of not much more than 25 years, so
that it is necessary to prepare for the disappearance in that time of
the anthracite traffic, which now amounts to about 11,000,000 tons per
year. The bituminous coal from the lessor's line is desired to supply
the place of the anthracite. The obtaining of bituminous tonnage to
replace the disappearing anthracite would be an advantage to the
applicant, but apparently there would be little need of this, so long as
the applicant has anthracite coal to haul in large volume. It is also
pointed out on behalf of the B. & 0. that as the applicant's line is
largely a bridge route between the bitumious coal-carrying railroads
and northern New York and New England, the latter's future as
a
carrier would seem to be assured without the proposed lease.
Bituminous coal is found on the lessor's line in quantities which
for the present may be regarded as inexhaustible. It is estimated that
in the territory served exclusively by the lessor there are more than
1,200,000,000 tons available, that in territory served competitively by
the lessor, the Pennsylvania, and the Central there are 250,000,000
tons more, and that the present annual output along the lessor's line
could readily be doubled.
Again, it appears that the general direction of the traffic of the
lessor's line is predominantly to the north and east. Of the 4,915,942 tons of revenue traffic originated by the lessor in 1922 and delivered
to connections in systems 1 to 9 of our tentative plan for consolidation of railways, 3,942,697 tons, or about 80% were destined to northern and eastern points. This results in a somewhat unbalanced traffic
movement for the lessor and it is urged that any alliance with a noncompetitive carrier which would provide additional traffic moving to
the south and west would be advantageous. The applicant contends
that its line can supply this westbound and southbound traffic.
The products of the territories severally served by the roads of the
applicant and lessor are largely different. On the line of the applicant,
in addition to anthracite, are produced in quantity iron ore, newsprint
paper, marble, ground granules, and roof and manufactured slate. On
the line of the lessor, in addition to bituminous coal, are produced iron
and steel manufactures, coke, salt, brick, and artificial stone. There is
a strong demand in each of these territories for the products of the
other, and it is through that with a common operation of the two roads
and the added inducement for interchange resulting therefrom this demand would largely increase. Anthracite is moving in considerable and
increasing volume from the mines served by the lessee into Ontario by
way of the Ontario car ferry, such shipments having increased from
478 tons to 1920 to 43,217 tons in 1924 and about 50,000 tons in 1925.
This ferry is capable of handling much larger tonnage, and affords the
shortest route from those mines to all that portion of Ontario extending
from Toronto 200 miles to the east. Ontario uses about 2,000,000 tons
of anthracite a year. Most of the coal going into that part of Canada
now moves by the Niagara gateways. The applicant claims that these
3537
gateways are frequently congested, and that the diversion of traffic
to
the Ontario car ferry would tend to relieve that congestion. Toronto
is reached with equal facility by the Niagara gateway and by the
Ontario ferry through Coburg. Although its distance from applicant's
mines is about 11 miles farther by way of the ferry than by Niagara,
the advantages of cheap water transportation for about 55 miles across
the lake probably would more than offset the disadvantage of greater
distance. The applicant anticipates that the advantages offered by the
Ontario car ferry will lead to its increased use, particularly if the control of the lessor's railroad herein sought is secured.
A shorter route into Canada from coal mines on the applicant's road
would be by way of the Pennsylvania through Williamsport and Elmira
to Sodus Point and thence across Lake Ontario, the distance by that
route from Buttonwood to Sodus Point being 264 miles. From Buttonwood over the trackage through Dubois and Rochester to Charlotte the
distances is 458 miles. There is no car ferry at Sodus Point, however,
and no facilities for shipping coal across the lake except by dumping
it into the hold of a vessel. This method of handling is injurious to
anthracite, and it appears that no anthhracite shipments are being made
across the lake from that point.
It is also urged that the lease is important in connection with the
fuel supply of New England, which gets its coal largely by all-rail
routes, and that it is therefore desirable to have an additional competitive fuel line into that territory. The lessor gives economical access to an adequate supply of coal and teh applicant provides the
gateway connection. The line, of course, is already in existence and
could be used without the lease, but the lease would doubtless provide
the inducement to its greater use. The lessor is now a party
to
many through routes to New England.
As to the Adirondack iron ore, the applicant believes that shipments
thereto to the steel plants of the Pittsburgh district will largely increase because the deposits of Lake Superior hematite ore, chiefly used
in that district, are disappearing rapidly and their iron content
is
gradually decreasing, the standard having been 65% in 1888 and
being now 51.5, with the prospect of soon being reduced to 50%.
It
will therefore probably be necessary in the future to mine and utilize
ores lower in ,iron content than can be concentrated and marketed
economically at present, and this will bring into the market increasing
quantities of the Adirondack ores. The record shows that there is
practically an unlimited supply of low-phosphorous magnetic iron ore
in the Adirondacks, roughly estimated at 2,100,000,000 tons, from
which almost any grade of iron can be made, while there are no Lake
Superior ores from which low-phosphorous iron can be made.
Statistics of the production of Adirondack ore in recent years do not
afford much support to this claim of an increased demand. The shipments or iron ore originating on the applicant's line in the years 1915
to 1925, inclusive, were as follows:
Year
Tons
Year
Tons
1915
630,747 1921
109,241
1916
1,264,175 1922
180,385
1917
1,224,929 1923
563,877
1918
1185,415 1924
202,148
1919
1 003,068 1925
342,026
1920
774,591
The record does not show statistics of Lake Superior iron ore production for the years above named.
In behalf of the applicant it was indicated at the first hearing that
existing routes and channels of trade would not be distributed by the
proposed lease, and that the connecting carriers would benefit from the
increased interchange resulting therefrom. The use of the trackage
rights over the railroad of the Pennsylvania above mentioned would
naturally result in the diversion of some traffic from the other connecting lines, as hereinafter shown, although apparently no other routes
would be closed thereby.
The control of the assets and resources of the lessor by the applicant
would perhaps improve to some extent the excellent financial standing
of the latter. The common control, management, and operation of the
two railroads would also probably result in some economies and increased operating efficiency.
The applicant has a large westbound traffic in anthracite, of which
about 117 cars per day are loaded for points on or west of the lessor's
road, while the lessor has a large eastbound traffic in bituminous coal,
of which about 97 cars per day are loaded for points on or east of
applicant's line. About 65 cars move empty in either direction every
day. The applicant asserts that, if the handling of the equipment of
both roads were coordinated and the westbound anthracite shipments
loaded in the lessor's empty cars, and the applicant's empty eastbound
cars loaded with bituminous coal, there would be a great saving from
the elimination of empty-car mileage; that this saving would amount
to about 22,490 car-miles daily, and that, as the cost of moving an
empty car 1 mile is about 6 cents, the daily saving would be about
$1,349,400 and the yearly saving over $400,000. It is also claimed
that by leading cars which now move empty the same amount of traffic
could be handled with 450 less cars, which, at an average price of
$2,500 per car, would be equivalent to a reduction of $1,125,000 in the
required capital investment. Then, too, the lessor has a surplus of
freight cars, while the applicant has an insufficient supply. If the
roads were operated together, a saving in investment could be effected
through utilization by the latter of the former's surplus. It is estimated that by this means capital expenditures amounting, as of January
1, 1928, to $1,050,000, would be made unnecessary. Other economies
expected to result from the unified operation of the two roads are
those to come from the unification of the purchasing and the soliciting
departments of the carriers.
The unified operation of the two lines would perhaps tend to
stabilize their revenue, since periods of relative activity and dullness,
respectively, would not usually occur on both lines at the same time,
and a lessened production of anthracite is usually accompanied by an
increased demand for bituminous coal, and vice versa. In this way
each line might profit to some extent from the misfortunes of the other
and their combined income might be less variable than that of either
if separately operated. While, as hereinbefore shown, the applicant
is in a stronger financial position than the lessor and shows somewhat
better operating results, the two combined show results that compare
very favorably with other road,s as appears from the following table
prepared from one of applicant's exhibits, showing the ratio of certain
items to railway operating revenues, 1924:
Group A
go
Net operating revenue
17.8
Railway operating income
14.9
Toint Facility and equipment rentals. + 1.68
'Net railway operating income
16.5
Group B
%
22.4
17.3
— 1.6
17.5
Group C
%
22.8
17.6
— 1.5
16.1
3538
THE CHRONICLE
Group A—Delaware & Hudson and Buffalo, Rochester & Pittsburgh.
Group B—New York Central, Pennsylvania and Baltimore & Ohio.
Group C—All roads in Great Lakes, Central, Eastern and Pocahontas
districts.
While the economies through joint control might be important, we believe that the foregoing estimates are too optimistic. A great decrease in
the number of empty cars transported would depend so largely upon the
synchronized movement of anthracite and bituminous coal that it implies
a situation somewhat too ideal. The increased economy through the use
by the applicant of the lessor's surplus cars is difficult to estimate with
any accuracy. Present surplus is not necessarily an indication of permanent conditions. The distance between the lines of the applicant and
lessor would interfere with these economies to some extent. It is also
indicated that the balanced movement of anthracite and bituminous coal
will be in some degree temporary, ceasing with the exhaus ion of applicant's anthracite tonnage.
Again, as to some of these economies, while they might benefit the
applicant, it is not apparent that the public would reap much advantage.
Several routes are now open and in use for the interchange of traffic
between the lines of the applicant and lessor. It appears that the connecting carriers are affording efficient and satisfactory service over their
lines. It does not appear that freight rates would be lowered by the
control and operation sought or that there would be any maerial lessening of the time of freight movements. So far, however, as the economies
might result in a decrease in necessary capital investment they would be
of general benefit.
The proposed lease is called a natural step in the ultimate consolidation of the railroads of the country into a limited number of systems.
It is pointed out that in the commission's tentative plan of consolidation,
63 I. C. C. 456, the applicant's road is attached to the Erie system, No. 4,
and alternatively to the New England-Great Lakes system, No. 7A, in
which the lessor's road is included. It is therefore argued that the union
of the applicant and lessor seems to have the tentative approval of the
commission and may well be a step in the formation of a new trunk line,
the main stem of which might be formed by the Wabash with the Delaware, Lackawanna & Western, the Lehigh Valley, or the Erie. The
Delaware, Lackawanna & Western, it is noted, is also placed by the
commission in system No. 7A. It is also suggested that the lease would
furnish a nucleus for a trunk-line system extending from Boston to
the West.
Another point urged in favor of the proposed lease is that it would
preserve the integrity of the lessor's railroad, whereas the B. & 0. and
the Central have been considering its division between them, it having
been tentatively arranged when the Central was recently negotiating for
the purchase of the lessor's line that the B. & 0. should take over the
portion from Butler to Dubois, which it would like to have in its proposed short line between Chicago and New York, hereinafter discussed.
The applicant claims that such division of the line and the use of a
portion thereof as part of a through line would be detrimental to the
industries and communities served by the lessor and would not be in
the public interest. The lessor's railroad is distinctly not a bridge line.
The record shows that out of a total traffic in the year 1922 of 9,715,054
tons only 139,854 tons, less than 2%, was bridge traffic. The road is
devoted in an unusual degree to the service of the communities and
industries on its own line. In 1925 of its total traffic, 68.75% originated
on its line. The increased use of a portion of its trackage for through
traffic might therefore intefere to some extent with this service to local
industries. The Butler-Dubois division is, also represented to be one of
its busiest industrial sections. However, the preservation of the integrity
of the lessor's line can hardly be regarded as dependent on the proposed
lease.
The proposed lease seems to be favored by shippers on the lessor's line.
The Elk County Manufacturers Association, an organization composed
of many industries, urged the consummation of the lease, and, as above
noted, no opposition was made to it except by the B. & 0. and the Central,
both of which are competitors of the lessor and have other views as to
the disposition of its road.
The Central urged in its brief that no public interest would be served
by the acquisition sought, because there was little interchange of traffic
between the line of the applicant and the line of the lessor. It pointed
out that in 1922 only 2.47% of the total traffic originating on the lessor's
line and delivered to its connections terminated on the applicant's line,
while the corresponding percentage for the Central was 23.42, for the
Delaware, Lackawanna & Western 8.72, for the Bessemer & Lake Erie
9.23, and for the B. & 0. 2.96. The Central also mentioned certain
operating relations which it had with the lessor at Clearfield and other
parts and concluded that "from a traffic standpoint the interest of the
New York Central in the Buffalo, Rochester & Pittsburgh far exceeds
that of any other carrier." However, it announced no present intention
of seeking to acquire control of the lessor's line.
For nearly thirty years the lessor has had close relations with the
B. & 0. and the lessor in 1925 was 1,067,402 tons, from which the forthe latter between Butler and Newcastle, where the lessor has constructed its own terminals, and between Ribold Junction and Pittsburgh,
with the joint use of the B. & 0. stations and facilities in Pittsburgh.
These contracts give the lessor the rights of an originating carrier in
Pittsburgh and Newcastle, and open up to it the industrial territory on
the Pittsburgh Junction Ry. One of these contracts provides that the
right to use the tracks and other facilities thereby given shall not be
assigned or transferred to another railroad company without the written
consent of the B. & 0. and its associates in the contract. The B. & 0.
regards the proposed lease to the applicant as in conflict with this provision, since it transfers to the applicant every species of the lessor's
property. As the lease transfers to the applicant the rights and privileges of the lessor under its trackage agreements with other roads only
"in so far as the lessor has or may obtain the right to assign the same"
and the lessor covenants therein to "take all such steps as may be practicable to obtain all necessary consents and approvals from other parties
to said agreements," this view of the B. & 0. does not seem to be
well founded.
The record shows that the total interchange of traffic between the
B. 0. and the lessor in 1925 was 1,067,402 tons, from which the former received revenue of $1,728,619 and the latter $1,795,600. The lessor
also originates and delivers traffic on the lines of the B. & 0. where it
has the contract rights above mentioned, amounting to about 1,000,000
tons per annum, on which it earns about $1,700,000. The total traffic
handled by the lessor to and from or over the B. & 0. lines thus
amounts to over 2,000,000 tons per annum, or about 20% of the lessor's
total tonnage, and the revenue from such traffic amounts to about
$3,500,000, or over 24% of lessor's total freight revenue. The B. & 0.
also diverts its through traffic between Butler and Mt. Jewett, about
125 miles, over the lessor's road on account of operating disadvantages
on its own line between those points.
[VOL. 12S.
On account of those relationships, which it has planned to make
closer, the B. & 0. opposes the proposed lease to the applicant, and
urges the advantage to both roads and to the public of a more intimate
9.mnection between the B. & 0. and the lessor, pointing out that in its
interchange of business from Buffalo, Rochester, and adjacent territory
with the lessor the latter obtains a maximutn haul on traffic to the east,
west and south. It further claims that large economies in operation
would result front the union of the lessor's road with its own, and that
the movement of grain from Buffalo for export through Baltimore, where
the B. & 0. has elevators of capacity greatly exceeding their present
use, would be stimulated by such union.
The B. & 0. also has under consideration plans for the formation of
a new through line between Chicago and New York, which contemplates
the inclusion therein of about 80 miles of the lessor's line between Butler
and Duboic. This proposed line would consist of the present line of
the B. & 0. front Chicago through Newcastle to Butler, thence over the
lessor's line to Dubois, thence over the lines of the Pennsylvania or
Central, under trackage rights or otherwise, to Williamsport, and thence
by the Reading and the Central of New Jersey to New York. As the
B. & 0. has large financial interests in the two carriers last named, the
entire route from Chicago to New York, except for the 120 miles from
Dubois to Williamsport, would be over lines of the B. & 0., or roads
in which it is largely interested, if it could acquire the lesor's line.
This proposed through route, it was pointed out, would pass north of
Pittsburgh and avoid the great congestion there and also would be
shorter than any other route between Chicago and New York, except
that of the Pennsylvania R. R., and only 4 miles longer than that. It
would also have an advantage over the Pennsylvaina's route in that its
maximum elevation would be 1,525 feet as against a maximum of over
2,000 feet on the Pennsylvania.
There are some negotiations between the B. & 0. and the lessor for
the least of the latter's road to the former before the tentatvie agreement to lease it to the applicant was made. The president of the B. & 0.
indicated that these negotiations were suspended on account of negotiations between the lessor and the Central, and that if the B. & 0. had
known that the latter negotiations had been discontinued it would have
resumed its negotiations with the lessor. Although the acquisition of
the lessor's line by the B. & 0. is not an issue herein, the testimony
offered by the latter is important tn the determination of the question
whether the acquisition of control herein sought is in the public interest.
Although the proposed lease has not been executed, it was unanimously approved by the stockholders of the applicant and of the lessor
in Sept., 1925. In the summer of 1925 it was agreed between the presidents of the lessor and applicant that if the commission should not
approve it by Dec. 31, 1926, the lessor would no longer be obligated to
make the lease. This time was later extended to Feb. 28, 1927, and,
such approval not having been given, the lessor by letter of March 2,
1927, announced that it was free from any commitment to lease its
property to the applicant.
At the first hearing and at the argument the strongest point urged
against the proposed lease seemed to be the distance between the two
railroads and the fact that there was no connection between them over
which the applicant had control.
The trackage rights arranged for more evidently intended to overcome this objection. By the agreement of Feb. 19, 1927, above mentioned, the Pennsylvania grants to the applicant, contingent upon our
approval of its lease of the railroad of the lessor, the right to use jointly
with the Pennsylvania the main tracks, passing sidings, and appurtenances of the line of the railroad of the Pennsylvania extending from
Buttonwood, Luzerne County, Pa., through Sunbury, Williamsport, and
Driftwood to Dubois, Clearfield County, Pa., about 224 miles, and to
move thereover its own trains propelled by its own engines for the
transportation of through freight only. At Dubois this line connects
with the railroad of the lessor, and at Buttonwood it connects with the
railroad of the Wilkesbarre Connecting R.R., which is controlled through
stock ownership by the applicant and the Pennsylvania jointly, and
whose road connects with the applicant's line in or near Wilkesbarre,
some 4 miles from Buttonwood. The compensation fixed by the agreement for such use by the applicant is $1.50 for each train mile made by
the applicant's freight trains, that payment being subject to modification and adjustment at the end of any contract year on three months'
prior written notice given by either party to the other. The agreement
further provides that the applicant shall pay additional sums, as therein
provided, for coal and water furnished, for repairs to its engnies, for
hostler service, and for supplies furnished. Disputes between the
parties are to be arbitrated. The agreement is to continue in force for
20 years and may then or thereafter be terminated by three years' prior
notice by either party.
The record shows that the line of railroad over which these trackage
rights are given is in excellent condition, with very low grades to overcome and few curves to reduce speed; also that the traffic thereon is not
so great as to interfere with the proper handling of the freight trains
which the applicant may operate over it under the trackage agreement.
Of the whole line, 37% is single track, 58.4% double track, and 4.6%
third track.
The Pennsylvania connecting line between the railroads of applicant
and lessor being longer than either of the other connecting lines, would
naturally seem to be the least desirable to the applicant for trackage
purposes. As above noted, it is a low-grade line with easy curves, but
the record does not show that the connection by either of the other lines
presents any particular operating difficulties. From points on the applicant's line to points on the northerly part of the lessor's road, routes
by way of the Pennsylvania line would he quite circuitous. From
Scranton and Wilkesbarre to the Genesee docks at Charlotte the route
by that line would be from 50 to 200 miles longer than routes by way of
the Lehigh Valley, Lackawanna, Erie, or Central. Notwithstanding the
greater distance by the trackage route, applicant indicates that it expects to handle much anthracite that way. This route seems not to have
been regarded heretofore as an advantageous connection between the
roads of the applicant and lessor, since it appears that no joint rates
have been in effect thereover. It would, however, be only 8 miles longer
than the shortest route between the Adirondack iron mines and Pittsburgh, the distance from Port Henry to Pittsburgh being 646 miles by
the trackage route, 638 miles by the Central route through Schenectady
and Rochester, and the same distance by the Binghamton-Erie-Johnsonburg route, while by the Lackawanna it is 685 miles and by the Lehigh
Valley 702 miles. The trackage route would also be advantageous for
moving bituminous coal from western Pennsylvania to points on the
applicant's line and beyond, the distance from Pittsburgh to Albany
being 558 miles by the Central, 598 miles by the Lackawanna, and 616
miles by the Lehigh Valley. The trackage route is thus only 8 miles
DEC. 31 1927.]
THE CHRONICLE
longer than that of the Erie which is the shortest route between those
points. Its principal use doubtless would be for the transportation of
coal and iron ore, as the estimates presented indicate.
The applicant's estimate of traffic to pass over the trackage route
shows a balanced movement westbound and eastbound, the estimated
westbound traffic for the first year being 1,024,440 net tons, including
615,000 gross tons of anthracite and 229,500 gross tons of iron ore, and
the estimated eastbound traffic 1,137,500 net tons, including 900,000
gross tons of bituminous -coal. It is estimated that the traffic in both
directions would gradually increase until in the fifth year the total
westbound tonnage would be 1,937,379 net tons, including 1,215,000
gross tons of anthracite and 429,500 gross tons of iron ore, while the
eastbound traffic would be 1,613,529 net tons, including 1,300,000 gross
tons of bituminous coal. As indicating that these estimates are conservative, a witness for the applicant testifies that it is now handling
over 3,000,000 tons of bituminous coal a year, of which 90,000 tons
move from mines on the lessor's line. He estimates that with the
trackage rights in use at least 810,000 additional tons would be purchased by the applicant's patrons from mines on the line of the lessor,
which would then be connected with them by a direct route and a
single train movement. As to the westward tonnage of anthracite, the
estimate contemplates the movement of only 50 cars per day over the
trackage route of a total of 117 cars of anthracite moving to the west
each day. It is estimated that the anthracite moving over that route
would increase 150,000 tons a year, the bituminous coal 100,000 tons a
year, and the iron ore 50,000 tons a year. As to the iron ore moving
from the Adirondacks to Pittsburgh, the route by way of the trackage
is only 8 miles longer than the shortest route and would naturally be
largely used.
While considerable traffic might be diverted to the trackage route and
the applicant would doubtless derive some advantage from the combined
operation of the two roads, in our opinion the advantages to be gained
from the proposed lease are overestimated. The record shows that the
interchange between them in the past has been slight and to what extent
it would be increased by common management and operation by virtue
of such a lease is problematical. As the trackage agreement requires
the applicant to pay only for such use as it makes of the road of the
Pennsylvania and provides for no minimum user, the applicant would
naturally make only such use of it as it found to be profitable. Applicant anticipates that a large part of the 810,000 tons of bituminous coal
which it expects presently to divert to the tracks will be taken from the
Pennsylvania. Although it must be assumed that the latter has considered this loss, its way is open to demand increased compensation for
the trackage rights and, under the terms of the agreement, the compensation might be raised to such a point as to make the rights unprofitable to the applicant and induce their abandonment even before the
expiration of the relatively short term of 20 years. Furthermore, diversion to the trackage route of traffic originating on the lessor's line
south of its connection with the Pennsylvania would to that extent
lessen the use of the facilities now provided by the lessor. The trackage agreement, as noted, is for a limited period and its terms are not
such as to convince us that it is intended as a permanent arrangement
or that a considerable volume of traffic will move thereunder. It lacks
that element of permanence and stability which would be appropriate in
a buttress for the lasting arrangement contemplated by the lease.
In view of these circumstances and the possible eventualities mentioned, which might lead to a disuse of the trackage rights soon after
the applicant had secured its proposed lease, those rights would seem
to furnish little additional reason for our approval of the lease.
Upon the record presented the applicant has not established its claim
that the acquisition of control sought would be in the public interest.
An additional reason for present disapproval of the proposed lease is
apparent in the general problem of proper disposition of these roads
incident to the grouping of lines in trunk line territory under the requirements of section 5 of the act. While we believe that these roads
might advantageously form parts of a larger system connecting the
Atlantic seaboard with the Great Lakes or the Mississippi Valley, the
present record is not sufficiently comprehensive to warrant the practically permanent assignment of such important lines as parts of the
same system. Nor is it a satisfactory answer to say that the lease
could be terminated to meet future exigencies of consolidation. We do
not feel that the situation can be protected properly by a condition such
as that included in our order in Cotstrol of Central Pacific by Southern
Pacific, 76 I. C. C. 508. The application in Finance Docket No. 5656
must be denied.
The trackage rights over the Pennsylvania are contingent upon our
approval of ihe lease of the lessor's road. The granting of the application in Finance Docket No. 6417 therefore would serve no useful purpose even if public convenience and necessity required operation by the
applicant under such trackage rights, and upon the facts presented we
are unable to find that they require such operation. That application,
therefore, will also be denied.
An appropriate order will be entered.
Commissioner Lewis, concurring, says:
The Delaware & Hudson here proposes to attach to itself the Buffalo,
Rochester & Pittsburgh. These properties are separated by something
like 150 to 225 miles. As designed to bring them into working union,
there is laid before us, with the lease, a trackage agreement under
which the Delaware & Hudson would operate its trains over the Pennsylvania RR's tracks from Buttonwood to Dubois, Pa., a distance of
224 miles. The proposed lease of the Buffalo, Rochester & Pittsburgh
would run for 999 years. The trackage agreement has a life of 20
years. It is made the more unstable by terms which provide that the
agreement can be disturbed "by modification and adjustment" at the
end of any contract year by 3 months' prior written notice by either of
the parties. The mere statement of the proposal is sufficient.
It seems clear that in this instance we are called on to act without
being afforded knowledge of what that action involves. Is there a clear
revelation of plans of the proponents? We can not be oblivious to the
fact—not in this record, however—that this may be and probably is a
preliminary step in a plan for an extensive grouping of carriers into a
system of transportation reaching from the Atlantic to the Mississippi,
or beyond. If in reality we have before us the question of whether
there should be four or five great systems in the northeast, we certainly
do not have in the record before us anything to afford guidance. It is
true that in Control of Central Pacific by Southern Pacific, 76 I.C.C.
508, we limited acquisition of control by incorporating a provision that
the authority granted shall terminate if and when the proposed lease or
trackage contract shall be found to conflict with any plan for consolidation of the properties involved, or any part of them, under any pro-
3539
vision of law now in force or hereinafter enacted. The need and public
interest justified such a step there. There is no great urgency in this
instance. There undoubtedly is to come before us the large question of
the grouping of the carriers in this part of the country into a limited
number of extensive systems. The problem should not be made more
complex than it already is by approval of such proposals as this.
Commissioner Woodlock, concurring, says:
I concur in the denial of these applications solely for the reason given
in the antepenultimate paragraph of the majority opinion. It should be
made pleat that our denial is without any prejudice whatsoever to resubmission of the applications, wholly or in part, in connection with a
more comprehensive proposal or proposals for grouping of carriers in
eastern territory.
Commissioner Meyer, dissenting, says:
The record in these proceedings shows that the lines of the applicant
and the Buffalo, Rochester & Pittsburgh are in no degree in competition but on the contrary are complementary; that for many years, at
least, their operation as a single system would in all probability result
in a better balanced traffic and a more complete use of facilities; that
through such use and the consolidation of facilities and operations substantial economies would be realized; that the consideration proposed to
be paid, taking into account the increase in net revenues that may reasonably be expected, is not excessive; and that there is nothing clearly
unjust or unreasonable in the other terms or conditions of the proposed
lease or trackage agreement. The interested shippers are in favor of
the plan. With the inclusion of a condition similar to that in Control
of Central Pacific by Southern Pacific, 76 I.C.C. 508, providing that the
arrangements shall be held subject to termination by order of the Commission when found to interfere with any future development of consolidation plans under our jurisdiction, I am of the opinion that the
applications should be granted. Chairman Each and Commissioners
Aitchison and Eastman join in this dissent.
Commissioner Taylor, dissenting, says:
The only questions for the commission to decide, with respect to the
application of the Delaware & Hudson Co. for control of the Buffalo,
Rochester & Pittsburgh are:
First.—Whether such control will be in the "public interest," and
Second.—Whether the "terms and conditions" of the proposed lease
"shall be found by the commission to be just and reasonable in the
premises."
L PUBLIC INTEREST.
Assuming that the proposed control is a step towards consolidation,
and that the mandates of the law, that "competition shall be preserved
as fully as possible," and that "existing routes and channels of trade
and commerce shall be maintained," will be complied with by the control
sought, which seems to be clearly shown by the record, the matters of
public interest to be considered are as follows:
1. The interests which depend directly upon the Buffalo, Rochester
& Pittsburgh for transportation.
2. The rights of the State from which the corporation received its
life, and through the sovereignty of which it was permitted to acquire
its property and perform its transportation functions.
3. The rights of that part of the public which is concerned with the
eiitire transportation system of the country.
(1) The record clearly shows that every interest depending directly
transportaupon the Buffalo, Rochester & Pittsburgh, as its means of
or else
tion, was either present and strongly in favor of this plan,
showed acquiescence by its absence.
(2) The fact that the State did not, through any of its agencies,
protest against the consummation of this lease, is conclusive evidence
that no such objection exists.
(3) With respect to the transportation system of the country, as a
whole, the Baltimore & Ohio RR. and the New York Central RR. were
which
the only interveners. The resord shows that the only concern
the lease in queseither of these companies could have, in preventing
future
tion, is that it might deprive them of the opportunity, at some
property of lessor.
time, of securing for themselves the control of the
ever
has
companies
The record is equally clear that neither of these
Buffalo, Rochester &
made a direct offer to the stockholders of the
in a waiting attiPittsburgh for the right to control, but have remained
them, that neither would
tude, with an apparent understanding between
control might be made at
bid against the other, until the purchase of
be compensated for its
their option, and upon btiyers' terms, each to
between them. Therefailure to bid, by a later division of the property question by localizing
this
fore we may simplify our consideration of
the Buffalo, Rochester &
it, so that determination of the control of
whether, in the public in.
Pittsburgh may rest upon the question as to
acquired by the Delaware &
terest, it would be better for it to be
partitioned and distributed
Hudson, or whether this property should be
York Central.
between the Baltimore & Ohio and the New
Rochester & Pittsburgh is bituThe principal traffic of the Buffalo,
deposits tributary to the
minous coal, of which there are also enormous
York Central. For the
lines both of the Baltimore & Ohio and the New
reaching such large bituBaltimore & Ohio to secure control of a line
Buffalo, Rochester & Pittsburgh,
minous coal deposits, as those upon the
existing between coal mines
new
competition
restraining
in
might result
all beyond the range of
at
not
is
it
as
properties,
these
of
on both
8: Ohio might see fit to
reasonable traffic possibility that the Baltimore
of some of the mines on
diminish, if it did not destroy, the competition
only a short haul into markets
the Buffalo, Rochester & Pittsburgh, with
companies; so that it
common to the mines located on the lines of both
giving it a longer haul. The
might enjoy, in a greater degree, the traffic
& Pittsburgh and the
partition of the property of the Buffalo, Rochester
and the New York
distribution of its parts to the Baltimore & Ohio
the inudstrial and
Central might result in irreparable injury to many of Rochester&Pittscommercial enterprises now located upon the Buffalo,
for the unanimity of
burgh. This constitutes the underlying cause
proposed lease, from which
sentiment of these interests in favor of the
no such disadvantageous result could flow. physical connection between
Interveners urge that, because there is no
should not be approved.
the lines of the lessor and lessee, this lease
Buffalo, Rochester & PittsThe lessee has shown that traffic from the
its line, at Scranton and
burgh can be delivered to the lower end of
Delaware, Lackawanna
Wilkes-Barre, Pa., by the Lehigh Valley and the
Salamanca, N. Y., by the Erie;
& Western; and at Binghamton and
at Binghamton,
that it now has direct connection with the Lackawanna
and Waverly, N. Y.,
and possesses trackage rights between Binghamton
trackage, and,
that
and operates its own trains from Oneonta Yard over
3540
THE CHRONICLE
by means of Lehigh Valley trackage rights, into its terminal yard at
Sayre, Pa., only slightly more than 100 miles from the line of the
Buffalo, Rochester & Pittsburgh. Is it conceivable that the management of the Delaware & Hudson, if this lease was approved, would not
be able to effectively bridge the distance now separating its rails from
those of the Buffalo, Rochester & Pittsburgh, either by the pending or
other favorable trackage rights with existing lines of railway, or, failing
to make such reasonable arrangements, that there would be any insurmountable difficulty to its constructing a ligament between the two
properties? It seems impossible to rest and valid objection upon this
point. We have settled affirmatively, in the petition of the St. LouisSan Francisco Railway for the control of the Muscle Shoals, Birmingham & Pensacola Railway, separated by a distance of 153 miles, that
lack of physical connection does not constitute a legal objection to the
control, by one carrier, of the property of another. Acquisition and
Operation by M. S., B. & P. R. R., 105 I.C.C. 99.
The record shows that the productions of the main industries along
the line of the Delaware & Hudson and those of the Buffalo, Rochester
& Pittsburgh are radically different in character. The bituminous coal
production upon the line of the Buffalo, Rochester & Pittsburgh, and
anthracite upon the rails of the Delaware & Hudson do not compete.
The movement of bituminous coal from the line of the Buffalo, Rochester & Pittsburgh, because of competition in the territory west of Buffalo,
is forced toward the east, and approval of this lease would provide a
source of supply of bituminous coal available for eastern New York and
western New England by distinct competitive channels. On the other
hand, the natural trend of the movement of the anthracite coal from the
lines of the Delaware & Hudson is toward the west, thus creating an
opportunity for an ideal economical utilization of freight cars which
would otherwise move in one of these directions empty. "Coal, which
is power, and iron, which is strength," are traffic affinities. The union
of the Buffalo, Rochester & Pittsburgh, along which the first is produced, and the Delaware 8: Hudson, reaching the ore mines in the
Adirondacks, on this account would have a most beneficial result.
To sum up the question of public interest:
First.—The representatives of all the traffic directly tributary to the
line of the Buffalo, Rochester & Pittsburgh are before us, either urging
approval of the lease, or else they are silent.
Second.—This applies to every other organization, political, social, industrial or commercial, having any like interest.
Third.—No one objects to this lease except the New York Central and
the Baltimore & Ohio, whose interventions disclose no public interest,
but only the desire to secure control, at some future time, of at least
part of this property upon their own terms.
Generally speaking, it is clear that the bringing together of the Delaware & Hudson and the Buffalo, Rochester & Pittsburgh under one control will facilitate greatly an interchange of traffic widely dissimilar in
character, supplying the needs of important sections of the country;
further, it will bring about great economies, especially in the increased
utilization of freight cars by the lowering of the percentage of the empty
movement.
II. JUST AND REASONABLE' TERMS.
The second obligation imposed upon the commission by paragraph (2)
of Section 5, is the determination of whether the terms and conditions
in the proposed lease are just and reasonable.
The lessee obligates itself to pay all expenses of operation, all of the
fixed charges of lessor, and also an amount equal to 6% on both its
preferred and common stock, amounting in the aggregate to $990,000.
This amount is less than the net average earnings of lessor for a period
(VOL. 125.
of 17 years, which amounted annually to an average of
$1,185,852,
the requirements of the lease amount to only a little more than half and
the
net revenue which would be earned by the Buffalo, Rochester &
Pittsburgh upon the basis of 534%, upon the lowest rate base which could
be arrived at under any of the rules which we have fixed for the
determination of the value of railroad property. An objection to this lease
has been raised because it creates a fixed charge which the public may
be called upon, at some future time, to bear. This conclusion is inaccurate, because this lease money is not to be provided by the public,
but by the Delaware & Hudson, and the practical effect of the Delaware
& Hudson's being unable to so operate the property of the Buffalo,
Rochester & Pittsburgh, that its net earnings will be equal to this
amount, will be a reduction in the balance to income account of the
Delaware & Hudson now subject to and applicable to dividends to the
stockholders of that company. For this reason, the amount of this
lease could not become a fixed burden, to be provided by the public,
until the operations of the Buffalo, Rochester & Pittsburgh had failed
to provide this fund, and the entire net revenue of the Delaware & Hudson, now applicable to dividends, should be insufficient to provide for
its payment. Under these conditions, the possibility that the rent
money provided by this lease should ever become a burden upon the
public becomes so attenuated that it may well be dismissed from reasonable consideration. In the lease of the Alabama & Vicksburg R.R. and
the Vicksburg, Shreveport & Pacific RR. by the Yazoo & Mississippi
Valley, and its guaranty by the Illinois Central R.R., approved in
Control of A. & V. Ry. and V., S. & P. Ry., 111 I.C.C. 191, this question was effectively disposed of in favor of the lease. Shifting the interest upon the bonds of the Buffalo, Rochester & Pittsburgh to the income account of the Delaware & Hudson does not increase the aggregate
of the fixed charges of both companies by one dollar, and the public
interest cannot be involved in their being brought together.
The fact that the corporate organization of the Buffalo, Rochester &
Pittsburgh will be preserved intact, is a sufficient answer to the charge
that any of its obligations, with respect to traffic rights of other companies, etc., might not be met.
Last, but perhaps more important than any other question here involved, is the right of the stockholders of the Buffalo, Rochester & Pittsburgh and the stockholders of the Delaware & Hudson to effect this
lease. We have not before us, in this instance, a minority of the stockholders of either of these companies, appealing to us for protection
against the tyranny of a majority, because both are unanimous, that it
is for their common benefit that this lease should be made. In this case
it does not seem that the public interest requires at our hands a destruction of the elementary right, which a seller has to dispose of his property at a price satisfactory to him, and a buyer to make a purchase upon
terms which he considers favorable.
The transportation act was not intended to erect obstacles in the path
of acquisition of control, when desirable, but provides that we approve
such acquisition, when in the public interest; and as the record clearly
shows that the proposed lease would have been fully within the statutory
powers of the applicants at any time prior to the effective date of the
act, certainly we should not, under the plenary power which it confers
upon us, erect barriers in the way of its consummation.
While not having determinative value, it is interestnig to note that
the tentative plan prepared by Professor Ripley for this commission suggests the grouping of the Buffalo, Rochester & Pittsburgh with the Delaware & Hudson. See system No. 7-A, 65 I.C.C. 459.
For the foregoing reasons, I dissent from the majority report, and
favor the proposed lease.
Indications of Business Activity
STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, Dec. 30 1927.
Following the usual Christmas activity, there has been
something of a lull in the retail trade. It was relieved
here and there by special efforts by retailers. In other
words, special sales have been something of a feature,
here and there over the country. In parts of the Northwest, however, the weather has been stormy. Country
roads have been impassable and trade has accordingly suffered more or less in that section. Yet the increased buying power of the farming population of this country is
shown in the fact that in parts of the Northwest the sales
of goods this month have been larger than in the same
month last year. Much needed snows have fallen in Kansas and Texas over a large Winter wheat acreage. One
of the outstanding features of the week is the improved outlook in the textile trades, in which woolen goods seem to
share. Raw wool has recently advanced, partly in response to higher foreign prices at the auction sales during
December. There is a fair demand for leather goods and
prices are firm. One branch of business which is sharply
watched is the automobile trade. The Impression is that
there will be remarkable activity in this branch in the coming year, with sharp competition among big manufacturers
in the matter of cheap yet better cars than the market has
known in the past. It is noticed that closing of automobile
works for inventories is not so general, as it was a year
ago. In Detroit employment is 187,200 against 87,800 at
this time last year, or in other words, there is an increase
over 1926 of nearly 100,000. There are big advertising campaigns under way for the sale of small and cheap cars,
and this niay inure greatly to the benefit later of the steel
trade, not to mention that in pig iron.
Wheat advanced 1 to 2 cents under the spur of a better
export demand. For several days the foreign buying has
been from 1,000,000 to 2,000,000 bushels, mostly Manitoba.
it is true, but including some American hard Spring wheat.
Europe undoubtedly needs wheat from this Continent for
despite its big importations, its stocks have recently either
increased but slightly or actually decreased. Argentina
competition may soon become more active, but it remains
to be seen whether Europe can hold aloof entirely from
American markets. As it is, the exports from North America since July 1 are close to 260,000,000 bushels, an increase
of some 3,000,000 bushels over those of the same period
last year. Wheat is 4 cents lower on cash No. 2 red than
at this time last year. Corn has been lower on December.
but slightly higher on other months, with the weather bad
at times for husking and marketing and with a steady.
though not very large, demand for export. The weather
is now turning more favorable for husking. The export demand is something to be kept in mind, as it may become
more important later on. No. 2 yellow corn is 14 cents a
bushel higher than a year ago. Prices of oats have been,
on the whole, well maintained during the week, in spite of
some liquidation and the lower prices at times for corn.
The movement in the oats crop in the country is small and
stocks at terminal markets are only about half as large
as a year ago. No. 2 white oats are about 10 cents a bushel
higher than a year ago. No. 2 rye is 12 cents higher than
then, and advanced somewhat to-day though there is little
change for the week. The German rye crop is smaller and
of poorer quality than that of last year and It was noticed
that the Berlin market was rising to-day. Latterly there
has been no export business in rye here, but foreign bids
have been advancing and there may be some business with
DEc. 31 1927.]
THE CHRONICLE
3541
Europe in the near future. Provisions have not changed in different sections, according to a survey of the principal
materially in price of late. Pork is $2 a barrel lower than centers. Mills engaged in the fine goods industry, of
a year ago, and lard is %c. cheaper. Cottonseed oil has which New Bedford is the principal center, are reported
to be operating at an average of about 60%. Mills in Fall
shown an upward tendency.
Cotton has advanced under the stimulus of a persistent River, the great print cloth center, are operating at 35 to
demand from spot houses, some "calling" by the mills and 40%. Massachusetts mills are said to have curtailed more
recent activity in cotton goods. The Association of Cot- generally than those in other New England States, while in
ton Merchants issued a statement to the effect that the Rhode Island only one large corporation has closed its
sales of standard cotton cloths during the first 11 months of plant, the Manville-Jencks Corporation having shut down
this year were 98.8% of the production, which is surely a just before Christmas, planning to reopen on Jan. 3. Texvery favorable statement. It helped to advance prices for tile leaders, while declining to be quoted at present, are said
raw cotton. The feeling in the raw and manufactured to have stated that the mills are in a good position to take
cotton trade is optimistic on both sides of the water. Fall advantage of an increasing demand for goods which gives
River and New Bedford are more cheerful and also Man- promise of becoming greater after the first of the year.
chester. There is a cloud, however, on the Lancashire out- Lowell, Mass., wired that the different departments of the
look in the shape of a proposal to increase working time Massachusetts Cotton Mills division of the Pepperell Manfour hours a week and cut wages 121A%. There may be ufacturing Co. of that city, which closed down last Satursome trouble over •this, although it is not likely to occur day at noon, will not resume operations again until Jan. 2,
in the near future. The auctions at Shanghai make a more and during the suspension the annual taking of stock in
favorable showing. There are hopes that if Chin has trade will be made. New Bedford, Mass., wired that the
really turned its back on Sovietism, business in that coun- output of fine, cotton goods, cotton and silk mixtures, and
try will improve with other nations. Rubber for January rayon and cotton fabrics during the final quarter of 1927,
delivery has advanced during the week, but other months has been more radically reduced than is generally realized,
show no change or else are slightly lower. But the feeling having dropped substantially below that of any previous
in the rubber trade, as in so many other branches of busi- quarter since the Summer of 1926. New Bedford mills,
ness, is very hopeful. Ribbed sheets are about 21h cents which included in the membership of the Fine Cotton Goods
a pound higher than a year ago. Pig iron has been dull in Exchange, are said to have been averaging not more than
this section, though at the West there has still to all ap- 60% of normal output during the past three months and
pearance been a degree of activity. Automobile manufac- are now turning out substantially less than they were a
turers have bought pig iron to some extent. Eastern Penn- month ago. There is said to be plenty of new business to
sylvania iron is $3 a ton lower than a year ago. Steel has be had if mills are willing to accept prices below the presbeen in fair demand here and there but as usual at this time ent cost of production. Mills refuse. Salem, Mass., wired
of the year trade for the most part remains in abeyance. that the Naumkeag Steam Cotton Mills there will close
Steel bars at Pittsburgh are slightly lower than a year ago. Jan. 2, reopening on Jan. 9. Charlotte, N. C., advices say
Still it is reported that the railroads are buying cars more that the curtailment period in the Southern cotton mills
freely, so that the total sales of cars for the year will prob- will not last as long as was at first proposed owing to an
ably show some increase over those for 1926. Coffee shows increased demand for cotton goods. No predictions were
little change for the week, a slight rise being the net re- made, however, as to just what extent the curtailment will
sult. The Defense Committee in Brazil seems still to be be carried before there is a return to normal production.
carrying on with a very fair degree of success. No. 7 Rio Greenville, S. C., wired that most coarse goods mills of
coffee is 114 cents lower than at this time last year. Sugar that section will.shut down Friday, Dec. 30, noon, and reIs slightly lower for prompt Cuban than a week ago, but main idle until the following Monday morning. This schedfutures show little or no net change, awaiting further de- ule, it is added, will continue in force until the improvevelopments. The withdrawal demand for refined sugar has ment in the goods market justifies a full time schedule.
increased somewhat. Granulated sugar is about a half cent Four large groups of mills will shut down Friday of this
lower than a year ago, and duty paid raw sugar nearly as week, it was announced. These include the Victor-Monaghan Mills, the Woodside Mills, the Easley Mills and the
much lower.
Broad silks have been in better demand, as far as new Woodworth and Poinsett Mills. Other mills over this secprinted fabrics are concerned. Raw silk was slightly high- tion will also shut down, it is understood. Lynchburg, Va.,
er, and though actual trading was not larger, there has reports that over-production in the textile industry is acbeen more inquiry. Woolens have been firmer. Cotton countable for a short-time schedule which has gone into
goods in general have been stronger, owing to reduced pro- effect at the Lynchburg mill. It is operating from Monduction and a better inquiry. The whaet crop is apparently day until Friday afternoon at 1 o'clock of each week, redoing better owing te snows in the Southwest, but the con- leasing the employees for half a day Friday and all of
dition is low there. Car loadings continue to decrease. Saturday. The short time plan went in effect Dec. 5, and
Building towards the close of the year was only slightly more than 600 men, many of them with families, are seriless than at the same time last year and not a few expect ously affected by the cut. Officials of the company stated
greater building activity in 1928. Chain store sales in 1927 that all of their sheeting mills, of which the Lynchburg
are said to be 30% larger than those of last year. Mail plant is one, are on half-time schedules.
order and department store sales have been larger than
London cabled that it is expected that the Federation
those of 1926. Most crops, and the prices for them, have of Master Cotton Spinners' Association will approach the
shown a marked increase during the year.
other sections of the cotton trade with a view probably to
1
2% in the AmeriThe stock market has on the whole maintained a con- claiming a reduction in wages up to 12/
siderable degree of firmness and to
-day advances were the can and Egyptian cottdn spinning sections and also to inoutstanding feature. The gold exports this month to all crease the working hours from 48 to 52 hours per week,
countries are $71,000,000, the largest since January 1925, although the proposal has not yet been defined. Such a
and call money has risen to 5%%. Trading in stocks is movement, it is said, is likely to meet strong opposition
much larger than at this time last year and yet it would from operatives' unions.
appear that there has been less selling for tax reasons
December sales of Montgomery, Ward & Co. will probthan was the case last year. The feeling of optimism in ably establish a new high record for any one month in the
trade generally is the signal feature of the business times, history of the company, according to advices from Chicago.
and it does not appear to be merely based on hope. Back Sales so far during the current month show a gain over
of it is a growing belief that a prolonged period of under. the corresponding period of last year and the indications
buying is to be succeeded by a normal demand for com- are that last year's sales of $23,103,429 which was the best
modities of all sorts not by any means excluding textiles previous record will be exceeded. Three chain stores listed
In which the activity this month has been something entirely on the New York Stock Exchange are, it Is said, closing
unusual. Bonds have latterly been firm, with some fall- 1927 with the highest earnings in their history. These coming off in transactions, but the investors in securities, it panies are F. W. Woolworth Co., S. S. Kresge & Co. and
is believed, will receive the largest interest and dividend S. H. Kress & Co. The Christmas business of the P. W.
Woolworth stores broke all records, it is stated. Retail
payments this year in the history of Wall Street.
Boston advices said that the extent of the current cur- sales of motor cars by General Motors dealers to consumers
tailment of production in New England cotton mills varies in November totaled 80,539 compared with 101,729 in No-
3542
THE CHRONICLE
vember last year and 60,257 in November 1925, according
to Alfred S. Sloan, Jr., President of the General Motors
Corporation.
General rains on the 28th inst. occurred in the Ohio,
Missouri and Mississippi Valleys, West Gulf States and in
the North Pacific States and rains and snows in the upper
Lake Region, the Plains States and at scattered points in
the Rocky Mountain and Plateau regions. Temperatures
rose quite generally from the Mississippi River eastward
and fell decidedly over the Canadian Northwest, Montana
and South Dakota. It rained in New York on the 29th inst.
after having been fair and mild on. the 28th.' In New York
on the 29th inst. temperatures were 40 to 50, in Boston 50
to 54, in Buffalo 42 to 44, In Montreal 40, Philadelphia
50 to 52, Chicago 40 to 44, Cincinnati 52 to 56, Cleveland
46 to 52, Detroit 44 to 48. Milwaukee 32 to 40, Kansas City
32 to 44 and Minneapolis 6 to 18.
Deep snows have prevailed in England, blocking roads
and isolating towns. Mails have had to be delivered at
times in army tanks. The inhabitants of many parts of
Europe are suffering from the long continued cold and
heavy snows. So severe is the Winter in Transylvania
and Poland that hunger-mad wolves are attacking the
people, and some lives have been lost among the peasants
of Poland. Heavy snows and a cold wave and gales have
halted travel along the English Channel, the Atlantic and
the Mediterranean. Twenty-five vessels were stormbound
at Havre. Tugs were kept busy helping damaged vessels
to port. The Aquitania was held up 11 hours by a great
storm in the English Channel. In Belgium a blizzard followed a Northeasterly gale. In Western Belgium the appearance of wolves and their attacks on cattle terrorized
the inhabitants. But the Danube ice block broke and
steamers got through with grain cargoes. There was a
great storm off Morocco with loss of shipping and in Northern Morocco torrential rains fell, causing floods. In Japan
a blizzard razed 500 houses, followed by nation-wide fires,
causing much distress.
To-day it was cloudy and foggy here and temperatures
were 40 to 48, In Chicago in the past 24 hours it was 30 to
44, in Cincinnati 42 to 56, in Cleveland 42 to 52, in Milwaukee 20 to 40, in St. Paul 8 below to 18 above. The
forecast here to-night Is cloudy followed by rain or snow
and colder to-morrow.
Federal Reserve Board's Summary of Business Conditions in the United States—Continued Decline
in Industrial Activity.
"Industrial activity and freight car loadings declined
further in November, while retail trade showed more than
the usual seasonal increase." says the Federal Reserve
Board in its summary of business conditions in the United
States, issued Dec. 27, in which it goes on to state:
The general level of wholesale commodity prices after advancing for
four months remained practically unchanged in October and November.
Production.
Output of manufactures and minerals was reduced in November, and the
combined index of production, after adjustments for customary seasonal
variations, fell below the 1923-25 average for the first time since 1924. The
largest decline was in the output of automobiles owing largely to preparation for production of new models. Iron and steel production has also
declined further and in November was the lowest since 1924. In December,
however, inquiries for iron and steel increased.
Textile mill activity was slightly curtailed in November but continued at a
higher level than in previous years. There were decreases in the production
of coal, building materials, and leather and shoes. Building contract awards
showed seasonal declines in November and the first two weeks of December
and were slightly smaller than in the corresponding period of last year.
The total value of about 50 crops in 1927 is estimated by the Department
of Agriculture at $8,430,000.000, an increase of $635,000,000 over 1926.
The greatest increases in value were shown for cotton, corn, barley, and
oats, while the largest decrease for any individual crop was shown for
Potatoes. The physical quantity of production of the 17 principal crops
was about 2% leas than last year but 3% above the average of the last 10
years.
Trade.
Retail trade increased slightly more than is usual in November. compared with a year ago, retail trade of department stores, mall order houses,
and chain stores was larger, while wholesale trade continued in slightly
smaller volume in nearly all reporting lines. Freight car loadings declined
during November and in the early part of December were smaller than in the
corresponding period for the past four years. There were large decreases in
loadings of all classes of commodities.
(Vol.. 125.
Bank Credit.
Between the middle of November and the middle of December total
loans and investments of member banks in leading cities showed a considerable increase, reflecting continued growth in the volume of loans on
securities and in the banks' investment holdings. In the same period loans
chiefly for commercial purposes which reached a seasonal peak in October,
showed a further slight decline.
At Federal reserve banks the seasonal increase in currency requirements
and the continued demand for gold for export during the four weeks ending
December 21 were reflected in a growth in member bank borrowing. At
the end of this period the total volume of reserve bank credit in use was
larger than on any other date in the past six years.
Somewhat firmer conditions in the money market in December were
reflected in increased rates on call money. Rates on prime commercial
paper and bankers' acceptances remained unchange c during the month.
Guaranty Trust Co. Finds Sound Economic Factors
Justifying Expectation of Good Business in
1928—Redistribution of Gold Expected to Work
to Advantage of American Business.
A review of business developments in the United States
during the year now drawing to a close shows that the generally prosperous conditions of the last few years have continued.to prevail and that the underlying economic factors
remain sound, justifying the expectation of continued good
business in 1928, states the current issue of the Guaranty
Survey, issued Dec. 27, by the Guaranty. Trust Company of
New York. The survey continues:
"While it would be rash to predict. that trade levels will equal or surpass the peak figures recorded in 1926, a state of sound prosperity does
not consist in the establishment of a continuous aeries of new high records.
In fact, it is to be hoped that no such development will take place, since
unduly swift expansion inevitably entails reaction later on. The best
Interests of the business community are served by a slower and more stable
rate of progress.
Moderate Recession in 1927.
"The past year has been characterized by a moderate recession in general
activity from the record level of 1926. A number of factors have contributed to this movement. Perhaps the most important is the persistence
of low purchasing power in certain agricultural districts, and particularly
the unsatisfactory crop returns received by several important farm
groups a year ago. Business has also experienced an unusual number
of obstacles this year in the form of climatic disturbances. By far the
most severe, of course, was the disastrous flood in the Mississippi Valley,
the influence of which appears to have been generally underestimated as a
factor in the reaction of the last few months. The suspension of operations during a large part of the year by the largest unit of the motor
industry has undoubtedly played an important part in restricting general
business activity, as has the economic loss occasioned by the prolonged
strike in the bituminous coal fields. For the rest, the moderately lower
rate of trade in 1927 represents, no doubt, a natural reaction from an
untenably high level.
"These considerations suggest several factors that will tend to quicken
the tempo of business during the coming year. First and most essential
is the notable improvement that has taken place in the position of agriculture. The crop season has resulted in much larger returns to most
producers than seemed possible early in 1927, and the greatest recovery
has been witnessed in the Northwest, where conditions had been conspicuously discouraging since the deflation of 1921. The restoration of
normal conditions in the autconobile industry may be expected to exert a
favorable influence. The labor situation is unusually free from signs of
impending trouble. And the recent decline in industrial operations
has undoubtedly strengthened the statistical position of many commodity
markets.
Consumers' Purchasing•Power Unimpaired.
"But the most important thing to be considered in arriving at a conclusion as to the prospect of business in 1928 is that the fundamental factor
underlying the sustained prosperity of the last few years—that is, the
wide diffusion of purchasing power among the masses of the people—
is still present. This condition depends primarily on two things: the
level of wages and the volume of employment. In neither of these respects has there been any essential change during the past year. Wages
remain at the peak, and employment is very large. The reduction in working forces due to the recent industrial recession has not been serious and
is not likely to be of any great duration.
"This widely distributed purchasing power, combined with the conservative merchandising policies generally followed by wholesale and retail distributors during the last four or five years, apparently accounts for the
sound conditions now obtaining in the markets for most commodities. The
absence of any sign of price inflation and the continuance of mercantile
inventories at low levels are pheomena that are rarely encountered after
several consecutive years of high business activity. The conservatism that
has contributed so largely to these results is still evident, as are the large
industrial plant capacities that have made possible a ready adjustment of
output to thanes in demand, and the notably efficient transportation service provided by the railroads, permitting the maintenance of a close relationship between output, distribution and consumption in the face of
an unprecedented volume of general business.
Possible Sources of, Difficully.
"The very conditions that have combined to produce and sustain prosperity have in some cases contained elements of weakness. Excessive plant
capacities, whilc contributing immeasurably to the stability of inventories and price levels, have represented a severe financial burden which
could be lessened only by the reduction of overhead cost per unit of
product through a large volume of sales. Hence, the increasing emphasis
on profits through heavy turnover rather than through margins between
costs and selling prices. Competing producers, in attempting to maintain
volume at all costs, have in many cases reduced these profit margins very
Prices.
The general level of wholesale commodity prices as measured by the nearly to the vanishing point, and the tendency has been furthered by high
index of the Bureau of Labor Statistics, after a continuous advance since wage levels. The result is apparent in the general decline in industrial
early in the summer, remained at practically the same level in November profits during the past year and in the large number of business failures.
"The effects of the expansion in the amount of banking funds loaned
as in October• Chan es were relatively small in all gr•oups increases
occurring in foods, and hides and leather, and decreases in farm products, against security collateral are appazmt in the markets for stocks and
textiles, fuels, and building materials. In the first two weeks of December, I bonds. The high level of security prices, particularly stock prices, and
prices of wheat, cattle, hogs, cotton, pig-iron, and soft wood lumber de- in some degree the record-breaking totals of new security offerings, indirate that our large gold stock, which has been successfully diverted
.31ined while those of silk, woolen goods, hides, and sold° ether advanced.
DEC. 31 1927.]
THE CHRONICLE
from commercial inflation, has found its way into another part of our
business organism. As long as the basis for credit expansion remains as
broad as it is now, there is little likelihood of sever reaction. Bt the
present situation must be recognized as essentially abnormal, since it is
based on a special and probably temporary condition—namely, the presence of a disproportionately large part of the World's gold supply in this
country.
"It is as well to recognize that the redistribution of the gold stock is a
necessary readjustment that must be faced sooner or later; and that, in
the meantime, the less effect the gold is allowed to produce in our financial markets, the less difficult the readjustment will be. In the final
analysis this redistribution will, of course, work to the advantage of
American business, since it is an essential part of the foreign economic recovery on which our own enduring welfare must ultimately depend. The
addition of the gold to monetary stocks abroad will enlarge the basis for
credit expansion, and thereby enhance the purchasing power of our foreign
customers. It will also contribute to world-wide monetary stability, from
which America, along with every other nation, will derive the benefits.
And it will contribute to general industrial and trade revival in Europe
and elsewhere, which will inevitably be reflected in our own economic
position. It is, therefore, much better for all concerned that the surplus
gold which is not required for legitimate credit purposes in the United
States should be transferred to foreign countries, where it will operate
to stimulate the demand for American products, than that it should remain here, where it constitutes at least a potential danger."
Gains in
Business in 1928 Forecast by National Bank
of Commerce in New York.
"Notwithstanding the prevalence of rather dull conditions
during the closing weeks of 1927, there should be a gradual
acceleration of business as spring approaches," says the
National Bank of Commerce in New York in reviewing the
factors having a bearing on conditions in 1928. The bank
observes that "interest now centres in the extent of the
prospective gains, whether they will be gradual and largely
seasonal in character, or whether they will be greater than
this, with the possibility perhaps of new high records in some
lines of industry and trade." It goes on to say in part:
There is an extraordinary combination of favorable factors. Among the
more important are:
Prospect for stable money at moderate rates.
Indications that building and construction will continue in large volume.
Removal from the automobile industry of the handicap of uncertainty
as to the Ford plans and indications that increase of output will be general
after the turn of the year.
Larger purchasing power on the part of farmers as a result of better
conditions in staple agricultural lines.
Adjustment of manufacturing output to demand during the latter part
of 1927. and consequent avoidance of accumulation of stocks of goods.
Likelihood of fuller employment and larger payrolls ahead. While this
is of course dependent on the foregoing factors, it constitutes In itself a
favorable Influence, because it is the basis of increasing purchasing power
in industrial districts.
Constant technical progress designed to lower costs and widen markets.
Steady betterment in conditions abroad, as evidenced by return of several
countries to some form of gold or gold exchange standard during 1927, with
fairly stable currency and exchange in some others where the gold standard
Is yet to be established.
The presence of so many influences for better business has led to the
apparent belief in some quarters that the increase in industrial and commercial activity which is imminent may assume boom proportions. Extraordinarily active and profitable business is usually the result of a simultaneous demand for many classes of goods in excess of supply. This demand may have its origin in some catastrophe such as war, or in the shortages which frequently are found to exist after severe business depressions.
The opening up of extensive new markets by means of invention, or the
lowering of costs in major industries by means of technical improvements,
for a time expanding demand faster than it can be saturated, may likewise
cause a pronounced acceleration of general business as the effects are felt
through all industry. A sharp rise in the general level of prices and wages,
itself a result of complicated factors, also is likely to result in a rapid expansion of business. Many enterprises under such circumstances secure
conspicuously wide margins between costs and selling prices, and in consequence are disposed to expand operations, while consumers increase their
purchases on the apparent increase in their individual incomes.
Some of these conditions might develop in 1928, but it seems unlikely at
present. No good grounds are apparent for the belief that there are
Important shortages of goods in relation to actual or potential demand.
Costs are constantly being lowered and new products are being turned out
as a result of technical progress, with widening markets as a result, but at
present no startling development is in sight to offer promise of wide appeal.
A general rise in prices apparently could occur only as a result of shortages
of goods, increasing gold production, or sharp expansion in the worldwide volume of credit, and none of these conditions seems imminent.
While there is a singular absence of unfavorable factors in the situation,
some influences are at work definitely militating against boom conditions.
Capacity of most industries in the United States is such that any pronounced expansion of demand would quickly be met by increased output.
In this connection, also, the question arises as to whether the volume of
installment credit is not at approximate stabilization. Up to a certain
point it was a factor of great importance in expanding demand for many
classes of products, but it is obvious from its nature that it must eventually
assume the character of a revolving credit increasing in the aggregate only
as population increases or as changes occur in the earning power of large
sections of the buying public. Foreign competition in our export markets
Is another factor worthy of consideration, and while there is a tendency to
exaggerate the effects of politics, many will not forget that a Presidential
election is in the offing. As far as the course of events in 1928 can now be
foreseen, the prospect is for stability of volume, with keen competition and
no abatement of the necessity for all-round efficiency both as to production
and merchandising,
Survey of 1927 By F. 0. Wetmore of First National
Bank, Chicago-----Looks For Maintenance of Business on Present or Higher Level vath Incoming
Year.
Viewing the outlook for the coming year, F. 0. Wetmore,
Chairman of the First National Bank of Chicago and the
First Trust & Savings Bank, says:
3543
There is little or no evidence of speculative tendencies in the commodity as distinguished from the security markets. All the reports indicate that merchandise stocks are low and that, compared with recent
years, the same holds true of prices. This has been the position of business
during the last few years as a result of which a slight increase in demand
for commodities is quickly reflected throughout our industrial system.
It is a cafe position for business to find itself in and the large purchasing
power created by a bountiful harvest should maintain business on its
present or higher level at least during the first few months of 1928.
Mr. Wetmore also, under date of Dec. 31, presents a
survey of 1927, his comments thereon being as follows:
At the end of last year it was generally predicted that we were likely
to have a recession in business. To some extent this took place, which
is not surprising for it must be remembered that in the year 1926 production in nearly all lines exceeded that of any other year. Retail business was hampered in most parts of the country by unseasonable weather.
Production in many lines was well maintained though there was considerable complaint about profits, which should be a warning to many to
make a careful analysis of expense accounts.
Agricultural conditions proved to be much more satisfactory than was
thought at one time would be the case. Favorable Fall weather saved a
good part of the corn crop and prices have been more satisfactory than
for a loms time. Certain parts of the South suffered severely from the •
Misisissippi floods. The cotton crop is much smaller than last year with
a consequent reduction in exports but an improvement in prices. Prices
In the livestock industry have averaged well this year and, generally
speaking, prices of agricultural products have been more favorable so
that in recent months their price indices have approached the level of all
commodity prices. This increased buying power on the part of our
rural population will prove beneficial to many lines of industry.
The leather industry which has suffered from almost continuous depression since the war seems at last to be on the road to recovery. The
automobile industry, as well as building, for both of which unfavorable
predictions were made at the end of last year, have held up rather well
and it seems to be generally expected that the same will prove true in
the coining year. Although there has been a substantial reduction in
the earnings of the railroads, this condition has been promptly met by
substantial savings in expense accounts with the result that the net earnings promise to be quite satisfactory.
The liberal financial assistance given to Europe and other countries
during the year 1927 has been absolutely essential to their welfare and the
maintenance of our exports. It has been accompanied by a wise policy
on the part of our Federal Reserve System, which by its open market
operations has succeeded in maintaining low money rates here and thus
has reversed the flow of gold and avoided a further depletion of the gold
reserves of the European and other central banks of issue. Our surplus
of gold is larger than is necessary for our own needs and many millions
of it should be exported for the purpose of stabilizing foreign credit conditions, the desirabiliity of which has been demonstrated many times in
recent years.
There has been a large expansion of bank credit during the year, due
in part to speculation. This has been true, not only of New York, but of
other places as well. The volume of commercial business has been smaller
than last year and thus there have been released large amounts of loanable
funds; also our government has made large repayments on account of
its indebtedness and our people have made very substantial savings which
are available for investment—all these factors have led to very easy
money which, in turn, has caused speculation of various types and forms.
Periods mall as these are most trying to a banker and although much criticism has recently been directed at the constantly increasing volume of
loans made at money centers on stocks and bonds, nevertheless, the fact
is that the careful banker will turn in such times as these to this form
of investment as being the most liquid that he can secure, outside of
self-liquidating commercial paper of which there is not now sufficient
volume available to meet the demand. At the same time and in view of
the continuing advance in prices of stocks, caution and distrimination
must be exercised. The high price of domestic stocks and bonds implies
also, naturally, that the return on the capital invested in them is relatively low. This is one of the reasons for the attractiveness of foreign
securities to so many of our people.
Tax Situation.
The tax situation is one of great interest to all classes of our people.
The immediate effect of direct taxes may be felt by relatively few, but
the prosperity of all is contingent, in part, upon the fiscal policy of our
various governmental agencies. The national government has set an
excellent example in this respect. By economy and wise leadership our
national debt has been reduced to about 18,000 million dollars from the
high point when it amounted to about 26,600 million dollars. As President Coolidge, in his annual message to Congress, showed the annual
saving in the national budget in interest payments on the public debt
between 1925 and 1929 will amount to 212 million dollars. We favor the
continuance of the Administration's policy in regard to debt reduction.
We believe it to be sound and one that should be especially pursued in
times of prosperity. Thereby business, on which all taxes must eventually
rest, is relieved as speedily as possible from the burden of taxation. The
taxes levied by the State and local governments have continued to increase. Some of this is due to improvements in our roads and in the increase of schools and other conveniences and necessities which the higher
standard of life of our people demands. It is easy enough to inveigh
against increased taxation but it must not be forgotten that we demand
much more from our government than was true in the past and none of
us would wish to return to the condition of our forefathers when taxes
were low but the amenities of life, which everyone new expects as his birthright, were lacking. There is, of course, a point beyond which this increase of taxes should not go and with the large amounts of money now
entrusted to our public officials, it is more than ever necessary for the
voters of the country to select the right type of people for public office.
Banking has had another satisfactory year, owing again largely to the
size of the turnover and because losses have been few. There have been
»microns failures among smaller banks largely due to poor loans carried
over from the deflation period. In other respects our banking system is
on a firmer ioundation than ever before. In our statement at the end of
the year 1925, we expressed the hope that Congress might make provision at an early date for the renewal of the charters of the Federal
Reserve banks. The enactment of the McFadden Act has met this need
by renewing the charters for an indeterminate period of time and thus
there is less liklihood that questions relating to the Federal Reserve system will be involved in political controversies.
3544
THE CHRONICLE
Henry L. Doherty on Business Prospects for 1928Looks for Year Similar to 1927.
Henry L. Doherty, President of the Cities Service Company in discussing the business prospects for 1928 says:
"I see no reason to expect any great gain in the present
business conditions which are as a rule eminently satisfactory, nor do I expect to see any recession from these
conditions. In my opinion, we have every reason to expect
another year very similar to the one we have just passed
through." In his comments Mr. Doherty also says:
There has not been a single year in my recollection during the last quarter
of a century when there were as many opportunities to discuss the factors
which go to make or unmake favorable business conditions than for the
coming year. In other words, there have been at times enormous factors
that might bring, in some cases, great prosperity or great adversity; but
while these factors were of great importance, they were not as numerous
as the ones that might be talked about at this time.
It would be an easy matter to fill a whole newspaper page with discussions
pro and con if the writer was willing to disregard all sense of relative importance. To discuss one feature in particular would make it necessary
to discuss some other feature of equal or relative importance, and this, in
turn, would require the discussion of one or a dozen other features that
have some bearing on the business conditions of the coming year. However, none of these matters are of any great importance nor will they play
any important part.
In the past a period of so-called over-prosperity has, as a rule, been
bound to bring about the corresponding reaction. Viewed by many we
have had a great prosperity in the markets for bonds, stocks and other
forms of securities. This, however, has been largely a matter of reaction
from years of depression plus also the natural increment of increase of
value that should have occurred from year to year.
During the period of the war and the readjustment that occurred during
the succeeding four or five years, we were working under abnormal conditions and abnormal interest rates. Since then we have been working
toward normal conditions and while some may think the pendulum has
swung too far. nevertheless, I am inclined to think that we have not yet
found the natural level and until we do, we can expect further appreciation
in the value of securities; or stating the same thing in other terms, we can
expect even lower interest rates.
There was a time when a Presidential election was bound to throw the
Country in to almost a state of panic and this fact has not yet entirely disappeared from the minds of the older business men. When the tariff was
a live issue it brought about what we have since termed a "buyers' strike."
for everybody feared to have a stock of goods on hand that represented the
inflated value of the then existing tariff should it be lowered, and there
was always plenty of time to restock before the new tariff schedule could
be put into effect.
To-day there is no occasion why the approach of our Presidential election
should cause even a ripple in our business conditions except the lingering
memory of what used to occur and what many people knew was apt to
happen but did not know the cause for it.
(VOL. 125.
From a financial standpoint, the United States Government had successful year. The gross debt was reduced approximately $1,000,000,000.
Brookmire's
Business Outlook for 1928-Definite
Improvement Looked for.
A definite improvement is coming in business, the Brookmire Economic Service, Inc. says in a forecast of fundamental conditions. They believe business volume during
the first half of 1928 will show definite improvement over
the volume of the second half of 1927 but do not now anticipate that it will reach up to the level of the first half of 1927.
In continuation, the economists state:
At the same time we expect an advance in commodity prices which not
immediately but certainly before the end of the spring will produce an
Increase in business profits. At present the price increase has largely been
confined to raw materials. When this finds its way into semi-finished and
fully manufactured articles, corporation reports will reflect these changes
by increases in profits.
For the present the security markets will continue to be highly selective.
The eftect of the gold market and of rising commodity prices must be
watched keenly to determine the trends in the markets. We do not at
present look for any material change in the character of these markets
during the first half of the year.
The outlook for the second half is much less certain. Unless contingencies develop which are not now in sight, we would anticipate a continuation
of the upward trend in business and industrial stocks with a very considerable probability of a down-turn in the prices of bonds and possibly of
railroad stocks also.
Wholesale Trade in New York Federal Reserve District
Below That of Year Ago.
"Sales of reporting wholesale dealers in the New York
Federal Reserve District remained smaller than a year ago
in a majority of lines, but the declines were less than in
October, and in several instances appeared to represent
lower prices, rather than a reduction in the actual quantity
of goods sold. The average decrease from November of
last year in dollar sales was 4%,as compared with reductions
of 11% in October and 8% in September." The Jan. 1
"Monthly Review of the Federal Reserve Bank of New York"
from which we quote, goes on to say:
Stocks of groceries, drugs and hardware remained smaller than last year.
Stocks of cotton goods and diamonds and jewelry were somewhat larger,
however, and shoe stocks continued to be much larger than in 1926. The
prcentago of outstanding accounts collected during the month was somewhat higher in most lines than in November of last year.
Per Cent of
Per Cent Change Per Cent Change
Accounts
Not. 1927
Nov. 1927
Survey of Business by Chatham Phenix National Bank
from
from
Outstanding
Oct. 31 collected
Nov. 1926.
Oct. 1927.
& Trust Co.-Country Begins New Year With
Stock
in November
Stock
Largest Accumulation of Fluid Capital Ever
Net
End of
Net
End of
Recorded.
Sales. Month. Sales. Month. 1927. 1926.
Commodity74.9
73.6
-0.4 +7.2 -4.2 -9.3
The Outline of Business, published monthly by Chatham Groceries
33.4
34.9
Men's clothing
-40.5
____ -3.6
Phenix National Bank and Trust Company of New York Women's dresses
-30.5
____ -9.4
--in its January number states:
Women's coats and sults
-51.5
____
+2.4
40.8
46.4
-11.5 -8.8 -6.5 +11.9
The United States begins the New Year with the largest accumulation Cotton goods-Jobbers
+8.6
____ +10.2
offluid capital ever recorded, it is indicated by data collected by the Ameri- Cotton goods-Commission
49.2
Silk
50.3
goods
-1.4
can Bankers Association.
48.8
45.6
-9.1 -1.6 -15.0 +44.9
More than $1,368,000,000 was added during 1927 to the aggregate of Shoes
40.3
48.0
-27.2 -6.1 -0.5 -11.2
savings deposits in banks and trust companies of the United States, the Drugs
46.1
46.1
-6.1 -3.7 -4.4 -13.7
Association announced following a canvass, covering the entire country. Hardware
+0.6
__
_ -The canvass, which required about five months to complete, showed that Machine tools.
72.9
+18.682.0
the aggregate of savings balances was $26,091,000,000 on June 30 1927 Stationery
Paper
against $24,723,000,000 on the same date of 1926.
24.4
2
+
1
+3
5
1.19
4
71
6
28
3.0
7 "
T5
8..8
81
The number of individual savings accounts rose to 48,354,784 in 1927, Diamonds
+3.71
-10.91
according to the association. In the last seven years the number of savings Jewelry
depositors has more than doubled.
Weighted average
-4.1
51.1
-16.4
52.8
The number of savings depositors is now nearly three times as large as
the number of automobile owners. It is further shown that the ratio of
*Reported by the National Machine Tool Builders' Association,
savings accounts to population is 1 to 2.4. That means that there are more
savings depositors than there are families in the country.
James J. Phelan of Hornblower & Weeks on Outlook
Bank deposits climbed in a line parallel to wage levels, it would appear
Whether the increase in bank deposits is a result of higher wages is a matter
for 1928.
of dispute. But it is clear that wages during 1927 were probably higher
Referring to the year 1927 as having been, generally, "a
than in any other year. The U. S. Department of Labor computed an
index showing the trend of union wage scales. This index stood at 140.9 pretty good year," James J. Phelan of Hornblower & Weeks
for 1927 compared with 133.4 for 1926. The year 1913 was used as the
says he "cannot help feeling that 1928 promises to be subbase of 100 points.
Food prices fell off during 1927 as wages and savings increased causing stantially better." Mr. Phelan's review follows:
an advance in what economists describe as "real wages." This means
On the whole, the year just closing has in general been a very good
that the purchasing power of the dollar increased so that the average family, business year throughout the entire country. To be sure, In places it has
after satisfying its immediate needs, had a larger amount of funds available been somewhat disappointing. In volume the net results are somewhat
for the purchase of luxuries.
less than in 1926, which was the banner business year for all time in this
Retail trade during 1927 may equal that of 1926 according to the indica- country. The year 1927, however, was in general in almost every respect
tions of preliminary retruns, although this conclusion may not be definitely better than that of 1925, which was one of the best years in a business way
stated until final reports are available, showing the amount of buying that the country had experienced.
during the Christmas season.
Our country is still, and will continue to be for many years to come,
Construction activity held up during 1927 and it is not improbable that what might be termed largely an agricultural and industrial country, our
the value of building projects inaugurated in this year will surpass that primary dependence being that of agriculture. It thus follows that as our
of 1926, although actual construction in 1927 will probably fall below that crops may be plentiful or small, industrially we progress or recede. For
of the previous year.
1927 crops in general have been bountiful, or of just the right size to fit
The attention which Was focused on flying by the events of 1927 is taken Into the best economic results. In the aggregate they will show an increased
by many as marking the beginning of a new industry. Capital has lost purchasing power of between $800,000,000 and $1,000,000,000. This
some of the shyness which it formerly manifested for the manufacturer of increased purchasing power has already begun to assert itself in the stimuairplanes and many plants are in operation throughout the country. The lation of business, but, conceivably, it will function more and in a bigger
change of attitude is believed to be the result of the several successful trans- way during the coming new year. Big crops at fair price levels mean induscontinental flights and to the stable performance of the U. S. Airmail trial activity, and industrial activity will mean a continuance of labor well
service. Postmaster General New announced that 2,482.865 miles of employed at high wages. Add to this a large credit supply at low-in fact,
declining-rates, inventories not at all out of proportion with the consumpflight were completed by the planes of the airmail service during 1927.
American foreign trade during 1927 is revealed in a favorable light when tive demand, and you haves picture that seemingly bespeaks a prosperous
compared with that of the preceding year. Merchandise exports in the business year for 1928. I have seen it stated that some economists have
first part of 1927 were much greater than in the corresponding period of suggested a possibility, if not an absolute prediction, that 1928 will be a
1926
boom year. Personally, I hope this will not eventuate. Booms Invert-
DEC. 31 1927.]
THE CHRONICLE
ably lead one to think of extravagances, and as all extravagances carry with
them finally their penalties, so it is that booms invariably are followed by
the penalty of collapse. It is better that we go along the "even tenor of
our way" and make progress slowly but continuously. This we have
within our grasp under the conditions with which we are entering the year
1928. In fact, we have, as I see it, all the fundamental conditions that
should make the year 1928 comparable with the year 1926, if not better, if
we avoid overindulgence, extravagance and the attempt to do too much.
I say this even in the face of the realization that 1928 is a so-called Presidential year, a period during which some are a bit fearful. In the final
analysis, looking back over a period of several Presidential years, have they
not been frightened by the shadow rather than the substance? Be this
as it may, I think all will agree that the electorate of this country are not
going to be led away from the excellent conditions under which we are living
by taking any chances with a radical. In other words, I feel that neither
party can afford to nominate at the head of their respective tickets any
man who could not be considered sound and conservatively progressive.
Wholesale Trade in U. S. as Reported by Federal Reserve Board-October Sales Smaller Than Any
Time Since 1924.
Reviewing wholesale trade in the United States during
October 1927, the Federal Reserve Board says:
Distribution at wholesale, as measured by the Federal Reserve Board's
new index of wholesale distribution, declined in October and was 3.4%
smaller than a year ago. Sales in October were smaller than at any time
since tho summer of 1924, when allowance is made for the usual seasonal
changes. Declines between September and October occurred in all the
linos included in the index except meats, the largest declines being in
sales of clothing and shoes. Compared with October a year ago, sales of
groceries, dry geode, women's clothing, hardware, and furniture declined,
while those of meats, men's clothing, boots and shoes, and drugs increased
slightly.
(Percentages showing in detail changes in the amount of sales by lines, in
October as compared with September of this year and October of last year
are given in the table*
CHANGES IN VALUE OF WHOLESALE SALES.
Percentages based upon lines included In new index of wholesale distribution,
which is adjusted for seasonal variations.
Use.
Percentage of Increase (+)or
Decrease(-) in Sales in
October 1927 Compared with
September 1927. October 1926,
Groceries
Meats
DU goods
Men's clothing
Women's clothing
Boots and shoes
Hardware
Drugs
Furniture
Total
-3.5
+1.7
--5.9
--11.9
--19.4
-12.8
-4.5
-2.2
-7.8
-4.6
+1.4
--5.1
+1.9
-22.0
+0.9
-3.2
+2.8
-4.3
-5.3
-3.4
Among the additional lines from which data are received but not included
In the above table, domestic sales of agricultural machinery and farm implements were 43% larger than in October of last year, according to reports
received by the Federal Reserve Bank of Chicago from 81 manufacturers.
Orders for machine tools placed with firma reporting to the National
Machine Tool Builders' Association were 32% smaller than a year ago.
Stocks of Wholesale Firms.-Inventories of merchandise stocks carried by
reporting wholesale firms were in about the same volume at the end of
October as in September. Compared with a year ago, Inventories continued smaller in all lines except boots and shoes.
Index numbers of the dollar value of sales in nine leading lines of wholesale distribution adjusted and unadjusted for seasonal variation, included in
the Federal Reserve Board's new index of wholesale distribution are given
below. Percentage* showing changes in sales and stocks by lines and by
Federal Reserve districts are given further below. Indexes comparable
with those which have been published in the past have also been prepared
and may be obtained upon request to the Federal Reserve Board.
WHOLESALE DISTRIBUTION BY LINES.a
(Index numbers, based upon dollar value of sales. Monthly avge. 1923-1925=
-100.)
Total
Men's We- Boots
Nine Oro. Meats, Dry Cloth- men's and Hard- Drugs. AVLines. ceria
Goods. ing. Cloth'y Shoes ware.
Metre.
Adjusted for seasonal ariati ti-192697
July
98
110
90
88
54
118
100
105
105
97
August
97
114
96
101
45
108
99
106
102
September_ 100
100
117
97
97
70
103
101
109
103
October
96
94
110
90
83
69
90
97
108
101
November
96
98
116
99
82
66
99
102
111
106
December_ 95
96
113
89
87
66
94
100
107
100
1927January
94
93
113
83
88
77
112
92
104
100
February__ 95
93
112
87
101
75
108
93
103
96
March__
96
98
108
90
106
67
97
98
106
96
94
Aprll
95
111
86
90
68
94
94
108
95
May
95
97
109
87
90
69
110
91
104
93
June
93
98
104
88
94
62
90
92
106
100
July
95
91
102
88
94
79
134
92
105
104
August
100
97
109
102
10.5
72
111
97
112
106
September- 96
94
109
91
96
66
104
99
114
104
October
91
90
111
85
84
54
91
94
111
96
Unadjusted for Seas.avian on192691
July
99
112
83
75
28
95
98
100
86
August
107
98
118
117
163
62
119
100
103
104
September- 117
109
125
122
148
101
126
109
1113
117
October.- 111
107
123
104
105
111
113
109
125 120
November_ 97
102
112
98
61
45
104
100
112
111
December _ 84
94
106
71
44
42
76
93 100
94
1937January._ 87
86
113
78
68
71
92
82
102
88
February
91
81
107
88
128
95
85
82
94
96
March... _ 103
94
104
95
144
108
111
102
117
109
90
90
104
Mull
76
88
64
100
96
108
96
May
87
95
109
76
54
39
111
93
98
88
101
June
87
106
78
48
27
85
96
99
68
July
88
92
104
81
82
43
107
90
100
65
August_ _ _. 111
98
111
125
172
98
122
98
110
109
September. 112
102
117
113
95
146
127
106
122
118
October... 107
125
102
99
105
87
114
105
128
115
a The new index of who esale distribution is described in the forthcoming Feelers
Reserve "Bulletin" for December 1927, and index numbers by lines from January
1919 to date are published in that bulletin.
3545
CHANGES IN SALES AND STOCKS OF WHOLESALE FIRMS BY LINES
AND BY FEDERAL RESERVE DISTRICTS.
Increase(+) or decrease(-) per cent.
Sales-October 1927
a Stocks-October 1927
Compared with
Compared with
Line and Federal
Reserve District. September 1927. October 1926. Septembee 1927. October 1926.
Groceries-United States....
+0.0
-4.7
+13.4
-6.3
BostonDistrict._
+1.8
-8.5
+3.6
+0.4
New York District
+6.0
-7.8
+6.6
-8.4
Philadelphia Dist.
+6.3
-3.5
+9.2
-6.2
Cleveland District
+0.2
--7.3
+6.1
-3.4
Richmond District
+0.05
-4.8
+10.3
+1.2
Atlanta District__
-5.5
-14.8
+1.8
+5.3
Chicago District__
-4.1
-5.7
-16.2
+5.8
St. Louis District_
-2.4
-11.7
+10.9
-6.1
Minneapolis Dist_
-5.0
-6.0
+8.0
+9.0
Kansas City Dist+2.8
+0.2
-3.0
+3.6
Dallas District--9.4
-1.8
-1.4
+8.8
San Francisco Dist
+4.0
-0.1
+1.8
-8.0
Dry GoodsUnited States....
-12.7
-5.1
-5.6
-5.5
New York Distilt
-6.7
0.0
-6.9
0.0
Philadelphia Dist_
-18.1
+0.5
-6.9
-16.3
Cleveland District
-4.0
-15.4
-6.5
-8.8
Richmond District
-20.4
-10.5
--2.3
+9.6
Atlanta District..
-18.0
+2.9
-7.1
-11.6
Chicago District--3.9
-11.0
-10.6
-6.6
St. Louis District_
-17.4
-0.8
-1.4
-6.3
Kansas City Dist_
-20.4
-8.4
+12.1
-5.0
Dallas District...
+19.5
-6.4
-20.5
-5.0
San Francisco Dist
-2.1
-14.4
-3.9
-0.8
ShoesUnited States____
-10.5
+0.8
+0.9
+3.1
Boston District...
-1.8
+2.4
-8.1
-6.1
New York Distrct
-11.0
-31.0
+2.5
+54.1
Philadelphia Dist.
-12.6
-4.4
-24.7
-17.7
Cleveland District
-19.7
-9.8
+0.2
+2.1
Richmond District
-4.6
-16.5
-18.3
+0.7
Atlanta District..
+1.5
+1.2
0.0
0.0
Chicago District__
-13.9
+17.6
-13.1
+6.6
St. Louis District.
+1.3
-0.8
+5.3
-7.6
Minneapolis Dist_
+8.0
-17.0
-19.0
-7.0
Ban Francisco Dist
+3.8
-3.0
-1.0
-18.9
HardwareUnited States- --1.3
-3.2
-3.6
-0.9
New York District
+0.8
-6.2
-13.4
+2.4
-7.6
-1.5
-2.1
Philadelphia Dist+7.0
Cleveland District
-8.5
-8.7
-6.8
+7.7
Richmond District
-3.0
-1.1
-6.4
-4.2
Atlanta District__
-12.2
+0.1
-8.6
+7.4
Chicago District...
+4.5
-2.3
-7.7
+0.9
Bt. Louis District_
-23.4
-1.7
-5.7
-18.5
Minneapolis Dist.
-2.0
+7.0
-1.0
Kansas City Dist.
+1.8
+4.1
+6.7
+2.6
Dallas District__
+8.4
-2.6
-6.2
+10.4
San Francisco Dist
-4.0
-9.3
-4.4
-0.3
DrugsUnited States__
Distri_
-2.2
+2.7
+5.1
New York
-12.2
ct
+19.3
-12.3
+3.3
Philadelphia Dist+1.6
+1.6
+15.8
-0.5
Cleveland District
-0.8
0.0
0.0
+0.2
Richmond District
-2.4
0.0
+2.7
0.0
Atlanta District..
-5.1
0.0
0.0
+3.1
Chicago District__
+0.2
-1.9
-4.5
St. Louis District_
-5.1
-8.9
0.0
0.0
Kansas City Dist_
+1.1
+17.4
+5.0
+2.6
Dallas District._
-6.0
+0.6
+0.7
-9.8
San Francisco Dist
+9.5
-4.8
-1.1
-1.7
FurnitureRichmond District
-7.0
-18.0
0.0
0.0
Atlanta District_
+0.4
+10.1
+8.7
-103
St. Louis District_
-4.3
-5.1
-9.0
-35.8
Kansas City Dist.
+2.8
+2.3
+9.6
+6.5
San Francisco Dist
+2.8
-0.3
+5.8
-4.2
AgriculturalImp lemmasUnited States_b__
-19.0
+42.7
0.0
0.0
Minneapolis Dist_
-46.0
+49.0
-4.0
+0.0
Dallas District.. _
-0.5
+46.0
-10.1
+0.4
Paper and Steno neryNew York District
+8.2
+1.8
0.0
0.0
Philadelphia Dist_
+10.8
-7.2
+4.5
+9.9
Atlanta District..
-18.1
-1.3
0.0
0.0
San Francisco Dist
-8.1
-13.8
+3.3
+5.9
Automobile Supp liesSan Francisco Dist
+0.4
+1.0
-0.6
-0.3
Clothing'
New York District
-20.7
-18.2
0.0
0.0
St. Louis District.
+171.1
+17.6
0.0
0.0
Cotton JobbersNew York District
-5.7
-8.7
--7.0
-4.2
Silk GoodsNew York District
-3.7
-2.7
0.0
0.0
Machine ToolsUnited States_c_ -31.7
+25.6
0.0
0.0
DiamondsNew York District
+1.4
-26.4
0.0
0.0
JewelryNew York District
-0.4
+4.9
+18.0
d+3.4
Philadelphia Dist.
-4.1
+21.0
-5.5
-8.0
Electrical Suppli esPhiladelphia Dist.
-4.9
-24.2
+1.8
+7.8
Atlanta District._
-0.1
+9.1
-20.5
-19.8
+6.4
St. Louis District_
-6.4
+24.7
-6.8
San Francisco Dist
-13.5
+1.8
+15.3
+11.1
StoresSt Txmla Illatrirt
4-55
-13.8
-36.5
a Changes In total stocks for the United States are weighted averages computed
on the basis of firms which have reported regularly to the Federal Reserve System
since January 1923.
h Sales of agricultural implements for the United States are compiled by the
Chicago Federal Reserve Bank from reports of leading manufacturers and include
all of their domestic business.
c Based upon indexes of orders placed with manufacturers furnished by the
National Machine Tool Builders' Association.
d Includes diamonds.
Bread Lines Are Said to Be Forming in Chicago.
From the New York "Evening Post" we take the following Associated Press advices, Dec. 22:
Bread lines such as Chicago has not seen since 1913 are growing longer
as Christmas nears and as Winter strikes with penetrating chill.
"Five hundred and four in the line yesterday," said Captain Fred 'I'.
Wilks of the Salvation Army. "Four hundred and eighty the day before,
and 400 before that. It's bigger every day as we get closer to Christmas.
These are only single men we had down here. The family relief department has 150 a day. These men could do skilled work if there were any
to do. We can't find any jobs."
Improvement in Retail Trade During November Reported By Federal Reserve Bank of New York.
According to the January 1 Monthly Review of Credit
and Business Conditions of the Federal Reserve Bank of
3546
THE CHRONICLE
New York,"retail trade in this district showed a considerable
improvement in November following the October decline,
larger
and the holiday trade in December was about 3
than last year, according to preliminary reports covering the
first 24 days of the month." Continuing the Bank says:
As the bulk of December business is done in this period, this advance
calculation will probably be fairly close to the final figure for the month.
Assuming a 3;i% increase for the whole month of December, the total
sales of reporting stores for the year will have been 2% larger than in 1926.
This increase, however,is the smallest for any year since 1922.
Bales of leading apparel stores, which in October showed a larger decline
than did sales of department stores, in November showed a correspondingly
larger increase. Mail order sales also showed a substantial increase in
November.
Stocks of merchandise in department stores remained generally smaller
than last year, consequently the rate of stock turnover was higher than in
November 1926. Collections also showed a considerable increase over last
year.
Per Cent Change
November 1927 from
November 1928.
Per Cent Charge Acc'ts
Ouistatuling Oc 31
Colleaed in November.
Locally.
Net
Sales.
New York
Buffalo
Rochester
Syracuse
Newark
Bridgeport
Elsewhere
Northern New York State
Central New York State
Southern New York State
Hudson River Valley District__
Capital District
Westchester District
All department stores
Apparel stores
Mall order houses
+3.5
-2.2
-3.2
+4.2
+9.4
--3.9
+3.6
-2.1
+11.9
-2.2
-0.4
+12.8
+1.1
+3.7
+8.4
+2.4
Stock on
Hand End
of Month.
1927.
1926.
51.4
55.0
43.8
47.9
52.5
44.1
-1.4
-2.8
-8.3
-10.8
-4.4
-7.4
--3.4
473:8
45.8
43.2
41.7
+2.8
50.1
49.9
47.2
45.8
As the following table shows, the largest increases in sales compared with
last year were in holiday goods, such as books and stationery and toys and
sporting goods, and in apparel departments, which in October made a
rather unfavorable showing.
Books and stationery
Women's and misses' ready-to-wear
Hosiery
Toys and sporting goods
Women's ready-to-wear accessories
Silverware and Jewelry
Men's furnishings
Furniture
Home furnishings
Toilet articles and drugs
Shoes
Men's and boys' wear
Luggage and other leather goods
Linens and handkerchiefs
Cotton goods
Silks and velvets
Woolen goods
Musical Instruments and radio
Miscellaneous
Net Sales
Percentage Change
Nov. 1927 from
Nov. 1928.
Stock on Hand
Percentage Change
Nov. 30 1927 from
Nov. 30 1928.
+13.8
+13.4
+8.4
+8.3
+7.5
+7.3
+7.2
+8.7
+8.2
+3.1
+2.9
+2.8
+1.2
+1.1
-1.0
-2.7
-8.9
-18.0
-1.7
--1.6
+0.6
+0.4
-4.0
-7.8
+3.4
-3.5
-1.9
-4.1
+5.8
+2.7
+3.2
-5.8
-12.9
-15.6
-31.3
-13.4
Increasing Volume of Chain Store Sales in New York
Federal Reserve District. •
With reference to the development of chain store business,
the Federal Reserve Bank of New York in its January 1
Monthly Review has the following to say:
November reports from chain store systems continued to show a rapid
rate of growth. The total sales of reporting chains were over 18% larger
than a year previous, the number of stores operated was 7% larger, and
average sales per store were 8% larger.
Grocery and variety chains continued to report the most rapid expansion
In volume of business. Ten cent store chains have increased the number of
units operated substantially during the past year, but sales per store in
November were somewhat smaller than last year, probably due to the comparatively small business done by newly opened stores. Drug chains
reported the smallest increase in the number of stores operated in more than
three years, but average sales per unit increased and were at least as large
as in November 1926. Shoe chains also had somewhat larger total sales than
last year, but tobacco and candy chains continued to report decreases,
both in total business and in sales per unit.
Percentage Change November 1927from November 1928.
Type of Store.
Grocery
Ten cent
Drug
Tobacco
Shoe
Variety
Candy
Total
Number of Stores.
Total Sales.
Sales per Store.
+7.6
+9.7
+2.7
+0.9
+9.4
+22.0
+4.4
+21.7
+7.3
+2.8
-2.5
+5.2
+25.0
-1.2
+13.0
-2.1
+0.1
-3.4
-3.9
+2.4
-5.4
+7.4
+16.3
+8.3
[Vol.. 125.
Among the items in which there has been a cut are tires. Extent
of the reduction by Sears, Roebuck & Co. was not disclosed, but an
official declared it was "substantial," bringing prices to the lowest level
in several years.
Cut by Montgomery Ward & Co. is estimated to have amounted to
between 5% and 7%.
Loading of Railroad Revenue Freight Still Declining.
Loading of revenue freight for the week ended on Dec. 17
totaled 868,162 cars, according to reports filed on Dec. 28
by the railroads with the Car Service Division of the American Railway Association. This was a decrease of 9,438 cars
below the preceding week this year, reductions being reported in the loading of merchandise and less-than-carloadlot freight, miscellaneous freight and forest products. Increases over the week before, however, were reported in the
loading of grain and grain products, live stack, coal, coke
and ore. Further particularizing, the report says:
The total for the week of Dec. 17 was a decrease of 76,234 cars under the
same week last year and 101,576 cars below the same week In 1925.
Miscellaneous freight loading for the week totaled 299,119 cars, a decrease
of 12,734 cars under the corresponding week last year and 44,628 cars below
the same week in 1925.
Coal loading amounted to 173,273 cars, a decrease of 57,406 cars under
the same week last year and 13.998 cars below the same period two years
ago.
()rain and grain products loading totaled 44,752 cars, a decrease of 964
cars below the same week in 1926 and 9,291 cars below the same period in
1925. In the Western districts alone, grain and grain products loading
totaled 31,642 cars, an increase of 6,186 cars above the same week last year.
Live stock loading amounted to 32,299 cars, an increase of 2,000 cars
over the same week last year and but 2,121 cars below the same week in
1925. In the Western districts alone live stock loading totaled 24,883
cars, an increase of 1,810 cars above the same week last year.
Loading of merchandise and less-than-carload-lot fret :ht totaled 246,140
cars, a decrease of 697 cars under the same week last year and 8,883 cars
below the corresponding week two years ago.
Forest products loading totaled 53.714 cars, 4,746 cars below the same
week last year and 15,822 cars under the same week in 1925.
Ore loading totaled 8,892 cars, 123 cars over the same week in 1926 but
2.388 cars below the corresponding week two years age.
Coke loading totaled 9.973 cars, a decrease of 1,810 cars under the same
week in 1926 and 6,465 cars below the same period in 1925.
All districts reported decreases in the total loading of all commodities
compared with the corresponding period in 1926 except the Northwestern,
which shows an increase, but all districts reported decreases compared with
the same period in 1925.
Loading of revenue freight this year compared with the two previous
years follows:
1925.
1926.
1927.
4,456,949
4,428,256
4,524.749
Five weeks in January
3,623,047
3,677,332
3,823,931
Four weeks in February
3,702,413
3,877.397
4,016,395
Four weeks in March
4,710.903
4,791,006
4,890,749
Five weeks In April
3,869,306
4,145,820
4,096,742
Four weeks in May
3,965,872
4,089,340
3,974,160
Four weeks in June
4,945,091
5,213,759
4.935,397
Five weeks in July
4.321.427
4,388,118
4,249,359
Four weeks in August
4.297,936
4,523,112
4,360,022
Four weeks in September
5,537.159
5,967,578
5.587,921
Five weeks.in October
4.093,715
4,248.272
3,822,620
Four weeks in November
1,020.839
1,051,219
918.237
Week of Dec. 3
1,008.696
992,455
877.600
Week of Dec. 10
969.738
944.396
868,162
Week of Dec. 17
50.946,044
Total
52,338.058
50,523,091
14% in 1927-Total for Year
Placed at $3,253,766,000-Costs
Heavy Construction Up
for Entire Country
Easier.
Engineering construction operations in the United States
in 1927 were fully 14% greater than in the preceding year,
based on the money value of contracts let, "Engineering
News Record" reports. The total for the year was $3,253,766,000, as against $2,853,847,000 in 1926. Privately owned
projects, consisting chiefly of commercial buildings, accounted for $1,998,536,000 in the total for the year. Contracts let on public improvements, covering water-works,
sewers, bridges, streets and roads. Federal projects and
municipal work, were valued at $1,255,240,000. The statement adds:
Heavy construction awards announced in the last week of the year.
taking the country as a whole, were valued at $80.602,000. as against
$65,376,000 in the preceding week, and $31,619,000 in the corresponding
week of last year. Minimum costs observed in arriving at these totals are
$150,000 for commercial, educational, institutional and other buildings,
$40,000 for industrial plants, and $25,000 for public work.
With wages of skilled building trades mechanics consistently above 1926
levels, materials prices have eased off sufficiently to give a general cost
level that is 1% below the 1926 average. "Engineering News-Record's"
construction cost index for December is 203.90, and compares with 210.80.
a year ago.
of Sears and Mont- Review of 1927 Construction in the Metropolitan Area.
Over 20% of the country's total of building and engineergomery Ward Show Reductions on Many Merchandise
ing work in 1927 was done in the metropolitan district of
Items.
From Chicago the "Wall Street Journal" of Dec. 30 re- New York, according to F. W. Dodge Corp. Contracts
awarded in the metropolitan area amounted to more than
ported the following:
against an estimated total of $6,800,000,000
$1,391,000,000
are
Co.
&
out
Ward
sending
Montgomery
and
Co.
Sears, Roebuck &
new price lists on many lines of merchandise, showing reductions in for the entire country. The Dodge corporation adds:
Mail Order Prices Cut-New Lists
Percentage of the
most items compared with latest catalog prices.
cut varies.
of
issuance
catalogs and
regular
the
Such lists are sent out between
quote lower prices usually on items when market conditions permit of
reduction from catalog figures.
This large volume of construction is indicative of the remarkable growth
of the metropolitan area, not only in population-density, but in wealth and
In permanent improvements to take care of its Inhabitants and all their
varied and expanding activities. The Holland Tunnel recently completed,
the suspension bridge connecting Now York and New Jersey recently started,
DEC. 31 1927.]
THE CHRONICLE
the bridges between Staten Island and New Jersey nearing completion, and
new subways and tunnels proposed for connecting Manhattan to the outlying boroughs and suburban areas are typical of the large improvement
projects which are binding this territory together and are bound to prove
beneficial of all lines of business activity in the metropolitan area.
In spite of the enormous volume of new construction in 1927, total construction expenditures dropped 10% below the figure for 1926, which was
the record year. It was the first year since the war that failed to show an
increase over the preceding one, the rather moderate decline serving to show
that record-breaking activity could not be expected to go on forever. Declines were not uniform throughout the district, as is shown in the following
table:
CONSTRUCTION CONTRACTS.
Year 1927.
Year 1926.
New York City (5 boroughs)
$937,000,000
$1,157,000,000
Northern New Jersey
272.000,000
230,000,000
Westchester County
102,000,000
126,000,000
Nassau and Suffolk
62.000,000
56,000.000
Total
$1,551,000,000 $1,391,000.000
The figures given for the year 1927 are preliminary, contracts for the final
week of the year having been estimated. New York's construction expenditures decreased 19%. and Nassau and Suffolk off 11%. Northern New
Jersey increased 18%, and Westchester had the very satisfactory increase
of 24%. Within the City of New York, according to the records of plans
filed in the building departments of the five boroughs, Queens held up the
best in new building activity, with only a 3% decrease from the previous
Manhattan fell off 11%; Brooklyn dropped 22%; the Bronx declined 21%
(all these statements being based on records to Dec. I).
In the metropolitan area, commercial and educational buildings and
public works and utilities showed moderate increases in 1927, which other
classes of work, particularly industrial and residential buildings, showed
fairly considerable declines.
The 1928 construction outlook for the country as a whole is for moderately increased volume. In the metropolitan area there is still some question
as to whether the supply of new building space may not be a little ahead of
demand. At any rate, the coming year should have in this territory a
construction volume fairly close to that of 1927; it should not drop very
much lower,and it might equal or even slightly exceed the 1927 volume.
Indiana Limestone Co. Sees an Active Period Ahead in
Winter Building Construction.
According to the Indiana Limestone Co., winter building
promises to roll up a large total during the present season.
Contractors and builders in several large cities report, it is
stated, that payrolls and purchases of material are showing
no marked falling off with the approach of cold weather.
"Each year indicates an increased popularity for all-seasons
construction, says President A. E. Dickinson of the Indiana
Limestone Co. The advantages of eliminating peaks and
valleys from the construction industry are chiefly responsible
for the large volume of winter building of the last few years:,
Be then goes on to say:
Four or five years ago construction practically came to a standstill with
the approach of cold weather. To-day architects, constractors and builders
realize that work can be carried on as efficiently and economically in the
winter as in any other season.
There is a distinct economy in winter building. Materials are plentiful.
Idle investments give earlier returns, and of vital importance to the entire
nation is the stabilization of labor. As construction has been called the
balance wheel of all Industry, all-season employment is a universal benefit.
A typical winter is not all blizzard and sleet. Official weather records
show that unfavorable working conditions are not nearly so numerous as
generally believed.
The year 1926 showed more winter building than the previous year.
Considering the many projects planned for the next few months, there is
every indication that this winter's program will more than equal that of the
past two years.
Semi-annual Survey of Real Estate Market—Year's
Volume of Transfers Substantially Equal to 1926—
Rents Downward on Residences—Upward or
Steady for Business Property.
A generally stabilized condition in real estate is indicated
by a survey of the real estate market for the United States
and Canada, which has just been completed by the National
Association of Real Estate Boards; the results of the survey
are indicated as follows:
Of the 310 dties covered by the survey 40% report the market to be
somewhat less active than last year, 35% report it at the same level as last
year and 25% report a greater activity than last year. Selling prices are
reported higher in 14% of the cities, the same as those of last year in 57%
of the cities and lower in 29%.
One hundred per cent of the cities having a population of 500,000 or more
reported prices to be the same as last year.
Number of Transfers Practically Equal to Past Record Years.
The total number of real estate transfers recorded for the country as a
whole as indicated in 41 typical clies has been substantially equal to the
number recorded in 1926, according to the tabulation of official reports
of the number of transfers and conveyances recorded as made by the
National Association of Real Estate Boards. While the trend of the
monthly index of real estate market activity compiled by the Association
from the official reports of transfers and conveyances recorded in the 41
typical cities has been downward since February 1927, the total number of
transfers represented by the index is practically equal to any year on record.
Incoming data for the next monthly index indicate that the curve will
turn upward toward the first of 1928, as it has done in ten out of twelve
years during which the index has been compiled.
Rents Downward in Residences Upward in Downtown Property.
Rentals for all types of dwellings show a downward taend as compared
with last year for the United States.
The largo majority of cities reported the rents of centra business property
to be the same or higher than a year ago.
Rents in single-family dwellings are reported stationary in 66% of the
cities, higher in 10% and lower in 24% than they were at this time last
year. Apartment rents are reported stationary in 68% of the cities, higher
3547
In 9% and lower in 23%. Kitchenette apartments show a still more stabilized condition, with rents stationary in 73% of the cities, higher in 9%
and lower in 18%.
Rents in central business property are reported stationary in 57% of the
cities, higher in 30% and lower in 13% of the cities.
Office building rents in central business districts are reported the same
as last year in 78% of the cities, as higher in 11% and lower In 11%. a
highly stabilized condition.
Rent reports from cities of the United States are in marked contrast to
the reports for Canada, in which none of the cities covered by the survey
reported any downward movement of rents in any type of residential property, all reports indicating that rents were either stationary or higher.
Some Cities Show Oversupply of Office Buildings.
As to degree of existing overbuilding or underbuilding, 30% of the cities
reporting indicate some oversupply of business buildings. 13% a shortage
of this type of structure and 57% a normal supply. In single-family residences 28% of the cities report a shortage, 48% a normal supply and 24%
an oversupply.
In apartment buildings 32% of the cities report a shortage, 25% an oversupply. 43% a normal supply.
Supply of capital for real estate development is an important factor in
the national real estate and building situation. Throughout the country,
nd especially in Canada and in all the larger cities, the survey shows a
arge surplus of capital seeking investment in real estate mortgage loans.
Of the cities reporting, 60% state that in their mortgage money market
capital is seeking loans, 22% report an equilibrium between the supply of
capital and the demand for loans, and only 18% report desirable loans
available in excess of the supply of capital.
Interest rates on real estate mortgage money are reported steady in 99%
of the cities, falling rates are the rule in 25% of the cities and only 6%
show rising rates.
Decline of Activity in Subdivision Market.
The survey shows that the principal decline in real estate activity thill
year took place in the subdivision market, where 40% of the replies report
the same activity as last year, 44% report less activity and 16% report
more activity.
Activity Greatest in Less Densely Populated Sections.
The survey shows less activity in the more populous sections of the
country with greater activity in less densely settled sections, and in sections
like the West North Central, which are apparently recovering from the
depression of the past few years. The sections showing the largest percentage of cities reporting higher prices are the West North Central section,
in which 30% of the cities reported prices higher and the West South
Central section, in which 25% of the cities reported higher prices.
Further Recession in New England Business Activity Reported by Boston Federal Reserve Bank
According to the Federal Reserve Bank of Boston "there
has been a further recession in New England business activity during recent weeks, and the Index of New England
Business Activity dropped in November to the lowest point
since last February." The Bank, in its Monthly Review,
issued under date of January 1, further surveys the situation as follows:
The highest level of the year was recorded during September, which
was followed in October by a drop of more than two per cent. The
recession in November from the October level was nearly 3%, and the
Index for November was principally equal to the monthly average of
1923-1924-1925. Business activity of the entire country also receded
during November from the October level. Automobile production during
November was less than in October, and was substantially below that
of November, 1926. Improvement, however, has recently been noted
in the iron and steel industry, and is attributable in part to the increased forward buying of railroad equipment. The record Novemehr
cotton consumption in the United States was due to activity in the
Southern mills. The average daily cotton consumption by New England
mills during November was less than in October, or November a year
ago. Wool consumption by New England mills declined for the third
consecutive month, and during November the rate of consumption was
about equal to that of April. There is usually a seasonal increase from
October to November. Activity in the boot and shoe industry, both in
New England, and the country as a whole, declined in November by
more than the usual seasonal amount. The value of contracts awarded
for new construction in New England during November established a
new high record for that month, and was about 50% larger than in
October. For the eleven months, January-November, inclusive, however,
the value of contracts awarded in New England was about 6% below
that of the corresponding period in 1926, while for the country as a
whole the decline from the total for the eleven months of 1926 has bean
less than one-half of one per cent. There was a decrease reported in
the number of wage-earners employed in identical factories in Massachusetts during November. Sales of reporting New England department
stores during November were larger than in October, and were only
slightly below the record November sales of last year. Preliminary
reports indicated that December sales probably would be slightly kirger
than December, 1926. The level of wholesale commodity prices during
November and the first part of December was slightly lower than in
October. Money rates have remained easy and steady during recent
weeks, notwithstanding that for the third consecutive month there has
been a net export of gold from the United States which had accumulated
up to December first to a total of over $73,000,000.
Business Conditions in Philadelphia Federal Reserve
District—Further Slackening of Trade Reported.
The Federal Reserve Bank of Philadelphia in its Business
Review dated Jan. 1 states that "further slackening of
trade and industry in the Philadelphia Federal Reserve
District is evidenced as the end of the year approaches."
The bank says that "Christmas trade has been less than the
anticipated volume and the movement of goods through
wholesale and retail channels has continued smaller than in
the corresponding period of last year." Continuing it says
3548
[VOL. 125.
THE CHRONICLE
November department and apparel store sales were smaller than in
either 1925 or 1926 but the shoe trade reported a larger volume of sales.
Wholesale electrical supply dealers reported heavier sales in November,
but all other lines showed declines as compared with last year. Sales of
automobiles to customers by distributors reporting to this bank were
smaller than in either the preceding month or the same period of last year.
Life insurance sales, which usually show considerable gains from year to
year, were 8% less in November, 1927 than in the previous year. Freight
car loadings in the Allegheny District in recent weeks have been running
16% behind the same period of last year. Bank debits have been in larger
volume than in 1926, a reflection in part of larger security and real estate
transactions.
The year's recession has been perhaps more pronounced in industry
than in trade of the district. Factory employment and payrolls in Pennsylvania have declined almost uninterruptedly for more than a year: in
November they were more than 10% under the level of 1926. Declines
have been especially severe in the metal manufacturing industries. Output
of pig iron and steel products both in this district and in the country as a
whole has fallen further to a point substantially below last year. Some
Improvement in demand was reported early in December, however. Operations of the automobile industry have also slackened considerably,
the national output of cars and trucks in November being smaller than
in any month during the past five years.
Conditions in the textile and leather industries are somewhat more satisfactory. The cotton goods market has quieted seasonally in the last few
weeks but mill operations generally have been well maintained as compared
with last year. Trading in raw wool and yarns has been fairly active and
operations of mills have expanded considerably since summer. Though
silk prices have weakened further, mill operations and sales have been in
larger volume. Full-fashioned hosiery is in good demand and a fair market
exists for carpets and rugs.
The leather and shoe industries are fairly active and prices have advanced
for a few products. Employment in leather tanneries and shoe factories
of Pennsylvania, contrary to the general trend, has advanced in the past
few months and is above last year's level.
Although seasonal declines have occurred in building, the volume of construction continues to compare favorably with 1926. For the first 11
months of the year contracts in this district have exceeded last year by
13%, while in the United States a gain of 5% occurred. As usual at this
season the market for most building materials has slackened considerably
and plant operations are smaller in some cases than in the same period of
1926.
The coal industries of Pennsylvania have shared in the general business
recession. Industrial inactivity has reduced the demand for bituminous
coal and mine operations have been contracted considerably, while production and shipments of anthracite have been considerably under last year's
level owing to the warm weather in recent months.
Commodity Prices.
The upward movement in the general level of wholesale commodity
prices which began in July has been checked by a slight decline in recent
weeks. Fisher's weekly price index decreased about 1-10th of 1% in the
four weeks ended Dec. 16. From October to November a decline of nearly
I-3d of 1% occurred, according to the Bureau of Labor Statistics price index.
Among the groups of commodities responsible for this reaction were farm
products, particularly livestock and poultry, textile products,fuel and lighting, metal and metal products, and building materials. On the other hand,
prices of foods, hides and leather products, chemicals and fertilizers, and
house furnishing goods increased somewhat.
In comparison with a year before, quotations for farm products, and hides
and leather products were materially higher, and foods and textile products
were slightly higher. All other groups of commodities were lower, declines
ranging from less than X of 1% in house furnishing goods to nearly 10%
in building materials, and to more than 19% in the case of fuel and lighting.
WHOLESALE TRADE DURING THE MONTH OF NOVEMBER 1927.
Net Sales During Month. Stocks at End of Month.
P.C. Change P.C. Change P.C. Change P.C. Change
from
from
from
from
Preceding Same Month Preceding Same Month
Month.
Last Year.
Month.
Last Year.
Groceries
Hardware
Dry goods
Drugs
Shoes
(35)- 0.7 (35)- 2.2 (22)- 0.6 (22)- 16.5
(15)- 8.3(15)- 6.6 (10)- 3.2 (10)- 5.3
(14)- 9.1 (13)- 8.9 (11)- 11.3 (10)- 10.2
(Ii)- 4.0 (11)- 4.8( 8)- 3.4( 8)- 5.3
( 8)- 12.0( 8)- 14.1 ( 5)- 6.2( 5) + 10.8
Accounts Outstanding End of Month. Collections During Month.
P.C. Change P.C. Change
from
from
Preceding Same Month
Month.
Last Year.
Ratio to P.C. Change P.C. Change
Net Sales
from
from
During
Preceding Same Afonth
Month.
Month.
Last Year.
Groceries
(31)- 0.3(31)- 4.9 (31)-114.2 (26)- 1.0 (26) + 1.3
Hardware
(15)- 3.2 (15)- 5.0 (15) -195.9 (12)- 3.5 (12)- 2.7
Dry goods
(12)- 2.7 (11)- 7.4 (12) -318.8 (10)- 13.4( 9)- 15.8
Drugs
(10) + 1.3 (10)- 8.0 (10)-142.7( 6)- 5.1( 6)- 5.6
Shoes
( 6)- 5.3( 6) + 0.2( 6) -298.5( 5)- 0.4( 5)- 8.4
Figures in parentheses indicate number of firms included.
Department Store Trade.
Reports received from 79 department stores in this district show sales
for November as 5.2% larger than the October total and 3.5% ahead of
November 1928, with the aggregate for the 11 mouths' period 1.3% over
the same figure for 1926. As compared with November of last year,
Chicago, Milwaukee, Indianapolis and the total for smaller cities in the
district showed declines; Detroit stores, with an increase of 17.4%, reported
the only group advance; a seasonal increase over October was indicated by
all groups. Inventories at the end of the month were slightly larger than
30 days earlier and about equivalent to the figures of a year ago; stock turnover, as measured by the ratio of total sales to average stocks, was 33.1%
on Nov. 30, as compared with 31.2% on Oct. 31; for the 11-month period
the turnover percentage was 341.5 in 1927 and 331.4 in 1926. Collections
were ahead of those for October and a year ago by 9.1 and 6%,respectively,
and outstanding accounts on the last day of November totaled 4.7 and 3.3%
more, respectively, with the ratio of November collections to accounts
receivable on Oct. 31 42.3% this year as against 41.1% in 1926.
Retail Shoe Trade.
Retail shoe sales during November, as reported by 21 dealers and the
shoo sections of 22 department stores, were 6.6% ahead of tho October
total and 11.3% under November a year ago, with the 11 months' aggregate
4% smaller than the figure for the same period iof 1926. Stocks were
5.1 and 6% larger on Nov.30 than a month and a year earlier, respectively.
Collections, as indicated by figures received from 14 shoe stores. Increased
lathe two comparisons by 11.6 and 8.2%, and outstanding accounts at the
end of November were 2.4% ahead of Oct. 31 and 11.1% smaller than
Nov. 30 last year, while the ratio of accounts receivable to total sales was
33.9% as compared with 32.3 for October and 33.3 for November 1926.
Retail Furniture Trade.
Sales during November of 22 retail furniture stores and the furniture
sections of 28 department stores fell 12.9 and 4.6% under the totals for
October and a year ago, respectively. Sales on the installment plan,
according to data received from 17 dealers, declined 23.1 and 15.5% in
the two comparisons. Collections on total sales were 19.3 and 11.4%
less than 30 days earlier and last year, whlle those on installments showed
decreases of 9.3 and 5.4%. Inventories on Nov. 30 had increased 3%
over the Oct. 31 total, but showed a decline of 4.3% from the figure of a
year ago. Outstanding accounts were smaller than on Oct. 31, but somewhat ahead of Nov. 30 1926.
Chain Store Trade.
Continued Decline in Industrial Consumption of
Twenty-three chains in this district, comprising nearly 2,100 individual
Electric Power in Philadelphia Federal Reserve stores
and representing dealers in shoes, musical instruments, groceries,
District.
cigars, drugs, men's and women's clothing, furniture and 5-and-10-cent
Industrial consumption of electric power decreased 1.2% goods, showed aggregate increases over October of 23 stores and of more
than 250 over November 1926. Total sales were 1.2% under the figure
between October and November and was six-tenths of 1% for
October and 8% larger than a year ago. Grocery, drug, clothing and
smaller than a year before. Total sales of electricity increased 5
-and-10-cent chains reported sales as larger than at this season last year:
somewhat less than seasonally and were slightly below the as compared with October, however, totals were generally lower for all lines.
total in the same month last year. Production of electric
power by 13 central stations was only a trifle greater than in Falling Off in Employment and Wages in PennsylOctober and a year earlier, as shown by the accompanying
zania During November-Slight Increases in
table. The Federal Reserve Bank of New York, in anDelaware.
nouncing this, furnishes the following statistics:
The Federal Reserve Bank of Philadelphia, in its monthly
ELECTRIC POWER-PHILADELPHIA FEDERAL RESERVE DISTRICTTHIRTEEN SYSTEMS.
survey of industrial conditions in Pennsylvania just comChange
Change
pleted for November, reports a slight falling off in volume
from
from
Oct.
Nov.
of employment and total wages paid as compared with the
November 1927.
1927.
1926.
+5.5% previous month and a considerable decline as compared
1,439,000 k.w.
+2.8%
Rated generator capacity
439,865 k.w.h. +0.2
+0.5
with the same month last year. Some of the decrease this
Generated output
+63.5
38,272,000 k.w.h +80.1.
Hydroelectric
month, however, is attributable to the observance of Armis-8.3
319,085,000 k.w.h. -3.1
Steam
k.w.h.
+28.5
82,508,000
tice Day by a number of the plants. The Bank, under date
Purchased
347,423,000 k.w.h. +2.8
Sales of electricity
of Dec. 16, goes on to say:
79,319,000 k.w.h. +15.6
+9.4
Lighting
Municipal
Residential and commercial
Power
Municipal
Street cars and railroads
Industries
All other sales
10,436,000 k.w.h. +9.5
68,883,000 k.w.h. + 16.5
228,605,000 k.w.h. +0.2
2,100,000 k.vr.h. +3.7
47,193,000 k.w.h. +.5.3
179,312,000 k.w.h. -1.2
39.499,000 k.w.h. -4.0
+8.2
+9.6
-1.6
-1.0
-0.6
-21.3
Merchandising Conditions in Chicago Federal Reserve
District-Gain in Department Store and Chain
Store Trade-Wholesale Trade Declines.
A decline in wholesale trade, whereas department store,
chain store trade, &c., were able to show Increases, is shown
in the summary of merchandising conditions in the Chicago
Federal Reserve District furnished in the Jan. 1 issue of
the "Monthly Business Conditions Report" of the Chicago
Federal Reserve Bank. The Bank says therein:
Wholesale Trade.
Each of the five wholesale lines reporting to this bank-groceries, hardware, dry goods, drugs and shoes-showed sales declines from both October
and a year ago. Unsatisfactory business was attributed in part to mild
weather which greatly retarded demand for cold weather goods. Detailed
data are given in the following table:
Beginning with this month a new classification has been adopted which
includes 9 main groups of industries and 55 separate industries, and hereafter figures will be shown in this manner. The classification is similar to
that used by the U. S. Bureau of the Census, and it is hoped that by its
use the various industries have been classified more exactly.
In the metal products group the industries showing the largest decreases
were blast furnaces, electrical machinery and engines and pumps. Mon's
clothing had the largest decline in the textile group. Other large decreases
occurred in the furniture industry and in plants manufacturing wooden
boxes and rubber tires and goods. In spite of the general decline, some few
industries showed large gains over the previous month. Noticeable among
these were automobile bodies and parts, women's clothing, street and highway construction and leather products. The compilation of the figures
from firms reporting the number of employee hours worked followed very
closely the original report of employment and wages and likewise showed a
slackening of activity in November.
The reports from Delaware firms showed slight increases over a month
ago, the industries reporting the largest gains being foundries and machine
shops and leather tanning and leather products.
Of the 17 city areas. Sunbury was the only city which had an appreciable
increase over October. Most of the cities followed the downward trend.
The change for Philadelphia was a decrease of 1.5% in employment and a
decline of 2.0% in wage payments.
The compilations follow:
DEC. 31 1927.]
THE CHRONICLE
EMPLOYMENT AND WAGES IN PENNSYLVANIA.
Complied by the Federal Reserve Bank of Ph ladelphla and the Department of Labor
and Industry, Commonwealth of Pennsylvania.
All industries (55)
Metal products
Blast furnaces
Steel works and rolling mills
Iron and steel forgings
Structural iron work
Steam and hot water heating apparatus
Stoves and furnaces
Foundries
Machinery and parts
Electrical machinery and apparatus
Engines and pumps
Hardware and tools
Brass and bronze products
Jewelry and novelties
Vehicles
Automobiles
Automobile bodies and parts
Locomotives and cars
Railroad repair shops
Ship building
Textile products
Cotton goods
Woolens and worsteds
Silk goods
Textile dyeing and flialshing
Carpets and rugs
Hats and caps
Hosiery
Knit goods, other
Men's clothing
Women's clothing
Shirts and furnishings
Foods and tobacco
Dread and bakery products
Confectionery
Ice cream
Meat packing
Cigars and tobacco
Stone, clay and glass products
Brick, tile and pottery
Cement
Glass
Lumber products
Lumber and planing mills
Furniture
Wooden boxes
Construction and contracting
Buildings
Street and highway
General
Chemical products
Chemicals and drugs
Coke
Explosives
Paints and varnishes
Petroleum refining
Leather and rubber products
Leather tanning
Shoes
Leather products. other
Rubber tires and goods
Paper and printing
Paper and wood pulp
Paper boxes and bags
Printing and publishing
EMPLOYMENT AND WAGES IN DELAWARE.
Compiled by Federal Reserve Bank of Philadelphia.
No. of
Nov. 1927 Over Oct. 1927.
Plants
Report- EmployArerage
ing.
moot.
Wages.
Wages.
833
238
10
44
10
9
19
8
39
39
16
10
20
10
4
42
7
12
13
7
3
166
14
16
41
10
9
5
27
14
11
9
10
104
29
14
11
14
36
67
30
14
23
43
18
19
6
33
19
3
11
34
14
3
3
9
5
51
17
23
7
4
55
11
6
38
-0.7
-2.0
-11.6
-0.8
+0.3
-1.1
-6.0
-0.7
-2.4
-1.1
-9.0
-1.7
-1.2
-4.1
-3.2
-1.4
-2.2
+1.5
-2.1
+0.4
-5.1
+2.9
-5.1
+1.6
+6.4
+4.7
+6.7
-0.1
+2.9
+3.9
-10.5
+8.6
+2.6
-2.2
-0.8
.-....3.6
-6.8
+1.3
-2.3
-2.7
-2.9
-1.9
-3.3
-6.1
+1.1
-16.5
+0.1
-0.4
-1.9
+19.6
-3.3
+1.0
+2.1
+2.0
+2.1
-0.5
+0.5
+2.3
+1.6
-1.4
+48.9
-0.9
-0.4
-1.1
+3.0
-0.5
1
lill++++ItLI4Itill114-11111t1+1++++1+-1-1+1,.++1111L11111++..11
Group and Industry.
-0.6
-0.8
0.0
+1.3
+1.3
-5.7
+2.3
-5.7
+1.8
-3.1
-11.3
-14.6
-3.0
-1.9
+2.4
+3.6
+6.8
+17.2
-1.5
+0.3
+2.7
-0.8
+8.5
-3.8
+2.4
-3.2
-3.2
+3.0
-3.9
-0.7
-7.0
+2.5
+0.5
+0.1
-2.8
+1.8
+2.1
+1.2
-2.4
-2.4
-2.4
-2.5
-4.6
-1.5
-11.8
-3.1
-8.4
+0.3
+1.6
-0.8
-0.4
-0.1
+1.1
+0.1
-1.5
-5.7
-2.7
-8.6
-8.1
-13.7
+2.0
+0.4
+0.9
+3.5
3549
Industry.
All industries
Foundries and machinery products
Other metal manufactures
Food industries
Chemicals, drugs and paints
Leather tanned and products
Printing and publishing
Miscellaneous industries
No.
Increase or Decrease,
of
Nov. 1927 Over Oct. 1927,
Plants
Report- EmployTotal
Average
fog.
meta.
Wages.
Wages.
29
4
5
3
3
3
4
7
+1.6
+4.5
-7.4
+7.6
+4.1
+2.0
+0.8
+1.9
+3.6
-0.7
-1.1
+9.6
+11.9
+0.1
+0.3
-0.9
-0.2
+6.8
+1.8
+7.5
-1.8
-2.9
EMPLOYMENT AND WAGES IN CITY AREAS.
Compiled by Department of Statistics and Research of the Federal Reserve Bank
of Philadelphia.
Areas.
Allentown-Bethlehem-Easton
Altoona
Erie
Harrisburg
Hazleton-Pottsville
Johnstown
Lancaster
New Castle
Philadelphia
Pittsburgh
Reading-Lebanon
Scranton
Sunbury
Wilkes-Barre
Williamsport
Wilmington
York
Increase or Decrease.
No.
of
Nov. 1927 Over Oct. 1927.
Plants
Report- EmployTotal
Average
frtg.
ment.
IVages.
Wages.
79
15
14
35
20
13
30
9
246
101
65
34
26
21
23
30
44
-1.5
-2.0
-2.4
-1.4
-8.2
+2.5
-1.3
-1.5
-1.9
+1.2
+0.7
+10.1
+2.1
+1.1
-1.1
--3.5
--5.0
--2.5
-8.2
--3.4
+1.8
-7.8
-2.0
-0.6
+0.7
-1.4
+9.8
+0.1
+1.7
+1.4
+8.2
-3.7
-1.8
-0.6
-6.6
-0.4
- +1.4
-0.4
-0.2
+2.6
+0.3
+7.4
Industrial Employment Conditions in Chicago Federal
Reserve District-Decrease in Employment and
Wages.
Decreases in employment and wages in manufacturing
establishments in the Chicago Federal Reserve District are
indicated in the "Monthly Business Conditions Report,"
issued under date of Jan. 1 by the Chicago Federal Reserve
Bank, from which we quote as follows:
Manufacturing operations experienced a general slowing down during
the Oct.
to
period. Plants within the Seventh [Chicago] Federal Reserve District with an employment of approximately
report
decreases of
in the number of employees and of
in the amount
of payrolls. The metals group, as a whole, contributed largely to this
decline, laying off
of their men and curtailing payrolls
Agricultural implements, however, showed a further increase in activity, and
metals other than iron and steel also added to their employment. In the
vehicles group the percentage declines were even heavier than those reported
for the metals, the curtailments amounting to
in the number of men
in total payrolls. At Detroit, according to the records of the
MAN-HOURS AND AVERAGE HOURLY WAGES IN PENNSYLVANIA. and
Compiled by the Federal Reserve Bank of Philadelphia and the Department
Employers' Association of that city, employment on Nov. 15 was
of Labor and Industry, Commonwealth of Pennsylvania.
below that of four weeks earlier, and
less than a year ago. The first
No. Increase or Decrease, week in December, however, showed an increase of 2.2% over the Nov. 15
of
Nov.'27 Over 0c1:27, figure.
Plants'
Meat packing plants of the district reported a slight gain for the period,
Group and Industry.
ReportTotal
Average
tng. Ilan-Hrs. IrrlyRate. but other food products showed a general decline. Under textiles, clothing
experienced a reduced demand, while knit goods, hosiery and underwear
All industries (49)
490
-0.6% -0.7% continued active.
Most of the building materials showed the effect of the
Metal products
164
-2.8
-0.2
dull season in construction work. A number of brick yards were retaining
Blast furnaces
8
-12.0
-0.2
Steel works and rolling mills
25
+2.4
-1.1
their men, but working only two days a week, sufficient to pack the yards
Iron and steel forgings
8
+3.4
-1.2
by spring. The manufacture of furniture and musical instruments showed
Structural iron works
5
-17.7
-0.9
a
marked recession, as did also that of boots and shoes. Of the ten reportFoundries
32
+0.2
+0.2
ing
Steam and hot water heating apparatus
industrial groups, only two, rubber and paper products, registered a
12
-5.7
+8.2
Machinery and parts
29
-2.7
-1.0
gain for the period under discussion.
Electrical machinery and apparatus
12
-21.5
-2.2
The general reductions at manufacturing establishments were somewhat
Engines and rsimPs
8
-21.0
+2.1
counteracted by increased employment in the distributive industries, retail
Hardware tools
14
-2.8
-0.4
Brass and bronze products
8
-6.1
and wholesale trade and snail-order houses: also by continued gains at the
-1.3
Jewelry and novelties
-0.1
3
.0
coal mines. Construction work, however, slowed down considerably, and
Vehicles
33
+3.9
-0.2
much of the road work has been discontinued for the winter. At the free
Automobiles
7
+2.9
+1.5
Automobile bodies and parts
employment offices of Illinois and Indiana the ratio of applicants to available
9
+25.3
-4.1
Locomotives and cars
-8.3
+1.7
9
positions showed further increase; in Iowa the situation was relieved someRailroad repair shops
5
-3.1
+2.3
what by a demand for labor due to the corn-husking season.
Ship building
+1.4
3
-3.9
Textile produCts
70
+10.3
EMPLOYMENT AND EARNINGS-SEVENTH FEDERAL RESERVE DIST
-0.9
Cotton goods
11
-1.4
+1.1
Woolens and worsteds
10
-3.2
+3.5
No. of Wage Earners.
Total Earnings.
21
Silk goods
+20.9
-1.4
Textile dyeing and finishing
-0.2
5
-2.1
Industrial
Groups.
ll'eelc
Ended
Week Ended
4
Carpets and rugs
+3.5
-2.7
5
+11.0
Hosiery
-1.8
Nov. 15 Oct. 15 P. C. Nov. 15
Oct. 15 P. C.
7
Knit goods, other
-4.9
+9.8
1927. 1927. Change
1927.
1927.
Women's clothing
Change
+6.3
4
+8.5
Shirts and furnishings
-2.7
-0.7
3
All groups (10)
314,443
--4.9
321,935
$9.221,984
$8,768,130
43
Foods and tobacco
-4.5
+2.6
Metals
and
metal
products
Bread and bakery products
+2.4
-3.9
17
(other than vehicles)
116.764 119,429 -2.2 3,340,033 3,566.242
Confectionery
-6.8
5
+1.6
Vehicles
808 27,261 -5.3
908.323
850,605
Ice cream
-8.1
7
+5.1
Textiles and textile products_ 25,237 25,493 -1.0
622.511
572,866
Meat packing
+1.1
8
+1.0
Food and related products... 46,150 47,827
1,274,79 1,311.487
Cigars and tobacco
+3.0
6
-1.9
Stone, clay and glass products 12,509 12,553 -0.4
367.724
372,310 -1.2
Stone, clay and glass products
-0.4
-5.5
39
Lumber and its products
731,289
794,10f3
29,878 31,066
18
Brick, tile and pottery
-2.7
+0.4
Chemical products
8,423 8,623 -2.3
232 457 -4.6
221.806
8
Cement
-7.1
-0.2
Leather
products
312,252
339,015 -7.9
15.087 15,408
Glass
-1.0
-5.8
13
Rubber products
4,136 4.081 +1.3
107,764
103,78.5 +3.8
34
Lumber products
-14.0
-2.8
Paper and printing
971.748 +1.8
30.451 30,194 +0.9
988,996
14
Lumber and planing mills
-0.4
-1.7
13
Furniture
-22.4
-4.9
Wooden boxes
-14.7
5
+0.3
Construction and contracting
28
-0.3
-1.7
Manufacturing Activities in Chicago Federal Reserve
16
Building
-7.2
-3.2
Street and highway
-3.8
+24.4
3
District At Lower Level in November -Midwest
General
-0.4
9
+1.0
16
Chemical products
+0.5
Distribution of Automobiles.
-0.4
10
Chemicals and drugs
+2.4
-1.2
6
Paints and varnishes
-1.3
With reference to manufacturing activities and output in
+0.4
29
Leather and rubber products
-3.6
-2.9
its 'District during November, the Jan. 1 Monthly Business
9
Leather tanning
+1.6
+0.2
12
-4.8
-9,7
Shoes
Conditions Report of the Federal Reserve Bank of Chicago
-0.9
4
Leather products, other
+0.2
Rubber tires and goods
-1.0
4
-13.5
says:
34
Paper and printing
-1.2
.0
Slzoe itfamtfacluring, Tanning and Hides.
-0.5
7
Paper and wood pulp
-2.3
3
Paper boxes and bags
+1.8
+11.3
Shoe manufacturing establishments in the Seventh Federal Reserve
24
Printing and publishing
+0.2
-0.1
district operated at a lower level during November than in either the
15
Nov. 15
2.3%
2.2%
4.9%
315,000
6.3%.
5.3%
6.4%
8.2%
0.6%
3550
THE CHRONICLE
preceding month or a year ago, with shipments totaling 0.6% less than
production. Stock shoes reported on hand Dec. 1 by 26 of the reporting
concerns were equivalent to 76.3% of the volume of their November shipments. Unfilled orders on the books of 22 companies provided for six and
one-half weeks'future operations at the current rate of distribution.
CHANGES IN THE SHOE MANUFACTURING INDUSTRY IN NOVEMBER,
1927, FROM PREVIOUS MONTHS.
October November Companies
Included.
1926.
1927.
31
-17.4% -19.1
Production__
31
-18.0
-18.8
Shipments
27
+7.6
+3.7
Stock shoes on hand
23
+0.2
+4.2
Unfilled orders
and a
October
from
November
in
decreased
District leather production
year ago, with half the firms reporting gains; the total value of sales billed
to customers declined also in both comparisons, according to reports sent
direct to this bank by representative tanners. Prices continued to trend
slightly upward.
Chicago trading in packer green hides, and in calf and kip skins was less
active in November than in the preceding month; shipments from the city
and purchases by district tanners were reported in excess of October.
Prices firmed.
Automobile Production and Distribution.
Members of the National Automobile Chamber of Commerce produced
during November 109,513 passenger cars in the United States, representing a drop of 40.1% from the preceding month and a decline of 22.4%
from a year ago. Truck output of 23,371 was 33.8% below October and 1.9%
above November, 1926.
November distribution data for the Middle West, gathered by this bank,
Indicate a continuance of the trend shown in the three preceding months,
both wholesale and retail sales declining in the monthly and year-to-year
comparisons. Inasmuch as sales last year at this time were well below
the volume of 1925, the current comparisons with the last-mentioned year
are decidedly unfavorable. Stocks of new cars on November 30 were not
large, and fell below the number held on October 31 and on the corresponding date of 1926; stocks of used cars were likewise less in number than
a year ago, showing little change from the preceding month. Used car sales
declined from October, but increased over November last year. Defered
payment sales of 32 dealers reporting the Item averaged 44.8% of their
total retail sales in November, compared with 42.2 in the preceding month
and 38.5% a year ago.
MIDWEST DISTRIBUTION OF AUTOMOBILES.
(Changes in November, 1927, from previous months.)
October November Companies
Included.
1928.
1927.
New ears
Wholesale35
-29.3%
-39.3
Number sold
35
-38.3% -21.3
Value
Retail84
-32.7
-32.8
Number sold
84
-9.6
-25.4
Value
On hand November 3055
-5.1
-8.3
Number
55
-1.5
+0.4
Value
Used cars84
,+9.2
-15.9
Number sold
Salable on hand53
-13.6
-0.7
Number
53
+4.9
+1.2
Value
(VOL. 127,
Construction activity held up during November and the value of contracts awarded in the district, and the value of building permits issued
In leading cities, was the largest for November in recent years. The
returns show a greater number of permits for new buildings were issued
during the year to Dec. 1 than in the preceding year, although the estimated value of permits was smaller.
Regarding retail and wholesale trade the bank says:
Trade.
Relail.-Salea at retail stores throughout the district during Novembe
reflected seasonal expansion in nearly all lines and the combined tote
for all stores reported was about 2% above that for October and 1.1%
above that for November 1926. At the middle of December reports
indicated retail trade was in about the same volume as a year ago.
Sales in November at 36 department stores reporting to the Federal
Reserve System were. in dollars, 5.3% larger than in October and 0.8%
larger than in November 1926. Eighteen stores reported their sa.es
were larger than a year ago, while 18 stores, mostly in the smaller cities,
reported decreases. -The November business of department stores carried
the accumulated total of sales for the first 11 months of 1927 to 1.8%
above that for the same period in 1926.
Sales of men's and women's clothing and shoes at single line stores were
affected to an extent by unseasonably warm weather during the greater
part of the month and there were decreases both as compared with the
preceding month and the same month in the preceding year. Sales at
retail furniture stores were rather quiet during the forepart of the month.
but showed considerable activity at the close. Sales at chain stores in
this district during the 24 business days of November were 4.8% smaller
than in the 26 business dayes of October, but were 8.1% larger than in
November 1926.
The percentage of Increase or decrease in November sales of all reporting
stores, compared with sales in October 1927 and November 1926, is shown
in the following summary
Sales for November 1927
Compared to
Nov. 1926.
Oct. 1927.
Department stores
+5.3
+0.8
-1.5
Apparel stores
-4.2
Shoe stores
-9.0
-15.0
Furniture stores
-28.5
-7.0
Chain stores
+8.1
-4.8
Wholesale.-Distributlon by wholesale firma in this district whose trade
statistics are compiled for publication in the "Monthly Review" was
smaller in November than in October, though if allowance be made for
the difference in the number of business days it would appear the average
daily volume for the month would be slightly above tho average for the
preceding month. The combined sales volume for November, however,
showed a small increase over that for the corresponding month in 1926.
The summary of wholesale reports shows sales in each of the six lines
reported were smaller in November than in October, while as compared
with November 1926 sales of furniture, drugs and hardware were larger,
and sales of dry goods, groceries, and millinery were smaller.
Reports of firms on November wholesale trade said underlying conditions in their trade territory were generally good and the best in recent
years; but becuase of a continuance of the policy of buying from hand to
mouth, with retail merchants not inclined to anticipate their wants by
buying in advance of the season, the business of wholesalers was restricted.
Wholesalers of dry goods reported that, as the heaviest fall orders were
filled early, sales in November were considerably under those for October,
while the unfavorable comparison with November 1926 could be partly
Business Conditions in Kansas City Federal Reserve accounted for by unseasonably warm weather affecting the sale of winter
District-Decline in Industrial Output-Expan- goods. A moderate contraction in the consumption of textiles was disclosed by the reports. Orders taken for spring goods to be shipped in
sion in Retail Trade.
the early part of 1928 were reported in excess of orders taken in the same
The Federal Reserve Bank of Kansas City reports that period a year ago.
with wholesalers of groceries continued moderately heavy and
"November brought a decline in the industrial output in In Trade
about the same daily volume as In the preceding month, but showing
the Tenth Kansas City District, owing partly to the a decrease as compared with November 1926. The hardware trade exfewer working days in the month and partly to the slowing hibited considerable activity and the wholesale furniture trade was sublarger than a year ago. Wholesalers of drugs reported the
down of operations of some industries for the winter season." stantially
volume of their business was heavy and above that of a year ago.
"Distributive trade by wholesalers in six leading lines was
smaller than in October," says the bank, "although the
total of sales of all firms reporting was larger in dollars Business Conditions in San Francisco Federal Reserve
District.
than in November 1926." In its Jan. 1 "Monthly Review,"
Newton, Chairman of the Board
B.
Isaac
to
According
the bank also states:
Retail trade expanded and sales of department stores during the month and Federal Reserve Agent of the Federal Reserve Bank of
and 11 months of 1927 were larger than in the corresponding month and San Francisco, "a contmuanoe of previously noted declines
11 months in 1926. With the Christmas spirit abiding, the holiday trade
in industrial activity, seasonal expansion in trade and mainIn December was close to the previous high records.
The final 1927 crop report of the United States Department of Agri- teuance of sound credit conditions characterized the business
culture and of the State Boards of Agriculture, released to the public on situation in the Twelfth Federal Reserve District during
Dec. 19, added about 17,600.000 bushels to the corn crop, but on other
arops there were no important changes in estimated production from November." "Crop yield and marketing statistics which
the figures presented one month earlier. The value of all crops pro- became available during the month furnished further eviduced in the States and parts of States which form the Tenth District,
dence that generally satisfactory financial returns would he
as estimated, was substantially larger than the farm value of crops
produced in 1926. The index figure on prices of agricultural commodities realized from the year's operations in agriculture and livewas above that for non-agricultural commodities since July.
stock raising," says Mr. Newton, whose statement for the
The livestock industry moved into stronger position as the year adissued Dec. 27, continues:
vanced, due to the larger crops of corn, hay and other stock feeds, and month,
to advances in prices of cattle. While receipts of meat animals, notably
of cattle and hogs, at primary markets in November and 11 months were
smaller than in the same month and 11 months of the preceding year,
the increased value of cattle and heavier weights of livestock more than
offset the marked decline in hog prices and gave the year's marketing,
a greater value than that for meat animals marketed in 1926.
The dairy industry, and also the poultry industry, expanded during
the year and the value of their products marketed was the largest in recent
years. according to the reports.
The production of flour declined seasonally in November from the
higher rate maintained during the summer and fall, although the output
for 11 months exceeded that for the like period in 1927, this district ranking
first in flour production. Meat packing operations declined seasonally
during the month, owing to the smaller supplies of livestock.
Production of crude petroleum during November was at a smaller
daily average than in any month since April, but Is exceeded production
in November 1926 and for the first 11 months of the year was 38.6%
larger than in the like period in 1926. The production of soft coal and
of lead and z'nc ores was smaller than In either October or Novembtr a
year ago, and the accumulated production for the year to Dec. 1 ran behind
that for 1926. While prices of practically all minerals during the yam*
were lower than those for the preceding year, it was estimated the value
of all mineral production in 1927 would be larger than that of the preceding year on account of the heavy increase in crude petroleum produced.
The incidence of demand for credit has tended to shift from agriculture
and industry to trade during recent weeks. Commercial loans of reporting
member banks are not now so large In amount as they were a year ago, but
It is probable that industry and trade have been accommodated, to some
extent, by the proceeds of loans on securities, which are in record volume.
Demand deposits at reporting banks have increased since the mid-summer
low point and growth of time deposits has continued, so that total deposits
of these banks on Dec. 14 were 17 million dollars, or 0.9%, larger than six
months ago, and 79 million dollars, or 4.6%, larger than a year ago. As
total loans of the banks increased but 4 million dollars over the year period,
most of this increase in deposits is reflected in a substantial rise in investment holdings. More extended use of discount privileges at the Reserve
bank has accompanied the November-December expansion in demand for
credit but the amount of Federal Reserve funds in use Is still relatively
small. Discount holdings of the Federal Reserve Bank of San Francisco
Increased from 29 million dollars to 44 million dollars during the four weeks
ended Dec. 14 1927, and were 16% larger on that date than one year ago.
Interest rates for commercial paper hardened slightly during the past month.
Reported data on building, lumbering, mining and flour milling show
slight declines in activity during November, as compared with one month
ago and one yeir ago. Figures of industrial employment tend to confirm
this evidence of a moderato decrease in production. Distribution and trade,
on the other hand, have been well maintained during recent months at
levels equal to or slightly above those of a year ago. This•bank's Index Of
DEC. 31 1927.]
THE CHRONICLE
retail (department store) sales (1923-1925 daily average = 100) stood at
116 in November 1927. 113 in October 1927 and 112 in November 1926,
allowance being made for seasonal fluctuations. Our seasonally adjusted
Index of sales at wholesale (1923-1925 monthly average = 100) stood at
104 in November 1927 and 1926. The figure for October 1927 was 96.
The comparison with one year ago makes no allowance for a decline of about
2% in the general level of wholesale prices during the past year.
The generally satisfactory outcome of the agricultural year has been
marred only by the marketing difficulties of certain groups of producers,
notably some of the deciduous fruit growers of the Pacific Coast States
and the potato growers of Idaho. In evaluating the results of the agricultural year, it should be noted that the farmers of the district will not be
obligated to use so large a proportion of the year's financial retursn In Uquldating old debts as has been necessary during each of the past several yea 2,
Canadian Newsprint Statistics for November-Increase
in Exports of Wood Pulp and Paper.
Exports of wood pulp and paper from Canada for November were valued at $16,501,663, according to a report issued
by the Canadian Pulp & Paper Association. This was an
increase of $1,772,402 over the total for October and of
$950,138 over that for November 1926, it is learned from the
Montreal "Gazette," from which the following is also taken*
Increases were shown both under wood pulp and paper, the value of the
wood pulp exported being $4.144.966 and of paper 812.356.697. as compared with October totals of $3.707,222 and $11.022.039. respectively.
Details for the various grades of pulp and paper are as follows:
November 1927.
PulpHechanical
lulphite bleached
;Moline unbleached
iulphate
icreenings
Papergewsprint
Wrapping
look (cwts.)
Writing (cwts.)
kll other
November 1926.
Tons.
24.123
21,395
16.983
14.313
2.384
Value.
$886.295
1,705.417
859,723
845.847
47.584
Tons.
39.241
16,857
16.857
15,868
Value.
$1,178.957
1,319.714
1.249.256
970.508
79,198
$4,144,988
94.542
$4,718.435
179.989
1.068
8.767
2.558
811.771.491
116.200
65,782
20.168
383.056
153.729
1.927
6.515
719
310,118.572
225.303
54.882
5,648
428,685
812.356.607
310.833.090
For the 11 months ending Nov. 30, the exports of wood pulp and paper
were valued at $161,277,363 as compared with $158.289,495 in the corresponding 11 months of 1926. an increase for the current year of $2,987.868.
There was a decline in the value of pulp exports In this period, the total
value being $43,183.395, compared with $47,722 945 in the 11 months of
1926. but exports of paper increased in value from $110,566,550 in 11 months
last year to 8118.093.968 for this year.
Details are given below:
11 Months 1927.
Mechanical
Sulphite bleached
Sulphite unbleached
Sulphate
Screenings
PaperNewsprint
Wrapping
Book (cwts.)
Writing (cwts.)
All other
Tons.
240.558
218,362
175.264
154,825
16.381
$7.194.336
$16,976.257
9.401.191
9,300,335
311.276
805,390
1,712.665
13.161
94.641
14.089
11 Months 1926.
Tons.
350.787
185,723
230,322
154,899
Value.
310.576.242
14,490.697
13.031,900
9.624.106
$43.183,395
921,731
$447.722.945
$112.143.207
1,483,338
652.661
112.827
3.701.935
1.575.578
17,493
55.282
17.202
$103,745.021
2.141.897
473.070
128.378
4.078,184
$118,093.968
3110.566.550
Pulp wood exports for the 11 months amounted to 1,489,313 cords
valued at $15,162,484, as compared with 1.316,189 cords valued at $13.287,074 in the corresponding months of 1926.
Holiday and Seasonal Decline in Lumber Industry.
The usual holiday relaxation and suspension of operations
for semi-annual repairs resulted in a heavy falling off in
lumber production last week, as compared with the week
before,says the National Lumber Manufacturers Association.
Shipments held up relatively well, but orders fell off quite
noticeably. The number of reporting mills was 110 less than
the week before, and this makes comparison somewhat uncertain. As compared with a year ago, 75 fewer mills reported a larger production and. likewise with shipments and
orders, so that it appears that the holiday recession in the
lumber industry was less than usual.
In the softwood industry, there were notable increases in
production and new business and shipments were about the
same last week as for the immediately preceding week, when
56 more mills reported. In comparison with the same period
a year ago, there were increases in all three factors, especially
in new business.
The number of hardwood mills reporting last week is so
much less than usual that it is difficult to draw any conclusions for this wing of the industry, but it is apparent that
there is a heavy seasonal curtailment, and that this curtailment is not so great as last year, there being apparent
increases in shipments and new business, declares the
National Association from which we quote additional data
as follows:
3551
Unfilled Orders.
The unfilled orders of 210 Southern Pine and West Coast mills at the
end of last week amounted to 520.285,393 feet, as against 560.717,427 feet
for 214 mills the previous week. The 97 identical Southern Pine mills in
the group showed unfilled orders of 188.620,192 feet last week, as against
192.714.816 feet for the week before. For the 113 West Coast mills the
unfilled orders were 331,665,201 feet, as against 368.002.611 feet for 117
mills a week earlier.
Altogether the 279 comparably reporting softwood mills had shipments
104%. and orders 96%. of actual production. For the Southern Pine mills
these percentages were respectively 98 and 91; and for the West Coast
mills 101 and 86.
Of the reporting mills, the 279 with an established normal production
for the week of 197,901,608 feet, gave actual production 87%. shipments
91% and orders 83% thereof.
The following table compares the lumber movement, as reflected by the
reporting mills of six softwood, and two hardwood, regional associations.
for the three weeks indicated.
Past 1Veek.
Corresponding Week.
1926.
Preceding Week 1927
(Revised.)
Softwood. I Hardwood. Softwood. Hardwood. Softwood. Hardwood.
Mills
279
75
338
87
335
129
Production_ 172,792,000 8,270,000 162,389,000 9,496,000 218,768,000 18,024,000
Shipments-. 180,050,000 9.189,000 151,575.000 8,814,000 182,531.000 16,165,000
Orders
165.064.000 13.716.000 129,981.000 9.143.000 197.050.000 19.229,000
The mills of the California White and Sugar Pine Association make
weekly reports, but not being comparable, are not included in the foregoing tables or in the regional tabulation below. Twelve of these mills,
representing 32% of the cut of the California pine region, gave their production for the week as 5.286.000 shipments 8.910.000. and new business
7.784,000. Last week's report from 18 mills. representing 52% of the cut
was: Production 10.567.000. shipments 13,737,000 and new business
11.246.000.
West Coast Movement.
The West Coast Lumbermen's Association wires from Seattle that new
business for the 113 mills reporting for the week ended Dec. 24 was
14%
below production, and shipments were 1% above production. Of all new
business taken during the week,46% was for future water delivery, amounting to 36.895.767 feet, of which 26.506.583 feet was for domestic cargo
delivery and 10.389.184 feet export. New business by rail amounted to
39,401.610 feet. or 49% of the week's new business. Fifty-five per cent of
the week's shipments moved by water, amounting to 51.089.223 feet, of
which 31.199.668 feet moved coastwise and intercoastal, and 19.889,555
feet export. Rail shipments totaled 38.805.757 feet. or 41% of the week's
shipments, and local deliveries 3.946.261 feet. Unshipped domestic cargo
orders totaled 110,394.437 feet. foreign 109,555,606 feet and rail trade
111,715,158 feet.
Southern Pine Reports.
The Southern Pine Association reports from New Orleans that for 97
mills reporting, shipments were 2.15% below production and orders were
9.34% below production and 7.35% below shipments. New business taken
during the week amounted to 51.584.032 feet, (previous week 60.120.364)1
shipments 55.678.656 feet. (previous week 60.140.925): and production
56,900.556 feet. (previous week 65.689.520.) The normal production of
these mills is 67.378,617 feet. Of the 91 mills reporting running time. 54
operated full time. 18 of the latter overtime.
Two mills were shut down.
and the rest operated from one to six days.
The Western Pine Manufacturers Association of Portland. Ore., with
five more mills reporting, shows a notable decrease in production, shipments about the same, and new business well In advance of that reported
for the preceding week.
The California Redwood Association of San Francisco, Calif- did not
report this week.
The North Carolina Pine Association of Norfolk. Va., with 10 fewer
mills reporting, shows a slight decrease in production, a nominal increase
in shipments and a heavy decrease in orders.
The Northern Pine Manufacturers Association of Minneapolis, Minn.,
with one lees mill reporting, shows some decreases in production, a little
increase. In shipments, and new business slightly less than that reported
for the previous week.
The Northern Hemlock and Hardwood Manufacturers Association of
Oshkosh, Wis. (in its softwood production) with five fewer mills reporting.
shows a nominal increase in production and some decreases in shipments
and new business.
Hardwood Reports.
The Northern Hemlock and Hardwood Manufacturers Association
of Oshkosh. Wis., reported from 11 mills (five fewer mills than reported
for the week before) a slight decrease in production, a notable decrease in
shipments and a heavy decrease in orders.
The Hardwood Manufacturers Institute of Memphis, Tenn., reported
from 64 mills (49 fewer mills than reported for the week earlier) bean'
decreases in all three factors. The normal production of these units is
10.752,000 feet.
West Coast Lumbermen's Association Weekly Report.
'On hundredseventeen mills reporting to the West Coast
Lumbermen's Association for the week ended Dec. 17 manufactured 116,318,897 feet, sold 97,184,885 feet and shipped
84,116,013 feet. New business was 19,134,012 feet less
than production and shipments 32,202,884 feet less than
production.
COMPARATIVE TABLE SHOWING PRODUCTION, NEW BUSINESS;
SHIPMENTS AND UNFILLED ORDERS.
Week EndedDee. 17.
Dec.10.
Dec. 3.
Nov.28.
Number of mills reporting
117
116
114
115
Production (feet)
116,318.897 118,086,997 117,866,559 108,167,215
New business (feet)
97,184.885
99,320,737
95.984,868
90.684,414
Shipments (feet)
84,116,013
85,300,298 108,095,389
80,112,268
Unshipped Business116.919.369 110.300.029 106.616,286 106.765,476
Rail (feet)
Domestic cargo(feet)_ _ _ 122,745.893 110.774,764 101,501,175 110,854.275
128,337,349 122,408,725 126,589.601 132.679.329
Export (feet)
Total (feet)
368,002.611 343.483,518 334.707,062 350.299.080
First 50 IVeeks of1927.
1926.
1925.
1924.
Average number of mills_
95
106
113
122
Production (feet)
5032.910.189 5.265,842.219 5,035,382,260 4,715,264,191
4,877.581,851 5,222.876.563 5,177,076,981 4.780.167.683
New business (feet)
Shipments (feet)
4,898,624.303 5,239,818,457 5,162,329,616 4.793,796,182
3552
[VoL. 125.
THE CHRONICLE
Secretary Jardine on the High Price of Beef.
A warning to manufacturing communities in the East
which have threatened boycotts against beef was sounded
on Dec. 21 by Secretary Jardine, who (according to Associated Press accounts from Washington) said a boycott
could react two ways, inasmuch as the cattle-growing country was a heavy user of manufactured articles. A statement issued on Dec. 21 by the Secretary explaining why
cattle prices have advanced is given as follows in the
"United States Daily":
The present prices for beef, which are causing complaints and threats
of boycott in some places, seem unduly high only because they are compared with prices of the past few years, which were ruinously low to the
cattle grower. This year for the first time since 1920 cattlemen as a
whole have received fairly remunerative prices for their cattle. In the other
six years cattle prices were so low most of the time that large numbers
of producers were forced out of business and cattle numbers have been
drastically reduced.
At various times in the past two years when I have addressed gatherings of cattlemen I have called attention of the public to the fact that
the present situation was almost certain to develop. The Department
also has issued many statements pointing out that cattle slaughter was
greatly exceeding production and that sooner or later a sharp reduction
in slaughter and higher prices must result.
such an extent that the hotel men had to explain the situation." It was not the intention of the association or its
members, he explained, to do anything to disturb the interests of those connected with the beef industry. Mr. Clark
declared it was the hope of the hotel men that the production of beef would increase so that quality might be improved and prices reduced.
Chicago Federal Reserve Bank on Meat Packing
Industry.
In its review of the meat packing industry, in its Jan. 1
Monthly Business Conditions Report, the Federal Reserve
Bank of Chicago says:
November production at slaughtering establishments in the United States
totaled greater than in October, increased activity in the pork section more
than offsetting recessions in other departments. The volume continued
slightly under a year ago. Employment for the last payroll in the month
increased 1.3% in number, but owing to the Thanksgiving holiday, decreased 1.1% in hours worked and 1.8% in amount earned in comparison
with corresponding figures for October. Domestic trade averaged fairly
good in November, considering the heavy consumption of poultry at this
season. The total value of sales billed to domestic and foreign customers
by fifty-eight meat packing companies in the United States declined 17.5%
from October,1927,and 9.6% from November last year. Trade in domestic
markets averaged fair at the beginning of December. Inventories at packHigher Distribution Costs.
ing plants and cold-storage warehouses in the United States totaled less on
This was a situation that should have been of vital interest to the con- Dec. I than for the preceding month or the 1922-26 Dec. 1 average, but
suming public. As long as cattle prices were low and beef cheap, how- slightly exceeded those of a year ago. Beef,lamb, and miscellaneous meat
ever, consumers were unconcerned as to the hardships of the cattle in- holdings increased over Nov. 1, while all items, with the exception of Pork,
dustry or as to the future of the beef supply. Consequently the situa- decreased in comparison with last year; lard and mutton stocks were above
tion was allowed to work itself out through the uncontrolled action of eco- the 5-year average. Chicago quotations for pork, veal, and lard declined
nomic forces, with the result that the reduction in herds probably went in November from the preceding period; those for beef advanced to slightly
too far and cattle slaughter for the next few years must be reduced much higher levels; lamb and mutton prices remained practically unchanged from
below the average of that of the last five years if the cattle business October. A smaller tonnage of packinghouse products moved for export
is to be re-established on a basis where the number of animals slaughtered in November than in the preceding month. Foreign demand remained fair
does not exceed the number of young animals raised.
for lard and rather dull for meats. Dec. 1 consignment inventories abroad
Another factor in the situation is that distribution costs are much higher and in transit to Europe were reported under those at the beginning of
than before the war. This increase is due to a very considerable extent November. European prices averaged slightly nearer parity with Chicago
to increasd wages and salaries in the, various industries and trades inter- than a month previous.
ested in this distribution. Even when cattle prices in recent years
were actually below prewar prices the cost of beef to the consumer was Report on Hosiery Industry in Philadelphia Federal
high, compared with prewar prices. Now, with the prices of cattle no
Reserve District.
higher than necessary to insure reasonable returns to the industry and
Insure adequate future supplies, this increase in the cost of cattle
The following report compiled by the Bureau of the Censlaughtered must be paid by the consumers of beef.
activities of the hosiery mills in the Third
Excess of Cattle After War.
Here is what has taken place in the cattle industry in the last ten
years: Cattle production was greatly expanded during the war in response to demands for adequate supplies of beef for the allied forces.
When the war closed the industry found itself with the largest number of
cattle on hand and the largest potential production capacity in the history of the country-both much in excess of ordinary peace-time requirements-at remunerative prices.
This situation had to be liquidated and as cattle numbers can be increased or decreased only gradually it took six years to complete this
liquidation. During 1920 and 1921 there was a decline in cattle prices of
over 60% In 16 months and for the next four years enforced liquidation
held prices at extremely low levels, actually below prewar prices over
a considerable period of time. During this period cattle slaughter greatly
exceeded production and cattle numbers declined 11,000,000 head or 17%
in seven years.
While cattle prices have advanced almost continuously during 1927 the
sharp advance came after the middle of the year, particularly in the better
grades of cattle and beef, which, however, make up but a minor proportion of the total supply. The shortage of these better grades this Fall is
directly traceable to the situation in the latter half of 1926, when the
market was overloaded with supplies of well finished cattle, with resulting low prices and heavy losses to cattle feeders of the Corn Belt
States who produce practically all of these high grades of cattle.
For example, the supply of choice and prime cattle at Chicago during
September, October and November this year was only 80% as large as
for the period a year ago and only 50% of the five-year average for these
months.
Expects Smaller Supplies.
It looks very much as if cattle supplies during the first half of 1928
would be smaller than in 1927 or in any other year in the last five, inasmuch as shipments of stocker and feeder cattle into the Corn Belt since
July 1 this year were over 18% smaller than last year and 28% below
the five-year average for the period. It is during these latter months of
the year that cattle feeders buy their supplies of unfinished cattle for
feeding.
Barring abnormal conditions, such as widespread drought,
supplies of all cattle for slaughter during each of the next two years will
probably be small, as compared with any of the last four years.
Incidentally the situation in the hog market is almost the reverse of that
in the cattle market. Prices of hogs and pork products are now the lowest
in over three years. At present prices hogs are not paying for the corn
fed to them. Unless this situation is improved shortly, a substantial reduction in hog production within a year or two may be expected. With
the probable reduced supplies of beef during the next two years, consumers
have an interest in seeing to it that hog production is not also similarly
reduced.
Boston Hotel Men Not Attempting Boycott Against
Use of Beef.
Following the warning by Secretary of Agriculture Jardine to manufacturing Communities in the East against a
boycott, George H. Clark, Secretary of the City of Boston
Hotel Association, stated on Dec. 21 that the hotel men of
that city who recently asked their patrons to refrain from
eating beef until prices were reduced or the quality improved had no intention of threatening a boycott.
Mr. Clark stated that "complaints of the poor quality and
high prices of beef have been coming from the public to
sus, showing the
Federal Reserve District in November and a comparison
with those in October, is made available by the Federal
Reserve Bank of Philadelphia:
en's
Fuji-fashioned.
Men's
Seamless.
Women's
Pull-fashioned.
In Dozen
P. C.
P. C.
Change
Change
from
from
Oct.
Nov.
Nov. Oct.
1927. 1927. 1927. 1927.
Production _ _ 25,718
Shipments
28,281
Finished stock
end of month_ 33,888
Orders booked_ 32,239
Cancellations received
1,779
Unfilled orders
end of month_ 39,756
+23.4 287,828 +1.7 719.962
+2.0 308,310 +11.6 776,267
P. C.
P. C.
Change
Change
from
from
Oct.
Nov.
Oct.
1927. 1927. 1927.
+5.1 132,707 -15.9
+5.8 116,005 -21.8
-20.0 350,908 -9.5 860,897 -4.5 358,430 +8.8
-13.7 259,143 -17.2 1,035,295 +37.1 86.784 -34.4
+149.9 18,543 +26.9
66,568 +179.7
1.357 -60.8
+19.5 462,288 -11.1 1,834,269 +15.4 85.396 -40.1
Bogs' and
Misses'.
In Dozen
Pairs.
Nov.
1927.
Women's
Seamless.
Children's and
Infants'.
Athletic
and Sport.
P. C.
P. C.
P. C.
Change
Change
Change
from
from
from
Oct.
Nov.
Oct.
Nov.
Nov. Oct.
1927. 1927. 1927. 1927. 1927. 1927.
Total.
Nov.
1927.
P. C.
Change
from
Oct.
1927.
Production _ 38,046 +0.3 202,025 +36.0 67,460 -5.7 1,473,746 +4.8
42,868 +9.1 85,414 +24.0 74,099 +26.6 7,431,244 +5.8
Shipments
Finished stock,
end of month_ 56,902 +20.8 451,434 +25.1 40,127 -17.1 2,142,586 +0.9
Orders booked_ 29,536 -47.1 131,747 -42.8 87,021 +8.3 1,661,765 +3.6
Cancellationsre920 -19.4 2.106 +28.3 3,653 -40.3 94,926 +84.5
ceived
Unfilled orders,
end of month_ 86,181 +0.3 888.013 +5.9 172,011 +5.7 3,548,514 +8.2
December Pig Survey for the United States.
An increase in hog production is shown by the Dec. 1
pig survey made by the United States Department of
Agriculture in co-operation with the Post Office Department,
through the rural carriers, and made public on Dec. 23.
The Department says:
An increase of 11% in the fall pig crop of 1927 over the fall crop of 1926
for the 11 corn belt States and also for the United States as a whole Is
shown by the Dec. 1 1927 Pig Survey Report issued by the Department of
Agriculture. The survey, covering approximately 150,000 farms, was
made in co-operation with the Post Office Department through the rural
mail carriers. The number of sows that farrowed this fall increased only
9% for the corn belt and 10% for the United States, but there was a small
increase in the average size of Itters saved this fall.
The number of sows bred or to be bred for farrowing next spring as
reported is 1% larger for the corn belt and 6% larger for the United States
than the number that actually farrowed last spring. These figures indicate
that the number of sows that will farrow next spring will be from 6 to 8%
less for the corn belt States and 3 to 5% less for the United States than
the number that farrowed last spring, allowance being made for the average
decline between breeding intentions reported in December and actual
farrowings. reported the following June, as shown by past surveys.
Increases of about 5% for the corn belt States and 6% for the United
States in total pigs saved, both spring and fall, this year compared to
last, Is shown by this year's surveys. These increases are equivalent to
DEC. 31 19271
THE CHRONICLE
between 24 and 3 million pigs in the corn belt and about 5 million for
the Dulled States. Since 'cholera losses in the corn belt States this fall
were below the reported cmusual losses of the fall of 1926, an increase la
the supply of hogs for slaughter from these States is probably somewhat
larger than the above indicated increase in pigs reported saved. The
increases in areas outside the corn belt this year indicate considerably
larger contribution from these areas to commercial hog supplies the coming
year than for several years.
The distribution of the corn crop in the corn belt States is reflected in
the hog situation as shown by the December Pig Survey figures. The
Increase in sows farrowed this fall for the group of States east of the Mississippi, where the corn crop is short, was only 2%, while in the States west
of the river it was 15%. Most of the States east of the Missouri River
report actual decreases in the number of sows bred for farrow next spring,
while all of the States west of this river, where the corn crop was unusually
large, show increases.
Of the regions outside the corn belt,the Far Western and North Atlantic
report the largest increases in sows farrowing this fall over last, the former
23% and the latter 15%. The South Atlantic reports 11% increase,
and the South Central 7% increase. The Southern States, however,
report the largest increases in sows bred for next spring, the South Atlantic
30% and the South Central 18%. The North Atlantic reports an increase
of 10% and the Far Western 13%.
Fall
Fall
1927
1927
Corn- Cornpared pared
with
with
Fall Spring
1928. 1927.
Sows Bred (or
to be Bred)
Pigs for Spring FarSaved rowing, 1928.
Fall
1927
CornCorn- pared Cornpared
with
pared
with
Sows
wills
Fall
Far- Swine
1926. rowed
Over
Spring
Sir
1927. Mos.
OM(
:
Indiana
Illin Ws
Mid laigan
Win:onsin
%
104.1
102.3
103.6
99.9
96.6
%
87.0
75.7
54.7
77.7
45.9
%
101.0
111.7
111.6
104.5
100.0
%
98.0
99.8
103.9
93.3
99.2
%
23.7
24.8
21.7
26.6
30.4
%
46.0
46.8
59.8
42.1
55.5
No.
5.6
6.1
5.9
6.6
6.3
No.
5.8
5.6
5.5
6.3
6.1
No.
6.0
6.0
5.8
6.6
6.3
.N.Centml
Minnewts__
Sow a
MisWel
No. Dakota
So. Dakota_ _.
Nebraska
RatiStal
102.2
97.8
120.6
110.0
131.3
114.5
125.3
113.2
64.3
27.8
26.5
76.8
31.8
17.4
33.2
80.2
107.0
94.1
120.6
112.6
122.7
119.9
124.0
110.8
100.8
95.3
94.8
105.8
105.7
109.3
106.9
122.3
24.3
24.4
222
23.0
26.3
24.0
22.9
25.3
52.3
70.6
75.7
48.1
77.3
81.8
72.7
50.2
5.98
5.6
5.5
6.1
5.5
5.4
5.3
5.8
5.74
5.8
5.5
5.9
5.9
5.2
5.4
5.9
8.00
5.8
5.3
5.8
5.8
5.1
4.9
5.8
r.N.Central 115.0
35.6
114.7
101.7
23.3
69.1
5.66 5.65 5.38
urn Belt
109.3
44.8
111.3
101.3
23.6
63.6
5.80 5.68 5.55
Mat
Mal
N. Hampshire.
Ver moot
MatssachusettsRh(sle IslandCoymeetieutNonv York....
Neiv Jersey...
Penanylvania....
101.0
123.1
97.2
153.1
163.2
110.2
133.3
102,4
107.7
97.1
101.5
98.3
98.2
155.0
102.9
112.8
93.9
110.3
104.7
142.5
89.0
157.7
117.3
81.7
134.9
98.4
110.6
115.0
106.1
112.5
115.4
125.0
95.2
126.6
98.1
102.8
46.1
49.5
42.2
41.9
36.2
23.4
32.7
25.1
21.0
41.2
37.6
38.9
41.7
89.4
49.0
42.0
48.1
44.4
7.1
7.8
7.0
5.9
4.8
4.7
7.1
5.8
6.4
6.8
6.7
7.6
5.7
6.7
6.4
7.0
6.2
6.2
6.7
6.8
7.5
5.6
6.1
6.4
7.1
5.7
6.6
ie. Atlantic
Delaware
Maryland
Vlt rinia
W.Virginia.. _
No . Carolina-So.Carolina___
Get:rirla
Florift
115.0
103.3
109.6
116.5
109.5
103.0
131.0
111.9
95.0
107.8
133.8
114.6
109.3
109.8
109.0
146.8
114.1
125.7
117.6
106.9
120.0
119.3
109.7
102.8
128.7
111.5
91.2
109.7
113.9
112.3
109.9
104.0
119.2
150.4
144.4
139.1
27.6
21.8
23.3
20.7
22.4
19.7
17.4
16.9
14.9
43.7
43.3
42.7
48.5
44.5
52.7
53.4
57.8
59.4
6.57
6.2
6.5
6.6
6.8
6.1
5.3
5.6
5.3
6.50
6.0
5.9
6.4
6.8
6.1
5.4
5.6
5.5
6.60
8.9
6.3
0.8
6.6
6.1
5.9
5.9
5.2
So. Atlantic_
Re:nucky
Termessee
Alabarna
Mlfssiseippl._
Lotilahum
Te)as
Ok ahoma
Arlcansas
111.1
99.9
114.9
116.0
108.1
84.6
115.9
112.0
90.0
117.1
91.0
100.4
138.0
116.0
129.8
115.9
109.0
93.1
111.3
97.6
114.6
109.0
109.4
80.9
111.9
118.2
90.3
130.3
102.4
102.8
137.0
119.2
143.9
118.5
125.9
105.7
18.2
22.3
18.3
15.4
14.8
17.2
23.7
34.1
19.4
53.6
45.3
48.6
55.9
55.1
57.0
46.4
37.8
52.6
5.95
6.2
6.1
4.8
5.7
5.3
5.5
5.8
5.4
5.90
6.3
6.1
5.2
5.6
5.5
5.7
5.5
5.4
gq..11!W.t,OW
0. Central_
Mc,ntana
WY,om log
Co lorado
Ne w Mexico-Artsons
IIUth
Ne wads
Ids.ho
WeshingtonOrrgton
Ca lifornla
107.1
136.4
161.1
112.2
105.8
127.6
163.3
123.2
121.6
130.2
108.6
105.6
110.4
49.0
54.9
76.3
103.3
154.2
111.0
108.2
79.3
89.7
97.3
95.0
106.0
115.0
158.8
103.0
115.8
137.9
136.8
115.1
116.9
127.5
107.5
100.7
117.8
94.8
130.7
107.3
87.0
91.7
141.2
141.2
114.0
118.6
114.0
116.6
030.036603601;-.
RESITILYS OF DEC. 1 1927 PIG SURVEY.
Periods covered: Dec. 1 to June 1, Spring; June 1 to Dec. 1, Fall.
49.3
61.1
62.5
53.5
45.1
34.5
43.4
59.1
45.9
46.7
34.0
43.8
5.67
5.1
5.4
5.5
8.3
5.4
6.0
5.4
5.8
6.5
6.5
5.8
5.79
6.1
5.5
6.0
5.8
5.0
6.7
5.8
6.0
6.6
6.6
6.1
5.74
5.8
5.7
5.6
5.2
8.0
6.0
5.7
5.9
6.0
6.4
5.6
ages and
livision.
Swine
Over Average Number
Six
of Pigs Saved
Mos.
per Litter.
Cornpared
with
Total
Swine Fall Fall Sp'g
(Incl. 1927. 1926. 1927.
Pigs)
a
b
Dec. 1.
1927.
I
w030303tawm.wi*m14
Sows
Farrowed.
3553
Similar shutdowns of wide sheeting mills have occurred in Biddeford,
Me., but in Maine as a whole the curtailment has amounted to less than
In some other sections. with some mills reporting normal business. There
has been comparatively slight curtailment in New Hampshire recently.
Although stocks on hand in storehouses are reported to be fairly large in
Maine. mill men say this Is not the case in New England as a whole. The
mills are not manufacturing in excess of immediate orders. Most of them
are going into the new year with stocks no greater than are usually on hand
at this time of year.
The curtailment, while not organized, has been put into effect by individual mills throughout New England. each in accordance with its own particular situation. Textile leaders, while declining to be quoted at present;
say that the mills are in a good position to take advantage of an increasing
demand for goods which gives promise of becoming greater after the first
of the year.
From Biddeford (Me.) Dec. 28, the following Associated
Press accounts were reported by the New York "Times":
As a further means of curtailment of production the cotton mills of the
Pepperell Manufacturing Company here, operating about 200.000 spindled.
are closed for the holiday season. They were shut down Saturday night
and will be open on Monday.
The York Manufacturing Company in Saco did not shut down for the
week, but have a comparatively small crew, due to the falling off in demand for ginghams.
No curtailment has been made in the several cotton mills in Lewiston,
beyond what has existed for some time. The proportion of spindles so.
tire there is from 60 to 80% of normal.
In Augusta, the Edwards Manufacturing Company had 70,000 spindles '
running to-day, but some of them have been idle because of installation
of a new water wheel.
The cotton mill of the Lockwood Manufacturing Company at Waterville is closed for the week. It has been running very near normal, with
about 700 operatives.
The cotton mill of the Cabot Manufacturing Company at Brunswick is
employing more hands than ever before in the history of the company,
numbering about 900.
Salem (Mass.) Associated Press advices Dec. 28 said:
Announcement was made to-day that the Naumkeag Steam Cotton Mills
here would close Jan. 2, reopening on Jan. 9.
Chicopee (Mass.) press advices Dec. 23 stated:
The textile mills of the Dwight Manufacturing Company, employing
about 1,000 persons, closed at noon to-day until after New Year's.
Needed
repairs will be made in the interval.
Providence Hosiery Mills Close.
Under date of Dec. 27 the New York "Evening Post"
announced the following from Providence, R. I.:
The Providence Silk Hosiery Company, which announced a few
day.
ago that it was negotiating with employees for wage reductions
that might
average as much as 20%, closed down its plant Saturday for an
Indefinite
period.
Southern Mills to Curtail.
The following from Richmond, Va., Dec. 27 appeared in
the Wall Street "News."
Cotton cloth mills of the country sold only 63% fo their
production in
October, 60% in November and unfilled orders decreased 13%
in November, according to George S. Harris. President of the Exposition
Cotton Mills
of Atlanta and a member of the executive committee of
Cotton Textile
Institute.
Figures gathered by the institute, Mr. Harris said. "indicate
that reduction of production of at least 20% will be necessary to meet
conditions.
Such curtailment of production, of course, is entirely with
the individual
mill owners. The institute is a fact-finding organization
only and no
organized movement is under way to curtail output. Some
mills doubtless
will cut to 434 day schedules per week, but indications
are reduction of
production of 20% will be most general."
Increase in Cigarette Production in United States.
Cigarette production in the United States for 1927 will be
about 8% greater than during 1926, according to a review
published Dec. 17 by Jackson Bros. & Co. This will be a
continuation, the review says, of the trend which, since 1914,
has brought about an increase in production of more than
450%. The review says:
During the first ten months of 1927 American factories turned
ou82.200,000.000 cigarettes, compared with 75,700.000,000 for the
corret
spending period last year and 67.200,000,000 for 1925. Figures
of a world7ar Western 122.9
81.7 115.6 113.4
29.7
47.6 5.64 6.18 5.70 wide survey by the Department of Commerce, which has not yet been
completed, show that the per capita consumption in the United
I. S. total._ 110.2
59.1 111.0 105.8
States was
23.3
50.9 5 RI 577 x au, 638 annually in
1925 as compared with 272 in 1913 and 402 in 1922.
a As shown by survey of December 1926. b As shown by survey o June
Tobacco manufacturing is one of the country's most important
1927.
indusW. F. CALLANDER, Chairman Crop Reporting Board. tries.
In addition to being one of the largest sources of national
advertising revenues for newspapers, magazines and
billboards, it contributes the second largest amount to Federal
Government revenues.
Curtailment of Operations by New England Cotton During the last fiscal year $376.000.000 was collected
in tobacco taxes as
compared with $2.222,000.000 in income taxes. Six
cents of every fifteen
Mills.
cents paid for one of the popular brand cigarettes go
to the Federal TreasAssociated
ury.
Press advices from Boston Dec.29,in indicating
that the extent of the current curtailment of production in
Spring Prices on Men's Wear Advanced by 20 Out of 80
New England cotton mills varies in different sections, stated:
Woolen Houses.
Mills engaged in the fine goods industry, of which New Bedford is the
principal centre, are operating at an average of about 60% of
In its issue of Dec. 27, the New York "Journal of Comcapacity.
Mills in Fall River, the great print cloth city, are operating as
a whole merce" said:
at 35 to 40% of capacity. The American Print
Works there, one of the
largest in the world, has closed for an indefinite period. This
corporation,
which has 365,000 spindles, is expected to resume operations soon
after the
first of the year if the demand for goods, which has already made an
appearance, grows to a sufficiently large volume.
Massachusetts mills have curtailed more generally than
those in the
other New England States. In Rhode Island only one large
corporation
has closed Its plants, the Manville-Jencks Corporation, having
shut down
just before Christmas, planning to reopen on Jan. 3. This shutdown
was
announced as for the purpose of making a complete inventory
during a lull
In business.
A survey conducted by the Journal of Commerce during
the past week
disclosed the fact that at least twenty of the eighty principal
men's goods
selling agencies In this city have advanced spring prices from
23i cents
to 10 cents a yard, with the majority lifting prices 5 cents. The
Woolen Co.. the William Whitman Co., the Cleveland Worsted American
Mills Co.
and Deering, Milliken & Co., four of the largest cloth producers
in the
United States, have announced advances recently, on both plain
and fancy
worsteds.
The Pacific Mills, J. P. Stevens & Co., Metcalf Bros. &
Wilder & Co.. L. Bachmann & Co.. the George E. Kunhardt Co.. Parker,
Corp., Mocksgum maw;H.P. McHenney & Co.and
Princeton Worsted Mills are among
3554
TIIE CHRONICLE
the larger independent factors which have not made price changes. About
half a dozen other selling Offices indicate that higher prices will be named
after the turn of the year. Several summer goods manufacturers have
advanced sr expect to advance shortly.
$ The following is a representative list of the men's goods industry and the
price policy currently adopted with regard to duplicate spring orders:
*Advances.
Adelphia Worsted Mills_ __ _ 543.
H.& W.H. Lewis, Inc_ _ _ N. C.
Ethan Allen
William M. Lovering & Co.. N. C.
N. C.
Fred Alloy & Co
N.0.
Lymansville Co
N. C.
Allen-Lane Co
Carl J. Maas Co., Inc.
Sc.
N. C.
American Textile Woolen Co N.C.
Geo. Mabbett & Sons Co_ _ _ N. C.
American Woolen Co
24 to Sc. D.S. Mackay & Co.(HopeArdsley Textile Bales Co._
well & Intervale)
2)40.
5 to 7.)4c.
L. Bachmann & Co
H. W.T. Mall & Co.
N. 0.
N.C.
J. W. Birch & Sons (RiverMayflower Worsted Co
N. C.
sloe Woolen Mills)
Sc.
McAteer & Peto
N. C.
Brighton Worsted Co
John McCulloch (Warren
N.C.
Edwin & Louis Bry, Inc._ _ _ 510 7)4c.
Win. Co.)
N. C.
Cambridge Worsted Mills._ N. C.
H P. McKenney & Co._
N. C.
Campbell & Lynch
Metcalf Bros. & Co.
N.c.
N. W.
Chester Moses& CrownMills N.0.
Allen R. Mitchell dr Son.... N. c.
ClevelandWorsted Mills.... 2% to 73.4c Paragon Worsted Co
N. c.
R. W. Colman & Co. (EmParker, Wilder & Co.
N. o.
pire Worsted Mills)
N.c.
Patterson & Greenough
Howard L. Curry Co
(Southern)______ __Adv after Jan. 1
N.C.
Curtiss & Warren
N. C.
Peerless Woolen Mills
N. W
Deering. Milliken & Co.
Perseverance Worsted Co.__ N. C.
(Cowan & Pondicherry)
G. H. Pfeiffer & Co
N. C.
Sc.
Robert T. Francis (PontooPrinceton Worsted Mills.... N.0.
Hue Woolen Mfg. Co.)._
Prudential Worsted Co. (E.
N. C.
Alfred C. Gaunt & Co.
53
G. Ranges)
(Merrimac gabardines).- 100Raymond & de Blois Co.... N.0.
Geiger & Spring
James J. Regan Mfg. Co.... N. C.
N.c.
Geo. H. Gilbert Mtg. Co.__ N.c
N. C.
Sawyer, Regan Co
W. S. S. Graham (MelEdmund Schwarz (Yorkshire
bourne Mitt +)
5 to 7%C.
Worsted Mills)
N.e.
Greenwich Mills
Sc. (Deo.29)
Belden Worsted Mills
N.c.
T. Guerin dr Co
N. C.
Standish Worsted Co
N.C.
J. G. Han:dr Co
N.o
.1. P. Stevens & Co
N.C.
Hanover Win, Mfg. Co._
2%
to Sc.
Sales
Co
Stillwater
53.
Samuel Bird & Sons Co_
N. o.
Withdrawn Stoney It Starkey
Hockanum Association
N.0,
Strong-Hewat & Co.
N.C.
C. M. Hoff & Co
W. Stursberg, Schell & Co.
N.0.
(Maine Woolen Mills)._ _ _ 5o.
internat'iWorstedMMsAdv.00ntemplated
M. M Jacoms (Walther
Terhune, Yereance & Wolff
Mfg.Co.)
(Waucantuck,Bell & A.S.
Adv.contemplated
Edward A. Jones & Co.___ N.
Sc.
Brown Mills).
Kronheimer, Lewis & UllUnited States Worsted Co__ N. o.
mann
Waterhouse Worsted Co-_ N. c.
N.C.
George E. Kunhardt Corp
Waterhouse & Stockton_ ___ N. c.
N. C.
La Porte Wooten Mills
Revised
50.
William Whitman Co
Fred T. Lawrence & Co_
WindsorMfg.Co.(Range95).10c (Dec.26)
N. W.
N.C.
Lawrence&Co.(Pacific Mills) N. C.
Wuakanut Mills
Herbert Lawton & Co.
John G.Zabriskie dr Co.(An(Whitney Worsted Co.) 50
nadale Woolen Mills).....2o.
"N. c. indica tee "no change.
Whole lines
Advance may be on certain ranges or on
Automobile Models and Price Changes.
The Studebaker Corporation of America is to-day introducing models of its new American edition of the Erskine
Six-a Club Sedan, priced at $795 which will be presented
at the New York Automobile Show at the Grand Central
Palace, New York City, beginning Saturday, Jan. 7. The
new Erskine is larger, roomier and more powerful, with
many improvements in body and chassis. An official
description issued by the company says in part:
The new Erskine is larger, roomier and more powerful and incorporates
many improvements in body and chassis. It is wider, front and back, and
provides increased head room. Frontal appearance has been improved
with a more beautiful radiator design, topped by the figure of Atalanta.
Full crown front fenders of new design flare widely in front and sweep back
without a break in their lines. The roof line is broken sharply at the front
to emphasize the smartness of the military visor, but swings back to a
gracefully rounded rear quarter. Long and narrow windows are set in
deep reveals, the contrasting color adding to the low hung appearance of
the car. The finish is in fawn and sable lacquers with gold and red striping.
The wheels are finished in a deep maroon. The instrument board is finished
in two-tone lacquer, and instruments are set under glass in a new and attractively designed panel. indirectly illuminated to prevent night driving
glare. Instruments include a hydrostatic gasoline gauge in addition to
the usual speedometer, ammeter, and oil pressure gauge. Coincidental
lock to steering and ignition, the key to which also operates the door lock.
Is mounted on the steering column. On the steering wheel which Is of a
new and attractive flat design with small grip, are controls for throttle.
spark and the twin beam acorn-type headlamps. Automatic windshield
cleaner, rear-vislon driving mirror, and cowl ventilator are other items of
regular equipment. The windshield is the one-piece type and is adjustable
for ventilation. Changes in engine design have resulted in increased
motor performance. The bore has been increased to 2% inches, with
43 -inch stroke. Piston displacement is 160.37 cubic inches, delivering
43 brake horsepower at 3100 r.p.m. The compression ratio is 4.86 to 1.
For export markets where a high horsepower tax is levied, the motor will
have a bore of 2% inches. Cylinders are cast en bloc with detachable
head. Lubrication is high pressure force feed to all crankshaft, camshaft.
and connecting rod bearings. An oil filter is standard equipment. The
spark control is semi-automatic. Ignition and starting systems are Delco
Remy and the starting gear is Bendix Drive. A six-volt storage battery
Is located under the floor boards of the front compartment. Improved
gasoline economy has been effected by improved manifolding and a new
Schebler 1-inch carburetor. The wheelbase remains 107 inches, but the
overall length has been increased to 156% inches. Road clearance is
8 7-16 inches under the front axle, and 8% inches under the differential
housing. Four wheel brakes of improved design assure complete control
with light pedal pressure. Tires are 29 x 4.75 four-ply balloons. A
standard four-foor sedan listing at $885 and a Royal sedan at $965 are
other new models available in the new American edition of the Erskine.
An announcement by Mr. John N. Willys, President of
the Willys-Overland Co., on Dec. 28th indicated that the
Whippet cars will compete with Ford and Chevrolet in
price, quality and completeness of equipment. New prices
nd models will be announced next week, Jan. 6th, according to the statement which was reported in the "New York
T mes" of Dec. 29 as follows:
said Mr.
"it is not the intention of the Wlllys-Overland Company,"
one or any group of
lily's. "to enter into any direct price war with any
anufaCturers in the light car field. The prices which we will announce
[VoL. 125.
and the improvements which we have made in the Whippet will, however,
make it directly competitive with every car in the present light car class.
The improvements are further developments of the features which have
been characteristic of the Whippet.
The new low prices will be the direct result of improved manufacturing
costs and the increased public interest in this car which, according to the
estimates of our sales department, will call for a greater volume of output
In 1928 than we have ever experienced before.
We have recently opened our new body building plant which will save
us not less than 55,000,000 a year in the body division alone. With its
allied plants it will furnish employment for 3,000 additional men.
The new forge shop, opened last summer, is the last word in efficiency
and has increased our production capacity in this department 100%.
Standardization of manuafcturing processes and the introduction of new
efficiency methods have reduced overhead and lowered costs.
We have been in production for nineteen months on the Whippet. During that period the basic principles of Whippet design have been thoroughly
vindicated, as evidenced by recent trends in the light car field. These
basic principles are being maintained without change.
Mack Trucks, Inc., now have in production a new model,
the AK which has a capacity of 33,-5 tons, with 162, 174
and 186-inch standard wheelbases.
Many special features are found on model AK. The engine of 4%-ineb
bore and 6-inch stroke has cylinders cast en bloc with detachable aluminum
heads. A feature of the transmission is an extra high speed reverse which
may be obtained at a slight extra cost.
Being a high-speed heavy duty carrier, four-wheel brakes of the internal
expanding type have been made standard on this model. The emergocny
brake operates mechanically and Is of the external contracting type. On
the chain drive model it is located on both jackshafts whole on the dual
reduction model it is mounted on the rear end of the transmission.
Model AK has a sharper turning circle than ever before offered on Mack
trucks. This has been effected by center point steering which makes for
exceptionally easy handling in traffic.
Decline in Sales of Automobiles in Philadelphia Federal
Reserve District.
The Federal Reserve Bank of Philadelphia reports that
"business in automobiles during November declined somewhat more than seasonally, sales at wholesale and retail by
11 distributors of this district being substantially smaller,
both in number and value than in October." The Bank adds:
Sales of used cars and deferred payment sales also decreased in the
month. Compared with a year before, sales of new cars by dealers and
retailers were small, but those of used cars were larger.
Stocks of new cars increased at the end of November, but were smaller
than on the same date last year. Supplies of used cars, on the contrary,
were lighter at the end of November than in the previous month, but were
considerably heavier than at the same time last year.
AUTOMOBILE TRADE-PHILADELPHIA FEDERAL RESERVE DISTRICT
ELEVEN DISTRIBUTORS.
November 1927 Changefrom--October 1927- -November 1926Number.
Value.
Number.
Value.
-65.1% -54.3% -41.7% -23.5%
Sales,new cars, wholesale
-78.1
-86.9
-86.7
Cars under $1,000
-78.64
+46.5
+44.5
-14.6
-13.8
Cars $1,000 to $2.000
+41.9+25.7 1
-32.0
-33.9
Cars over 82,000
-48.5 •
-58.9
-65.8
-74.0
Sales,new cars,at retail_
-10.6 II
-14.6
+43.7
+8.1
Stocks of new cars
+32.0
+17.5 1
-14.8
-19.9
Sales ot used cars
+33.9 4
+47.9
-1.5
-8.2
Stocks of used cars
-16.4.11
-39.6
-25.3
-12.7
Retailsales,deferred payment
Crude Oil and Gasoline Prices Practically Unchanged.
No price changes have been reported this week in the
chief crude oil market of the country. In the gasoline
markets only one change of note took place when on Dec.
28 it was reported from Denver that the Continental Oil
Co. had increased service station price of gasoline in Denver 2 cents, making the new price 18 cents a gallon, including the 3 cents state tax, following a similar advance by
Navy Gas & Supply Co., marketer of Shell gasoline. Texas
Co., Sinclair and others have made similar adjustments.
The advance restores the price to the same basis as prevailed before the cut two months ago, when it became
known that the Midwest Refining Co. (Standard Oil of Indiana subsidiary) was buying service stations through its
subsidiary, Vickers Petroleum Co.
Wholesale prices at Chicago, Ill., on Dec. 30 were reported as: gasoline, motor grade, 5%@6c; kerosene, 41-43
water white, 414@4c; fuel oil, 24-26 gravity, 80@85c.
Continued Decline in Crude Oil Output.
A decline of 24,750 barrels per day was reported in the
daily average gross crude oil production of the United
States for the week of Dec. 24, bringing the output down to
2,432,200 barrels as compared with 2,456,950 barrels for
the preceding week, according to estimates furnished by
the American Petroleum Institute. The current output is
29,850 barrels per day greater than that during the corresponding week of 1926. The daily average production east
of California for the week of Dec. 24 was 1,810,900 barrels,
as compared with 1,832,850 barrels for the preceding week,
a decrease of 21,950 barrels. The following are estimates
of daily average gross production by districts for the weeks
indicated:
DEC. 31 1927.]
(In Barre2s)Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
Southwest Texas
North Louisiana
Arkansas
Coastal Texas
Coastal Louisiana
Eastern
Wyoming
Montana
Colorado
New Mexico
California
THE CHRONICLE
DAILY AVERAGE PRODUCTION
Dec. 24 '27. Dec. 17 '27. Dec. 10 '27. Dec. 25 '26.
738,200
705,750
720,300
570,300
105,050
106,050
117,750
105,550
85,400
83,900
86,500152,400
76,000
77.200
102,750
75,350
58,150
58,100
58,150
70,050
271.800
264,450
260,650
59,100
26,950
27,250
27,300
54,350
24,650
25,000
25,600
40,250
47,000
47,200
47,660
54,000
94,350
95,200
96,100
137.300
121,350
127,450
126,550
172,050
14,900
14,250
14,600
11,150
110,500
111,000
112,000
110,000
57.900
57.900
52,300
60,600
11,500
13,050
13,050
11,600
6,350
6.850
6.850
7,250
2,300
2,150
2,250
7,850
621,300
624,100
627,400
663,600
2,432,200
2,456,950
Total
2,487,500
2,402,350
The estimated daily average gross production of the Mid-Continent field
Including Oklahoma, Kansas, Panhandle, North, West Central, West
Texas, East Central and Southwest Texas, North Louisiana and Arkansas,
for the week ended Dec. 24 was 1.486,100 barrels, as compared with 1,500,200 barrels for the preceding week, a decrease of 14.100 barrels. The
Mid-Continent production, excluding Smackover, Arkansas heavy oil
was 1.414,550 barrels as compared with 1,427,750 barrels, a decrease of
13.200 barrels.
The production figures of certain pools in the various districts for the
current week compared with the previous week follow (figures in barrels
of 42 gallons):
OklahomaDec.24. Dec.17.
Dec.24. Dec.17:
North Braman
3,100 2,850
North LouisianaSouth Braman
1,950 2,050 Waynesville
6,600 6,760
Tonkawa
15,200 15,550 Urania
8.500 8,500
Garber
10,450 10.050
Bunank
36.850 36.900
ArkansasBristow Slick
24,600 24,600 Smackover, light
9,350 9,200
Cromwell
10,600 10.750 Smackover. heavy
71,550 72.450
Wewoka.
10,450 10,450
Seminole
55,650 55,700
Coastal TexasBowlegs
8,950 8,600
108,450 112,350 West Columbia
Sftright
3.800 4,200
21,300 22,100 Blue Ridge
Little River
12,000 15,300
38,750 40,300 Pierce Junction
Earlsboro
12.400 12,700
143.100 150,450 Hull
Panhandk Texas53,500 55,000
Spindletop
Hutchinson County-4,150 3,850
55,300 56,360 Orange County
Carson County
7,900 7.500
Wyoming.
Gray
19,300 20,100
42,550 42,100
Wheeler
1,350 1,400 Salt Creek
West Central TexasMontanaBrown County
17,250 17,500 Sunburst
9,500 11,600
Shackleford County..,
5,000 5,100
West TexasCaliforniaReagan County
38,500 38,500
22,700 22,950 Santa Fe Springs
Pecos County
113,000 112.000
44,300 45,300 Long Beach
Crane & Upton Counties.119,000 121,100 Huntington Beach
61,000 61,000
Winkler
20,000 20,000
62.000 54,300 Torrance
East Central Texas14,000 14,500
Dominguez
corelcana Powell
8.500 8.500
13,050 13,150 Rosecrans
Nigger Creek
31,800 32,000
1.950 2,050 Inglewood
Southwest Texas81,000 81,000
Midway-Sunset
pillow
51,500 53,600
14,000 14,250 Ventura Avenue
Laredo District
43,000 43,000
7,450 7,500 Seal Beach
Copper and Other Non-Ferrous Metals Steady in Holiday Market-Export Trade in Copper Better than
Expected.
3555
It has been felt for some time that such an organization was badly needed
in order to prevent the over-production with which the industry has
been constantly menaced. All of the leading copper companies are members of the Institute. They will give to the Institute each month detailed
information concerning costs, production, stocks on hand, and estimates
of production for three months in advance.
The considerable success of Copper Exporters, Inc., undoubtedly encouraged the formation of the Institute. When the exporting association
ended its first year of existence on October 15, the growth in the exports
of American copper and the stability of copper prices in the foreign
market were convincing evidence of the Association's worth.
Formed under the Webb-Pomerene Act of 1918, permitting American
producers to combine for the purpose of selling goods abroad, Copper
Exporters, Inc. announced that one of its chief purposes would be to
sell direct to foreign consumers and to prevent the wild speculation in
copper prices on foreign markets. This speculation and under-bidding,
which had been almost an unavoidable feature of the export business,
have been almost completely eliminated this year, while exports for the
first nine months of 1927 have been approximately 10% greater than In
the same period in 1926.
It is this growth in the export trade Which has been the saving factor
In the industry. During the current months domestic consumption of
copper has been lower this year than last, chiefly due to a smaller demand
in automobile manufacture and in building. The growth in exports,
however, has turned the scales in favor of the producer, with total shipments, both domestic and foreign, amounting to 978,000 tons in the
first 8 months of the year as against 948,000 in the same period in
1926.
These export shipments are continuing to gain. Their most important
consumer is Germany. For the first 8 months of 1927, German imports
of American copper totaled 118,883 tons as compared with 57,173 tons
during the same period last year. In the past year Germany has doubled
her imports of copper, and the German Copper Institute has succeeded
in increasing the demand for the red metal about as successfully in that
country as the Copper & Brass Research Assocition here.
The net result of this export movement has been to keep shipments and
production closely in balance and to effect a reduction of the stocks
of copper to the lowest level since August, 1926. The present surplus
stocks constitute less than a month's supply, and copper prices this week
advanced to a new high level of 1314c. a pound.
World Stocks of Zinc Increase 2,070 Tons-Total on
Dec. 1 Estimated at 57,000 Tons-Situation Abroad
Fairly Sound.
A. J. M. Sharpe, honorary foreign correspondent of the
American Zinc Institute, Inc., estimates world stocks of
zinc Dec 1 at 57,000 metric tons of 2,204.6 pounds each,
compared with 54,930 tons Nov. 1, an increase of 2,070 tons.
The following table gives in metric tons Mr. Sharpe's estimates of zinc stocks in the various countries:
Dec. 1. Noe. I. Oct. 1. Sept. 1. Aug. 1. July 1. Jcm. 1.
Year 192735,700 32,930 31,100 31,400 35,700 39,871 19,800
United States
2,500 2,800 2,600 2,800 2,700 2,600 3,200
Canada
x2,600 2,500 2,800 2,800 2,800 2,800 2,400
Australia
Germany and Poland- 6,700 7,200 7,600 7,000 6,500 6,800 9,500
4,400 4,100 3,900 3,700 3,500 3,300 4,000
Belgium
1,300 1,500 1,200 1,500 1,600 1,300 1,600
France
1,500 1,600 1,400 1,600 1,700 1,500 1,000
Great Britain
200
Scandinavia
200
200
200
200
200
200
600
.500
Far East
600
600
600
500
500
Elsewhere
1,500 1,500 1,500 1,500 1,500 1,500 1,500
Despite the customary holiday quiet, prices of all of the
major non-ferrous metals held on a fairly steady basis
throughout the week, "Engineering and Mining Journal"
reports. Large copper producing interests quote 14.125 Total
57,000 54,930 52,900 53,100 56,700 60,371 43,600
cents a pound for deliveries in the East. Custom smelters x Including unsold shipments afloat.
now quote 14 cents, delivered in Connecticut, which comMr. Sharpe in reviewing world conditions of zinc as at,
pares with 13.875 cents a week ago. They seem to be
Dec. 1 says:
taking a firmer stand and are well content to do only a
November has been an uninteresting sort of month. In fact, if one were
moderate amount of business until after the holidays are to write that the quotation for current month's shipment opened at £26 109
over;then another good buying movement is expected. Con- and closed at £26 12s. 6d. it would be a very fair epitome of the London
market. Once again the restraint of sellers has been the chief feature-on
tinuing, the "Journal" says:
only one occasion could offers be said to be beyond the absorbing powers of
In the Middle West recent business in copper went through at 14.25 cents. the market, and then the quotation dropped to E25 12s. 6d., but promptly
delivered. The export demand for copper during the week has been better recovered.
than was expected and the price of the export association held at 14.50 cents,
Towards the end of the month, however,It appeared as though sentiment
c.i.f.
were hardening. Just why is a little uncertain and probably it WU more
A modest tonnage of lead changed hands, mostly for January delivery. a case of the more optimistic feeling in other sections of the market-espeIn the East the contract price held at 6.50 cents a pound, while in the Middle cially as regards lead-being reflected in the zinc section than any more solid
West 6.325 cents was the quotation named by leading interests. Some ground. The situation on the Continent seems sound enough. Russia and
sellers offered lead at 6.3() cents, St. Louis basis. The undertone of the the Central European States have again taken some good tonnages off the
market is steady.
German market. In addition the rolling trade is reported to be quite busily
Sales of zinc have been small, with some business at 5.625 cents. St. Louis. occupied, despite the lateness of the season. The brass works are also rePrices named for tin are a little lower than a week ago, with trading dull. joicing in a steady flow of fresh business and though,especially in Germany.
there is a growing tendency to utilize high grade zinc it can safely be estimated that over two-thirds of the metal absorbed by this industry is G.0.B.
Growth in Exports Helps Copper Industry-Creation On the whole, therefore, it Is easy to believe that Continental stocks have
of Copper Institute Factor in Bettering Industry. not increased and may quite possibly have decreased. It is certain that
whatever stocks there are are in strong hands.
The growth of the export trade has been the saving factor
During the month the Giesche concern announced that, owing to the
In the copper industry this year, according to the review continued low price of zinc it was closing its Wilhelminehutte works, which
will
appparently mean a temporary curtailment of some 450 metric ton
published Nov. 29 by Dominick & Dominick. The review
monthly. This is the only case of curtailment for this reason, though of
also comments on the creation of the Copper InStitute, to course there may be a further cut through the stoppage of certain foundries
further the interests of copper producers (to which refer- for the purpose of reorganization.
The strongest
of the European markets has been the demand for
ence was made in these columns Nov. 12, page 2613), and high grade, bothfeature
in Britain and on the Continent. With America not selling and arrivals of Australian metal not particularly heavy, there has been
we quote therefrom as follows:
Fonnation of the Copper Institute this month creates a third organiza- something near a scarcity of actual spot metal and the premium has stiffened
tion in an industry which is rapidly being "organized" into a better to £.3 a ton. However,towards the end of the month American brands were
soon be regulated.
situation to-day than it has been for some time. The Institute will seek offering more freely and the position may
The galvanizing trade has been distinctly disappointing and must remain
to develop more efficient methods of production and marketing through so until
Just
another case of over-optimism
the situation in India improves.
the distribution of full information regarding the consumption and sale as to the
prospects earlier on in the year, which led to heavy speculative
of copper. The function of the Copper & Brass Research Association can buying by merchant houses who are consequently now cluttered up with
be roughly defined as the creation of new markets and new uses for copper excessive stocks which they have been unable to move. Since the turn of
at home, while Copper Exporters, Inc., has the purpose of increasing and the month there have been signs that the position is getting better, and
stabilizing the sales abroad.
there has been a moderate amount of buying for this important market for
The new Institute follows a practice which has become fairly common January and later delivery. On the Continent also galvanizers are comindustry.
In
its
organization
and
its
in American
functions it is similar plaining of slack trade.
to The American Iron & Steel Institute, The American Petroleum InIn the opening days of December there was a slight jump in the quotation
stitute, The Cotton-Textile Institute and the Portland Cement Association. following on the news of the Australian shipping strike, but it is significant
3556
THE CHRONICLE
[VOL. 125.
that this increase was immediately responsible for heavier offerings of metal
Heavier buying of pig iron by the automotive industry
and larger shippfrom the Continent, which rather promotes the thought that there is a cer- ing orders
forecast a sharp increase in motor car output. Some production
tain amount of metal being held for better prices. This, indeed, has been foundries
in Michigan are already running full notwithstanding the
holiday
the idea of many people on this side for some weeks past and has been re- season. Sales
of foundry and malleable pig iron by Cleveland
furnaces
sponsible for a certain amount of the caution displayed by buyers.
largely to the automotive trade, totaled 45.000 tons for
the
week. For
The British output for November was little different from that of the
producer, sales this month are the largest since June 1925. Shipments one
from
previous few periods, and was probably not more than 4.600 long tons.
Cleveland are also heavy, comparing favorably with those
for
any previous
The American Zinc Institute, Inc., adds:
month this year. By way of contrast, other pig iron
centers are passing
Just as we are concluding this a cable has reached London intimating through the usual holiday lull.
that the supplies of water at Broken Hill are not sufficient to last more than
Neither of the "Iron Age" composite prices is changed this week,
that for
3 months. Of course much may happen in the interval, and it will not do pig iron remaining for a third week at its low of
$17.54 and that for finished
to speculate on the chance of any curtailment of output from this cause, but steel for a second week at 2.314c, a lb. The
latter is about 1% above its
obviously this is a point which will have to be watched fairly closely.
low level of two months ago. The usual table
stands as follows:
Finished Steel.
Pig Iron,
Dec. 27 1927, 2.314c. a Lb.
Dec. 27 1927, $17.54 a Gross Ton.
Production of Zinc in United States During First Half One week
ago
2.1140. One week ago
$17.54
One month ago
2307o. One month ago
of December Shows Slight Increase.
17.59
One year ago
2.4530. One year ago
19.88
10-year
pre-war average
1.689c. 10-year pre-war average
During the first half of December, 25,405 short tons of
15.72
Based on steel bars, beams,tank plates,
Based on average of baste Iron at Valley
slab zinc were produced and 21,793 tons were shipped, as plain wire, open-hearth rails, black pipe furnace and foundry irons at Chicano.
black sheets, constituting 86% of the Philadelphia, Buffalo, Valley and
Bircompared with 25,027 tons produced and 24,709 tons shipped and
United States output.
mingham.
High.
Low.
High.
in the second half of November and 24,190 tons produced 1927_.2.453c
. Jan. 4 2.2930. Oct. 25 1927..219.71 Jan. 4 $17.54Low.
Nov.
and 21,411 tons shipped in the' first half of that month, 1926_2.453e. Jan. 5 2.403o. May 18 1926._ 21.54 Jan. 5 19.46 July 131
1925..2.560c Jan. 6 2.396e. Aug. 18 1925._ 22.50 Jan. 13 18.96
7
according to the American Zinc Institute, Inc., which also 1924_2.789e.. Jan.
15 2.460o. Oct. 14 1924_ 22.88 Feb. 26 19.21 July
Nov. 3
1923_.2.824o. Apr. 24 2.4460. Jan. 2 1923.- 30.86 Mar.20 20.77
states:
Nov.20
Stocks of slab zinc on Dec. 15 totaled 42,932 short tons, compared
More freight cars were ordered in the past week than in
with 39,320 short tons at the beginning of the month, an increase of 3,612
any
month since January, reports the "Iron Trade Review"
tons. Of the total shipments for the first half of this month 20,343 tons
of Cleveland in its market summary of Dec. 29. With the
went to domestic consumers and 1,450 tons were exported. The amount
of
metal sold but not yet delivered at Dec. 15 was 24,519 tons; total retort Southern placing 4,500,
the Santa Fe 3,650, the Louisville
capacity at that date amounted to 131,484 tons; the number of idle
retorts
available within 60 days, 42,833; the average number of retorts operating & Nashville 2,150 and the Chicago & North Western 1,000
during the first 15 days of Dec., 76,101; number of retorts operating
at additional, the week's total is 11,300, exclusive of small,
Dec. 15., 76,436.
miscellaneous orders. Steel requireme
nts for these ears will
For production, shipments, &c., of slab zinc for the first approximate 115,000 tons. More
than 15,000 cars are under
11 months of this year, see "Chronicle" of Dec. 17 1927, consideration, and action on
almost any one of the inquiries
Page 3278.
now pending would push the December total past the
14,385 of January and make it the best car month of the
Railroad Buying is Chief Feature of Steel Marketyear, the "Review" goes on to say in its report of events in
Pig Iron More Active.
the markets. From it we add:
Equipment buying is the chief feature in the steel markets
The combination of these heavy commitments for cars and fair conthroughout the country this week, with orders for a total of tracting for track mtaerial, Including 50.000 tons of rails for the MILIOLI
Central, has completely dispelled the apathy which usually envelops the
11,500 freight cars, declares the "Iron Age" in its Dec. 29 Iron
and steel markets Christmas week. Even without this railroad dereview of the industry. Specifications in good volume mand the activity of the week would have been extraordina
ry, for finished
consumers
steel
continue to specify liberally against fourth quarter contracts
increase mill operations while expectations of better autoand cover for the first quarter.
motive business are entertained for early in 1928, the "Age"
For maintenance of steel production above the usual holiday rate the
observes, adding:
railroads also are largely responsible. More rail and track fastening orders
are being put on the mills, especially at Chicago, where the increase
Railroad equipment buying on a scale scarcely matched in the
is
year makes
most marked. There steelmaking has passed 70% on the way up, which
the final week of 1927 noteworthy just as It bade fair to show the
is
usual
the rate for Steel corporation subsidiaries. Some independent sheet
year-end quiet. Orders for 11,500 freight cars have been placed
mills
by four in
the Mahonhig valley are down for repairs this week, but when
roads, the Southern buying 4.750. the Santa Fe 3.650. the
they
Louisville &
resume after New Year they will work against the best order books
Nashville 2.150 and the Chicago & North Western 1,000.
In a half
The St. Louisyear. The two-day holiday over Christmas will not be repeated this
San Francisco has inquired for 4,000 cars, and the Pacific Fruit Express
week
is
preparing to ask for bids on 2.000 refrigerator cars.
end at many mills.
Beehive furnace coke contracting for first quarter has been
Thus this year, which for weeks has looked like a leaner one than
practically
1926 for
the car shops, may run a thousand beyond the total of 67,000 for
completcl at $2.85 to $2.90, levels which anticipate a daily wage
last year,
cut of 1
including cars the railroads themselves built.
per ton in the Connellsville coke regions. Beehive furnace
coke is $2.75 to
The whole trade had looked forward with llvely interest
Connellsvill
and
$3
e
foundry
$3.75
to
$4.75.
to the Steel
Corporation's meeting of Tuesday, and the naming of
Pig iron sales have been moderately high, with the East
President Farrell as
still lagging
chief executive met the wides2,read expectation. Reasonable competition behind the West and South. It is noteworthy that in most
districts the
larger melters have covered
at home and the maintenance of this country's position in foreign
Shipments at Cleveland, where sales have
trade are
taken as firm planks in his platform.
again topped 50,000 tons in the past week, are equal to the beet
rate of the
year Producers at Chicago approach the first quarter with
Rolling mill operations in the last week in December do not
signify and
heavier order
usually are light. But Pittsburgh, Youngstown, Cleveland
and Chicago books than a year ago. Southern furnaces are selling into the first quarter
report some increase over last week. Chicago's slight gain is
due to releases at $16, Birmingham, and have booked the equivalent of their January
output. In the Pittsburgh district a fair amount of
against 1928 rail contracts. For the Chicago district as a
No. 2 foundry iron
whole, ingot
has been sold at $17.25. Valley. Buffalo prices are
output has gone up to 74%. On the other hand, the Steel
shaded in the East.
Corporation
Chief interest of users of wire products is in specifying out
closes the year with little more than a 60% ingot production as an
their fourth
average.
quarter contracts, and December shipments promise to be
The large expectations the steel trade entertains for 1928 on
much heavier
account of
than those of a year ago.
the automotive industry are emphasized again this week, but
tinged with
Cold finished bar mills, now holding more firmly to 2.20c.,
disappointment at the pace of Ford production. Spring is now the time
Pittsburgh,
are applying differentials on purchases of less than 4,000 pounds
set for reaching a good production schedule on the new car.
instead
of
6,000 pounds.
Bar, plate and structural shape specifications have been flowing In
upon
Demand for bars, plates and shapes continues stimulated
Pittsburgh and other Central Western mills in good volume for
largely by the
another
prospect of an advancing market, although signs that
week, and in these heavy products most makers now have a
consumption is
tonnage on
about to gain are not lacking. Structural steel inquiry is
their books that will insure good operations through January.
seasonally high
and
Rail orders just placed include 50,000 tons for the Illinois
forecasts unusually heavy lettings for January. Plate mills
Central and
next
month should reflect the current heavy freight car orders
6.250 tons for the Missouri-Kansas-Texas. The St. Louis Southwester
and provide new
n Is tonnage
In the market for 15.000 tons.
at a time when users other than car builders will be more engaged
Structural steel awards of about 24,000 tons included 7,000 tons additional in specifying than in contracting. Car floats and barges which the New
material for the Cleveland Union Terminal and 4,6000 tons for a building York Central Railroad will place call for 5,000 teen of plates, while
4,400
tons will be required for two colliers for an eastern coal
at Houston, Texas. Inquiries of 26,000 tons include 14,000 tons
interest. Specificafor an
tions for bars at Chicago have expanded to the point where
office building in Boston.
it Is more difSheet specifications have been coming out in good volume for January ficult to sandwich in odd lots.
Indicative of the new life manifest in sheets are reports of independen
shipment, but there is not much new business as most consumers
t
covered
producers that production in the first half of December has approximat
before the recent advance. The National Association of Sheet and
ed
Tin
275,000 tons compared with 230,041 tons for all of November.
Plate Manufacturers reports sales for the first half of December at
Unfilled
275.000 orders as
tons, bringing unfilled orders as of Dec. 15 up to 600.000 tons. It is
of Dec. 15 are estimated at 626,000 tons. against 437.306 tons
probable
Nov. 30. Particularly in the Pittsburgh and Youngstown districts
that the Steel Corporation's sheet mills have done porportionately
have
well.
makers experienced heavier specifications and orders.
Railroad car builders and agricultural works are placing some good
orders
Pacific coast quotations on heavy finished steel have been reduced
for sheets, with occasionally a fair-sized release from motor car
pracbuilders.
tically $1 per ton by the new eastern mill bases announced by
Considerably more is expected from the latter in January.
the Bethlehem
Steel Co.
A bridge across San Francisco Bay will take 8,500 tons of concrete
reinWeaknesses in Virginia phi iron has reduced the "Iron Trade Review"
forcing bars, which probably will be awarded next week. Other bridge
composite of 14 leading iron and steel products two cents
awards are looked for, but building construction is not Important.
this week. to
In tubular products the best demand and prospect are in pipe for gas and $35.07.
oil lines.
Rogers Brown & Crocker Bros., Inc., in their weekly
Eastern mill bases on plates and shapes,recently announced by the Bethlehem Steel Co., have been reflected in a $1 a ton reduction in c.i.f. prices on market report under date of Dec. 29 say that pig iron sales
the Pacific Coast.
are considerably better than is usual during the holiday
To the decision by the Secretary of the Treasury that German steel is not
period, the weekly tonnage sold being only slightly below
being dumped in this country is added the promise of prompt steps to
that of the early part of the month. In spite of the approachProtect American industry it evidences of unfair competition appear.
Cold finished steel bar extras modifying those announced in October ing inventory period, shipments also
hold up well. These
apply an extra of 20c. per 100 lb. for lots of 2,000 to 3,999 lb. of a size,
instead of from 2,000 to 5.999 lb., as in the former card. The change is facts are attributed to the attractive prices which now prevail
made so that cold finished steel bar quantity extras will conform to those and the low stocks in buyers' yards. The price situation
on hot rolled bars recently adopted.
appears a trifle stronger, it is stated. They also
say:
THE CHRONICLE
DEC. 311927.]
first half delivery
A fair tonnage of Ferro Manganese has been booked for
not hurrying
but consumers, seeing no liklihood of a further advance, are
to cover their requirements.
on Domestic
There is little change in the Foundry Coke market. Prices
Coke are low and a good tonnage has been sold.
3557
Under this new system an Eastern consumer will get the benefit of being
located at a point near the manufacturing center, as his freight bills will be
correspondingly lower. Unless this advantage is overcome by a reduction
on the part of more distant manufacturers, the tendency will be for the
steel business to become more localized.
Adjournment Without Results of Conference of BituIron and Steel Foundry Operations in Philadelphia
minous Coal Miners and Operators in Washington
Federal Reserve District-Decline in Activities.
-Secretary of Labor Davis Says Industry Needs
A decline during November in production at steel and iron
Czar.
foundries in the Philadelphia Federal Reserve District is
A conference of. bituminous coal miners called by Secof
Bank
Reserve
Indicated in the following from the Federal
retary of Labor James J. Davis recessed on Dec. 15 without
Philadelphia:
definite results. In telegrams sent Dec.9 to bituminous coal
Production of steel castings during November, while almost 34% larger
year. operators and representatives of the United Mine Workers
than in October, declined 18% from the total in the same month last
Shipments and unfilled orders were smaller than a month and a year before. of Central and Western Pennsylvania, Northern West VirInventories of raw materials at the end of the month were heavier than on
ginia and Ohio, Secretary Davis set Dec. 13 as the date for
the same date last year.
the conference; in his telegram he said:
November
1927.
Capacity
Production
Shipments
Value
Unfilled orders
Value
Raw stock:
Pig iron
Scrap
Coke
Per Cent Per Cent
Change
Change
Month Ago Year Ago.
11,940 tons
4,584 "
3,055 "
8471,561
2,400 tons
8399,329
0
+33.8
-8.8
--49.1
-9.6
+1.1
0
-18.1
--MEI
-38.4
-21.9
-30.7
2,477 tons
7,727 "
1,361 "
+34.2
+2.4
-1.9
+18.9
+4.8
+8.5
Activity in foundries making iron casting's declined considerably from
October to November and the rate was materially below that prevailing at
the same time last year. This is evidenced by curtailed production.
smaller shipments and decreased volume of unfilled orders. Stocks of
pig iron and coke at the end of November were greater but those of scrap
smaller than on the same date last year.
October
1927.
Capacity
Production
Malleable iron
Gray iron
Jobbing
For further manufacturing
Shipments
Value
Unfilled orders
Value
Raw stock:
Pig Iron
Scrap
Coke
11,111 tons
3,839 ••
226 "
3,613 "
3,210 "
403 "
4,038 "
8631,106
4,532 tons
8850,996 "
Per Cent Per Cent
Change
Change
Month Ago Year Ao,
0
-9.0
-8.1
-9.0
-9.3
-6.7
-10.0
-7.4
-12.6
-9.6
0
-24.9
-22.9
-25.0
-22.8
-38.4
-12.5
-4.8
-7.1
+2.4
"The meeting will be for frank discussion of problems affecting the inand
dustry with the object of bringing about, if possible, a satisfactory
peaceful situation.
Very
"The conference is called with the knowledge of the President.
important your company be represented."
In making a public announcement of the conference call,
the Labor Department issued a statement which said that
"Secretary Davis had expressed the hope that the outcome
might be peace in the bituminous industry by Christmas."
"At least, the Secretary believes," the statement continued,
"the meeting may witness a decided step in that direction,
so that the holidays may see a situation in soft coal mining
satisfactory not only to operators and miners but to business
In general in all the districts that have lost by existing conditions. It is the Secretary's earnest desire to bring to an
end, if possible, not only this financial loss but the human
hardship resulting from the present conflict of interests."
With the termination of the conference on Dec. 15, Associated Press advices from Washington said:
Officers of the miners' union and the operators who had been asked to
consider ways and means of ending the union mining suspension in the
bituminous fields of Ohio, Pennsylvania and northern West Virginia,
separated after committees representing them had concluded a two-day
discussion of the situation. Participants agreed to allow Secretary Davis
to make the only public statement as to their efforts, and the Secretary in
+1.7
-1.3
5,522 tons
-7.6
-12.0
doing so indicated it was possible that further attempts might be made
2,368 "
+7.3
+12.7
1,817 "
to settle the controversy.
up
In the discussion it was suggested that the coal industry might set
for itself a "czar" to exercise power over its operations comparable to
Discontinuance of "Pittsburgh Plus" Basis by
that exercised by such individual leadership in other industries.
In previous sessions proposals for a Gervnment commission to regulate
Bethlehem Steel Co.
coal mining were brought forward.
of
basis
Plus"
"Pittsburgh
the
of
discontinuance
The
Most of the operators of the larger coal mining enterprises in the terriprice quotations by the Bethlehem Steel Co. was made tory considered declined the invitation to attend and were not represented
known in the following announcement Dec. 7 by President in the conference.
"Tackle the coal situation from what angle you will, overdevelopment
Grace, that minimum base prices had been established at is the snag you strike every time, and the snag is a tough one," Secretary
Davis's final statement said. "This chaos in coal becomes all the more
the various mills:
Mr. E. G. Grace, President of Bethlehem Steel Co.. announces a change a matter of concern to the entire country in view of the effect it has on
in its method of quoting prices on structural shapes, plates and bars pro- the producing and purchasing power of a potential 3,000,000 of our popuduced at its various plants. Minimum base prices have been established lation. This overdeveloped industry provides only part-time employment
at its mills at Bethlehem, Pa., Coatesville. Pa.. Sparrow's Point, Aid., to more than 600,000 miners.
and Lackawanna, N. Y., as follows:
"If ever an industry needed a czar, coal is that industry. This conION ference, as I have already stated, developed the suggestion of one way
Shapes.-31.95 f. o. b. Bethlehem and $1.90 f. o. b. Lackawanna.
b.
to.
Point
Sparrows
and
and
Coatesville
b.
o.
f.
$1.90
-$1.98
Plates.
out.
f. o. b. Lackawanna.
"The other is for leaders in coal to submit the industry to control by
Bars.-$1.90 f. o. b. Lackawanna.
an umpire or overlord. If they did so, they could bring about order and
Its Cambria plant being in the Pittsburgh District, no change has:been
stabilization at a stroke.
made in the method of quoting prices on the products of that plant.
"Such a man would, in himself, take over the functions of the suggested
The New York "Herald-Tribune" of Dec.8 commenting rationing and arbitration commissions. The man selected would have to
be one of ability, courage, decision and heart, a man of the type of
on the change said:
Abandonment of the old practice of selling steel on a Pittsburgh "plus" Charles Evans Hughes."
John L. Lewis, president of the United Mine Workers, was kept in bed
basis, a practice which was discouraged by the Federal Trade Commission
after it had ruled for years in the steel industry, was announced yesterday by a cold, and consequently did not attend the final session. Names of
by Eugene G. Grace, President of the Bethlehem Steel Corporation, The operators attending were not given out by the Labor Department.
United States Steel Corporation had previously discarded this system at
On Dec. 14, Secretary Davis, with the permission of the
the request of the Federal Trade Commission, but until the present the
Eastern independent producers have largely been operating under the old labor men and of the operators, issued a statement saying
method.
that after reviewing the conditions of over-production and
In place of the Pittsburgh base Bethlehem steel hereafter will quote its
had considered methother
all
of
basis,
independently
manufacturers. wage rate controversies the conferees
prices on its own plant
Inasmuch as it has a plant at Coatesville, Pa., the center of several smaller ods of bettering conditions for both workers and employers.
independent producers specializing in structural shapes, the probability is Secretary Davis's'statement said:
these manufacturers, as well as others in various Eastern cities, will follow
"It is tentatively suggested that if the coal industry is to take its
Bethlehem's load and break away from the old system.
place as a going concern among other great industries there is choice of but
East.
for
Big Advantage
two ways in that direction:
"Either the industry may be left to sink of its own weight in the
The result will be distinct advantage in obtaining business from Eastern
these
pay
centers
will
from
steel
of
freight
from the morass in which it now is or the stronger elements may be left to absorb
consumers, as buyers
plant only, instead of from Pittsburgh. It should also do much to eliminate the insolvents on the principle of the survival of the fittest. The desired
the confusion which marked buying under the old system, and is regarded stabilization of the industry would thus be attained, but at fearful cost
as a step in the direction of localizing business,namely, giving an advantage to those too weak to survive and with further hardship to labor during
the process.
to the purchasers who buy their goods from nearby points. .
"Or, Congress, which alone has power to act, may heed the suggestion
Move Believed Constructive.
which President Coolidge has twice offered in his messages. The PresiWhile other steel leaders have not had an opportunity to express their dent suggested a special arbitration commission to act in emergency when
views of this radical change, the announcement having been withheld the nation's supply of coal is threatened.
until this morning, it is evident the move will be regarded generally as con"Certain representatives at the present coal conference point out, howetructive. It further relegates to the past an old method of doing business ever, that as emrgeney is a chronic state in coal, the President's suggeswhich had little justification and was strenuously opposed by the Federal tion might have to be carried further. The question was raised whether
Trade Commission.
supervision of the industry might not have to be given to a body similar
Under the old method the price for steel was the same despite the distance to the Inter-State Commerce Commission."
it may have been shipped. A consumer but a few miles from Bethlehem
Following the declination of some of the coal operators
Pa., could obtain no advantage through buying at Bethlehem instead of
giving his order to a Pittsburgh manufacturer. The result was that goods to participate in the conference, Secretary Davis on Dec. 12
were frequently shipped over a long distance at an expense that was not
addressed a second telegram to them urging their attendeconomically justified.
3558
THE CHRONICLE
ance. The Ohio Coal Operators' Association was one of
those which made known its decision not to be represented,
S. H. Robbins, President of the Association, in a telegram
to Secretary Davis, stating:
"We will not meet with representative of
the United Mine Workers of
America, with whom we have no contract and with
whom we have severed
all relations and who have no interest in
the properties we control."
Mr. Robbins's telegram also said:
"For more than six months we endeavore conscienti
d
ously to negotiate
a wage scale with the officials of the union,
but they arbitrarily refused
to recognize known economic and competitive
conditions in the coal business and a further conferenc would lead to
no beneficial results.
"It would not benefit the general public bcause
it is now abundantly
supplied with coal at very low prices. It would
not benefit the miners
who remain unemployed because we are offering
them employment at the
highest wages now possible. Our mines are not closed
to them as individuals. It would not benefit the thousands of miners
who are now at
work at satisfactory wages and whose welfare you
must consider."
Under date of Dec. 9, Associated Press accounts from
Washington referring to the calling of the conference by
Secretary Davis, stated:
Bituminous mines in the section affected by the controvers shut
y
down
last April when a union wage agreement expired,
and after the union
and operators had failed in repeated attempts to fix a new
wage scale.
In succeeding months a number of the mines, particular
ly those in
Pennsylvania, have reopened on a non-union basis, and in some
parts of
the territory the controversy has been embittere
d by violence and by
ejectment proceedings before courts, by which miners and
their families
have been dislodged from company-owned
residences.
In Illinois and Indiana partial settlements have been
effected between
the unions and the operators, ending partially
suspension of mining which
began there last April, but the conditions have
grown more severe from
the labor point of view in the northeaste
rn section. A determination to
seek the aid of organized labor as a whole was evinced
last month when
the executive council of the American Federation
of Labor was called
to the assistance of the mineworkrs. This resulted
in the appeal to the
President, backed by all the leadership of the federation
.
The labor leaders asked an officially
called conference with the coal
operators and requested also a Congressional
investigation. While the
President returned no definite answer to the
appeal, it was said later
at the White House that he was studying
the situation and that he looked
to the Labor Department for advice as
to the procedure he should follow.
It was said that he doubted the value
of the proposed conference, but later
John L. Lewis, president of the Miners'
Union, and his chief associates
were called back for private discussion with
Secretary Davis, in which they
reiterated the appeal for the conference
.
Some negotiations have already been undertake
n by Government agents
with opera-tors through the conciliation service
of the Labor Department,
but no statement would be made as to their
results pending the Tuesday
conference.
In sending out the call, Secretary Davis
addressed each coal operators'
association, each of the larger producing
corporations and a considerable
number of individuals.
[VOL. 125.
the accompanying tables. Pay-rolls have
fluctuated somewhat more
widely, owing to variation in the number of
working days and in the rate of
operations. The industry suffered from
prolonged strikes in 1922 and
1925-26. and the short suspension in
1923, which was followed by a 10%
wage increase.
Wage disbursements this year have
averaged about 16% smaller than in
the period following the last strike, when
operations were at a high rate for
several months. This year
production has been curtailed owing to the
continuance of mild weater and competiti
on from substitutes.
EMPLOYMENT (1923-25=100).
1921.
1922,
1923,
1924.
1925.
1926.
1927.
January
102.7
109.8
113.8
115.7
113.4
8.9
116.8
February
104.3
110.5
114.0
115.5
113.4
48.7
116.0
March
104.9
107.6
112.5
114.9
109.0
108.7
109.3
April
102.4
35.8
111.3
112.8
107.9
112:4
111.3
May
104.9
8.6
111.9
113.8
111.8
113.3
116.2
June
106.0
9.3
112.3
114.4
113.5
113.9
115.1
July
107.3
9.7
112.2
114.1
113.4
113.7
113.2
August
105.5
10.7
112.2
110.2
113.5
115.0
116.6
September
107.3
77.9
42.5
113.1
30.7
115.0
115.6
October
108.1
107.6
112.8
1113
9.5
116.1
118.0
November
109.2
108.8
113.3
113.4
9.1
116.7
113.2
December
111.4
110.5
114.4
114.2
8.5
116.7
_
WAGE PAYMENTS (1923-25=100).
1921.
1922.
1923.
1924.
1925.
1926.
1927.
January
97.7
74.9
105.0
114.5
110.0
9.2
109.6
February
107.1
97.6
112.1
128.1
117.9
12.3
104.2
March
101.1
99.3
110.5
122.5
92.2
113.3
88.0
April
85.6
37.6
99.6
115.2
87.1
114.0
83.6
May
96.1
9.3
110.7
116.2
123.9
123.6
114.8
June
107.1
9.6
115.0
115.9
117.1
125.1
120.5
July
98.3
9.9
102.5
115.7
111.5
112.6
84.8
August
89.2
10.4
106.7
117.6
122.2
125.1
90.6
September
98.8
30.2
35.4
116.2
35.6
122.8
107.4
October
105.6
104.9
122.6
114.6
9.5
130.9
105.1
November
94.0
104.1
113.6
108.2
9.0
111.4
112.8
December
101.7
108.6
117.6
118.8
8.8
119.3
Bituminous Coal Price Shows Decline.
The review of the week given in 'the editorial remarks of
the "Coal and Coal Trade Journal" of Dec. 29, expressed the
opinion that a price decrease is general throughout the industry owing to production being in excess of consumption.
Brief extracts from this source follow:
In the bituminous trade we have not heard even an echo from the Washington meeting. Requiescat in pace! However, production, which
it was
hoped would show a further recession, increased about one hundred
thousand tons for the week ending Dec. 17, to a total of 9,678.000 tons, close to
a million tons more than the market will absorb at the present time.
Coal used by locomotives (the largest consumers) as reported by Class 1
railroads shows a reduction in average cost per ton during October, as compared with September, of one cent per ton in the Eastern district and in the
average of the entire United States, while in the Western district, the decrease was seven cents per ton. The decrease in the Southern district was
the same as in the West.
The natural observation is that price decrease Is general and that a condition and not a theory confronts the industry. It is generally conceded that
production in excess of consumption is the cause. "Waste not, want not."
The steamship Mercer, which concluded her trip across under most difficult sailing conditions, reported favorably on the use of pulverized coal.
That means a broader market.
Wage Increase for Colorado Miners Announ
ced by
Colorado Fuel & Iron Co.
The Colorado Fuel & Iron Co., largest produci
ng coal
operator in Colorado, has announced a wage
increase for
coal miners at all its Southern Colorado
mines, effective
Jan. 1, says Associated Press dispatches from
Denver Dec.
29. It was also stated therein:
Coal Production Remains Low, Both Bituminous and
The increase is the second since
Sept. 1. Under the new Increase, totalAnthracite.
4
ing 32 cents a day, the coal miners
will receive a basic wage of $6.52. This
The total production of bituminous coal during-the week
is El a day more than was paid
prior to Sept. 1. The strike of Colorado
coal miners called on Oct. 18
by the Industrial Workers of the World fol- of Dec. 17 was 9,806,000 net tons, an increase of 119,000
lowed a demand for a restoration
of the Jacksonville scale of $7.75 a
day net tons over that of the preceding week, reports the United
In Colorado mines.
States Bureau of Mines._ Compared with the corresponding
week one year ago, the current output fell behind, however,
New Measure of Anthracite Activity Made
Available by by 3,659,000 net tons. Anthracite production for the week
Philadelphia Federal Reserve Bank-New Indi- of Dec. 17 was 1,381,000 net tons, a
loss of 7,000 tons when
cator Shows Monthly Changes in Employment compared with the output of the precedi
ng week and of
and Wages Since 1921.
413,000 net tons when compared with the production during
A new measure of anthracite activityYjust prepare
d by the corresponding week of 1926, the,Bureau_of Mines conthe Federal Reserve Bank of Philadelphia and announc
ed tinues, adding:
for the first time shows the slackened operations of
BITUMINOUS COAL.
the
Pennsylvania anthracite industry. during recent months.
The total production of soft coal during the week ended Dec. 17,Including
lignite and coal (yoked at the mines, is estimated at 9,806.000 net tons, an
This new indicator shows monthly changes, from 1921
to Increase of 1.2% over the output in the preceding week.
date, in the number of workers employed and in wage
The number of cars of soft coal loaded on the principal coal-carrying
disbursements of anthracite companies mining a large propor- roads during the week of Dec. 17 was approximately 175,232.
tion of the total tonnage produced. These figures are based Estimated United States Production of Bituminous Coal (Net Tons), Ina Coal Coked
1927
1926
on monthly reports from operators co-operating with
Week. Cal. Yr. to Dale.
Week. Cal.Yr.toDate.a
the Dec. 3
9,053,000
482,534,000
Anthracite Bureau of Information, and are believed to
14,676,000
528,360,000
be Daily average
1,509,000
1,696,000
2,448,000
1,857,000
representative of conditions in the industry. The bank
Dec. 10_b
9,687,000
492,221,000
14,090,000
542,450,00
0
in Daily average
1.614,000
1,694,000
2,348,000
1,867,000
its further announcement, made public Dec. 23, says:
Dec. 17.c
9,806,000
502 026.000
13,465,000
555,915,000
These new indexes,
Daily average
1,634,000
1,693,000
which supplement similar information now
being
collected by the bank from more than 800
manufacturing establishments
of the State, will be made available to reporting firms
from month to month.
The Interest shown thus far by operators Is enabling
the Anthracite Bureau
of Information to widen considerably the scope and
importance of the industry's co-operation in this new barometer.
The vital significance of the anthracite industry to the
State is clearly
shown by the fact that it normally pays out more than
$300,000,000 annually in wages and employs approximately 160.000
workers. These
indexes will indicate not only the current rate of operations
in the industry
but will also provide a good gauge of general prosperity and
power in Lackawanna. Luzerne, Carbon, Schuylkill and other purchasing
counties in
which the mines are situated.
With the exception of the strike periods, when only maintenan
ce men
were employed at the mines, employment of reporting
operators, generally
has been remarkably stable, with only slight seasonal changes,
as shown by
2,244,000
1,874,000
a Minus one day's production first week In January to equalise number of days
in the two years. b Revised since last report. c Subject to revision.
The total quantity of soft coal produced during the calendar year 1927
to Dec. 17 (approximately 297 working days) amounts to 502,026,000 net
tons. Figures for corresponding periods in other recent years are given
below:
1926
1925
555,915,000 net tons
1924
462,527.000 net tons
499,543,000 net tons
1923
545,397,000 net tons
1922
404,276,000 net tons
As already indicated by the revised figures above, the total production,
of soft coal for the country as a whole during the week ended Dec. 10 la
estimated at 9,687,000 net tons. This is an increase of 634,000 tons, or
7% over the output in the preceding week.
The following table apportions the tonnage by States and gives comparable figures for other recent years.
ANTHRACITE.
The trend of anthracite production has shown little change during recent
weeks. The total output for the week ended Dec. 17 is estimated at 1,381,000 net tons as against 1,388.000 tons in the preceding week. Production
during the week of Dec. 17 in 1926 amounted to 1,794,000 tons.
Estimated United Stales Production of Anthracite (Net Tons).
19261927
Week. Cal.Yr.toDate.a
Cal.Yr.toDate.
Week EndedWeek,
78,767,000
1,997,000
Dec. 3
75,147,000
1,391,000
80,574,000
1,807,000
Dec. 10
76,535,000
1.388,000
82,368,000
1,794,000
77,916,000
Dec. 17_b
1,381,000
a Minus one day's production first week in January to equalize number of days
In the two years. b Subject to revision.
BEEHIVE COKE.
The production of beehive coke for the week of Dec. 17
was omitted from the United States Bureau of Mines' report
cited above.
The weekly estimate of bituminous coal production in the
United States, computed by the National Coal Association
from preliminary car loading reports, shows a total for the
week ended Dec. 24 of about 9,500,000 net tons. These
figures may be subject to considerable revision, since returns for Saturday, the day before Chrjstmas, are meager.
Final Estimates of Monthly Bituminous Production
in 1926.
Complete reports from the operators, compiled by the
United States Bureau of Mines, show the final total production of bituminous coal in 1926 to be 573,367,000 net tons,
The preliminary estimate for the year, representing the sum
of the weekly estimates published currently during 1926, was
578,290,000 tons. The error in the preliminary estimate,
therefore, was 0.9%. In the following table, the monthly
figures are revised to agree with the final total.
FINAL ESTIMATES OF BITUMINOUS COAL PRODUCTION, BY MONTHS,
IN 1926 AND 1925.
1926
January
February__ _ _
March
April
May
June
July
August
September_ _ _
'October
November_ December
Total
1925
Average
Average
per
Production No. of
Production
Working Working Day
(Net Tons.) Days. (Net Tons.) (Net Tons.)
53,205,000
46,180,000
45,744,000
39,738,000
38,727,000
41,635,000
43,102,000
45,957,000
48.559,000
54,127,000
59,213.000
57,180,000
25.3
23.9
27
25.7
25.4
26
26
26
25.4
26
24.9
26
573,367.000
307.6
2,103,000
1,932,000
1,694,000
1,546.000
1,525,000
1,601,000
1,658,000
1,768,000
1,912,000
2,082,000
2,378,000
2,199,000
Average
Average
No. of
per
Working Working Day
Days. (Net Tons.)
51,640,000
38,770,000
37,416,000
33,514,000
35,276,000
36,960,000
39,362,000
44,633,000
46,556,000
52,907,000
50,497,000
52,522,000
28.3
23.9
28.0
25.6
25.4
26.0
26.0
26.0
25.4
27.0
23.7
26.0
1,963,000
1,622,000
1,439,000
1,309,000
1,389,000
1,422.000
1,514,000
1,717,000
1,833,000
1,960.000
2,131,000
2,020,000
1.864.000 520.053.000
307.3
1 can 'inn
Country's Foreign1Trade in November-Imports and
Exports.
The Bureau of Statistics of the Department of Commerce
at Washington on Dec. 14 issued its statement on the foreign
trade of the United States for November and the eleven
months ending with November. The value of merchandise
-exported in Nov. 1927 was $461,000,000, as compared with
$480,300,000 in Nov. 1926. The imports of merchandise are
provisionally computed at $345,000,000 in Nov. 1927, as
against $373,881,000 in November the previous year, leaving
a favorable balance in the merchandise movement for the
month of Nov. 1927 of $116,000,000. Last year in November there was a favorable trade balance on the merchandise
movement of $106,419,000. Imports for the eleven months
of 1927 have been $3,854,025,000, as against $4,071,426,000
for the corresponding eleven months of 1926. The merchan-
TOTAL VALUES OF EXPORTS AND IMPORTS OF THE UNITED STATES.
Preliminary figures for 1927, corrected to Dec. 13 1927.
MERCHANDISE.
11 Mos. Ending Nov.
November.
1927.
1926.
1927.
Inc. (1-)
Dec.
(-).
1926.
1,000
1,000
1.000
1.000
1,000
Dollars.
Dollars.
Dollars.
Dollars.
Dollars.
461,000
480,300 4,457.762 4,343,291 +114,471
373,881 3,854.025 4,071,428 -217,401
345.000
Exports
Imports
116,000
Excess of exports
Pl<PP. of 'moons
271,885
603,737
106,419
EXPORTS AND IMPORTS OF MERCHANDISE-BY MONTHS.
1927.
1926.
1924.
1925.
1923.
1922.
1,000
1.000
1,000
1,000
1.000
1.000
Dollars. Dollars. Dollars. Dollars. Dollars. Dollars.
419,402 396.836 446,443 395,172 335,417 278.848
372,868 352.905 370.876 365.782 306.957 250,620
408,973 374,406 453,653 339,755 341,377 329,980
415,374 387,974 398,255 348,936 325,492 318,470
393,140 356,699 370.945 335.089 316.359 307,559
356,966 338,033 323.348 306.989 319,957 335,117
341,809 368.317 339,660 276,649 302.186 301.157
374,815 384.449 379,823 330.660 310.966 301.775
424,984 448.071 420,368 427,460 381,434 313,197
488,633 455.301 490,567 527,172 399,199 370,719
461,000 480,300 447,804 493.573 401,484 380,000
465.369 468,306 445.748 426,666 344.328
ExportsJanuary
February
March
April
May
June
JulyAugust
September
October
November
December
11 mos. ending Nov__ 4,457,762 4,343,291 4.441,542 4,145,237 3,740,828 3,487,452
4,808,660 4,909,848 4.590.984 4.167.493 3.831,777
12 mos. ending Dec_
ImportsJanuary
February
March
April
May
June
July
August
September
October
November
December
356,841
310,877
378,331
375,733
346,501
354,892
319,298
368,820
342,154
355,578
345,000
346.165
333,387
385,379
346,091
327.519
325.216
325,648
340.086
349,954
374,074
376.431
396,640
416,752
387,308
442,899
397,912
320,919
336,251
338,959
336,477
343,202
376,868
373,881
359,462
295.506
332,323
320.482
324,291
302,988
274,001
278,594
254,542
287,144
310,752
296,148
333.192
217,185
215,743
258,178
217,023
252.817
260.461
251,772
281.376
298,493
276,104
291,805
293,789
329,254
303,407
397,928
364,253
372,545
320,234
287,434
275,438
253,645
308,291
291,333
288,305
,2,818,957
3,829,950 3,276,771 3.503.76
Nov__
3,854,025 4,071,426
11 mos. ending
_
_
..- -.- .--.
-..--,
--- - -------.
. .
.
mos. culling
GOLD AND SILVER
ll Mos. Ending Nov
November.
1927.
1926.
1,000
1,000
Dollars.
Dollars.
7,727
55,266
16,738
2,082
GoldExports
Imports
Excess of exports
Excess of Imports
SilverExports
Imports
1927.
Inc. (1-)
Dec.
(-).
1926.
1,000
Dollars.
123,606
197,104
1,000
Dollars.
108,512
196,502
9.011
73,498
87,990
5,634
5,102
6,794
3,941
68,438
51,303
86,647
65.166
532
2,853
17,135
21,481
1,000
Dollars.
+15,094
+602
53.184
Excess of exports
Vvesawa of Irnnnrfla
-18,209
-13,863
EXPORTS AND IMPORTS OF GOLD AND SILVER-BY MONTHS.
Silver.
Gold.
ExportsJanuary
February
March
April
May
June
July
August
September
October
November
December
1924.
1927.
1926.
1925.
1927.
1926.
1925.
1,000
Dols.
14,890
2,414
5,625
2,592
2,510
1,840
1,803
1.524
24.444
10,698
55,266
1,000
Dols.
3,087
3.851
4.225
17,884
9.343
3,348
5.069
29.743
23,081
1.158
7,727
7,196
1,000 1,000 1,000 1,000 1.000
Dols. Dols.
Dols. Dols. Dols.
73,526
281 7,388 9,763 11,385
50.600
505 6,233 7.752 6,833
817 6,077 8,333 7,917
25.104
21,604 1,391 6.824 7.612 9,323
13,390
593 6,026 7.931 6,536
6,712
268 5,444 7.978 8,522
8,349
4,416
327 6,650 7,921
2,138 2,397 5,590 8.041 8,285
6.784 4.580 6,627 7,243 7,487
28,039 4.125 5.94, 7.279 8,783
24,360 6,689 5,634 6,794 8.118
5,968 39.675
____
5,610 7.589
1924.
1,000
Dols.
8.209
8.877
8.355
7,802
9,687
8,648
9,190
8,632
10.345
9,465
9,401
11,280
11 Mos.end. Nov 123,606 108.512 256,671 21,973 68.438 86,647 91,538 98,611
___ 115,708 262,640 61,648
____ 92.258 99,128 109,891
12 Mos.end. Dec
ImportsJanuary
February
March
April
May
June
July
August
September
October
November
December
59,355
22,309
16,382
14,503
34,212
14,611
10,738
7,877
12,979
2.056
2,082
19,351
25,416
43.413
13,116
2,935
18,890
19,820
11,979
15,987
8.857
16,738
17,004
5,038
3.603
7,337
8,870
11,393
4.426
10.204
4.862
4.128
50,741
10,456
7,216
45.136
35.111
34,322
45.418
41,074
25,181
18.834
18,150
6.656
19,702
19,862
10,274
5,151
3,849
4.308
3,815
5,083
4,790
4,288
4.856
4,992
5,069
5,102
____
1401400
00 1
CC a
1414
-4,D10IP.W14000.-00
9,687,000 9.053,000 14,090,000 12,838,000 9,580,000
a Revised. is Weekly rate maintained during the entire month. c Includes
operations on the N.deW.:C.& O.; Virginian; K.& M.; B. C. dc 0.. and Charleston
division of the B.& 0. d Rest of State. including Panhandle.
dise exports for the eleven months of 1927 have been $4,457,762,000, against $4,343,291,000, giving a favorable trade
balance of $603,737,000 in 1927, against a favorable trade
balance of $271,865,000 in 1926. Gold imports totaled
$2,082,000 in November, against $16,738,000 in the corresponding month in the previous year, and for the eleven
months they have been $197,104,000, as against $196,502,000
they have been $197,104,000, as against $196,502,000.
Gold exports in Nov. 1927 were $55,266,000, against only
$7,727,000 in Nov. 1926. For the eleven months of 1927
the exports of the metal foot up $123,606,000, against $108,512,000 in the eleven months of 1926. Silver imports for the
eleven months of 1927 have been $51,303,000, as against
$65,166,000 in 1926, and silver exports $68,438,000, as
against $86,647,000. Following is the complete official
report:
4,
.W0,.40000.0CAMOI
00C
WW.00
0000W.N.4141400
0.-.001400141414=W14
Estimated Weekly Production of Soft Coal by States (Net Tons).
December
Total Production for Week Ended.
Average,
Dec. 12
Dec. 11
Dec. 3
Dec. 10
1923.b
1925.a
1926.
1927.
1927.
State338,000
500,000
533,000
309,000
318,000
Alabama
Arkansas, Kansas, Mis234,000
275,000
311,000
258,000
298,000
souri and Oklahoma-.
245,000
288,000
307,000
139,000
160,000
Colorado
1,506,000 1,243,000 1,942,000 1,756,000 1,485,000
Illinois
498,000
554,000
610,000
339,000
381,000
Indiana
117,000
119.000
140,000
51,000
75,000
Iowa
565.000
725.000 1,070.000 1,066.000
788.000
Kentucky-Eastern
197,000
354,000
370,000
292,000
361,000
Western
35,000
76,000
83,000
61,000
65,000
Maryland
20,000
27,000
19,000
20,000
18,000
Michigan
61,000
69,000
76,000
88,000
80,000
Montana
55,000
58.000
65,000
70,000
70,000
New Mexico
26.000
29,000
31,000
61,000
57,000
North Dakota
580,000
690,000
787,000
150,000
157,000
Ohio
2,305.000 2,283,000 3,657,000 3,262,000 2,727,000
Pennsylvania
99,000
140,000
138,000
85,000
88,000
Tennessee
20,000
24,000
25,000
21,000
Texas
21,000
96.000
105,000
101,000
133,000
Utah
127,000
187,000
296,000
311,000
216,000
Virginia
217,000
56,000
53,000
57,000
61,000
Washington
42,000
W. Virginia-Southern.c_ 1,650,000 1,550,000 2,267,000 2,114,000 1,124,000
642,000
821.000
993,000
705,000
Northern-d
711,000
188,000
154,000
193,000
190,000
Wyoming
190,000
5,000
6,000
4,000
3.000
Others
2,000
Month.
3559
THE CHRONTOLE
DEC. 31 1927.]
5,980
7.900
6.221
3,908
5,640
4,870
7.128
7,042
7,083
5,829
6,481
5,864
196,502 121,058 309,446 51,303 65,166 58,849 68.082
11 Mos.end. Nov 197'104 nlo
EflA 100 0,0 0111,01
..,.• r.A,..
_
,
.
.
.
,
3560
T H li CHRONICLE
Domestic Exports of Cotton, Cotton Cloths, Yarns,
Threads and Hosiery.
The Department of Commerce at Washington on Dec. 23
issued its monthly report on the domestic exports of cotton,
cotton cloths, yarns, thread and hosiery for the month of
November and the 11 months ending with November, with
comparisons for the corresponding periods a year • ago.
The exports of raw cotton were smaller in both quantity
and value in November of this year than in November last
year, 1,001,951 bales having been shipped out in November
1927, against 1,486,224 bales in November 1926, and the
value of these exports was placed at $109,532,155 in November this year, as compared with $113,453,551 in November last year. For the 11 months period ending with
November 1927 the exports of raw cotton have been no
less than 8,710,530 bales, as against 7,517,015 bales in the
11 months ending with November 1926. The value of
these shipments was $745,015,615, against $705,594,283.
The exports of cotton manufactures increased in both
the month and the 11 months period, as compared with a
year ago. Below is the report in full:
[VOL. 125.
DOMESTIC EXPORTS OF COTTON, COTTON CLOTHS, YARNS.
THREADS AND HOSIERY.
loath of November.
1927.
1926.
11 los. Ended Notember.
1926.
1927.
Raw cotton, including linter
bales
1,486,224
1,001.951
7,517,015
8,710,530
Value
$113,453,551 $109.532,155 5705.594,283 8745,015,615
Cotton manufactures, total
value
39,637,218 $11,701,094 $119,041,613 $121,424,513
Cotton cloths, total sq. yds
43.452,421 47.379.817 472,795,124 518,868,655
Value
$5,792.549 $6,851,327 869,051,442 $70,034,578
Tire fabrics, sq. yds
168,987
519,419
1,860,361
4,302,552
Value
$197,474
$57,216
$803,124 $1.506,862
Cotton duck, sq. yds
822,123
941,653 10,219,339 14,165,782
Value
$281,407
5333,816 53,800,257 54,409,619
Other cotton cloths—
Unbleached ,sq. yds
9,767,097
7,786,858 110,317,541 115,429,003
Value
$883,581
$843,208 $11,588,232 $10,429,001
Bleached, sq. yds
8,637,932
7,166,091 90.608,694 80,067.879
Value
$987,148
$866,730 $11,482,827 $9,122.239
Printed, sq. yds
10,327,040 10,696,411 90,193,130 107,810,465
Value
$1,336,313 $1,404,374 $12,882,395 $14,421,301
Piece dyed, sq. yds
7,267,069 10,541,766 93,289,127 110,955,379
Value
51,282,232 $1,785,288 516,407,726 517,596.838
Yarn dyed, sq. yds
6.462,173
9,727,619 76,306,932 86,137,595
Value
$964,652 51.420,437 $12,086,881 $12,548,718
Cotton yarn, thread, Sze.—
Carded yarn, pounds
1,219,601
1,056,433 13,309,569 15,507,149
Value
$564,408 54,783,877 55,170.314
3399.689
Combed yarn, pounds_
679,426
905,874
8,249,081
9,854,076
Value
5714,223 $6,260,032 $7,559,879
$486,492
Sewing,crochet,darning, and
embroidery cotton, lbs_ _
120,093
93,673
1.292,770
12,06,955
Value
$119,325
596,042 31,312,558 31,125,832
Cotton hosiery, doz. pairs
308,765
311,603
4,406,322
4,033,647
Value
3544.088
3567.579 37.846.994 86.791.869
Current Events and Discussions
The Week with the Federal Reserve Banks.
The report of the Federal Reserve banks this time deals
with the results for the year 1927, and we are accordingly
publishing it in our editorial columns—see page 3535.
The tabular statement in full, in comparison with the preceding week and with the corresponding week last year, will
be found on subsequent pages, namely, pages 3610 and 3611.
Returns of Member Banks for New York and Chicago
Federal Reserve District—Brokers' Loans.
Beginning with the returns for June 29 last the Federal
Reserve Board also began 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—now
658—cannot be got ready.
The following 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 the reporting member banks, which this week show
an increase of $73,000,000 over last week's record figure of
$3,644,331,000, the grand aggregate of these loans for Dec.
28 being now $3,717,622,000, a new high record.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York-51 Banks.
Dec. 28 1927 Dec.211927. Dec. 29 1926.
Loans and investments—total-
7 223,552,000 7.160,898,000 6,451,287,000
Laons and discounts—total
5 334,106,000 5,258,221,000 4,710,397,000
Secured by U.S. Govt.obligations-. _
47,719,000 44,644.000
47,690,000
Secured by stocks and bonds
2 675,960,000 2,597,315,000 2,121.298,000
All other loans and discounts
2 610,427,000 2,616,262,000 2,541,409,000
Investments—total
1 889,446,000 1,902,677,000 1,740,890,000
U.S.Government securities
974,246,000
Other bonds,stocks and securities—.... 915,201,000
Reserve with F.R.Banks
Cash in vault
786,284,000
71,252,000
994,184,000
008,493.000
860,279,000
880,611,000
777.375,000
85,103,000
716,245,000
71,277,000
Net demand deposits
Time deposits
Government deposits
5 543,763,000 5,578,195,000 5,202,540,000
1 045,587,000 1,042,459,000 897,009,000
56,841,000
56,841,000
45,326,000
Due from banks
Due to banks
110,233,000 106,348,000
96,379,000
1 265,637,000 1,281,513,000 1,082,464,000
Borrowings from F.R.Bank—total-._ _ _ 203,288,000
140,273,000
118,000.000
148,350,000
54.938,000
103,280,000
36,993.000
81,750,000
36,250,000
Secured by U.S. Govt. obligations
All other
Loans to brokers and dealers (secured by
stocks and bonds):
For own account
1 373,536,000 1,302,333,000 1,008,235,000
For account of out-of-town banks
1 338,291,000 1,337,183.000 1,021.747,000
For account of others
1,005,795.000 1,004,815,000 757,779,000
Total
On demand
On time
3,717,622,000 3,644,331,000 2,787,761,000
2 864.107,000 2,799,974.000 2,108,872,000
853,515,000 844,357,000 678,889,000
Chicago-44 Banks.
Dec. 28 1927.
Dec. 211927. Dec. 29 1926.
Loans and investments—total
1,956,480,000 1,969,210,000 1,852,669,000
Loans and discounts—total
1 479,419,000 1,476,101,000 1,443,045,000
Secured by U.S. Govt.obligations-. _ _
12,273,000
Secured by stocks and bonds
776,742,000
All other loans and discounts
690,404,000
13,596,000
777,739,000
684,766,000
14,880,000
708,753,000
719,412,000
477,061,000
493,109,000
409,624,000
U.S. Government securities
199,887,000
Other bonds,stocks and securities__ _ _ 277,174,000
220,204,000
272,905,000
160,892,000
248,732,000
193,232,000
24,925,000
177,600,000
24,784,000
Investments—total-
Reserve with F.R.Bank
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
193,815,000
24,862,000
1 275,617,000 1,290,373,000 1,227,132,000
635,646,000 642,504,000 587,301,000
9,629,000
9,629,000
8,562,000
154,859,000
377,583,000
150,083,000
371,689,000
176,926,000
365,244,000
Borrowings from F. R.Bank—total-. _._
21.700,000
17,680,000
42,756,000
Secured by U.S. Govt.obligations-. _ _
II other
13,150,000
8630,000
15,589,000
2,091.000
18,249,000
24,507,000
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, now
658, 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 ending with the close of business Dec. 21:
The Federal Reserve Board's condition statement of 658 reporting member
banks in leading cities as of Dec. 21 shows an increase of $63,000,000 In
loans and discounts, of 365,000,000 in investments, of $185,000,000 in
Government deposits. $32,000,000 in time deposits, and 379,000,000 in
borrowings from Federal Reserve banks, and a decline of $192,000,000 in
not demand deposits.
Loans on stocks and bonds, including United States Government obligations, were $82,000,000 above the Dec. 14 total at all reporting banks, an
Increase of $111,000,000 at banks in the New York district being partly
offset by decreases in most of the other districts, principally Chicago, where
the decline amounted to $27,000,000. "All other" loans and discounts
were $19,000,000 loss than the total reported a week ago, the principal
decreases being 38,000,000 and $7,000,000, respectively, in the Philadelphia
and Cleveland districts.
Larger holdings of United States Government securities were reported by
banks In all districts except Boston, for which a decline of $5,000,000 is
shown, the principal increases being $14,000.000 in the San Francisco
district, $11.000,000 in the Philadelphia district, $10,000,000 in the
Cleveland district, and $6,000,000 each in the Atlanta and Dallas districts.
Declines in net demand deposits, aggregating $192,000,000, are shown for
all districts, the principal decreases by districts being: Philadelphia and
Chicago $29,000,000 each, Cleveland 328,000,000, Boston and St. Louis
$19,000,060 each, and New York 316,000.000. Time deposits increased
$22.000,000 at reporting member banks in the New York district, $10,000,000 in the Chicago district. and $6,000,000 in the St. Louis district, and
declined $7,000.000 at reporting banks in the Cleveland district. Government deposits were 3185,000,000 above the total reported a week ago.
Increases being reported for all Federal Reserve districts.
The principal changes in borrowings from Federal Reserve banks comprise increases of $63,000,000 in the New York district and $18,000,000 in
DEC. 31 19271
THE CHRONICLE
3561
the Cleveland district, and a decline of $13,000.000 in the Chicago district' during December continued at about the same level as in November.
A summary of the principal assets and lia'ailities of 658 reporting member Business conditions are generally satisfactory.
banks, together with changes during the week and the year ending Dec. 21.
HAITI.
1927, follows:
The general economic situation is showing a tendency to improve
Dec. 21
Inc. (+) or Dec. (-) During with
local sales expanding, currency circulation increasing, and collections
Week.
1927.
Year.
easier. This greater activity is partly attributable to Christmas buying
8
$
Loans and investments-total
21,787,659,000*+ 128,400,000+ 1,733,717,000 hut is due chiefly to the returns being received from the coffee crop,
Loans and discounts-total
15,356,960,000•+63,075,000 +873,183,000 which is now moving in heavier volume. Coffee shipments during November increased by 1,610 metric tons over October, but November
Secured by U. S. Govt. obligations_
128,785,000 +3,039,000 -13,630,000 prices were lower and the trend in December has been slightly downward.
Secured by stocks and bonds
6,493,026,000 +78,472,000 +880,068,000 Imports and exports were both greater
than in October, the total foreign
All other loans and discounts
8,735,149,000 •-19,336,000
+6,795,000
trade amounting to $3,855,000, as compared with $3,214,000 in October.
Investments-total
6,430,699,000 +65,325,000 +860,534,000
ITALY.
U.S. Government securities
2,868,416,000 +54,305,000 +502,304,000
At a cabinet meeting on Dec. 21, legal stabilization of the lira on
Other bonds, stocks and securities 3,562,283,000 +11,020,000 +358,230,000
the basis of 19 to the dollar, 92.46 to the pound sterling, and 3.60 to the
Reserve with F. R. banks
1,779,706,000 •-6,378,000 +123,085,000 old lira was decided upon and made effective from Dec. 23, 1927. In
Cash in vault
339,760,000 +24,959,000 -23,491,000 recent market quotations the lira has been fluctuating
around 18 to
Net demand deposits
13,839,523,000 -191,552,000 +870,223,000 18.3 to the dollar, which is close to the "quota 90" to the pound sterling,
Time deposits
6,503,971,000•+32,480,000 +669,724,000 decided upon by the Italian government some months ago.
Government deposits
191,770,000 +185,070,000 +28,405,000
MEXICO.
Due from banks
1,201,309,000 -35,923,000
There has been some slight improvement noted during December in retail
Due to banks
3,528,859,000 -55,396,000
sales, but import orders remain at the prevailing low level.
Borrowings from F. It. banks-total..., 432,061,000 +78,753,000 -72,367,000
The outlook for the cereal crops is unusually good.
While official statistics of petroleum production and exports during
Secured by U. S. Govt. obligations_ 313,079,000 +42,725,000
-8,458,000 November
are not available, it is stated in Mexico that there has been
All other
118,982,000 +36.028,000 -63,909,000
a slight increase.
• Dec. 14 figures revised.
Summary of Conditions in World's Market According
to Cablegrams and Other Reports to the Department of Commerce.
The Department of Commerce at Washington releases
for publication to-day (Dec. 31) the following summary of
conditions abroad, based on advices by cable and other
means of communication:
CHINA.
The Chinese Ministry of Communications has failed to provide funds
with which to meet interest and amortization charges on the Hukuang
Railway loan due Dec. 3. The charges on this loan which were due last
June were paid from salt surplus revenues, but the interest and amortization charges due last December still remain unpaid.
A branch of the National City Bank of New York has been opened in
Mukden, Manchuria. Radio telephonic and radio telegraphic communica•
tion betWaen Meltden and Berlin were inaugurated On Dec. 2, under SineGerman auspices.
The American Consul at Dairen reports the closing of Dairen bean oil
mills. They are to renain closed until the end of the year, apparently
due mainly to competition and activities in the Chinese interior by Harbin
mills, and increasing competition of artificial fertilizers in Japan. Exports of bean oil to the United States during November aggregated $400,000
tenfold greater than in November of last year.
DOMINICAN REPUBLIC.
General business conditions in the Dominican Republic showed improvement in December, owing to the resumption of grinding operations by
the sugar oentrals in the southern provinces and to holiday buying in the
northern part of the Republic. Exports and imports are normal for this
season and most merchants are carrying large stocks. Construction work
continues active in the Santo Domingo district. The sugar grinding season is well under way and by January all important mills will be in
operation. Prospects for the 1927-28 crop are good.
GREECE.
A generally optimistic tone is noted in business and financial circles
as a result of the recent debt settlement to the United States. Prices of
Industrial stocks are rising, and refugee indemnification bonds have appreciated on prospects of a refugee loan. Recent local estimates indicate a larger budget deficit for the current year than was originally anticipated. Current receipts, however, show an improvement. Favorable
weather is also reported for crops.
NETIIERLAND EAST INDIES.
Netherland East Indian import trade of the past week was steady, featuring much heavier shipments from the Pacific Coast. Demand from
California for gaplek meal, a waste tapioca product for cattle food, was
good, but shipments were restricted on account of strict regulations governing the entry of cattle food into the United States.
PHILIPPINE ISLANDS.
Retail stores of Manila reported very satisfactory Christmas trade during the past week. General wholesale business, however, is slow as a result of the approaching holiday season.
Oopra market and prices continue firm, because of lighter arrivals.
Although abaca trading is very quiet because of the approach of holidays,
the market is steady.
Production has increased slightly and prices, which are nominal, are
somewhat lower.
SALVADOR.
Business continued to be very poor during the month of December, this
condition being attributed to the tightness of money. The Christmas trade
was disappointing and much less in volume than usual. The coffee market was quiet, prices being firm with little change. European purchases
of coffee fell off, but increased amounts were taken by American importers.
SWEDEN.
Negotiations between workers and employees in the Swedish industry
involving almost 20,000 men are meeting with difficulties. The Government has appointed a mediator who is now endeavoring to reach a peaceful solution. Unless the wage question is settled by the end of the year,
the pulp mills are expected to close down on January 1, 1928.
TRINIDAD.
Continued unfavorable weather and heavy rains have damaged the cacao
crop in some sections of Trinidad and have reduced the general output
for December to about 100,000 pounds daily. As a result, the cacao
movement is not expected to be in full swing before February. Sugar
crop conditions are satisfactory, but the lime crop appears to be a total
failure. All other crops are normal. Crude oil and asphalt production
Gold and Silver Imported into and Exported from the
United States by Countries in November.
The Bureau of Foreign and Domestic Commerce of the
Department of Commerce at Washington has made public
its monthly report, showing the imports and exports of gold
and silver into and from the United States during the month
of November 1927. The gold exports were $55,265,522.
The imports were $2,082,246, $716,195 of which came from
Canada and $511,795 from Mexico. Of the exports of the
metal, $33,000,000 went to Brazil and $20,058,967 went
to Canada.
GOLD AND SILVER EXPORTED FROM AND IMPORTED INTO THE
UNITED STATES DURING NOVEMBER 1927.
Gold.
Total.
Exports.
Imports.
Silver.
Refined Bullion.
Total (Ina Coin).
Exports. Imports. Exports. Imports.
CountriesOunces. Ounces.
$
$
$
$
France
2,139
27,648
12 347,068
Germany
3,249
199,093
4,484
Italy
69,161
1,387 569,837
United Kingdom_
410
329,099
20,058,967
716,195 100,562 153,041 154,630 449,665
Canada
34,217
Costa Rica
1,034
644
12,272
Guatemala
10,450
Honduras
153.764
86,654
34,695
Nicaragua
826
1,245
8,260
Panama
84,559
47,644
Mexico
580,932
511,795
2 622,942 292,536 3,075,959
Newfoundland and
Labrador
200
43,100
Trinidad Ar. Tobago935
Other Br. W.Indies
1,500
190
10,840
Cuba
104
Dominican Republic
27,000
Dutch West Indies_
1,900
Haitian Republic_
1,450
744
Bolivia
135,220
33,000,000
Brazil
29.830
Chile
81,089
12,176
158,372
Colombia
534
7,230
332
105,820
Ecuador
3,496
189,993
3,847
Peru
1 134,712
39,670
Venezuela
2 424,987
4,255,892
British India
104,000
296,149
British Malaya__ __
Ceylon
5,000
2,198,069
3,852,669
China
350,010
Java and Madura__
870,464
Hongkong
118,372
1,424
Philippine Islands._
362
Australia
11
25
15,048
14
New Zealand
6,940
5.673
Belgian Congo
240
British South Africa
Tr.el----------- Sc 955 099 9 009 945 0 130 204 3,020,572 5,833960 5.102 160
Return from Abroad of Governor Strong of New York
Federal Reserve Bank-Speculation as to Gold
Shipments.
Benjamin Strong, Governor of the Federal Reserve Bank
of New York, returned from Europe this week, arriving
here on the steamer Mauretania which reached New York
Dec. 27. Observing that Mr. Strong, with his return,
brought only the statement that there was nothing of any
significance he could say at this time, the New York "Evening Post" of Dec. 27 said:
His only report of his visit to England, which has been regarded as of
wide significance from an international financial standpoint, was contained
in these words:
"I have been In England for eight days conferring with Montagu Norman
and other English bank heads, but there is nothing of any significance
that I can relate at this time.'
When pressed for information of financial affairs abroad, Mr. Strong
added that any further statement would "have to come from London or
the Federal Reserve Bank here."
See Link with Gold Exports.
No inkling of the subjects discussed by the world's leading international
bankers in the London conferences has been permitted to leak out. Conjecture connected Governor Strong's visit with the heavy exportation of
gold from the United States to Europe and many other countries, with
3562
THE CHRONICLE
recent or future movements to stabilize the currencies of France and Italy
•on a gold exchange basis and, perhaps, with steps taken to provide a gold
basis for the British Treasury notes.
Little doubt exists in the minds of American international bankers that
Governer Strong favors the outward gold movement from America for the
reason, if no other, that it tends to restrict the basis for expansion of bank
credit with consequent tendency toward inflation here. The tremendous
expansion of bank credit in the United States since 1921 has been criticized
by some leading American bankers.
Beam Exports Criticized.
On the other hand,suggestions by Louis T. McFadden, Chairman of the
Banking and Currency Committee of the House, and by other bankers that
America could well afford to export 81.000,000,000 in gold without adverse
effect on money rates here, has been the subject of some criticism.
The answer has been that Europe needs the gold as a basis for credit
and that America will profit in enhanced trade as Europe prospers more
abundantly.
Expectations that important international financial transactions may
develop from Governor Strong's visit are fostered by the widespread
changes in international money markets which followed the conference of
European central bankers with Mr. Strong at Washington last summer.
Only a few weeks after that conference rediscount rates of the Federal
Reserve banks were reduced, and since then the tide of gold movement
turned to exports. The volume of gold outflow has lately become the
heaviest since the war.
Financial experts are wondering if other important developments are to
follow the London conferences.
Representative McFadden Approves Gold Exports—
Favors Redistribution of Gold to Aid in Stabilization of Currencies Abroad—In London Interview
Says We Can Reduce Stock $1,500,000,000 Without
Influencing Money Rates.
According to Representative Louis T. McFadden, Chairman of the House Banking and Currency Committee, it
would be possible for the United States to export gold to the
amount of $1,500,000,000 without provoking monetary
stringency. Representative McFadden, who is quoted to
this effect in the London "Financial News," was present in
that city at the time of the visit there of Governor Strong
of the Federal Reserve Bank of New York and it was stated
in the New York "Evening Post" that Mr. McFadden was
believed to have taken part in the recent conversations which
Governor Strong had with the Governor of the Bank of
England and other British and financial authorities. One
of the developments of Governor Strong's visit abroad has
been the arrangements for the stabilization of the Italian
lira on a gold basis, referred to in these columns Dec. 24
(page 3418). Governor Strong, as we note elsewhere
in to-day's issue, returned to New York the present week.
The views of Representative McFadden on gold exports,
were given as follows in the London "Financial News'
of Dec. 19:
The resumption of gold shipments from New York to Europe through exchange transactions, for the first time since the war, has raised a series of
problems. The question which deserves the greatest attention is whether
the export of gold is in accordance with the interests of the United States.
Being on a gold basis, the United States cannot refuse to part with gold;
but, by means of raising the Bank Rate or checking the issue of foreign
loans, its authorities are well in a position to stop the efflux of gold through
arbitrage transactions. It is therefore of great importance to ascertain
the views held in New York and Washington about the effect of the efflux
on the domestic situation in the United States.
'We are enabled to publish below the views of Mr. Louis T. McFadden,
Chairman of the Committee on Banking and Currency of the House of
Representatives, one of the leading authorities on finance in the United
States. Mr. McFadden has just arrived in London on an unofficial visit,
with a view to studying conditions and establishing relations with leading
personalities in the city. He intends to visit several continental centres
with the same object.
Redistribution Welcomed.
In an interview with a representative of the "Financial News", Mr.
McFadden stated that he approves of the redistribution of gold so far as
it is used by the buying countries for the purpose of stabilization of their
currencies. "Through the working of the Federal Reserve System," he
said, "it was possible to absorb large amounts of gold without producing
any credit inflation on a corresponding scale. Now that there is a turn
in the trend, we can afford to lose large amounts of gold without bringing
about a contraction of credit. This shows that the surplus gold has been
well sterilized."
Our representative asked Mr. McFadden whether he could give an approximate estimate of the amount of gold the United States can afford to
lose without affecting the credit situation in the domestic market.
"I believe we could reduce our gold stock by about $1.500,000,000 without provoking any influence upon our money rates," was the reply. "This,
however, does not mean that we are desirous of losing that amount.
"In fact, in my opinion, the normal requirements of gold in the United
States are likely to expand sufficiently within the next ten years or so as
to enable the Federal Reserve System to make full use of its total gold stock.
To Aid Stabilization.
"If, in spite of this," Mr. McFadden continued, "we are willing to part
with some of our gold which at the present moment is not required, it is
because we want to help other countries in their task of establishing a stable
currency and returning to a gold basis. Should the gold standard be
adopted once more by the majority of civilized countries, there will be
no difficulty for us to increase once more our gold stock when the economic
expansion in the United States increases our requirements."
With reference to reports, according to which there is a movement in the
United States to oppose the policy facilitating the export of gold, Mr.
McFadden remarked that it is merely the continuation of the campaign
which was launched last summer against the reduction of the Bank Rate.
"Certain quarters do not realize that the re-establishment of stable monetary conditions in Europe and in other parts of the world is to the interest
American producers, as it will enable them to find external markets
[VOL. 123.
for their surplus products. They criticized the reduction of the Bank Rate,
and now they criticize the gold efflux, which is a natural consequence of the
reduction, because they are unable to appreciate the advantages arising to
them through the increase of the buying capacity of foreign countries."
Low Money Prospects.
Questioned by our representative whether a rise in money rates in the
United States is likely in the near future. Mr. McFadden replied in the
negative. "The monetary ease is due somewhat to the adjustment of
industrial production to demand, which means a slowing down of the
expansion. In addition, a considerable portion of our national wealth is
being converted annually into liquid resources. This secures a lasting
affluence of funds. Money rates are likely to remain low for some time to
come, and an increase of the Bank rate in the near future appears highly
improbable. The low money rates tend to encourage foreign borrowing
in the American markets, which is a desirable process, as it will enable the
American producers to find markets abroad."
In reply to our representative's question as to German borrowing, Mr.
McFadden stated that he fully shares Mr. S. Parker Gilbert's views on the
subject. With regard to the problem of the priority of reparations over
commercial debt he said that it is fair to discriminate between productive
and unproductive loans.
"If the proceeds of an external loan tends to increase Germany's producing
and exporting capacity," he said, "then it has contributed to increase her
capacity to pay reparations. It is only fair, therefore, if the service of those
loans enjoys a priority over reparations payments. If, on the other hand.
external loans are raised for unproductive purposes, then investors are
advised to exercise great caution."
Banking Expansion.
With reference to the development of American banking, Mr. McFadden
said he believed in the concentration of banks, which is in accordance with
the tendency prevailing In industries,railways, &c. His recent amendments
to the National Banking Federal Reserve Acts tend to support this tendency,
by enabling the national banks to open branches in the cities. The success
of this experiment will determine the future attitude of legislation towards
the methods of banking expansion.
"An interesting trend in American banking is the endeavor of the leading
banks in the West and Middle West to establish direct relations with South
America and with London and other European centres, independently from
New York. Another interesting tendency is the creation of a great number
of investment trusts. The movement has assumed very large dimensions
during the last year or two. It might become necessary to regulate their
status under the Banking Act. As in this country, in the United States
investment trusts vary as regards standing. The practice of establishing
Investment trusts in conjunction with issuing houses cannot be regarded as
altogether desirable."
Secretary Mellon Reported as Approving Views of
S. Parker Gilbert Regarding Fixed German Reparations — Would Not Include Allied Debts
Therewith.
According to a Washington dispatch to the New York
"Times," Secretary Mellon was reported on Dec. 19 as
strongly approving the attitude taken by S. Parker Gilbert,
Agent General of Reparation Payments, in his annual report, that the total amount which Germany will be required
to pay in reparations should be fixed with as little delay as
possible. But at the same rine, says the dispatch, the
Secretary was emphatic in making known his opinion that
there was no connection between reparations and the wartime debts owed to this country by the Allied nations.
It was added in the "Times," Washington advices:
Mr. Mellon, it was said, felt that it should be a very simple thing to
put into effect this theory, which Mr. Gilbert contended was essential
to a successful working out of the reparations problem, and the statement by Mr. Gilbert supplemented by the expressed attitude of Mr. Mellon has served to place the issue sharply in relief.
The position taken by Mr. Mellon in regard to the war debts was
made known, it is understood, because of deductions by some observers
abroad that if consideration was to be given to a fixation of the total
of reparations Germany must pay, presumablsw at a sum considerably
lower than represented by the $33,000,000,000 in reparation bonds which
Germany has signed, France and perhaps other of the Allied countries
would in exchange dontand a readjustment downward of their war debts to
the United States.
The policy of the Coolidge Administration has been that there is no
relation between reparations and the war debts and Mr. Melion's attitude
came as a reiteration of this policy.
It has been forecast privately, in more than one quarter, that the question of modifying the reparation burden of Germany would be brought
forward well in advance of September 1928, when the maximum annual
payments to be assessed under the Dawes plan will be reached, and that
the issue would play a part in the national election In this country,
winch will be in its most heated phase at that time.
Union Trust Co. of Cleveland Says Holders of German
Bonds Have Nothing to Fear on Reparations
Developments or General Conditions in Germany.
Reassurance respecting the safety of the large American
holdings of German dollar bonds, amounting to approximately
00,000,000, is found in a survey of the German
financial situation just made by the Union Trust Co.,
Cleveland. Germany has been the largest single foreign
borrower of American funds since the war. Recent developments, including Agent-General Parker Gilbert's criticism
of German finance, it is pointed out, have helped to cause
German bond prices to decline. Much of the current
uncertainty, the bank points out in its magazine "Trade
Winds," revolves about the difficulty of making exchange
transfers in connection with the maximum of German
DEC. 31 1927.]
THE CHRONICLE
reparations payments of $625,000,000 which begin in
September 1928. The bank says:
As to Germany's ability to make payment of the reparations account
there is little doubt. Under the Dawes Plan the reparations obligations
of Germany are met when the designated payments are deposited in marks
in the Reichsbank. The Allies obtain no benefit from these payments
unless the marks are converted into the currencies of the allied countries.
The Dawes Plan provides for a transfer committee, which is to convert
the marks into foreign currency only to the extent to which this can be
done without impairing the stabilty of the German currency. This
transfer process would be easy were Germany creating a large demand
for marks in other countries through an exces3 of exports. Actually she
is running a huge excess of imports.
le If there Is not enough exchange to go around for both reparations transfers
and interest and principal on private loans, what action may the transfer
committee take? It has the power to suspend reparations payments, but
not private financial transactions.
Even if the Allies had the power to sidetrack payments on private loans
in favor of reparations it would be extremely bad business for them to do so.
The foreign loans to Germany, for the most part, have been for productive purposes, and have contributed greatly to Germany's rehabilitation.
Without them there would be no reparations payments at all. Any
action, such as holding up interest on loans, would undermine Germany's
credit and undo all the constructive work already accomplished. Such
a move by the Allies is highly improbable.
In the coming months there is likely to be considerable agitation in
Germany for revision of the reparations schedules, or at least some fixing
of the total amount to be paid. At present, the Dawes Plan merely
provides for annual payments for an indefinite period. Until this matter
Is finally settled and agitation quiets down, German dollar bonds may be
subject to minor fluctuations. But the whole tendency in Europe is
toward financial and economic stability, and that the reparations matter
eventually will be worked out for the general good, there is little doubt.
To sum up. Germany has had industrial recovery,and the Allies recognize
the importance of fostering this recovery, if they want to collect reparations. They are unlikely to take any action calculated to restrict payment
of service or principal on private or municipal loans. A calm curvey of
the main and controlling factors brings the conviction that holders of
German dollar bonds have nothing to fear from reparations developments
or general conditions in Germany.
3563
Secretary Mellon's findings follow over a year of investigation by the
New York anti-dumping unit of the customs service and careful studies by
customs agents in Germany.
Several months ago the initial report on the dumping investigation was
made, and it is understood to have recommended the issuance of an order
to protect American interests against German steel alleged to have been
sold at unfair prices.
During the investigation strong representations were made to Secretary
Mellon by officials of the German Embassy on behalf of the German producers. It was pointed out that the United States has a most-favored
nation treaty with that country. German officials insisted that there were
no unfair prices or practices in connection with the export of products
their industry.
Movement Not Great.
Because of the international aspects of the situation, She desire of the'
United States to assist German industrial rehabilitation and information
received at the Treasury that the movement of German steel had materially
decreased, Mr. Mellon sent the report back for additional investigation.
Mr. Mellon asked Attorney General Sargent for an opinion as to the legal
aspects of an anti-dumping order under the most-favored-nation treaty
as well as a careful interpretation of the anti-dumping clause of the Tariff
Act. Whether or not the Department of Justice opinion was received
before Mr. Mellon ruled that there should be no order was not disclosed,
but in view of the fact that evidence showed an order not justified, the
Treasury could act without the Attorney General's opinion.
The investigation showed that the movement of German rolling mill
products to the United States in the last few months has not been great and
that their sale on the American market will not materially hinder the domestic industry. Much of the German steel was coming to the United States
In the form of ballast for ships, according to officials.
On behalf of the American industry it was claimed in some quarters that
the German steel producers were given price rebates, bounties or subsidies
and preferential freight rates from the manufacturing center to ocean ports,
making it possible for them to undersell the producers of this country.
There has been an intimation that the German exports to the United
States were purposely diminished during the anti-dumping investigation
and that should the Treasury decide against an order the exports would be
resumed. While this was regarded as unlikely by the Treasury, to guard
against that tendency Mellon instructed the customs service to keep a close
watch on steel imports, and notified the American industry that large
scale shipments at low prices would result in appropriate action.
Italian Lira Stabilization is Consummation of Scientific
Financial Operations, Says Roberto Pozzi—Gov33% Dividend Declared by Bank of France.
ernment's Action Designed to Protect Security
The following is from the New York "Evening Post" of
Holders and Bank Depositors.
Dec. 28:
•
A dispatch from Paris to-day said that in spite of the slump in the redisIn a cablegram to the International Power Securities
business, the Bank of France had declared a dividend of 33% net.
Corporation stating the basis of the Italian Government's count
against 32% for 1926. Presumably reserves were drawn upon, since
action in stabilizing the lire at 19 to the dollar, Roberto profits on exchange holdings go to the Government.
Pozzi of Milan, one of the leading corporation lawyers of
Europe, and an authority on international finance, characCotton Bank Formed in France Under Title
terizes the move as "the consummation of a scientifically
Banque Cottoniere.
conducted financial operation." Mr. Pozzi says:
Regarding the cotton bank formed in France, (to which
The stabilization of the lira decided on by the Government after long,
delicate preparation, has been received with the greatest enthusiasm among reference was made in these columns Sept. 17, page 1531)
we have received under date of Dec. 13 the following adall classes. Instability of exchange and speculation pressure, upward, and
downward, caused in recent years an atmosphere of uncertainty in every vices from the Banque
De Paris & Des Pays-Bas:
business branch and all conditions
of life; especially during the period of
temporary stability.
The stabilization at that time was not desired by Mussolini because it
was considered that the exchange rate was unjustified by real conditions
and it was the Government's attitude to bring the lire to a level answering
real value. Mussolini felt it his duty to protect the middle classes who
are holders of public securities and depositors in savings banks. Therefore,
resisting all pressure, even international, Mussolini in 1926 chose opposite
road inaugurating and conducting the battle of the revaluation of the
lire.
The results of this policy were marvellous and the lira which in July
1926
had reached the lowest rate, 149 to the pound, in the beginning
of 1927
settled at 90 by the Government's firm will. Having realized
practicable
stability 90 lire to the pound. or 18.30 to the dollar, a production of
prices
to vicinity of that rate; the State budget being stable; the floating
debt
abolished by conversion into consolidated loan and stated bank
note circulation reduced by $2.500,000.000, the Government considered
the moment suitable to stabilize the lira at a slightly higher rate, 92.46
to the pound
and 19 to the dollar. This operation is feasible, thanks to the
aid of
American and English finances opening credits of $75,000,000.
and $50.000,000 and places the new legal quotation of the llra under cover of
reserve
of 16,497,000,000 gold lire or about 81% of the total present
bank note
circulation.
The stabilization of the lira on these bases is not only consummation
of
scientifically conducted financial operation; it Is also testimony of
the
spirit of sacrifice and national solidarity that Italy offers to herself faith,
and to
the world.
Germany Not Guilty of Charge of Dumping Steel
Products In Violation of Emergency Tariff Act.
Allegations that the anti-dumping section of the Emergency
Tariff Act had been violated by German steel producers
are found to be without justification by Secretary of the
Treasury Mellon, who on Dec. 23 issued a statement as
follows:
The Secretary of the Treasury announces that after an
extended investigation and careful consideration of all the evidence
presented
on behalf of the parties in interest ho has reached the conclusion by and
thatla
finding of dumping with respect to importations of steel
products from
Germany is not justified.
The Secretary said the question was a close one and that while
present
conditions and prices did not seem to justify a finding of dumping,
the
entire situation would continue to be carefully watched by the
Treasury
Department so that should conditions change the necessary
steps might
be taken at once to prevent American industry from being
subjected to
unfair competition within the meaning of the anti-dumping section
of the
Emergency Tariff Act.
The Washington bureau of the New York "Journal a
Commerce" in referring on Dec. 23 to Mr. Mellon's statement said:
In order to facilitate commercial relations between this country and
yours we have recently founded, in collaboration with an important group
of spinners from the North and East of France, the Banque Cotonniere,
with an initial capital of Frs. 10,000,000.
The new institution, whose head office is at 5, rue Scribe, Paris, will
engage in all banking operations in connection with the French cotton
industry and especially the financig of purchases of cotton in producing
countries.
The Board of Directors is composed of the following:
Messrs. V. Tentorey, Epinal, Chairman; Eugene Lavoisier, Saint
Leger du Bourg-Denis; Julien Le Ban, Lille; Max Prud'Homme, Epinal;
Andre Schwab, Hericourt; Pierre Toulemonde, Tourcoing and Adrien
Jacques, Assistant Manager of the Banque de Paris & des Pays-Bas.
With exception of the last named all of the Directors are members
of the Comite de Direction du Syndicat General de l'Industrie Cotonniere Francaise.
Spanish Oil Monopoly—Compensation to be Made to American Oil Companies for Property Taken Over.
The State Department at Washington issued on Dec. 29
a statement regarding the Spanish oil monopoly; the announcement was published in the United States Daily from
which we quote as follows:
The Premier of Spain, Primo de Rivera, and, the Spanish Minister of
Finance, Calvo Sotelo, have assured the American charge d'affaires at
Madrid, Percy A. Blair, that the Spanish Government will give adequate and generous compensation to American oil companies whose
properties have been taken over by the Spanish petroleum companies.
A telegram from Mr. Blair summarizing his conferences with Primo
de Rivera and Minister Sotelo, received by the Department of State,
was made public on December 29.
Three Plants Taken Over.
Three petroleum plants belonging to American companies have been
taken over by the Spanish monopoly, according to the Department of
State. These are the plants at Alicante and Valencia belonging to the
Standard Oil Company of New Jersey, and a plant at Malaga, largely
American owned.
The announcement by the Department of State, summarizing its
negotiations with the Spanish Government, follows in full text:
On June 28, the Spanish Government issued a degree providing for
the establishment of an oil monopoly in Spain under Government auspices.
This decree was supplemented by further decrees issued in October
and the monopoly was awarded to a group of Spanish bankers
and
financiers.
Monopoly Being Established.
To put the monopoly into effect the Spanish Government,
beginning
about Dec. 1, has been taking over private installations, including
those
belonging to foreign concerns. Among those thus taken over are
the
3564
THE CHRONICLE
plants at Alicante and Valencia belonging to the Standard Oil of New
Jersey, and a plant at Malaga which is largely American owned.
The Department has been watching the situation closely and has from
time to time issued appropriate instructions to the American Embassy
at Madrid to make representations in order to protect American oil
properties in Spain.
Compensation Assured.
A telegram from the American Charge d'Affaires at Madrid, dated
December 27, states as follows:
"Interviewed by the Premier yesterday and at his suggestion, Minister
of Finance. Seizures and compensation were fully discussed and appropriate representations made. Both Ministers gave assurances that
valuation of property seized or products seized would begin immediately;
that the entire industrial property of the companies involved will be
directed by the monopoly; that interest payments will be made from the
date of seizure and that compensation will follow as rapidly as possible.
Both stated that it was the Government's intention to deal generously
with expropriated interests."
[VOL. 125.
issued under a loan contract dated Jan. 21 1921, that $1,500,000 face amount of these bonds have been drawn by Tot
for redemption out of moneys in the sinking fund on Feb. 1
1928, at 1073.%. Such drawn bonds will be redeemed and
paid on and after Feb. 1 1928, at the redemption price upon
presentation and surrender at the offices of J. P. Morgan
& Co., 23 Wall St., New York or at Guaranty Trust Co. of
New York, 140 Broadway. Interest will cease on all such
drawn bonds after Feb. 1 1928.
Interest of Blair & Co., Inc. in American International
Corporation Disposed of to Group Including
Lazard Freres,Scott &Stringfellow and M.C.Brush.
The following statement was made at the offices of the
To Discontinue Figures of South African Diamond Output American International Corp. on Dec. 29:
Lazard Freres, Scott and Stringfellow of Richmond, Va., and M. 0.
—Restriction Law.
Brush. President of the American International Corp., have this day
A Johannesburg cablegram Dec. 29 from the Central purchased
the entire interest of Blair & Co., Inc., In the American InterNews to the New York News Bureau states that the Mines national Corp. Harry Bronner and Ellsha Walker, who have represented
Blair
& Co., Inc.. on the American International Corp.'s Board, have
Department announces that diamond production figures
tendered their resignations as directors, and John J. Raskob, Vice-Prewill no longer be published. In its issue of Dec. 30 the sident and Chairman ofthe Finance Committee
of the General Motors Corp.,
New York "Journal of Commerce" printed the following has accented an invitation to go on the board.
It is understood that the purchasers have during the past
correspondence from Paris under date of Dec. 20:
The passage of the diamond restriction law by the Parliament of year acquired a very substantial block of this stock and it
South Africa is hailed as the inauguration of a new era for the industry would appear that this additional purchase gives them a
here. De Beers has been moderately, but consistently, strong as a
very large interest.
result.
The supply of diamonds from independent alluvial workings has increased at an alarming degree lately. For the year ended October 31 Bombing of Buenos Aires Branches of National
City
the value of this independent production amounted to £6,258,000, as
Bank of New York and First National Bank of Boston.
against an average production of £1,654,000 before the Government
began the policy of freely giving permits to work the alluvial deposits
According to Associated Press advices from Buenos Aires
of the Transvaal.
Dec.
25, Christmas Eve brought injuries to nearly twenty
The diamond industry, it has been universally recognized, suffered
from an excess productive capacity which threatened to flood the market. persons in two terrorist bomb explosions that wrought havoc
Furthermore, in view of the fact that the cheapening of diamonds in two branches of United States banks in that city. In part
jeopardized the future demand for the stones, which was largely based
the dispatches added:
on their great value, pressure to bring about restriction of production
All of the casualties occurred in the Buenos Aires branch of the National
through legislation has been persistent. Hitherto the South African
Bank of New York shortly before noon. A clock stopped by the exGovernment has refused to take action, on the ground that nothing should City
plosion gave 11:54 as the exact time. Shortly afterward another bomb
be done to aid the large companies. Only with the recent closing down
exploded at the Argentine branch of the First National Bank of Boston,
of production by nitny large producers has it been possible to pass the
about three blocks away. These are the only American banks in Buenos
long agitated law.
Aires, although there are a dozen other foreign banks in the same section;
De Beers is now the dominant factor in the field and governs the
the heart of the financial district.
policy of the Syndicate of Diamond Producers, which also includes the
The explosions, attributed to Sacco-Vanzetti sympathizers, came in the
Premier, Jagersfontein and Consolidated Diamond Mines. The commidst of preparations for the Christmas holidays, just a few minutes before
pany's reserve production is very large, but it has consistently followed the close of
work on the regular Saturday half-holiday.
a policy of keeping production down and has used its influence to
The banks have been under guard since the recent Sacco-Vanzetti demonaccommodate the supply to what it thought could be absorbed by the strations, but
vigilance was relaxed as tension over the executions in Boston
world market without reducing th price. The company invested £14,- seemed to die
down.
500,000 in the acquisition of its properties and its management has sought
On Dec. 26 further advices from Buenos Aires (Associated
to bring about stability of operations and profits rather than any tem.
porary increase in earnings which will jeopardize its future.
Press) said:
Continuing their investigation of the bombing of the Buenos Aires branch
of the National City Bank of New York on Saturday, the police have made
Kroon to Be New Unit of Esthonian Currency.
about seventy arrests.
Only one death has occurred so far, that of Manuel Taboada. One other
The following is from the "Herald Tribune" of Dec. 30:
A new monetary unit, the kroon, is to replace the mark in Esthonia be- man Is in a grave condition. The remainder of the injured are reported
ginning Jan. 1. according to an announcement made yesterday to the Asso- progressing satisfactorily.
The bank officials announced that all the valuables and documents were
ciated Press by the Consul-General of Esthonia in this city. The
latter
said the'croon would have a value of 100-248 gram of gold, or the equivalent intact and that an examination showed everything in correct order from
the
financial end. There was no sign of a run when operations began this
of 100 cents. The mark had a value of one sent. New sent as well as kroon
morning. With the removal of the debris general conditions within the
notes will be issued.
Reorganization of the central bank of Esthonia has been under consid- main hall have been restored, but the great damage done by the explosion
eration for some time. A definite relationship between the estmark and Is plainly observable.
the gold crown was established in 1924, and stabilized exchange rates have
since been maintained.
Department of State Studying Proposal for Loan to
Austria.
Bonds of City of Buenos Aires (Argentine) Awarded to
Chatham Phenix National Bank & Trust Co.
The Chatham Phenix National Bank & Trust Co. of New
York has been awarded 8,000,000 pesos City of Euenos Aires,
Argentine 6% 33-year gold bonds. Associated with the
Chatham Phenix National Bank & Trust Co. are Blyth
Witter & Company and the J. Henry Schroeder Banking
Corp. of London. Other bidders for this loan included the
Guaranty Trust Co. of New York, First National Bank of
Boston, Hallgarten & Co., Kissell Kinnicutt & Co., and
J. & W. Seligman & Co.
According to the United States Daily of Dec.30 a proposed
loan of $100,000,000 to Austria for reconstruction purposes
is being studied by the Department of State. An oral
statement to this effect was made by the Department on
Dec. 29, says the paper quoted, which goes on to say:
The Department, It was stated, would have no objection to a loan to
Austria, provided a satisfactory arrangement can be worked out between
Austria and other countries regarding the complicated question of the liens
on relief bonds and reparation payments.
The proportion of the loan which it is proposed should be floated In the
United States is not yet known at the Department, it was stated, but the
total loan of $100,000,000 is to be used for reconstruction and for the construction of railroads and other public works.
It is not correct to say, it was stated orally, that the Department of
State is holding up the matter. The loan is complicated by the liens of
relief bonds and the provision of the peace treaty regarding Austrian
reparations, whose amount has not yet been fixed. Various plans have
been discussed regarding this, it was stated.
The Department of State has not been advised that the other governments concerned have accepted any particular plan covering these matters,
it was stated, and is not informed that the Reparations Commission has
taken any action regarding reparations claims against Austria.
The relief loan to Austria by the United States Government immediately
after the war amounted to $25.000.000, but payment of this was posthoned until 1943 by the Lodge Resolution.
Republic of Cuba Bonds Drawn for Redemption.
J. P. Morgan & Co. are issuing a notice to the holders of
Republic of Cuba External Debt 5% gold bonds of 1914,
due Feb. 1 1949, that $234,300 principal amount bonds of
this issue have been called for redemption by operation of the
sinking fund on Feb. 1 1928, at 102%2%. Such drawn bonds
will be paid on and after Feb. 1 1928, at the offices of J. P.
Morgan & Co.,23 Wall Street, New York,or in the European
Regarding the proposed loan, the New York "Journal of
cities as stated in the redemption notice. Interest will cease Commerce" of Dec. 23 said:
on such drawn bonds on Feb. 1 1928.
Failure of Washington to approve the protocols under which the new
Bonds of Kingdom of Belgium Drawn for Redemption.
J.P.Morgan & Co.and Guaranty Trust Co. of New York,
are issuing a notice to holders of Kingdom of Belgium
External loan twenty-year 8% sinking fund gold bonds,
Austrian $100,000.000 international reconstruction loan is to be Issued
I. holding up the flotation of the bonds, it was learned in informed banking quarters here.
Negotiations with bankers have reached an advanced stage, and the
loan could be floated as soon as the authorities approve the priorities of
the issue. The League of Nations at a conference held In London early In
the fall approved the placing of the new loan ahead of reparations payments,
DEC. 31 1927.]
THE CHRONICLE
The United States, however, not being a member of the League, must approve these arrangements separately, and so far has not done so.
The United States has several claims on Austria, most important of which
Ii on account of expenditures for relief shortly after the war. These claims
were waived, as were practically every other Austrian obligation, in favor
of the first League of Nations loan sold in 1924. All parties are now asked
to waive their claims a second time.
It is understood that about $60,000,000 of the new Austrian loan will be
floated in this country. It will be handled, according to all indications, by
the same bankers who put out the first Austrian League of Nations loan.
3565
that body on Dec. 27, by a unanimous vote, passed a bill
amending Articles 14 and 15 of the law regulating Article
27 of the Mexican constitution governing petroleum rights.
In reporting the Senate action on Dec. 29 Associated Press
advices from Mexico City said:
Despite objections by Senator Jose Aguayo, who asserted that the
proposed reshaping of Articles XIV and XV of the oil law granted
more to the oil companies than they demanded, the Senate tonight passed
the changes unanimously. After he had voiced his objections Aguayo
voted in favor of the amendment. The bill passed was as proposed
by President Calles with a penalty clause added by the Deputies.
Stockholders of Disconto-Gesellschaft Urged to Exchange Holdings for New Shares as Soon as PosIn stating that President Calles initiated the movement
sible.
for the change after the Supreme Court had ruled Articles
To comply with the German Government's regulations 14 and 15 unconstitutional in a suit brought by the Mexican
regarding the establishment of gold balance sheets, stock- Petroleum Company, Associated Press accounts from
holders of Direction der Disconto-Gesellschaft have been Mexico City yesterday (Dec. 30) stated:
requested to exchange their shares (Kommandit-Anteile) in
denominations of 40, 50, 150 and 180 Reichsmarks for denominations of 100 and 1,000 Reichsmarks. Dillon, Read
& Co. have been appointed agents to effect the exchange for
American holders. To avoid delay in cashing dividends for
1927, it is recommended that the exchange be effected as
early as possible as dividends can only be paid on coupons of
the new shares.
Proposed Anglo-American Greek Trust.
Under date of Dec. 18 Associated Press advices from
Athens (published in the New York "Times") said:
The Athens National Bank has decided upon the foundation of an AngloAmerican-Greek trust with a capital of $5,000,000. The trust will be for
the promotion of Greek industries and will have its headquarters in London. Two-thirds of the fund will be subscribed by Speyer & Co. and the
National City Bank of New York and Sir Eric Hambro of the London
Royal Assurance Company.
Offering of $2,547,000 City of Cordoba (Argentine
Republic) 7% Bonds—Books Closed.
New financing for South America was effected this week in
an offering on Dec. 28 of $2,547,000 City of Cordoba, Argentine, 10-year 7% external sinking fund gold bonds of 1927.
The bonds were Priced at 97 and accrued interest, to yield
about 7.43% and were offered by Ames, Emerich & Co.,
Inc. and Strupp & Co. The subscription books were closed
Dec. 28. A substantial amount of the bonds was purchased
and withdrawn for sale in the Argentine Republic by Ernesto
Tornquist& Co.,Ltda. The bonds will be dated Nov.151927
and will become dueNov.15 1937. A cumulative semi-annual
sinking fund will be provided, sufficient to retire the entire
issue by maturity, through purchase below par or redemption
by lot at par. The sinking fund may be increased at the
option of the city. The bonds will be in coupon form in
denominations of $500 and $1,000, registerable as to principal. Principal and interest (May 15 and Nov. 15) will be
payable at the offices of Ames, Emerich & Co., New York,
fiscal agents, in U. S. gold coin of the standard of weight and
fineness existing on Dec. 1 1927, in time of war as well as in
time of peace, without regard to the nationality of the bond
holders, and without deduction for any tax, charge, or contribution of any nature now existing or to be established in
the future by the city, or by any National, Provincial, or
any other authority of the Argentine Republic. The New
York Trust Co. is authenticating agent. Regarding the
purpose, &c., of the issue, it is stated:
Purpose of Issue.
These bonds, authorized by Ordinance No. 2853 of Dec. 18 1926 and
Ordinance No. 2899 of June 27 1927. are issued for street improvement
purposes.
Security.
These bonds will be the direct obligation of the city, which pledges its
good faith and credit for the due and punctual payment of principal,
interest, and sinking fund. In addition, the bonds are secured by a first
charge on taxes to be levied against real estate specifically benefited by the
Improvements to be undertaken. The city covenants to deposit with the
Banco de Cordoba, in a special account, all such taxes, as collected, which
must be used exclusively for the service of this loan. The city agrees to
provide for tho service of this loan by monthly deposits with the fiscal
agents of 1-12th of the annual service requirements.
Debt.
These bonds, together with the 7% external sinking fund gold bonds due
Aug. 1 1957, of which $4,645,500 are now outstanding, constitute, as
reported, the sole external debt of the city. There is, in addition, reported
Internal debt outstanding amounting to $1,597,419. The total debt is.
according to report, therefore $8,789,919, or approximately $40 per capita.
Revenues and Expenditures.
Receipts for the past three years have been reported to be in excess of the
disbursements for the same period. Total revenues in 1926 were, according
to report, 6,783,430 pesos as against expenditures of 5,959,260 pesos.
Bill Amending Oil Law Passed by Both Branches of
Mexican Congress.
In accordance with recommendations submitted on Dec.
20 to the Mexican Chamber of Deputies by President Canes,
The amendments do away with confirmatory concessions for fifty
years in exchange for rights acquired by oil companies before May 1,
1917. Instead they confirm for an indefinite time—that it for the time
of the contract—contracts made before May 1, 1927, with surface owners
for sub-soil rights.
Companies must have the contracts confirmed by the Government,
however, within one year from the time the amended laws become
effective.
To these proposals of President Calles the Chamber of Deputies added
a peaalty clause before passing them. The clause provided that those
who failed to apply for confirmation as specified should be considered
as having renounced their rights and that these rights would "have no
,effect against the Government."
The Mexican Supreme Court decision was referred to in
our issue of Nov. 19, page 2751.
New England Flood Credit Corporation Formed to Raise
$1,000,000 Credit in Behalf of Merchants, Farmers and
Others.
With the object of raising a credit of $1,000,000 to be
used in aiding the rehabilitation of agricultural, commercial and industrial establishments which suffered in the
Vermont flood, the New England Flood Credit Corporation has been formed. The Boston "Transcript" states
that it was reported-on Dec. 27 by Thomas P. Beal of the
Second National Bank that the banks affiliated with the
Boston Clearing House Association have already subscribed
their full quota Of $150,000 to the $1,000,000 credit. The
"Transcript" also stated:
At their request, New York banks were included in this movement
to raise a guaranty fund, and they were given a quota of $100,000
which they have raised and reported.
Massachusetts assumed responsibility for the raising of $385,000 of
which the Boston banks' $150,000 was a part, and satisfactory progress
is reported from the various groups working to raise the remainder in
Massachusetts. There never was any doubt about the readiness of any
group to take its full share in the building up of credit for the benefit
of Vermont, and the New England Flood Credit Corporation is now
ready to meet the demand for credit.
Subscriptions to the bonds of the corporation are being
received by John S. Lawrence, president of the New England Council, according to Boston advices Dec. 26 to the
New York "Journal of Commerce," which further state:
Directors of the corporation have fixed the following quotas: Maine,
$50,000; New Hampshire, $30,000; Rhode Island, $75,000; Massachusetts, $385,000; Connecticut, $110,000, and New York, $100,000.
In a circular published by the council the following rules, under
which loans will be made, are outlined:
1. No money shall be loaned for any but rehabilitation purposes and
such loans will be guaranteed.
2. No credit so guaranteed shall be for an amount in excess of the
conservatively estimated loss of the borrowers from the fund.
3. No guarantee shall be made on a loan which should be a bankable
loan.
4. Credits extended to merchants, farmers and other small business
enterprises, not otherwise cared for, will be guaranteed, but any free
aid obtained from other sources shall be deducted from the estimated
total loss of the borrower.
5. All applications for the guarantee of this corporation must be accompanied by a report clearly indicating the loss of the applicant, his
present financial condition, containing, among other items, the moral
hazard, the essential character of his business and whether the bank
which makes the application is willing to make the loan if the guarantee is extended. An independent investigation of all applications
shall be made by the executive committee or its representative.
6. The guarantee shall not be made for an amount in excess of 75%
of the loss as finally determined, the remaining percentage of the loss to
be borne by the lending bank.
7. No interest in excess of 434% shall be charged on any guaranteed loan.
8. The length of the loan shall be for such time as is deemed necessary, but no loan shall be guaranteed unless a satisfactory plan of
amortization and payment has been established.
9. No guarantee shall apply on loans which have not been originally
made prior to Jan. 1, 1929.
10. A satisfactory settlement must be made with present creditors.
The regional directors of the corporation are: Maine, Guy P. Gannett,
Fidelity Trust Co., Portland; New Hampshire, Burns P. Hodgman,
First National Bank, Concord; western Massachusetts, Frederick M.
Jones, Third National Bank, Springfield; eastern Massachuestts, Thomas
P. Beal, Second National Bank, Boston; Rhode Island, Henry D.
Sharpe, Brown & Sharpe Manufacturing Co., Providence; Connecticut,
3566
THE CHRONICLE
[VoL. 125.
E. G. Buckland, New York, New Haven & Hartford Railroad, New
Haven.
Stock Clearing Corporation (New York) Amends Rules to
Enable It To Receive From and Deliver Securities to
It is understood that there has also been formed the VerNon-Members.
mont Flood Corporation with a capital of $1,000,000.
It was announced on Dec. 28 that the By-Laws and Rules
of the Stock Clearing Corporation have been amended for
Georgia Supreme Court Upholds Cotton Futures the purpose of enabling the Stock Clearing Corporation to
Trading—Denies Attorney-General's Petition for act for its members in receiving securities from and deRehearing in Case Against B. L. Layton of Fenner livering securities to banks, bankers, trust companies and
Lic Beane.
other non-members who have been approved by the Stock
The recent ruling of the Georgia Supreme Court to the Clearing Corporation and have entered into an agreement
effect that contracts for the sale of cotton and other com- to comply with its regulations. The announcement added:
Prior to the adoption of such amendments, the Stock Clearing Cormodities for future delivery are legal in Georgia, where such
poration was only enabled to act in transactions between members and
delivery actually is contemplated, was re-affirmed by the in
the operation of clearing loans between its members and approved
same Court on Dec. 17 in the case of State against B. L. banking institutions.
As a first step the Stock Clearing Corporation has entered into an
Layton, manager of the Atlanta office of Fenner & Beane,
with the Bankers Trust Company and the Guaranty Trust
members of the New York Stock Exchange and New York agreement
Company and
and New Orleans Cotton Exchanges. In its previous ruling, near future. it is expected that it will be put into operation in the
Nov. 16, the State Supreme Court held that contracts for
future delivery of cotton and other commodities when actual Philadelphia Stock Clearing Corporation Takes Over Operdelivery is contemplated are legal in Georgia under the
ations of Clearing House of Philadelphia Stock ExLegislature act of 1906, although dealings on margin where
change.
no delivery is contemplated or made are against the law.
The following is from the Philadelphia "Ledger" of
The Associated Press advices at the time of the November Dec. 30:
decision of the Supreme Court said:
The Stock Clearing Corporation will take over the operations of the
Its (the court's) decision was rendered in the case of B. L. Layton, local
manager of the brokerage firm of Fenner & Beane, who was convicted in
Superior Court of dealing in futures on margin and sentenced to twelve
months' imprisonment. He got an new trial by the court on the ground
that the trial judge erred in retuning to grant a request of defense counsel
for certain instructions to the jury. The case was appealed on this point
alone.
Clearing House of the Philadelphia Stock Exchange on January 3, 1928.
Transactions made to-day and to-morrow will be entered on the sheets
provided by the Stock Clearing Corporation, which will be filed in accordance with its rules. Security-balance tickets also will be supplied
by that organiation. The delivery of securities and settlement therefor
through the corporation will start January 9.
It is noted in the Atlanta "Constitution" of Dec. 18 that
after the Supreme Court handed down its November ruling Raleigh Clearing House Association to Impose Service
the State (through the Attorney General) sought a re-hearing
Charge on Small Checking Accounts.
in the case but this application also was turned down in this
A service charge of $1 per month by Raleigh banks on
decision rendered Dec. 17.
deposits averaging less than $100 per month and on which
more than three checks are drawn, has been approved by
Missouri Supreme Court Hold Grain Futures Act valid. the Raleigh Clearing House Association effective Jan. 1.
On Dec. 2 the Missouri State Supreme Court ruled that The Raleigh "News and Observer" of Dee. 15, in reporting
the Missouri Grain Futures act to prevent gambling in grain this, added:
banks, the Commercial National, the Citizens' National, and
futures was valid and did not conflict with the United States theThree
Wachovia Bank dz Trust Co., have decided to put on the service charge,
Grain Futures act. Associated Press advices from Jeffer- while the Mechanics Savings Bank & Trust Co. has definitely announced
that it will not put on the extra charge, and other banks have not Indison City Dec. 2 in reporting this added:
The Federal act, the opinion said, was not intended to encroach upon
or destroy the police power of the States, nor to nullify the Missouri law,
but to restrict its operation.
The decision was in the case of James J. Christopher, a broker of Kansas
City, convicted in April, 1925, of violating the State Grain Futures act
and fined $1,000. Christopher, in his appeal, contended that under the
National Grain Futures act the Federal Government assumed control of
all such trading and that the national act took precedence over State law.
cated whether they will adopt the charge.
"Careful analyses, made by banks in various sections of the country,
show that a considerable loss is sustained on all accounts actively checked
against and maintaining average balances of less than $100," a letter
from the Clearing House to Raleigh depositors states. The Clearing
House has also approved a charge of 50 cents for each check which is
returned by the banks on account of the customer not having sufficient
balance to cover it.
Raleigh is the last of the larger places in the State, with the exception
of Winston-Salem, to add such a charge, according to Paul R. Brown,
Secretary of the North Carolina Bankers' Association, who stated that
around 80 banks of the 550 to 575 banks in the State now have such a
charge.
This charge does not apply to savings accounts of any size, but applies
to all checking accounts of business houses or individuals with an average
of less than $100 and more than three checks per month.
Deal in Futures Nulled as Gaming—Arkansas Supreme
Court Voids Claim for Recovery on Cotton Margins
—Based on Oral Agreement.
According to the New York "Times" New York cotton
brokers expressed interest on Sept. 17 in the announcement
of a decision by the Supreme Court of Arkansas affirming a
verdict holding that a transaction in cotton futures was a Real Estate Bond Business on Firmer Basis Than Ever
Before, According to American Bond and Mortgage
gambling transaction, and that William W. Cohen & Co.
Co.
of this city cannot recover in a suit against one Austin of
"The real estate bond business is on a firmer basis than it
Phillips County, Arkansas. The "Times" went on to say:
The opinion, written by Chief Justice McCulloch,say that in the Winter has ever been before, according to Harold A. Moore, Secreof 1924 the Cohen firm executed in behalf of Austin a number of orders tary
and Treasurer of American Bond and Mortgage Comfor the purchase of cotton on the New York Cotton Exchange for future
delivery. The orders were sent by telegraph from Helena to New York. pany. That this is recognized by the banking fraternities
The brokers sued in the Circuit Court of Phillips County to recover fees and is shown by the tremendous growth of real estate securities
moneys advanced to cover margins, after the cotton purchase had been sold
at a loss. Austin in his answer asserted that the contracts related to the held by banks," Mr. Moore says. In support of this statepurchase and sale of cotton futures on margin with no intention to deliver ment he quotes from figures compiled by the Chase National
or receive any cotton. The Court pointed out that there was no contro- Bank, New York, showing that real estate
securities held
versy "as to the amount due if the contracts were free from the taint of
Wager," and that the sole question involved was whether the evidence by member banks of the Federal reserve system in 1918
was sufficient to support the finding of the jury that the transactions were amounted to $460,586,000, while in 1927 it is estimated that
based upon "wagering contracts."
this figure will reach $2,930,000,000. "This situation,"
Judge NicCulloch's opinion said that the brief telegraph messages disclosed nothing more than "orders for the purchase of cotton for future de- says Mr. Moore, "tends constantly to stabilize the industry,
livery." Austin testified, however, that when he was in New York a few also the fact that such a large number of banks have sold
months before the transactions began he talked with the brokers and that real
estate securities to their depositors during the past year
they disclaimed carrying on any business in spot cotton, but were solely
"In the contract business," and that Austin's orders would be executed as makes them extremely watchful of conditions existing in the
purchases of cotton on margin and not for actual delivery. The Court real estate field." Be continues:
remarked that one of the brokers contradicted that testimony, asserting that no communications with Austin other than those disclosed in the
message were had.
The Arkansas Court concludes that if Austin's testimony was true
"there can be no doubt that the contracts were those which the law denounces as gambling transactions and void, and there can be no recovery based upon such contracts." The Court also ruled that Austin had the
right to testify concerning conversations and oral agreements with the
brokers because"the orders for the purchase of cotton were brief and couched
in such customary terms as would not disclose the real intention of the
parties." For this reason "there might not be any other way of proving
the invalidity of the contracts." The Court accordingly holds that the case
was properly submitted to the jury and that the evidence was sufficient to
sustain the verdict.
Banks are therefore at the present time highly satisfied at the curtailment of plans for supplying new housing which might otherwise seriously
effect the earning power of properties on which they themselves hold
securities, and which are held by their depositors.
The purchase and sale of real estate securities has been especially healthy
among the neighborhood banks, and the securities which they have handled
are largely on properties within the immediate vicinity of the banks.
With this intimate knowledge of the properties, the first appearance of
any serious
reduction in earning power very quickly
results in the supply of
funds by the banks for further real estate development being promptly
withdrawn.
Thus any overbuilding at present can be halted before it reaches the
serious proportions which could threaten a real estate depression of any
magnitude.
DEC. 31 1927.]
THE CHRONICLE
3567
of whether or not
reserves are deficient for one day or more, regardless
recent in application, but a average reserve balances for the period are deficient.
This is a safeguard which is comparatively
such
ns
yours,
depressio
truly
of
Very
care
takes
it
most important one nevertheless, because
GATES W. McGARRAH.
estate securities were less widely
as have existed in past years when real
Federal Reserve Agent.
distributed than at present.
in
mostly
were
securities
form for the computation of deposits subject
g
followin
The
Formerly, it will be recalled, that real estate
banks, insurance companies, and
the hands of institutions such as savings
by banks, members of the Federal Reserve System,
immediate neighborhood of the to reserve
large estates which were not located in the
so well informed of is included in the circular of the New York Federal Reserve
means
no
by
were
ns
institutio
the
Thus
properties.
Bank:
conditions as they are to-day.
is in a great measure due
Demand Deposits,
The present popularity of real estate bonds
from
funds
for
demand
insistent
the
to
as
1. Deposits payable within thirty days, not
to the bonds themselves as well
by leading houses
offered
bonds
realty
Those
housing.
Including U. S. Government Deposits
those who supply
year after year the customers
and Items 2, 3,4 and 5
have an enviable record for no losses. Thus
acquiring
houses
the
and
of these houses continuing to purchase from them ns.
2. Balance due to Banks other than Federal
proportio
vast
to
Reserve Bank (include Foreign Banks) $
new clients the business has grown
realty bonds sold was around
due to Federal Reserve Bank
Amount
3.
It is reported that in 1919 the volume of
dollars.
is over one billion
Deferred Credits
$57,000,000 and in 1927 the volume of offerings
ented
unprecend
nigh
the well
$
Perhaps the other large contributing factor to
4. Officers' checks outstanding
months is the general prossuccess of the industry during the past twelve
5. Certified checks outstanding
the present time
at
activity
business
of
success
5
The
and
perity of the country.
6. Total of Items 2,3,4
least the first half of it, will conDeductionshas been well termed-selective, 1928, at
year it is evident that some
tinue this general prosperity, but as in the past
7. Balances due from banks other than Fedable to share in it, due
eral Reserve Bank and Foreign banks..$
communities and some lines of business will not be
8. Items with Federal Reserve Bank in
to their special problems.
not keep on with
will
business
mortgage
first
the
why
reason
process of collection
There is no
The business of realty bond
its tremendous strides during the next year.
9. Exchanges for Clearing House
congeneral
on
much
so
not
t
$
houses under present conditions is dependen
10. Checks on other banks in same place
and judgment of the
ditions as upon the faith of the public in the integrity
Total deductions Items 7,8,9 and 10
the vigilence and 11.
of
g
slackenin
no
is
there
as
long
so
banks
Just
to
offering houses.
12. Net Balance due
for so many years there
foresight which has characterized the industry
Item 11 may be deducted only from item
field enjoys.
6. Should item 11 exceed item 6 both
will be no lessening in the good-will which the
figures must be disregarded, in which
case item 13 will be the same as item 1.
12)
1
13. Total Net Demand Deposits (Items and
ve
Effecti
Time Deposits,
New Regulations of Federal Reserve Board
than
accounts (subject to not less
Jan. 3-Reserves of Certain Member Banks in New 14. Savings
thirty days' notice before payment) $
York City and Buffalo To Be Reported Semi-Weekly 15. Certificates of deposit (subject to not less
than thirty days' notice before payThe Federal Reserve Board issued this week new regulament)
revisA
banks.
member
to
le
applicab
1928)
of
(Series
tions
16. Other deposits payable only after thirty
ry
necessa
was
out,
points
board
the
days
ion of its regulations,
$
Act
Postal Savings Deposits
to conform to the amendments to the Federal Reserve ons 17.
Time Deposits(Items 14, 15,16 and 17)
Total
18.
regulati
carried in the McFadden Banking Act. The new
In transmitting the new regulations to member banks, the
ekly
which will become effective Jan. 3 1928, call for semi-we
Board, through its secretary, Walter L. Eddy, says:
Reserve
of
City
the
of
reports of reserves by member banks in banks
Washington, Dec. 22 1927.
s of
Buffalo, and banks in New York City in the Borough
To All Member Banks:
in
a new issue of all of its
banks
as
herewith
transmits
well
as
Board
The Federal Reserve
Manhattan, Brooklyn and the Bronx,
last
W. regulations applicable to member banks. Since the issuance of the
Gates
an.
Manhatt
in
s
branche
having
s
borough
Federal
other
edition of the Board's regulations under date of Aug. 15 1924, the
Reserve
Federal
the
of
has
and
it
become
25
Agent
1927,
McGarrah, Federal Reserve
Reserve Act has been amended by the act of Feb.
Dis- necessary to amend certain of the Board's regulations to conform to the
Bank of New York, has issued to member banks in the
Board has also taken this occasion
under amendments contained in that act. The
s
experience
trict, the following circular regarding the requirements
to make a number of other amendments to its regulation which
has proven to be necessary or desirable.
the new regulations:
and there
details,
of
number
a
minor
amended in
Regulation A has been
rulings with
FEDERAL RESERVE BANK OF NEW YORK.
been inserted in the regulation the substance of the Board's
Circulars Nos. 123, has
to
from
Reference
1927.
27
Dec.
828,
regard to the rediscount by Federal reserve banks of paper acquired
[Circular No.
159, 207. 229. 623, 679. 728, 8213
non-member banks.
1928.
3
Jan.
e
-Effectiv
important
most
1928
the
s,
of
Regulation D has been amended in several particular
Federal Reserve Board Regulations, Series
Banks.
for deficiencies in reserves,
Reserves to Be Reported Seml-weekly by Certain Member
of which is Section IV dealing with penalties
has been changed in such a way as to require member banks in cities
which
District:
Reserve
Federal
Second
the
in
Bank
member
To each Member
where Federal reserve banks or branches thereof are located and
bank is sending to you
At the request of the Federal Reserve Board this
banks in such other cities as the Federal Reserve Board may designate
ns,
Board
Regulatio
daily
Reserve
average
Federal
on
of
the
basis
new
reserves
the
their
of
under separate cover a copy
from time to time to compute
This issue becomes effective
deposit balances covering semi-weekly period instead of weekly periods
Series of 1928, applicable to member banks.
net
been made are summarized in
for the better enforcement of
on Jan. 3 1928. The changes which have
as heretofore. Provision has also been made
ying the regulations.
the Board's letter of transmittal accompan
the provisions regarding the maintenance of reserves.
to
more completely the
as
regulate
Regulation F has been changed so
Reserves of Certain Member Banks to Be Computed Twice a Week.
exercise of trust powers by national banks, and a provision has been inserted
n 13, with
bank
or
Your attention is invited to a number of changes in Regulatio
to cover the situation where a State bank, trust company, savings
banks
the provirespect to reserves of member banks, particularly of certain member
having trust business consolidates with a national bank under
of
the
act
of
method
new
by
Feb.
25 1927.
Under the
amended
sions of the act of Nov. 7 1918. as
in New York City and in the City of Buffalo.
located in
Regulation G, which formerly regulated the making of loans by national
computation, deficiencies in reserve balances of member banks
net
d
daily
of
average
been
altogether In
basis
eliminate
has
the
estate,
on
real
be
other
computed
will
and
banks on farm land
the following territory
regulatory
deposit balances covering semi-weekly periods.
view of the provisions of the act of Feb. 25 1927. conferring
has
been
inserted,
and The Bronx of powers upon the Comptroller of the Currency; and there
1. Banks in the Boroughs of Manhattan, Brooklyn
n
ed by the
regulatio
promulgat
the
In lieu of the previous Regulation G,
the City of New York.
t
n.
of
notes
secured
the
rediscoun
in
Manhatta
governing
branches
having
1926,
9
Boroughs
Board under date of Dec.
2. Banks in other
d as Regula3. Banks in the City of Buffalo.
by adjusted service certificates, whih was formerly designate
for tion M Series of 1926.
All other member banks in the Second Federal Reserve District will
to the amendments.
.
Regulation H has been amended so as to conform
the present continue reporting on the same basis as heretofore
Reserve Act by the act of Feb. 25 1927.
The first period for which the computation will be made semi-weekly made to Section 9 of the Federal
s and the proRegulation I has been amended in a few minor particular
will begin on Saturday, Jan. 7 1928, and will end on Tuesday. Jan. 10 1928;
Federal Reserve Bank stock by a member
thereafter such semi-weekly periods will terminate at the close of business vision regarding the surrender of
d.
bank which goes into voluntary liquidation has been'simplifie
on Tuesdays and Fridays.
not amended except by the incorporation therein of
was
K
n
Regulatio
Further Information Affecting Reserves.
which have
amendments adopted from time to time during the year 1927,
Attention is also directed to the following sections of the new Regula- previously been announced.
L.
J
No material changes have been made in Regulations B.0, and
tion D:
This issue of the Board's regulations becomes effective on Jan. 3 1928.
Section II Defining Deposits:
bank
member
each
that
see
to
requested
Reserve Banks are
ent deposits" (which are The Federal
edition
It should be noted that the termis"Governmas
in their respective districts receives at least one copy of this official
only
including
nts)
deposits
defined
requireme
reserve
from
exempt
designated depositaries, and that it of the Board's regulations.
by the United States Government in
moneys by any other Government or
Instructions *which govern only Federal Reserve Agents or Federal
does not include deposits of public by
States, counties or municipalities
deposits
nor
on,
subdivisi
political
Banks will be covered in separate letters or regulations, as in the
Reserve
whether secured or not.
past.
By order of the Federal Reserve Board.
Section IIIParagraph b, on Deductions
WALTER L. EDDY.Secretary.
Allowed in Computing Reserves:
the
ng
amount of net
This section provides for the method of determini
The "Wall Street Journal" of Dec. 29 referring to the new
are set forth
t
details
convenien
reference,
For
reserve.
to
subject
deposits
next page, designed to make clear the method regulations affecting reports of reserves said:
in the form reprinted on thekinds
of deposits and deductions in arriving at
of dealing with the various
By a new Reserve regulation. effective Jan. 3, member banks of the Fedreserve.
to
net deposits subject
eral Reserve System located in Central Reserve cities and in Federal
Section V Prohibiting Loans and Dividends
Reserve position semi-weekly instead of weekly.
While Reserves are Deficient:
Changes in Regulation D with respect to reserves affect particularly
any
the
for
member
is
bank,
unlawful
It
that
out
member banks in New York City and in Buffalo.
This section points
certain
new
loans or to
deficient, to make any
reserves of which are at any time
Heretofore the member banks have followed the practice of adjusting their
by
law
are
reserves
required
total
the
until
and
unless
dividends
pay any
payment of penalties for deficiencies in reserves reserve position Fridays. If the banks were short in necessary requirements
fully restored, and that thebanks
from this prohibition of law. Also while early in the week they would make good by surplus deposits at the end
does not exempt member
are as a matter of convenience computed
reserves
es
in
penalties for deficienci
the week,so that taken over the entire time the average position worked
reserve balances for semi-weekly, weekly or of
on the basis of the average
out correctly.
ess
neverthel
law
applies
whenever
of
n
prohibitio
the
periods,
hly
semi-mont
3568
THE CHRONICLE
The practice of adjusting the reserves once a week frequently caused a
disturbance in the call money market. When the banks were short in
their reserves toward the end of the week they were wont to call loans
heavily. This often resulted in a sharp advance in the rate for call money.
Not infrequently a sharp drop would take place in the rate when the banks
enjoyed a surplus in the early part of the week.
The new regulation calling for a semi-weekly report should have the
effect of eliminating the sharp rises and drops in reserves and maintain
the average curve of reserves more nearly level to exact legal requirements.
Hence there should result a steadier level of collateral call money rates as
soon as the new regulation has had a chance to work out in practice.
The first period for which the computation will be made semi-weekly
will begin Jan. 3, and will end Tuesday, Jan. 10.
The practice of reporting reserves once a week, hitherto in vogue, arose
by grace of the Federal Reserve Board, a convenience to the banks. Banks
at a distance from Federal Reserve cities and Federal Reserve branch cities
will be permitted as heretofore to report their reserves once a week.
In theory the banks are expected to maintain their reserves constantly
at legal requirements. Day-to-day reports could be demanded. But
the matter of physcial inconvenience arising from distance is taken into
consideration.
Section V of Regulation D points out that it is unlawful for any member
bank, the reserves of which are at any time deficient, to make any new
loans or to pay any dividends unless and until the total reserves required
by law are fully restored, and that payment of penalties for deficiencies
in reserves does not exempt member banks from this prohibition of law.
Also, while penalties for deficiencies in reserves are as a matter of convenience computed on the basis of the average reserve balances for semi-weekly,
weekly or semi-monthly (in remote districts) periods, the prohibition of law
applies whenever reserves are deficient for one day or more, regardless of
whether or not average balances for the period are deficient.
EVoL. 125.
United States and also for the total amount of United States money In
circulation. Such inaccuracy has at times been of substantial magnitude,
as, for instance, on the 1st of Feb. 1927. when the absence of up-to-date
information with reference to imports of gold coin resulted in the failure
to take account of gold imports of $39,500,000 during January through the
San Francisco and St. Lawrence customs districts, which at that time were
not submitting telegraphic reports. Prompt reports are now
being received
from both of these districts and also from the New York district; it
is
through these three districts that the largest movements of gold coin occur.
and prompt information from them, which has been available since last
June, has been of great value. Inaccuracies of similar origin have also
affected certain other figures upon which the final figures for gold stock
and money in circulation have been based, and these inaccuracies taken
together have often amounted during the past six years to from $10,000.000
to $20,000,000. In the revised figures presented
in the accompanying
tables, all of these inaccuracies have been eliminated in so far as the basic
records permit, principally upon the basis of information compiled
and
furnished by the Bureau of the Mint and the Division of General Accounts.
These tables, furthermore, in conformity with what is henceforth
to be
the regular practice of the "Federal Reserve Bulletin," reflect
some changes
in the elements that enter into the total figures for monetary gold
stock
and for money in circulation. These changes are:
(1) Inclusion in the
monetary gold stock of the United States of such gold as may
at any time
be held abroad by the Federal Reserve banks; (2) exclusion
from the gold
stock (and also from gold reported as in circulation) of United
states gold
coin earmarked by the Federal Reserve banks for foreign
account; and
(3) inclusion, for the first time, in the total figure for money
in circulation,
of figures for minor coin, i.e., nickels and cents.
Gold held abroad by the Federal Reserve banks—which
means gold
belonging to them but in the custody of foreign correspondents
, under
earmark and thus at the free disposal of the Federal Reserve
banks—is
included in the total monetary gold stock of the United
States, because
it is a part of the gold that is available for the monetary use
of the United
Federal Reserve Board Announces Revision of Figures States, whether it be counted in practice as part of the reserves of the
Federal Reserve banks (as has at times been the case) or not so
counted,
as has
of Gold Stock and Money in Circulation for 1922- been the case since
Feb. 4 1921. During the larger part of the past six
1927—Minor Coins Now Included in Amount of years no gold has been held abroad, but for a time during 1927 the
amount
so held approximated $60,000,000, and for several
Money in Circulation.
months in 1919 and
1920 it exceeded $100,000,000. Some gold was also held
abroad
in other
The Federal Reserve Board in its "Bulletin" for Decem- years.
The Federal Reserve banks frequently hold in trust, i.e.,
ber presents revised figures, for the period from 1922 to
earmarked for
account,* substantial amounts
'
. of gold, which may be in the form
1927, of the monetary gold stock of the United States foreign
of gold bars (bullion), foreign gold
or United States gold coin. Such
and the amount of money in circulation. In the case of coin, belonging as it does to thosecoin,
foreign correspondents for whom it is
being
held,
accordingly represents a part of the monetary gold stock of
the latter the revised totals now include figures for minor
countries and not a part of the monetary gold stock of the United
coins (nickels and cents) never before included in the total foreign
States. The practice which has hitherto been followed in arriving
amount of money in circulation as reported by the Treasury total monetary gold stock of the United States, as published in the at the
circucirculation statement. The minor coins in circulation at lation statement, has automatically taken account of earmarked bullion
(and foreign coin) but not of earmarked domestic coin; this practice
has
the present time says the Board, approximate $110,000,000. now been modified in such
a way as to allow for a decrease in the gold stock
With reference to the gold stock the Board announces that of this country whenever gold coin is placed
under earmark and for an
detailed figures will hereafter become available before the addition to the gold stock of the country whenever gold coin is released
from
There has been a certain amount of gold coin under earend of the month, and so-called preliminary figures will be mark earmark.
almost continuously since 1916. which at times has amounted to as
published early in the month. The Board's announcement much as $50,000,000, and changes in the amount from one month to the
next have sometimes been as much as 620,000,000. Thus the change in
follows:
Of the factors that influence money-market conditions, changes in the practice with reference to the handling of this item is of considerable quantimonetary gold stock of the United States and in money in circulation are tative importance.
The amount of minor coin in circulation has heretofore never been inamong the most important. The importance of these items is due to the
fact that a change in either of them, by affecting favorably or adversely cluded in the total amount of money in circulation as reported by the
Treasury
circulation statement and published in the "Federal Reserve
the reserve position of member and non-memeer banks, exerts an influence
upon the demand for Reserve bank credit and usually results in a change Bulletin." Its amount at the present time approximates $110,000,000;
at
the
beginning
of 1922 it was about $90,000,000.t These figures indicate
In the volume of indebtedness of member banks at the Reserve
banks. the extent to which the amount of
money in circulation has been raised
An increase in the country's stock of monetary gold, such as arises
from by the inclusion of minor coin.
importation or from domestic production of gold, has the effect of bringing
The
preparation
of revised figures for earlier dates on a monthly basis is
about a corresponding growth in the reserves of member banks,
except to under way and the complete results
will be published as soon as the, become
the extent that it may be offset by the coincident influence of some
other
factor, such as an increase in the volume of money in circulation or a sale available.t
of securities by the Federal Reserve banks. The opposite effect
follows
•Some of the gold held under earmark Is the property of member banks, but
from a decrease in the gold stock or an increase in the volume of
money in inasmuch as the earmarking of this gold is commonly at the instance of foreign
circulation. Thus figures for monetary gold stock and for money
correspondents
of these banks, the amount is here considered as part of the gobn
in
Circulation are of such fundamental current significance to the
Federal earmarked for foreign account..
Reserve System and to member banks that their accuracy and promptness
t These figures include but two of the types of minor coin as reported outstandln6
in their publication are of the greatest importance.
by the Director of the M lot, the bronze 1-cent pieces and the nickel 5-cent
pieces
As the result of arrangements that have been made in recent months The other types have been disregarded—copper cents and
half cents, copper nickel
(1) detailed figures of gold stock and money in circulation for the first of cents, bronze 2-cent pieces, and nickel 3-cents pieces. The
total athount of these
each month that are accurate as the basic records permit will hereafter obsolete types still reported as outstanding is approximately $3,600,000,
and of
become available before the end of the month, and (2) so-called preliminary this about two-thirds is composed of copper cents and copper nickel cents
disconfigures, somewhat less accurate and detailed than these but still more tinued in 1857 and 1864, respectively.
accurate than those which have been currently available in the past, will
Tables 76 and 77 appearing in the Annual Report of the Secretary of the
Treasury
be published early in the month. Since the new figures, while comparable for 1927. and giving the amount of money in circulation and the
monetary gold
from month to month with one another, will not be strictly comparable stock of the United States on the let of July of every year for the years
1916-1927
with those which in the past have been carried in the monthly circulation are on the same basis, and are affected by the sane revision, as the tables presented
statement of United States money Issued by the Treasury and published in herewith—excepting only that the amount of minor coin is not included in the
part in the "Federal Reserve Bulletin", it has been necessary to work amount of money reported as being In circulation.
up revised figures for previous months, extending over a considerable period UNITED STATES MONEY IN CIRCULATION,
JANUARY 1922-NOVEMBER
of years. These revised figures have now become available back to the
1927 (REVISED FIGURES).
beginning of 1922 and they are given in the accompanying tables. They
[First of fonilt Figures.]
are intended to be strictly comparable with the final figures for each month
that are henceforth to be published currently.
Money in
•foney in
foney in
Both the current availability of the new figures and the preparation of
fonth.
Circulation.
fonth.
Circulation.
fonth.
Orculatiots.
these revised figures have been made possible through the co-operation of
1922.
1924.
1926,
the Federal Reserve Board and banks ,the United States Treasury, particu- January____
4,689,785.000 January____ 5,043,819,000
larly the Bureau of the Mint and the Division of General Accounts, and the February___ 4,441.453.000 February___ 4,777,368,000 January__ 5,104,116,000
February_ .841.088.000
4,490,831,000 March
Department of Commerce. Thus arrangements have recently beeu made March
.887,272,000 March
,903,627,000
4,496,845,000 April
4,899,375.000 April
by the Bureau of the Mint to receive telegraphic reports from certain cus- April
4,859,825,000
May
4,468,354,000 May
4,853,195,000 May
toms houses with reference to movements of gold into and out of the country, June
4,907,096,000
4,454.765,000 June
4,904,842.000 June
4,923,181,000
instead of mailed reports as formerly, with the effect of putting the Treas- July
4,463.174,000 July
4,849,309.000 July
4,885,268,000
ury in a position to arrive early in the month at preliminary figures for the August ...... 4,423,728.000 August.__ 4,755,558,000 August
4,909,186,000
.4,479,762,000 September _ 4,858,907,000
first of the month that are fairly accurate. The reason why they are not September
_ 4,930,233,000
October.._ 4,607.717,000 October_ _ 4,863,185,000 September
October_ _ 4,978,221,000
so accurate as those which can be arrived at somewhat later is that reports November 4,645,957,000 November 4,941,514,000
November
from most of the customs houses and from the outlying mints and assay December 4,703,630,000 December 5,051,945,000 December 5,021,411,000
5,036,980,000
offices are stW being submitted by mail and are consequently several day
1923.
1925.
1927.
late. Thus the so-called preliminary figures must be based at present upon January_
4,817,039,000 January--._ 5,047.463,000 January5,095,154,000
figures for Treasury holdings of cash that are from one to five days out of February._ 4,614,248,000 February... 4,802,358,000
February_ 4,845,765,000
4,703,366.000 March
date, and upon figures for gold coin that are not completely adjusted for all March
4,853,229.000 March
4.884.768,000
4.746,834,000
April
April
4,818,339.000
April
exports and imports of United States gold coin. Steps are in contemplation
4,861,706,000
May
4,759,236.000 May
4.789,486,000 May
4,890,606,000
which are expected to remove these difficulties in course of time, but June
4,797,068,000 June
4,841,282,000 June
4,892,667,000
In the meantime the current release of the final figures will be somewhat July
4.823,278,000 July
4,815,209,000 July
4,851,325,000
August
4,786.907.000 August
delayed.
4.795,304,000 August 4,845,781,000
September.4,876,474,000 September .. 4,867,068.000 September
_
Up-to-date figures with reference to gold coin have been among the most October_..._
4,853,773,000
4,945,182,000 October_ _ 4,916,116,000 October
4.948,462,000
Glffknit to obtain, and whatever inaccuracy has occurred in this item has November 4,924,900,000 November 4,968,536,000
been reflected both in the figure for the total monetary gold stock of the December 5,017,653,000 December 5,044,345,000 November 4.945,905.000
1922MONETARY GOLD STOCK OF THE UNITED STATES, JANUARY
NOVEMBER 1927 (REVISED FIGURES).
Month.
[First of Month Figures.]
1922.
January
February
March
April
May
June
July
August
September
October
November
December
1923.
January
February •
March
April
May
June
July
August
September
October
November
December
In Treasury
and Federal
Reserve Banks.
In Circulation.
Total.
43,221,215,000
3.253,812,000
3,295,446,000
3.334,475,000
3,341,896,000
3,352,784,000
3.368.714,000
3,415,661,000
3,443.045.000
3,462,566.000
3.478,329,000
3,494.180,000
4439,086,000
431,178,000
427,932,000
425,610,000
422,367,000
418,650,000
415.937,000
412.957,000
411,668.000
410.235,000
409,543.000
411,835,000
$3,660,301,000
3,684,990,000
3,723,379,000
3,760,085,000
3,764,263.000
3.771.434,000
3,784,651,000
3,828,618,000
3,854,714,000
3,872,801,000
3,887.873,000
3,906.015,000
3.505,551.000
3,537,369.000
3,550,644,000
3,560,104,000
3,573,568,000
3,621,685,000
3,645.373,000
3,677.153,000
3,712,542,000
3,738,508,000
3.772,429,000
3,811,782,000
423,265,000
415.163,000
412,753,000
410,166,000
408,082,000
406.150,000
404.181,000
401,651,000
398,901,000
397.957,000
394,637,000
395,281,000
3,928,816,000
3,952.533,000
3,963.397,000
3,970,269,000
3,981,650,000
4,027,835,000
4.049.554.000
4,078,804.000
4,111,443,000
4,136,465,000
4,167,065,000
4.207.063,000
3,833,735,000
3,888,236,000
3,923,996,000
3,965,225,000
4,014,585.000
4,060,354,000
4,095,060,000
4,119,583,000
4,130,209,000
4,121,278,000
4,118,795,000
4,133,089,000
410,135,000
401,106,000
399,139,000
398,407.000
396,373,000
394,809,900
393,330,000
391,769.000
390.754,000
389,986,000
390.501,000
393.570,000
4.243,869,000
4,289,432,000
4,323,136,000
4,363,632,000
4,410,959,000
4,455,162,000
4,488,390,000
4,511,352,000
4,520,963,000
4.511,263.000
4,509,297,000
4,526,659,000
4,090,067,000
4,020,282,000
3.961,513,000
3,936,438,000
3,941,310,000
3.958,854.000
3,962,335,000
3,969,668,000
3.984,279,000
3,985,294,000
4,012.786,000
4.001,072,000
409,414.000
402,606,000
407,876,000
409,705,000
408,451,000
402,380,000
402,297.000
400.452.000
398,472,000
396.245,000
394,690,000
396,367,000
4,499,481,000
4,422,889,000
4,369,389,000
4,346,144.000
4,349,762,000
4.361.234,000
4.364,632,000
4,370,119.000
4,382,751,000
4,381,538.000
4,407,476,000
4,397.440,000
3,985,309,000
4.008,937,000
4.023,302,000
4,044,621.000
4,043,126,000
4,040,067,000
4.055,694,000
4,080,200,000
4,083,946,000
4,077.710.000
4,084,243,000
4,087,797,000
414,026,000
402,687,000
399,862.000
396,929.000
395,032,000
393,323,000
391,703,000
390,915,000
389,177,000
388,049,000
389.205.000
388,831,000
4,399,425,000
4,411,624,000
4,423,164,000
4,441,550.000
4,438,158,000
4,433,389,000
4.447,397,000
4,471,115,000
4,473.123,000
4,465,760,000
4,473.447,000
4.476,628,000
4,083.380.000
4.167,892.000
4,192,324,000
4,206,798,000
4,220,926,000
4,221,681.000
4,202,342.000
4,197,159.000
4,200,808,000
4,190.364,000
4,159,637,000
408.681,000
396,436,000
393,317,000
389,926,000
388.742,000
386,560,000
384,957,000
382,674.000
381,551,000
380,476,000
381,045,000
4,492,060.000
4,564.328.000
4,585,641.000
4,596,724.000
4,609,668,000
4,608,241,000
4,587.298,000
4,579,833,000
4,588,360,000
4,570,840,000
4.540,681.000
1924.
January
February
March
April
May
June
July
August
September
October
November
December
1925.
January
February
March
April
May
June
July
August
September
October
November
December
1926.
January
February
March
April
May
Jtsse
July
August
September
October
November
December
1927.
January
February
March
April
May
June
July
August
September
October
November
Gold Holdings of Principal Countries at End of 1926Comparison with 1913.
A recent issue of the "Bulletin" published by the Federal
Reserve Board, had the following to say under the above
head:
they were held by the Federal Reserve banks and Federal Reserve agents.
This practice was based on the legal distinction between other forms of
currency and gold certificates, which are in substance warehouse receipts for
the gold held against them by the Treasury. In compiling this table, howevery, which is primarily for the purpose of making comparisons with
foreign countries that have a wide variety of laws relative to the cover
required for currency, it has been decided to include in the central gold
holdings for the United States, as well as for all other countries, all metallic
gold and to exclude all classes of paper money, regardless of their legal
status. At the end of 1926 United States gold certificates were outstanding
in the amount of $1,680,416,000, and the Treasury was holding this amount
of gold against them; $588,355,000 of the gold certificates were held by
the Federal Reserve banks and the Federal Reserve agents and $1,092,061,000 were reported by the Treasury as being in circulation.
Changes in Gold Holdings, 1924-1926.
The re-establishment of European currencies upon a gold basis, which
began in 1923 and 1924 and made marked headway thereafter, has been
accomplished by some changes in the gold holdings of different countries,
but these changes have not been large except in a few instances. The following table shows the holdings of selected countries in 1926 and 1924 and
the changes during the two-year period.
CHANGES IN GOLD HOLDINGS OF SELECTED COUNTRIES.
Holdings at end ofCountry.
1926.
1924.
Increase (-I-) or
Decrease (-).
1926 over 1924.
84,080.000,000 $4,089,000,000 -$9,000,000
757,000,000 -22,000.000
735,000,000
+1,000,000
710,000,000
711,000,000
181,000.000 +255,000.000
436,000,000
+3,000,000
218,000,000
221,000,000
+5.000,000
2,000,000
7,000.000
53,000,000 +33.000.000
86,000.000
7,000.000 +23.000.000
30,000,000
203.000,000 -37,000.000
166,000,000
+7,000.000
20,000.000
27,000,000
73,000,000 +12,000.000
85.000,000
+4.000.000
489,000,000
493,000,000
-4,000,000
64,000,000
60,000,000
-7,000.000
98.000,000
91,000,000
586,000,000 -24,000,000
562,000.000
131,000,000 +13,000.000
144,000,000
+2.000,000
54,000,000
56,000,000
+7,000,000
151,000,000
158,000,000
34,000,000 -24,000,000
10,000,000
54,000,000 +25.000,000
79,000,000
52,000,000 -15,000,000
37,000,000
The increase of $255,000,000 for Germany since the end of 1924 represents the continuation of a growth in gold holdings which began in May
1924 and has amounted since that time to about $325,000,000. Other European countries which increased their gold holdings by realtively large
amounts from 1924 to 1926 are Belgium and Hungary. All of the increase
in the gold holdings of the National Bank of Belgium, $33,000,000, occurred during 1926, and this was the largest annual increase for that country since the outbreak of the war. The gold holdings of the Bank of England show a decrease of about $22,000,000 for the two-year period, the net
result of a loss of $54,000,000 in 1925 and a gain of $32,000,000 in 1926.
In the case of a number of countries, notably Austria and Hungary, the
increase in gold holdings during 1926 represented the conversion into gold
of a part of the central banks' reserves that had previously been held in
foreign exchange under legislation permitting foreign exchange to be used
as reserve.
For the last few years there has been a general tendency throughout
Europe for countries in which gold stocks were relatively low to build up
their gold holdings, while countries which had absorbed large quantities
of gold during the war have been shipping part of their gold to other countries. The only European country, however, to part with any considerable
amount of gold has been the Netherlands, where the loss since the end of
1924 has amounted to about $37,000,000 and since the end of 1917 to about
$114,000,000.
The gold holdings of individual foreign countries other than those of
Europe show but few appreciable changes during the past two years.
Those of Japan, which have declined steadily since 1921, decreased by about
$10,000,000 in 1925 and about $14,000,000 in 1926, while those of the
principal South American countries showed little net change over the past
two years, excepting for Chile, for which the loss of gold during 1926 represented a conversion of gold into balances with foreign banks.
United States
England
France
Germany
Italy
Austria
Belgium
Hungary
Netherlands
Poland
Russia
Spain
Sweden
Switzerland
Japan
Australia
Brazil
Canada
Chile
Java
South Africa
GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS. 1913-1926.
(In thousands of dollars, converted at par of exchange.)
End of YearA table is presented herewith showing for the end of 1926, with comparative figures back to 1913, gold holdings of all the countries for which
satisfactory figures are available. The figures represent gold holdings of
public treasuries and of central banks and do not include gold technically
known as "in circulation," that is, gold held by commercial banks, business 1913
1914
concerns, and private individuals. The exclusion of gold in circulation is 1915
unavoidable for the reason that satisfactory figures for such gold are not 1916
available for any country. No country, however, at the present time has 1917
1918
any considerable amount of gold outside the central institutions, excepting 1919
India, the United States, Canada and Australia. Gold held in India outside 1920
the rupee reserve is known to be in large volume, but no reliable estimate of 1921
1922
its amount exists, and much of it is put to other than monetary uses. In 1923
the United States in June 1926, in addition to gold in the hands of the 1924
general public, there was about $40,000,000 of gold coin, not including 1925
gold certificates, held by banks other than Federal Reserve banks, an 1926
amount which compares with $225,000,000 in 1913. The Canadian chartered banks report gold holdings of about $70,000,000 at the end of 1926;
this does not include $27,000,000 deposited in the Central Reserve and inEnd of Yearcluded in the table as gold held by the Minister of Finance. The commercial banks of Australia in June 1926 held gold (including a small amount
of silver) aggregating about $160,000,000.
Gold holdings of the 40 countries included in the table amounted at the
end of 1926 to nearly $9,180,000,000. Of this amount about 44% was held 1913
1914
in the United States, 37% in 25 European countries, and 19% in 14 other 1915
countries.
1916
Gold holdings for the United States, as shown in the table, include all 1917
1918
United
States
Treasury
and
the
by
by
the
held
the gold coin and bullion
1919
Federal Reserve banks, including the gold held by the Treasury in trust as 1920
cover for gold certificates outstanding, but not including gold held by the 1921
Federal Reserve banks ear-marked for account of foreign institutions. The 1922
1923
inclusion in the central gold holdings of the United States of the gold held 1924
as cover for gold certificates is a departure from earlier practice, which 1925
was not to include the gold held against the certificates themselves when 1926
3569
THE CHRONICLE
DEC. 31 1927.]
European Countries (Central Banks).
United
States.a
Total
Total.
4,771,878
5,251,167
6,212,343
6,478,426
6,625,882
6,270.779
6,080.961
6.616,922
7,272,252
8,289,759
8.568,242
8,917.144
8,913,018
9.181,785
1,290,420 2,831.286
1,184,369 3,483.769
1.699.883 3,803,838
2,185,139 3,503,234
2,067,878 3,572,259
2,169.778 3,081,519
1,941,321 2.890,954
1,933,809 3,034,214
2,562,447 3,032,980
3,504,283 3.043,514
3,831,881 2,993,955
4,089,201 3.084,050
3,984,659 3,136,630
GerEngland.lz France. many.
Italy.
170,245 678.856 278.687 288,103
428,221 802,591 498,508 299,759
389,205 967,950 581.954 293,453
402,970 652,885 599,873 255.772
422,594 639,682 572.768 238,931
523,632 664,017 538,861 243.566
583,211 694,847 259,519 203,441
762,912 689.517 260.028 204.362
762,719 690,141 237,102 210.739
751,597 708.403 227,436 217,284
754,400 709,479 111,247 215.699
757,033 710,394 180,939 218,382
703.482 710.968 287.763 218,825
735.421 711.106 436.235 220.732
European Countries (Central Banks)-Continued.
Austria.
AustriaHunparr,.
$
251,421
213,757
138.750
58,759
53,717
53,074
45,011
dll
d16
d9
---1,313
__-1,560
2,087
____
7,388
sta- Czech- DenBelgum. porta. oslova- mark.
kta.c
$
59,131
56,619
50,759
50,759
50,759
57,145
51,417
51,438
51,451
51.901
52,204
52,543
52.855
86,214
Estonia,
Finland.
$
$
$
$
$
__-_ 6,948
__-- 19,666
10,615
____ 8,229
---- 24,506
10.615
____ 8,229
11,773 --- 29,833
____ 8,229
--- 42,847
13,124
____ 8.229
____ 46,611
12.159
____ 8,229
12,352 „-- 52,159
922
_-_-_-. ii:
7.14160,807
_
7,141 4;6'55 60,992
__-- 8.229
7,334 12,545 61,192
---- 8.371
7,415 20,874 61,173
7.56,5 22,574 56,1718,242
8.354
7,792 31.745 56,145 1-iit
7,981 30,575 56.085 1.279 8,357
8.464 30.731 56.007 1.312 8,250
THE CHRONICLE
Except Russia and Italy, each of the gold-holding countries has very
greatly increased its official supplies of gold since 1914. The United
States shows, of course, the largest gain in volume, although in per cent
the Bank of England has the highest record, increasing its gold supply
from $170,000,000 before the war to $740,000,000 to-day. Spain and
Japan have both multiplied their stock of gold about five times:
European Countries (Central Banks)-Continued.
End of Year
Greece.
$
5.211
7,257
11,194
11,580
12,159
10,422
11,001
11.001
10,808
6,058
7,250
7.680
8,941
8,936
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
Hungary.
$
7.460
10,365
29,526
Latvia.
Lithuant&
Netherlands.
Norway.
$
$
$
60,898
83,663
172,530
236,217
280,689
277,155
256,204
255.729
243,000
233,880
233.876
202,854
178,080
166,231
$
$
12,846
11,181
11,028
33,027
31,214
32,691
1,667
39,590
2,858
39,472
5,955
39,475
9,769
39,474
39,472 13,078
39,457 19,949
39,456 '25,793
39,457 26,677
2,123
2.548
3,223
4,555
4.555
4,555
1,520
1,640
3,080
3,230
3.136
Poland.
GOLD HELD BY CENTRAL BANKS AND GOVERNMENTS.
1914.
1927.
Japan
8110,300,000
5529.700,000
France
720,000,000
*800,000,000
Belgium
62,200,000
89,500.000
Netherlands
65,500.000
162,300,000
Switzerland
33,000,000
87,800.000
Norway
11,800,000
39,400,000
Sweden
28,100,000
59,400,000
Finland
6,700,000
8,100,000
Spain
100,700,000
501,200,000
Italy
235,800,000
224,800,000
Egypt
7,600,000
17,600,000
England
170,300,000
740,200.000
Germany
409,300,000
429,300,000
Portugal
8,100,000
9,200,000
Russia
514,600,000
85.900,000
United States
1,812,800,000
4,565,000,000
* Including $89,314,803 representing gold and foreign exchange available abroad.
European Countries (Central Banks)-Concluded.
End of Year
Partugal.
s
1913
1914
1915
1916
1917
19ig
1
1920
1921
1922
1923
1924
1925
1926
Rumania. Russia.
$
8,760
9,261
9,261
9,261
9,261
9,263
9,266
9,266
9,267
9,267
9,267
9,267
9,267
9.267
29,242
29,714
36,284
22
2
200
329
329
7,585
24,563
26,020
26,735
27.787
Spain. Sweden.
$
$
$
786,800
803,400
831,200
758,396
667,041
92.490
110,444
166,414
241.424
379,597
430,072
472,041
474.228
484,984
487.278
487,841
489,292
489,631
493,489
2,607
45,043
73,050
93,876
84,605
Switzer- Yugoland. slavia.e,
a
27,372
29,088
33,385
49,183
65,513
76.532
75,350
75,516
73,631
73,428
72,853
63,508
61,647
60,162
$
32,801
45,922
48.275
66,585
69,025
80,041
99,779
104.780
106,058
103,283
103,669
97,642
90,140
91,050
11,194
11,034
12,381
12,321
12,310
12,306
12,233
12,352
14.282
12,354
13,286
13,965
14.657
16,620
Other Countries.
End of
Year-
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
Total.
$
650.172
583,039
708,522
790,053
985,745
1,019,482
1.248,686
1.648,899
1,676.825
1,741,962
1,742,406
1,743,893
1,791,729
1,738,896
Aroentine
ColumUruCanada; Govern- Bank Central Ma;
Reserve Quay;
of
Minister ment
Bank of Bank of Bank of Bank of
of 11conver- Brazil.g Chile.h the Re- Peru. the Renance.f
sion
,
public.
public.
Fund.
$
115,894
98,817
126,329
131,092
139.452
129,436
129,322
112,648
94,635
146,434
126.882
151,208
156.580
158.105
$
224,989
213,906
228,939
251,158
252,390
260.628
299,119
450.057
450,057
450,057
454.035
435.880
435,880
435.880
$
53,202
26,601
14,598
14,598
14,598
15,571
15,571
10,464
25,303
27.401
48.665
53,799
54,300
56,325
$
$
$
1,330
1,330
1,330
9,039
23,413
24,384
32,893
34,025
34.025
19,646
34.025 1.849 20,736
34,025 6,910 19,753
34.025 14.599 19.164
10.391 16.495 20,084
$
10,826
13.48
22,533
33.25o
42,001
46,713
56,758
57,30,
8
59,49;
56.801
56,81 1
56.802
56,819
56,811
9
GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS,
1913-1926-Continued.
[In thousands of dollars, converted at par of exchange.]
Other Countries.-Concluded.
End of Year-
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
Domestic
Holdings
AusNew
India
of the
NaSouth
grata;
ealand; Govern- Bank of Bank of :tonal
Africa;
Note
Reserve
men:
Japan
Java. Bank of Reserve
Reserves. Banks. Rupee
and of
Egypt.
Bank.
Reserve. the Government
$
21,899
38.932
73,484
78.351
85,650
104,143
116.796
115,336
113,389
116,499
121.088
130,904
164,828
143,986
$
25.306
27,730
33.092
36,012
39.419
39,419
38.932
37,472
37,472
38,367
38.294
37,581
37,667
37,920
$
72,780
30.202
41,361
38,636
86,712
63,842
96.203
116,249
118,341
118.341
108,609
108.609
108,609
108,609
3
64,963
64.062
68.187
113,411
229,9S1
225,821
340.947
551.840
610,663
605.678
600,194
585,738
575.768
561,810
$
10.027
12.418
18.804
28,984
37,051
51,600
69,817
88,214
58,728
61,306
62,869
53,726
73,394
79,369
$
10,381
21,750
35,096
29,164
19,278
16.312
16,312
18,807
16.807
16,619
16,510
16,510
16,510
16.510
$
39,905
43,799
44,772
34,066
30,172
33.579
35,525
50.612
57.911
50,782
51.638
52,441
43.591
36,703
[VoL. 125.
The table not only indicates an increase in the actual gold supply of the
world, which has proceeded at a less than normal rate, but shows more
particularly that gold is dropping out of circulation and is Instead being
held in reserve in the central banks. Gold coins play a very small part
in currency circulation to-day and the monetary function of gold is limited
chiefly to the duty of acting as a standard of value. The Midland Bank,
Ltd.,reports that in England the gold in circulation before the war amounted
to about 8360,000,000 and is now practically negligible. This represents a
distinct economy in the use of gold, and the greater convenience of paper
currency has made the latter preferable.
The inflow of gold into this country is a phenomenon which has become
familiar to the American public. With the exception of the period between
Dec. 1924 and June 1925. when there was a net export of gold from this
country of $180,000,000, the United States has steadily increased its gold
supply. For the first seven months of this year the import of gold amounted
to about $140,000,000, and the average importation since 1919 for an entire
year is about $160,000,000. Since Jan. 11020, until Aug. 1 this year. our
net gold imports have amounted to $1,657,000,000.
Part of this to-day represents dollar balances held for foreign central
banks. Under the laws and practices of many foreign countries these
diollar balances may be counted as reserves against the note and deposit
liabilities of the central banks of these countries. As such this gold is
not only used as a basis for additional credit extension by American banks,
but it also continues to be a part of the reserves underlying the credit and
currency structures of foreign countries. France, for example, has a gold
credit In this country of $150,000,000 or more.
Leaving aside the influence of this gold upon banking conditions abroad,
however, its effect, or rather its lack of effect, here Is particularly interesting. Normally it would have seemed that such an enormous inflow of
gold would have inevitably resulted in a price inflation in this country.
This has not been the case. Prices have been declining. By absorbing this
gold so that it could not be used as a basis for credit inflation and speculation,
the Federal Reserve System effectually sterilized its effect.
The Federal Reserve Banks have two methods of credit control: one is
the rediscount rate, the other Is the purchase or sale of securities in the
open market. By raising its rediscount rate and by selling securities in the
open market the Reserve banks are able to restrict the credit extended by
the member banks.
Without doubt, this was the wisest thing to do at the same time and
helped to counteract the European inflation while stabilizing conditions
ere. The ultimate result to-day, however, is a decline in commodity
prices throughout the world. An enormous quantity of gold-over half
he world's supply-has been buried, to all intents and purposes, In the
United States. This gold is not as irrevocable as the gold which India
1 nnually stores away: but its normal effect on commodity prices has been
1 lmost as effectively nullified.
1
. A. Austin of Seaboard National Bank on "America's
Future Role in European Finance."
Lack of space prevented our giving more than a brief
eference in our Dec. 3 issue (Page 3009) to the ad,Tress delivered on Dec. 1 by Chellis A. Austin at the
. nnual banquet of the American Acceptance Council at
he Waldorf-Astoria. We are giving to-day the full text
f Mr. Austin's speech, except that portion which has. apa Treasury and Federal Reserve banks. b Gold held by Bank of England In
As will be noted in
both issue and banking departments; the latter (86.142.584 In 1926) includes some peared in our issue of Dec. 3.
silver. Figures include currency note reserve, which prior to 1925 was held by exwhat is published herewith, Mr. Austin indicated in his
chequer. c Prior to 1926, I3anking Office of Minister of Finance. d Austrian
account only. e Prior to 1920, National Bank of Serbia. f Includes Government speech that the Federal Reserve Board had decided upon a
reserve against Dominion rates, savings banks account, and such gold as is
held In deposit by chartered banks in the Central Reserve. g Prior to 1923, guar- more liberal interpretation of its rules governing the use
antee of currency fund. Is Prior to 1026. Government conversion fund.
of acceptances growing out of the importation or exportation of goods, and as was made known on Page 3010 of
Monetary Stock of Gold in United States Larger than our Dec. 3 number, the text of the new ruling; was anCombined Holdings of Other Principal Gold Hold- nounced at the Council's banquet by Roy A. Young, Govering Countries.
nor of the Federal Reserve Board. Mr. Austin's remarks,
"Total monetary stock of gold in the United States is now except for the extract heretofore given, follow:
larger than the stock of all the principal gold-holding countries in the world," states the "Review" published Sept. 17
by Dominick & Dominick. "The total gold owned by
central banks and Governments has increased from $4,297,000,000 in 1914 to $8,261,000,000 this year. The United
States, which held $1,813,000,000 of this total in 1914,
now owns $4,565,000,000." The "Review" contends that
"so long as the United States continues to import gold and
sterilize it in its reserves, prices, will continue to fall. The
gold in Europe," it observes, "is becoming more and more
inadequate for the monetary requirements of countries on
a gold standard. It would appear that the world price level
Is approaching a point where the American stock of gold
must gradually be permitted to exercise its natural effect
upon trade and trade values." The account also states:
At the conclusion of my remarks last year from this same place I
ventured to strike an optimtistic note in regard to the increased oppor-
tunities which we then felt would be ours during 1927. I am particularly happy to be able to report that these expectations have been
fully realized. The acceptance business in the United States has shown
remarkable improvement during the last year. This improvement is
shown by the greater average volume of bills which have been outstanding during the year.
Value of Dollar Acceptances
A year ago it was shown that the total amount of outstanding acceptances as of Oct. 31, 1926 was approximately $681,000,000. On Oct. 81,
1927, the total for the country was $975,000,000, an increase of 43%.
Although we must make allowance for the higher prices of certain
commodities (cotton, etc), this large increase in one year constitutes a
noteworthy record in the history of the dollar acceptance. As the
seasonal &viands for credit to move cotton, tobacco, wool and manufactured goods are heaviest during the winter months, it may be safely
assumed that the acceptances outstanding may soon reach a total of
more than $1,000,000,000. Once before (in 1920) a billion dollar level
DEC. 31 1927.]
THE CHRONICLE
3571
the total acceptances outstanding
In Holland, it is estimated that
of all the Dutch banks, including
the price range at that time
account
that
fact
for
r
the
Novembe
of
view
of
in
middle
between
you at the
was reached but
ons of foreign banks, aggregated
than the index figure of to-day,
affiliati
higher
and
54%
firms
mately
private
approxi
6153,was
country and yourselves on present 360,000,000 guilders and 380,000,000 guilders, or $145,000,000 to
80,
are justified in congratulating the
Sept.
outstanding as of
In Switzerland the total amount
.
000,000
achievements and prospects.
now
0,000.
$109,00
exceeds
equal to
francs,
$975,000,000
Swiss
of
,000
total
565,000
nce
accepta
at
ed
the
1927, was estimat
It is believed that
ial paper outstanding in the United Acceptances in Switzerland during the year have increased about 46%.
the total amount of prime commerc
0,000
available for Holland, It is evident that
es at present between $800,00
fluctuat
ed
estimat
is
it
which
While comparable figures are not
States,
ial growth in the volume of acceptances
there has been also a very substant
and $900,000,000.
Distribution by Districts
outstanding in the Dutch market.
Great Britain, I wish to emphasize
previous years, the Federal Reserve
Before quoting the figures for
The latest survey shows that as in
of the private acceptance houses nor
the
all
those
than
include
bills
not
of
do
volume
they
larger
again that
District of New York has created a
of $975,- those of overseas and colonial banks and branches of foreign banks
total
a
of
out
0,000
$710,00
the following statistics, though
other districts combined, namely,
acceptance business to New York established in London, but I believe that
indication of the trend
000,000. The convergence of the
the bills created out- by no means complete, will still give a general
of
on
proporti
great
A
ment.
appreciable part of the total
is a natural develop
n ot those made on the Pacific of events especially as they cover an
exceptio
the
(with
York
of acceptances outNew
side of
acceptance business. The total amount
or indirectly to the New York
Coast) seem to find their way directly the final distribution is made. English
London clearing and non-clearing banks
sixteen
of
account
for
g*
that
standin
market, and it is from this point
which will be published as usual
. folFrom the fuller report and the tables
their annual balance-sheets and Inserted
*According to figures taken from
will note that at present the accependorsements, etc.";
the heading, "Acceptances,
under
in the next issue of our Bulletin, you
practice,
by
English
%
2
/
of
931
sweptof
lowing
mainly
consist
to the extent
cases the figures
tance business of the country is handled
however. It may be estimated that in most
commercial and financial centers, ance liabilities.
112 different banks in 7 important
o,
Francisc
San
Boston,
York,
New
Val
which, in the order of volume, are
about£111,000.000
Cleveland.
Chicago, New Orleans, Philadelphia and
109.000,000
year at $800,000,- Middle of Nov. 1927
this
ding
outstan
nce
accepta
average
3111926
If we figure the
Dec.
125.000,000
strictly
of
g
financin
with the
do
to
has
which
3111925
part
Dec.
that
e
eliminat
000 and
it would appear that, allowing
Dec. 31, 1926, the acceptances in
domestic business, say, $150,000,000,
As compared with the figures of
England seem to have increased
1%, over $6,000,000 of comion of the Joint Stock Banks in
for a conservative average commission of
circulat
Considering the
for this service.
as a basis the weighted figures).
(taking
5%
about
missions were paid to American banks
by
in
London in 1927 (about
that the acceptance is taking
average private discount rate in
the
that
As evidence of the important part
fact
the
for
that
the fact that the
interesting to note
4% higher than our own average rate,
414%) was 1'
the financing of our overseas trade, it is
be maintained at its previous
about 50% of our total imports
could
year
this
ces
30
acceptan
Sept.
bank
ending
British
months
of
twelve
volume
financed by dollar acceptances.
and about 40% of the total exports were
level is worthy of notice.
executed by private banken,.
As to the total amount of acceptances
Discount Market and Rates
foreign banks, a very
the healthy overseas and colonial banks and the branches of
been
has
year
the
of
events
ng
the middle of November
for
amount
the
One of the most gratifyi
fixes
e
availabl
purial
tentative estimate
partly to the substant
which would give a total for England
expansion of our discount market owing
banks of issue. Large orders at somewhat below £200,000,000,
chases made by foreign banks, particularly
or roughly $1,464,000,000, as against $1,000,0,000,
invest£300,00
such
of
about
total
of
the
s, keeping
have been placed at regular interval
now outstanding in the United States.
estimated to be more than $300,- 000,000 in dollar acceptances
of accepments from foreign funds up to a level
are not limited by law as to the total amount
affords a
banks
that
British
one
and
ment
develop
ging
It is, therefore, interesting
000,000. This is an encoura
to place our dis- tances which they may have in circulation.
labored
have
who
those
of the
to
tion
etc."
of "acceptances, engagements,
high degree of satisfac
basis. It hilevident that the prac- to compare the total amount
ding as of June 30, 1927, namely,
count market on the broadest possible
outstan
banks
a
as
clearing
York
New
London
in
ten
on deposit
capital and reserves, namely £128,tice of foreign banks of keping balances
be stimulated to the extent £86,580,356, with their paid-up
and surreserve against their note circulation will
de- 468,101. This shows an actual ratio of acceptances to capital
these
of
portions
such
for
e
availabl
ten largest New
that investment facilities are
of course, plus of 67.39%. If we take the same figures for the
,
provided
loans;
rm
short-te
that
into
find
posits as can be cons erted
statements of June 30, 1927, we
investments is at least as advan- York City banks as per their
that the note interest yield on such
.
65.30%
is
ratio
the
l centers.
tageeous as that obtained in other financia
foreign outlet the buying
Solidarity in International Banking
As distinct rfom what noe might call our
es,
compani
e
insuranc
banks,
of accepof acceptances for domestic account by
which
the mooted question of a minimum rate
rate
with
interest
on
e
moderat
connecti
In
the
by
lity
corporations, etc., has been affected
re- tance commission for all American accepting banks and the advisabi
average
an
With
year.
the
out
through
legitimate interests
the acceptances have yielded
bills domestic of finding a solution which would safeguard all the
ay
ninety-d
on
3.50%
and
bills
ay
ask
shall
thirty-d
upon which I
turn of 3.30% on
years, by the higher rates at stake, I have been impressed by one fact
investors have been tempted, as in previous
you, no doubt, know that the
of
Most
briefly.
ay
ninety-d
touch
for
to
and
on
of 4.07%
your permissi
themselves for the common
obtainable for stock exchange "call" loans
average). This has also been banks of most foreign countries have allied
commercial paper of 4.10% (10 months'
In France(1), Germany(2), Italy(3), Switzer1927,
s.
31,
interest
their
Oct.
on
of
on
which
protecti
country
the
under various names, unions
true of the accepting banks of
0,000 but had discounted land(4), Austria(5) and Finland(6), there are
careful attention
reported a total acceptance liability of $975,00
the acceptance or associations of banks and bankers which follow with
of
5%
than
less
bills,
banks'
other
of
their international
in
only $48,000,000
banks
the
of
s
interest
banks
the
sly
savings
informed that
and protect assiduou
, Denmark, England,
liability total. On the other hand, I am
purchase of acceptances, and relations. The banks in other countries like Belgium
have been active in recent months in the
time, also take concerted action
to
time
quite
from
ed
purchas
Norway
have
and
funds
Holland
surplus
many of the larger corporations with
especially joint collection
regarding questions of mutual interest, more
balances and
substantial amounts.
of acceptances, tariffs, arrangements for interest to be allowed On foreign
volume
the
in
increase
the
of
result
n—the charges
As a natural
been correspondingly deposits—another most important and contentious questio
the dealers' turnover and their portfolios have
dealers are carrying about for opening of commercial credits, etc.
larger than in 1926. At the present time the
at above the $77,000,000
$80,000,000 of acceptances, which is somewh
et1BanqulerfleParis et:de la Province.
the local resources, the
I. L'Union Syndicate des Samples
und 13ankiers, Berlin.
average for this year to date. In addition to
2. Vereinigung von Berliner Banken
interior banks
the
from
aid
valuable
ancliBankers.
times
siBanks
at
Ilambur
received
of
dealers have
The Association
.
for such loans has
The Bankers Association of Brentthrough call loans secured by acceptances. The rate
.
just
FasCISta
have
I
Bancaria
which
ione
3. Associaz
averaged 3.68%. A study of the various figures
s.
4. ASsociation Suisse des Banouier
purchases made by
quoted leads to the gratifying conclusion that the
5. Austrian Bankers Association.
been
have
must
market
discount
open
the
in
s
various domestic investor
8. BankforenIngen I Finland.
$320,000,000 as against
Committee of the New York
substantially larger this year than last year (about
I know well that the so..alled Junior
1926.
in
working to good purpose and
0,000
$217,00
of
estimate
an
doing a foreign business has been
Banks
few years. I feel that its members
Federal Reserve Activities
with excellent results during the last
all
the initiative they have taken and
give
to
for
system
both
Reserve
heartily
Federal
of
the
ded
policy
are to be commen
In keeping with the
problems. I also am aware of the
have
Banks
the
Reserve
Federal
the
hed
approac
market,
nce
have
accepta
they
the
way
the
possible aid to
of open market purchases fact that some of the questions to which I have referred have been
held a substantial volume of bills, as a result
Americontinue the helpful co- considered intermittently by the American Acceptance Council, the
or under repurchase agreements. They thus
has received at their can Bankers Association, the Clearing House Committee, the Foreign Exoperation which the American discount market
York
New
ces. The aver- change Club, and at one time by the Senior Committee of the
hands ever since the creation of the first dollar acceptan
nine banks, and that these different organizations have obtained satisfactory
first
the
for
Banks
Reserve
Federal
the
by
bills
of
age holdings
The largest amount results in connection with some problems which have come before them.
months of the current year were $244,000,000.
Reserve Banks and purchased But, rightly or wrongly, the efforts, although excellent, seem in a way
Federal
the
by
held
ces
acceptan
bankers'
of
7,000 on Jan. 5; and to have been more or less intermittent, somewhat watered and not
In the open market during this year was $388,83
development which our
27.
always sustained, and in view of the splendid
the lowest amount, $169,385,000 on July
whether for the better- international banking business has shown during the last few years,
I need scarcely say that in every undertaking
further development of dollar the time may came when the need will impress itself upon all of us
ment of the acceptance market or the
most valuable assistance that we should do more in the way of joining hands, combining knowledge,
enjoyed
has
Council
our
ns,
operatio
nce
accepta
and the officers and the exchanging information and arriving at uniform policies. We are, withfrom the members of the Federal Reserve Board
bankers to promote the best
out doubt, as anxious as any other body of
staff of the Federal Reserve Banks.
pleaded for certain methods in our international dealings and perhaps it would be to the
For some time past, foreign users of credit have
of credits more regularly advantage of all to have a central medium through which suggestions can
alleviations permitting them to take advantage
gratification that the be made or debated and a platform on which we can discuss our mutual
special
with
learn
will
You
ely.
extensiv
and
some of the difficulties Interests or set forth for general benefit the recommendations of those
Federal Reserve Board with a view of solving
has under- consideration certain most qualified to guide us in our endeavors. We want to extend more and
which accepting banks have encountered
tation of the regula- more the field of our operations by meeting the legitimate requirements
changes which will result in a more liberal interpre
ed within a short time. of our customers and correspondents and along with this to earn a
tions. It is hoped that these may be announc
c acceptances also are proper compensation. In order to hold our own in the future in our
New interpretations of the regulations on domesti
tive conditions should
worldwide banking relations, especially if competi
before the Board for early action.
rates, foreign exbecome less favorable through changes in interest
Acceptance Business Abroad
much as pos, etc., and in order to be able to maintain intact as
changes
showing
some
figures
I
quoted
year,
our international acIn the course ot my address last
sible the sources of profits which we derive from
l
centers.
other
in
financia
business
nce
accepta
the development of the
to me that we should take a leaf out of the book of our
this year to those three countries which tivities, it seems
a greater effort to present a united front. I
I have restricted the investigations
with the United States, European friends and make
along
ed,
consider
be
may
time
present
step forward if ways and means could be
at the
great
a
be
would
it
believe
of
will,
nce credits. You
as the chief dispensers of foreign accepta
to the organizations already existing, a comaddition
in
create,
to
found
no
as
you,
giving
am
I
which
course, appreciate that the information
n banks and bankers engaged in ints estimates made as closely prehensive central union of America
and power from
complete statistics are available, represen
ternational business which would derive its prestige
deeply
I
am
whom
to
abroad
bankers
nt
promine
as possible by some
having the responsible heads of our leading institutions and banking houses
tion.
co-opera
their
indebted for
3572
THE CHRONICLE
[VOL. 125.
give it their direct, active and unstinted support so as to render
its recPolitical Conditions.
ommendations binding on all.
The third item is always present on a
Gentlemen, some day when the story of American banking during and
continent divided into 27 difafter the World War is written, the historian will be confronted with ferent countries: the risk of economic conditions being affected by internal
the question what are the outstanding developments that may be placed or external developments of a political nature. There is no doubt that
to the credit of this memorable period. I hope you will agree with me grievances and-friction still exist here and there and that time alone can
that among the great, significant events which have characterized these supply a solution for their adjustment. Fortunately, Europe has produeed
last thirteen years are the branching out on a large scale of American during the present generation a number of able statesmen, men who possess
commercial banks into the international field and the worldwide in- strength of character and who show great wisdom in managing their
vestment of American surplus capital in foreign securities. I have countries' affairs. They are content to move slowly, and their disposit
ion
already alluded to sane of the problems which the remarkable growth is not to be lured into the dangerous paths of adventure. In steering the
of our foreign banking activities has raised. With your permission I foreign policy of the great Powers, they have given ample evidence of
should like now to touch upon another subject which, perhaps, you will their desire to smooth the edges and to find a basis for harmonious cothink is only distantly related to the acceptance business but which I operation between their peoples. Mr. Poincare, the great French Premier,
believe to be also vital for all of us as it deals with facts and principles has truthfully said in one of his speeches: "Peace in Europe can only be
which will influence deeply our future policies and action. During the bought at the price of everlasting effort!"
last few months a severe reaction has been witnessed on the Central
Short-Term Loans.
European stock markets. The chancelleries, the press and the private
The question of the short-tersn debts and
offices have echoed sometimes disinterested, sometimes partisan discussions
the possible shortage of exchange,
particul
arly in connection with their reimbur
concerning the financial policies which should be pursued by one or the
sement, if required
by
the
creditor
s,
has
occupied a prominent place in recent public
other nation and few questions have been more frequently heard than this:
discussions,
and
deserves
,
therefor
e,
a
more
detailed reference at this point.
"What will be the attitude of America regarding future loans to
The Department of Commerce (Finance
Europe?"
and Investment Division) has
calculated that the total amount of short-te
No apology is needed before an audience such as this, for giving some
rm loans and credits extended
to Europe at the end of 1926 amounte
consideration to the subject summarized in the question just quoted
d
to
about $1,000,000,000. For
—a their security the American and
other lenders depend chiefly on the solvency
subject which is of the utmost interest to all men of our profession both
of
their
Europea
n
correspo
ndent
banks whose credit is well established
here and abroad. But you will understand that within the limited confines
of an address it is impossible to go into details, and also that my observa- and Which have a long record of faithful performance of their obligations
that generally was not broken even
in those dark days when moratoria
tions should not be applied insdiscriminately to any particular country
were declared in all the warring countrie
s. So long as no serious business
or type of loan.
depression exists the fact that the loans
are
I am told that some one, with a sense of humor, commenting recently
renewed should not be in itself a disturbi larger and more frequently
on the persistent demands for fresh capital coming from the other
ng element except if it were
side, proved, as has been recently contended,
that the country of the borrower
remarked that whether thirsty or not, it is sometimes advisabl
e not to as a whole might become financially
involved through prolonged excessive
drink too much—"especially if the bottle belongs to some one
else."
and unproductive borrowings.
I am afraid that the reply to the question what should be the attitude
As to the sources from which at maturit
y the borrowers can draw to
of America rgarding future loans to Europe, is not as simple as that.
In pay their debts in pound sterling, guilders
order to answer it, it will be nceessary first to sketch, however
or dollars, or whatever the
cursorily, foreign exchange may be, there seems
to exist a great public lack of
the present economic, financial and political situation in Europe,
and, knowledge. The balances and reserves availabl
second, to review our own condition, disposition and prospect
e
s.
avenues open to the debtor desirous of acquitti for this purpose and the
ng himself of his foreign
obligations in foreign currencies are much
Economic Situation in Europe.
more varied than is generally
realized. Perhaps, therefore, the followin
You are all familiar with the postwar difficulties Europe
g enumeration, for you somewhat
had to contend elementary, may
be paidoned.
with. What is the position to-day?
As a first premise let me say that, speaking broadly
(1)
Foreign
balances
,
bills of exchange, securitie or other assets
and without the
such as raw
material
distinctions that should be made, Europe seems well
ties (cotton, wool, jute, copper, sgrain,
advanced on the road productss,tocommodi
etc.) and manufactured
the extent that they are
to recovery, and therefore, as a banking and credit risk
for shipment and suitable for sale
it deserves as high foreign markets against gold currencieavailable
in
s.
a rating as it has enjoyed at any time during the
(2) Foreign balances and gold assets held by the
last decade. Although
central bank of issue over and
burdened with heavy expenditures, the budgets
above
the
amount
required
as
legal
reserve against circulation and deposits
are substantially balanced
(3) Short or long-term foreign loans which
almost everywhere. The collection of onerous
may be contracted with other. foreign
taxes imposed proceeds on creditors to meet the obligatio
n due.
the whole satisfactorily. Thanks to the firm and
enlighten°i attitude of
In this connection I might remind you that
those the guide the destinies of the great national
our country, although the
banks of issue the most important,
currencies, with few exceptions, have been stabiliz
is by no meaas the only lender and that England
ed and anchored to the Switzerland,
, Holland,
gold standard. Only France and Italy among
Sweden, France and other countries are loaning
the Powers of Western substant
more or less
ial sums to their neighbors.
Europe have deferred their decision. And even
of them it might be said
That our European debtors have considerably
that the anchor is being held in readiness while
more foreign
the two hardy masters on is generall
y assumed can also be deduced from the statistic reserves than
the good ships which carry as precious cargo
s compiled with
the franc and the lira, are great care
by the Department of Commerce. According to
cruising just before the entrance of the port
trying to decide whether it is foreigne
this authority,
rs are believed to have held in the Unitd States
time to dock at "the gold points" or not.
at the end of 1926
deposits in the form of cash or short-term investm
The recovery in industry and agriculture
ents
aggregating the
is continuing its course. Un- huge
employment has been reduced in substant
sum of $2,250,000,000. In addition, according
to the same source,
ial proportions. In many counAmerican banks are said to have held at that time
tries, especially in France, Germany and
for account of foreign
Austria, efforts are being made
interests, stocks and bonds having an aggregate
to produce a sufficient supply of foodstuf
market value of $1,878,fs from their own resources
so that the yearly export of capital
000,000, although this latter figure included securiti
for this purpose may be reduced in the
es serving as collateral
future. The standard of.living has
for moneys borrowed in America. Rnmember that
increased in the Western and Central
these figures are exclusive
European countries and wages have
of other similar deposits maintained in England
advanced in comparison with pre-war
, Holland, Switzerland,
levels. That there has been some
etc.! The estimates made are based on the answers
accumulation of capital is evidenced
received as a result
by
savings bank deposits, life insuranc
e policies, etc. In Eastern and South- of a countrywide investigation and, therefore, should furnish at least an
eastern Europe the nnations are beginin
indication not only of the growth of our country
g to build up their own industries.
as a financial centre and
As to the great industrial nations,
of our liabilities in that respect, but also of
much of the wear and tear on plants
the fact that our European
and machinery caused by the war
debtors hare substantial reserves of foreign exchang
has been repaired, the latest perfecti
e. It is true that those
Introduced, and organizations
ons who have these assets abroad are not always
adapted to a greatly increased future
the some az those who contract
pro- the loans, but from the special angle
duction. The non-European
of our subject there is no doubt,
world must count without doubt upon
a that,
considerably expanded output along
certain lines as soon as it will be could in ease of imperative need, just as during hte war, these resources
profitable or advisable to increase
be tapped again.
exports.
So much for the asset side of
the balance sheet of Europe.
The Outlook in Europe.
What about the liabilities?
Three items must be borne in mind:
My first conclusion, thn, is that there are
a number of problems still
awaiting solution in the various countrie
s cf Europe. The effect of these
Foreign Markets Restricted.
solutions on the future general situation
cannot as yet be clearly deterFirst—The industrial capacity cannot be
exploited sufficiently as yet mined. In the course of the delicate process of rehabili
owing either to high cost of producti
tation which, in
on, insufficient purchasing power inest cases, has already entered upon its second and
In domestic or foreign markets
longest stage, errors
or high tariffs barring one nation's prod- were bound to be made in one direction or another,
and temporary setbacks
ucts from the area of its neighbo
must still be reckoned with. But if our brief
r, or hampering
analysis has been correct in
examination of the trade balances of eight leading their distribution. An its fundamentals,
we need not anticipate that such setbacks
European countries for
the first seven months of 1927 shows
, should they
in every instance an excess of imports occur, will assume such serious proportions that, barring
over exports. On the other hand,
a new conflagrathese same eight countries, if we com- tion, they would jeopardize seriously the real
progress made since 1919.
pare their exports for the first six
months of 1927 with those for the same Therefore, judging only for the moment, from the
angle of the situation
period of 1926, have increased their exports
without exception, France on the other side, there do not appear on the surface any
and Italy heading the list. Of course,
as a result of new developments why, for that moderate part of American national wealth sound reasons
In one country its imports of
which is being
certain articles or raw materials may be invested in Europe, the broad lines of policy which
have been traced
reduced and its exports to its neighbors may
at the same time be increased. should undergo a change at this time.
On the whole, the nations of Europe will
The main question to which I have
have to turn chiefly to other
addressed myself is then reduced
continents for the sale of their annual excess
production, and there is no to this: Shall we continue to be a creditor nation with
doubt that they must ultimately conquer
a large annual
excess
of
savings
new markets in Australasia,
looking for profitable employment?
As our French
Africa, the Americas and Asia in order to be
able to reach again a reason- friends say: "To ask the question is to answer it!"
able degree of prosperity, the ultimate goal
of all human ambition and
effort
American Foreign Banking, 1914-1927.
The history of our growth as a creditor
Lack of Capital.
nation is atilt fresh in all
intlids. There was a time not so far
The second item which is handicapping Europe
back, which we may recall without
and retarding its definite blushing
, when we were a debtor country and "the
recovery is the lack of sufficient short and
shoe was on the other
long-term capital. This has fs.A."
The great war gave the opportunity for
manifested itself more particularly in the Central
the first time for our
and Eastern European lisnks and
countries. Reduction of working capital in the
investor
s
to
play
a
leading
role
in international
countries afflicted by in- ing that time
flation is not necessarily synonymous with reduction
of depreciated currencies and trade disrupti finance. Durof assets, for the same in.stitutions
Inflation has often extinguished 75%-99% of the
and houses, including the Federal Reserve on, our financial
debts, while the bulk of ("Ming to
banks, without
meet their hei.vy obligations to our commerc
the assets of the borrowers—plants, machinery, building
s,
ial
—remained intact. Pending the slow process of formati inventories, etc. titerests at home, lent effective aid to the governm and agricultural
ents
on
of
and private
new
capital industries
the pressing needs for capital are being filled by
the local banks by means for short abroad through liberal accommodations and generous credits
and long terms. The burden of supporting
of short-term loans, which to-day have assumed
in a number of countrie
Europe rested largely
s on the shoulders of America. It was borne
more than normal proportions. In turn, the domesti
cheerful
c banks have Incurred a profound
as a rule much heavier debts than in pre-war
change took place in our point of view, andly. Then and there
times through short-term short time
our financial machinery was adapted to the in an astonishingly
credits contracted with their English, Dutch,
Swiss, Swedish and America
new responsibilities.
To change the investment and banking
n
correspondent banks.
policy pursued since then with
regard to Europe would be warranted
only:
DEC. 31 1927.1
THE CHRONICLE
longer represent the guarantees
First—If the securities or business offered did no
desired for the repayment of principal and interest.
I have already covered this point.should fall or if our Interest rates should rise
Second—If foreign interest rates
advantageous further to export part of
to such an extent that we would not find it
our capital.
for long-term loans and for perThat interest rates abroad, especially
e for some time to be attractive
continu
will
ent,
investm
capital
raanent
elaboration.
to foreign capital needs, I think, no further
United States Capital Resources.
a few figures only. In 1911
With regard to conditions here I need quote
as 60% of England's national
Sir George Paish estimated that as much
. America's total private
wealth was invested outside of the kingdom
ent debt, are computed to
foreign investments,* exclusive of the Governm
wealth, and to 5% inclusive
amount to 33% of our present national
investments represent only two
of the Government debt. The private
national income.** Our total
normal years' savings from our estimated
at
ed
%% of our national wealth.
estimat
are
**
Europe*
in
ents
Investm
form of long-term securities for
All the borrowings of Europe here in the
d to $508,000,000, equal to
the 10 months ending Oct. 81 1927, amounte
7% of our estimated annual savings.
*Estimated Private American Investments in
Europe
Latin America
Canada and Newfoundland
Asia, Australia, Africa and rest of world
End of 19 6.
$3,010,000,000
4,500,000,000
2,801,000.000
904,000,000
3573
same success, the challenge of
bank acceptance also will meet, with the
them as ('or country's reputathe greater opportunities opening up before
as the entire business world—at
tion becomes even more enhanced, and
the essential soundness and
home and abroad—recognizes more and more
ty.
faithfulness of the American banking fraterni
in Field of
Year Ended Sept. 30 1927 Most Prosperous
Report of
to
ding
Accor
cing,
Finan
Acceptance
ing House
Clear
the
of
s
Committee on Acceptance
ation.
Associ
rs
Banke
can
Ameri
of
on
Secti
Jerome Thralls,
We are giving herewith the report of
of the Clearances
Accept
on
ttee
Commi
Chairman of the
s' Association,
ing House Section of the American Banker
Houston, Texas, on
presented at the annual meeting at
ion of our American
insert
Oct. 24, but received too late for
12. The report
Nov.
issued
n,
Sectio
tion
Conven
Bankers'
follows:
can say that this has been
In the field of Acceptance financing, we
year that America has ever extive
construc
and
us
pospero
most
the
perienced.
s, consolidations and mergers,
Through substantial capital increase
000,000
$11,215,
have expanded their
Total
have strengthened their positions and
It
banks
which
of
our
000
$90,000,
about
nem
at
d
estimate
**Our annual income for 1926 has been and available for investment at home and facilities for financing both domestic and international trade. We
Is believed 8% or 10% is being saved
over a billion dollars—banks,
of
s
resource
with
banks
al
individu
WIMP
have
MN
abroad.
finance trade the world over
***Estimated at E480,000,000,000.
private bankers and acceptance houses that
ere.
and whose credits are honored everywh
Banking Reserves and Money Market Prospects.
reserves of the Federal
Volume Finances.
As to our banking position the present gold
$5,044.000,000 of
required for the legal cover
year ended September 30 1927 over
Reserve System over and above the amount
the
During
great
Our
.
000,000
nces. Of this total
about $1,100,
Accepta
Bankers
n
America
with
d
finance
of the currency and deposits amount to
(34.7%) exable to release a steadily business was
(88.2%), covered imports; $1,750,268,000
commercial banks are also in a strong condition,
the legitimate needs of $1,926,808,000
stored in independent warehouses
growing volume of credit to satisfy adequately
ports; $721,292,000 (14.3%) goods
c shipments; $156,364,their domestic and foreign customers.
country; $136,188,000 (2.7%), domesti
interested in the following in this
$353,080,000 (7%), covered goods
In this connection I believe you will be
000 (3.1%), dollar exchange; and
to another foreign
or shipped from one foreign country
figures:
nts of the 10 largest New stored abroad
the total of American Bankers Ac1927
30
er
Septemb
of
On June 80, 1927, an analysis of the stateme
As
.
The corresponding
. For every $100 gross de- country
York banks showed the following average position
issued and outstanding was $863,823.006.
monthly average
ed profits, these banks had on ceptances
er 30 1926 was $614,151,287. The
Septemb
of
posits and $12.99 capital, surplus and undivid
as
total
es
exchang
Reserve Bank,
that of the year 1926
that date $46.68 in cash balances with the Federal Rserve Bank. It should for the current year was $771,326,048, while
gratifying to every
and paper eligible for rediscount with the Federal New York banks there was $685,000,000. These figures should be most
for the
of progress and prosperity here
story
true
a
tell
They
be emphasized that in this figure of $46.68
banker.
n
States Government securities, America
a testimonial to Ameriimproved conditions abroad. They are
are not included call money loans, United
rm commercial paper, all of and of
and industry.
se
nor demand loans to customers and short-te
enterpri
can
r.
characte
ents of a liquid
Discount Market.
which items may also be considered as investm
will show that the liquidity
rated
A review of corresponding statistics abroad
has broadened considerably and has demonst
Market
t
Discoun
the
of
The
that
with
ly
favorab
bankers acceptances.
of our leading American banks compares
to absorb the ever increasing volume of
ability
its
.
000,000
the year will exceed $5,000,
principal European institutions.
The turnover of bills in the market for
steady throughout the
fairly
and
easy
The detailed figures are as follows:
tively
compara
been
810.08 Rates have
4% to
Reserve banks
maturities has been from 37
Cash in hand and balances with the Federal
year. Their range for ninety day
Bankers
the Clearing House (exchange) Fed-.
Items in process of collection throughalso
21.06 3%% . The present rates of discount for prime-ninety-day eligible
_
banks_
other
with
balances
the
and
and dealers
eral Reserve and other banks,
Federal Reserve Bank (included under *15.54 Acceptances are 8%% bid, ask 34%. The discount houses
Paper eligible for rediscount with Thes")
$100,000,000 of acceptances. The
the heading, "Loans and Discount by stock exchange collateral (included
in the market are now carrying about
to about
12.44 average aggregate of their portfolios for the year amounted
Call money loans to brokers secured
s")
Discount
and
"Loans
of
heading
general
the
under
on
carried mainly with funds borthe
impressi
been
refutes
have
s
it
as
holding
12.44
of
These
figure
this
to
,000.
n
$75,000
May I call your special attentio
abroad that an excessive part of New rowed at call from banks throughout the country. In addition to these
which prevails in some quarters at home and
Exchange in the form of "call money."
discount houses and dealers have
York bank assets leplaced on the Stock
Disand
"Loans
holdings of bankers acceptances, the
heading,
the
under
Other loans and discounts (Included
31.90 carried in the same way a very substantial supply of U. S. Treasury notes,
counts")
10.96
U. S. Government obligations. These
United States Government securities actually owned
9.67 certificates and other short term
U. S. Government
Other bonds, stocks and securities owned
1.34 call loans against eligible acceptances and short term
lenders almost as good
Buildings and miscellaneous
es are growing in popularity and net the
securiti
$112.99
eligible collateral. The
a return as do similar loans made against nont market call loans is 3%%.
discoun
of
on
close
rate
the
at
present
only
9
banks
of
figures
total
from other sources the
*Taking in this caselas-a basis the
When funds are not available to the market
business June 24 1927.
Reserve Banks. The ReFederal
the
at
dation
accommo
seeks
sufficiently accurate market
the market. They have been
I believe that these statistics present a picture
serve Banks have co-operated closely with
at
to permit these conclusions.
can be depended upon to relieve the market
and
bills
of
the
buyers
of
ready
ency
conting
the
of estates,
Abundant liquid reserves are available against
congestion. Large corporations, trustees
serious
of
maindeposits
times
ial
substant
the
of
commercial banks are among
gradual withdrawal in.the future of some
savings banks, insurance companies and
acceptances.
tained in the United States for foreign account.
for the the principal American investors in bankers Banks held $274,361,000 of
00,000
—$490,0
imports
over
exports
of
excess
ed
With continu
On October 12 1927, the Federal Reserve
with equanimity to the
forward
look
can
e
1927—w
of
months
10
market, and showed contingent liafirst
ly in the foreign acceptances purchased in the open
foreign correspondents. It
effect which such a withdrawal might have eventual
of $201,956,000 on bills purchased for
bility
s of millions of
exchange markets.
from the latter item that many hundred
appear
supply
to
would
able
be
will
country
this
time
of
Bankers Acceptances for
n
During an indefinite period
America
in
invested
being
now
of our idle capital in dollars are
not only a great compliment to our
foreign markets yearly with a considerable share
stock participation in gold reserve purposes, which is
the form of short or long-term loans or actual
same time a tremendous help to trade
the
at
is
which
but
credits,
in
the
rates
ions
foreign enterprises. We may have intermittent fluctuat
as between the London market and
ces, but at present both here and abroad. The spread
about %fro to 1%
for call money, commercial paper and bank acceptan
on Bankers Acceptances has ranged from
rates
on
ours
ntly
higher
a
ng
permane
indicati
horizon
the
being continuously higher than
there seem to be no signs on
throughout the year, the London rates
from
Far
way.
other
the
point
ons
indicati
All
rates.
level of interest
ion charged by the leading acceptors ranges
to be enlarged in the ours. The Acceptance Commiss
per annum.
being reversed, America's creditor position is likely
a minimum of 1% to a maximum of 2%
from
years ahead of us.
s.
ndation
Conclusion.
Activities and Recomme
Ameriean Acceptance
ed to cover in my obserYour committee has co-operated closely with the
As we review the ground which I have attempt
ding the good work of
g facts should stand out
vations to-night, it seems to me that the followin
Council and we take this occasion of commen
that important organization.
In clear relief:
rs. They buy half
The countries of Europe still are our best custome
Uniform Ocean Bills of Lading.
If we contribute
to
export.
desire
we
which
s
product
and
ties
the commodi
regulating the
Parliament passed in August 1924 an act
of their purchasing power, the
The
British
growth
further
and
lishment
re-estab
the
to
d to connational wealth and in- carriage of goods by sea. This act has since been amende
benefits will be mutual. The steady growth in our
d by repreattende
Conference,
Hague
the
at
down
ng
laid
the
rules
increasi
for
the
outlets
to
form
secure
to
have
come makes it imperative for us
now proposed
other markets of the world, sentatives of the principal nations of the world. It is
amount of our excess capital. In addition to the
for American interests benefits similar to those
secure
to
ns
tive
of
order
in
traditio
conserva
that
century-old
its
with
Europe
us
we need a prospero
similar
s
provide its share of opportuni- that are accruing to British for American interest benefits
traders and
administration and constructive enterprise to
The debtors, who have to those that are accruing to British bankers, merchants,
have a
to
ties for sound investments of our surplus funds.
made
taxation in order that manufacturers as the result of this act, that effort be
submitted themselves to all the discomforts of heavy
Congress, under which it will be possible to
S.
U.
the
by
ed
our
bill
deserve
continu
enacted
ons,
obligati
their
e
Through such
they may honorably discharg
work out an international uniform ocean bill of lading.
be broadened and
confidence.
y has a peculiarly a bill, the limit of the carriers responsibility may
naturall
Council
nce
Accepta
n
America
the
en,
Gentlem
to press suit for claims or
of the dollar acceptance and the more clearly defined. The time in which
intimate interest in the special funetion
twelve months and the burden
possibly
to
d
extende
be
may
be
I
But
shall
damages
abroad.
and
to the carrier, who has
extension of its influence in the United States
my term as President of the of proof when damages do arise, may be shiftedof "exceptions."
pardoned, I am sure, if at the conclusion of
ly escaped on the grounds
re
frequent
the
probeen
heretofo
have
who
men
the
hat
pride—t
without
Council, I say—not
made a worthwhile contribution
Taxes Against Non-Resident Investors.
moters of the dollar acceptance also have
present position in the wide field of
In aiding our country to attain its
invested in the London discount market by alien inare
sums
Great
justipast
in
the
done
been
that the income
International banking and finance. What has
that would not go there were it not for the fact
vestors
so
with
much
joined
have
who
group
ies. It is
fies the conviction that the fine
therefrom is exempt from taxation by the British authorit
n
to
the
America
lustre
giving
and
ng
advanci
devotion and enthusiasm in
3574
THE CHRONICLE
suggested in order to attract foreign funds into the American market.
we should devise a plan under which the income would be non-taxable.
It is, therefore, recommended that the present provision of
the Statute
exempting from taxation in this country, interest accruing to non-resident
aliens and foreign corporations on bank deposits should be extended to
include the discount or profits arising from investment in acceptances
in this country. Income upon such investments by foreign governments
In the American markets is now exempt. In view of the desirability of
carrying great sums here as gold reserve for exchange and for trade
purposes, it would seem greatly to the advantage of all interests
to
have these taxes waived.
Trust Receipts.
Difficulties are continuously arising because of the varied forms of
trust receipts that are being used in this country. The American Bar
Association now has under consideration a proposed measure which it is
hoped will be brought before the legislatures of the various States during the coming year. The adoption of this measure will pave the way
for a uniform and binding trust receipt. We suggest that the legislative
machinery of the A. B. A. be set in motion in co-operation with the
American Bar Association, in order to bring about the passage of this
needed and helpful legislation.
Standard Letter of Credit Forms.
Although standardized letter oi credit forms have not been put Into
general use, much progress has been made and the work on this important matter will be continued.
Warehousing System.
Under the direction of the Federal authorities at Washington, considerable progress has been made in licensing warehouses and perfecting
control over the operations of those heretofore licensed.
[VOL. 125.
thought of war. But their efforts were powerless against
the tides of misunderstanding and passion that finally swept
the world almost to destruction." Mr. Lamont,
whose remarks were presented under the title "International Finance
and World Trade," answered in the affirmative the question as to whether trade follows loans, declaring that "the
dictum 'trade follows loans' has undoubtedly, as many
years
of experience have shown, especially in the case of
Great
Britain, a sound foundation in fact." The speech in full
follows:
'Mr. Walter T. Layton, the eminent editor of the London
"Economist."
has just addressed you on the subject of "Europe
and World Trade."
We are soon to have the pleasure of hearing Mr. Jeremiah
Smith, until
recently Commissioner General for Hungary. on "World
Trade and Peace."
Your President has asked me to say a word or two
on "International
Finance and World Trade." That is not an easy
thing to do. Nobody
knows just how to define "international finance."
Many people think
of it as a thing of mystery and occult dealings;
others are so generous
as to say that it is a factor in world co-operati
on. Still others call it
downright wickedness and let it go at that. Without
attempting myself
to define it, may I point out that while internatio
nal finance has always
existed since the time when Phoenician traders
sent their clumsy craft
plying about the shores of the Mediterranean;
nevertheless, in the frequently accepted modern sense, of lending upon
a great scale and in large
units, international finance has existed for
America only since the early
days of the Great War.
European Capital for America's Benefit.
Prior to that time, as I hardly have to point
out, America for years
(although in the later ones in diminishing volume)
looked abroad for
capital. British, and in lesser degree Dutch, French
was a great factor in building our transcontinental and German capital.
railways and, through
the medium of farm loans, even in our agricultural
development. Now
all is changed. We were the world's largest borrower.
Now we are the
world's largest lender. Would this change have
Uniform Trade Acceptances.
come about except for
the Great War? The result of the war and of the
The question as to the negotiability of trade acceptance bearing
early
years following
s
the it was, as you know,
a heavy repurchase by American investors of
notation: "The obligation of the acceptor hereof arises out of the
American
pur- securities owned
chase of goods by the acceptor from the drawer. The drawee
by foreign holders. An even greater factor was,
of course.
may accept America's enormous
this bill, payable at any bank, banker or trust company,
excess
of
merchandi
se
exports over imports; such
in the United excess
for the years 1913 to 1920 alone being over 18 billion
States, which such drawee may designate," was raised in
the Supreme And
dollars.
now Americans have in recent years been leading abroad
Court of the State of Texas, and in view of the decision rendered
on such a
by said great scale
that the total investment of American capital
court, it was deemed advisable to revise the form so that
abroad is estiall doubt as to
mated at from 12 to 13 billion dollars, exclusive of the
non-negotiability would be removed.
war debts owed
to the United States Government—the present value of
The revised form, which bears the notation: "The transactio
which is figured
n welch at
gives rise to this instrument is the purchase of goods by
almost
7
billion
dollars.
And
the
gross
annual
income from this huge
the acceptor from
the drawer. The drawee may accept this bill,
payable at any bank, total of foreign investments is hardly less than 1 billion dollars per annum.
banker or trust company in the United States, which
I do not mean to intimate that there have been no
such drawee may
offsetting items of
designate," has the approval of the Federal Reserve
capital transfer from Europe to America. In fact these,
Board.
The revised form is being rapidly adopted throughou
emigrant remittances, tourist payments, foreign banking in the form of
t the country
deposits, etc.,
and can be obtained from the American ,Acceptanc
e Council. Informa- run into high totals. Nevertheless I wish to make clear the startling
tion as to the volume of business that is being done with
extent to which the general credit situation has been reversed.
trade
acceptance
s
is not available, but we believe judging from
the facts that have come
A Reversal of the Picture.
to our attention, that substantial progress is being
made with this valThis, then, is a mighty change, the influence of which
uable credit instrument, wherever it has been given
has an effect
a full, fair trial, it has upon
the economy and even the daily life of almost every nation
proven its merits.
in the
world. A moment ago I propounded the question, Would this
Admitting that the acceptance method of financing
change have
has
gained a per- come about except
manent foothold in America, that it has gone
for
the Great War? To this economists are, I think.
beyond the experimental
inclined to say yes—although nothing like so soon. America's
stage, and that to have developed it to its
nrodigious
present high state of effinatural resources, the industry of her workmen, the amazing
ciency in less than fifteen years, is an unmatched
ingenuity
accomplishment. We and
must not forget that we are favored all along
efficiency
of
her
industrial
organizers
could
not
have been ultimately
by unusual conditions and
denied. The results of American scientific management
that these conditions are now rapidly changing
and large-scale
and may turn against us.
Dollar credits are doing valuable service
throughout the civilized world. production are clearly becoming manifest in our world trade. Back in
Competition is growing keener, and to maintain
1880. 81% of our exports were in foodstuffs and raw materials;
the dollar in its present
only 15%
position and to expand its usefulness to commerce
in manufactures. In 1926 the first figure had fallen to
34% while our
and industry here and
abroad, will call for the matching of talent
export of manufactures had gone up from 15% to 52%.
with bankers on the other
America's preside who have a background of centuries of
eminence not, I may say, in pure craftmanship, but
experience in the acceptance
in mass production,
has become one of the seven wonders of the world.
business. We believe every effort should therefore
be made to strengthen
and further improve our facilities. A broad
To the bringing about of this great change whereby America
discount market is an inhas become
the creditor of the world has International Finance,
dispensible part of our financial system, and a
so-called, made any
close stedy of the market
should be made by bankers in the important
contribution? Furthermore, have these activities been
in any way concenters
country. The facilities of the market can be utilized throughout the structive? The answer to those questions must lie in the
brief history of
by hundreds of the
banks that do not now avail of them.
post-war years. I am not sure how fully the American
public appreciates the extent and the importance of the assistance
Respectfully submitted, with the recommendation
which America has
that the work of
the Committee be continued,
fortunately been able to give to many of the problems
of reconstruction.
The mast noteworthy in the early years following the
Armistice were the
Philip Stockton,
H. G. P. Deans;
borrowings of the British, French and Belgian Governmen
Percy H. Johnston,
ts in the AmeriE. W. Decker,
can investment markets, which totaled $785,000,000.
Charles P. Blinn, Jr., P. W. Goebel,
A
amount was devoted to the purpose of refunding loans portion of this
C. E. Sullivan,
made during the
Lynn P. Talley,
war. Another portion was utilized for the important
Oliver J. Sands.
purpose of currency
Frank B. Anderson,
stabilizati
on.
John K. Ottley,
Jerome Thralls, Chairman.
In the work of European reconstruction the saving
and rebuilding of
Austria under the plan devised by the League of
Nations
first
task. The international loan necessary in 1923 to setconstituted the
Discussion of "International Finance and
the new plan
World Trade' in operation was underwritten and offered
by bankers, acting in concert,
By T. W. Lamont Before Academy of
Political of Great Britain, France, Italy, Switzerland, Belgium, Holland, Sweden,
Science—No Truth in Dictum that Banker
Austria, and to the extent of 25 million dollars of the
United States. The
s Can second
operation was that for Hungary which Mr. Smith
Bring on or Prevent War.
here, as COMmissioner General, carried out so effectively.
The
necessary
loan there
The importance of the assistance which
America has was shared in by bankers of Great Britain, Czechoslovakia, Holland,
Italy, Sweden, Switzerland, Hungary and again of the
been able to give to many of the problems of
United
States.
reconstruction
since the World War was dealt with in an
Dawes Plan Loan and Others.
address by
Next, three years ago came the great international
Thomas W. Lamont of J. P. Morgan & Co.,
Dawes Plan loan for
delivered at the the equivalent of about
200 million dollars to the German Government,
annual dinner of the Academy of Political
Science at the over half of which, 110 million dollars, was successful
ly taken up by
Hotel Astor, this city, on Nov. 18. Examples
of interna- American investors. In this the other participating countries were Great
Britain, France, Italy, Switzerland, Holland,
tional finance which have been constructive and
Belgium,
Sweden and Gerhelpful "to many. The 100 million dollar internatio
nal loan to Belgium,
the restoration of a war-worn world to normal
a
conditions" year ago for the purpose of stabilizing the currency and helping toissued
restore
were cited by Mr. Lamont, who incidentally noted
Belgium to the gold standard, was issued one half
by American bankers
that and the other
half by bankers in Great Britain, Holland, Switzerlan
"people sometimes say that international finance can
d and
make Sweden. At the same time credits to the National
Bank of Belgium were
or 'unmake States, can bring on or prevent war."
arranged
by the Central Banks of Austria, Great Britain, France,
"ForGermany,
Holland, Hungary, Japan, Sweden and by the
tunately or unfortunately," said Mr. Lamont, "there is
Federal Reserve Banks of
no the United States. Less than
a month ago an international loan of 72
truth in that dictum. Looking back to July 1914,
I know million dollars for the stabilization of Poland was arranged;
investors
of no group of bankers in any one of the countries
soon to participating through bankers of Great Britain, France, Holland, Poland,
Sweden, Switzerland and the United States, whose
De involved- that was not earnestly opposing
share
was 47 million
the very dollars. An imposing list of credits
for the National Bank of Poland
Co-operative Marketing.
Some disappointnment has been experienced 'aith the plena for handling
agricultural products under this method. It is difficult to point to
the major reason for the failure of these plans. It may be that
in cooperatives as is true in most public and Governmental matters private
initiative and talent cannot be matched.
DEC. 311927.]
'
THE CHRONICLE
by the Central Banks of Austria, Belgium,
was at the same time arranged
Finland, France, Germany,
Czechoslovakia, Denmark, Great Britain,
and the Federal Reserve
nd
Switzerla
Sweden,
Hungary, Italy, Holland,
States.
United
Banks of the
Assistance for Various Countries.
earthquake and fire of 1923 the
When a few months after the great
friends in the western investment
Japanese Government locked to their
-deserved assistance, the great loan of
markets for much-needed and much
million dollars in America and 25
150
issued:
was
February, 1924,
And within the last twelvemonth
Britain.
Great
in
sterling
million
e of 40 million dollars of bonds
American investors have bought an aggregat
guaranteed by the Japanese Governof the cities of Tokyo and Yokohama,
time the Commonwealth of Aus•
ment. When in July 1925 for the first
market, our investors purAmerican
the
of
ion
co-operat
tralia sought the
6 million sterling being
bonds,
n
Australia
of
dollars
million
chased 75
Since that time the Commonsimultaneously issued to British investors.
Wales have borrowed in American
wealth and the province of New South
markets a total of $90,000,000.
determined to return to the gold
In April 1925 the British Government
to British commercial interests.
as
American
to
t
importan
as
step
a
standard,
the British Government and the
operation
vital
this
facilitate
to
order
In
in New York to their requests for
Bank of England found prompt response
two-year credits aggregating 300 million dollars.instances that I have just
One could go on adding many more to these
the question that I asked
given. But are these not sufficient to answer
of international finance
examples
these
have
namely,
ago,
a few moments
helpful - to the restoration of a warand
ive
construct
whole
the
on
been
claim for international finance
worn world to normal conditions? Can we
could these great, these vital and
that it has also been co-operative? How
s have been carried through
in several instances most difficult operation
water had not sunk their individual
if financial leaders on both sides of the
benefit of the countries involved?
Interests and worked together for the
and nights of intricate negotiaCan you picture to yourselves the days
spirit of give-and-take, that have
tion, necessarily animated by a friendly
necessary to complete these efforts
for the last four years or more been
to repair the ravages of war?
3575
$2,000,000,000.
America had reached a total of nearly
Noteworthy Comparisons of Trade.
on of these for seven
Now let us turn to the trade figures: A compilati the four years prior
that in
of the leading South American countries shows
their total imports
of
of 25%
to the war Great Britain supplied an average
2%. Whereas from 1922 to 1925 inclusive
/
and the United States only 141
that of the United States rose
Great Britain's proportion fell off to 23%,
while Great Britain has mainto almost 25%. It will be observed that
imports surprisingly well, the
tained its proportion of South American
2% before
/
n from a level of 141
proportio
its
increased
has
States
United
Is there not manifestly a direct
the war to one of 25% in recent years.
American capital in South
connection between this fact and the fact that
as compared with a few
America now amounts to some $2,000,000,000,
reasonable to assume that
hundred millions before the war? And is it not
will be sustained, if we con.
our enlarged share of South American trade
year or more in that continue ta invest at the rate of $300,000,000 a
ans of the Department of
tinent? These are questions which the statistici
I. And only the coming
Commerce are far better equipped to discuss than
statesmen as well as our
years, and the skill and wisdom with which our
South American countries, will
financiers handle their relations with the
ng questions which we ask
yield the actual answers to these interesti
ourselves.
America's Abundant Good Fortune.
privilege it is to be an
Finally, I want to remind you of the great
country of great opportunity.
American citizen to-day. This is still the
t have given us justifiThe great resources of this North American Continen for giewine• optimism,
cation for boundless vision, for generous impulse,
to be born an American, free
for helpful cc -operation in all directions. Just
Old World, is in itself an
from some of the clinging prepossessions of the
by a long lead in
inheritance and a career. America is already first
hold two-fifths of the entire
wealth and material prosperity. Already we
cotton; 45% of its grains;
world's stock of gold. We produce 54% of its
iron and steel. Is there any
60% of its copper; more than half of its
we are not pre-eminent? With
field of material accomplishment in which
we are, can we not afford to
these great resources, favored by the gods as
oftener than we do, to pray that
ponder on our blessings and to pause, even
may be vouchsafed to us; well
the spirit of understanding and sympathy
ns is to be made a more
knowing that, if this earth in coming generatio
to live in, the coming of
stable, a more gracious and a happier place
The Task of Reconstruction.
depend almost entirely upon the conscious co-operation
finance can make or unmake such an era will
People sometimes say that international
the world?
ut
througho
men
there
of
tely,
unfortuna
or
ly
States, can bring on or prevent war. FortunateJuly 1914, I know of no
back to
is no truth in that dictum. Looking
soon to be involved that
Mergers in Philadelphia—Movement Has Gone on
group of bankers in any one of the countries
of war. But their efforts Bank
Rapidly in Last 18 Months.
was not earnestly opposing the very thought
that
standing and passion
were powerless against the tides of misunder
Philadelphia News Bureau Oct. 10 1927.1
been
the
have
(From
could
on. If affairs
finally swept the world almost to destructi
es in Philafor bringing on the great conThe merging and consolidating of banks and trust compani
ordered so that the statesmen responsible
the task of rebuilding delphia into larger institutions has been going on rapidly in the last 18
ng.
flict could also have had dumped on their shoulders
continui
of
promise
different! This widespread months and the movement in this direction gives
the worlik history might possibly have been
local institutions have figured in mergers or conthrough the
30
first
than
shed
more
accompli
Already
been
has
describe
I
reconstruction which
of $990,650,000.
peasant farmers of France, solidations, representing aggregate resources in excess
s, which
day-by-day endeavor of the common man. The
ists of England and This includes nearly a score of the larger banks and trust companiefor large
industrial
the
Bohemia,
of
and
Belgium
of
the artisans
better footing
been rebuilding the shaken puts the banking facilities of the city on a much
Germany: they have been the ones who have
upon this structure as a undertakings.
around 60, and it is
structure of European society. And it has been
The number of small trust companies in the city is
if you please, international
their
basis that the bankers and investors and,
and logical that they should seek to strengthen their position and increase
ion
co-operat
of
efforts
their
basing
been
best banking opinion
finance the world over, have
and even ideals size by combining with other companies. it being
methods
and
efforts
the
to
of
as
ons
much
instituti
So
by fewer
reconstruction.
that customers' requirements can better be served
of international finance since the war.
greater size.
ed last week, Is that
The latest merger of large trust companies, announc End Trust Co., and
Does Trade Follow Loans?
the Real Estate Title Insurance & Trust Co., West
of
deplore
I
to-night
this month. ThS
Now, if Secretary Hoover (whose necessary absence
Title & Trust Co., on which stockholders will vote
"You have talked much Land
will be known as the Real Estate-Land Title &
company
ted
with you) were here he might turn to me and say
consolida
reconstruction. But
Co.
of international finance in its efforts for post-war
is supposed to be Trust
acquisition by the
Another large consolidation the current year was the
how about international finance and world trade which
e & Trust Co.
connection between the
a
trace
you
Can
remarks?
your
of
subject
the
Provident Trust Co. of the Commonwealth Title insurancearly last year,
If
temis:
general
in
t to consolidate really began actively
movemen
Toe
two?" My answer to Mr. Hoover would be partly
had not taken that all- when the Franklin and Fourth Street national banks took such action,
American investors, acting through their bankers,
in 1924. would
pnia National and the
important share in the great Dawes Plan loan to Germany its purchases followed by the bringing together of the Philadel
Germany have been able to recover sufficiently to increase bales in 1923 Girard National into one bank.
Co. and Philadelphia
Other big mergers in 1926 were Fidelity Trust
of American cotton, for instance, from only about one million
its purchases of copper Trust Co. into the Philadelphia-Fidelity Trust Co. and absorption by Corn
to well over two million in both 1925 and 1926;
Other Ameri- Exchange National Bank of Third National Bank. The Pennsylvania Co.
from 136,000,000 pounds in 1923 to 229,000,000 in 1925?
of which has seemed to be for Insurances on Lives & Granting Annuities acquired the Real Estate
can commodities could be mentioned, the sale
however, necessary to go Title Insurance & Trust Co. and will have about a 25% interest in the latest
stimulated by European recovery. It is not,
loans" has undoubt- merger, the Real Estate-Land Title & Trust Co.
follows
"Trade
dictum
The
these.
of
detail
into the
Co.. and the Bank of
especially in the case of
A few years prior to this, the Commercial Trust
edly, as many years of experience have shown,
to prove it by North America had merged under the name of the Bank of North America
to
attempt
Greta Britain, a sound foundation in fact. But
ive methods the effect of & Trust Co.. and the First National Bank had acquired the Centennial
concrete examples or to assay by any quantitat
difficult.
National Bank.
foreign loans on international trade movements is always
the last 12 months or
The smaller mergers of trust companies within
first in each instance being
America.
Increasing Business With South
so include the following, the institution named
Co., Peoples Bank & Trust Co.
example of the effect of the absorbing company: Colonial Trust
I am, however, inclined to think that a good
Trust Co. and Pelham Trust Co.—
in the figures of and Excelsior Trust Co.—Germantown
be
noted
may
trade
export
ng
in
stimulati
loans
foreign
Bank of Commerce—Mutual Trust Co.
of the United States with Bankers Trust Co. and National
the comparative trade of Great Britain and
Bank, the consolidated company to be known as the
National
Union
and
counterthe
not
are
there
Central Trust and Phoenix Trust Co.—
South America. In the case of South America
in the United Union Bank & Trust Co.—Northern
quehanna Title
movements of investment of South American capital
Oak Lane Trust Co. and Lawndale Bank & Trust Co.—Sus
s'
remitemigrant
res,
expenditu
tourists'
of
and
Title & Trust Co.
States and Great Britain,
Street
rd
Sixty-thi
and
Co.
Trust
&
balance of payments
d profits
tances, etc., to such a degree as in the case of the
The table below indicates the capital, surplus and undivide
Before the war, Great
as of
between the Unitd States and European countries.
the various institutions mentioned, figures being
s
for
resource
and
South
the
American
to
d and approxBritain was lending considerable amounts each year
June 30 1927, where the consolidations have been complete
"
loans
"Statist,
London
the
of
ons
countries. According to the compilati
for those yet to be completed.
by British investors in the imate figures
Sur. & amity. Combined
to all the South American countries granted
or
,000,
ately
$926,000
approxim
ed
resources.
aggregat
profits.
war
the
Capital
on
ted
Instituti
five years preceding
Consolida
During the same period,
$7,500.000 $15.000,000 $86,749,362
an average of about $185,000,000 annually.
Eat -Land T. & T. Co
Real
in
the
American
3,175,120 16,315.803 39.835.317
t Trust Co.
there were practically no South American loans placed
t to Providen
8.000,000 21.366.182 236.795.619
market, with the exception of one to Argentina in 1909, equivalen
Philadelphia-Girard Nat. Bk.
of
total
the
1914
American
in
that
6.000,000 18,788.515 152.773,479
about $10,000,000. It is estimated
Franklin Fourth St. Nat. Bk.
of which probably Corn Exchange National Bk.
2.700.000 8.522,550 87.491,894
foreign investments was only about $2,500,000,000,
been invested in South Fidelity-Philadelphia Tr. Co
6,700,000 24,598,275 122,583,568
not to exceed several hundred million dollars had
of Great Bk. of No. America & Tr. Co.
5.000,000 6,764.391 64.090.434
America, chiefly in mining properties. On the other haand, out
20
billion
dollars,
some
5.126,513 68,413.339
1.950.000
First National
Britain's foreign investments at that time, totaling
1,813,834 40.667,129
conn• Colonial Trust
1.875.000
nearly 3 billion dollars had been placed in the South American
utilities and Germantown Trust
1,120,000 2.586.063 26,080,525
tries, in government and municipal loans, railways, public
700.000 19.000.000
2.875.000
Bankers Trust
industrial undertakings of various sorts.
1,000,000 2,000.000 35,000.000
the Armis- Mutual Trust
following
years
the
during
that
is
of
note
worthy
is
What
386,364 6,331.486
550.000
Britain as the chief source of Northern Central Trust
tice, the United States has replaced Great
403,573 3,873.091
500,000
publicly issued in Oak Lane Trust
new capital for South America. South American loans
1,012,725
22,626
150,000
inclusive, have aggregated Susquehanna T. & T.
the United States during the years 1921 to 1926,
and
Central National Bank, Girard Trust Co., Penn National Bank
almost $850,000,000, while Great Britain's for the same period have
have
ons
which
instituti
large
the
among
Bank are
by
is
National
it
Street
estimated
of
Market
1926,
end
the
At
,000.
$250,000
hardly exceeded
in South not participated in the merger movement.
certain authorities that the amount of American capital invested
3576
THE CHRONICLE
For,. 125.
Growth of New York Banks in Last Decade-Resources over, are not to come on the market for a certain period of time. We
of Sixteen Institutions Unaffected by Mergers Re- shall thus be given an opportunity to assist materially in the speculative
activity which has characterized foreign stock exchange movement
s, withport Normal Growth of 72% in Resources.
out obtaining for ourselves corresponding compensation.
"Who for instance is going to benefit by the listing in this
Evidence that the recent noteworthy gain in bank remarket
of the shares of the I. G., the big German chemical
combine which in
sources is due only in part to merger activities is afforded conjunction with
other European chemical concerns has recently formed
In a compilation just completed by Gilbert Eliott & Com- the big chemical trust? The total number of shares that American
s will
pany. This study reveals that there are 16 banks and trust be 'privileged' to purchase will certainly not give us, in any way whatever, a, voice in the running of the trust, but will in
all
likelihood
enable
companies in New York which in the last ten years have Europe to more successfully wrest from us
our newly won dye and chemiexpanded solely on their own activities and not through cal trade in the Far East and in South America.
"Whatever will be offered us, will most likely
be something which
consolidation or purchase of other institutions. Total re- the Old World will
very well be able to do without
sources of these banks increased during this time from
"The Chairman of the Board of a prominent British
-owned railroad com$A124,566,200 to $3,651,377,523, a gain of $1,526,811,323 or pany in' Argentina, when asked by one of the stockholders why England
permitted all the 'good' South American deals to be
financed in this mar72%. Surplus and undivided profits of the same banks ket and whether
it was because of the shortage
capital in England,
Increased from $147,531,200 to $289,018,859, a gain of $141,- replied that 'whatever is truly good, London will of
always find funds for
487,659 or 96%. At the last call of the Treasury Depart- it.' England takes Brazil's coffee loans but lets us have Santa Catharine
and Ceara and Matto
bonds. England finances the Mogyana and
ment in October, the Guaranty Trust Company led all other Paulista railways, but Crosso
lets us have the Brazil Railway Company. Europe
tells
us of the constant dangers in the Near East and the
banks of this classification with total resources of $765,risks connected
with investing in that part of the world, but
there is definite proof that
128,460 compared with $577,163,000 in 1916, a gain of Europe
is doing business in that very section out of
funds obtained from,
$55,665,572. The National Bank of Commerce in New York, and cheerfully supplied by us.
"Let us look carefully before we enter
Is second with a total of $44,197,459 compared with $18,into'
the second act of this
big drama of our position is a creditor
nation. Let it not be a tragedy
865,800 in 1916, an increase of $25,331,659. In point of for ourselves
and a comedy for Europe. Let us
minutely the
percentage gain, the Bank of United States leads all others gifts our Continental friends have to offer. The scrutinize
entire matter reminds
both in total resources and surplus and undivided profit me a good deal of Virgil's famous line 'Quidquid id est, timeo Danaos
et dona ferentes.'"
Increases, During the ten years its total resources increased from $4,227,300 to $103,011,320, an increase of Summary of Condition of
Labor Banks in United
$98,748,020 or over 23.2 times. Surplus and undivided
States-Results of Four Years'
Operation of
Federation Bank & Trust Co. of New
profits increased from $118,800 to $5,105,036, an increase of
York.
Accordi
ng
to a compilation of the Department of
$4,986,236 or over 41.9 times. Resources of the Public
EcoNational Bank increased from $18,002,100 to $137,272,669, nomics and Social Institutions of Princeton University, the
labor
banks
of
a gain of $119,270,569 or over 6.9 times. Resources of the
the United States showed deposits of $100,Chelsea Exchange Bank, which ranks third in point of 415,748 on Oct. 10 1927 and total resources of $117,436,344.
percentage gain, increased from $4,368,800 to $23,966,721, The largest amount of deposits is credited to the Federaa gain of $19,597,921 or over 4.4 times. Surplus and un- tion Bank & Trust Co. of New York, viz., $17,315,157.
We
divided profit of the Public National Bank increased from give the compilation herewith.
INDUSTRIAL RELATIONS SECTION-PRINC
$663,600 to $8,843,058, an increase of $8,179,458 or 12.3 times,
ETON UNIVERSITY,
PRINCETON, N. J.-SUMMARY OF
STATEMENTS OF CONDIwhile the surplus and undivided profit of Chelsea Exchan
TION OF LABOR BANKS IN THE
UNITED STATES,
ge
October 10 1927.
increased from $136,500 to $972,214, a gain of $835,71
4 or
Over 6.1 times. Details are supplied as follows
:
Total
Location & Name of Beta Capital. Surplus. Undivided
Profits.
Deposits. Resources.
Boston, Mass.$
$
$
$
t
Engineers Nat. Bank_
500,000
50,000
44,734 2,813,559 3,720,880
Chicago, Ill.Amal. Tr. & Say. Bk_
200,900
100,000
53,292 3,016,007 3,400,558
Cincinnati, 0.
Brotherhood of Ry.
Clerks Nat. Bank__
200,000
50,000
23,753 4,422,351 4,918,408
Cleveland. 0.
Brotherhood of L. E.
Co-op. Nat. Bank_ _ 1,000,000 *342,234
15,771,927 18,146,345
Nottingham Savings
& Banking Co.(0_
75,000
5,000
18,245
766,589
864,842
Gary. Ind.Gary Labor Bank _ __.
50,000
10,000
1,796
539,294
640,229
Great Falls, Mont.
Labor National Bank.
100,000
8.000
8,289
622,156
740,258
Hammond, Ind.People's Co-operative
State Bank
100,000
25,000
18,502 1,805,158 1,986,426
Houston, Tex.
Labor Bank dr Tr. CO100,000
10,000
5,261
382.891
501,035
Indianapolis, Ind.Union Labor Bank dr
Trust Co
225.000
*11,826
725,459
971,181
Jackson, Mich.
Farmers dr Workingmen's Says. Bank
100.000
13,000
3,818
824,820
942,825
Jersey City, N.J.Labor National Bank_
200,000
50,000
34,117 1,883.156 2,344,195
Los Angeles, Calif.People's Nat. Bank
500,000
*84,237
3,245,501 4,046,787
Minneapolis, Minn.
Transportation Bros.
National Bank
200,000
*92.645
2,272,605 2,852,389
Newark, N. J.Labor Nat. Bank (2).
250,000 *134,227
3,128.333 3,567,486
New York, N. Y.Amal. 13k. of N.Y.(2)
500,000
250,000
91,115 8,157,082 9,293,422
Federation Bank dr
Total
$289,018,859 $147,531,200 5141,487,659
Trust Co.(2)
750,000
750,000
232,034
17,315,157 19,503,862
International Union
Bank (2)
250,000 *223,034
3,697,958 4,320,564
Max Winkler Questions Benefits of Listing
E'aterson, N. J.Foreign
Labor Co-operative
Shares Here.
Nat. Bank (3)
300,000
150,000
84,245 4,638,449 5,689,849
Commenting on the proposed listing on the New York *ortland. Ore.Bro. Co-op. Nat. Bk.
200,000
*54,129
2,348,015 2,831,110
Stock Exchange of foreign shares, Max Winkler
Inger:Emilie, Tenn.of Bertron,
Hawkins Co.Bank (4)
50,000
*58,920
Griscom & Co., Inc., made the following statement
561,184
670,104
irm
Bernardin
o,
Calif.on
-'41
San Bernar. Vail. Bk.
175,000
22,000
Nov. 3:
8,664 1,771,221 1,997,885
Ian Francisco, Calif.Bro. Nat. Bank
"Careful analysis of the decision by the Exchange to
500,000
100,000
24,479 1,511,175 2,315,260
list foreign stocks
It, Louis, Mo.would not seem in any way to constitute a new radical
Telegraphers' Nat.13k.
500,000 *197,259
our endeavor to transfer the financial supremacy from step forward in
6,623,499 7,675,758
eattle, Wash.the banks of the
Thames to those of the Hudson. Those who have
Bro. Bank & Tr. Co._
250,000
*43,920
become quite enthusiastic
916,459 1,210,379
ookane,
Wash.over New York's assuming 'London's cosmopolitan
character,' referring
Bro. Co-op. Nat. Bk.
200,000 *123,438
to the proposed listing of foreign shares as 'the greatest
2,638,196 3,189,022
Bro. State Bank
step
in the en25,000
5,000
2,043
173,713
hancement of New York's position in international
'aroma, Wash.206,598
finance since the
Bro. Co-op. Nat. Bk_
establishment of the Federal Reserve System' overlook
200,000
*50,492
one cardinal fact: 'tree Forks,
2,553.483
3.004.376
Mont."Most of the foreign shares dealt in on the London
Labor National Bank
only in pound sterling, but represent shares in concerns market are not
of Montana
25,000
which are either
5,000
7,919
188,934
226,853
'oledo. 0.owned and controlled by the British or in which the British
have
American Bank (1)
a substantial interest. Are we going to do something similar? at least
200,000
*50,000
787,050 1,066,321
'ucson, Ariz.Nothing
of the sort. We are merely going to acquire a number
United Bank & Tr.Co.
of shares in
70,000
*2,431
693,978
804,809
a foreign enterprise in the management of which we
7ashington, D. C.shall have very
Mt. Vernon Sava.Bk.
little, if anything to say, will issue certificate against
160,000 *125,198
3,620,389 3,986,830
them, and shall
offer them to our investing public.
Total
A.155.000 '3555296
Ina 415_74R 117435 544
"In many instances, the foreign companies will, for
(1) Statement of Sept 12 1927. (2) Statement
of Sept. 30 1927. (3) Capital
having Americana share in their 'actual ownership,' issue the purpose of increased
from 9200,000 to $300,000; surplus increased
additiona
l
shares
from
5100.000 to $150,000.
(4) Statement of June 30 1927.
to the extent of such 'American participation,' and
which shares, more*Combined Surplus and undivided profits.
NEW YORK BANKS AND TRUST COMPAN
IES WHICH HAVE NOT
MERGED WITH OTHER BANKS AND TRUST
COMPANIES.
Last Ca111927. Last Call 1916.
Increase.
Guaranty Trust Co
3765,128,460 3577,163.000 3187,965,460
Bank of Commerce
631,246,404
319,526,500
311,719,904
Bankers Trust Co
573,838,1
46
257,257,700
316,580,446
First National Bank
398,455,619
222,074,800
176,380,819
Corn Exchange Bank
276.792,859
150,091,500
126.701,359
Park National Bank
224,784,3
39
202,024,700
22,759,639
Farmers' Loan & Trust Co
201,403,718
192,367,200
9,036,518
Public National Bank
137,272,669
18,002,100
119,270,56d
State
125.463,172
34,574.700
90,888,472
Bank of United States
103,011,320
4,227,300
98,784,020
United States Trust
89,649,640
84,624,500
5,025.140
Harriman National
41,375.55
9
27,280,40
0
14,095,159
Chelsea Exchange
23.966,72
1
4,368,800
19,597,921
Garfield National
22,043,241
13,487,900
8,555,341
Fulton Trust
21,003,244
11,501.300
9,501,944
New Netherland
15,942,412
5,993,800
9,948,612
Total
83,651,377,523 52,124,566,200 31,526,811,323
Surplus and Undivided Profit.
Guaranty Trust Company
$33,657,084
833,999,900
8342,816
Bank of Commerce
44,197,459
18,865,800
25,331,659
Bankers Trust Co
20,117,306
17,016,600
3,100,706
First National Bank
80,908,972
25,243,400
55,665,572
Corn Exchange Bank
16,514,017
7,408,600
9,105,417
Park National Bank
24,695,981
16,268,000
8,427,981
Farmers' Loan & Trust
21,264,52
2
8,628,100
12,636,42
2
Public National Bank
8,843,058
663,800
8,179,458
State
6,174,015
812,600
5,361,415
Bank of United States
5,105,036
118,800
4,986,236
United States Trust
20,960,530
14,878,500
6,082.030
Harriman National
1,580.344
1,243,600
336,744
Chelsea Exchange
972,214
136,500
835,714
Garfield National
1,898,209
1,316,700
581,509
Fulton Trust
1,506,682
721,700
784.982
New Netherland
623,430
208,800
414,630
DEC. 31 1927.]
THE CHRONICLE
3577
group of
for the long run appreciation which is assured in a diversified
high-grade common stocks.
(c) The report states:
embodies one of the gravest
"Continual Issuance of certificates of ownership
investment trust, because a conto orderly development of the American
menaces
increased
surplus
trust funds compels
and
investment
capital
fixed
1925,
in
October
certificates
2.
tinual issuance of participating
the deposited units, regardless of the heights
the purchase of securities called for in driven
3. Resources now around $20,000,000.
buying."
such
25
by
and
Unions
currently
for
be
may
($10,000)
prices
to which the
4. Stock ownership limited to 50 shares
trusts of the
Contrary to popular impression, the activity of investment
shares ($5,000) for individuals.
are stockprices materially.
unions
local
150
over
and
unions
international
snit issue type probably has not influenced stock market
5. Over 35
widely
of impounding
the most
While the growth of these trusts apparently has the effect
holders in the Federation Bank & Trust Co., making it
American continent Stock Exchange securities and reducing the floating supply, there are
owned and most representative Labor bank on the
institution than in other factors at work which should be taken into consideration.
because a larger variety of unions own stock in this
by customer
For one thing, the wide distribution of securities effected
In any other Labor bank.
unions as deposi- ownership and employee ownership campaigns and purchases on the
6. Have over 45 international unions and 400 local
doubtless factors of
part of small investors for strong box account are
tors.
is no longer an much greater importance in withdrawing securities from the stock market,
7. After four years of successful operation the bank
paying
tendency, rather, is
experiment because the stock is now on a conservative dividend
yet we have heard no complaints on this score. The
In the long
5%; in
universally regarded as economically sound and beneficial.
basis of 4% on the investment, and for the year 1926 paid
any future run, the effect of such purchases, whether for investment trust, customer
addition to that, we are building up substantial reserves for
be to reduce
ownership, employee ownership or strong box account, must
emergencies.
has
large in the
speculation and to enhance the interest of investors by and
8. Has paid to its stockholders over $185,000 in dividends and
was
which
put back into its surplus account the money (over $30,000)
wise and efficient management of our corporations.
investing
used in the first year, before the bank was on a paying basis.
After all, the investment trust cannot increase the potential
accomplish
9. We have succeeded in establishing a safe, sane, conservative insti- capacity of the American public. The most that it can hope to
who
tution, having the confidence, respect and support of our unions, their is to divert this capacity from speculation to investment. Individuals
now purmembers, business men and financiers.
formerly purchased New York Stock Exchange securities directly
a
To
trust.
every
10. To serve our customers to the best advantage, we are open
chase them largely through the medium of the investment
business day from 9 A. M. to 6 P. If., and on Saturday from 9 A. M. to great extent, the purchase of such securities for investment trust account
3 P. M., which enables our customers to come to the bank without loss of must be balanced by diminished purchases on the part of individuals.
time or any great inconvenience.
Furthermore, the available supply of securities purchased by investment
11. We are conducting a strictly banking business, without any fads trusts is constantly being increased through the introduction of new capital
or fancies, confining our activities to the essential parts of banking, the and common stock financing by corporations to take care of their normal
Special Interest (Savings) Department where 4% is paid, and our Com- growth. For example, New York Central, American Telephone & Telegraph,
mercial (Checking) Department where 2% is paid on balances of $1,000 United States Steel and others, have recently greatly enlarged their stock
capitalization by offering rights to new stock and by issuing stock diviand over.
12. A comparative statement of Labor banks, recently issued by the dends. Many of our large corporations now make a practice of thus enDepartment of Economics and Social Institutions, Princeton University, larging their capitalization at regular intervals.
shows that the Federation Bank and Trust Company has achieved the disThe position of the investment trust in relation to the stock market, in
tinction of being the strongest of its kind.
the last analysis, is identical with that of any other purchaser of stocks.
There is no more reason to deduce a wave of rising security prices in the
one case than in the other. If prices for certain stocks rise, they will
as a check on further purchases of these stocks, whether
W. I. Throckmorton of American Trustee Share Corp. inevitablyor act
through the medium of the investment trust. H these stocks
directly
oration Criticizes New York Attorney-General's ceased to be attractive, by reason of high prices and low yields, the
unit issue type of investment trust, in which these stocks are included,
Report on Investment Trusts.
would likewise cease to be attractive to purchasers. The investment trust
4,
Dec.
public
made
letter
a
in
on,
W. Irving Throckmort
shares then would not be purchased in any great amount until prices of the
takes issue with Attorney-General Ottinger of New York stocks in question returned to a more attractive level and, in the meantime,
trusts which might be formed would not be
on the question of the propriety of fixed or limited manage- new unit issue investment
in their portfolios. All this is predicated
stocks
such
include
to
inclined
ment investment trusts. The report was referred to in our on the plain economic law of supply and demand.
A simple problem in arithmetic will show how far removed is the
Issue of Nov. 26, page 2884. Mr. Throckmorton is Presithat investment trusts might materially influence the supply
dent of the American Trustee Share Corporation, which, possibilityExchange
Securities. Five shares of United States Steel, to cite
of Stock
is
report,
eneral's
Attorney-G
the
of
according to the figures
a specific example, are deposited for each 1,000 Diversified Trustee Shares.
some 7,116,235 shares
the largest investment trust of the fixed or limited manage- The capitalization of United States Steel.includes Steel
could be effected,
Before a corner in United States
stock.
common
of
that
criticism
the
also
makes
ton
Throckmor
ment type. Mr.
would have to be approximately one and one-half billion shares of
there
the personnel of the committee whiclpaided in the Attorney- Diversified Trustee Shares outstanding—a result so far from fact or
General's investigation is not representative of the Amer- expectation as to be not even worthy of consideration.
Again, to Quote from various paragraphs in the report:
ican investment trust movement. "We find among these," (d)
of the fund
"Published information does not reveal what profit the promoters
made on the original price they paid on the securities deposited. This
he says, "several names of organizers or sponsors of dis- may have element
cases."
some
in
been
sizable
have
may
profit
of
additional
the making of
cretionary trusts but not the name of a single organizer or
"There is inadequate protection for certificate holders against trust
fund at a
into the
by the depositor corporation by putting securities
corporation."
sponsor of fixed or limited management trusts. Unfortu- Profits
depositor
the
to
cost
higher price than these securities
corporations are empowered to place securities in
depositor
most
tha
fact
"The
the
represent
not
does
adequately
on
nately the investigati
costs of such seeurithe trust fund at current market prices regardless of the earlier as
form of investment trust fund available a means leash,
situation with respect to the fixed or limited management tl *has made the rigidbought
earlier at lower prices."
disposing of securities
trusts. Activity of these trusts has not influenced stock
In line with established financial practice, shares of a properly conmarket prices materially," according to Mr. Throckmorton, ducted fixed investment trust are sold on a "when issued" basis; the
whose letter we give in full herewith:
shares are issued after the sale is actually confirmed to the purchaser.
shares,
Whenever and as often as these confirmations aggregate 1,000
N
of the
AMERICAN TRUSTEE SHARE CORPORATIO
the depositor corporation goes out into the market, buys a unit
dividends,
accrued
165 Broadway, New York City
common stocks, and deposits these stocks, together with
Nov. 30 1927.
with the trustee. The trustee then issues and delivers to the depositor
process
corporation certificates in the denomination required. The whole
Hon. Albert Ottinger,
may take a day or two days. The depositor corporation has no further
Attorney-General of the State of New York,
sales
connection with the stocks deposited or the shares issued. Until
Bureau of Securities,
aggregating 1,000 shares are confirmed, the depositor corporation pur74 Trinity Place,
trust
the
certificates,
chases none of the stocks, nor does it own any of
New York City.
other than small amounts required to be carried in the ordinary course
Dear Sir:
We have examined the report issued by you in connection with your of business.
The depositor corporation, therefore, is not interested in any profits
investigation of investment trusts. The legislation recommended by you
To suggest
appears to us to be ably formulated and to be in entire accord with the needs which might be made from "taking a position" in the market.
that profits from this source could be made with any reasonable certainty,
of the situation.
it nor
neither
which
The influence of your report on public opinion will be widespread and would be to credit the depositor with an omniscience
to make such
in many respects beneficial. We respectfully desire to call your attention, any other body possesses. If, however, its purpose were
trust business
however, to certain features in which the report, in our opinion, is in error, profits, it would do better by staying out of the investment
reward
altogether and engaging in pool operations, where the prospects of
and which we believe should be amended.
(a) The preface to the report names individuals who have aided in the investiga- are greater.
tion. We find among these several names of organizers or sponsors of discretionary
Profit is derived solely from the differential between price of the shares
trusts but not a single name of an organizer or sponsor of fixed or limited management and market value of deposited collateral, including accrued dividends.
trusts. The investigation, therefore, does not adequately represent the situation
No business man begrudges a fair profit to the manufacturer. The funcwith respect to the fixed or limited management trusts.
(b) To quote from the report:
tion of the depositor corporation closely corresponds to that of the manu"There is a Question in our mind as to the advisability on the part of the investor facturer. In its case, the raw materials are stocks and the finished
of purchasing securities in a trust which is of the fixed or practically fixed type.
from the stocks of which it
at least in the final stages of a bull market, due to the fact that if such securities are product is the trust certificate—as distinct
shoes
purchased at a time that the security prices of the market are high, the value of the is comprised as a suit of clothes is distinct from cloth, or a pair of
the
may
be
and
investor
to
decline
powerless
at
prevent
to
trust certificates Is likely
from
leather.
least a temporary substantial loss to himself."
As a matter of fact, the stated differential between value of collateral
We do not think that the intention of the Attorney-General's office and price of the certificates, representing theoretical gross profits, is
is to advise the investor concerning the proper time at which securities seldom realized in practice. The price of the shares is determined at
should be bought, but such intention would seem to be the inference from the close of the market each afternoon, and purchasers are protected at
the above paragraph.
that price during the next day, but before the shares can be issued, the
The statement that "the value of trust certificates (or any other se- prices of stocks frequently advance. The actual cost of the collateral is
curity) is likely to decline" carries no novelty. Even United States Gov- generally greater than the theoretical cost, on which the prim of the
ernment bonds not long ago declined sharply and were selling in the shares is determined, because days of advancing stock prices occur on the
80s. The important question is not concerning the fluctuations which average at least twice as often as days of declining prices—a fact which
Inevitably take place in the price of any security but concerning the is borne out by statistical data.
Inherent soundness of the seeurity. The investor in shares of a fixed or
(e) The report states:
unit issue investment trust knows that the price of his security will
"The freedom which most indentures allow to the depositor corporation to act 811
fluctuate with the prices of the stocks represented thereby, but he buys principal In the sale of securities to the trust fund at an advance over the cost
the
Federation Bank & Trust Co., in calling attention to
follows:
as
progress
own
its
depicts
above,
1. Opened May 1923 with capital and surplus of $500,000.
to $1,500,000.
3578
T H141 CHRONICLE
(VOL. 125.
Introduces another possible source of profit which is less obvious to the uninitiated.
This takes the form of profit upon the sales of securities In the trust fund and Gurden Edwards on the Investment
Trust, America's
repurchase of new securities to take their place. The report also makes the suggesNew Financial Phenomenon.
tion that the agreement under which investment trust certificates are issued should
provide that the company will not deal with Itself, its officers or its directors in
An article from the pen of Gurden Edwards, Director of
making purchases or sales of securities for the account of the Investment fund. It
states that there is no prohibition against profit from this source in the Indenture of
Publicity of the American Bankers' Association, in which
American Trustee Share Corp., among others."
The foregoing statements should be made to refer only to management he discusses "America's New Financial Phenomenon"—the
investment trusts, in which case the provision suggested is obviously Investment Trust—appeared in the October number of the
desirable. The provision, however, would be superfluous in the case Association's Journal. Mr. Edwards in his
discussion states
of American Trustee Share Corporation, since this corporation is not empowered in any way to undertake any transaction involving the sale of that "the rapidity of the present investment trust movement in the United States, the fact that it has not yet been
stocks and the purchase of new securities to take their place.
(f) The report states further:
seasoned by varying economic conditions, but has flour"There Is no protection to the public In most trust agreements or Indentures of
the quasi-rigid type against an unwarranted spread between the market value of ished wholly under virtually hothouse nurture, and the
Securities deposited in the unit and the price at which the participating issues are
complete lack of standards in forms and methods for this
ereated and issued to the public."
According to the information published by you, the differential between sort of financial mechanism undoubtedly present a serious
price of certificates and the cost of collateral in the case of Diversified public problem. Although doubtless many investment trusts
'Trustee Shares, 8%%, is the lowest recorded for any fixed or limited now operating
are sound and well run above all question,
management investment trust. In the case of Diversified 'Trustee Shares
there is no secret made of the differential, and that differential is in effect yet no one can yet say what type of organism is best calcuguaranteed by agreement with investment houses handling the shares lated to function satisfactorily through a complete business
throughout the country. • It is open to question whether the differential cycle
In the United States." In his article Mr. Edwards
Ought to be included in the Agreement under which investment trust
shares are issued. In the case of Diversified 'Trustee Shares, the dif- also says:
After several years of a long drawn out bull market that has carried the
ferential has been reduced as a result of volume distribution and a binding
prices of many securities to record heights, there has suddenly become
provision would have' prevented this reduction.
conspicuous a feverish activity in the organization of investment trusts
•(g) The report states:
"In many indentures insufficient provisions are found for assuringran acceptable In the United States as a special facility for enabling small investors
necessor trustee In case the existing trustee resigns or Is removed.",
to participate in security market activities on a safer basis than they could
We believe that American Trustee Share Corporation stands as a model do going it alone.
The investment trust may be described as an investment pool, organized
to this regard. Under its indenture, the trustee cannot be discharged
from office by the depositor corporation. If the trustee were to resign, on a more extensive and formal basis than ordinarily characterizes the
the successor trustee .to be appointed must meet with the approval of private investment groups sometimes formed among the clients of investment and stock exchange houses. The basic idea is that in union of their
fielders of a majority of the shares outstanding.
We note with interest that among investment trusts of the fixed or security market venturings there is strength. The combined volume of
small individual sums into one large unit of buying power renders
many
limited management type, American Trustee Share Corporation, which provides for the issue of Diversified Trustee Shares, is, according to your possible the purchase of a widely selected body of securities so that all
published figures,. the largest. In value of securities outstanding, it ap- participants enjoy equably the resulting benefits of diversified investment.
proaches the total for all other fixed or limited management investment Such a joint effort, also, is of sufficient financial importance to command
trusts. 'American Trustee Share Corporation, moreover, ranks among the - the services of expert trustee management in the selection of the invest..six largest investment trusts of all types (excluding financing or holding ments and the handling of the enterprise for the beet interests of the
participants.
comPanies).
A New One Each Week.
,
Yours very truly,
Up until the early part of the year there were about fifty publicly reAMERICAN TRUSTEE SHARE CORPORATION,
corded organizations of the general investment trust denomination operat(Signed) W. IRVING THROCKMORTON, President.
ing in this country. Most of them were formed since 1921. In the last
five or six months snore than fifty more of these enterprises have been
organized, thus increasing the six year list by over 100% in six months.
More recently the pace has been particularly hot and
a week has
Cheney Legislative Committee Declines to Take Action passed but what the metropolitan press has carried one scarcely
or more conspicuous
on Proposal of New York State Attorney-General announcements of the launching of a new investment trust. It is estimated
that there are now considerably over a hundred of these organizations rd!
For Legislation to Regulate Investment Trusts.
told, not including an indeterminate number of strictly private projects,
According to the New York "Journal of Commerce" of and that they have gained control through selling their various security
issues to the public, of investors' funds to an amount in excess of $500,Nov.29 the Joint Legislative Committee on Banking Invest- 000,000.
Their authorized.capital is placed
above a' billion dollars and
ments on Nov. 28 refused to take action on the proposals they are fast expanding their operations underatthis
power through the issue
of Timothy J. Shea, deputy attorney general in charge of additional securities.
In
general
there
are
four
main
types
these
of
organizations from the
of the Bureau of Securities, for a new law governing investlegal structure point of view. The aim of all of them is to obtain funds
ment trusts operating in New York State. Mr. Shea
had for joint investment. One type is the incorporated investment trust,
,sought to get the Cheney-Campbell committee to sponsor obtaining its funds through the issue of debentures, bonds, preferred stock
his proposed legislation. The item which we quote, reports and common stock of various descriptions and administered by a discretionary management under supervision of a board of directors. Secondly,
further as follows:
there is the common law or Massachusetts type of trust managed by trustees or a fiscal agent and issuing participating certificates or shares in
Mr. Shea personally appeared before the Joint
Committee
the end of the hearing held on Savings Bank Investment at yesterday at its portfolio, analogous to stocks, in addition to its evidences of debt.
the Bar Asso- Thirdly, there is the common law type
of trust managed by a stock comciation Building and urged it to consider the investment trust
fully. He pointed out that his report on the subject, nowsituation care- pany which participates in its earnings or obtains a fixed fee for manageavailable for ment
public distribution, had been carefully compiled and represented
as far as
The Trustee Share Type.
could possibly be secured an accurate picture of the current state
of affairs.
Nelson W. Cheney, member of the State Assembly, who Is
Finally, there is the banker's share or trustee share type of organization
Chairman
of
the Joint Investigating Committee, pointed out that the enabling
which, unlike the first three types, does not permit discretionary managelegislation
under which the Joint committee operated contained no authorization
ment of the investment portfolio but merely supervises the purchase of a
for
It to enter the investment trust field. Senator W. W. Campbell
specified
and more or less fixed group of securities which are deposited
was even
stronger in his arguments against the entry of the committee
into this with a corporate trustee and against which participating shares or cersubject.
tificates of beneficial interest in small denominations are sold to the
Mr. Shea contented himself with pointing out that the individual
mem- general public. Ordinarily the original list of investments is unchangebers of the committee. both Assemblymen and Senators, should
carefully able throughout the life of the trust except through technical alterations
study his report so that, when the Assembly opeas on the first of the
In the capital' structure of corporations whose securities are comprised in
they would be in a position to press for legislation in the investment year, the underlying portfolio. Its success depends on the wisdom of
the first
trust
field. He urged that the Banking Department be given jurisdiction
over selection, not on skillful subsequent trading. Its profits are expected to
this field, in accordance with his proposals, with the least
possible delay. arise wholly from interest, dividends and capital appreciation. The other
Mr. Shea had copies of his report distributed to the legislators
three types add trading profits to these.
present.
It had been expected here that the Joint Committee on Banking
There are three chief ways in which the individual investor can place
Investments would hold hearings at which testimony could be taken on
the in- his money in investment trusts. One is through the purchase of their
vestment trust legislation proposed by the Attorney General before
theLeg- debentures, bonds, or other evidences of debt. The second is through the
!filature convened,so that a mass of Information and testimony could
be pre- purchase of preferred shares which are ordinarily on a 6% cumulative
sented to the latter for early action. This expectation has been
disappointed basis and are senior to common stock issues as to interest and principal,
by the refusal of Mr. Cheney or Mr. Campbell to act.
but are without voting power except under certain contingencies of deAs the regulation of investment trusts constitutes a now and
difficult faulted dividends. The third is through the purchase of the common
legal venture, it is not believed that a law would be passed without
careful share issues which have voting power and full participation in distributed
discussion and preparation. For this reason, a delay of several months
at and accrued profits. These three classes of investment trust seecurities
least is now certain.
are issued in numerous variations to adapt them to special features of
Mr. Shea has already stated that the office of the Attorney
General will corporate or common law organization, but these differenres are matters
take no further action with regard to investment trusts. He feels that his of detail rather than of essential
importance. In the operation of investreport represents the logical conclusion of his efforts, and that it remains ment trusts the capital funds
obtain from the public through these three
for the Legislature to carry the matter to a conclusion. However, he will chief channels are used
to set up portfolios of stocks or bonds which thus
bend every effort to bring the matter before the attention of the legislators in become underlying assets
to the investment trust's own securities.
Albany.
Although the foregoing sketches in general terms the main common
It is understood here that several investment trusts are reorganizing characteristics
of investment trusts the comalete lack of standard methods
their affairs in accordance with the code of practice indicated in the At- and of agreemtait
in theory among; them as to the best way to carry out
torney General's report. Also, a number of companies are contemplating their aim renders
impossible any detailed description of general applicawithdrawing from the investment trust field and adopting some other desig- tion. It is
safe to say that no two investment trusts operating in the
nation rather than conform to the standards set down, which they claim United
States to-day are entirely similar and this lack of standard pracconstitute a hindrance to their operation.
tice is one of the conspicuous features of the present stage of the moveThe recornmendations'of the State Attorney.General's ment. It is too young in this country as yet to have developed a normal
as has been the case in England. Many features of the American inDepartment were noted in these columns Nov. 26, page form
vestment trusts are derived from British practice, but also many special,
1. 884.
and experimental, features have been added in this country.
DEC. 31 19271
THE CHRONICLE
are the differences of
The most important aspects of this variation
policies. The widest split
opinion in respect to fundamental investment
management
discretionary
on this point is that presented as between the
model, and the fixed porttrust, which in the main follows the British
the American form.
folio or bankers' share organization, sometimes called
3579
the quesAs a result of such untoward circumstances an investigation by
of the office
tionnaire method has been undertaken by the Securities Bureau
domtrusts
those
into
State
of the Attorney General of New York
questioniciled or selling their securities within its jurisdiction. This
organization
naire seeks to obtain full information concerning the
its methods
and activities of each investment trusted addressed, such as
or other monetary
of obtaining funds from the public, the salaried
concorporations
or
interests of individuals or financial organizations
names, prices
nected with the operations of the trust, and the nature,
portfolio. The
and underwriters of all securities comprising the trust
auditing employed
inquiry further seeks information as to the methods of
or other financial
by the trust, its relations with security brokers, dealers
these relationships
houses trading in securities, and the terms upon which
any indiwhether
disclose
to
are maintained. It is particularly sought
trust or in an
viduals connected with the management of an investment
direct or indirect
advisory capacity in regard to its investments have any
purchased for Its
interest in any outside enterprises whose securities are
How the Two Operate.
investors' interests are
The first class operates on the theory that the
not only full power of
best served by giving the managers of the funds
but also of trading
selection in building up the initial list of investments
in order to realize
in and out as market conditions dictate their judgment
funds thus revolve
profits or avoid losses on securities purchased. The
trusts of
Investment
through a continuous turnover and reinvestment.
managers down
this type range from complete freedom of action for their
discretion.
to closely litnite.d lines of action circumscribing their
with some leeThe fixed share type—rigidly fixed in some cases, but
all discretion from
way under very special conditions in others—withhold
of securities. portfolio.
their managements beyond the selection of the original list
Lived in a Favorable Market.
sold to the
It is a definite participation in this particular list which is
distributable profits
which conpublic through certificates of beneficial interest. The
Another phase of the investment trust situation in regard to
underlying
orquestioning has developed involves the expediency of the
are expected to be derived from the revenue income on the
siderable
While
after
securities and the sale of rights or other special distributions.
ganization of so large a body of institutional investors of this type
be
not
capital or market appreciation of the underlying securities can
prolonged bull market has had the effect of raising the prices of stocks
partici- a
that suecess so
realized through sale, these values are ordinarily reflected in the
and bonds to admittedly high levels. It seems undoubted
indb
the
that
so
provided
is
market
a
pating certificates and frequently
materially dependent upon the circumstance that they have
been
has
far
well.
vidual investor by selling his trust shares can obtain these profits as
their entire lives in a favorable market movement. At
the all spent virtually
have not been
Under this rigid portfolio plan, however, no mechanism is provided in
least their financial structures and management policies
speaking,
securities
trust itself for taking advantage of such profits or, generally
subjected to the test of evil days in a major decline in the
depresuffer
securities
for avoiding capital losses in case the underlying
markets.
been an
not
have
years
ciation.
Some of them frankly admit that the last two
instituThe lass of Securities.
ideal time for launching organizations of this sort and building up
hold.
tional investment lists, but that substantial investments for long time
fundamental
to
as
differ
trusts
the
which
in
aspect
general
Another
express this
their log should be made only in periods of depression. Those that
investment policies is in respect to the class of securities in which
their conservative
investments view also hasten to point out that, as for themselves,
organic provisions permit them to invest. Some restrict their
It is asserted
go in policies and reserve provisions will see them safely through.
virtually wholly to bonds. Others go in chiefly for stocks. Some
sales
of securities in
permit
policies
unless flexible management
that
some
whi:e
securities,
foreign
in
only
invest
will
for both. Again others
might
in other portfolio, either to realize present profits or avoid losses that
are interested mainly in domestic issues with limited investment
been set up,
over as great threaten to develop, or unless ample liquid reserves have
countries. Still again some seek to scatter their investments
them- investment trusts are poorly fortified against adverse security conditions.
a variety of sources and enterprises as possible, while others confine
Comparison is made by those who are inclined to find some causes for
special
selves to a single line, such as bank stocks, insurance shares or
in the present investment trust movement in the United Statse
concern
lines of industry.
and
amount of with past historic experience in Great Britain, where between 1886
the
to
respect
in
is
difference
of
field
important
Another
out 1895 a large group of investment trusts was developed under conditions
information investment trusts as a matter of policy permit to coine
type, of easy money and attractive investment opportunities. Favorable circumregarding their operations. Of course, in the case of the fixed share
stances and lack of experience resulted in practices that afterward brought
the investment list in which the subscribers' money is placed is a definite
disaster. These practices were along the lines of effort on the part of
conon
concretely
this
of
basis
the
on
is
it
matter of public record, since
trust promoters to show big returns, of lax and obscure accountthe
investment
In
made.
is
money
investors'
the
for
appeal
the
that
structed list
of ancy methods in regard to earnings, of the use of subsidiary or controlled
case of the discretionary management trusts, however. a wide scope
their investment trusts by houses of original issue for unloading upon their
diversity in respect to publicity exists. Where some will publish
portfolios underwritings which they had been unable to distribute to the
list of investments periodically and will freely give infomiation to their
public, of purchases of good securities at inflated prices and of
subscribers upon request regarding their holdings at any time, others not general
proper diversification in investments. Within a few years when
of
to
lack
a
refuse
also
but
lists
investment
their
publishing
only refrain from
conditions changed the majority of these original investment
market
funds
their
which
in
securities
the
to
as
subscribers
own
their
acquaint
severe difficulties and great public loss resulted, but later,
are participating. They will merely indicate in some cases the general trusts suffered
lessons of that episode, the investment trust movement
lines along which they are operating in accordance with their trust agree- profiting by the
on a more conservative and better informed basis and
ment or articles of incorporation, but in extreme instances the enterprise was re-established
prosperous ever since, even through periods of
is frankly a blind pool. As long as the subscriber gets his profits, he is has been generally
depression.
transactions.
detailed
the
about
bother
to
not expected
The rapidity of the present investment trust movement in the United
Still another important field of difference is in respect to the accountit has not yet been seasoned by varying economic
ability and control of the management of investment trusts. In some States, the fact that
wholly under virtually hothouse nurture,
cases, investment trusts are directed by self-perpetuating boards of trusters conditions but has flourished
standards in forms and tnetehods for this sort
or by directors elected through closely held common stock issues with sole and the complete lack of
present a serious public problem.
voting powers. These bodies sometimes control the destinies of the organ- of financial mechanism undoubtedly
trusts now operating are sound and
ization under normal conditions without responsibility to the general body Although doubtless many investment
no one can yet say what type of organism
of its security owners. It frequently happens that this narrow control is well run above all question, yet
through a complete business
entirely under the domination of a single investment house or group of is best calculated to function satisfactorily
such houses of original issue. Other investment trusts make a point of cycle in the United States.
the fact that theey are independent of such special control and even go to
A Matter of Concern to Banks.
the extent of providing means by which the shareholders themselves can
interested in this movement, not only because
particularly
are
Bankers
in
the
keep watch and even in a measure control over investment policies
control of large volumes of funds in the bands of these new
trust through voting powers adhering to all stock issues and through the it is placing
tried organizations, but also because they are universally
appointment of special investment or auditing committees chosen from and not always
enlisting banks and trust companies to serve as corporate trustees for their
among the general body of stockholders.
prominently using their names in their promotion literaWhile there arc these many points of difference among investment portfolios and are
evidence of good repute, although the banks so employed
trusts in America there are some points on which they agree.. They almost ture as implied
restricted to purely mechanical functions without direct
universally avoid acquiring controlling interests or managerial entangle- are ordinarily
the operations and policies of the trusts themselves.
ments in respect to the corporations in whose securities they invest their responsibility for
Investment trusts to-day are withcut public supervision other than is
funds. They refrain also from participating in underwritings or other
business laws. Their affairs are not subject to
financing activities. It is the consistent practice, also, to trustee their provided in the general
supervision as are the banks. It is apparent that
portfolios with banks and trust companies under agreements aiming to specific examination and
conception is sound and that there is a real
protect subscribers' interests in them. Also the enjoyment of a large the basic investment trust
United States. It is also apparent that
measure of prosperity has been the common experience of these investment place for their services in the
for serious errors and abuses in their
possibilities
special
trusts to date so far as they have been in existence long enough to nave there are many
organization and iperation. Several bankers familiar with these projects
had any experience
of the movement within proper bounds, but
In fact, the earnings and prospects of the investment trusts have been have expressed their approval
that the nature of their activities calls for
rather brilliant so far. Some of them conservatively represent themselves they also express the belief
conducted by the Attorney General of New
merely as being able to earn a better than average yield for the individual the investigation now being
some form of public supervision.
investor than lie could expect to obtain with comparable safety operating York State and also for
alone, but others go so far as to indicate that annual earnings for their
invested capital are from 10% to 20%, not including anticipated enhancement in share values that the investor can confidently look forward to Investigation By Office of New Jersey Attorney General
through appreciations in the underlying securities in which his funds
into Investment Trusts.
will be invested. One enthusiastic enterprise says in its sales promotion
It was recently made known that the Division of Securiliterature that a certain investment trust organized in 1921 is now yielding
40% per annum on an original investment in its common shares which ties of the New Jersey Attorney General's office had instiIt deelares have increased over 500% in value during the last three years.
As a general rule investment trusts do not make outright claim to such tuted an inquiry into investment trusts with a view to
speculative profits as this but for the most part they are promising, by recommending legislation for the safeguarding of the public
Implication at least, 10% to 15% yields for their investors.
in the investment trust field. In furtherance of the inNaturally the wide differences in practice, theory and results which are
manifest in the investment trust field to-day have given rise to consider- quiry, it is stated, questionnaires were forwarded to all
able discussion and esen controversy as to the merits of the various con- known investment trusts operating in New Jersey. A stateflicting views. In fact, because of the sharpness of these conflicts in some
directions, there have arisen charges that some trusts now seeking public ment issued on Nov. 25 by the Division said:
"The investment trust, because of the newness of the idea in this counfinancial support are unsoundly constructed or improperly administered.
Considerable zest has been added to these complaints by the secretive try within the past few years, is not surrounded with the same protective
methods of some trusts, by the maintenance of close control by houses restrictions as other forms of investment and can easily be abused in
supposedly more interested in selling securities sponsored by themselves the hands of incompetent, inexperienced and unscrupulous persons.
"The investment trust is a safe and sound form of investment if
than in rendering fiduciary-like services to the public and by the discovery
that the ;loving spirit in one investment trust organization was an ex- properly used and the prospective purchaser should pay particular attena
serving
for
sentence
using the mail in a tion to the character, integrity, responsibility, experience and qualiconvict recently released from
fications of the personnel of the management of the trust to whom he
scheme to defraud.
3580
THE CHRONICLE
[VOL. 125.
intrusts the handling of his funds. Success or failure of an investment trust
Is more closely allied to these factors than any other.
"An important item for the respective investor to check Is the amount
of common stock issued to the organizers. All income increases and all
appreciation must be reflected in the common stock, and if the investor receives only a small percentage of the common for his capital he will
share on a relatively diminished scale in the profits and appreciation of
the investment trust.
"Investment trusts vary widely in character and in methods of operation. Some of these trusts are openly speculative, investing in various
stocks for quick market turns, and others place their funds only in
bonds and high grade investment stocks. The rates of returns paid to
investors in investment trust certificates and stock vary widely. The
attention of the investing public is particularly called to the operations
of 'blind pools' in some of the latest entrants in this form of securities.
"A study of the operations of investment trusts presents a number of
problems of which we are making a study for the purposes of formulating
a policy on the matters that come within our jurisdiction. The question of
the necessity for legislation concerning the organization and operation
of investment trusts will also be considered by this division."
praisals of liquidation value made within the organization by members
of the staff having no access to cost sheets. This kind of institutional
appraisal is made monthly by International Securities Corporation of
America, Second International Securities Corporation and American
Founders Trust for the information of their officers and respective
boards of trustees.
"Among British investment trusts the balance sheet figure for security
holdings is frequently substantially less than cost, owing to the contingent funds, which a era species of invisible reserve. Contingent
funds are appropriations from cash earnings which do not appear as
reserves in the balance sheet, but are nevertheless set aside in the form
of earning assets. From the accounting viewpoint those deductions
from income, which are quite apart from appropriations to reserve or
from the undivided profits, are used to reduce proportionately the cost
figures at which investments would otherwise stand in the balance sheet
"The British practice of using profits made on investment turnover
for the purpose of writing down the cost of investments creates two
complications from the accounting point of view. One is that the figure
at which investments stand in the balance sheets is a purely
arbitrary
amount, not directly related with either cost or market. The other is
that British investment truss in connection with their habitual policy
of employing profits realized on turnover to create invisible reserves,
Committees of New Jersey Chamber of Commerce Reports fail to disclose these cash profits in their audited
income statements,
thus
making impossible an accurate knowledge of all sources of their
on Investment Trusts—Disclosure of Holdings
current earnings and rendering satisfactory comparisons from year to
Held Harmful.
year and from trust to trust most difficult.
"For several reasons, including the fact that American investment
In a recent report on investment trusts, a committee of
trusts
under Federal law are required to declare and pay taxes upon
the New Jersey Chamber of Commerce decided not to apinvestment profits as well as other sources of cash income, those comprove legislation, concluding "that holding companies are panies follow the customary accounting practice
in the United States
of such antiquity in New Jersey and that their functions and of including investment profits, when taken, in the income statement
Unrealized,
or
appreciation
book
pure
should
not,
of course, be calcupowers are so well established and recognized that any legislated as income."
lation aimed to secure disclosures of their holdings may
have harmful effects which cannot be foreseen at the time
such legislation is passed."
The committee also concluded that such legislation would
be useless because the information would be antiquated before it became public, competitors might be furnished trade
secrets and dishonest organizations could use supposed supervision as a selling point. This is learned from the
Newark "News" of Nov. 14, which in its reference to the
report also stated:
Recognition of cause for public caution about investment trusts was
given today by the Investors' Protective Committee of the Chamber of
Commerce, which published a report on what it terms "this type of bankMg that is experiencing mushroom growth in Northern New Jersey."
The committee declared: "Prospective purchasers of stock in investment trust companies are urged to base their decisions to buy upon the
known integrity and ability of the officers and directors of the company
rather than upon promises of lucrative returns."
Legislation to regulate investment trusts was considered, but the committee decided further laws would only confuse and that such propositions
should be opposed. The committee urged that the Attorney General's department pay particular attention to the growth and variety of the
trusts and recommended that the Legislature vote additional funds, if
needed.
Richard 0. Plumer, Assistant Attorney General in charge of the enforcement of the State Securities Act, was especially asked to note the
development. Mr. Plumer has been devoting much time to the subject.
The committee did not condemn legitimate investment trusts. It reminded that misconceptions might arise because of the success of similar
trusts in England and Scotland, but said that this had little or nothing
to do with some companies here because of differences in form and
purport.
The committee is composed of Robert Campbell, Chairman; Paul O.
Downing, Carl Egner, Charles D. Brady, Van Dyk MacBride, Albert H.
Marckwald, Frank E. Quinby, Milo W. Wilder Jr., Julius S. Rippel and
Morrison C. Colyer.
A distinction between investment trusts and holding companies was
made by the committee. It reminded that it is a fundamental of true
Investment trusts that they assume no responsibility for the management
of corporations.
Some of the practices disapproved by the chamber ccenmittee are withholding of information as to compensation of management, wording of
statements to indicate certainty of return, unloading on the trust of
issues held by managers, turning in of issues at excessive prices and "playing the market."
Operations of Investment Trusts Explained by Leland Rex
Robinson of Second International Securities Corporation.
Leland Rex Robinson, president of the Second International Securities Corporation, discussed problems of
Investment trust accounting and administration before
the New Jersey Society of Certified Public Accountants
at its annual meeting in Newark on Nov. 29. "The general
investment trusts," he said, "derive their cash income
from three chief sources—interest, dividends and profits
made on changing investments. Profits from turnover,
although often very considerable, are generally of secondary importance as compared with the dividend and interest yield.
Diversification of a trust's investments
makes this yield reasonably dependable, and perhaps in
the majority of investment trusts it is alone sufficient to
meet all ordinary charges of administration and to net
a fair return to the bond and shareholders." Mr. Robinson added:
"Frequently valuations of the holdings are, nevertheless,
advisable.
In addition to the market inventory made at annual or
intervals by the auditors, the practice commends itself of semi-annual
periodical ap-
Recommendations of Business Men's Commission on
Agriculture—Creation of Federal Farm Board to
Assist in Stabilization of Farm Prices and Production Among Proposals.
Gradual tariff adjustment, to equalize more nearly the
benefits of the protective tariff system as between agriculture and the manufacturing industry; the creation of a
Federal Farm Board to assist in the stabilization of farm
prices and production; a comprehensive land utilization
policy to be administered through an endowed "National
Agricultural Foundation"; a revision of State and local
tax systems; strengthening of the rural banking system,
and revision of railroad rates on farm products and development of waterway systems are among the chief recommendations of the Business Men's Commission on Agriculture. The Commission rejects legislation of the Mc-NaryHaugen type as injurious to the long run interests of agriculture, and as setting a dangerous precedent. The findings and recommendations of the Commission, which were
made public on Nov. 12 by the Chairman, Charles Nagel,
at the Commission's headquarters at 247 Park Avenue, New
York, N. Y., are the result of a year's study of agricultural
conditions and trends. The Commission was created about
a year ago by the National Industrial Conference Board
and the Chamber of Commerce of the United States jointly,
but its findings, according to Mr. Nagel, are its own and
were arrived at independently of either the Conference
Board or the National Chamber. Chairman Nagel's statement in behalf of the Business Men's Commission on Agriculture follows:
"Serious and careful consideration of the agricultural situation makes
It clear that in relation to it the United States is confronted with
a
question of fundamental national concern and of permanent importance
to the American people.
"The evidence is clear that American agriculture has undergone
a
prolonged and trying readjustment to post-war conditions, in
the course
of which those engaged in it have suffered seriously in their
relative
economic prosperity in comparison with those engaged in
other fields.
On the human side, it has been deprived of the energy, experience
and
knowledge of many thousands of farmers who have lost their
resources
and have been persuaded or compelled to leave the farm for
other
occupations, while the land resources of the nation have been
impaired
by neglect and wasteful exploitation under the pressure to
which those
who remained on the farm have been subjected.
• "Agriculture in this country also appears to be subject
to certain deeplying ills which time alone can not safely be relied upon
to cure but
may even accentuate. There is evidence that real as well as
money costs
;n the industry are rising; that we are not keeping our old
superiority
over competitors; that the fertility of the land is being
impaired; that
erosion is insidiously and constantly carrying away a layer
of irreplaceable surface soil not only from the hillsides but
over practically
the whole area devoted to ploughed crops; that many if not
most farmers
are year after year failing to secure a return equivalent
to that which
can be obtained in the city by workers of no greater ability,
that the
comparative advantage of other industries is rapidly increasing;
that
the obstacles to the extension of markets for farm products
are growing
more effective; that the difficulties of improving the
organization and
methods of agriculture are increasing; that the year by year
fluctuations
In the prices of farm commodities are growing ever more
severe and
are increasing the hazard under which the farmer carried on
his occupations; that tenancy is increasing; and that the quality of
the farm
population b undergoing a progressive deterioration.
"Our national policies in respect to industry, trade and
international
relations all have a profound bearing on the agricultural problem.
But
the aim in agricultural policies should have in view such
improvement
in the economic position of the farmer as is consistent with
the wisest
utilization of our land resoureas and the development of types of
farmers
DEC. 31 1927.]
THE CHRONICLE
3581
subject to the temptation of securing higher
greater farm prosperity but such large cooperatives,
and of rural life which will snake not only for
unsound control of the supply, where they apply presan
through
prices
whole.
a
as
nation
the
production, experience a great deal
for the long-time social and political welfar3 of
in this way cannot sure on their members to restrict
members to bear
"A sound national agricultural policy conceived
n of desertion among members, leaving the remaining
participatio
active
requires
but
alone,
action
equal benefits.
rest upon governmental
as well as that all costs while non-members secure
groups
economic
other
of
and
farmers
effiency of the
of
highest
and cooperation
"(5) A balanced agricultural production, the
The putting into
of local, State and Federal governmental authorities. of gradual develop- agricultural industry, sustained prosperity of the farmer and the presermatter
execution of such a policy necessarily will be a
resources can be attained only through a
of any individual or vation of the nation's natural
ment and cannot spring complete from the brain
planned policy of land utilization.
carefully
following
the
proposes
Commission
the
that
pastures as
group. It is in this spirit
"A large reduction of crop acreage in favor of improved
of American agriinterest of agriculture and in
suggestions as to ways in which the economic position
gradual develop- well as forest land is desirable in the
probforest
The
.
generations
culture may be improved and a basis provided for the
keeping with the requirements of coming
ment of a comprehensive national agricultural policy.
rapid action on a large scale and we shall be
requires
especially
lem
nearly
more
made
be
should
efforts
"(1) The Commission believes that
a veritable revolution in the point
ing irdustry, such compelled within a few years to effect
land for forests.
to equalize, as between agriculture and manufactur
Pro- of view and the methods involved in the utilization of
both.
to
afford
can
system
tariff
protective
ive land
existing
benefits as the
A national prerequisite to the introduction of a comprehens
in the way of
future requireand
present
tective policies which tend to place artificial obstacles
on of the
determinati
the
is
policy
utilization
products
farm
natural and normal extension of markets for American
types of land. Land classification,
production should ments of the population for the several
only
and which tend to increase the domestic costs of their
the Commission believes, can be successfully undertaken
their
however,
equalizing
to
view
a
with
tion
reconsidera
Government, State
be subjected to careful
by an agency entirely independent from the Federal
or local character,
effects.
improved if governments and all business interests of regional
"The economic position of agriculture would obviously be
well as the vast private
find markets because of the political considerations involved as
farmers could secure higher prices for their products, or
costs of produc- business interests affected.
independent
for anomre of them at prevailing prices, or reduce their
"The Commission therefore proposes the creation of an
and the
on
tion. It is recognized that the reduction of costs of production
n endowed with adequate funds to undertake the classificati
process
organizatio
difficult
and
slow
a
necessarily
is
markets
extension of agricultural
plan for land
action of land resources and the development of a comprehensive
."
which for the most part does not depend so much on legislative
l Foundation
immediate utilization, which might be called the "National Agricultura
as on other factors. For this reason those who feel that
to concentrate
turned to The ultimate aim of the Foundation would be gradually
public action for the relief of agriculture is necessary, have
al' lands
'sub-margin
or
poorer
land, to cause the
best
the
on
farm
of
farmers
prices
the
raise
to
designed
various proposals for legislation
that they could be turned over to grass or forests,
so
be
evacuated
may
be
it
to
While
s.
commoditie
other
of
prices
products relative to the
preserves or
on believes either for the production of lumber or as game and fish
quite possible to do this by legislative action, the Commmissi
also aid in the
in principle, which for general recreational use. Such a Foundation could
unsound
are
which
means
by
only
done
be
can
it
In conthat
and de- guidance of the population movement between farms and cities.
artificially and arbitrarily alter the relations between supply
Foundation should make systematic effort
the
guidance,
such
with
nection
relief.
mamnd and which promise no permanent
requiresupport any to elimminate that type of farmer who cannot meet the difficult
able
"Accordingly, the Commission finds it impossible to
ugen ments of efficiently conducted agriculture, as well as encourage
DIcNary-lia
the
by
represented
type
the
of
proposals
aid them
of the legislative
world market farmers to remain on farms or to move to better lands and
bill and others designed to raise the domestic over the
l products in to employ the best agricultural methods.
price by artificially restricting the supply of agricultura
the organi"(8) Earnest and effective co-operation is needed between
that the interests
the home rmaket But the Cormnimssion does believe
men, manufacturers and other occupational
business
farmers,
disof
and
zations
intelligent
by
served
better
be
exof American agriculture would
and groups to exercise watchfulness over local and State governmental
criminating effort to diminish gradually those trade restrictions
of farm
foreign market penditures, and to effect needed redistribution of the burden
the
reduce
to
tend
which
articles
ed
manufactur
on
tariffs
thereby enas the shifting taxes now resting with undue severity upon the farmers and
for our agricultural products. The more so, inasmuch
as a whole.
State
each
of
interests
economic
tended
the
further
dangering
has
nation
the general
of the United States from a debtor to a creditor
"(7) The States should so far as practcable relinquish
of marketing its
they
to increase the difficulty of American agriculture
to the local governing units and obtain such revenue as
tax
property
State
products abroad.
can be need through income, business and excise taxes. So far as the
products
farm
for
market
foreign
the
as
time
such
Until
upon
injuring the exercises control regarding standards of education it is incumbent
materially improved in this way without at the same time
benefit of it to assume a considerable share of the financial burden. In meeting
domestic market, agriculture also should be given the fullest
relathe
to
foreign sources local education needs the granting of State aid in proportion
such tariffs as will protect its domestic market against
the local community is highly desirable.
of
prosperity
or
need
tive
of agricultural supply.
being seriously
by gov"(7) The machinery of agricultural credit as it exists
"(2) The position of agriculture can be improved not only
for defective and susceptible of great improvement, this problem should be
markets
of
extension
sound
the
facilitate
which
policies
ernmental
the wide energetically attacked.
farm products, but also by measures which tend to reduce
of extending
natural
'Serious consideration should be given to the desirability
fluctuations in prices and the hazards of loss due to changing
certain prescribed areas and of serving agriculwithin
banking
branch
and market conditions.
institutions.
itself enter tural credit needs by a system of fewer but stronger banking
"The Commission cannot recommend that the Government
system of banking control and in the supervision of
the
purpose
in
this
t
for
Improvemen
products
farm
of
buying
the
into
if
directly and actively
that the State banks are urgently needed and it would probably be beneficial
until and unless it is conclusively demonstrated by experiment
sug- State banking laws should place stricter responsibility on directors of
result cannot be accomplished in any other way. The Commission
number banks.
gests, therefore, that a Federal Farm Board consisting of a small
to release the
in the
"To lower interest rates for short-time credit and
of men appointed by the President should be established to aid
undesirable dependence upon the local
from
sections
farmers
some
advising
in
by
farmers
agriculture
in
production
and
prices
of
stabilization
planning of merchant or landlord for their current credit needs, it would appear
and farm organizations fully and promptly regarding the
a more extensive use of the facilities of the
production and the marketing of crops. With the advice and assistance necessary to bring about
System through the wide establishment of agriculof the Federal Farm Board, effort should be made to organize stabiliza- Intermediate Credit
s. Such corporations should be permitted to
tion corporations to engage in the buying and selling of farm products tural credit corporation above the rediscount rate of the Intermediate
much
so
be
established
should
rate
ns
a
organizatio
charge
Such
prices.
of
stabilizing
for the
not only cover expenses but would permit the
through the cooperation of farm organizations, or private business organi- Credit banks as would
surplus to be applied to the redemption of
zations and of the Government acting through the Federal Farm Board, accumulation of reserves and
of the farmers or co-operatives. The Intereach supplying part of the capital necessary. The Federal Government all stock not in the hands
part should be allowed to charge enough
should at no time hold a controlling interest in such corporations, although mediate Credit banks on their
the gradual retirement of the Governfor
provide
and
such
,
expenses
and
exercise
supervision
t
meet
to
managemen
the
in
It would participate
of the stock of these banks so that they may be
the
and
Banks
ownership
Land
the
Federal
from
and
banks
ment
national
over
exercises
it
as
Government supervision.
changed into farmers' mutual associations under
Intermediate Credit System.
readjustments of
"(8) Agriculture can be substantially benefited by
"(3) In view of the difficulties standing in the way of immediate
extension of waterway systems and other
Government action designed to raise or stabilize farm prices and to extend the railroad rate structure, the
costs.
the foreign markets for farm products, the chief immediate means of reductions in distribution
l rail"Although the relatively unprosperous condition of agricultura
improving the economic position of the farmer must be sought in measures
commodities are in
roads shows that the existing rates on agricultural
to reduce his costa of production.
division of rates on through ship"First and foremost, the Commission feels that great emphasis should general not unduly high, a different
agriculture in central and southern
be placed upon the things the individual farmer himself can do to lower ments would be of essential benefit to
expedition in putting into effect any rehis production costs, the production methods of many farmers being States. The Commission urges
l commodities as were contemplated in
far below the best technical and economic standards. A higher yield duction of rates on agricultura
prove feasible and consistent with it.
per man engaged must be sought, in part by increasing the average the Hoke-Smith Resolution and
con"The development of the Mississippi waterway system and the
size of the farm unit, in part by utilizing labor more fully throughout
water route would be of great benefit
the year. Much land now in crops should be put in grass or reforested. struction of Great-Lakes-to-Ocean
northwest and the Great Plains section
Yields per man should be increased by larger expenditures for relatively to producers of grain in the central
corn belt. The prevention of flood disasters
cheap materials, as commercial fertilizer, and for improved farm equip- and of meat products in the
required and would be of great benefit
ment. In such a program power farming promises the best results and in the Mississippi Basin is urgently
of its rational importance the larger
rotation and diversification of crops are a fundamental necessity, not to large agricultural areas. In view
cost should be borne by the Federal
only to maintain soil fertility, reduce crop pests, increase the period share, if not the whole, of the
of employment and insure against the hazards of nature ar.d price, but Government.
"(9) The Commission strongly urges the exte' nsion of research work
also to increase the self-sufficiency and security of the farmer.
Government, its co-ordination
"(4) Important as are the opportunities for individual self-help, suc- in the field of agriculture by the Federal
and other agencies and the appropriation
cess of farmers in overcoming their own difficulties without outside aid with the research work of States
the Federal Government.
depends mainly upon organized cooperative efforts in reducing produc- of larger funds for such work on part of
"Extensive research is needed to supply the basis of a comprehensive
tion costs and market losses.
of plant pests and diseases,
"Co-operation, in the purchase of goods for agricultural production, land utilization policy, for the elimination
of agricultural products and of new
in securing test seed, in the improvement of livestock, in the utilization for the development of new types
as well as concerning the possibilities of the
of machinery, in harvesting, in the grading, standardizing and processing uses for existing products,
and business organization in agriculfarm products, in providing cheap credit and developing calamity insur- application of industrial methods
be given to the functions of the rural
ance, holds great promise of giving the farmer advantages similar to ture. Special attention should
young people with a view not only to imthose obtained in the manufacturing industry through large scale pro- schools in the education of
future farmers but also to cultivating in them
duction and corporate organization. Co-operative selling organizations prove their efficiency as
l appreciation of the values of farming as a way of
offer the greatest opportunities in the marketing of perishable com- a more fundamenta
modities, but in the marketing of staple crops like wheat and cotton the life and as a profession. sumanarizses the recommendations made by
"The foregoing briefly
advantages to be gained are not so great as is generally assumed and
Ocrnmission on Agriculture as a result of year's study
in part are offset by definite dangers. It is unlikely that great national the Business Men's
in the light of the present situation, the
co-operative marketing organizations can undertake the marketing of of the agricultural problem
development of the United States as well as the deep.
wheat or cotton more cheaply than the existing marketing machinery, previous eeonomic
changes in the economic position of the United States through and
or secure better prices by holding it to the end of the year. But often going
3582
THE CHRONICLE
[VOL. 125.
since the war. The Commission's investigation of the agricultural probStuart, President, Quaker Oats Company, Chicago, Ill.;
lem revealed the agricultural situation as involving and being affected
by many varying factors, some of which were fundamental and connected Alfred Swayne, Vice-President, General Motors Corporawith the gradual change of the country from that of an agricultural tion, New York City; Paul M. Warburg, Chairman,
Interto a prevailingly industrial nation, while others were problems of postnational Acceptance Corporations, New York City.
war readjustment of more temporary nature but intensifying the more
permanent ills of agriculture. The findings of the Commission of the
causes of the agricultural problem may be briefly grouped as follows:
"(1) Farm prices and land values in the general deflation of values Survey of Department of Agriculture Dealing
with
following the war were more seriously affected than prices in other fields.
Factors in Movement of Population to and from
While farm prices have tended to become readjusted to the general level
Farms.
of prices, they have done so but slowly, incompletely and uncertainly,
and certain major elements in agricultural costs have resisted readjustment
Numerous factors other than that of economic pressure
and continued at uneconomically high levels. These include the burden
of State and local taxation; interest rates; transportation costs, which have been responsible for the unprecedented migration from
have increased following the restoration of the railroads to private man- farms to cities in recent years, the Bureau of Agricultural
agement and at a time when the general price level, and with it the Economics, United States
Department of Agriculture, has
prices of agricultural commodities, were falling sharply; similarly postwar changes in ocean freight rates and the development of water trans- learned in a survey of the situation. The opportunity for
portation via the Panama Canal have increased the difficulties of cer- making a better living on the farm than in the
city, howtain agricultural sections. The persistent burdens upon the farmer re- ever, was found
to be the principal reason why persons
sulting from waste in marketing, high costs of distribution and the increasing spread between prices at the farm and retail prices have been move from cities to farms. According to the Department,
intensified since the war.
the survey disclosed that some farmers move to town be"(2) Certain national policies and changes in the international trade cause
they can not make farming pay, or are drawn to the
relations of the United States have tended to increase production costs
city by the lure of a larger income; others make because
and especially to restrict the market for American farm products.
"Immigration restriction has probably tended in some measure to sus- of better school facilities for their children; others
because
tain urban wages which are reflected in agricultural costa, to increase
direct farm labor costa an the costs of distribution. Despite increased of being physically unable to continue farming, and a small
urban purchasing power, it is probable that immigration restriction has number because of financial ability to retire. The Departaggravated the surplus problem in agriculture by curtailing the market ment, under date of Nov. 6, further says:
for farm products in cities more than it has reduced production on farms,
Most of the persons moving from cities to farms were found to be former
and by increasing foreign competition through keeping European farm
workers at home or diverting them to newer agricultural countries. farmers who had been disillusioned by city life. They found they could
Furthermore, quota restriction in all likelihood has deprived American make a better living on the farm than in the city. Some moved back to
agriculture of types of immigrant farmers who by long experience and the farm because of better living conditions in the country; the high cost
tradition are well qualified to farm successfully and may have tended of living in cities drove others to the farm, and still others were induced
to depress agriculture as a whole by the free admission of low-standard to take up farming for the satisfaction of an independent life.
The bureau's survey covered 2,745 persons now in cities who had moved
farm labor.
"The shifting of the United States from the position of a debtor to from farms scattered generally throughout the country; and 1,167 persons
that of a creditor nation in international transactions, the steady ex- on farms who had recently moved from cities stated their reasons for
tension of tariff protection to the manufacturing industries and the in- giving up city life.
Summarizing the results of the survey, the bureau declares that MOM
crease in the tariff level in post-war years have further tended to increase
the difficulties of American agriculture both in respect to the foreign than half the migrants from farms to cities still hold title to their farms.
market for its products and its cost of production. The enormous in- These migrants to cities had, on the average, between one and two of their
crease in governmental and private foreign indebtedness to the United children with them in the city, town or village home, the average number
States has compelled the debtor nations to reduce their imports, increase her in each family being a little more than three children. The conclutheir exports, and become more self-sufficient in respect to agricultural sion is drawn that in some cases one or more children were left to operate
products. The full effect of this change has been deferred by continual the farm, while the other members of the family moved to the city.
Most of the migrants to cities were found to be farmers of long standing.
foreign loans, but the decreased purchasing power of foreign markets for
American products has been more seriously felt by the farmers than by They were about equally divided among those who had never done anything
but
farm, and those who had tried other occupations. Most of them had
other industries and the effect of our creditor position in this respect
been cultivators of moderately large farms. One-third of those who still
is likely to be more apparent in the future.
owned farms after moving to town received over half their subsequent in"(8) The conditions cited, which have arisen in recent years,
have come from
farms. About one-third of the farms of those who still own
combined with certain other factors which have been in evidence
for a their
farms are operated by tenants who are blood relations.
longer period to make for persistent agricultural depression.
Reasons
given for migrating to the city included "drawbacks" on the
"The decline of per capita consumption of certain goods, due
to ur- farm and
"inducements" in village, town or city. Not being able to "snake
banization and changed occupations, as well as changed dietary
habits ends meet"
while on the farm was the chief reason that a third of the
and new methods in the preparation and distribution of foods,
the sub- migrants
gave for giving up farming. Physical disability caused the
stitution of mechanical for animal power on farms and in cities,
changed movement of
clothing habits together with the development of substitutes
one-fourth the number of migrants. To gain a better schoolfor textiles, ing
for their children ranked high as an inducement with both owners
all have combined to reduce the domestic consumption of
farm products.
and
tenants.
"Declining foreign and domestic demand for farm products
Financial ability to retire was the reason why one farmer
have fol- out of
every forty moved to the city.
lowed a long period of persistent over-expansion of
farm acreage due
Out of 1,166 persons who moved from cities to farms, 86.7%, or 1,011
to the long prevalence of the self-sufficient farm, the abundance
of avail- persons, had
had farm experience, either as a former farm owner, a tenant
able land, governmental and private land settlement policies,
rising land or by having
values and the ever-present tendency toward speculation
been born and raised on a farm. One-third and more of those
in farm real who had
previous farm experience had owned farms before, and one-third
estate. This unsound expansion of production, and the
unsound forms had tried
of land tenure accompanying it have contributed to
their hand at being farm tenants.
exploitation and
Migrants from cities to farms were usually men in the early prime
wasteful use of our soil resources.
of
life. They had an average of 2.1 children to the family. About
"Conditions such as these have tended to bear especially
two-thirda
heavy on of them left
the city because they believed that beetter health would be
agriculture because of the low gross return of the average
farm enter- found for
parents and children.
prise; its increasing commercialization or dependence on
market conMany men who left the city to become hired men on farms said
ditions accentuated by excessive regulation of produce
they did
exchanges; its so because of
the high cost of living in the city. Others who left the city
lack of advantages of economies in production and marketing
which said they were tired
of city life. Still others declared that the indeorganization has made possible in other fields; its slow adjustment
to pendent life on a farm was
changing economic requirements, and the rapidly increasing
their chief reason for leaving the city.
comparative
The survey indicates a steady weeding out of older people
economic advantage of the manufacturing industries in the United
on the farm
States, who are replaced in part at least
by men and women in earlier life. Alreflected in the declining role played by farm products in our
export though the total farm population
trade.
is reduced in numbers, the result is the
development of a more vigorous and efficient agriculture. A detriment,
"Some of these factors are clearly to be regarded as aspects
of the however, is that those who retire
take with them to the city a volume of
post-war adjustment process. It appears that the worst phases
of post- financial wealth and experience,
war readjustment in agriculture are over. Prices of farm
the loss of which retards rural instituproducts have tional improvements.
risen since 1923, due to contraction of acreage and decrease in
the numDetailed results of the bureau's study have been published in a
ber of farmers, while prices of manufactured goods have
mimeotended to de- graph report entitled "Analysis
of Migration of Population to and From
cline owing to increased productive efficiency and intensive
competition. Farms," copies of which may be obtained
from the Bureau of Agricultural
Readjustment to post-war conditions, however, should not
be allowed to Economics, United States Department
of Agriculture, Washington, D. C.
obscure the larger problem of securing a balanced and stable
relationship
between agriculture and other industries and of achieving
some sound
adjustment to the deeper lying forces which over a long
period of time
have tended persistently to depress the relative economic
position of the 1925 Farm Census—Farm Mortgage
farmer.
Debt,
"The findings and recommendations herewith made
public are the
Coaunission's own conclusions and were arrived at
two organizations which created the Commission, independently of the
that is the National
Industrial Conference Board and the Chamber
of Commerce of the
United States."
The following served as members of the
Commission:
Charles Nagel, Chairman, of Nagel & Kirby, St. Louis,
Mo.;
E. N. Brown, Chairman of the Board, St. Louis
-San Francisco Railway Co., New York City; E. M. Herr, President,
Westinghouse Electric & Manufacturing Company,
New
York City; J. G. Lonsdale, President, National
Bank of
Commerce, St. Louis, Mo.; A. P. McKissick, Vice-President,
Alice Mills, Greenville, S. C.; Clay Miller, of Clay Miller
and Company, San Franoisco, Cal.; Arthur R. Rogers,
President, Rogers Lumber Company, Minneapolis, Minn.;
John
Population,
Co-Operative Sales and Purchases, &c.—Figures
of Population for 1926.
The Department of Commerce at Washington announced
recently, subject to correction, preliminary figures
for a
number of supplementary items for the United States
1925
farm census, tabulated since the issue of the first
summary
for the United States on March 29 1926. These items
include farm population, kind of road, sales and purchases
through farmers' co-operative organizations, radio outfits,
tractors, value of implements and machinery, selected
farm expenditures, farm mortgage debt, dairy
products,
sheep and wool, goats, and chickens and eggs. Comparati
ve
data for 1920 (or 1919) are given in all cases whore
available. A decrease in the farm mortgage debt since 1920 is
shown in the following figures:
DEC. 31 1927.]
THE CHRONICLE
Jan. I 1925.
Jan. 1 1920.
Farm Mortgage Debt6,371,640
6,448,343
Number of farms in the United States
3,313,490
3,366,510
Number of farms operated by full owners
1,193,047
1,128,207
Number of these farms reporting mortgage debt. _
Value of these mortgaged farms (land and bidgs.)_310,790,244,351 513,775,500,013
4,517,258,689
4.003,767.192
Amount of mortgage debt
41.9
29.1
Ratio of mortgage debt to value of farms (per cent)
The other data supplied in the Department's statement
of April 18 follows:
Miscellaneous Items1920.
31,614,269 Value of farm implements & maclain-f 1925E2,691,703,629
26,313,654
5,300.615
11920 3,594,772,928
ery, Jan.!
8,138,070 Farms reporting
radio outfits. Jan.! 1925
23,476,199
284,006
12,351,813 Tractors on farms,11925
505,933
Jan. 1
11,124,386
11920
246,083
Farm ExpendituresFor feed
1924 8750,444,560
Kind of Road1925.
1919 1097,452,187
No. of farms in United States_ _6,371,640
Farms located onFor fertilizer
1924 230,528.446
156,434
1919 326,399.800
Concrete or brick road
316,527 For labor (money 1924 864,982,384
Macadam road
946,057
1919 1,098,604,590
Gravel road
wages only)
Improved dirt road
1 998,704 For lumber, Posts,
Unimproved dirt road
firewood, &c
2 747,732
1924 166,775,349
Livestock Products206,186
All other and not reported
Milk produced (gal.) 1024 9,198,303,633
Co-Operatives Sales and Purchases1919 7,805,143,792
ValueI
of farm products 19243857,652,166 Butter
made on 1924 642,803,267
1919 707,666,492
sold co-operatively_ 1919 721,983,639
farms (lbs.)
45,735,694
Value of supplies pur- 1924 75,932,799 Cream sold (gal.)... 1924
chased co operly__ 1919 84,615,669
82,247,580
1919
Butterfat sold (lbs.). 1924 1,061,062,363
1919 532,244,072
Sheep, Goals and Chickens on FarmsSheep (no.) Jan. 1_ __ _ 1925 35,590,159 Whole milk sold 1924 2,666,627,367
1919 2,529,331,418
(gals.)
1920 35.033.516
1924 227,105,177
3,370,218 Wool (lbs.)
Goats (no.) Jan. L.__ 1925
3,458,925
1919 228,795,354
1920
Chickens (no.) Jan. 1_ 1925 409,290,849 Chicken eggs (doz.). 1924 1,913,245,129
1920 359,537,127
1919 1,654,044.932
Farm Poptdation. 1925.
28,981,693
Total
24,474,812
White
4,506,881
Colored
Under 10 years old 7,394,432
10 years and over_21,587,261
11,298,409
Male
10,288,852
Female
3583
with maturities up to five years. The amount of such loans is restricted
to 50% of the property value.
An important phase of this development is the plan being worked out
by some of the national banks to sell participating certificates in first
mortgages, instead of the mortgage themselves. This would divide these
obligations into smaller and more convenient denominations for marketing.
Security for these certificates is the original loan. National banks
would not guarantee participating certificates. However, the national
hank can act as trustee through its trust department under an agreement with the purchasers of certificates. So far there has been no expression from the Comptroller of the Currency concerning the sale of
participating certificates in first mortgages, so that there would seem to
be no Federal objection, as yet, to this expansion of national bank activity which is permitted by law.
In the sale of certificates it is believed that the national banks have
a certain competitive advantage. Their mortgage loans are supervised
by the Government, through the examination of national banks, which furnishes a sales argument of considerable weight.
The banks themselves can turn over their capital frequently by this
method, making a profit on the loan and on the participating certifiNational banks may market participating certificates through
cates.
their investment security departments.
Another method followed by some national banks is through the organization of affiliated mortgage companies. The bank sells its mortgages to the mortgage company, which issues its own obligations collaterally secured by the mortgages. A national bank can act as trustee
for these mortgage company obligations. The original mortgage loan
and the trustee are under Federal supervision, thus providing the same
sales argument as that of the national banks which sell their own participating certificates.
United States National Income in 1926 Computed at
90 Billion Dollars.
The American people had a record aggregate national
The farm population of the United States decreased income of nearly $90,000,000,000 in the calendar year 1926,
649,000 persons last year, the biggest decrease in any year according to figures compiled by the National Bureau of
since 1920, according to estimates by the Brueau of Agri- Economic Research and made public by the Bureau of Inculture Economics, United States Department of Agricul- ternal Revenue with the statement that they corroborate
ture, made public April 20. As to the 1926 showing, it is Internal revenue statistics. The United Statea Daily of
stated:
Nov. 4, from which we quote, also said:
• The 1925 farm population includes only persons living on farms: the 1920 figures
include also those farm laborers (and their families) who, while not living on farms,
lived outside the limits of any Incorporated place.
The number of persons living on farms Jan. 1 1927 is estimated at
27,892.000. against 28,541,000 Jan. 1 1926. The 1925 agricultural census
figure, 28,982,000. Wa-s used as a base for the Bureau's calculations.
It is estimated that 2,155,000 persons moved from farms to cities,
towns and villages last year, and that 1,135,000 persons moved to farms,
making a net movement of 1,020,000 persons away from farms. Births
on farms during 1926 are estimated at 658.000 and deaths at 287,000.
leaving a natural increase of 371,000 persons, which reduced the loss due
to cityward movement to 649,000.
The Bureau's figures for 1925. revised on the basis of the 1925 agricultural census, show a net loss of 441,000 persons in farm population
that year. The gross movement from farms to cities was 1.900.000 and
the gross movement to farms 1,066,000, making a net movement to cities,
not counting Mrths and deaths, of 834.000 Porsons•
All geographic sections of the country show net decreases in farm population last year. The farm population in the New England States was 636.000
persons Jan. 1 1927, against 651,000 Jan. 1 1926; Middle Atlantic States,
1,768.000 against 1,808,000; East North Central, 4,323,000 against 4.425.000; West North Central, 4,729,000 against 4,826.000; South Atlantic,
5.393.000 against 5,531,000; East South Central. 4,509.000 against 4.586.000; West South Central, 4,585,000 against 4,727,000; Mountain, 949.000
against 973,000, and Pacific, 1,000,000 against 1,014,000.
The figures show that in the New England States 72,000 persons left the
farms last year and 52.000 went to farms; Middle Atlantic States, 155.000
persons front farms and 101,000 persons to farms; East North Central,
319,000 from farms and 164.000 to farms; West North Central, 338,000
from farms and 193.000 to farms; South Atlantic. 354.000 from farms and
133,000 to farms; East South Central, 266,000 from farms and 101,000 to
farms; West South Central, 402,000 from farms anti 194,000 to farms;
Mountain, 130,000 from farms and 95,000 to farms; Pacific, 119,000 from
farms and 102,000 to farms.
United States
I
12 10.1
102 .9
9
•-w000,a-4-11
I
•-•Ca I.CAN.-.NI' Ca N
io.
...inb61.1)36;-•;:n
$1,
Pacific
.
00:4In b.0010..00 CO
•-•
00 Ca Ca CaO
On the basis of these figures, the statement by the Bureau of
Internal Revenue said, the "highest standard of living ever attained
in this or any other country" is indicated. The statement added that
the great income was not the result of an increase in price levels
for the reason that the price of direct er consumption goods was
slightly less in 1926 than 1921. Following is the full text of the
statement issued by the Bureau of Internal Revenue:
Statistics issued by the National Bureau of Economic Recearch
corroborate statistics issued by the Bureau of Internal Revenue as
showing growth of the national income. According to the former
bureau, the American people in 1926 had a record aggregate income
of nearly $90,000,000,000, an increase of approximately twenty-seven
billions, or 43%, in the five years since 1921.
Highest Standard Attained.
This income indicates the highest standard of living for the population as a whole ever attained in this or any other country. Tabulated figures follow showing total income in millions of dollars and
also income per person gainfully employed:
Per
Total
person
1920
$74,158
$1,851
1921
62,736
1,537
1922
65,567
1,586
1923
76,769
1,821
1924
79,365
1,840
1925
86,461
1,971
1926
89,682
2,010
This great increase in income is not the result of an increase in
price level, for the average price of direct or consumption goods was
actually slightly less in 1926 than in 1921. The following table gives
a comparison of income per person gainfully employed, in both current
dollars and in 1913 dollars, showing continuous gains since 1921:
The details follow:
1913
CHANGES IN NUMBER OF PERSONS LIVING ON FARMS DURING 1926.
Current
dollars
BY GEOGRAPHICAL DIVISIONS.
1909
$791
$823
(Number of persons in 1,000's, 1. e., 000 omitted.)
1910
809
829
1911
812
821
1912
EstiArrivals.
844
850
Departures.
1913
mated
864
864
Farm
Farm
1914
From
To
836
Population
828
PopsDivision.
Cities,
Cities,
1915
of
861
843
lation Births. Towns and Deaths. Towns and Jan. 1 1927
1916
1,014
919
of
Villages.
Villages.
1917
1,232
947
Jan. 1
1918
1,386
879
1926. % No. % No. % No. % No. % No.
1919
1,669
934
1920
1,851
907
Geographic Divisions1921
1,537
13 8.0
52 1.3 8
887
New England
7207.7
636
1922*
38 5.6 101 1.3 24
1,586
Middle Atlantic
155 97.8 1,798
879
1923*
88 3.7 164 .8 35
East North Central_.
319 97.7 4,323
1,821
1,113
87 4.0 193 .8 39
1924*
West North Central..._
338 98.0 4,729
1,840
1,121
144 2.4 133 1.1 (1I
South Atlantic
354 97.5 5,393
1925*
1,971
1,163
138 2.2 101 1.1 50
East South Central....
264 98.3 4,509
1926*
2,010
1,186
118 4.1 194 1.1 52
West South Central_ _ _.
402 97.0 4.585
Mountain
20 9.8
95 .9 9
130 97.6
*Preliminary estimate.
949
119 98 6 1.000
28,541 2.3 658 4.0 1,135 1.0 287 7.6 2,155 97.7 27,892
National Banks in Mortgage Business-Many Taking
Advantage of Broader Powers Conferred Under
McFadden Act- May Sell Participating Certificates.
The following front Washington, appeared in the "Wall
Street Journal" of Nov. 8:
National banks are beginning to enter the mortgage loan business under
the broader powers conferred upon them by the McFadden Act. Effect
of the trend of national banks in this direction is to open up large
amounts of bank credit to the first mortgage business.
Under the McFadden law, the national banks are permitted to make
first mortgage loans on improved real estate, either city or country,
Discussing the statistics editorially, the New York "Journal of Commerce" on Nov. 4 stated:
Dangerous Income Statistics.
According to a Government estimate reported in current press dispatches the income of the American people in 1926 was $90,000,000,000.
It was not stated on what basis the estimate rests. No doubt details
will follow later, but the evident intention of the statement is
to
suggest that it is founded upon Internal Revenue Bureau figures
of
taxation. Inasmuch as only a very small percentage of
the people
pay income taxes, while a not very much larger percentage file
income
tax statements, it is evident that any such figure must be
a matter
of conjecture.
The Government bureaus, however, are not alone in their
dealing
with this problem. The $90,000,000,000 figure is about
the highest
that has ever been put out, hut it is not more than about
50% above
estimates made by supposedly conservative computers,
and it is not
more than perhaps 25% higher than estimates that have
been made
3584
THE CHRONICLE
by business organizations within the past few months. There has
been a race between the statisticians and estimators of various classes
during the recent "prosperity period" in the endeavor to show that
what is called "national income" was increasing very rapidly and that
as a consequence the public at large were better off than ever before.
Probably there is a difference in basis of estimate or concept between
the various estimators.
Getting at the truth of things about such income statistics is therefore a good deal more than a mere exercise in statistical criticism.
Most of thm (as this latest one evidently does) are an effort to state
what are called money incomes. And yet this attempt is in itself
obviously deceptive. It will be agreed that the income of the public
in the true sense is the amount of goods that it annually produces
and makes available for consumption. The most careful business
indexes that have been prepared either by public or private computers
show that we are today turning out perhaps 120% of our national
production before the war. Our maximum productivity was reached
Just at the close of the war when all factory output had been enormously speeded up. Many industries are today as a matter of fact
overmilled.
As compared with conditions in 1919-20, therefore, it
may be quite seriously doubted whether there has been any substantial
increase in our true income, yet the present Government estimate
shows an advance of about 43% (or $27,000,000,000) since 1921.
There are no official figures for pre-war conditions, but a good many
private estimators have set the pre-war estimate at abuot $35,000,000,000 to $40,000,000,000. This is a good deal less than one-half
the figure which is now put forward, but when checked by commodity
production seems absurd for we are certainly not turning out twice
as much in the way of goods today as we were in 1913, even when
full allowance is made for the difference in the purchasing price of
money (price level changes)) all these figures are plainly seen to be
out of line with known facts.
The $90,000,000,000 which is said to represent the present income
of the American people is represented as the joint income of 117,000,000
persons, a figure which would make the average income of each person
about $770. Reckoning the usual number of five persons to a family
it would appear that the average American family has an income of
about $3,850, an obviously absurd figure, even if correct, since (as
income tax statements show) the number of persons receiving any
such income is a small one. As the income of those who receive the
larger returns is given to them in money or credit and never is
(or can be) realized by them in goods such estimates afford only an
utterly distorted account of what is actually going on in the United
States. If it should be asserted as some do that many families, such
as those on farms, receive large incomes in "services," produce or
enjoyments of one kind or another, the question is properly asked
whether these same intangible elements have been reckoned in as
income of other classes in the community so as to include, for instance,
faith, hope and charity as elements.
The whole effort to show by such figures the relative "standard of
living" or "degree of prosperity of the country" is injurious to sound
thinking on economic questions. Even if the figures can be esteemed
correct in a technical sense they would be valueless except in conjunction with carefully arranged figures designed to show distribution
of income and control over commodities.
The "Wall Street Journal" on Nov. 5 discussed the subject editorially as follows:
Inflating National Income.
A real public service is rendered by the Journal of Commerce in
an editorial protest against the national income figures officially put out
at Washington.
Being a great and free country we may call our
inco meanything we choose. At least we are rich enough to afford
ourselves some measure of self-deception. Sir Owen Seaman, the
editor of Punch, once remarked that the essence of American humor is
exaggeration while that of the English is understatement. The Journal
of Commerce says:
The $90,000,000,000 which is said to represent income of the
American people is represented as the joint income of 117,000,000
persons, a figure which would make the average income of each
person about $770. Reckoning the usual number of five persons to a
family it would appear that the average American family has an
income of about $3,850, an obviously absurd figure, even if correct.
since (as income tax statements show) the number of persons receiving
any such insome is a small one. As the income of those who receive
the larger returns is given to them in money or credit and never is (or
can be) realized by them in goods such estimates afford only an utterly
distorted account of what is actually going on in the United States.
If we were to take a justifiable economic measure for income, in.itead
of merely drinking toasts to our noble selves, an estimate of the actual
goods produced would take the wind out of the Washington figures.
What is there meant by income? What is the income of a maidservant receiving a thousand dollars a year, but with no expenses
except for clothes? It would be possible to devise three different farm
incomes as, for instance, the net cash return at the end of the year,
or that and the cost of living, estimated on the value of farm products
consumed, or something still more complicated, according to the
financial situation of the farmer. In estimating income for tax, the
British tax commissioners, where the farmer says he has no cash income, make an estimate based upon treble the rental of his farm. How
would that work in with the Washington idea?
It may also be submitted, with respect, that the government department is enumerating several kinds of income, not really identical or
capable of any useful average. In the Woodrow Wilson day the Department of Labor was practically Socialistic, inventing a fictitious
family of five and stipulating for a minimum income of $2,500 a year.
As the New York Times correctly points out, our 25,000,000 families
must have an average of one and three-fifths income earners, and are
credited with an impossible average.
Private estimates vary widely, but all of them are below the official
figures. What seems tolerably clear is that income in large amount is
being counted twice over.
U. S. Per Capita Income $685, High Above Other Countries
—Figures of League of Nations for 1924—National
Wealth of This Nation $320,803,000,000.
Under date of Nov. 3 the New York "World" reported
the following from Washington:
Per capital income for the United States in 1924 was $685 compared
to $430 for the United Kingdom, $225 for France and $210 for Germany, according to the last available figures comparing the national
[VOL. 125.
incomes of all countries, furnished to the Department of Commerce
by the League of Nations.
Post-war capita income for the United States nearly doubles pre-war
income, with about 50% increase in the United Kingdom and only
a slight gain in France and Germany.
In 1924 the total national income of the United States was $79,000,000,000. Estimates place the total for 1926 at $90,000,000,000. The
income per person employed in 1926 is estimated at $2,010, compared
to $1,840 in 1924 and $864 in 1913.
In 19,24 the total national income of the United Kingdom was
approximately $19,000,000,000, compared to $13,000,000,000 for Germany and $9,000,000,000 for France.
Last available figures on the national wealth of the four leading
countries are for 1922 and are: United States, $320,803,000,000; United
Kingdom, $88,840,000,000; France, $67,610,000,000 and Germany,
$35,700,000,000.
In connection with the steady increase in the national income the
Department of Commerce says that although production has increased
steadily since 1919, the number of workers in industry has decreased.
In 1925 there were 23,081,000 workers engaged in agriculture, mining,
manufactuting and transportation, compared to 24,969,000 in 191,9.
The decrease in workers, it is stated, has increased the output per
worker and has not resulted in unemployment, as many have gone
into other work, such as construction, operation of gas stations and
other such lines.
The total value of the industrial output in the United States has
been raised from $48,346,000,000 in 1919 to $49,077,000,000 in 1925,
the department states.
Estimates of the national income for 1926, made by the National
Bureau of Economic Research and announced by the Bureau of Internal
Revenue, show it has nearly trebled since 1913. The total in that year
was $32,000,000,000.
From 1913 to 1924 the United Kingdom increased its national
income by about $10,000,000,000, compared to approximate increases
for Germany of $1,500,000,000 and $1,700,000,000 for France.
The per capita income for 1924 in the comparative figures was based
on a population of 115,000,000 for the United States, 45,000,000 for the
United Kingdom, 62,500,000 for Germany and 40,000,000 for France.
Per capita incomes for all countries, in addition to the United States,
France, Germany and the United Kingdom, have been announced for
1924 as follows: Italy, $105; Belgium, $170; Sweden, $240; Norway,
$180; Austria, $110 (pre-war figures for present boundaries); Hungary,
$100; Canada, $270; Australia, $355, and Japan, $45.
National income for all countries, with the exception of the four
leading nations, in 1924, was Italy, $4,330,000,000; Belgium, $1,300,000,000; Sweden, $1,470,000,000; Norway, $490,000,000 Austria,
$705,000,000; Hungary, $810,000,000; Canada, $2,500,000,000; Australia, $2,085,000,000, and Japan, $2,765,000,000.
The pre-war national income of all countries, except the United
States France, United Kingdom and Germany, follows: Italy, $3,900,000,000; Belgium, $1,250,000,00; Sweden, $765,000,000; Norway, $310,000,000; Austria, $675,000,000; Canada, $1,500,000,000; Australia,
$1,250,000,000, and Japan, $1,592,000,000.
Metropolitan District Created by Merchants)
Association and Other Bodies—Includes Territory Within 40 Miles of New York City Hall and
has Population of 9,500,000.
A new Metropolitan District for Now York, covering
approximately all territory within forty miles of the New
York City Hall, has been formed. It has a population of
9,500,C00 and an area of 3,765.5 square miles. It was
created by a committee representing the Merchants' Association, the Brooklyn Chamber of Commerce, the Queens
Borough Chamber of Commerce, the Bronx Board of Trade,
the Newark Chamber of Commerce, the Regional Plan of
New York, the Port of New York Authority, the Transit
Commission, the Department of Statistics of Columbia
University and the Motor Truck Association of America,
working with the United States Census Bureau. The
Merchants' Association, through its Publicity Bureau, in
announcing this on Nov. 22, said:
New
This new Metropolitan District will supplant the old Metropolitan District for census purposes.
A map showing the exact boundaries of the new district has been published by the Merchants' Association and distributed to its members.
Copies of this map may be secured at the offices of the Merchants' Association.
The new district contains 500,000 Inhabitants more than the combined
population of Chicago, Philadelphia, Detroit, Cleveland, St. Louis and
Boston, the six largest cities In the country, except New York, according
to the July, 1926, estimates of the U. S. Census Bureau.
It has 1.250.000 more inhabitants than all the States of New England.
Its population exceeds by 500,000 the entire population of the Dominion
of Canada.
It contains 470,000 more people than the cities of Paris, Berlin and
Moscow combined, the three largest cities of Continental Europe.
In the United States there are 217 cities having populations of between
25,000 and 100.000 each. The total population exceeds that of the New
Metropolitan District by only a small percentage.
In defining the District, the principles laid down at a recent conference
in Washington of representatives of chambers of commerce and commercial
organizations from fifty of the largest cities in the country were followed.
This conference was called by the Chamber of Commerce of the United
States.
The principles adopted at this conference were approved by the United
States Census Bureau. They describe a Metropolitan District as "an
area within which the conditions of manufacturing, trade, transportation,
labor and living—in brief, the daily economic and social life—are predominantly influenced by the central city." In applying this description, such
factors as the daily commuting zone, retail store deliveries, long distance
freight rates, railroad switching limits, local telephone service, and relative
density of population were taken into consideration.
Comparisons between Metropolitan Districts of the larger cities of the
country have long been made by the Federal Census Bureau. Hitherto,
these Districts have been defined by arbitrary lines instead of upon the
considerations utilized by the Committee on Definition of the New York
Dzie. 811927.]
THE CHRONICLE
3585
Metropolitan District. The old New York Metropolitan District covered The corporations thus selected were (1) all of those which reported a
the area within ten miles of the boundaries of the City. As a similar stock dividend in any year from 1913 to 1926 irrespective of when the
arbitrary measure was applied In defining the Metropolitan Districts of dividend was paid, avoiding the bias involved in selecting only those
other cities, regardless of size, Metropolitan Districts everywhere are now which paid a stock dividend in the last seven years and (2) only those
being redefined in accordance with the principles adopted at the Wash- companies which furnished dividend reports for the entire fourteen years.
Such a summary probably contains some degree of bias, also, because the
ington conference.
The new Metropolitan District for New York follows County lines except- number of corporations reporting stock dividends in the period 1920-1926
ing in Long Island and Connecticut, where it follows town lines. Itincludas was likely to be much larger than in the seven preceding years owing
the five Counties of New York City, all of Nassau County on Long Island to the greater number of corporations covered in the later period by
and the towns of Huntington and Babylon in Suffolk County. It takes such publications. Otherwise, the lists were presumably unbiased.
In all of Westchester County bordering upon New York City on the north
Increase 438 Per Cent.
and all of Rockland County on the west bank of the Hudson River opposite
The table for this group of 1,000 corporations would indicate that the
Westchester and north of the New Jersey State line. In Connecticut, it
takes in the townships of Greenwich, Stamford, Darien, New Canaan absolute increase in stock dividends was about 438% in the second
and Norwalk. It includes all the northeastern part of New Jersey from period as compared with an increase of only 73% in cash dividends. In
the State line down to below Asbury Park and Seagirt, covering the Counties the second period the stock dividends were about 4L% of total dividends.
of Hudson, Bergen, Passaic, Essex, Morris, Union, Somerset, Middlesex In the first period they were about 18%.
It is the commission's opinion that "in view of the method of selecand Monmouth.
The New Jersey area inside the District covers 2,277 square miles and has tion and the size of the sample employed these rations of stock and
a population of 2.672,000. The New York State territory outside the City cash to total dividends and the percentages of increase in such dividends
limits that has been included in the new District covers 1,048 square miles constitute apparently the safest basis for estimating the relative increase
and has a population of 764,000. The Connecticut territory which is in- In importance of stock dividends since the Supreme Court decision. Even
cluded in the new District comprises 144 square miles and has a population these ratios should be used with care, however, since the sample employed
of 111.900•
is still presumably somewhat biased through the greater comprehensiveness
of financial manual data in recent years.
"A full appreciation of the change that has taken place in corporation
Report by Federal Trade Commission on Stock Dividividend policy since the Supreme Court decision, however, cannot be
dends in Accordance with Senate Resolution— obtained from a comparison of the cash and stock dividends paid in
Enormous Increase Following Supreme Court's each period either with each other or with the total dividends. In order
Decision Holding Such Dividends Non Taxable. to thoroughly comprehend what has taken place it is necessary to carry
the analysis a step further and consider the dividends in relation to
Enormous increases in the amounts of stock dividends the surplus for the two periods."
Surplus Figures Compiled.
paid by corporations to shareholders since the decision of
Surplus, as well as cash, stock and other dividends, was reported by
the Supreme Court that such dividends are not taxable to
2,971 corporations, including corporations paying stock dividends before
shareholders, are revealed by the Federal Trade Commis- as
well as after the Supreme Court decision.
sion in making public on Dec. 5 the report of its investigaIn the first seven years nearly 1.8 billion dollars, or the equivalent of
45.14%
of the surplus attributable to the period for these 2,971 com10,000
corporations
tion of stock dividends of more than
as
panies, were retained undistributed in the business; in the second seven
ordered by the Senate. The inquiry, conducted under a years only 317
million or 5.69%. The probable reasons for the difSenate resolution introduced in December 1926 by Senator ference between the two periods, as explained in detail in the report,
are
the
heavy
reinvestments
of earnings in property in both periods which
Norris, revealed that a total of $6,253,818,026 has been paid
were not capitalized until after
decision in Eisner v. Macomber. DurIn such dividends since 1920 by 10,245 corporations. In ing the earlier period it was the
uncertain whether stock dividends were
the preceding seven years prior to the court's decision 4,967 taxable or not, and the fear of such taxation which would have especially
of these corporations paid $628,022,448 in stock dividends. affected large stockholders subject to high surtaxes was probably a potent reason for not issuing them.
The statement issued in the matter by the Federal Trade
From 1920 to 1926, inclusive, the large dividend distributions in stock
Commission, making known the results of the inquiry, and cash, more particularly the former, reduced the average surplus per
dollar of capitalization for these 2,971 companies from $1.07 to $0.53.
EIRYS
Surplus per dollar of capitalization at the close of 1926, therefore, was
Senate Resolution 804, introduced in December 1926 by Senator Norris,
below that at the beginning of 1913 when it amounted to $0.60.
of Nebraska, calls for this investigation, declaring it had become common practice of corporations to protect stockholders from payment of
Policy Changes Noted.
Income tax by awarding stock dividends, which were not taxable to the
Significant changes in corporation dividend policy since 1920, according
holder, instead of cash dividends or other forms, which were taxable. to the commission's report, are:
Such practices, the resolution stated, enabled corporations to acquire
(1) Corporations have apparently distributed in the seven years,
competing plants, thus avoiding provisions of the anti-trust laws. The 1920 to 1926, much larger proportions of both total distributable surresolution requested full information so the Senate could be prepared plus, and total surplus attributable to the period, than in the seven years,
to legislate concerning stock dividends. It was further resolved that:
1913 to 1919.
r "The Federal TradeCommission be, and It Is hereby, directed to ascertain and
(2) This increase in distribution has been chiefly by way of both
report to the Senate. the names and the capitalization of corporations that have absolute and relative increases in stock dividends
in the later period as
Issued stock dividends, together with the amount of such stock dividends, since
the decision of the Supreme Court holding that stock dividends were not taxable, compared with the earlier. While there were considerable absolute inand to ascertain and report the same Information as to the same corporations for creases in cash dividends in the second period, there was practically no
the same period.of time prior to such decision."
relative increase.
In part, these differences are due to the abnormal character of busiReturns Total 10,245.
Allowing for failure of numerous corporations to report returns and ness and financial conditions resulting from the World War; in part,
unavailability of authentic records in many instances the commission they are the results of the tax policies of the Federal Government.
In summing up the report, the commission pointed out that:
obtaineil reports which could be tabulated for stock dividends from
"The declaration of stock dividends at the rate prevailing in the last
10,548 corporations. However, 303 of these issued stock dividends prior
to Jan. 1 1920 but none subsequent to that time. Deducting these 303 tow years does not appear to be the result of any controlling necessity
there remained 10,245 corporations which reported the issue of stock and seems to be of questionable advantage as a business policy. In the
first place, the reduction of surplus through a stock dividend leaves the
dividends in the seven-year period, Jan. 1 1920 to Dec. 31 1926.
The total amount of stock dividends paid by the 10,245 corporations stockholder's equity in a corporation precisely the same as it was, as
aggregated $6,253,818,026 in the seven years, 1920-1926. In the pre- measured by its book value. The result in this respect is the same as if
ceding seven years, prior to the court decision, they amounted to only the corporation increased the number of shares of its capital stock by
splitting the original quantity in the same number as is outstanding
$628,002,448.
as a result of the stock dividend.
Stock Dividends Rise.
"Second, the stock dividend policy places permanently beyond the
However, only 4,967 of these companies reported for the entire fourteen years. In the first seven-year period stock dividends composed 15% reach of shareholders for purposes of any subsequent distribution in
of the total dividends issued by this group, where, in the second period cash or other assets whatever part of the surplus is capitalized. From
they amounted to more than 45%. Cash dividends, in the first period, the standpoint of the corporation it has been argued that this is an
aggregated over all% of the total, but in the second period dropped to advantage because new capital has in effect been thus permanently obtained without the necessity of selling new securities. But, essentially,
54%.
While the foregoing group of 4,967 corporations paying stock dividends this is only an argument for financing capital requiremnts from earnduring 1920-1926 reported on dividends for the entire fourteen-year period ings and hence is not inseparably or peculiarly relateed to stock divifrom 1913 to 1926, inclusive, the stock capitalization of all these cor- dends.
Total Surplus Reduced.
porations is not available for the two full seven-year periods prior and
"Third, the capitalization of surplus automatically reduces the total
subsequent to the date of closing nearest Jan. 1 1920. Only 2,846, or
considerably more than one-half the total number, furnished this infor- surplus, surplus per dollar of stock capitalization and surplus per share
mation and this number represents the largest group for which it is below that which would be available if the capital stock is split into
possible to compare both stock capitalization and stock dividends for the same total number of shares. The corporation surplus serves as a
reserve fund out of which dividends may be paid when not earned during
approximately the same periods.
During the first seven years the increase in stock capitalization of the current year and against which losses and adjustments (if not too
these corporations aggregated only 86.36%, while during the second seven large) may be charged, thus avoiding possible impairment of the capital
Investment and inability to pay dividends without a readjustment of
years the increase was 142.27%.
capital structure, even though such dividends are earned. On the other
Shows Stock Capitalization.
hand, where no stock dividends are declared shareholders may get a
A comparison of the stock dividends of this group with the increase wrong impression of the nature of their property if
the surplus has in
in stock capitalization in the first and second periods shows that of the major part been already embodied in fixed assets. The capitalization of
total increase in stock capitalization in the second period amounting to that part of accumulated surplus thereby rendered unavailable for divi$3,066,918,746 stock dividends contributed $2,350,246,652 or more than dends or for reserve funds
that may be needed later might be defended,
76% of the grand total, while in the earlier seven years stock dividends under such circumstances, as a desirable correction of capital accounts.
aggregated only 44% of the net increase.
"Had capital stack 'splitups' been substituted even to a comparatively
The percentage increases in stock, cash and total dividends for the limited extent, for stock dividends from 1920 to 1926 each shareholder
2,846 corporations as between the first and second periods are approxi- might have possessed as many shares as he held at the end of that
mately the same as those for the larger group of 4,967 corporations period but each share would have been somewhat better protected,
in
for which dividend records for fourteen years were available, although so far as surplus serves as a protection to shareholders.
the size of the former group is less than 60% of the latter.
"The foregoing statements should not be taken as favoring the creation
The commission also compiled a summary of all the fourteen-year re- of an excessive surplus, or its indiscriminate investment. Even though
ports of corporations which appeared from the financial manuals to have It is necessary or desirable for one reason or another to pursue a policy
distributed a stock dividend in any year from 1913 to 1926, inclusive. of building up a large surplus from earnings and reinvesting it in
the
3586
THE CHRONICLE
[VoL. 125.
Appropriations for Flood Relief, Etc.
business, it does not follow that it Is either necessary or desirable to
capitalize that surplus to the extent prevailing in the last few yell's."
In this connection it should be noted that those estimates do net inThe complete report, to be published soon, contains nu- clude any expenditures that may be occasioned by new legislation, such
for example, as measures for flood relief, financing the return of alien
merous tables illustrating stock dividends, cash dividends, property, agricultural relief, for the purchase of the so-called triangle
other dividends and surpluses. There is a complete ex- in Washington, for increases of the navy, for increasing the maximum
position of the Supreme Court decision involved (Eisner of annual expenditures for public buildings and providing for the
Boulder Dam and the Muscle Shoals projects.
v. Macomber, 252 U. S. 189), and a full account of the
Three of the measures above referred to were adopted by the House
commission's observations and comments on stock divi- immediately after the passage of the revenue bill, namely, the Alien
Property bill, authorizing $50,000,000 to $100,000,000 expense; the bill
dends. It is pointed out that for unity in tabulation the authorizing the purchase of the triangle at a cost of
$25,000,000, and
economists compiled statistics for the seven-year period pre- the bill authorizing the expenditure of an additional $10,000,000 a year
ceding the Supreme Court decision as from Jan. 1 1913 to for public buildings. These three already call for $35,000,000 to $85,000,000 expense in 1929.
Jan. 1 1920 although the decision was made March 8 1920,
I have reviewed the estimates of probable revenue for the fiscal year
and for the period following the decision, Jan. 1 1920 to 1929 submitted by this department to the President and to Congress,
I am satisfied, based on existing information, that these estimates,
and
Jan. 1 1927.
if they err, err on the side of liberality.
It is apparent therefore that unless the Senate modifies the tax reducSecretary Mellon in Letter to Senator Smoot Favors De- tion provided for in the House bill, and unless the two Houses ultimately agree to limit tax reduction to the figure recommended by the
lay By Congress on Tax Bill Until After March 15.
budget message, estimated receipts will not be adequate to meet estiThat "both the tax payers and the Government have mated expenditures as submitted in the budget.
In the present tax bill before your committee, evidently on the
nothing to lose by postponing the final enactment of the
assumption that they were inaccurate, the official estimates have to a
tax reduction bill until after the 15th of March" is the large extent been disregarded. While I am satisfied that the estimates
conclusion reached by Secretary of the Treasury Mellon. of revenue are as accurate as can be made from available data, and
Secretary Mellon thus indicates his views in a letter under certainly no figures have been submitted which in any way challenge
their accuracy, it is nevertheless true that the estimates were made in
date of Dec. 29 to Senator Reed Smoot, Chairtnan of the the absence of definite knowledge as to the taxable income of the calenSenate Finance Committee, who sought an expression of dar year 1927, both of corporations and of individuals.
opinion from Mr. Mellon as to what the effect would be of
Decline in Corporation Incomes
withholding action until the date named in order that
Taxable income received during the calendar year 1927 directly afmore accurate estimates of revenues might be available. fects income tax receipts during the first six months of the fiscal year
estimates for the fiscal year 1929 the Treasury
Secretary Mellon says that "from the standpoint of the 1929. In making its
Department assumed that the current income tax yield would be equal
taxpayers, as the estimate of probable revenues at that to that of the fiscal year 1927, one-half of which was based on the intime (March 15) will be more reliable than the present come of the calendar year 1926. It appears at the moment as if coraggregate of the calendar year 1927 will fall
Treasury estimates, they will be relieved of the risk of porate net incomes in the
below those of the calendar year 1926 by not less than 6% nor more
obtaining no tax reduction at all this year, or facing the than 10%. This was pointed out to the Ways and Means Committee
even worse situation of a bill which provides a reduction during the course of its bearings. It is, however, but an estimate.
The income tax is such an important element in our Federal revenue
In excess of that which revenues permit." The revenue bill
system that it may almost be said to be the controlling factor in the
on
Representatives
which was adopted by the House of
revenue field. For instance, in the fiscal year 1927, out of total reDec. 15 will, it is estimated," says Secretary Mellon, "re- ceipts from customs and internal revenue aggregating $3,475,000,000 in
yielded $2,225,000,000 approximately.
duce internal revenue receipts by approximately $290,000,- round figures, the income tax
Income tax returns are directly affected by business conditions and
000. This is $38,000,000 in excess of the estimated surplus, rise or fall with them. This is well illustrated by the following figures:
and $65,000,000 in excess of the figure set by the Treasury
If the gross income of corporations in 1927 as compared with 1926
apas the maximum possible tax reduction." He further says should fall off 10%, revenue from this source would fall off by
proximately $200,000,000, according to the estimates made by Mr. Mothat it is apparent that "unless the Senate modifies the tax Coy, the Government actuary, and this without taking into considerareduction provided for in the House bill, and unless the tion the loss in tax on the incomes of individuals. This is on the
two houses ultimately agree to limit tax rdeuction to the assumption that the rate is to remain at 144%.
If the rate is reduced to 1134%, and if the other provisions of the
figure recommended by the budget message, estimated
House bill relating to corporate taxation become law, and if in addition
receipts will not be adequate to meet estimated expendi- there is a falling off in gross income of corporations of 10% as comalone
tures as submitted in the budget." Secretary Mellon's let- pared with the year 1926, the loss in revenue from that source
calendar year 1928 approximately $350,000,000.
the
for
aggregate
will
full:
ter follows in
It is impossible to secure more accurate information before March 13
Dec. 29, 1927:
next, when the returns for the calendar year 1927 will be filed. Only
Hon. Reed Smoot, United States Senate, Washington, D. C.
after that date will we be in a position to know with reasonable defiMy Dear Senator Smoot:
niteness the income for the calendar year 1927 reported for tax purI have your letter with reference to the revenue bill now before the poses, oa which we may rely for tax receipts during the first half of
which
reads
as
Committee,
follows:
Senate Finance
the fiscal year 1929.
"My dear Mr. Secretary:
Also it will be easier then to determine whether receipts from back
"It is reported that it is the opinion of the Treasury Department and taxes are to continue at a high level, or whether the decreased receipts
tax
a
that
reduction
of
Budget
the
about
is
$225,000,000
the Bureau of
back taxes, which have been expected for some time, have definitely
all that i warranted by the present estimate of the .national finances. from
that they have. During the first five
As the bill before the Senate Finance Committee carries a reduction of set in. Present indications are
same months a
about 1290,000,000, I should like to inquire whether any additional in- months of the present fiscal year, as compared with the
$88,930,000, as compared with
aggregated
formation has been secured which would modify the original estimates, year ago, back tax collections
or whether you still consider that they are correct.
$112,683,000. Our estimate of back tax collections for the present fiscal
"Do they take into account probable expenditures called for by new year is $280,000,000. To obtain this amount it will be necessary for
an
on
based
lobe
appear
they
taxable
estimate
of the
legislation? As
collect an average of $23,300,000 a month. For the first five
income of corporations and individuals for the year 1927, I assume it us to
year the average is a little less than
would be impossible to secure more accurate figures before the tax re- monfhs of the present fiscal
turns on income for 1927 are filed and the first payments made, which $18,000,000 per month.
Finally, as pointed out above, the estimated expenditures in the budget
would be the 15th of March, 1928. If more accurate estimates could
be made at that time, what would be the effect of not passing the bill message do not take into consideration new legislation. Through a
until after March 15? Would it make the administration of the law careful survey by your committee, it should be reasonably clear what
more difficult for the Government or materially inconvenience the tax- additional expendittges are to be occasioned by new legislation.
payer?
until
, You inquire what would be the effect of not passing the bill
"My object in making these inquiries is to ascertain what course
to act on the basis of
should be pursued, in order to comply .with the requirements of the after March 15, so as to permit the Congress
year
law passed by the Congress, which requires a yearly balancing of the reasonable certainty, at least in so far as the first half of the
it
budget.
1929 is concerned. In the usual course of Congressional action
"Very truly yours,
would not pass unitil very near that date anyway.
"REED SMOOT."
New Tax Law Effective as of Jan. 1.
Estimated Surplus Wiped Out.
the
In reply I wish to state that in the budget message which the PresiOn the assumption that a tax reduction bill will become a law at
dent transmitted to Congress on Dec. 7, 1927, the surplus for the fiscal present session of Congress, delay will occasion no loss to the taxpayers,
adminyear 1929 is estimated at $252,540,283, which represents the excess of or inconvenience either to them or to the Government from an
estimated total receipts over estimated expenditures, including debt re- istrative standpoint.
tirement from the sinking fund provided for by law and from foreign
In so far as excise taxes are concerned, it is just as easy to make
15.
repayments in accordance with existing legislation and procedure.
their reduction or repeal effective on April 15 as it is on March
bill
In so far as the corporation income taxes are concerned, the House
no
Revenue Bill Passed by House
makes the new law effective as of Jan. 1, 1927. It is, therefore, of
may
The revenue bill which was adopted by the House of Representatives consequence except as the first instalments, payable on March 15, It is
on Dec. 15 will, it is estimated, reduce internal revenue receipts by be affected, whether the bill becomes law in March or in April. par
approximately $290,000,000. This is $38,000,000 in excess of the esti- true that if the bill becomes law on the later date, then March 15 1926.
act of
mated surplus and $65,000,000 in excess of the figure set by the Treas- ments will have to be made on the basis of the Revenue any subseto adjust
ury as the maximum possible tax reduction. The disregard of the of- But it is perfectly possible, without inconvenience,
and fallunpaid
remaining
instalments,
ficial estimates and the adoption of a revenue bill which fails to pro- quent reduction in rates to the
15, or by returning a part of
vide revenue adequate to meet expenditures as presented in the budget ing due on June 15, Sept. 15 and Dec.
any payments made in full. And this is likewise true of individuals,
has created a new and serious situation.
to those whose incomes
Estimates of probable expenditures are made by the Director of the should the Congress finally decide to grant relief
of
brackets.
Secretary
by
middle
probable
made
the
are
the
revenue
in
fall
of
Estimates
Budget.
Government Through Postponement of Action
the Treasury. I have consulted the Director of the Budget and he in- No Loss to Taxpayers or
nothing
It seems to me both the taxpayers and the Government havebill until
forms me that he sees no reason to change in any way the estimates
enactment of the tax reducion
of expenditures for the fiscal year 1929 contained in the budget message. to lose by postponing the final
Dm.31 1927.]
TWE CHRONICLE
after March 15. From the standpoint of the taxpayers, as the estimate
of probable revenues at that time will be more reliable than the present
Treasury estimates, they will be relieved of the risk of obtaining no tax
reduction at all this year, or facing the even worse situation of a bill
which provides a reduction in excess of that which revenues permit.
From the standpoint of the Government, and particularly of this department, charged as it is with the responsibility of carrying out the
debt reduction program, it is of the greatest importance that we should
be able to proceed with the full knowledge that the revenues of the
Government will be adequate to meet its expenditures.
Very truly yours,
A. W. MELLON,
Secretary of the Treasury.
An item regarding the likelihood of delay by Congress
on the bill appeared in our issue of Dec. 24, page 3429.
President Coolidge Favors Delay on Tax Bill Unless
Secretary Mellon's Tax Cut Is Agreed to.
President Coolidge feels that the question whether action
on the tax reduction bill should be delayed until after March
15 is one for the Senate to decide, says Associated Press
.advices from Washington, Dec. 30, which add:
The President does not regard Secretary Mellon's reply to the suggestion
for delay of Chairman Smoot, of the Senate Finance Committee, as being
any recommendation to Congress for postponing action on the measure.
If the bill followed the recommendations of Secretary Mellon calling for
limitation of reduction to $225,000,000, the President believes, it was said
at the White House to-day, that the measure should be passed by the
Senate without delay.
The President feels that the Treasury's recommendations should be
adopted. Otherwise, he favors waiting until the tax returns next year are
In,so that complete information on Government income will be available.
3587
who was President of the American Steel & Wire Co., a subsidiary of the
Steel Corp. These vacancies may not be filled until the annual meeting of
stockholders in April. This is the first time, so far as can be recalled, that
Mr. Morgan has accepted an office in a large business enterprise. He is a
director in only one other large company,the Pullman Co., and has refused,
according to a set rule,to identify himself with any corporation in any public
capacity.
Subscriptions Received by "Bankers and Brokers' Committee" of United Hospital Fund.
James Speyer, Chairman, and Walter E. Frew, Associate
Chairman, of the "Bankers' and Brokers' Committee" of the
United Hospital Fund of New York, are much gratified by
"Wall Street's" response to this year's collection, contributions having been received in excess of $100,000, the amount
originally asked for. In addition to $94,000 previously
acknowledged (and referred to in these columns Dec. 10,
page 3054), the following contributions have been received
to date:
Previously acknowledged____$94,000
Clarence Dillon
1,000
Lehman Brothers
1,000
Arthur 0. Choate
500
Hartman K. Evans
500
Realty Associates
500
500
Alex. L. Sinsheimer
F. B. Keech & Co
35()
William Fahnestock
300
Continental Bank of N. Y.
250
Dr. Ernest Fahnestock
250
Freeman & Co
250
Hornblower & Weeks
250
Newborg & Co
250
Post & Flagg
250
Albert Rothbart
250
Jack W. Schiffer
250
E. Van Raalte
250
Mr.& Mrs. Paul Baerwald_.
200
James C. Colgate
200
Chas. E. Doyle & Co
200
Abraham & Co
100
Frederic W. Allen
100
Christian Arndt
100
Auerbach,Pollak & Rich'son_
100
Mrs. M.Bernstein
100
Block, Maloney & CO
Buell & Co
Carlisle, Mellick & Co
George C. Clark, Jr
Alan L Corey
Finch, Wilson & Co
First Nat'l Corp. of Boston_ Gruntal, Lilienthal & Co---Clarence Lewis
F. .1. Lisman & Co
S. Clifton Mabon
Bernard K. Marcus
Mr. & Mrs. S. C. Millett--J. K. Rice, Jr. & Co
Harold C. Richard
Colonel H. H. Rogers
H. Pendleton Rogers
C. D. Smithers
Harold Stanley
Lawrence Turnure & Co_ _ -Howard 0. Wood, Jr
Other contributions
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
000
J. B. Campbell Succeeds John J. Esch as Chairman of
Inter-State Commerce Commission.
Commissioner Johnston B. Campbell of Spokane, Wash.,
was on Dec. 30 unanimously elected as Chairman of the InTotal subscriptions for the
ter-State Commerce Commission to serve during the ensuing
year to date
$105,000
year in place of John J. Each. His election, it is pointed out
In a dispatch to the New York "Sun," is in accordance with ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
a fixed policy of rotating the Chairmanship among the ComJ. P. Morgan & Co., announce that effective to-day (Dec.
missioners for a single term.
31) Harold Stanley, heretofore President of the Guaranty
Co. of New York and Vice-President of the Guaranty Trust
J. P. Morgan Becomes Chairman of Board of United Co. of New York is admitted as a partner in the Morgan
States Steel Corporation—James A. Farrell Con- firms in New York, Philadelphia, London and Paris. Mr.
tinues as President —M. C. Taylor Finance Stanley will replace Dwight W. Morrow, who recently withChairman.
drew from the Morgan banking houses to become AmThe long-awaited announcement of the changes made bassador to Mexico.
necessary in the official makeup of the United States Steel
Corporation by the death last August of former Judge
It is reported that Benjamin Joy, Chairman of the board
Elbert H. Gary was made late in the afternoon of Dec. 27 of the United States & Foreign Securities Corp., an investafter the close of the stock market by the board of directors. ment trust controlled by Dillon, Read & Co., will resign to
The announcement, which was given out at 3:30 o'clock, become a partner on Jan. 1 of Morgan et Cie., the Paris
follows:
branch of J. P. Morgan & Co.
The Chairman of the board is no longer an executive
officer of the
company.
Mr. James A. Farrell continues as President of the Corporation and becomes its chief executive officer, under the direction and supervision of the
finance committee and the board of directors.
Mr. John Pierpont Morgan becomes Chairman of the board and Mr.
Myron C. Taylor becomes Chairman of the finance committee.
The consolidation of the Chase National Bank of the City
of New York and the Mutual Bank, uniting institutions with
combined capital, surplus and undivided profits exceeding
$105,000,000 became effective at the close of business Dec.
28. The merger as noted in our issue of Dec. 3 (page
3013) was approved by directors and stockholders of both
banks on Nov.28. As are suit of the merger, the capital of
the enlarged Chase National Bank has been increased from
$40,000.
,000 to $50,000,000 and the surplus from $25,000,000
to $40,000,000. Rights which were given to stockholders to
subscribe to shares of additional stock at a price of $325 a
share,in the ratio of one new share for five of the old, expired
Dec. 27. Of the new money raised by this offering, $75 a
share goes to the affiliated Chase Securities Corp., increasing
its capital and surplus by approximately $7,000,000. The
Mutual Bank, located at 49 West 33d St., will hereafter be
operated as the Mutual Bank Branch of the Chase National
Bank.
None of the directors of the Corporation when questioned
after the meeting would make any statement other than the
official one given out after the meeting.
At the time of his death Judge Gary was Chairman of the
board of directors, Chairman of the finance committee and
a director. It had been generally expected that Mr. Farrell
would become the chief executive of the Corporation.
Although Mr. Morgan has been elected Chairman of the
board, the directors in the formal announcement issued after
the meeting were careful to point out that the Chairman is
no longer an executive officer of the company. Mr. Farrell
assumes his duties as the Corporation's head under the
direction and supervision of the finance committee and the
directorate. The appointment of James A. Farrell as chief
executive officer, in addition to his duties as President,
required a change in the by-laws of the United States Steel
The banking house of Brow- n Bros. & Company leased on
Corporation. This revision was made at Tuesday's meeting. Dec. 26 five floors, mezzanine and vault spaces in the
Mr. Morgan, by the revision of the by-laws, will perform no executive building at 37
Wall Street for a term of one year with a
duties. He will preside over meetings of the board and be responsible in
a general way for the corporation's operations. He will be expected to give privilege of a renewal for six months pending the.erection
only a little, if any more, time to the business than he has in the past as a of a new building on the site of their present home, 59 Wall
director and member of the finance committee.
Street. The lease becomes effective April 30 1928.
Mr. Farrell, as the President and Chief Executive Officer, will be responsible directly for the management of the corporation. For the time
being at least, he will be the spokesman for the corporation and in that
capacity will succeed to a function which Mr. Gary had always reserved for
himself. He has been acting as Chief Executive Officer since Mr. Gary's
death.
Mr. Taylor, according to Wall Street's interpretation of the changes, will
be a good deal more than the nominal Chairman of the finance committee.
He is expected to devote the greater part of his time to the Steel Corporation. To a large extent, and probably with very little interference, he will
determine and carry out the financial policies.
No act on was taken toward filling the two vacancies on the board of
directors, those caused by the death of Mr. Gary and of William P. Palmer
Bernhard A. Duis, Vice-Pre- sident and head of the foreign
department of the National City Bank of this city resigned
on Dec. 28. Mr. Duis will retire to private life.
The National City Bank h- as purchased property at the
southwest corner of Broadway and 181st Street where it will
establish its Washington Heights branch. The• property
consists of one and two-story brick buildings.
--4--
3588
THE CHRONICLE
The stockholders of the United States Mortgage & Trust
Co. of New York at a special meeting on Dec. 30 authorized
the increase in capital stock from $3,000,000 to $5,000,000,
to which reference was made in our issue of Dec. 17, page
3299. The stock dividend of 33 1-3% and the sale to stockholders of additional stock in the ratio of one share to each
three shares held (exclusive of stock dividend) at $250 per
share, therefore becomes effective. Both the stock dividend
and the rights to subscribe will be issued to stockholders of
record at the close of business Dec. 31 1927.
The Guaranty Trust Comp-any of New York announced
on Dec. 24 three official appointments at its London Offices.
Stuart Robert Cockburn and Reginald Hale were appointed
Assistant Managers at the London Office, and Frederick
Charles Wallace was appointed Assistant Manager at the
Kingsway Office, also in London.
Albert H. Wiggin, Chairma- n of the Board of The Chase
National Bank, and Dr. Benjamin M. Anderson Jr., Economist of the bank, have received from the King of Italy degrees in the Royal Order of the Crown. Mr. Wiggin's degree is that of "Grande Ufficiale del Ordine della Corona
d'Italia," the English equivalent of which is "Grand Officer of the Crown of Italy," and is the highest rank in the
Order. Dr. Anderson's degree is that of "Ufficiale del Ordine della Corona d'Italia," or "Officer of the Crown of
Italy." Information regarding the honors came from the
Italian Ambassador Giacomo de Martino, and the degrees
were presented by Emanuele Grazzi, Royal Consul General
of Italy, who also presented diplomas from the Minister of
Foreign Affairs at Rome.
--4--
At a meeting this week of the executive committee of the
Board of Trustees of the Central Union Trust Company
of New York, A. T. Galloway, D. A. del Rio and H. P. Gibson were appointed assistant Vice-Presidents.
Opening of the new Sixth Avenue Bank of New York, the
latest bank to be chartered by the New York State Banking
Department, is scheduled for Jan. 3 1928, in the Hotel
Warwick Building, Sixth Ave. at 54th St. The application
to organize the bank was filed with the State Banking
Department on Dec. 16. The bank will start business with
an authorized paid-in capital of $750,000 and a surplus of
$250,000. The number of shares of stock is 7,500 with a
subscription price of $160 per share. The $200,000 excess
over capital and surplus will be set up as a reserve for contingencies after payment for furniture, fixtures and organization expenses and will later become part of surplus. The
entire capital and surplus are free to be invested in earning
assets. C. W. Korell, President, announces the personnel
of the organization as follows: Luther G. McConnell, VicePresident and Cashier, and Charles L. Doty,Vice-President.
Mr. Korell, Mr. McConnell and Mr. Doty are all former
Vice-Presidents of the Hamilton National Bank whose
directors recently voted to merge with the Interstate Trust
Co. Mr. Korell started his career with National Park Bank.
Mr. McConnell, prior to his association with Hamilton
National Bank, was connected with the Atlas Portland Cement Co., Acme Cement Corp., and was Vice-President of
he North American Cement Corp. Mr. Doty has been
associated with E. Naumberg & Co., and Manufacturers
Trust, and other banking institutions. The incorporators of
the Sixth Avenue Bank who will constitutethe Borad of
Directors are Henry Fruhauf, Fruhauf Brothers & Co.,
John T. Geery, Geery, Guthrie & Co.; Jules G. Horine,
Vorclone Co.; Louis Lauer, Lauer Manufacturing Co.;
Clarence Lewis, Indemnity Insurance Co. of North America
William Heyman, Heyman & Goodman; John A. Mullen,
of Mullen & Bloch, Attorneys; Otto A.Schroeder, Capitalist;
Howard Young, Howard Young's Galleries; C. W. Koren
and Luther G. McConnell.
[vol.. 125.
per share, at the rate of two shares of new stock for each
three shares of stock now held. The stock is quoted in the
open market at $700 per share. The sale of the new shares
will add $100,000 to the capital and $200,000 to surplus,
making the new capital $250,000 and new surplus $250,000
as against $150,000 capital and $50,000 surplus heretofore.
An annual meeting of the stockholders will be held on
Jan. 17 to act upon the proposal. The bank has declared a
Christmas bonus ranging from one week's salary to one
month's salary, and an increase in the salaries of employees,
both depending upon the length of service. The bank,
which is located at 73 Mulberry Street, Manhattan, was
incorporated in August, 1924, to succeed the private banking business conducted by the Prise() family. Until a
few months ago practically the entire capital stock was
owned by the Prisco family, but carrying out the customer
ownership policy now employed by many institutions, several hundred shares of the stock recently came into the
hands of the public. The bank has paid dividends of $10
per share the last two years.
W. C. Langley, of W. C. Langley & Co., has been elected
a director of Chemical National Bank of New York.
- Co. of Boston will open for
The Lee, Higginson Trust
business on Jan. 3 on the fourth floor of the Lee, Higginson
office building, 50 Federal Street, adjoining the firm's offices
at 70 Federal Street. Besides acting in a trust capacity,
the institution will engage in banking in all its branches,
accepting deposit accounts, subject to cheek, a convenience
which hitherto Lee, Higginson & Co. has not been in a
position to furnish its clients. Items regarding the new
trust company appeared in these columns Oct. 22, page 2223,
and Dec. 24, page 3432. The officers of the institution are:
Chairman of the Board, George C. Lee; President, Charles E.
Cotting; Secretary, David H. Howie; Treasurer, Winthrop
W. Spencer; Assistant Treasurer, Arthur I. Glidden; Trust
Officer, Malcolm C. Ware; Trust Committee, Charles
Francis Adams, Charles E. Cotting, Francis C. Gray,
Francis L. Higginson, Arthur N. Maddison and L. Edmund
Zacher.
The directors of the Mount Kisco National Bank & Trust
Co., Mount Kisco, N. Y. have declared the regular dividend
of 5% and an extra 12% dividend, payable Jan. 11928.
That the recently increased
- capital stock of the United
States Trust Co. of Boston has been placed on a regular
dividend basis of $12.50 a share through the declaration by
the Board of Directors of a semi-annual distribution of
$6.25 a share, was reported in the Boston "Transcript" of
Dec. 21. An extra dividend of 75 cents a share was also
declared, both dividends being payable on Jan. 3 to stockholders of record Dec. 20. In continuation the paper referred to said:
This is the first dividend to be declared on the bank's stocks ethoe
the 100% stock dividend. On the old stock the dividend rate was $25
per annum, so that the present disbursement is equivalent to the same
basis. Assuming that the extra dividend is continued semi-annually the
dividend would be equivalent to $28 on the old stock.
•=—
George Mason La Monte, State Director, and Chairman
of the Executive Committee of the Prudential Insurance
Company of America, and President of the firm of George
La Monte & Son, manufacturers of safety paper, died suddenly in Hotel Weylin, New York City, on Dec. 24. Mr.
La Monte was 64 years of age. In 1911 Mr. La Monte
served a term in the lower house of New Jersey and from
1912 to 1916 he was the New Jersey State Commissioner
of Banking and Insurance. He was nominated for the
U. S. Senate in 1918, but was defeated in the election by
Governor (now Senator) Walter E. Edge. Mr. La Monte
was also President and a director of the First National Bank
of Bound Brook, N. J., a director of the Delaware & Bound
Brook Railroad. He was likewise President of the New
The American-Exchange Irving Trust Co. of New York Jersey State Library Association.
announce that, in addition to the present arrangements for
The Jersey "Observer" of Dec. 28 reports that the stockGroup Life Insurance and Retirement and, pending the prepholders
of the Union Trust and Hudson County National
Savings,
aration of a more comprehensive plan for Thrift and
it will make a cash distribution this year to the clerical staff Bank, Merchants National Bank, and the Pavonia Bank,
up to two weeks'additional pay according to length of service. all of Jersey City, at meetings Dec. 27, voted favorably on
the plans to merge the three institutions. Previous refer-
The directors of Prise() St-ate Bank of New York voted ence to the plans appeared in these columns Nov. 26, page
on Dec. 21 to increase the capital of the bank from $150,- 2893. The enlarged institution will be known as the Hudson
000 to $250,000. The sale of 1,000 additional shares of stock County National Bank, indicating (says the "Observer")
was authorized and will be offered to stockholders at $300 county-wide influence. The paper quoted adds:
DEC. 31 1927.]
THE CHRONICLE
The name was also chosen with the idea that some day legislation will
be enacted at Washington and Trenton providing for branch banks beyond municipal limits. When such acts are OR the Federal and State
statute books the Highland Trust Company of Union City, a subsidiary,
will become a branch of the Hudson County National Bank.
Officers for the Consolidated institution will be chosen
Jan. 10.
Senator Edward I. Edward- s announced on Dec. 28 his
resignation as Chairman of the board and a director of the
First National Bank of Jersey City, effective about Jan. 1.
According to the Jersey "Observer," Senator Edwards issued
the following statement:
"Owing to my senatorial duties in Washington and the increased demands upon my time as an executive of the New Jersey Bankers' Security
Company, together with other private interests, I have tendered my
resignation as Chairman of the Board of Directors of the First National
Bank of Jersey City."
3589
Other officers are: Frank H. Tuft, C. Edwin Hunter and
Albert Wunderliek, Vice-Presidents, and W. A. Sullivan,
Cashier. Mr. Tuft is President of the Metropolitan Trust
Co. of Philadelphia, and Mr. Sullivan was formerly with the
Continental-Equitable Title & Trust Co. of that city. The
directorate of the new bank includes the following: Thomas
A. Fitzgerald, A. Roy Robson, E. B. Hunt, Frank J. MeNeive, Daniel H. Barrow, Albert B. MacGregor, R. B.
Mildon, Alexander Wilson, 3d, Dr. Howard S. Busier and
Maurice Bower Saul. The authorized capital of the institution is $100,000, with surplus of $50,000.
On Dec. 9 the American Security & Trust Co. of Washington, D. C., entered its 39th year of service. Starting in
1889, it now has deposits of $31,558,375 and resources of
$39,087,401. The capital stock is $3,400,000. Surplus and •
undivided profits exceed $6,700,000. From the Washington
We learn that with the change in the name of the Ber"Post" of Dec. 9 we take the following:
genfieltl National Bank to the Bergenfield National Bank
One of the most important events in the recent banking history of Wash& Trust Co., of Bergenfield, N. J., effective on Dec. 10, ington, as well as in the life of the American Security & Trust Co., was
the institution increased its surplus from $50,000 to $75,000, the merger with the Home Savings Bank in 1919, this transaction not only
nearly
the resources of the trust company but also providing
giving it a combined capital and surplus of $175,000. On it with doubling
three well-located branches. The company to-day operates four
Jaauary 7 the institution will occupy new banking rooms, branch offices, all located in attractive bank buildings equipped with
every modern banking facility.
giving it larger quarters, with increased facilities.
On Dec. 6 the American Trust Co. of Baltimore declared
The stockholders of the Irvington National Bank of
a semi-annual dividend of 2% ($1 a share) on its capital
Irvington, N. J., will meet on Jan. 10 to vote on a proposal
stock (par value $50 a share), payable Jan. 1 1928 to stockto increase the capital of the institution from $250,000 to
$300,000. If present plans are ratified the new stock will holders of record Dec. 20.
be offered to present shareholders at $400 in the ratio of
Waldo Newcomer, Chairman of the Board of Directors of
one share of new stock for each five held. The increased the Baltimore Trust Co., Baltimore, and President of the
capital will become effective on Feb. 10, 1928.
Baltimore Clearing House, has been named a member of
the advisory board of the Bankers' Investment Trust of
At a special meeting of th- e shareholders of the Second America,
according to the Baltimore "Sun" of Dec. 6, which
National Bank of Atlantic City, held Dec. 12, the capital went on
to say:
stock of the institution, which was $300,000 divided into
This company will be nation-wide in its operations and will have an
3,000 shares of a par value of $100 each, was changed under authorized capital of 5,000,000 shares of $10 par value 6% preferred
the provisions of Section 5139 Ti. S. R. S., as amended Feb. stock and 5,000,000 shares of no-par common stock.
The trust has been formed under Pennsylvania laws, making it subject
25 1927, into 12,000 shares of a par value of $25 each.
to the rigid restrictions of the Pennsylvania Securities Commission. It
At the close of business Oct. 10 1927 the institution had has been patterned after the English and Scottish type of investment
combined surplus and undivided profits of $467,258; de- trust.
posits of $5,235,793 and total resources of $6,336,475. The
On Dec. 9 the directors of the Baltimore Trust Co., Baltibank's officers are as follows: Isaac Bacharach, President; more, announced the election of Iredell W. Iglehart, as a
Samuel C. Clark, Vice-President; C. E. Wolfinger, Vice-Pres- Vice-President, according to the Baltimore "Sun" of Dec.
ident and Cashier, and Louis A. Bell, Assistant Cashier.
10. Mr. Iglehart, who formerly was associated with the investment banking firm of Hamb/eton & Co., will assume his
The Board of Directors of the Tradesmens National
new duties Jan. 1. His election, it was said, follows the reBank of Philadelphia have declared an extra dividend of
cent resignations of Laurence Jones and E. Milton Berry as
2%, payable to-day (Dec. 31) to stockholders of record at
Vice-Presidents. Mr. Jones resigned to enter the investment
the close of business Dec. 28.
banking business in Baltimore and has just established his
That a consolidation of int- erests between the Guarantee own firm. Mr. Berry became Vice-President of the InterTrust & Safe Deposit Co. of Philadelphia and the Chelten state Trust Co.of New York.
Trust Co. of that city (Germantown) had been arranged
was reported in the Philadelphia "Record" of Dec. 23.
Control of the Germantown institution, it was stated, will
be secured by the Guarantee Trust & Safe Deposit Co. by an
exchange of stock, share for share. The directors of both
companies have approved the move. To carry out the plan,
the Guarantee Trust & Safe Deposit Co. proposes to increase
its capital stock from $1,000,000 to [$1,500,000. Of the
additional stock, 4,000 shares will be exchanged for stock of
the Cheltea Trust Co. Both stocks have a par value of $100
a share. The remainder of the new stock of the Guarantee
company, it was said, will be issued to shareholders at $200
a share. The Chelten Trust Co. has resources of $5,734,692,
while the Guarantee Trust & Safe Deposit Co.'s resources
are $15,970,000. Herbert W. Goodall is president of the
latter institution, while Sheldon Potter heads the Chelten
Trust Co. Mr. Goodall will be president of both the institutions, it was said. It was furthermore stated that the
Chelten Trust Co. will be continued as a separate institution.
The Pennsylvania State Corporation Bureau on Nov. 29
announced approval of the incorporation of the Abington
Bank & Trust Co., Abington, Pa., with a capital stock of
$150,000, according to the Philadelphia "Ledger" of Nov
30. Charles W. Rueter of Roslyn, Pa., is Treasurer of the
institution.
A new financial institution has been organized in Lansdowne, Pa.—the National Bank of Lansdowne—according
to the Philadelphia "Ledger" of Dec. 16. Frederick W.
Kelly, who was Chairman of the organization committee, has
been elected President of the new institution, which will open
for business on Jan.3 1928, at Lansdowne and Madison Ayes.
Associated Press advices from Wheeling, West Va., on
Dec. 17, appearing in the Cincinnati "Enquirer" of the following day, stated that John A. Brandon and James E.
Brandon Jr., former President and Chief Clerk, respectively,
of tile closed First National Bank of New Cumberland, West
Va., following a hearing before Commissioner John W.
Kindelberger, were held for the Federal Grand Jury on that
day (Dec. 17) for alleged falsifying of reports made to the
Federal Banking Department. Both defendants gave bonds.
The complaint, it was said, against the Brandons was made
by H. A. A. Graham, Federal Bank Examiner and temporary
receiver of the institution which was closed a month ago by
the Federal Banking Department. The closing of the First
National Bank of New Cumberland, which had resources
of $458,200, was noted in the "Chronicle" of Dec. 3, page
3016.
The Pittsburgh "Post-Gazette" of Thursday of this week
(Dec. 29) reported that according to an announcement made
the previous night the Continental Trust Co. of that city
would be merged with the People's Savings & Trust Co. of
Pittsburgh, effective on that day, the business of the enlarged
institution being carried on at the quarters of the latter bank
at Fourth Avenue and Wood Street. The absorbed trust
company, it is understood, was capitalized at $450,000, with
surplus and undivided profits in the neighborhood of $350,000. Its deposits were approximately $1,500,000. Dr.
John R. Morrow, President of the Continental Trust Co.
since its organization in February 1903, is not, it is understood, associated with the enlarged People's Savings & Trust
Co., although some of the other officers and employees have
entered its service.
3590
THE CHRONICLE
Directors of the new bank for the Oakland district of Pittsburgh (to which reference was made in our issue of July 9
last, page 203) have announced that the formal opening of
the institution, which will be known as the Forbes National
Bank, will take place early in January in their recently
erected building at Fifth and Oakland Avenues. According
to the Pittsburgh "Post" of Dec. 16 the new institution is
capitalized at $300,000 with surplus of like amount. It will
conduct a general banking and trust business. Richard K.
Mellon,son of R.B. Mellon,President of the Mellon National
Bank of Pittsburgh, will head the new bank and associated
with him will be William S. Phillips, Vice-President and
Cashier, and Thomas H. McCandless, Assistant Cashier.
Mr. Phillips has been with the Mellon National Bank for
21 years. In addition to Mr. Mellon and Mr. Phillips, the
directors of the new bank are: Thomas S. Baker, John G.
Bowman,John F. Casey, E. E. Cole, A. Rex Flinn, Howard
M. Johnson, William S. Moorehead, Henry A. Phillips and
Edward R. Wpidlein.
A downtown office of the Union Trust Co., Cleveland, to
be located upon the Public Square side of the Cleveland
Hotel, and to be called the Terminal Square office, will be
opened on Dec. 27. The present quarters of the office will
be temporary. Permanent offices of the bank will be opened
in the Terminal Building, as soon as that building is sufficiently completed. John G. Armstrong, Assistant VicePresident, who has been chosen as Manager of the Terminal
Square office, began his banking career some thirty years ago
at the Park National Bank, which later consolidated with
the First National Bank, one of the banks which united to
form the Union Trust Co., seven years ago.
The Indianapolis"News"of Dec. 10 stated that a payment
of 40% of their claims would be made to the depositors of
the defunct J. F. Wild & Co. State Bank(which failed onJuly
30 the present year) on or before Dec. 20, a formal order
authorizing the co-receivers, Richard L. Lowther and
Eugene H. Iglehart, to make the first payment having been
approved by Judge Mahlon E. Bash of the Probate Court on
Dec. 9. The "News" went on to say in part, as follows:
[vol. 125.
out the details of the consolidation, and it is contemplated
that special meetings of the stockholders to pass upon the
plans as formulated by the committees will be held within
a short time, or the entire matter will be finally determined
at the annual meetings of the stockholders of the re4ective
banks, which have been noticed for Jan. 10 1928." The
"Free Press" furthermore stated that the plan of consolidation in no way affects the American State Bank of Highland Park, which is a separate and distinct institution
from the American State Bank of Detroit. A press dispatch
from Detroit on Dec. 20, appearing in the New York "Evening Post" of the same date, contained the following in regard to the proposed consolidation:
Terms of the merger call for the sale of 20,000 shares of American State
capital stock to the Griswold-First State at $400 a share. American
State stockholders have the option of exchanging their stock for GriswoldFirst State on a share for share basis.
Six promotions took place in the personnel of the Detroit
Trust Co., Detroit, on Dec. 22, according to the Detroit
"Free Press" of the following day. Henry Hart and Emmett
F. Connely, formerly Assistant Vice-Presidents, were elected
Vice-Presidents; Ernest K. Matlock, heretofore Trust
Investment Officer, was made an Assistant Vice-President,
and R. Y. Cutler manager of the real estate department;
Alfred Snyder, publicity and new business department, and
Selden B. Daume, trust department, were appointed Assistant Secretaries. Other officers of the bank were reelected. With regard to the new Vice-Presidents of the
company, the Detroit paper said:
Mr. Hart and Mr. Connely will head the bond department of the company. Mr. Hart is a well-known authority on municipal bonds. He
entered the bond department of the company in 1916 after practicing law
for one and one-half years in Detroit. Mr. Connely has been with the
bond department of the company since 1920, and is in charge of the sales
work. Both Mr. Hart and Mr. Connely are officers of the Detroit company, an affiliated organization with offices in New York, Boston, Chicago
and San Francisco.
The roster of the bank is now as follows: Ralph Stone,
Chairman of the Board; McPherson Browning, President;
Sidney T. Miller and James E. Danaher, Senior VicePresidents; Lawrence K. Butler, Charles P. Spicer, Harry L.
Stanton, Julius C. Peter, Charles E. Hilton (and Secretary),
Henry Hart and Emmett F. Connely, Vice-Presidents; WilJ. Thomas, Treasurer; Frederick J. McGavin, Julius H.
liam
The first checks will be sent to depositors early next week. There are
Raymond H. Berry and Ernest K. Matlock, AsMoeller,
three
into
been
divided
have
they
and
depositors
12,000
apprmdmately
Treasgroups and each group will receive checks on different days in order to sistant Vice-Presidents; Norton J. Miller, Assistant
avoid congestion.
R. Crusoe, Nathan C. Menta, Paul R. Barton,
urer;
Harold
The preferred creditors, whose claims amount to about $450.000. will be
Cutler, Alfred Snyder and Selden B. Daume, Assistpaid in full on or before the same date. The depositors will receive about R. Y.
preferred
and
to
depositors
payments
H. C. Van Every, Auditor; Ralph F. Khuen,
the
of
amount
Secretaries;
total
ant
the
and
$1.400,000
creditors will be approximately $1,850,000. Further payments will be manager of bond sales; Oscar L. Buhr, manager of corporate
made to depositors after other assets of the bank have been sold.
bond division, and D. H. Campbell, manager of municipal
The failure of the J. F. Wild & Co. State Bank, which bond division.
was capitalized at $100,000, was referred to in our issues of
Aug. 6 (page 739) and Aug. 20 (page 1013).
On Tuesday of this week (Dec. 27) formal action was
taken by the respective directors of the People's State Bank
The Detroit "Free Press" of Dec. 8 stated that, according of Detroit and the Wayne County & Home Savings Bank of
to Emory W. Clark, Chairman of the board of directors of that city looking towards a consolidation of the instituof the First National Bank of Detroit, a plan will be sub- tions, according to the Detroit "Free Press" of Dec. 28.
mitted to the respective stockholders of the First National The new organization, which will be known as the People's
Bank and its affiliated institution, the Central Savings Wayne County Bank, will have a total capital fund of
Bank, at their annual meetings in January, for a complete $36,500,000; deposits in excess of $250,000,000, and total
consolidation of the banks under the title of the First Na- resources of more than $290,000,000. According to the paper
tional Bank in Detroit. Continuing, the paper mentioned mentioned, it will rank fifteenth among the 40,000 banks of
America and thirty-fifth among all the banks of the world'
said:
These banks have been under the same ownership but operating under It will have 96 banking offices in Detroit and five affiliated
separate charters since 1919. The proposed change will not in any way
Park, Hamtramck and Fordson. Its
affect the customers or personnel of the banks, at either the main banking banks in Highland
offices or at any of the branches.
depositors will number 415,000. The statement announcing
When the plan is approved by the stockholders, the bank will operate the merger plan, which was issued jointly by John W.
under its national charter, which will allow the consolidated institution to
State Bank, and Julius H.
carry on every phase of the banking business heretofore handled under Staley, President of the People's
separate charters. The financial structure will show $7,500,000 capital, Haass, President of the Wayne County & Home Savings
$9,500,000 surplus and undivided profits in excess of $2,000,000.
(as published in the "Free Press") said in part:
of the First National Co of Detroit, the securities divi- Bank,
The relationship
sion of the First National Bank, is not affected.
Julius Haass will become Chairman of the board and John W. Staley
President of the enlarged institution. The board of directors and the entire official and clerical staffs will continue to serve in their respective
capacities. The head office of the bank will be in what is now the main
office of the Peoples State bank at Fort and Shelby Streets, which has one
of the largest six banking rooms in the country.
The main office of the Wayne County and Home bank, will be known as
the Griswold-Michigan office, and will continue to serve its clientele, but
with Increased facilities. All of the branches of the two banks will
continue to operate as at present, though in three or four locations branches
may be combined at some future time.
The capital of the enlarged bank will be the combined capital of the two
banks, the stockholders of each receiving share for share alike in the Peoples
Wayne County bank.
The respective directors of the Griswold-First State Bank
of Detroit and the American State Bank of that city announced on Dec. 20 that a union of the two institutions was
favored by both boards and tentative plans have been
agreed upon with respect to the methods of such consolidation, according to the Detroit "Free Press" of Dec. 21. The
plan contemplates, It was stated, an exchange of securities
by the stockholders of the American State Bank for shares
of the Griswold-First State Bank, provision also being made
Meetings of the stockholders of both the institutions will
through a syndicate of the directors of the Griswold-First be held on Jan. 10, it is understood, to ratify the proposed
State Bank, whereby such of the stockholders of the Ameri- consolidation.
can State Bank as do not desire to exchange may have an
The Detroit "Free Press" of Dec. 24 stated that directors
Opportunity of disposing of their shares for cash. "Committees of the respective banks have been appointed to work of the Bankers' Trust Co. of that city at their annual meet-
DEC. 31 1927.]
THE CHRONICLE
ing had re-elected all officers of the company for the ensuing
year, according to an announcement the previous day,
Dec. 23. The surplus fund of the institution was increased
to $700,000 from $650,000 and the regular quarterly dividend of 3%, payable Jan. 3 to stockholders of record Dec.
27, was declared. The re-elected officers were named as
follows: Arthur Webster, Chairman of the board; Walter C.
Brandon, President; Frank W. Hubbard, Edwin Denby and
Ralph Nixon, Vice-Presidents; Harry W. Hanson, Secretary
and Treasurer; and Bixday E. Cole and Arthur A. Prabel,
Assistant Secretaries and Assistant Treasurers.
3591
he present time the extent of these distributions cannot be estimated, but
hat they will be substantial.
Adolph S. Helquist, President of the Liberty Trust &
Savings Bank, of Chicago, was the recipient on Dec. 12 of
a gold book representing a quarter of a million dollars in
new business, presented by customers of the bank. The
occasion was the fifteenth anniversary of this institution.
The testimonial contained the signatures of West Side
business men who were active in obtaining new accounts
and new friends for their bank. The Liberty Trust &
Savings Bank located at Roosevelt Road and Kedzie Avenue, was organized Dec. 12 1912 with a capital of $250,000;
to-day it reports an invested capital of over $1,000,000
and resources of $12,000,000. At a meeting of the directors,
Dec. 8, the surplus of the bank was increased from $250,000 to $300,000, and the regular 21A% quarterly dividend
was declared.
According to the Chicago "Journal of Commerce" of Dec.
22, announcement was made on Dec. 21 that Murray MacLeod, President of the Albany Park Bank of Chicago, will
be President of a new institution formed by the consolidation
of the Albany Park National Bank and the North Park
Trust & Savings Bank of Chicago, which will begin operations on Jan. 7. The new organization will be known as the
Albany Park National Bank & Trust Co. Continuing the
That the respective stockholders of the Garden City Trust
paper mentioned said:
Co., Garden City, Mo., and the Bank of Garden City of that
The Albany Park stockholders are scheduled to meet Jan. 19 to approve
an increase from $100,000 to $300,000 in capital stock and the exchange
of additional stock for shares of the North Park bank under the terms of the
merger agreement.
It is planned also to vote upon an increase of $25,000 in surplus, which
would make the bank's surplus $100.000. The combined resources will
total $6,000,000.
Stockholders of the North Avenue State Bank of Chicago
at their regular annual meeting on Jan. 10 1928, will be
asked to ratify a proposed increase of $100,000 in the bank's
capital, raising the same from $500,000 to $600,000, to be
effected by the distribution of a 20% stock dividend out of
undivided profits account pro rata to stockholders of record
Jan. 10. The personnel of the North Avenue State Bank is
as follows: Landon Cabell Rose, President; Thomas A.
Fitzsimmons, Vice-President; Roscoe L. Tearney, Cashier;
W. G. Zander, Secretary; Walter R. Lotz, George B. Frick,
Herbert E. Krantz and Vincent E. Ferrara, Assistant
Cashiers, and Berthold Mueller, Manager of the Foreign
Department.
The Lake State Bank of Chicago has changed its title to
the Old Dearborn State Bank and removed to new quarters
at the corner of Wabash Avenue and Lake Street, that city.
Formal opening of the new banking rooms took place on
Dec. 7. The then approaching changes were referred to in
the Chicago "Journal of Commerce" of Dec. 2, which said:
The Lake State Bank will move into its new quarters tomorrow in the
24-story building recently completed at the northeast corner of Lake
Street and Wabash Avenue, site of historic Fort Dearborn, on the 124th
anniversary of the occupation of the fort by the First Regiment, United
States Infantry. The bank takes a new name and beginning a new era
as the Old Dearborn State Bank. Formal opening has been set for next
Wednesday. A historical display is being arranged for the opening. The
American Fur Company bought the government factor's cabin in 1818,
fifteen years after the troops moved in, and did a banking business in
connection with trading with the Indians.
A new Chicago financial institution—the BelmontSheffield Trust & Savings Bank—was opened in temporary
quarters at 1002 Belmont Ave., that city, on Dec. 17, according to the Chicago "Journal of Commerce" of Dec. 18*
Construction of a six-story bank and office building will
begin, it was stated, early in 1928. • It will be located at the
southwest corner of Belmont and Sheffield Avenues and will
cost, it is stated, in the neighborhood of $600,000. Completion of the structure is expected by January 1929. The
new bank is capitalized at $200,000 with combined surplus
and contingent fund of $70,000. Loop depositary facilities,
it was said, would be taken care of through the State Bank
of Chicago. The personnel of the institution is as follows:
J. H. Johnson, President; Earl M. Anderson (and Cashier),
C. J. Schwarting and George F. Anderson, Vice-Presidents,
and Roy Segerstein, Assistant Cashier.
With reference to the approaching merger of the Standard
Trust & Savings Bank of Chicago with the National Bank
of the Republic of that city, noted in our issue of Nov.5 1927,
page 2482, the Chicago "Journal of Commerce" of Dec. 16
printed the following:
Another step in the physical consolidation of the Standard Trust tz Savings Bank with the National Bank of the Republic has been taken with the
declaration of the regular dividend of 23,5% on the stock of the former
the authorization of a Christmas bonus for employees and announcement
of the plan for distributing to stockholders assets not included In the
merger•
Stock of the Standard Trust deposited will be exchanged for National
Bank of the Republic shares under the plan recontlY approved by the stockholders of both institutions and in addition "certificates of interest- will be
given for each share turned in. These certificates will entitle Standard
Trust stockholders to share equitably in whatever distribution of assets
I. later made. Charles S. Castle, President of the bank, points out that at
place, had on Dec. 16 voted to consolidate the institutions
was reported in special advices from Garden City on Dec.
16 to the St. Louis "Globe-Democrat." The new bank, the
dispatch stated, will be entitled the Garden City Bank and
will have a capital of $34,000 with surplus of $10,000.
Closing of the Huntsville Trust Co., Huntsville, Mo., by
its directors on Nov. 21, following the sudden death of its
President on Nov. 16, was reported in a special dispatch
from Jefferson City, Mo., on Nov. 21 to the St. Louis
"Globe-Democrat." The institution, it was said, was the
forty-fourth State bank to close in Missouri since the first
of the year. The dispatch said in part:
The directors wired Finance Commissioner S. L. Cantley of their action
in ordering the doors of the company closed and he directed Bank Maininer F. A. Guiles to go to Huntsville and take charge.
The President of the company, E. C. Treman, died suddenly last Wednesday. There are no details of the failure available here otherwise than the
last sworn statement of condition of the company, made as of the call
issued by the Finance Department as of Aug 25 1927.
This showed loans, $204,951.88; cash on hand and due from other banks
and bankers, $21,171.90: bills payable, $60,000; capital, $50,000; surplus, $5,000; total deposits, $159,000, and total resources, $275,698.29.
Caine Halliburton is Secretary of the company, which was chartered in
1921 and was successor of the failed Hammett Banking Co., which hid
operated for 50 years.
Purchase of a controlling interest in the National Exchange Bank of St. Paul, St. Paul, Minn., by David' C.
Shepard, President of the institution, in association with
members of the Shepard family, was announced in that city
on Dec. 12, according to the St. Paul "Pioneer-Press" of the
following day. The Shepard group, it was stated, long
prominent in the business and social life of the city, purchased the stock of the National Exchange Bank formerly
held by the American National Bank, Merchants' National
Bank and First National Bank, all of St. Paul. Mr. Shepard, who formerly was Vice-President of Finch, Van Slyck
& McConville, was elected President of the National Exchange Bank in April 1926 and will remain in that position,
becoming permanently identified with the institution. He
announced, it was stated, that management of the institution will continue under its present officers. These include,
besides Mr. Shepard, C. E. Johnson, Vice-President; C. T.
Dedon, Cashier; D. L. Carroll, Manager of the credit department, and A. W. Warn, Assistant Cashier. Mr. Shepard
was further reported as saying that the steady increase in
deposits have convinced him that the bank is assured of
a splendid opportunity for service to the residents and business interests of St. Paul and the Northwest. At the last
national bank call, Oct. 10, it was stated, the bank's deposits
were $4,255,293 and its resources $4,774,510, a substantial increase over 1926. The bank is capitalized at $250,000 with
a surplus of $50,000. The "Pioneer-Press" furthermore
stated that the Shepard fortune was founded by the late
D. C. Shepard, pioneer railroad builder and associate of
J. J. Hill, the "empire builder," and has been used to develop many lines of St. Paul business. .
&dykes from Bismarck, N. D. on Dec. 13, appearing in
the St. Paul "Pioneer-Press" of the following day, reported
that the North Dakota State Banking Department on
Dec. 13 had announced the closing of the Colgate State
Bank at Colgate, Steel County, a small institution with
combined capital and surplus of $12,000 and ,deposits of
$52,000.
3592
THE CHRONICLE
A dispatch from Tulsa, Okla., by the Associated Press on
Dec. 10, appearing in the "Oklahoman" of the following day,
stated that Colonel Patrick J. Hurley had resigned the Presidency of the First Trust & Savings Bank of Tulsa, and Omer
K. Benedict, heretofore Vice-President, Secretary and Treasurer, had been unanimously chosen President in his stead.
Mr. Hurley, it was said, would continue to serve as a director and also as a director of its affiliated institution, the
First National Bank of Tulsa. At the same meeting, the
directors elected C. C. Roberts Vice-President, Secretary and
Treasurer, to succeed Mr. Benedict in these capacities. Mr.
Roberts, it is stated, was Chairmen of the Board of Directors of the United Savings & Loan Association, and an experienced banker and financier.
[VoL. 125.
head of the American Turpentine and Tar Company, is also
Vice-President of the Marine Paint & Varnish Co. Mr.
Reuther has been active in various civic capacities, and for
nine years served as a member of the New Orleans School
Board. Mr. Reily, besides being President of the Standard
Coffee Co., Inc., is Vice-President of Wm. B. Belly & Co.,
Inc. Mr. McCloskey is a son of the late Hugh McCloskey,
who for many years was Chairman of the Board of the
Hibernia Bank & Trust Co. Mr. Wilmot has been affiliated
with the Hibernia Bank & Trust Co. and the Hibernia Securities Co., Inc., since leaving college. The newly elected
directors increase the directorate of the Hibernia Bank &
Trust Co., to thirty-five, representing twenty-eight different
lines of business.
The First National Bank of Comanche, Tex., with
The Bank of Ayden, Ayden, N. C., an institution capitalized
into voluntary liquidation on
at $100,000, was reported closed in the following press dis- capital of $100,000, went
with the First State Bank of
merged
now
is
and
Ral7
the
Dec.
in
appearing
1,
Dec.
on
patch from Kinston, N. C.,
Comanche.
eigh "News and Observer" of Dec. 2:
today
The Bank of Ayden, State institution at Ayden, failed to open
de(Dec. 1). The officers announced that "frozen loans" and dwindling
the
close
to
decided
posits had caused the suspension. The directors
said
institution after a conference yesterday. J. R. Smith, the President,
frozen
It is believed depositors will not lose anything. Except for the
will
loans the affairs of the bank are in good shape, it is said. Operations
not be resumed.
A. J. Orme, heretofore a Vice-President of the Atlanta
Trust Co., was unanimously elected President of the institution at a meeting of the directors on Dec. 14 to succeed
Eugene R. Black, according to the Atlanta "Constitution"
of Dec. 15. Mr. Black will become Governor of the Atlanta
Federal Reserve Bank in January as noted in our issue of
Dec. 17, page 3286. Mr. Orme, it is understood, will not
assume his duties as President until after the annual meeting
of the bank's directors next month. The new Presidentelect, who is one of the best known bankers in the State
of Georgia, joined the Atlanta Trust Co. as a Vice-President
in 1922. He was born in Atlanta and attended the public
schools of that city. Later he was graduated from the
Virginia Military Institute, Lexington, Va., and the Atlanta
Law School. He practiced law in Atlanta from 1904 to
1922, when he entered the Atlanta Trust Co. The Atlanta
Trust Co. is capitalized at $1,500,000. Its Vice-Presidents
at present,in addition to Mr.Orme are Snowden McGaughy,
Charles H. Black and Robert E. Harvey.
The title of the Central National Bank of Albany, Ala.
has been changed to the Central National Bank of Decatur,
Ala. to conform to change in name of place in which the
bank is located.
Effective Nov. 29 the City National Bank of Rockwood,
Rockwood, Tenn., with capital of $50,000, was placed in
voluntary liquidation, the institution being absorbed by
the Rockwood National Bank of the same place.
The Citizens' National Bank of Weatherford, Texas, and
the Parker County National Bank of that place, were consolidated on Dec. 6, under the charter and corporate title of
the Citizens National Bank of Weatherford with capital
stock of $100,000.
We are advised by the Los Angeles First National
Trust & Savings Bank, Los Angeles, that R. B. Hardacre,
President of the California Bankers' Association, on Dec. 1
was elected Executive Vice-President of the institution,
effective Jan. 1,according to an announcement by the bank's
President, Henry M. Robinson. Mr. Robinson said:
The coming of Mr. Hardacre into the Los Angeles First National in
the capacity of Executive Vice-President gives additional strength to an
already outstanding executive group as he has been for nearly twenty
has
years one of the banking personalities of Southern California. He
been a Vice-President and Director of the Security Trust & Savings Bank,
the
of
director
having first entered their service in 1908. He is also a
Gladding McBean Corporation and of the Pacific Indemnity Co. Before
coming to California Mr. Hardacre was connected with the First National
Bank of Chicago, his native city.
The Los Angeles "Times" of Dec. 14 stated that favorable
progress in the first year of business was reported to the
stockholders of the Pan American Bank of California of that
city at the annual meeting on Dec. 13. F. W.Smith, President of the institution, reported that the bank had acquired
17,000 accounts in eleven and one-half months of actual operation and has deposits totaling $5,800,000. Commercial accounts, according to Mr. Smith's report, it was said, increased in the same period from 364 on the opening day to
3,683, and savings accounts from 251 to 12,934. The following officers were re-elected for the ensuing year as follows:
F. W. Smith, President; Will E. Morris, Executive VicePresident; John H. Roberts, Vice-President; B. B. Bening,
Vice-President and Secretary; Theodore T. Hull, Vice-President and Counsel; Earl Akers, Vice-President and Trust
Officer; S. A. Lanning, Cashier; F. L. Wilkins, Assist VicePresident; H. S. Pierce, James M. Mayers, William H.
Laughlin and W.S. Short, Assistant Cashiers; W.J. Ramsey
Jr., Assistant Trust Officer, and J. 0. Miller Asst. Secretary.
A charter was issued by the Comptroller of the Currency on Dec. 22 for the National Bank of Gulfport, Miss.,
a conversion of the Bank of Gulfport. The new bank is
capitalized at $125,000. L. N. Dantzler is President and
E. S. Taylor, Cashier.
At a meeting on Dec. 16 of the Board of Directors of the
Clearing
(Miss.)
Meridian
the
Securities Company (an auxiliary of the Los Angelesof
First
meeting
On Dec. 6 at a
and R.
House Association C. M. Lawrence was elected President First National Trust & Savings Bank), C. F. Seidel
company.
the
of
s
Vice
President.
elected
-President
Vicewere
Jr.
Carter,
Parsons
H.
J.
B.
and
and Manager
Mr. Seidel has been with the Los Angeles-First National
C. Francis Cocke has succeeded his father, the late Lucian Trust & Savings Bank since June 26 1904 when he entered
H. Cocke, as a Vice-President and a director of the First the service of the then Los Angeles Trust & Savings Bank,
National Exchange Bank of Roanoke, Va., according to the the name of which was changed on Sept. 16 1922 to the
Pacific-Southwest Trust & Savings Bank. Mr. Seidel was
New York "Journal of Commerce" of Dec. 13.
successively promoted to Assistant Cashier and to Junior
The National Bank of Commerce, Tampa, Fla. (cap- Vice-President of the bank, which was consolidated on Sept.
italized at $200,000) went into voluntary liquidation. The 1 last with the First National Bank of Los Angeles, under
institution has been taken over by the Citizens' Bank & the name of the Los Angeles-First National Bank. He has
Trust Co. of Tampa.
also been with the First Securities Company since the latDirecter's inception. Mr. Seidel prior to coming to Los Anof
of
the
Board
At the regular December meeting
on
was a member for three years of the Board of Trade
Orleans
geles
New
of
Co.
Trust
&
Bank
Hibernia
the
of
tors
E.
C.
his native city. Mr. Parsons has been in the
Chicago,
of
follows:
as
Dec. 16, five new directors were elected,
business since 1914, with the exception
Co.;
banking
t
Tar
investmen
&
e
Turpentin
American
President
r,
Meriwethe
December 1918, when he served for
to
same
1917
April
from
of
the
of
company
bakery
Joseph Reuther, head of the
, Junior grade,
a
'name; W. B. Reny Jr., President of the Standard Coffee the duration of the World War as lieutenant
organizers
the
of
one
was
He
Navy.
wholeStates
in
the
United
Bros.,
McCloskey
of
Co., Inc.; Harry B. McCloskey
Baer, Brown
sale grocers, and Willis G. Wilmot, Vice-President, Hibernia in 1920 and a member of the bond house of
First SecuriSecurities Co., Inc. Mr. Meriwether has been a resident of and Parsons, and became associated with the
his firm on Oct. 1 1921.
New Orleans since 1905, and In addition to his activity as ties Company when it acquired
DEc. 31 1927.]
THE CHRONICLE
Mr. Parsons, a native of Schuyler, Neb., received his education in Los Angeles and Long Beach schools and was in
business in San Francisco for a short time before coming
to
Los Angeles and Pasadena.
The election of Mr. Seidel and Mr. Parsons follows closely
the electton of E. C. Sterling as Vice-President, whose firm
of Stevens, Page & Sterling was recently consolidated with
the First Securities Company.
The Seattle National Bank of Seattle, Wash., has
announced the declaration of three dividends by the directo
rs
of the bank. First, decision to pay the stockholders,
out
of the earnings of the bank, a stock dividend of 100%;
second, the declaration of a quarterly dividend of 6%,
payable Jan. 3 to stockholders of record at the close of busines
s
Dec. 31; and third, decision to pay also a special dividen
d
of 30%, amounting to $300,000, with the understanding
that
this amount will be used in paying for stock of a
Seattle
National Investment Company, to be organized
and conducted in conjunction with the business of the bank.
At
the annual meeting of the bank's stockholders on
Jan. 10
the board of directors will submit their dividend action
to
the stockholders for approval.
A special dispatch from San Francisco to the "Wall
Street
Journal" on Wednesday, Dec. 21, stated that the
San Francisco Bank of that city had declared an extra dividen
d of
$50 a share in addition to the regular quarterly
dividend of
$60 a share, both payable Jan. 3. Previously, it was stated,
the hastitution had been paying $52.50 extra and $60
quarterly.
H. R. Gaither, heretofore Vice-President and Cashier
of
the Pacific National Bank of San Francisco since its organization in 1924, was elected President of the institu
tion on
Dee. 19 to succeed E. W. Wilson, who recently
resigned,
according to the San Francisco "Chronicle" of
Dec. 20.
At the same meeting Verne R. Pentecost and Homer
Petner,
formerly Assistant Vice-Presidents, were elected
VicePresident and Cashier and Vice-President and
Secretary,
respectively; E. 0. Kaufmann, heretofore an
Assistant
Cashier, was promoted to a Vice-President, and
J. T.
Morrice was made an Assistant Cashier. Roy C.
Ward,
former President of the Commercial Club, it was
said, was
made a director. It was also stated that other
officers are
to be named at a later meeting of the directors,
according to
J. W. Mason, Chairman of the board. In an
announcement
of the (then) proposed election of Mr. Gaither as
head of
the institution Mr. Mason was reported in the San
Francisco "Chronicle" of Dec. 7 as saying that Mr.
Wilson, the
former President of the bank and one of its founder
s, had disposed of his stock in the institution and retired
from the
banking business. The same paper, furthe
rmore, reported
Mr. Mason as saying in his letter to the stockholders
that the
Pacific National Bank was an independent
institution and
would always continue as an independent local
bank. The
bank is capitalized at $1,000,000 with surplus
of $200,000,
and has total resources of $10,000,000.
3593
A still more recent issue of the paper mentioned (Dec. 1)
reported that, according to official announcement, four
new California banks were added to the United Bank &
& Trust Co.'s chain of institutions on Nov. 30, namely the
First National Bank of St. Helena, the First Savings Bank
of St. Helena, the Bank of Ripon, and the First National
Bank of Ripon. These institutions, it was stated, were
purchased through the French-American Corporation and
probably would be operated by the Security Bank &
Trust Co. of Bakersfield. The two St. Helena banks, it was
stated, have operated under the same management for many
years and are among the oldest banks in the Napa valley.
They have resources of more than $2,000,000 and are
headed by F. L. Alexander with F. L. Alexander as Cashier.
The personnel of the institutions, it is understood, will remain unchanged. With regard to the two Ripon banks,
it
was said, that their combined resources are estimated at
more than 8900,000. H. L. Dickey is President of both
banks and T. C. Smithers, Cashier. The Bank of Ripon
was founded in 1910 and the First National Bank in 1921.
The institutions will be consolidated on the first of the
year and the enlarged bank located in the Bank of Ripon
Building. According to President Dickey, the personnel of
the institutions will not be changed for the present.
A yet more recent issue of the "Chronicle" (Dec. 3)
stated that the Bank of Arroyo Grande, at Arroyo Grande
in San Luis Obispo County, has been purchased by
the
United Bank & Trust Co. and the institution is now being
operated as one of the subsidiaries of the French-American
Corporation. Continuing the "Chronicle" said:
The Bank of Arroyo Grande is one of the oldest and
most substantial
of the mid-Coast banks, and has capital stock of $100,000
, surplus and undivided profits of $60,000, and deposits of about
$725,000, making total
assets of nearly $900,000. The officers include J.
R. Gibson, President:
W.A.Conrad Jr., Vice-President, and J. S. Gibson.cashier.
The directors.
who will continue as an advisory board, include the
officers and J. Benchlmol, R. E. Easton, Joe Dutra and T. Olohan, all well
known residents of
Southern San Luis Obispo county.
The bank also operates a branch at Pismo Beach,
about five miles north
of Arroyo Grande, which branch was also acquired by
the United.
Still again in its issue of Dec. 7 the San Francisco paper
stated that announcement was made on Dec. 6 of the purchase by the Security Bank & Trust Co. of Bakersfield of
the Webster Street branch of the Citizens National &
Savings Banks of Alameda, the main institution of which was
recently acquired by the Bank of Italy National Trust &
Savings Association. The Alameda bank through the deal,
it was said, becomes one of a chain of 17 banks operated by
the Bakersfield bank. The personnel will remain the same,
it was declared, with the promotion of C. R. Ohlson to
Manager.
According to advices by the Associated Press from San
Francisco on Dec. 13, printed in the Los Angeles "Times
"
of Dec. 14, the Bank of Pacific Grove, in Monterey County,
Calif., was on that date (Dec. 13) purchased by the United
Bank & Trust Co. through the French-American Corp.
Continuing the dispatch said:
The Bank of Pacific Grove has capital of $100,000 surplus and
undivided
profits of $78.000, and deposits of $1,362.000, with total assets
of $1,538.765. E. S. Johnson is President and G. W. Eckhart, Cashier.
Officers and
employees of the bank will remain the same, and the board of
directors will
continue as an advisory board.
For the present the bank will operate as an independ
ent' unit of the
United system, and will not, for some time at least,
become a branch of
any of the parent company's operating companies.
According to the San Francisco "Chronicle" of
Nov. 20
announcement was made the previous day
that the
Dairyman's Bank of Valley Ford, Somona County
, Cal.,
together with its branches at Point Reyes and
Two more California banks, the Bank of Orland and the
Tomales, in
Martin County, have been purchased by the United
Bank & Bank of Antioch, were purchased by the United Bank &
Trust Co. of San Francisco, through its holding compan
y, Trust Co. through the French-American Corp. on Dec. 19,
the French-American Corporation. The acquired bank
is according to the San Francisco "Chronicle" of Dec. 20,
capitalized, it is understood, at $200,000, with
surplus and which said in part:
undivided profits of $125,000, and has deposits in
According to Leon Bocqueraz. Chairman of the Board
of the United
excess of Bank,
the Bank of Orland will continue to operate
$1,000,000. It was furthermore stated that the bank
for the present as
and an independent bank. Later it will become
a unit in the chain of the
its branches will not be assigned to any group for operati
Security Bank & Trust Co. of Bakersfield, which is an operatin
on, tion
g institufor the United Bank and French-American Corp.
but will, at least for some months, continue as separate
units
Capitaliz
ation
of
the
Bank of Orland consists of $100,000 in capital
of the general United Bank & Trust Co. system.
stock, a surplus of $25,000 and undivided profits
of $4.000. Commercial
In its issue of Nov. 24 the same paper stated that
and savings deposits aggregate in excess of
$655.000. Executives of the
the Instituti
on are: President, G. A. Barcelona and Cashier, E. M. King.
First National Bank of Turlock, Cal., and the
Commercial
The Bank of Antioch was also sold to the United Bank & Trust
Co.
Bank of that place, affiliated institutions, were acquire
d by of San Francisco through the French-American Corp. yesterday. There
United
Bank
the
& Trust Co. of Nov.23. These two banks, will be no changes in the personnel, according to the announcement.
it was said, have combined deposits of $3,500,000 and total W. W. Morgans of Brentwood is President of the bank and R. V. Davis
Is Cashier.
resources of $3,800,000, and are headed by Howard
Whipple,
Finally, on Dec. 23 (according to the "Chronicle" of
with his brother, T. B. Whipple, as Vice-President.
For that date) announcement was made by Leon Bocqueraz,
the time being, it was said, the institutions will continue
as Chairman of the Board of the United Bank & Trust Co.,
separate banks with officers unchanged, and will be
operated that the First National Bank of Redlands, in San Bernardino
as subsidiaries of the recently formed Security Bank & Trust County
, had been acquired by the United Bank & Trust
Co. of Bakersfield, Cal., which is a subsidiary of the French
- Co. through the French-American Corp. The acquisition
American Corporation.
of this bank was reported as follows:
3594
THE CHRONICLE
o County,
The First National Bank of Redlands, in San Bernardin
for the United Bank
has been purchased by the French-American Corp.
rapidly expanding
and Trust Co., and makes the sixty-first unit of that
Bocqueraz, Chairman
system, it was announced to-day (Dec. 23) by Leon
of the Board of the United Bank & Trust Co.
for the present
The First National Bank of Redlands will be operated
as an independent unit.
First National
A. T. Park is President and J. C. Sexton Cashier of the
surplus and
Bank of Redlands, which has a capital stock of $100,000.
savings
$422,199,
of
undivided profits of $32,500, commercial deposits
The bank is a
deposits of $392,910, and total resources of $947,641.
member of the Federal Reserve System.
That a bond department had been established for the
was
service of customers of the United Bank & Trust Co.
g
announced by Chairman Bocqueraz on Dec. 20, accordin
day.
g
followin
the
of
cle"
"Chroni
o
to the San Francisc
by
The new department, it was stated, will be managed
the
of
one
with
d
identifie
been
has
who
Christie,
R. A.
largest banks in the country for nearly eight years. The
bond department will both deal in securities of the highest
type and supervise the investments of the United Bank
and its affiliated organizations, the Security Bank & Trust
Co. of Bakersfield, and the French-American Corp.
The "Chronicle" of the next day (Dec. 22) stated that
the United Bank & Trust Co. had announced on Dec. 21
that Mr. Christie had been elected a Vice-President of the
bank, and said:
United Bank & Trust
In addition to supervising the investments of the
institutions, the inCo., the Security Bank & Trust Co., and affiliated
and experienced installation of the new department will render skilled
who may wish
vestment counsel, available to all clients of the bank
guidance in investment matters.
[VOL. 125.
Total assets of the institution are shown in the report as
94,663,903 (a gain of over $128,000,000) of which $455,433, 843 are liquid assets, or equal to 57.33% of the bank's
liabilities to the public, while cash on hand and in banks
are shown at $183,651,551, or 23.12% of the same liabilities.
Total &posits are given at $722,636,091, or a gain of nearly
$110,000,000 during the twelve months. Current loans
and discounts in Canada stand at $225,536,861, while current loans and discounts elsewhere than in Canada are
given at $153,411,835. Dominion and Provincial Government securities are shown at $73,307,380, and Canadian
municipal securities and British, foreign and colonial public
securities other than Canadian at $31,296,227. During
the year the paid-up capital of the institution was increased
to $30,000,000, and with the premium on new shares allotted
to shareholders, the reserve and undivided profits now
stand at $31,809,831. At present the bank maintains 760
branches in the Dominion and Newfoundland and 110
offices abroad. A foot-note to the report says that the
Royal Bank of Canada (France) has been incorporated
under the laws of France to conduct the business of the
bank in Paris and that as the entire capital stock of the
Royal Bank of Canada (France) is owned by the Royal
Bank of Canada, the assets and liabilities of the former are
included in the general statement. Sir Herbert S. Holt is
President of the institution and C. E. Neill, General Manager.
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
The New York Stock Market has been somewhat mixed
during the past week and, though the general tendency has
been toward higher prices, there have been several periods
of downward reactions. Public utilities have been the outstanding strong stocks and numerous new high figures for the
the Anglo year have been recorded among the more active speculative
Duffy's rise has been rapid through successive posts with
erican.
and London-Paris, French-American and the United and French-Am
.issues. Toward the end of the week motor stocks and steel
issues improved and again assumed the market leadership.
Railroad shares as a group have been heavy, though several
in
The San Francisco "Chronicle" of Dec. 9 stated that
prominent issues have been in moderate demand at gradually
and
Anglo
the
by
year
last
paid
dividend
lieu of the extra
ng prices. The outstanding features of interest during
improvi
were
ders
London Paris National Bank of that city stockhol
were the election of J. P. Morgan as Chairman of
given rights which are currently quoted at approximately the week
of the United States Steel Corp., and the reduction
Board
the
of
rate
the
at
$14.50. It is understood the regular dividend
nt rate of the Bank of France from 5 to 4%.
rediscou
the
in
$10 per annum will be paid.
Under the leadership of General Motors the market
moved briskly forward during the two-hour session on
According to the San Francisco "Chronicle" of Dec. 9 the Saturday and a sizable number of new high records were
directors of the Wells Fargo Bank & Union Trust Co. of established among the speculative favorities. United States
'3an Francisco on Dec. 8 voted a quarterly dividend of $3 Steel common moved confidently forward to a new high on
it share, placing the stock on a $12 annual basis as com- the recovery at 155, though it met considerable pre-holiday
pared with the old rate of $11. The dividend will be pay- profit-taking and slipped back about 3 points at the close.
s ble Tan. 2 to stockholders of record Dec. 24.
Midland Steel Products preferred was also a prominent
feature and swung upward more than 12 points to 252.
in public utilities was also a noteworthy feature,
The First National Bank of Hollister, Calif., was placed Sharp buying
shooting forward 3 points and crossing
Edison
n
Brookly
capitalwas
bank
The
8.
Dec.
on
ion
in voluntary liquidat
Union Gas bounded upward 4 points to
n
Brookly
and
200,
ized at $100,000.
ated Gas moved vigorously forward
Consolid
above 150 and
rubber group Goodyear reached a
the
In
ground.
higher
to
On Dec. 20 an application to organize the Commercial
advance to 685, followed by
points
4%
with
high
new
National Bank of Santa Ana, Calif., capitalized at $200,000,
Rubber with substantial
States
United
and
h
Goodric
was approved by the Comptroller of the Currency.
advances. Railroad shares were somewhat mixed ,in their
movements, Erie common gaining about a point while New
moved into new high ground for recent years. Del.,
Haven
(head
of
Canada
Bank
Royal
the
That the operations of
d considerable strength and New
&
office Montreal) during the fiscal year ending Nov. 30 1927 Lack. West. also displaye
as compared with 164% on
to
up
1653.,
sold
Central
report
York
annual
by
the
d
evidence
is
ul
successf
were highly
le stocks Montgomery
mercanti
the
In
day.
in
e
previous
the
elsewher
of the institution (its 58th) which appears
new high ground for the present
into
ahead
pushed
Ward
capital
,
total
deposits
assets,
Total
to-day.
pages
our
Brown ran up about 5 points.
and reserve including undivided profits, and earnings of the shares at 153 and Christiee was closed on Monday in
Exchang
Stock
institution are noted as being the highest ever recorded by The New York
Day.
as
Christm
of
ce
deobservan
(after
period
the
for
profits
Net
any Canadian bank.
Stock prices were somewhat erratic as the market resumed
ducting charges of management, accrued interest on deand
sessions after the Christmas holiday. Motor stocks conits
debts,
and
doubtful
bad
all
for
n
provisio
posits, full
in the foreground and General Motors at 138 was up
tinued
46
$5,370,1
rebate of interest on unmatured bills) were
close. Nash Motors closed above
(the highest in the bank's history) and when added to 2 points from its previous
consistently strong. Midland
was
"A"
Bros.
Dodge
and
100
forward
brought
loss
and
profit
to
$1,409,675, the balance
ing strong stock of the steel
outstand
the
was
from the preceding year, made the sum of $6,779,820 avail- Steel Products
262.
Specialties were moderto
points
12
gained
and
followgroup
the
in
ated
appropri
was
This
able for distribution.
briskly forward,
moving
Aikman
&
Collins
strong,
ately
s
at
y
ing way: $3,984,988 to pay four quarterl dividend
M. Byers and Davison Chemical
A.
um,
Congole
by
a
followed
with
together
010),
($3,386,
annum
per
12%
the rate of
into new high ground. Copper stocks
bonus of 2% ($598,978); $100,000 transferred to officers' all of which moved
the day, both Anaconda and Chili
through
all
pension fund; $400,000 appropriated for bank premises, were heavy
and oil stocks were more or less
each
point
a
about
taxes,
losing
ent
n
Governm
Dominio
for
and $485,000 reserved
.
irregular
of
balance
including tax on bank note circulation, leaving a
Price movements were irregular on Wednesday and the
$1,809,832 to be carried forward to the current year's profit
of the market was generally downward, though here
trend
and loss account.
A special dispatch to the Los Angeles "Times" from San
Francisco on Dec. 21 stated that W. F. Duffy, heretofore
Vice-President and Comptroller of the United Bank &
Trust Co., was the previous day elected by the directors
to the position of Executive Vice-President of the instituion. Continuing, the dispatch said:
4
DEC. 31 1927.]
and there throughout the list were occasional strong issues
that moved to higher levels. Midland Steel Products pref.
was the spectacular feature of the day and shot upward 42
points to 315, as compared with its previous close at 27234,
though it slipped back to 305 in the final hour. Considerable interest was manifested in United States Steel common as
a result of the election of J. P. Morgan as Chairman of the
Board, but there was little change in the final quotations.
Railroad shares were weak, Western Maryland yielding 4
points, Canadian Pacific 3 points, and New York Central
and Ches. & Ohio over 2 points each. American Brown
Boveri, General Electric, Texas Gulf Sulphur and Davison
Chemical were among the strong stocks of the day and closed
with substantial advances.
The stock market was again somewhat mixed on Thursday
and, while both buying and selling were in evidence all
through the session, the general trend of the market was
upward. Public utilities continued in the foreground,Brooklyn Edison crossing 224 to the highest level in all time, followed by Brooklyn Union Gas which at 155 was at its best
for the present no-par shares. Consolidated Gas moved up
to 124, a record for the present form of capitalization and
%,as compared with its previous
Peoples Gas sold up to 1633
close at 16234. Railroad stocks made little progress, though
there were occasional strong features in the group, notably
Rock Island, which moved forward about 2 points, Atlantic
Coast Line, which crossed 188 at its high for the day, and
Chesa. ez Ohio, which advanced to 204%, though it yielded
a point or more later in the day. Midland Steel Products
preferred crossed 301 at its high for the day, but slipped back
to 292 later in the session and closed with a net gain of 2
points. United States Steel common and General Motors
were in demand at improving prices and a number of the
equipment stocks closed with a substantial advance. Baldwin Locomotive was conspicuous in the latter group and
closed with a net gain of 1% points. The market turned upward on Friday and new highs on current movements were
recorded by United States Steel common, General Motors
and numerous other speculative favorites. Copper stocks
moved up with the leaders and both Calumet & Arizona and
Greene-Cananea were bought at advances ranging from
4 to 5 points. Anaconda, Kennecott, American Smelting
& Refining and Chili Copper also were higher. Railroad
shares were irregular, though St. Paul common and preferred reached new tops. Motor stocks continued in de3 the peak price since it
mand, Packard selling up to 59%
was listed on the New York Stock Exchange. The final
tone was strong.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY. WEEKLY AND YEARLY.
sauroaa,
tkc..
Bonds.
JIOCICS,
Week Ended Dec. 30.
tinned
States
Bonds.
aiate,
Municipal &
Foreign Bonds.
$331,647,600
10.670.551
Total
$12,708,000
Week Ended Dec. 30.
Sales at
New York Stock
Rzchange.
1926.
1927.
StOeks-No, of shares.
Bonds.
Government bonds...
Railroad & misc. bonds
State and foreign bonds
Total bonds
Number of
Shares.
$1,559,000
32,975,000
1,279,200
CHRIST MAS CELEB RATION
2.344,000
5.010,600
2,148,690
2,835,000
7,846.000
2,559.851
3,693,000
2,445,810
7,707,000
2,277,000
8,109.000
2,237,000
Saturday
Monday
Tuesday
Wednesday
Thursday
FridaY
$333,000
379.500
1,032.000
1,538,000
318.000
83.600.500
Jan. 1 to Dec. 30.
1927.
1926.
10,670,551
8,241,021
575,420,999
451,945,618
$3,600,500
12,708,000
31,647,600
$8,416,400
15,851,000
31,143,000
$289.321,500
834,437,200
2,138,665.700
$260.257,050
620,661,450
2,005,087,100
$47,956,100 $55.410.400 83,262.424.400 $2,886,005,600
DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Week ending
Dec. 30 1927.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Philadelphia.
Baltimore.
Shares. BondSales. Shares. Bond Sales. Shares. BondSales.
*23,925
$19,000
*50,852
*48,977
*56,597
23,636
36,000
60.000
69,000
39,000
203,987
$223,000
81,500
16,418
HOLIDAY
24,685
31,0471
40,200
24.9961
10,200
36,202
9,000
18,459
2,185
810.500
2,940
3,865
6,700
4.640
15,000
29,500
72,100
26,000
$85,585
20,330
8153,100
127,1221
812.000
31.506
5329.400 182.449 8106.800
*In addition, sales of rights were: Saturday. 1,209; Tuesday, 1,292, Wednesday,
220; Thursday, 1,309.
1.11 work revised
,
1
3595
THE CHRONICLE
341.840
THE CURB MARKET.
Curb market trading was fairly active and irregular this
week though the trend of prices was downward. A few
issues, however, moved upward. Most conspicuous of these
%
was American. Rolling Mill corn. which ran up from 963
to 112, the •latter ex-dividend. . Alles & Fisher corn. ad-
vanced from 2834 to 363%, and closed:to-day/at 35. Aluminum Co. corn. dropped from 12334 to 1193/2, and recovered
finally to 1213/3. American Arch sold up from 59 to 6934
and ends the week at 68. Amer. Cigar Co. corn. rose
from 13834 to 148 and sold finally at 13734. Celanese
3
International
Corp. corn. lost over four points to 99%.
Cigar Machinery advanced from 89 to 98. Johns-Manville
s.
/
com. improved from 11934 to 124 reacting finally to 1223
Midland Steel Products sold up from 98 to 125, reacted to
104 and closed to-day at 107. U. S. Freight gained over
4,fell back to 7834 and finished to-day
eleven points to 813
at 7994. Marconi Wireless of Canada was again conspicuous for its heavy transaction, the price dropping from
4 13-16 to 334, the close to-day being at 3 11-16. Oil
stocks were firm. Continental advanced from 1834 to 21.
Illinois Pipe Line was off from 178 to 1723% with a final
recovery to 174. Standard Oil (Kentucky), rose from
%. Vacuum Oil declined
122 to 12934 and reacted to 1253
from 14134 to 1383% and recovered to 14034. Gulf Oil
after early loss from 11434 to 11034, sold up to 117 resting
finally at 116%.
A complete record of Curb Market transactions for the
week will be found on page 3629.
DA:LY TRANSACTIONS AT THE NEW YORK CURB MARKET.
STOCKS (No. Shares).
BONDS (Par Value).
Week Ended Dec. 30.
Oil.
Ind&Mtsc
179,290
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
302,312
300,945
326.640
339,590
Domestic.
Foreign Gott.
34.918 $1,381,000
72,060
$142,000
CHRIST MAB DA Y CELEBR ATION
2,951,000
52,750
323.000
172.050
3.872.000
81,000
317.000
173,940
5,426,000
58,400
164.970
262,000
34,110
4,112,000
299,000
128,430
1,448.777
Total
Mining.
711.450
259.178 $17,742,000
81,343,000
COURSE OF BANK CLEARINGS.
Bank clearings this week will show a small decrease from a
year ago. Preliminary figures compiled by us, based upon
telegraphic advices from the chief cities of the country, indicate that for the week ending to-day (Saturday, Dec. 31), •
bank exchanges for all the cities of the United States from
which it is possible to obtain weekly returns will be 1.0%
below those for the corresponding week last year. The total
stands at $9,228,678,721, against $9,325,633,838 for the
same week in 1926. At this centre there is a loss for the
five days of 18.8%. Our comparative summary for the
week is as follows:
1927.
1926.
Per
Cent.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
$4.520,000,000
491,032,322
371,000,000
360,000,000
94,685,749
107,000,000
138,757,000
•125,000,000
119,265,614
116,398,368
86.683,353
70,023,795
50,059,803
$5,567,065,400
609,723,905
519,000,000
428,000,000
129,003,975
131,500.000
174.758,000
153,205.000
135,998,479
136,145,631
97,614.203
101,569,025
53.797,575
-18.8
-19.5
-28.5
-15.9
-26.6
-18.6
-20.6
-18.4
-12.3
-14.5
-11.2
-31.1
-6.9
Thirteen cities, 5 days
Other cities, 5 days
$6,649,906,004
957,326,264
$8.237,381,193
1,088,252,645
-19.3
Total all cities, 5 days
All cities, 1 day
87,607,232,268
1.621.446,453
$9,325,633,838
Holiday
-18.4
50 994 ft7R '791
50 595 ens one
-I fl
Clearings-Returns by Telegraph.
Week Ended December 31.
•rntm
011 elfIn5 fn,' zanzslr
-12.0
Estimated
_ Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day, inasmuch as the week _ends_to-day
.(Saturday)_and the Saturday figures will not be available
until noon to-day-. Accordingly in the above the last day
.
of.the last week hai:lit all cases had to be
trIn the elaborate detailed.statement, however, which we
present further below, we are able to give final and complete
results for the week-previous-the week ended Dec. 24. For
that week the increase is 31.8%, the greater part of this
being due to the fact that the Christmas holiday came in OM
week last year, whereas the present year it fell in the following week; the 1927 aggregate of clearings is $11,184,208,1r2
and .the 1926_aggregate $8,487,199,360. Outside of New
York City,the increase is 18.3%, the baniEexchanges at this
centre having increased.42.0%. We group the cities now
according to the Federal Reserve districts in which they are
located, and from this it appears that in
York
Reserve District (including this city) there is a gain of 41.3%,
in the Boston Reserve district of 20.5%, and in the Philadelphia Reserve district of 10.6%. The Cleveland Reserve
district shows an improvement of 18,5%,_the RichnTiZd
Researc_clistriet of 124%, and_the Atlanta Reserve diliFiet
3596
THE CHRONICLE
of 7.2%, the latter notwithstanding the falling off at the
Florida points, Miami having a loss of 48.6%, and Jacksonville of 15.3%. In the Chicago Reserve district the totals are
larger by 26.2%, in the St. Louis Reserve district by 18.4%
and in the Minneapolis Reserve district by 19.9%. The
Kansas City Reserve district has an increase of 5.6%, the
Dallas Reserve district of 15.8%, and the San Francisco
Reserve district of 27.8%.
In the following we furnish a summary by Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
Week End. Dec. 24 1927.
1927.
1926.
Ine.or
Dec.
1925.
1924.
Federal Reserve Diets.
$
1st Boston _..12 cities
532,385,908
2nd New York.11 "
6,968,915,493
3rd Philadelphial0 "
563,651,166
lith Cleveland--18 "
419,797,015
5th Richmond _16 "
195,804,143
8th Atlanta_ _..13 "
223,784,826
7th Chicago_ _ _20 "
998,967,648
Eith St. Louis_ _18 "
230,106,992
Elth Minneapolls17 "
127,582,231
251,693,707
10th Kansas City12 "
Ilth Dallas
83,025,049
15 "
12th San Fran._17 "
568,493,984
I
441,625,537
4,933,333,394
527,868,100
354,365,459
174,145,424
208,756,150
791,625,359
194,294,940
106,392,104
238,249,976
71,710,673
444,832,244
$
%
+20.5
407,017,703
+41.3 4,764,230,290
+10.6
505,588,778
+18.5
359,544,836
+12.4
144,704,510
+ 7.2
229,896,391
+26.2
816,906,364
+18.4
207,061,829
+19.9
122,660,274
+5.6
240,582,639
+15.8
76,470,503
+27.8
466,483,442
$
380,049,549
4,452,634,749
493,122,512
323,120,740
167,259,267
191,733,643
753,648,750
199,548,851
113,400,162
209,554,481
78,278,938
384,838,870
Total
129 cities 11,184,208,162
Outside N. Y. City
4,343,620,702
8,487,199,360 +31.8 8,341,147 559
3,670,121,503 +18.3 3,696,595,777
7,747,190,512
3,386,460,972
"anorla
21 MtIA
exta wn,ars,
90/1•090•CJIA
•
•
•
•
We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended Dec. 24.
Clearings al
1927.
1926.
Inc.or
Dec.
$
$
%
First Federal Reserve Dist rict-Boston691,264
584,951 +22.4
Maine-Bangor._
_
3.113,796
3,410,016 -8.7
Portland
Mass -Boston._ 472,000.000 397,000,000 +18.9
2.360.808
1,794,539 +31.6
Fall River_ _ _ _
a
a
a
Holyoke
1,152,843
1,101,301
Lowell
+4.7
a
a
a
Lynn
1,083,197
New Bedford_
897,837 +20.7
5,705,907
4,906,073 +16.3
Springfield_ _ _ _
3,858.425
2,766.331 +32.2
Worcester...._
17,895,915
11679.050 +53.2
Coon -Hartford1
8,579,900
6,339,456 +35.3
New Haven.._
15,454,600
10,832,900 +45.3
R.I.-Providence
689,253
533,083 +29.3
N.H.-Manches'r
Total(12 title ) 532,385,908
441,625,537 +20.5
Second Feder al Reserve D istrict-New
N. Y.-Albany._
5,274.990
5,488,420
1361,352
Binghamton_ _ _
819,600
. 49,717,678
43,701.942
Buffalo
Elmira
1,016,877
815,373
Jamestown.. . d1,205,885
1,659,294
New York....6,840,587,460 4,817,077,857
13,573,635
11,991,994
Rochester__ .
.
0,209,863
4,242,604
Syracuse
Coon -Stamford1
c4,335,001
4,101,720
.
805,666
N. J.-Monclair,
562,473
44.827,106
Northern N.J..
42.872,117
1925.
$
563,842
2,313,100
359,000,000
1,961,762
a
927,661
a
985,547
4,406,247
3,453,726
15,976.807
5,557,340
11,159,300
732,771
407,017,703
1924.
$
516,188
2,477,145
340,000,000
2,009.509
a
939,070
a
1,393,151
3,859,286
3,018,000
10,457,415
5,123,803
9,720,200
535,782
380,049,549
York-3.9
4,369,204
4,149,247
+66.1
948,700
863,800
+13.8
56,545,210
35,688.444
+24.7
786,735
844,313
-27.3
1,355,865
1,254,578
+42.0 .644,551,782 4,360,729,540
+13.2
10,285,693
9,405,583
+46.4
4.188,521
3,854,714
+5.7
4,323,536
3,029,138
+43.2
472.274
525,177
+4.6
36,424,770
32,490,235
Total(11 cities 1 6,968,915,493 4,933,333,394 +41.3 4,764,230,290 4,452,634,749
Third Federa Reserve Dist rict-Philad elphiaPa.-Altoona _ _ .
1.668,479
1,533,998 +8.8
1,430,245
Bethlehem _ _ _ .
4,616,099
4,021.958 +14.8
3,800,000
Chester
1,304,434
967,970 +34.8
1,224,675
Lancaster_ __ _ .
2,010,899
1,428,981 +40.7
2,195,510
Philadelphia . 550,000,000 498,000,000 +10.4 478,000,000
•
Reading
4,053,453
3,581,627 +13.2
3,271,246
5.770,225
5,841,908 -1.2
Scranton
4,944,715
4221,065
Wilkes-Barre_
4,090,488 +3.2
3,759,343
2,063,221
York
1,479,290 +39.5
1,589,518
N. J.-Trenton.
7.943,291
8,921,880 +14.8
5,373,528
a
a
a
a
Del.-Wilm'ton
505,588,778
493,122,512
Fourth Fade • al Reserve D istrict-Clev eland.
d6,479,000
4.144,000 +58.3
6,260,000
Ohio-Akron
3,727,597
3,194,010 +16.7
7,856,071
Canton
63.881,466 +18.0
64.704,228
75,383,971
Cincinnati.-....
95,944,491 +23.3
93,448,370
118,305,651
Cleveland
14,421,100 +24.0
17,881,100
13,592,500
Columbus._ _ _
a
a
a
a
Dayton
a
a
a
a
Lima
1,778,952 -1.6
d1,750,418
1,798,711
Mansfield
a
a
a
a
Springfield_
aa
a
Toledo
5,199,959 :5.8
5,503,430
5,848,841
Youngstown-.
a
a
a
a
Pa.-Erie
190,785,848 185,801,481 +15.1 166,040,315
Pittsburgh__
6,767,000
4,200,197
59,539,198
89,156,039
11,301,800
a
a
1;502,705
a
a
4,505,026
a
148,148,777
Total(10 cities)
583.1351166
354,365,459 +18.5
359,544.836
323,120,740
Fifth Federal Reserve Dist rict--Richm ond.1,371,523
1,453,999 -5.7
W.Va.-Hunt'g'
d8,780,122
9,892,394 -31.5
Va.-Norfolk-.-48.830,000 + 3.5
48,473,000
Richmond----*2,700,000 2,632,778 +2.6
S. C.-Charleston
89.298.816 +21.8
Md.-Baltimore. 108.849.849
27,829,849
24,037,437 +14.9
D.C.-Washing'n
1.889,172
9,717,052
44,005,000
2,318,728
68,1334,358
18.342,200
1,502,832
8,029.609
53,774,000
3.100.000
80,683,668
20,169,160
174,145,424 +12.4
144.704.510
167,259,267
Sixth Federal Reserve DIs trict-Atlan ta.9,315,151 -0.2
9,294,127
Tenn.-Chatt'gs.
.3,000,000
.3.200,000 -8.2
Knoxville
23,149.085
18.440,304 +25.5
Nashville
56,215,290 +4.5
58,742,302
Ga.-Atlanta_ _
2,430,254
2,048,378 +18.6
Augusta
2,230,131
2,445,994
+9.7
Macona
a
a
Savannah
23,634,043 -15.3
20,027,310
4,049,000
7.874,546 -48.6
Miami22,743,747 +18.9
28,577,928
Ala.-Birming'm.
1,584,198
1,730,783
7.5
Mobile
2,186,000
1,510,000 +44.8
Miss.-Jackson
341.816
-4.4
328,980
Vicksburg-59,471,981 +17.7
89,971,872
La.-NewOrleans
8,678,018
3,000,000
14,602,353
59,919,833
1,711,467
1,720,881
a
30,599,798
18,331,978
28,412,772
1,420,785
1,480.000
336,1336
55,678,090
8,778,194
2,700,000
17,289,496
58,042,359
1,721.007
1,502,152
a
14,000,000
5,738,660
28,280,917
2,000,000
1,104,690
378,188
54,220,000
229.896.391
191.733,643
Total(8 cities).
Total(6 cities).
Total(13 cities)
419,797,015
527,888,100 +10.6
1,232,642
3,300,000
975,834
1,857,809
466,000,000
2,787.993
5,797,004
3,764.029
1,462,614
5,944,787
a
195,804.143
223.784.828
208.7513.150
+7.2
[VOL. 125.
Week Ended Dee. 24.
Clearings at
1927.
1928.
Inc. or
Dec.
1925.
1924.
Seventh F ader al Reserve D istrict- Chi cagoMich.-Add
236,729
234,150 +1.1
191,743
174,087
Ann Arbor
756,616
967,889 -21.8
736,745
703,802
Detroit_ _181.839,038 139,089,293 +30.6 149,042,043 104,087,797
Grand Rap1as_
7,900,135
6,027,100 +31.1
7,443.178
8,405,955
Lansing_ _ _
2,150,488
1.910,816 + 12.5
2,407,975
2,580.289
Ind.-Ft. W dyne
3,202,602
2,384,627 +34.3
3,370,439
2,945,859
Indianapolls___
22,385,000
20,013,000 +11.9
19,033,000
14215.000
South Ben 1_ _ _
3,204,100
2,867,600 +11.7
2,575,000
2,318,000
Terre Hauta__ _
5,994,475
5,312,375 +0.0
5,3132.563
5,434,753
Wis.-Milwa Iltee
39,115,995
31,568.642 +23.9
33,148,833
30,585.011
Iowa-Ced. lap_
2,917,484
2,257,076 +29.3
2,025,448
2.083.785
Des Moine9___
9,688,038
7,717,897 +25.5
8,667,943
8,604.809
Sioux City.
6,131,258
5,330,009 +15.0
6,067,306
5,948,005
Waterloo..
1,272,648
1,013,500 +25.8
928,534
1,283,909
lil-Bloomits(ton
1,680,581
1,293,117 +30.0
1,232,362
1,800.366
Chicago...
699,044,829 554,075,309 +26.2 564,114,032 554,862,248
..... _
a
a
a
a
a
Decatur...
1,203,094
1,268,168 -5.1
1,207,470
1,249,587
Peoria_ _ _
4,926,886
3,257,289 +51.3
4,130,413
4,424,247
Rockford _ _
.3,000,000
2,677,682 + 12.0
2,748,698
2,389,455
Springfield
2,517,678
2,380,020 +8.7
2.067,9322,294,717
Total(20 el ;les) 998,967,648 791,625,359 +26.2
Eighth Fe lera I Reserve Dis trict-St. Lo ulsInd.- Evans-ille
5,340,549
4,441,298 +20.2
Mo.-5t. Louis.. 146,900,000 127,500,000 +16.2
Ky.-Louisvi Ile__
34,253,761
29,299,668 +18.9
Owensboro
502,218
438,261 +14.8
Tenn.-Mem phis
25,301,278
19,005,777 +33.1
Ark.-LittlelI1ock
16,036,453
12,011,137 +33.5
Ill.-Jackson ville
348,928
345,838 +0.4
Quincy__
1,425,805
1,253,161 +13.8
816,908,384
753,848,750
4,317,511
131,900,000
29,522,434
415.690
24,245,078
15,019,041
415,301
1,226,774
4,760,155
128,838,188
27,952,187
511,847
24,891,243
13,159,8
318,387
1,517,395.
Total(8 cities). 230,106,992 194,294,940 +18.4
Ninth Fed oral Reserve Dis trict-Minne apolis.
Minn.-Dulu h__ d11,811,131
11,073,777 +6.7
Minneapoli L.__
76,043,301
63,885,896 + 19.0
St. Paul_ _ _
31,991,142
25,992.612 +23.0
N. Dak.-Faxgo.
1,926,192
1,888.406 +14.1
5, D.-Aber teen
1,201,868
1,068.538 +12.5
Mont -Billie1g8_
659,597
574,123 +14.9
Helena....
3,959,000
2,108,754 -12.3
207,061,829
199,548,851
10,105.589
78,284,182
28,074,038
1,467,839
1,287,982
470,393
2,970,251
8,709,072
72,503,000
27,901,944
1,825,107
1,359,129
507.331
2,794,579
Total(7 chi 79) _ 127,582,231 106,392,104 +10.9 122.860,274
Tenth Fed ral Reserve Dia trict-Kans as CityNeb.-Fremo 1..
d441,354
376,8113 +17.1
251,403
Hastings_ _ ..._
470.478
321,184 +46.5
462,371
Lincoln.
4,632,797
3.878,400 + 19.4
3,727,571
Omaha_ _ _ - -_
37,802,938
32.055,039 +17.9
35,571,854
Kan.-Topeka
d3,315,323
3,708,103 -10.6
4,068,577
Wichita_ _ _
d8,547,342
8,498,851
+0.6
7,877,496
Mo.-Kan. City_ 134,074,121 133,277,616
+0.0 129,602,975
St. Joseph..._ _
d6,489,345
6,782,596 -4.3
7,724,288
Okla.-Musk gee
a
0
9
a
Oklahoma 3ty
34,030,205
30,735,913 +10.7
31,959,336
Tulsa
a
a
a
a
Colo.-Col.5 ,gs
1,144,097
962,329 + 18.9
1,057,583
Denver_ _ _ _
19,505,839
113.388.348 +19.0
17,503,791
Pueblo_ _ _ .__
e1,239,868
1.288,781 -2.1
975,394
113,400,182
Total(12eh es) 251,893,707 238,249,976
+5.8
Eleventh F ade ral Reserve District-Da IlasTexas-Austin - 2,030,910
1,307,840 +55.4
Dallas
--55,293,899
41,741,575 +32.5
Fort Worth .- 13,783,104
14,369,858 -4.1
Galveston_ --8,694,000
9,713,000 -31.1
Houston _ _ _ -a
a
a
La.--Shrevepoit5,223,136
4,578,400 +14.1
Total(5 cid 5)_
83,025,049
71.710,673
Twelfth Fe ler al Reserve D istrict-San
Wash.-Seattl L _
47.324,832
35,978,298
Spokane_ _ .__
15,403,000
11,025,000
Tacoma_ _ _ .._
a
a
Yakima_
1,489,278
-1,195,739
Ore -Portland _
38,188,175
31,036,208
Utah-S.L. Ci Cy.
21,763,225
15,771,182
Nev.-Reno _ _ __
a
a
Ariz.-Phoenix
a
a
Calif.-Fresno .__
4,188,316
5,656,333
Long Beach.
7.257,518
8,159,466
Los Angeles_ -_-_ 183,806,000 147,127,000
Oakland_ _ _
19,000,760
15,443,301
Pasadena_ _ 6.447,012
5,785,925
Sacramento_ _ _
d8,706,744
7,880,946
San Diego_ _
5,331,092
5,923.127
San Franciseo. 201,988,000 147,748,000
San Jose....
2,972,416
2,127,219
Santa Barba a_
1,828,557
1,301,100
Santa Mon! a_
2,015,661
1,881,500
Stockton_ _ _._
c2.770,800
2,811,900
298,838
368,364
3,369,848
30,414,027
2,678,869
8,841,000
112.393.520
8,142,748
a
27.967,280
a
828.738
17,635,568
817,883
240,582,839
209,554,481
1,572,829
46,335,282
13,622,595
10,558,600
a
4,381,197
1,315,050
51,877,230
10,344,611
10,477,346
a
4,264,101
+15.8
76,470,503
Frond sco+31.5
37,026,044
10,120,000
+39.7
a
a
+24.5
1,259,936
+23.0
36,134,641
+38.0
17,351.007
a
a
a
a
-25.9
3,364,016
6,340,913
____
+24.9 144,902,000
+23.1
18,589,245
4,879,882
+11.4
+17.8
8,393,286
-10.0
4,639,028
+36.7 165,001,000
+39.7
2,308,837
+40.5
1.457,550
+8.3
1687.857
-1.5
2,958,600
29,993,198
8,620,000
a
1,129,447
29,343,189
15,830,872
a
a
2,797,532
5,419,194
119,888,000
13,550.051
4,335,252
6,195,900
3,183,943
137,600,000
1,883,810
904,739
1,503,445
2.674,300
78,278.938
Total(17 cid 19) 568.493,984 444,832.244 +27.8 488.483,442 384,838,870
Grand total (129
cities)
_ 11,184208.182 8.487,199,380 +31.8 8,341,147,559 7,747.190,512
Outside N.Y..-- 4.343.620.702 3.670.121.503 + 19.3 3.896.605.777 3.356.460.972
uteartngs at- i
1927.
Week Ended Dec. 22.
Inc. or
1926.
Dec.
1925.
1924.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William_ _
New Westminster
Medicine HatPeterborough....
Sherbrooke
Kitchener
Windsor
Prince AlbertMoncton
Kingston
Chatham
Sarnia
$
152,813,851
188,110,457
73,617.595
20,527,429
9,525,558
8,884,981
3,610.843
8,229.098
13,589,862
3,208,860
2,723,809
3,857,341
7,112,549
8,751,487
810,053
893,083
2,998.897
1,830,210
1,445,578
1,408,742
887,190
610,026
1,132,587
981,840
1736.105
5,400,510
530,060
1.157,117
931,332
2.985.818
860.988
$
124,140,811
117,285,230
59,079,790
19,109,727
7,724,185
6,345,232
2,901,780
5,919,079
8,702,817
2.708.872
2,103,294
3,082,903
5,885,118
5,166,348
778.249
598.539
2,298.887
1,667.704
1,202,390
1,155,234
888,808
353,317
1,042,154
898.099
1,270,310
5,345,518
501,795
1,073,198
872,818
1,012,165
724,494
%
+22.9
+41.8
+24.6
+7.4
+9.2
+39.7
+24.4
+5.2
+58.2
+18.5
+29.5
+ 18.0
+20,9
+30.7
+4.1
+49.2
+30.4
+9.7
+11.9
+21.9
+0.1
+72.9
+8.7
+7.1
+36.7
+1.0
+5.6
+7.8
+6.7
-5.0
+18.8
$
94,129,798
105,702,108
77,909,974
17,620,700
7,608,254
6,834,543
3,288,480
5.447,827
10,131,041
2,851,448
2,186,932
3,198,830
5,984,904
8,277.104
713,008
927,483
2,447,709
1,488,793
1,388.870
1,131,802
645,853
397,967
930,333
831,565
1,031,967
3,550,278
471,157
1,071,112
803,864
$
110,553,978
88,043,079
52,838,737
13,931,197
8,088.398
4,704.086
2,409,592
4,336,087
8,387,244
1,987.989
1,520,444
3,160,024
4,093,812
3,312,295
595,155
533,498
1,585.888
1,168,687
783,783
1,186,710
431,450
271.931
730,671
608,010
828,481
2,484.287
298,324
815,898
753,571
Total(29 cities)._
504.523.950
390.980.604 +29.0
366.034.272
316.301.039
a No longer report clearings. 13 Do not respond to requests for figures. c Week
so*dedDeo.21. dWeekendedDec.22. eWeekende6Dec.28. S$1mated.
Dm.311927.1.
TUE CHRONICLE
- 3597
THE ENGLISH GOLD AND SILVER MARKETS.
Treasury Cash and Current Liabilities.
The cash holdings of the Government as the items stood
We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of Nov. 30 1927 are set out in the following. The figures are
taken entirely from the daily statement of the United States
Dec. 14 1927:
Treasury of Nov. 30 1927.
GOLD.
The Bank of England gold reserve against notes amounted to 1148,486,210
on the 7th instant, as compared with £148,593,460 on the previous Wednesday.
As there has been no arrival of gold this week from South Africa, recourse
had to be had to the Bank of England,as will be seen from the details below.
The $1,000,000 gold from New York, referred to in our last week's letter,
is due to arrive to-morrow and will be dealt with then.
A further consignment of gold from New York City to this country has
been announced. The National City Bank of New York is shipping
$7,500000 gold by the S.S. Berengaria scheduled to leave to-morrow.
It will be seen below that a further amount of £1,000,000 gold has been
exported from this country to Poland. making about £4,000,000 in all.
The following movements of gold to and from the Bank of England have
been announced:
Pec. 8. Dec.9. Dec. 10. Dec. 12. Dec. 13. Dec. 14.
Received
Nil
£500,000
Nil
Nil
MI
Nil
Withdrawn
£19,000 £14,000 £14,000
Nil
£50,000 £97,000
The receipt of £500,000 on the 9th instant was in sovereigns released from
"set aside account South Africa." The 12,000 sovereigns withdrawn were
destined for Spain. During the week under review the Bank has received
£306,000 on balance, decreasing the net efflux this year to £2.273,000. and
since the resumption of an effective gold standard to £7,597,000, as set
out in the daily bulletins at the Bank.
During the month of November last the United Kingdom imports and
exports of gold were as follows:
Imports.
Exports.
Russia (U. S. S. R.)
£29,206
Sweden
£26,700
Netherlands
87.215
Belgium
3,885
France
9,034
95,145
Switzerland
263,313
Germany
457.350
Austria
59,040
Poland
2,997,747
Spain and Canaries
25,000
Egypt
76,800
West Africa
57,700
72
Java and other Dutch possessions in the Indian Seas
4,333
Central America and West Indies
1,741
Various South American countries
3,750
Rhodesia
24,787
Transvaal
2,950,715
British India
229,075
Straits Settlements
100,660
Other countries
7.934
34,692
£3,084,861 £4,461.027
The following were the United Kingdom imports and exports and exports
of gold registered in the week ended the 7th mat:
Imports.
Exports.
British West Africa
£24,136 Poland
£1,000,840
British South Africa
31,242 Germany
41,410
Other countries
5,581 France
12,003
Switzerland
51,235
Egypt
30.825
British India
80,910
Straits Settlements
53,432
Other countries
14,611
/60,959
/1,285,266
The Transvaal gold output for November 1927 amounted to 848,059
fine ounces, as compared with 855,743 fine ounces for October 1927 and
840,276 fine ounces for November 1926.
The Imperial Bank of India announced on the 8th instant that its rate
of discount has been raised from 5% to 6%•
SILVER.
With the exception of the 12th instant when the price rose sharply ;id.
for cash and 3-16d. for two months' delivery, owing to a special demand,
the market has been rather devoid of interest. Neither China, India, nor
America were disposed to deal freely. In these circumstances the rise
was maintained another day, easing 1-16d. to-day. Any really large
volume of selling would probably make itself felt.
The following were the United Kingdom imports and exports of silver
registered in the week ended the 7th instant:
Imports.
Exports.
Belgium
£10,355 Germany
£23,190
Canada
16,660 Egypt
29,600
Other countries
8,192 British India
50,693
Other countries
7,300
135,207
£110,783
INDIAN CURRENCY RETURNS.
(In Lacs of Rupees.)
Nov. 22. Nov. 30.
Dec. 7.
Notes in circulation
18207
18155
17961
Silver coin and bullion in India
11406
11350
11149
Silver coin and bullion out of India
Gold coin and bullion in India
2976
2976
297;
Gold coin and bullion out of India
Securities (Indian Government)
3689
)
.
3666
Securities (British Government)
136
140
140
No silver coinage was reported during the week ended the 7th instant.
The stock in Shanghai on the 10th instant consisted of about 52,900.000
ounces in sycee, 72.800.000 dollars, and 5,860 silver bars, as compared with
about 52,600,000 ounces in sycee, 71,300,000 dollars, and 7,340 silver bars
on the 3d instant. Quotations during the week:
-Bar Silver per Oz. Std.Bar Gold per
Cash
2 Mos.
Oz. Fine.
Dec. 8
26 13-16d.26
84s. 113.id.
26%.
9
26 9-15d.
261d.Dec
84s. 113id.
26 11-I6d.
Dec. 10
2630.
84s. 11;id.
26 15-16d.
Dec. 12
26 11-16d.
84s. 113d.
Dec. 13
26 15-16d.
26 11-16d.
84s. 11;id.
Dec. 14
264d.
26%el,
84s. 11 d.
26.833d.
26.614d.
Average
84s. 11. d.
The silver quotations to-day for cash and two months' delivery are each
3.1d. above those fixed a week ago.
ENGLISH FINANCIAL MARKETS-PER CABLE.
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as follows the past week:
Mon.
London,
Sat.
Tues.
WeekEnd.Det.30. Dec. 24. Dec. 26. Dec. 27.
Silver, per oz.._
Gold,perfine ea
Consols,214%
British, 5%-..
Holiday
Holiday
British,434%. Holiday
French Rentes
60.60
(in Paris) _fr.
French War L'n
80.60
in Paris-(fr)-
Wed.
Thurs.
Fri.
Dec. 28. Dec. 29. Dec. 30.
26 7-166. 26 9-16d. 26%
845.11%d. 848.113.(d. 848.11d.
541
5534
555)
10134
10154
10134
9634
9634
9534
61.25
61.70
61.60
81.75
81.95
82.15
The price of silver in New York on the same days has been:
Sliver in N.Y per oz.(cts.):
Holiday
Foreign
5734
573,4
5734
574
5734
AssetsGold coin
Gold bullion
CURRENT ASSETS AND LIABILITIES.
GOLD.
Liabilities644,942,015.46 Gold etfs. outstanding...1,615,269,359.00
2,890.263,621.78 Gold fund. F. R. Board
(Act of Dec. 23 1913.
as amended June 21
1917)
1.592,923,111.28
Gold reserve
155,420,721.00
Gold in general fund... 171,592,446.98
Total
3,535,205,637.24
Total
3,535,205,637.24
Nofe.-Reserved against $346.681,016 of U. B. notes and $1,317,600 of Treasury
notes of 1890 outstanding. Treasury notes of 1890 are also secured by silver
dollars in the Treasury.
SILVER DOLLARS.
AssetsLiabilities$
Silver dollars
477,327,243.00 Silver ctfs. outstanding_ 470,123,061.00
Treasury notes of 1890
outstanding
1,317,600.00
Silver dollars in gen.fund
5,886,582.00
Total
477.327.243.00
Total
477,327,243.00
GENERAL FUND.
AssetsLiabilities$
Gold (see above)
171,592,445.98 Treasurer's cheeks outSilver dollars (see above)
standing
5,886,582.00
18,764,617.40
United States notes. -3,307,290.00 Deposits of Government
National bank notes.... 18,031,916.00
officers:
Federal Reserve notesPost Office Departm't
1,860,700.00
7,025,538.55
Fed'I Reserve bank notes
Board of trustees, Pos82,835.00
Subsidiary silver coin.-tal Savings System:
2,135,888.94
Minor coin
2,093,412.61
5% reserve, lawful
Silver bullion
money
6,813,063.14
6,431,200.49
Unclassified.-CollecOther deposits
281,932.20
tions, As
Postmasters, clerks of
2,653,207.87
Deposits in F. R. banks 12,898,338.36
courts, disbursing
Deposits in special deofficers. &c
36,639,731.53
positaries account of
Deposits for:
sales of certificates of
Redemption of F. R.
Indebtedness
notes(5% fd., gold) 158,998.482.65
14,664,000.00
Deposits in foreign deRedemption of nationpositaries:
al bank notes (5%
To credit of Treasurer
fund,lawful money) 28,372,973.24
United States
Retirement of addi106,523.48
To credit of other
circulating
tional
Govern't officers.....
notes, Act May 30
415,208.99
Deposits in nat'l banks:
1908
2,630.00
To credit of Treasurer
Uncollected items, exUnited States
8,138,179.19
changes, As
2,821,917.56
To credit of other
Govern't oMcers_ _ _ 20,864,931.13
259.339,023.62
Deposits in Philippine
Net balance
13,377,446.98
Treasury:
To credit of Treasurer
United Matta
1,171,947.91
Total
272,716,470.60
Total
272,716,470.60
Note.-The amount to the credit of disbursing officers and agencies to-day was
$392,810,422.24. Book credits for which obligations of foreign governments are
held by the United States amount to $33,236,629.05.
Under the Acts of July 14 1890 and Dec. 23 1913, deposits of lawful money for
the retirement of outstanding national bank and Federal Reserve bank notes are
paid into the Treasury as miscellaneous receipts, and these obligations are made
under the Acts mentioned a part of the public) debt. The amount of such obligations
to-day was $43,497,482.
$1,538,030 in Federal.Reserve notes and $17,961,016 in nationalbank noteaare In
the Treasury in process of redemption and are charges against the deposits for the
respective 6% redemption funds.
Public Debt of United States-Completed Returns
Showing Net Debt as of Sept. 30 1927.
The statement of the public debt and Treasury cash holdings of the United States as officially issued Sept. 30 1927,
delayed in publication, has now been received, and as interest attaches to the details of available cash and the gross and
net debt on that date, we append a summary thereof, making
comparisons with the same date in 1926.
CASH AVAILABLE TO PAY MATURING OBLIGATIONS.
Sept. 30 1927. Sept. 30 1926.
$
Balance end month by daily statement, dm
490,544,016
411,845.322
Add or Deduct-Excess or deficiency of receipts over
or under disbursements on belated items
-6,426,185
-3,641,057
2484,117,831 $408,204,265
Deduct outstanding obligations:
Matured interest obligations
$43,288,245
$49,076,998
Disbursing officers' checks
73,521,649
74,315,958
Discount accrued on War Savings Certificates
7,451,070
9,436,920
Settlement warrant cheeks
1,702,802
1,267,134
Total
$125,528.098 2134,531,678
Balance. deficit (-1 or surplus (1-)
+$358,589,733 +8273.672,587
INTEREST-BEARING DEBT OUTSTANDING.
Interest Sept. 30 1927. Sept. 30 1926.
Tide of LoanPayable.
$
$
2s Consols of 1930
Q.-J. 599,724,050
599,724,050
2s of 1916-1936
Q.-F.
48,954,180
48,954,180
25 of 1918-1938
Q.-F.
25,947,400
25.947,400
38 of 1961
Q -M
49,800,000
40,800,000
35 Conversion bonds of 1946-1947
Q.-J.
28.894,500
28,894,500
Certificates ofindebtedness
J.4
560,032,500
861,148,500
3345 First Liberty Loan, 1932-1947
.1.-J. 1,397,687,000 1.397,687,600
4s First Liberty Loan converted
J.-D.
5,155.700
5,156,800
41ds First Liberty Loan, converted
J.-D. 532,823.350
532,874,250
435s First Liberty Loan, second converted... J.-D.
3,492,150
3,492,150
is Second Liberty Loan, 1927-1942
M.-N.
17,556,750
20,849,600
4545 Second Liberty Loan converted
875,286,450 3.083,674,700
434s Third Liberty Loan of 1928
M.-S. 2,147,659,850 2,353,933,250
414s Fourth Liberty Loan of 1933-1938
A.-0. 6,296,905,350 6,324,466,150
434s Treasury bonds of 1947-1952
762,320,300
763,948,300
4s Treasury bonds of 1944-1954
1,042,401,500 1,047,087,500
354s Treasury bonds of 1946-1956
491.212,100
494.898.100
15548 Treasury bonds of 1943-1947
494,854,750
45 War Savings and Thrift Stamps
258,548,649
358,508,701
2145 Postal Savings bonds
J.-J.
13,951,780
12,881,080
45)45 to 554e Treasury notes
J.-D. 2,555,155.150 1,197,481,300
Aggregate of interest-bearing debt
18.208,363.459 19,211,408.111
Bearing no interest
242,149.271
243,040,544
Matured,Interest ceased
27,184,925
18,375,880
Total debt
a18,477,697,655
Deduct Treasury surplus or add Treasury deficit-.-358.589,733 19,472.824,535
-273.672.587
Net debt
618,119,107.922 19,199,151,948
a The total gross debt Sept.30 1927 on the basis of daily Treasury statements
was
$18,477,419,685, and the net amount of public debt redemption and
receipts in
transit, As.. was $277,971.
b No deduction is made on account of obligations of foreign Governments or
other
investments.
3598
THE CHRONICLE
[Vol,. 125.
$ per oh. Shares. Stocks.
$-Yer oh.
Shares. ctoe5e.
6934 6 John S. Carruth & Co., Endurance
8 Continental Pass. Ry. Co
Mills, pref. with 9 com. bonus.$30 lot
250 Neptune Gardens, pref., par 85013200
250 Neptune Gardens. com..par$50 1 lot 10 Delaware Beach Corp., pref 5 Delaware Beach, common
100 Mfre.Casualty Ins. Co., par 810 30
18,000 Amer. Manganese Mfg., 2nd 830
100 Bleekman Robinson Syndicate,
lot
general Dunbar paid asset
85 lot
Inc., preferred
60 Cherokee Coal & Iron, prof
50 Bleekman Robinson Syndicate,
$5 lot 60 Cherokee Coal & Iron, common
par
no
common,
Inc.,
Bonds275 West Va. Coal dr Coke Co.,
$599,724,050.00
Consols of 1930
Per cent.
Bonds$400 lot
preferred B
48,954.180.00
Panama's of 1916-1938
84 William M. Lloyd Co., com. .84 lot 830,000 bond and mtge. of Joseph
25,947,400.00
Panama's of 1918-1938
C. Lahey to Joseph G. BoardSpeedway
Motor
City
Atlantic
50
49,800,000.00
Panama's of 1961
man, dated May 25 1927, payable
$1 lot
Assn., preferred, par $10
28,894,500.00
Conversion bonds
one year from date, int. 6%•
10 Atlantic City Motor Speedway
13,951,780.00
Postal savings bonds
Secured by lot of ground south$1 lot
Assn.. preferred
8767,271,910.00
east side Hepburn St. and south10 Atlantic City Motor Speedway
$1,939,156,850.00
First Liberty Loan of 1932-1947
west side Cresheim Road, Phila810 lot
Assn., common, no par
2,147,653,200.00
Third Liberty Loan of 1928
81,450 lot
phila, Pa
par
com.,
Bourse,
Philadelphia
48
6,296,901.900.00
Fourth Liberty Loan of 1933-1938
4031 $1,000 Public Service Corp.of N.J.,
$50
10.383,711,950.00
perpetual 6s, reg
lot
pt
$1,000
11231
Inc.,
Chase.
&
Hare
1,428
782.320,300.00
Treasury bonds of 1947-1952
$3,000 Public Service Corp.of N. J.,
1,838 Hare & Chase, Inc., com.,
1,042,401.500.00
Treasury bonds of 1944-1954
107
perpetual 6$. leg
8200 lot
no par
491,212,100.00
Treasury bonds of 1946-1956
$50 lot 82,500 Inter-Urban Ry. of Des
150 Brigantine Constr. Co
494.854,750.00
Treasury bonds of 1943-1947
11931..
434
due
Moines,
April
73.4s.
Co.,
Milk
&
2,790,788,650.00 110 Southern Cream
Inc., pref., with 10 shares corn_ _85 lot $10,000 Seabrook Co., 10-yr., Inc.
reg..
Dec.
1934,
1
notes,
6%
Inc.,
Consol.,
Rubber
Paramount
50
$13,941,772.510.00
Total bonds
830 lot
trustee's certificate
85 lot
preferred
Treasury Notes810,000 Seabrook Co., 10-yr. 5%
45 Wyoming Worsted Mills, com.,
8335.779.900.00
Series A-1927, maturing Dec. 15 1927
11934,
trustee's
Deo.
notes,
reg.,
lot
pref
$5
shares
3
with
Series A-1930-1932, maturing Mar. 15 1932.... 1,300,914.650.00
830 lot
certificate
100 National Gypsum Co.. class A,
Series B-1930-1932, maturing Sept. 15 1932._ 619,495,700.00
$15.500 Barrett Run Coal Co., 3-yr.
28
no par
42,600,000.00
Adjusted Service-Series A-1930
$10 lot
Os. 1927
12 Mine Hill & Schuylkill Haven
53,600.000.00
Series A-1931
573.4 $5,000 Sesqui-Centennial ExhibiRR
70,000,000.00
Series B-1931
lot
participation
tion,
certificate...31
A,
class
Corp..
Welte
Estey
1,500
123,400,000.00
Series A-1932
$400 lot 85,000 Wayne Coal Co., let s. 1.60,
no par
31,200,000.00
Civil Servic--Series 1931
lot
$45
deposit
1937,
certificate
1
Co
Coke
&
Coal
Gilmore
75
14,400,000.00
Series 1932
$1 lot $1,000 Southwest Gas Co., let 8Xs,
2,591,290,250.00 244 Parisian Mfg. Co., Inc
1937, with stock purch. warrants_ 9534
lot
pref_81
Corp..
Mfg.
Electric
Ileite
20
Treasury Certificates
$3,560 Pathe Phonograph & Radio
25 Paramount Internat. Rubber
$306,208,000.00
Series TM-1928, maturing Mar. 15 1928
Corp., Inc. reg., Interest June and
31 lot
Co., no par
250,577,500.00
Series T1M2-1928, maturing Mar. 15 1928
310 lot
Dec.30, due 1942
Inc..
Consol.,
Rubber
Paramount
10
422,046,000.00
Series TJ-1928, maturing June 15 1928
Southwest Mo. Elec. Ry.,
82,000
lot
$1
$100
preferred, par
5,400,000.00
Civil Service Retirement Fund Series
1st ext. 5s, 1928 certif. deposit__ 16
Consol., Inc.,
Rubber
Paramount
11
147,000.00
Series
Fund
Retirement
Foreign Service
$1 lot 825,000 President Apartment Hotel
common, no par
2,000,000.00
Special issue
Co., inc. 75, June 11945, certif.
986,378,500.00 10 Retail Druggists Specialty Co..
8200 lot
of deposit
$2 lot
815
par
Treasury Savings Certificates-5
Roubles Russian Imperial
3.000
Co.,
Realty
Towns
350 Southern
$10.467,988.40
Series 1922, issue of Sept. 30 1922
81 lot
Govt. 530. 1927
810 lot
810
par
127,746,147.20
1922
30
Sept.
of
issue
1923,
Series
810 lot 86,000 Illinois Coal 75, 1943, certif
330 Melrose Finance Co
23,141,175.65
Series 1923, Issue of Dec. 1 1923
lot
$15
deposit
lot
$93
10 Broad St. Tr. Co
93,502,397.10
Series 1924, issue of Dec. 1 1923
254,857,688.35 700 Titan Metal Mfg. Co., no par350 lot $1,000 Watson Hotel, Miami, 75,
lot
$5
1940,
deposit
certificate
pref..
Co.,
Realty
100 Grosscup
$29 lot $1,000 San Jacinto Hotel, Houston,
DO par
$17,774,298,948.35
Total interest-bearing debt
1937, certif. dep___315 lot
Texas,
75,
common,
Co.,
Realty
Grosscup
100
Matured Debt on Which Interest Has Ceased829 lot 34,000 Columbia Hotel, Miami, 75,
no par
$2,035,340.26
Old debt matured-Issued prior to April 1 1917
835 lot
1940, certif. deposit
100 Standard Fruit & Steamship
604,500.00
Certificates of indebtedness
Rights.
Per right.
lot
$100
Corp.,Fret
2,652,000.00
Treasury notes
334
60 Allegheny Title & Tr. Co
15
50 A.B. Kirschbaum, common_
28,150.00
331% Victory notes of 1922-23
2,683,950.00
631% Victory notes of 1922-23
Son
New
York:
,
3,813,100.00
By Adrian H. Muller &
Treasury savings certificates
147,413,350.00
Second Liberty Loan bonds of 1927-1942
$ per sh.
Per sh. Shares. Stocks.
159.230,390.26 Shares. Rocks.
810 lot Ctf. of dep. of Seaboard Nat. Bk..
10 Drama Corp., pref
Debt Bearing No Interest20Y.,
825,000
N.
representing
CO.,
Producing
Inc..
Fletcher
$346381,016.00
10
United States notes
year coll. tr. bonds, dated Oct. 1
85 lot
no par
155,420,720.98
Less gold reserve
1925, of the New Home Co--$100 lot
350 Experimental Theatre, Ins.,
$10 lot 100 Mowen Corp. corn. ctf. of dep.
pref., par $10
8191,260,295.02
Seaboard Nat. Ban , N. Y....850 lot
10 Park Ave. Theatre Corp., pref_.31 lot
Deposits for retirement of national bank and
50 Mowen Corp. cora, ctf. of dep.
43,497,482.00
10 Park Ave. Theatre Corp., corn.,
Federal Reserve bank notes
Seaboard Nat. Bank, N. Y-310 lot
lot
$1
par
2,046,040.82
no
Old demand notes and fractional currency
Full paid subscription amount.
15 Theatre Arts, Inc., 7% pref.
Thrift and Treasury savings stamps, unclassito 300 shares of the
$30,000.
lot
$5
stocks
3,582,310.96
endowment
fied sales, &c
pref. stock, par 8100, of the
240,386,128.80 Note of Frances E. Nelson and SteNew Home Co. without com.stk.$40 lot
phen B. Nelson. dated Sept. 29
$5 lot
100 Newport Oil Co., pref
818,173,915,467.41
1920, for $12,000, int. 8%, due
Total gross debt
5,000 Newport Oil Co., corn., no
Sept. 13 1922; no int. has been pd
$40 lot
par
$100
Steand
Nelson
E.
outstanding.
certificates
Frances
of
of
Note
value
*Net redemption
$5 lot
Oen B. Nelson, date July 10 lot 132 Potrero Co., pref
3,300 Potrero Co., corn., no par__$20 lot
1923, for $5,200, int. 8%. due
85 lot
Co
Oil
Newport
loan
8500
p'd
been
has
July 10 1925; no int.
$1,579.50 loan the Potrero Co...$5 lot
Notes are secured by mtge. on 870
acres unimproved property in
20 Washington Slate Prod. Co.
Creek Co., Okla., aggregating
Inc., N. Y
870 acres
National Banks.-The following information regarding 600approximately
200 Brinkley Prod. & Refg., uninG.M.Flettner Rotorshiffahrt
corporated ass'n, par 81
national banks is from the office of the Comptroller of the B.H., a German limited liability
40 Community Productions, Inc., 820
co., shares transferable only at
lot
Department:
Treasury
common, par 810
Currency,
registry of that co. in Berlin,
German , 250 marks each.. 3500 lot 20 Community Productions, Inc.,
APPLICATION TO ORGANIZE RECEIVED.
810
par
preferred,
Inc.,
Capital. 400 Scott's Preparations,
$1,300 past due promissory notes of
1
par
Dec. 20-The Frelltighuysen Ave. Nat'l Bank of Newark, N. J. $200.000 14nopromissory notes aggregating
Pete Bellitti
Correspondent, Benjamin F. C. Bothwell, 91 Freling85
Saguenay Pulp & Pow., pre(
8
$66,000, all made by Eagan,
huysen Avenue, Newark, N. J.
32 Saguenay Pulp & Pow., corn.... lot
Johnson Steel & Iron Co., and
APPLICATIONS TO ORGANIZE APPROVED.
72 Saguenay Pulp & Pow., pref.... $12
endorsed by Allen A. Johnson
240 Saguenay Pulp & Pow.,corn_.. lot
and Daniel C. Eagan; all notes
Dec. 20-The Commercial National Bank of Santa Ana, Calif__ 200,000
$375 lot
1,000 Herbert Oil Co
are past due and are to be sold
Correspondent, Clyde C. Downing, Santa Ana, Calif.
500 Motor Impts., Inc., common,
S.
Brookings,
lot
Bank,
50,000
610
Dak____
without recourse
Dec. 23-The Brookings National
$50 lot
no par
Promissory notes signed Newman Corp.
Correspondent, Philo Hall, Brookings, S. Dak.
(a Florida corp.), 8% int. on each, all 20 Hall Projector Co., Inc., Mass.,$5 lot
APPLICATION TO CONVERT APPROVED.
•
par
no
unsecured and on all principal and in150.000
82 lot
2,500 Combest Oil Co., par 81
Dec. 18-The National Bank of Commerce of Superior. Wis._
terest past due, as follows:
Conversion of the Bank of Commerce, Superior, Wis.
25 Cerro Colorado Mines Co
Due.
Dated.
Amt.
Y
J.
1,000,000
of
York,
Bank
New
National
Co
Longacre
Dec. 17-The
$30,000 Mar. 9'25 Mar. 9'26 $5 lot 7 Amer. Fire Clay
Conversion of the Longacre Bank, 8th Ave. and 43rd
75,000 Mar.26'25 Mar.26'26 $5 lot 500 South Amer. Land & Expl. Co_
St., New York, N. Y.
10.000 June 23'25 June 23'26 $5 lot 3 2-10 Franklin Ptg. & Pub. Co.,
Neb
Arcadia.
25,000
of
preferred
Dec. 23-The First National Bank
May 23'25 May 23'26 $15 lot
20,000
$18
Conversion of Commercial State Bank of Arcadia, Neb.
10,000 Feb. 24'25 Fe . 24 '28 39 lot 11 Cent. N.J. Land Impt. Co
lot
CHARTERS ISSUED.
11,000 July 6'25 July 8'26 $11 lot 50 Hiland Petroleum Co
Hoffman Petroleum Co
500
lot
ill
'27
10
.
Fe
'26
10
50.000
Feb.
of
Ark
7,000
Paragould,
Bank
National
Dec. 22-The New First
Assn
Farms
Petroleum
United
1,000
(a
Corp.
Promissory notes signed Sumer
President, J. M. Lowe; Cashier, R. C. Mitchell.
125,000
Florida corp.), 8% int. on each, all 50 Bklyn. Flatbwrh & CI.Ry.Co_
Dec. 22-National Bank of Gulfport, Miss
Ry.Co_
unsecured and principal and interest 50 13klyn.& Brighton Bch.
Conversion of of Bank of Gulfport, Miss.
50 Italy,,. & Bright. Bch.Ry. pfd
past due, as follows:
President, L. N. Dantzler: Cashier, E. S. Taylor.
Standard Gypsum Co., pref.__ 835
10
Due.
Dated.
Amt.
VOLUNTARY LIQUIDATIONS.
lot
38.000 July 2025 July 2020 $5 lot 5 Standard Gypsum Co., common_
100,000
Dec. 20-The First National Bank of Hollister. Calif
9,000 July 22'25 July 22'26 55 lot $15,000 Metals Syndicate, Inc., ore
$12 lot
warrant
Effective Dec. 8 1927.
Mar. 626 Mar. 5'27 82 lot
1.000
Lici. Agent, A. H. Leydecker, Hollister, Calif.
2,725 May 7'26 May 7'27 87 lot 20 Union Discount Co.. Inc., com- lot
25.000
$5
mon, no par
Dec. 20-The Mows National Dank in Snyder, Okla
2,300 May 29'26 May 29 '27 85 lot
Effective Dec. 10 1927. Lie. Committee, A. F. Kee,
1,000 Nov.20'26 Nov.20'27 82 lot 400 Olean Petroleum Co., Inc., Del.
(formerly Black Gold Prod. Co.),
Fay P. Willis and F. E. Slader, Snyder, Okla.
J. J. Little & Co., Inc., Va.,
1,500
$250 lot
par 810
Absorbed by the First Nat'l Bank of Snyder, No. 10317.
850 lot
7% pref
200 North Amer. Transp.& Trad.$25 lot
200 E. P. Murphy & Co., Inc., 8%
$15 lot 542 Mackin Min.& Milling Co. .$2 lot
cum.pref
300 New National 011 Co., 7%
Auction Sales.-Among other securities, the following, 64 notes of Cronemeyer & Murphy,
$7 lot
pref. v t C
aggregating $36,681.09.. _820 lot
not actually dealt in at the Stock Exchange, were sold at auction 5 Inc.,
30 New Nat. 011 Co., coin., v.t.o.-83 lot
notes of Charlotte Fairchild
Wednescomand
Corp.,
on
Securities
Graham
Buffalo
Philadelphia
980
lot
Boston,
in New York,
Inc., aggregating 315,724.34..310
811 lot
mon, no par
1,250 Commercial Chemical Co. of
day of this week:
$250 lot 140 Graham Securities Corp., 8%
Tennessee, pref
$15 lot
pref., par $10
300 Commercial Chemical Co. of
By Barnes & Lofland, Philadelphia:
$25 lot 100 Horace L. Day Co., Inc., pref.
Tenn., class B. no par
$ per oh.
5 PET an. Shares. Stocks.
Shares. Stocks.
300 Horace L. Day Co.. Inc., com- $20
115 Dodwell & Co., Ltd., par £25,
10 Bankers Trust Co., par 850____ 90
Jiot
no par
5 American Academy of Music, with
lot
31.450
8634
par
Bankers
Trust
Co.,
$50---1,100 25
ticket
Hydro Refrigerator Co., Inc.,
65
Corp.,
Minerals
Standard
1,875
430
32 Cheiten Trust Co
lot
$5
20 National Bank of Germantown,
par
no
330 lot
common, par $10
8 Lancaster Ave. Title & Trust Co..
600
par 850
20 Guantanamo City Land & Dev36 lot
3.750 Standard Minerals Corp.,
87
par 850
297
8%
Del.)
34 National Bank of Commerce_
(Inc.
Co.
200
CalorizIng
lot
870
pref., par $10
5 Integrity Trust Co., par 850...-676
350
10 Sixth National Bank of Phlia
cum. cony. panic. pref., par 825,
2,734 Carbolold Products Corp.,
825
5 Provident Trust Co
8130 lot
15 Union Nat'l Bank. (ctf. dep.)...350
$50 lot
N.J.. par 85
130
61 Amer. Dredging Co
485
10 Southwark National Bank
Fox Hounds Realty Co...330 lot 500 Greene Consol. Gold Co., par
Essex
10
.85
lot
par..
no
Corp.,
Master
Music
268
Co.,
Trust
$25 lot
10 Susquehanna Title &
lot
$10
840
Co
Land
Mount
Mine
40
lot
$5
6234 1,000 Island 011 Co.. par $10
Par $50
3,000 Cananea-Mansanal Mining
7034 624 264 Lexington Ave. Corp.,
15 Green & Coates Sta;Pass. By
$25 lot
175
2Republic Trust Co.: par 550
lot
Co..
850
Par
85
par
no
'
168
Ry
Pass.
Sts.
15th
&
13th
10
5 Holmesburt Trust Co., par $50....181
Preliminary Debt Statement of the United States
Nov. 30 1927.
The preliminary statement of the public debt of the
United States Nov. 30 1927, as made upon the basis of the
daily Treasury statements, is as follows:
gormiumtal andMiscellautonsgnus
Dm. 31 1927.]
T H 114 CHRONICLE
$ per oh.
$ per sh. Shares. Stocks.
Shares. Stocks.
$10 lot 200 Ely Giroux Extension Copper
5 Langthorn & Smith, Inc
$1 lot
Co., par $5
263 Temtor Corn & Fruit Products
$6 lot
$3 lot 200 Allen 011 Co., par $1
Co.. class B. no par
60 McNab & Harlin Mfg. Co.,....Si lot
216 Temtor Corn & Fruit Products
$10 lot 100 Amer. Bicycle Co., common_$2 lot
Co., class A
200 Mitchell Mining Co., com.,
1,000 Interstate Gasoline Cu.(Del.
$1 lot
par $10
$25 lot
corp.), par $1
20 Brotherhood of Locomotive En-'
253 Bower Roller Bearing Co.,comgineers Secur. Corp.. of N. Y.,
$1,025 lot
mon. par $10
class A
$100
2.600 Perfect Window R gulator
$800 lot 20 Brotherhood of Locomotive En- lot
Corp., common
gineers Secur. Corp. of N. Y.,
200 North Star Mines Co., Inc.,
class B
$55 lot
New Jersey, par $10
410 Amer. Foreign Trade Corp.,
400 Hold Safe Optical Case Corp..
common
$7 lot
$11 lot
par $10
$20 lot 300 Read Machinery Co., York,
30 Bear Tractors, Inc
60
Pa., common
5 Tyson Co., Inc.,common
$20 lot
370 Naylor & Co., preferred
SITyson Co., Inc., preferred
25 Associated Land Owners of Fla.,
17 The Thorne Corp.,com., no par.
$20
$10 4.1m.. preferred
115)The Thorne Corp., prof
Ctfjdep.from New York Trust Co. lot I k Aft kilated Land Owners of Fla., lot
loc., common, no Par
as depositary for Southeast Met.
10 Hare & Chase, Inc., common..$2 lot
Co. for 500 she, of Consul. Ariz.
1,800 Wickwire Spencer Steel Co.,
Smelting Co., let & 2d install. pd.
trust certificates, no p ar_ _ .$105 lot
2,000 Wickwire Spencer Steel Corp.,
$140 lot 824 New Engl. Sou. Mills, prior. pt. 2%
1,6 lot
200 Wickwire Spencer St'l Corp-520 lot 5 Home Art Masters, Inc
100 Building Materials Corp., corn..
40 Lee-Nash Displays, Inc.(N.Y.)
1850
$15 lot
no par
7% cum. prior pref
200 Building Materials Corp., pref., lot
129 Hilandale Land Co. (Fla.
$25 lot
par $25
Corp.) common,no par
190 Butterworth-Judson Corp., pf-$5 lot 400 Building Materials Corp., pref.,
$100
par $25
271 Lexington Ave. & 63rd St.
50
200 Building Materials Corp.,com., lot
Corp.,7% pref
$3 lot
no par
30 Amer. Crystallizer Corp
$55 lot 100 Farms Co., class A, no par -$30 lot
223 Kenneth H.Day,Inc
50 Farms Co., class A, no par_830 lot
11,400 Gibraltar Mines Synd.. Par
$10 lot 100 Seabrook Co., class A
$10 lot
$1
$10 lot
100 Seabrook Co., class A
$4,613 demand note of the Blograph
$300 lot 1,175 Amer. Dan Bottle Seal Corp..)
Co., dated June 7 1927
$30
common, no par
$20,000 3 demand notes of the Cri95 Amer. Dan Bottle Seal Corp., lot
terion Corp. of Miami, Fla.,
dated July 28 1925, Aug. 24
preferred
1925 and Aug. 24 1925.-$10.000 lot 1,500 Newport Radio Corp., el. A
of N. Y., par $10.
$4 lot
$19,000 promissory notes of Joseph
1,500 MacNamara Crescent Ming.,
S. Furlong, dated Feb. 18 1922,
no assessments paid, par 25c
- $3
due Nov.18 1922 to May 18'24_$20 lot
$1 lot 1.500 Alaska Mines Corp., par $14 lot
19 Bell & Mooser. Inc
$5 lot 103 White Tar Co. of N. J., Inc.,
50 Kaufman Bell. Inc
10
nrwerrel
100 N. Y. Alaska Gold Dredging
$80 lot 650 Electrical Products Mfg. Co.
Co
1%
of R. I., common, no par
138 Columbia Pack.& Prod. Corp.,
$25 100 Miner-Edgar Co., common, no
common
$125 lot
par
$13,200 note of Columbia Packers lot
230 Compania Azucarera San
& Producers Corp
$50 lot
Augustin. preferred
50 Chase Commercial Corp., com
$1,650 open account of Chase Com- $25 411 H-B Imp. Corp., preferred .820lot
lot $39,500 demand note of Vose Vamercial Corp
cuum Cleaner Corp.. int. 6%,
60 units Pilgrim Pictures, Inc.,
various dates from Nov. 5 1926,
profit sharing Trust and mtge.
through to May 20 1927
$10 lot
agreement, stamped 25% pay- $35
lot 40 Newton Laboratories, Inc. no
merits made on face amount
par
$5 lot
30 Sampter Mills Co., common._
100 Gotham Stamping & Die Corp.,
20 Carter-Arkatov Productions
$100 lot
preferred
10 Tyson Co.. Inc.. pref
$30 378 Textile Trading Corp
$95 lot
10 Tyson Co., Inc., com., no par
$5 lot
$550 participation Income ctf. of lot 436 Delta Farms
1,000 West Fork Consol. Mines,
the Equity Players
$40 lot
Inc.. no par
5 Litchfield Linoplate Co.,com- _
1,500 Horn Silver Mines Co., par
300 No. Amer. Theatres, Inc.,
$1600
$20 lot
$1
class A, no par
600 No. Amer. Theatres, Inc. J lot 2,000 Nor. Amer. Theatres, Inc..
class A
$6,000
class B, no par
1,000 Nor. Amer. Theatres, Inc.,
19 92-100 Federal Telep.& Tel.
lot
class B
ommon
1.000 Furnace Creek Copper Co.,
Co.,a-1000 Fed. Tel. at Mtg.
534
$15,500
$1 lot
par $1
Corp., common, no Par
50 Co-Nut Products Co., par $10.
199 2-10 Fed. Telep. Mfg. Corp. lot
334 Victory Metal Co., par., par $10
preferred
334 Victory Metal Co.,com.,par $10 $20
136 75-100 General Drop. Forg850 Amo 011 & Gas Co., par El
lot
ing Co., common, no par
200 Hallmo 011 Co., par $1
26 194-1000 Hubbell Realty Co.,
625 Solo Oil Co., par $1
common, no Par
50 Co-Nut Products Co.. par $10.
500 Bt. Louis Motor Coach Corp.
$100 333 Victory Metal Co.,com..nar$10
class A v. t C
100 St. Louis Motor Coach Corp. to 333Victory Metal Co.,pref.,,psr$10
4200
850 Amo 011 & Gas Co
class B v. t c
200 Hallmo Oil Co., par $1
lot
Govt. Lot 2 and E% of 133 of Govt.
625 Solo 011 Co., par $1
Lot 3, all in Sec.3, Twp. 20 South.
50 Benmo Oil Co., par $10
Range 17 E., containing about
65 Flagler Invest. Co., com
94 acres, situated in Citrus Co..
$50 lot
106 Dixie Acres Corp., pref
Fla.; W% of SW% and SE% of
15250
122 Dixie Acres Corp., common...I lot
SW% and SW% of SE% of Sec.
26, Twp. 17 S., Range 19 E.,con923. Datura Realties, Inc., com-$100 lot
5 Ocean Park Realty, common-550 lot
taining 160 acres, situated in
$500 lot 16 2-3 Florida Investors Corp.,
Citrus Co., Fla
common
$100 lot
12 Peer Oil Corp., no par
1,000 Penn Steel Casting Co., com14250
300-1000 Compania Azucarera Sala500 Penn Steel Casting Co.. pref
manca, common, par $10
Bonds.
Per Cent.
11 Comparda Azucarera Salamanca,
$1,000 Vermont dr Quebec Corp 1st
preferred
mtge. skg. fund 8s, ctf. dep
6022-10000 Compania Azucarera ,$120
$55 lot
lot $10,000 Alaska Anthracite RR.,inc.
Salamanca, pref
Washington, 1st 20-yr. s. f. 65,
25 Cuban Coffee Co., pref., par $10
Mfrs. Trust Co., ctf. dep
12-40 Peer 011 Corp., corn.. no par.,
$30 lot
$10,000 New Home Co. 20-yr. 0011.1885
$1,000 Island Refg, Corp. 7% ctf.
trust 7s, Oct 1 1945
lot
of deposit
1,500 New Home Co
100 Cuban Coffee corn., par 810.
$8,000 Central Hudson Steamboat
12 Central Mexican Oil Co., par $10
Co. 1st 5s. April 1 1933, April 1
3 Cities Service Refg. Co., com.,
1927 and subsequent coupons atno par
tached
14
6 Cities Say. Refg., pref
$200 lot $1,000 Consolidated Metals, Inc.,
27 Inland Rubber Co., pref
10-yr. let lien cony. s. f. 7% cou4 Lambertville Rubber Co.. no par $10 lot
Paul,
pon note, April 1 1936, April 1
3 Goodyear Rubber Co., St.
1927 and subsequent coupons at$10 lot
6% Preferred
tached
$95 lot
2 Goodyear Rubber Co., com., no
$10 lot $25,000 William J. Oliver Mfg.
par
Co., Knoxville, Tenn., let 65_ _$100 lot
2 Goodyear Rubber Co., N. Y.._1
2 Goodyear Rubber Co., N. Y__ 1550 lot 52,000 Deutscher Vereln 30-yr. inc.
deb. 48, 1955
$195 lot
Protested note, Oct. 11926, $18,300,
Racine Horseshoe Tire Co...59,500 lot $1,000 Deutscher Verein 30 yr Inc.,
deb. 48, 1955
Protested note, T-A, Jan. 24 1927,
$95 lot
$9,000 Amer. Rubber & Tire let 6s,
$5,948.22, Sheldon Axle & Spring
1936
$100 lot
$100 lot
Co., WIlkesbarre, Pa
$400 Inland Rubber Co.2d 6s, April
Six unpaid notes, total $9,137.47.
1930: 27 abs. prof
$200 lot
March 25 and April 30 1924,
$100 lot $390 E. F. Drew & Co. 7-yr. 4%1
Vulcan Rubber Co
gold bond, due Jan. 1929
Unpaid account, July 12 and 20,
$1,430 E. F. Drew & Co., 12-yr.41125
1927, $1,494.21, San-It Rubber
inc. deb., due Jan. 1934
00 lot
$1
.
lot
Co
•
$780 E. F. Drew & Co. temp. W.
Balance unpaid sect.. Jan. 13 1925,
mtge. bonds on inc. deb
$860.03, Blekre Tire & Rubber
$10 lot $2,000 Alaska Fuel Pow.& Tramp.
Co
lot 6s, Jan. 11927, rag
$7 lot
575 Tear-Off Bottle Seal Co., N. Y.
$2 lot $39,500 demand note of Vose VaCorp., common
River
cuum
Cleaner Corp., int. 6%.
Solomon
dr
Council
City
1,174
various dates from Nov. 5 1926,
$6 lot
RR. Co., par $10
through to May 20 1927
$10 lot
40 Consolidated Lake Superior Co.$1. lot
$50,000 Celotex Co., 10-yr. cony.
360 Furnace Creek Copper Co., Par
s. f. deb.6s, Nov. 11936
90
$1 lot
$1
$2,682.50 promissory note of Da200 Tramp Consol. Mining Co.. Par
tura Realties, Inc
$1 lot
$150 lot
$1
$250,000 promissory note Shoreland
200 Alaska Fuel, Power & Tramp.
Co., dated April 5 1926
8200 lot
$3 lot
Co., par $10
3599
The following additional sales were made at special sale
on Friday, Dec. 30, by Adrian H. Muller & Son, N. Y.:
Shares. Stocks.
$ per oh. Shares. Stocks.
$ per sh.
3,750 Western Smelt. dr Pow. Co.,
9,986 Continental Mines. Ltd,
common
par $10
$105101
22c.
6,250 Western Smelt. & Pow. Co.,
$12,167 Penyon Syndicate Agreement, ctf. of int., aeries B
par 510
5105 lot
$45 lot
1,000 Western Smelt. dr Pow. Co.,
Ctf. of partly paid stk. 500 abs.
Hillside Impt. Corp., cap. stk.
par $10
$155 lot
6,250 Western Smelt. dr Pow. Co.,
(fully paid); 250 units etc. of
beneficial int. in trust created
par $10
$305101
under a certain trust agreement,
380 Recreator Co., pref., par $50:
dated June 101926,between J. A.
190 common, no par
$40 lot
Wigmore Land Co. and others,
2,417 Poole Engineering & Machine
Co. B
$500101
$5,000 lot
33 1-3 The Sterling Cork & Seal Co..$3 lot 19,450 Northern Texas OH Co..
par $5
50 Co-Nut Products Co., par $10;
$40101
850 Amo Oil & Gas Co., par SI;
500 Motor Impts., Inc., common.$25 lot
Ctf. of partly paid stk. 500 sits, of
625 Solo Oil Co., par $1; 333 VicHillside 'rept. Corp., cap. stk.
tory Metal Co., com., par $10;
333 Victory Metal Co.. prof.,
(fully paid);250 units ctf. of benepar $10; 200 Hallmo 011 Co., Par
ficial int. in trust created under a
certain trust agreement, dated
$1
$16 lot
June 10 1926, between J. A.
153 Bergner & Engel Brew., pref.$45 lot
100 Arcady Farms Milling Co..
W1gmore Land Co. and others,
let pref
35,000 lot
$5 lot
5 Amer. Philippine Co., pref
$6 lot 24 Deep Sea Fisheries, Inc.. v.t.c- -$1 lot
300 Frank & Dugan, Inc., pref....510 lot 200 Gardendale Dev. Co., $1,000
each
500 Mtzner Devel. Corp. tr. ctfs_.$95 lot
$100101
1,000 Twistop Products Corp..
30 Pneumette.Inc.. pref
20010$
pref., par $10
$5 lot 500 Solitaire Oil & Gas Co. pref.;
100 Solitaire 011 & Gas Co. coin.,
1,185 United West Indies Corp.,
par El; 1,220 H. H. Babcock dr
preferred
$50 lot
Co., no par; 135 Seneca Copper
500 Dozen Rug Co., prof
820101
Corp., no par
$60101
$10,000 promissory note, Basalt
$405 lot
Rug Co., dated Apr. 2 1926._._.$50 lot 60 Miami Jockey Club
200 Allied Grocers Wholesale Corp.,
$7,500 promissory note, Bonet
no par; stock subject to the right.
Rug Co., dated May 6 1926_546 lot
title and interest of George Grif$80,000 Bozart Rug Co. 10-yr. 7%
fiths in 100 abs. thereof....$2,500 lot
gold notes, Dec. 1 1937
5125 lot
731 Hostess Pub. Corp., common
150 Simms Magneto. corn.;2% par(formerly Allied Grocers, Inc.).
ticipation in 2d oil synd., Fergus
no par;8 Hostess Pub. Corp., pf-$5 lot
Reid. syndicate manager
$25 lot
Notes and claims against Hostess
$36,000 Leyden Coal 1st 6s, Apr. 1
Pub. Corp. aggregating $49,1931: 2.000 Leyden Coal Co._.$125 lot
50 Western Mfg. & Oil Co.:
625.13 and interest
$30 lot
150 Northslde Holding Co. (Fla.
16 6-10 Western Mfg. dr Oil
corp.). no par
$10101
Co., 1st pref.; 48-10 Western
Mfg. dr 011 Co., 2d prof
$15 lot 25 Associated Land Owners of Fla..
$50101
250 Amer. Keyless Cap Corp..
Inc.. prof.; 250 common
common; 50 preferred
$2 lot 200 Batopilas Mining Co.. par $20_59 lot
1-12 Western Knitting Mills, Inc.,
$90 Winyah Park Realty Co. of
Is class A, no par
Pelham
$7 lot
85101
Per Cent.
Bonds.
3.300 Independent Starch Co.,
Inc., N. Y., par $10
$2,500 lot $72,500 Frank & Dugan, Inc., 7%
1,880 Niagara Electrolytic Iron Co.,
gold notes
$80 lot
preferred
$100lot $60,000 Radiant Heat Corp. of Am.
175 Indian Co..common
10-yr. deb.85, Apr. 1 1934_ .$120 lot
10
1,000 Motor Impts., Inc., com_..160 lot $2,000 Moore Filter Cos. notes
(N.Y. and Maine), dated Dec. 1
1,800 Tunica Petroleum Co., Inc..
1919, endorsed without recourse.$5 lot
common
$10101
By A. J. Wright & Co., Buffalo:
$ per sh.
Shares. Stocks.
7.500 Hudson Bay Mines, Ltd.,
50c. lot
par $5
55 Jackson Health Resold, pref _38 lot
10
1 Wanakah Land Corp
6,000 Homestake Mines Finance
65c. lot
Co., Ltd.. par $1
75 Elmhusrt Investml Co.. Dar $1- 1.40
3 Roch. Lockport dr Buff RR., pref.. 1
5 Roch. Lockport & Buff. RR_ __ _50c. lot
7,500 Ranger Refining dr Pipe Line
$1101
Co., par $1
25 Rock Island Southern Corp....11 lot
100 Terrance Finance Co., Inc_ _ _ 3
Shares. Stocks.
$ Per oh.
1,000 Wettlaufer Lorrain Silver
75e. lot
Mines, Ltd. ,par $1
15 Smith & Sons Corp., pref _ _$250 lot
734 Smith at Sons Corp., no par_ _$11 lot
33$ Buff. Lockport & Roch.Ry., pf.51 lot
631 Buff. Lockport & Roch. Ry _83.50 lot
50 Buff.& Lake Erie'Frac. Co., pf.$1 lot
45 Buff. & Lake Erie Tree. Co____$1 lot
5 Kornit Mfg. Co., par $10
250. lot
25 Premium Motor Corp. of N. Y.,
common temp. cu., no par_ _250.lot
10 Mountain View Devel. Co..810 lot
By Weilepp Bruton & Co., Baltiniore:
$ per oh.
Shares. Stocks.
SI lot
200 Anticor Mfg. Co
10 Baltimore Peach Bottom Slate
$2 lot
Corp.,6% pref
10,280 Canadian Petroleum. Lel.,
$2 lot
common, Par $1
277
I Crown Cork & Seal Co
Shares. Stocks.
$ per oh..
458 Guaranty Co. of Md., 20 Prof..
par $50; 1,163 1st prof., Par
$115101
$50
500 Philipaborn's Inc., stk, trust-il lot
1,000 Tash-Orn Mines,Ltd.,Par$1.82 lot
10 Wickwire Spencer Steel Co..
common trust certificates
$1 lot
By R. L. Day & Co., Boston:
$ per oh. Shares. Stocks.
$ Per *hi
Shares. Stocks.
98
100 Nat Shawmut Bank_ _ _336 ex-div. 5 CitY Mfg• Co
71
4 Grinnell Mfg. Co
10 Des Moines Joint Stock Land Bk 27
$1 lot
25Conn. Valley St. Ry., pref
25 San Antonio Joint SU Land Bk _103
Ry.
pref
Consol.
Worcester
In
Mass.
$4
lot
Park
Trust
Co.
of
50
130
5
liquidation
8-834 110 Havana Marine Rys
10 Ft. Dodge, Des Moines & So. III
An assignment covering 138 Park
I 4
RR.com
Trust Co. of Worcester, in liqui8
50 New England Fire Ins.. Par $10_ 58
dation
100 Plymouth Cordage Co
9634
9 Waltham National Bank. par $75_138
32 Fairbanks Co., corn., par $25.._ - 33$
4 Kansas City Joint Stock Land Bk. 2
1 Fairbanks Co., com. ctf. den..
5 Southern Minnesota Joint Stock
30
par $25
Land Bank
134
23$
75 Kansas City It. Stk. Land Bk.$150 lot 362 Saco-Lowell Shops, corn
20 Everlastik Co., com
20
20 Lancaster mills, pref
433$ 125 First Nat. Copper, par $5...j. $4 I
30 Arlington Mills
lot I
897 Globe Silk Works
$5 lot 600 Bay State Gas. Par $50
4-5 '
14 Otis Co
3034 154 Kinney Mfg. Co.. pref
$1 lot
102 Fairhaven Mills, pref. ctf. dep. 334 15 Stork Co.. Prof
5 Saco-Lowell Shops, let pref
1034
60 Cordaville Woolen Co., 1st pref. 1
2d pref.__ 634
75 Everett Mills
634-634 12 Saco-Lowell Shops, corn
234
25 Saco-Lowell Shops,
100 Connecticut Mills, com. Cl. A,
10 Warren Soap Mfg. Co.,com.--$1 lot
65
par $10
1034 10-15Bonanza Devel.Co..Par $5$554 lot
35 Ipswich Mills, pref
38 West Boylston Mfg. Co., com_ 534 50 Wiggin Terminals, Inc., pref._ 30
25 New Eng. Pow. Assn., pf__99 ex-div.
5 Queen City Cotton Co
1
74 1
18 American Linen Co
18110 20 Draper Corporation
5 Hamilton Mfg. Co
J lot 7 Hyde Engineering Co., com.cl.B1Pr"
60 sharp Mfg. Co., prof
1034-1034 10 Hyde Engineering Co.. pref.- j $101101 I
22 U. S. Worsted Corp., 1st pref..
25 Electric Boller Corp
4 Suncook Valley RR
par $IN
$8
$33 U. S. Worsted Corp., 1st pref., $40 2 Crown Central Petrol. Corp
scriplot 50 Calumet dc Jerome Copp.. Par $1 lot
i
109 U. S. Worsted Corp., com____
15 Caddo Central Oil & Ref. Corp.
-,
10 U.S. Corp., lst pref
134 50 Ray Hercules Copper, par $5_
9 Davis Mills
8510$
4834 17 Electric Boiler Corp
2 West Boylston Mfg. Co., corn... 534 30J. R. Whipple Corp., com
134
8 Pepperell Mfg.Co
1003440034 250 Boston dr Ely Consol. Mining
14
Co., par $5
89 Border City mfg. Co
$25 lot
$5 lot
6 Union Cotton Mfg. Co
653$ 25 Electric Boiler Corp
98
5 Babson Dow Mfg. Co., 1st pref.
81 Quissett Mills, com
146 Border City Mfg. Co
14%11 Babson & Dow Mfg. Co.,2d pref.} $5
40 5 Babson & Dow Mfg. Co., coin- lot
16 Butler Mill
59 Hamilton Mfg. Co
$20 lot ,44 Boston Belting Corp., prof.,
40c.
1434 I par $50
148 Border City Mfg, Co
734
15 Fairhaven Mills, com
$30 lot 15 Tyer Rubber Co., corn
153446 32 Southern States 011 Corp., par
30 Ipswich Mills, pref
100.
14341 $10
325 Border City Mfg, Co
5 Bristol Mfg. Co
900 5 Clinton Wright & Wire Co.,
1 com. temp. ctfs., par $50
$275
300 Connecticut Mills, corn., Cl. A,
80e 18 Nashua Street Ry. Co
par $10
lot
28 1$1.000 Wickwire Spencer Steel Co.
11 Whitman Mills
133444
7s, 1935, elf. dep
9 Border City Mfg Co
I
3600
THE CHRONICLE •
Shares. Stocks.
3 Per oh. Shares. Stocks.
per oh.
213 Wickwire Spencer Steel Co.,
33 Southern States 011 Corp.,
10c.
com. v. t. c
par 510
$7 lot
5 Phoenix Insurance Co
10 Central Electric Trustees of Mass
837
100 Merrimac Hat Co., corn. un20 Internat. Abras. Corp.. 1st Pf.
$40 Intarnat. Abras. Corp. dtv.warr 890
dep
6334 ex-dtv.
10 Emerson Shoe Co. 3d pref. lot 200 Coin Sorting & Counting Co..
ctf. dep
Boston, par $10
50e. lot
20 Keystone Consol. 011 Corp.,
100 Nat. Fireworks Co. of Md
$35 lot
par $10
10 Osage & Eastland Oil Co
$3 lot
$633.58 U. S. Worsted Corp. ELL 65
500 Keystone &tether Corp.,
300 King Pneumatic Tool Co.,
par $10
$11 lot
8% preferred
$100 lot 45 Eastern Mfg. Co., pref
2514
42 Quincy Market Cold Storage
100 Eastern Mfg. Co., corn
134
& Warehouse Co., corn
27
100 Saco-Lowell Shops, corn
234
3 Suburban Elec. Sec. Co., corn
1 $15 4,101 1-10 Racine Horse Shoe Tire
35 Suburban Elec. Sec. Co., 2d pf_f lot
Co., Equitable Trust Co., N. Y.,
2-64 Schooner Charles H. Klinck_ _85 lot
deposit rects. under plan and
1-64 Schooner George E. Klinck_.55 lot
agreement for liquidation of debt
50 U. S. Worsted Corp.. corn
dated April 30 1926
$25 lot
1 330
25 Trinity Copper Mines, par 55_ _ J lot 300 Trinity Copper Co., par $5.....
15 Quincy Market Cold Storage
80 Industrial Laboratories Inc.,
class A common
& Warehouse Co., pref
6114
100 Lockwood, Greene & Co.,
160 Industrial Laboratories Inc.,
Inc., pref
class B common
$111
20 Lockwood, Greene & Co., Cl. BJ lot 200 First Nat. Copper Co., par $5_
277 Blakeslee Motor Car Co
85 lot 40 Wilkinson Motor Starter Trust,
28 Eagle Island Coal Co., pref.__ 10c.
par $10
$70
48 R. Marson Co., pref
80 Amer. Industrial Corp., par $5 lot
2
56 Blakeslee Motor Car Co
$5 lot 2,625 Apex Refining Co., par $1._
129 Orleans Associates, cl. A_ __ _1E25 15 Petroleum Syn. Corp
169 Orleans Associates, cl. B
lot 60 Globe Cons. 011, pref., par $1
38 Quaker City Cab Co., pref..
$5 lot 295 Globe Consol. Oil, corn
100 The Tech Block, Inc
$1 lot 5 Tex La Home Oil, pref
1 Heywood-Wakefield Co., corn- 3334 10 Tex La Horns Oil, corn
500 Dorothy Flagstaff Gold Mining
1 Fitchburg Gas & Elec. Co., trust
Co., par $1
etfs., par 350
124
150 Tyer Rubber Co.,cora
734 30 U. S. Worsted Corp., pref
20 American Granite Saw Co_
lot 100 U. S. Worsted Corp., corn_ _
20 DuPont Canning Co., par $50
$1 $63,427.05 note dated Boston.
July 1 1926, on demand, signed,
20 DuPont Ry. & Land Co
lot
by Tula Iron & Lumber Co.__
450 Haverlock Holding Co., corn.$20 lot
$24,894.11 note dated Boston.
97 Wickwire Spencer Steel Corp.,
July 1 1926, on demand, signed
$7
common
by Tula Iron & Lumber Co._ $100
140 Wickwire Spencer Steel 7% lot
$13,753.48 note dated Boston. lot
reg. notes
May 1 1926. on demand, signed
500 Inter-Mtn. Wat. & Pr., par 81 10c.
by Tula Iron & Lumber Co....
45 Wickwire Spencer Steel Corp.,
$1 lot Note for $25,000 dated Miami,
COLO. V. t. C
Fla., Jan. 27 1927, due 2 yrs. af3 Sullivan Machinery Co
51
ter date to order of Haverlock
100 Old Colony Investment Trust_ 3034
Holding Co., given by Marion
10 Rockingham Motor Speedway,
E. Pike an extended $10,000
par $50
$20 lot
275 Traders Coal Co.,Scranton,Pa.$50 lot
one yr. after date, $10,000 two
20 American Pictures Assn
yrs. after date, $5,000 three yrs.
$1 lot
190 Traders Coal Co.,Scranton,Pa.$40 lot
after date
$20
Note for $25,000 dated Miami, lot
3 Mass. Ltg. Cos.6% pref. tr. ctf8_102
500 Hamlet Mining & Milling Co_
Fla., Jan. 27 1927, due 2 yrs. af13 1-3 Amer. British Mfg. Corp
ter date to order of Haverlock
$9
500 Independent Lead Mines, Ltd_ lot
Holding Co., given by Marion
E. Pike and extended 55,000
1,000 Niagara Chief Copper Co...
3,200 Majestic Mines Co
3 yrs, after date. $10,000 4 yrs.
after date, $10,000 5 yrs. aft.date
25 Mo.-Kan. Farms, cl. A corn.... 3
20 Farms Co., Inc., class A corn.__ 20
Rights.
$ per Right.
4 Holyoke Water Power Co
5 Florence Stove Co., corn
53
143
Bonds.
4 units Mutual Finance Corp
Per Cent.
5234
5,000 rubles internal Russian 5145. 1234
105 Wickwire Spencer Steel Co.
COLO. V. t. C
$4 lot 25,000 francs Midi RR., France,
Os, Dec. 1960
100 J. F.Howard Inc., pref., par$251 $5
3214 per 1,000fr.
50 J. F. Howard Inc., corn. A
lot $5,000 Trustees Ritz-Arlington
Trust 1st 65, Sept. 1946
5 U. S. Machine Gun, class 3
98-99
trust ctfs
$1 lot $22,000 Coldak Corp. 1st 614s,
1933
20 Mass. Nor. Rye., pref
82 lot
30 & int.
11538 Collingwood Shipyards Ltd., $10 $10,500 Amer. Nat. Co. of Saracommon
sota, Fla., 1st serial 75, 1932lot
1937 ctf. dep
20 Collingw'd Shipy'ds Ltd., pref.
50 flat
$2,000 A. J. Comeau West Palm
$1,000 Beacon Coal Co.(is, Jan.'44
Beach, Fla., 1st 75, Apr. 15
4 Beacon Coal Co., pref
1927
11 Beacon Coal Co., corn
$250
50 flat
2 Blackstone Valley Trans. Co_ __ _ • lot $3,000 Braden Apartment Co..
Bradenton, Fla., lot 7s, Apr. 16
25 Seaconnet Mills
1933
5 Rhode Island Pullclean Towel
50 flat
$5,000 Detroit Ypsilanti Ann ArCo., pref., par $10
bor & Jackson Ry. Co. 1st 5s,
5 Rhode Island Pullclean Towel
Co., corn., par $10
Feb. 11926. reg. ctf. dep
3 flat
I
.$134
3
3
By Wise, Hobbs & Arnold, Boston:
Shares. Stocks.
$ per oh. Shares. Stocks.
$ per share.
30 Nat.Shawmut Bank____335% ex-div.
. 1,000 Pollock Pen Co
850 lot
22 Ipswich Mllls pref
1534 100 MIssouri-Kansas Farms Co...1-134
1,001 Hamilton Mfg. Co
25c.-32c. 180 Dillon Sage Inc
$1 lot
100 Butler Mills
41
50 Kansas City Joint Stock Land
Bank
20 Fairhaven Mills p1. ctf. dep
4
234
27 U.S. Worsted 1st pref
$2 lot
134 16 6-10 Int. Products Corp
$75 U.S. Worsted div. scrip
$2 lot 50 Eastern Leather Co., pref
8734
388 Ipswich Mills
90c. 140 Springfield G.& L. Co
65
80 Real Estate Impt. Trust
47
47
250 Amer. Woolen Co., pref
7 Nyanza Mills
525 lot
2534 1,000 Cont. Mines, Ltd
22 B.B.& R.Knight class A
1534 5 Jones MOD. & S. Corp., Cl. A... 26
$35 lot
281 Saco-Lowell Shops 2d pref.... 634 100 U. S. Worsted Corp
40 Roxbury Carpet Co
734 200 Worcester Consol. St. Ry. 1st
preferred
100 Sharp Mfg. Co. pre:
1534
934
875
359 York Mfg. Co
2034-2034 6 Boston Real Estate Trust
64 Fairhaven Mills
$214 lot 95 Wickwire Spencer Steel v.t.c__ _$3 lot
590 Great Falls Mfg. Co
534-634 3 Boston Cham. of Corn. Realty
Trust 2d pref
15 U.S. Worsted Corp., 31st pref..
634
$9 1st pf. div. scrip
$8 lot 92 Joint Stock Secur. Co. of Mass.831-934
100 Sharp Mfg. Co
65c.-75c. 1,812 Sullivan Poc. Coal Co. v.t.c_55 lot
534-614 100 Armour & Co. 01111. class A._854-834
55 Everett Mills
4334 125 Stollwerck Choc. Co. 1st pf-13-14
30 Arlington Mills
26 Androscoggin Mills
37
50 Smith de Dove Mfg. Co., pref. _ 3334
9 Chace Mills
125 Hicks-Goller Shoe Co. 8% pf__ S1 lot
2
20c. 150 Southern Fields Petroleum_ ....51 lot
73 U. S. Worsted Corp
15 Acadia Mills
1234 20 Post Office Sq. Bldg. Tr. pref._ 6
300 Algomah Min. Co
$15 lot
43 Lancaster Mills
4-5
2-10 Indian Orchard Co
10534 17,531 Utah Metal & Tunnel Co.... 134
100 Winona Copper Co
$13 lot
40
5 Meredith Linen Mills pref
7
33 Suncook Mills
1534 17 E. E. Gray Co. pref
$20101
425 South Lake Min. Co
11 Ft. Dodge Des Moines & Sou.
RR. Co., pref
3
210 Whitman Bennet Fin. Corp..
preferred
10 Mass. Consol. Rys. pref____20e. lot
$1034 lot
20c.
100 Worcester Con.St. Ry. 1st pf _ _ 1514 2,030 Kallx Cup Co
300 Virginia Joint Stock Land Bank 1
$1,000 New Eng. Invest, Security
200 011bway Mining Co
$50 lot
Trust agreement, pref. as bonus;
100 Fairbanks Co. pref
25 North Boston Ltg.Prop. v.t.c. 81
634
100 Home Bleach SZ Dye Works_ _510 lot 300 Troy-Manhattan Copper Co_512 lot
7 Boston Insurance Co____998 ex-d1v. 15 Southern Minn.Joint Stock Land
Bank
28
5 Washington Water Power Co.,
$5 lot
18134 ex-div. 100 Arcadia Congo,. Min. Co
228 Quincy Mkt.Cold Stor.& Ware3Sub.Elec. Scour.2d pf.; 37 Trinity
house Co
$9 lot
2534
Copper Co
1
50 The Threadwell Tool Co. pref..810 lot
16 Washington Invest. Trust
10 Puget Sound Power & Lt. Co.
200 Overman Cushion Tire, Inc.,
6% pref
1
91 ex-div.
class B
50 Keweenaw Copper Co., $18 paid
30
75 Old Colony Inv. Trust
In
$5 lot
$1101
25 Lungmotor pref
200 Technicolor Inc. v.t.c
9634-97
134
48 Plymouth Cordage Co
4
285 Lockwood Greene & Co. pref._ 234 465 Utilities Mfg.& Bales Corp
$1 lot
$10 lot 150 Dillon Sage Inc
57 Lockwood Greene & Co
810 lot
2 Amer. Womans Realty Corp. pf__ 10c. 200 Wyandot Copper Co
515101
34
300 Wyandot Cop. Co
20 Heywood-Wakefield Co
2,500 CHUM Mining Co
$2 lot
71
10 Graton & Knight Co. pref
234-234
100 Franklin Porcelain Co.; 100 pf..$1 lot 18 Saco-Lowell Shops
$25 lot 50 Lord Electric Co. pref
125 Caracas Sugar
10 Greenfield Tap & Die Corp. pref. 9514 5 Nat, Un. Fire Ins. Co. of Pitts 352
49 Haskell-Wirt Co
5200 10t
b Columbian Nat. Life Ins. Co_ __ _314
[VOL. 125.
Shares. Stocks.
$ per eh.
$ Per oh. Shares. Stocks.
455 Mass. Security Corp. pref., 91.
100 The Amiquold Co. and 100 pf_ _ 51 lot
Mass. Sec. Corp. as bonus
100 Wickwire Spencer Steel Corp.
2
2,500 Pacific Steamship Co
5
v. t C
$6 lot
143 Business Real Estate Trust_ _ _ _ 35
Note of F. W.Estabrook dated June
54 Saco-Lowell Shops 1st pref__10%-10%
22 1917, secured by $50,000 Es150 Dillon-Sage Inc
tabrook Gold Dredging 1st 65,
$1 lot
20 Austin Nichols & Co., Inc., pi
22
due 1927, and 200 pref
$1 lot
74 Robinson 011 Eq. Inc
$1 lot
5 Am. Mot. Pict. Corp. pref
Bonds$1 lot
Per cent.
5 Am. Mot. Pict. Corp
$1 lot $5,000 Lockwood Greene & Co.
2,300 Rhode Island Coal Co.. reInc., 7s, due Mar. 1933
45
organization committee recelpt_550 lot $5,000 Kansas City Joint Stock
200 Butte-New York Copper Co_ _ ..$5 lot
Land Bank 5s, due 1934-1964... 76
19 9-10 Wills-St. Claire Inc., 1st pf.$1 lot $3,000 Texas Trust 1st 5s, due Jan.
200 Mitchell Mining Co
1937
$5 lot
71
400 Consol. Mercer Gold Mines_ _510 lot $25,000 Detroit United Rys. 1st
coll. tr. 65, due July 1 1929
100 Horton Corp. 7% non-cum. 2d
1
pref.; 25 Horton Corp. vottrig
$1 lot $1,300 The Kansas City Rys. Co.
40 Carson Hill Gold Mining Co__ _ _51 lot
2d mtge, skg. Id, 145, ser. A.
5,000 Am. Mln. & Mill. Co
5
ctf. of deposit
4
50 Perry Investment Co
$100 lot 36 notes of the C. W. Dyer, Inc.,
90 Western Mass.Cos._5911-5934 ex-div.
total $191,417.84; 5 notes of the
Dyer Construe. Co. on which a
7,270 Cooper Pharmacal Co
1
net balance is due of $4,897.57:
206 Submarine Signal Co
434
371 Pollock Pen Co
note of the McLean-Dyer Co.
$5 lot
50 Vitamin Food Co.v. C. c.: 50 pref.
amount $20,000, less amt. pd.
v. t C
thereon, $17,419.96, making a
$25 lot
3,117 Puget Sound El. Ry
net total unpaid 82,580.04; note
$5101
700 Staked Plains Trust.; $31,250
of the Mc-Dyer Co. dated Jan. 10
"A" ctfs. 308 rights
$5,000 lot
1925, due Jan. 181928. amount of
50 J. R. Whipple Corp
2
note, together with open account,
1,250 Hamburg Mines Co.; 2,000
$9,817.56
$20,000 lot.
Am. Consol. Min.; 50 Santa Fe
$10,000 Amer. Zinc Extractor deb.
Gold & Copper Min. Co.; 500
6s, due July 1928
$21 lot
Mines
Fortuna
Corp.; 50 First
55.000 White River RR. 5s, due
Jan. 1933; $4,000 demand note of
Nat. Copper Co.; 100 National
Air Treating Co
$15 lot
the White River RR.Co., payable
22,000 Wyoming Eastern Oil Co.:
to Chauncey D. Parker, dated
66 2-3 syndicate units
Jan. 1 1915
$400 lot
$5 lot
200 No. Am. Theatres class A and
5,000 rubles Russian Govt. internal
200 Class B
$100 lot
5145. Issue of 1916
$6101
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Railroads (Steam).
Central of Georgia KY
Delaware, LackawannaWest.(quer.)_ _ _
Extra
Georgia RR.& Banking (quar.)
11ouston & Texas Central
Norfolk & Western, adj. Prof. (quer.) _ _
Pittsburgh, Cin.. Chic.& St. Louts
Pittsburgh West Va. corn.(quar.)
Rich. Fred & Potomac, corn & div. obit_
Common, non-voting
Per
'nen
Cent. Payahhs.
Books Closed.
Days Inclusive.
3
Dec. 31 Holders of rec. Dec. 31a
51.50 Jan, 20 Holders of rec. Jan. 7
$1
Jan. 20 Holders of rec. Jan. 7
214 Jan. 15 Jan. 2 to Jan. 14
5
Dec. 15 Holders of rec. Dec. 150
*1
Feb. 18 *Holders of rec. Jan. 31
234 Jan, 20 Holders of rec. Jan. 10a
*114 Jan. 31 *Holders of rec. Jan. 16
334 Dec. 31
3
Dec. 31
Public Utilities.
2 Dec. 31 Holders of rec. Dec. 31a
Bell Telephone of Pa. (quar.)
Cape & Vineyard Elec. Co., pref.(quar.) 1% Called f or redemption Jan. 1 1928
Central Hudson Gas & Elec, corn. v t c_ 50c. Feb. 1 Holders of rec. Dec. 31
Central Power Co.(Neb.) pref.(quar.).. 1% Jan, 15 Holders of rec. Dec. 310
Central Public Serv. Corp., pf.(quar,)_ - $1.75 Jan. 1 Holders of rec. Dec. 18a
1% Jan. 15 Jan. 1 to Jan. 15
Cin.,Newport & Cor. L.&Tr. corn (qu.)
1% Jan. 15 Jan. 1 to Jan. 15
Preferred (quar.)
Jan, 3 Holders of rec. Dec. 150
2
City Gas Co. of Norfolk (quar.)
234 Jan. 2 Holders of rec. Dec. 16a
Consumers Gas(Toronto)(quar.)
Dec. 31 Holders of rec. Dec. 31a
Diamond State Telephone,corn.(quar.)_
1% Jan. 1 Holders of rec. Dec. 15a
Eastern N.J. Power.7% pref.(quar.) .
2
Jan, 1 Holders of rec. Dee. 150
8% preferred (quar.)
1% Jan. 1 Holders of rec. Dec. 156
preferred
(quar.)
634%
3
Feb. 1 Holders of rec. Jan. 10
Edison Elec. III. of Boston (quar,)
Jan. 16 Holders of rec. Dec. 31
Electric Investors. Inc.. corn (in corn stk) (n)
(I) General Public Service, $6 pf.(qu.). *$1.50 Feb. 1 *Holders of rec. Jan. 9
*51.75 Feb. 1 *Holders of rec. Jan. 9
Convertible preferred (quar.)
Greenwich Water & Gas Co.,6% Pf.(qu) 1% Jan, 3 Holders of rec. Dec. 22
a
en
lb 5 Holders of rec. Jan. 20
Havana Elec. & Utilities Co. 1st pf (qu.) $1.50 Feb.
5 Holders of rec. Jan. 20
$1.25
Preference (guar.)
Jan. 3 Holders of rec. Dec. 23a
5
Flolyoke Water Power (quar.)
1% Jan, 14 Holders of rec. Dec. 240
Kentucky Utilities, pref. (guar.)
Jan. 1 Dec. 26 to Dec. 31
2
Kinloch-13loomington Telep.corn (qu.)_
1 Dec. 26 to Dec.31
134 Jan
Preferred (quar.)
214 Dec. 31 Holders of rec. Dec. 23
Lynn Gas & Electric
Missouri Gas & Elec Service, $6 pf(qu.) 51 50 Jan. 16 Holders of r c Dec 31
Jan. 16 Holders of rec Dee. 310
Mountain States Telep & Teleg.(qu )- - 2
Jan. 1 Holders of rec. Dee. 16a
Nassau & Suffolk Ltg ,common (quar). 1
3 Holders of rec. Dec. 200
New Eng.Invest. & Security, pref
New Orleans Public Serv.. corn. (quar.)_ 5614 Jan. 2 Holders of rec. Dec. 19a
De.
e 31 *Holders of rec. Dec. 31
New York Telephone, common (quar.)_ _ .02
Northern Connecticut Power, corn.(qu.) 25c. Dec. 31 Holders of rec. Dec. 23a
Dec. 31 Holders of rec. Dec. 23a
1.6
2214 jan.
Preferred (quar.)
25c. Dec. 24 Holders of rec. Dec. 220
Northern Indiana Public Service, corn_ _
1% Jan, 14 Holders of rec. Dec. 30a
7% preferred (guar.)
1.65 Jan, 14 Holders of rec. Dec. 30a
6% preferred (quar.)
0c. Jan: 3 Holders of rec. Dec. 150
Ohio Public Serv.,6% pref.(monthly)_. 15x
1 Holders of rec. Dec. 26
Ohio Telephone, pref.(quar.)
Philadelphia & Camden Ferry (guar.)-. $1.25 Jan. 1O Holders of rec. Dec. 27a
Jan. 31 *Holders of rec. Jan. 9
11(f)
1
Philadelphia Co., coin.(quar.)
1 *Holders of rec. Jan. 9
Common (1-120 sh. corn. stock)
J
Jan. 2 Holders of rec. Dee. 23a
51
Portland (Me.) Gas Light (quar.)
1 Holders of rec. Dec. 15a
2
Porto Rico Telephone, corn,(quar.) _
3% Dec. 3O Holders of rec. Dec. 16a
Public Service of Long Island,common
1% Jan. 1 Holders of rec. Dec. 160
Preferred (guar.)
Pub.Serv. Corp. of N.5.,6% Pf(mthly.) *50e. Jan. 31 *Holders of rec. Jan. 6
16
2-3c Jan. 1 O Holders of rec. Dec. 27
(Ariz.),
corn.
A
(mthly.)
Pub. Mil. Corp.
58 1-3c Jan. 1O Holders of rec. Dec. 27
7% preferred (monthly)
Public Util. Corp.(Del.). corn. A(mthly) 162-3c Jan. 1O Holders of rec. Dec. 27
58 1-3c Jan. 1O Holders of roe. Dec. 27
7% preferred (monthly)
Dec. 31 Holders of rec. Dee. 300
2
Quebec Ry., L., H.& Pow., corn.(qu.)_
3% Jan. 1 Holders of rec. Dec. 16a
Roanoke Gas Light, preferred
1% Jan. 3 Dec. 16 to Jan. 2
Rutland Ry. L. 11.& Pow., pref. (qu.)
4 Holders of rec. Dec. 31
San Diego Cons. Gas & El., pref.(qu.)
2
11i
% j
Jan.. 16 Holders of rec. Dec. 310
Securities Company
Jan. 14 *Holders of rec. Dec. 31
*2
Southern N. E. Telephone (quar.)
214 Dee. 31 Holders of rec. Dec. 150
Southwestern Lt. & Pr., corn. class A___
Springfield (Mass.) Ry. Cos.-1926$1.60 Jan. 3 Holders of rec. Dec. 210
Common (quar.)
$2.75 Jan. 3 Holders of rec. Dec. 210
Preferred
1% Dec. 31 Dec. 21 to Jan. 1
Spring Valley Water (quar.)
1% Jan. 2 Holders of rec. Dec. 200
Tr -City By.& Light, pref. (quar,)
111 Jan. 10 Jan. 1 to Jan. 10
Trinidad Electric Co.(quar.)
Banks.
American Union (quar,)
Far Rockaway Nat. Bank
Jamaica National (guar.)
Nassau National (Bklyn.), (quar.)
Prise° State (quar.)
Queens-Bellaire
Tottenville National
1%
5
1
3
2%
3
3
Jan. 1
Dec. 31
Jan. 1
Jan. 3
Dec. 1
Jan. 3
Jan. 1
Holders of rec. Dec. 240
Holders of rec. Dec. 3I6
Holders of rec. Dee, 200
Holders of rec. Dec. 280
Dec. 20
Dec. 21
to
to
Jan. 10
Deo. 31
THE CHRONICLE
Dile. 311927.1
Name of Company.
When
Per
Cent. Payable
Books Closed.
Days Inclusive.
Trust Companies.
Bence de Sicilia Trust (quar.)
134 Jan.. 10 Jan. 1
Joint Stock Land Banks.
Atlantic
Extra
Denver
4
1
3
Jan. 1 Dec. 27 to Jan. 1
Jan. 1 Dec. 27 to Jan. 1
Jan. I Ho ders of rec. Dec. 24
Fire Insurance.
City of New York
6
Jan. 10 Jan.
1
to
to
Jan. 9
Jan. 11
Miscellaneous.
21.25 Jan. 20 Holders of rec. Jan. 10
Abitibi Power & Paper,corn.(quar.)Alliance Realty (quar.)
62340. Jan. 18 Holders of roe. Jan. 60
50e. Jan. 18 Holders of rec. Jan. 60
Extra
Allied Chemical & Dye Corp., com.(qu.) $1.50 Feb. 1 Holders of rec. Jan. 11
50c. Feb. 16 Holders of rec. Jan. 316
American Can,common (quar.)
Feb. 1 *Holders of rec. Jan. 11
411
American Coal(quar.)
134 Jan. 1 Holders of rec. Dee. 200
Amer. Glaustoff Corp., pre!.(quar.)
$2
Jan. 2 Dec. 16 to Jan. 1
Amer. Hardware Corp. (quar.)
50c. Jan. 25 Holders of rec. Jan. 6
American Ice,common (quar.)
50c. Jan. 25 Holders of rec. Jan. 6
Common (extra)
134 Jan. 25 Holders of rec. Jan. 6
Preferred (quar.)
20c. Dec. 31 Holders of rec. Dec. 246
American Milling (quar.)
750. Feb. 20 Holders of rec. Jan. 14
Anaconda Copper Mining (quar.)
1H Jan. 1 Holders of rec. Dec. 206
Arctic Dairy Products, pref. (quar.)Associated Dry Goods,common (quar.).. 413c. Feb. 1 *Ho ders of rec. Jan. 14
*134 Mar. 1 *Ho ders of rec. Feb. 11
First preferred (quar.)
4134 Mar. I *Holders of rec. Feb. 11
Second preferred (quar.)
134 Jan. 2 Dec. 22 to Jan. 1
Atlantic Coast Fisheries, pref. (quar.)
$1
Jan. 1 Holders of rec. Dec. 270
Atlantic Ice & Coal, corn. (quar.)
33( Jan. 1 Holders of rec. Dec. 270
Preferred
Atlantic Steel (quar.)
134 Dec. 31 Holders of rec. Dec. 20
134 Feb. 1 Holders of rec. Jan. 20a
Atlas Powder, pref.(quar.)
Automobile Finance Co., pref
334 Jan. 15 Holders of rec. Dec. 31a
134 Jan. 31 Holders of rec. Jan. 16
Bancroft (Joseph) & Sons Co., Pf.(qu.)
$3
Dee. 31 Holders of rec. Dec. 20
Bankers Holding Trust, pref
134 Dec. 31 Holders of rec. Dec. 28a
Beck & Corbit Co., pref.(quar.)
Dec. 31
Bruce (E. L.) Co., pref. (quar.)
134 Jan. 1 Dec. 22 to
Buffalo General Laundries, pref. (quar,) 5631c. Jan. 2 Holders of rec. Dec. 15
Canadian Fairbanks-Morse, pref.(quar.) 134 Jan. 16 Holders of rec. Dec. 310
Dec. 15 Holders of rec. Dec. 14
2
Carey (Philip) Mfg., corn.(quar.)
134 Dec. 31 Dec. 21 to Jan. 2
Preferred (quar.)
134 Jan. 31 Holders of rec. Jan. 146
Cartier, Inc.. pref. (quar.)
'662-3
Chapman Valve Mfg.(stk. div.)
Commercial Credit (New On.), pf.(qu.) 2
Dec. 31 Holders of rec. Dec. 21
Coleman & Bell Co., pref.(quar.)
134 Jan. 1 Holders of rec. Dec. 31
Consolidated Royalty Oil (quar.)
20c. Jan. 25 Jan. 16 to Jan. 25
334 Feb. 20 Holders of rec. Feb. 106
Consumers Company, pref
Continental Motors Corp.(quar.)
20c. Jan. 30 Holders of rec. Jan. 14
Jan. 20 Holders of rec. Dec. 206
Credit Discount Corp.of Am.,co m.(qu.) $1
2
Preferred (quar.)
Jan. 1 Holders of rec. Jan. la
10e. Jan. 10 Holders of rec. Dec. 31a
Cresson Consol. Gold Min.& Mill (qu.)_
Curtis Publishing, com.(monthly)
*50c. Jan. 2 *Holders of rec. Dec. 20
*50e. Jan. 2 *Holders of rec. Dec. 20
Common (extra)
Detroit Creamery (quar.)
40e. Jan. 3 Dec. 25 to Jan. 3
Detroit Motor bus (special)
15e. Dec. 31 Holders of rec. Dec. 22
Duncan hints, pref. (quar.)
134 Jan. 1 Dec. 21 to Dec. 31
25e. Jan. 15 Holders of rec. Dec. 31a
Economy Grocery Stores Corp.(quar.) _
Edwards (Wm.) Co., 7% prof
334 Jan. 1 Holders of rec. Dec. 20
Elder Manufacturing, corn.(quar.)
250, Jan. 3 Dee. 23 to Jan. 3
First preferred (quar.)
2
Jan. 3 Dec. 23 to Jan. 3
13( Jan. 3 Dec. 23 to Jan. 3
Class A stock (quar.)
Empire Bond & Mtge. Corp.,corn.(qu.) $1.50 Jan. 14 Holders of rec. Dec. 31a
Preferred (quar.)
134 Jan. 14 Holders of rec. Dec. 31a
Egyptian Portland Cement, pref.(qu.)_ _
134 Jan. 3 Holders of rec. Dec. 20a
Equitable Real Estate Co.(New Oa.)
5
Jan. 1 Holders of rec. Dec j21
Fedders Mfg., class A (quar.)
*50c. Jan. 1 *Holders of rec. Dec. 21
Federal Drop Forge, corn
25c. Dec. 24 Holders of rec. Dec. 190
Federated Metals Corp.(No. 1)
25e. Jan. 16 Holders of rec. Jan. 3
Federal Terra Cotta, corn, (quar.)
*2
Jan. 16 *Holders of rec. Jan. 6
Common (special)
*2
Jan. 16 *Holders of rec. Jan. 6
Fiberloid Corp., corn.(quar.)
1
Dec. 31 Holders of rec. Dee. 22a
Preferred (quar.)
134 Dec. 31 Holders of rec. Dec. 220
Fifth Ave. Inv'g Corp., coin.(No. 1)._. 200. Jan. 3
*2
Preferred (quar.),(No. 1)
Jan. 3
Finance & Trading Corp., pref.(quar.)-- 13( Jan. 3 Holders of rec. Dec. 28a
Frick (A.) & Sons, corn.(No. 1)
415e. Jan. 3 *Holders of rec. Dec. 22
Prior preferred
*334 Jan. 3 *Holders of rec. Dec. 22
First National Investment Co. CIA (qu.) $1.50 Jan. 3 Holders of rec. Dee. 15a
Class A (extra)
350. Jan. 3 Holders of rec. Dec. 15a
First National Pictures, Inc., 151 pf(qu.) 2
Jan. 1 Holders of rec. Dec. 130
Second preferred A (quar.)
1.34' Jan. 1 Holders of rec. Jan. la
First National Stores, pref.(quar.)
134 Jan. 3 Holders of rec. Dec. 13a
Flint Rote Co.,corn.(quar.)
75c, Jan. 18 Holders of rec. Jan. 10
Convertible preferred (quar.)
$1.75 Jan. 16 Holders of rec. Jan. 10
Flint Mills(quar,)
1)4 Jan. 3 Holders of rec. Dec. 23a
Fraser Company,corn.(quar,)
50c. Jan. 2 Holders of roe. Dec. 24a
French Bros-Bauer Co.,corn.(quar.) _ _ _ 38340. Jan. 2 Dec. 22 to Dec. 31
Preferred (guar.)
134 Jan. 2 Dec. 22 to Dec. 31
General Alloys Co.,corn.(quar.)
4.20c. Jan. 3 *Holders of rec. Dec. 20
Gilchrist Company (quar.)
75c. Jan. 31 Holders of rec. Jan. 160
Gimbel Bros., pref.(quar.)
*134 Feb. 1 *Holders of rec. Jan. 14
Gobel(A.) Inc. pref.(quar.)
41.34 Feb. 1 *Holders of rec. Jan. 20
Grace Securities,corn (quar.)
13234c Dec. 31 Dec. 21 to Jan. 1
Preferred (quar.)
134 Dec. 31 Dec. 21 to Jan. 1
Great Lakes Trans. Corp.,corn
Jan. 2 Holders of rec. Dec. 24a
$3
Preferred (quar.)
134 Jan. 2 Holders of rec. Dec. 240
Herring-Hall-Marvin-Safe
6
Jan 3 Holders of rec. Dee. 23
Home Title Insurance(quer.)
3
Dec. 31 Dec. 28 to Jan. 10
Extra
1
Dee. 31 Dec. 28 to Jan. 10
Hooven, Owens & Rentschler, com.(qu.) 134 Dec. 31 Dec. 22 to Dec. 31
Horn-Hardart(N.Y.)(quar.)
*3734c Feb. 1 *Holders of rec. Jan. 10
Extra
4150, Feb. 1 *Holders of roe. Jan. 10
Houseman-Spitzley Corp., cl. A (qu.).
75e Jan. 1 Dec. 25 to Jan. 1
Howe Scale, pref.(quar.)134 Jan. 2 Dec. 17 to Jan. 2
Hub Financial Corp.,class A
*75c. Jan. 16 *Holders of rec. Dec. 31
Hotta Sash & Door,corn.(quar.)
3734e. Jan. 2 Holders of rec. Dec. 210
Preferred (quar.)
134 Jan. 2 Holders of roe. Dec. 21a
Independent Royalties Co.,pref.
134c Jan. 30 Holders of rec. Jan. 256
International Paper,corn.(quar.)
60e. Feb. 15 Holders of rec. Feb. la
Johnson-Stcphens-Shinkle Shoe
25c. Jan. 3 Holders of rec. Dec. 24
Johnston Paint, pref. (quar.)
2
Jan. 2
December 16
Judson Mills, pref. (quar.)
134 Jan. I Dec. 24 to Jan. 1
Kawneer Company, corn. (quar.)
623.4c. Jan. 15 Holders of rec. Dec. 31a
1234e. Jan. 2 Holders of rec. Dec. 20
Kaynee Company,corn.(extra)
Lawton Mills(quar.)
411.50 Dee. 31 *Holders of rec. Dec. 28
Lehigh Portland CementCommon & preferred (in pref.stock)._ 1100 Feb. 1 Holders of rec. Jan. 14
Leasings, Inc.(quar.)
*1
Jan. 31 *Holders of rec. Dec. 29
Lynchburg Foundry, common
5
Jan. 3 Dec. 24 to Jan. 2
3
First preferred
Jan. 3 Dec. 24 to Jan. 2
Second preferred
5
Jan. 3 Dec. 24 to Jan. 2
Manning, Bowman
class A (quar.)_ 37340. Jan. 3 Dee, 21 to Jan. 2
McCaskey Register,Co..
1st pref. (quar.)__
134 Dec. 31 Holders of rec. Dee. 22
Merchants & Miners Transport.(quar.)_ 8234c. Dec. 31 Holders of rec. Dec. 15a
Michigan Copper 4: Brass (quar.)
*250. Jan. 2 *Holders of rec. Dec. 27
Morris Plan Co.(N.Y.)(quar.)
2
Jan. 3 Holders of rec. Dec. 28a
2
Extra
Jan. 3 Holders of rec. Dec. 28a
Mount Royal Hotel, Ltd., Prof. (quar.). 134 Jan. 2 Holders of rec. Dee. 17a
National Fireproofing, prof.-Dividend o mitred
National Shirt Shops, prof. (quar.)
2
Jan. 2 Holders of rec. Dec. 28
National Title Guaranty Co.(quar.)_ _ $1.50 Jan. 3 Holders of rec. Dee. 20a
$1
Extra
Jan. 3 Holders of rec. Dec. 20a
$54
Dec. 20 Holders of rec. Dec. 17
New Orleans Land
Noe-Equl Textile Mills, Inc.,cl. A (qu.) 663(0. Jan. 3 Holders of rec. Dec. 210
62340. Dee. 15 Holders of rec. Doe. 5
Ohio Confection, class A (quar.)
81.75 Feb. 1 Holders of rec. Jan. 12a
Oil Well Supply, Prof.(quar.)
4150. Jan. 15 *Holders of roe. Doe. 31
Pacific Steel Boiler (quar.)
6234c. Jan. 15 Holders of rec. Dec. 30
Packer Corporation (quar.)
Packard Electric (quar.)
700. Jan. 15 Holders of rec. Dec. 30
30e, Jan. 15 Holders of rec. Dec. 30
lh Extra
Name of Company.
3601
Per
When
Cent. Payable
Books Closed.
Days Inclusive.
Miscellaneous (Concluded).
Pacific Portland Cement,Prof.(qu.)._41 1.8234 Jan. 5 *Holders of rec. Dec. 31
Palmolive Peet Co., corn. (quar.)
*50c. Dec. 20 *Holders of rec. Dec. 14
Preferred (quar.)
'$1.75 Jan. 1 *Holders of rec. Dee. 18
Peabody Engineering, common
Dec. 13
*2
Preferred
Dec. 13
*7
Penmans Ltd.,common (quar.)
Feb. 15 Holders of rec. Feb.
$1
Preferred (quar.)
13.4 Feb. 1 Holders of rec. Jan. 21
Pennok Oil-December div. passed.
Perfection Stove(extra)
*6234e Dec. 24 *Holders of rec. Dec. 20
Rogers(Wm. A.) Ltd., pref.(quar.)-134
Holders of rec. Dec. 15a
Ryan Car, Prof.(quar,)
Dec. 31 Holders of rec. Dec. 190
2
Sandusky Cement (quax.)
Jan. 1 Holders of rec. Dee. 25a
$2
Extra
Jan. 1 Holders of rec. Dec. 250
$4
Sayers & Scovill, common (glue.)
134 Jan. 3 Holders of rec. Dec. 20a
Common (extra)
834 Jan. 3 Holders of rec. Dec. 200
Preferred (quar.)
134 Jan. 3 Holders of rec. Dec. 20a
Schaeffer Pen,common (extra)
412
Schwartz (Bernard) Cigar, pref. A (qu.)..
50c. Jan. 3 Holders of rec. Dec. 20a
Scruggs-Vandervoort-Barney Dry
Goods, 1st Prof
Jan. 3 Dec. 22 to Jan. 2
3
Second preferred
334 Jan. 3 Dec. 22 to Jan. 2
Securities Investors, common (quar.).,. 623.4e. Jan. 1 Dec. 22 to Dec. 31
Preferred (quar.)
Jan. 1 Dec. 22 to Dec. 31
2
Securities Management, class A (quar.)_
134 Jan. 15 Holders of rec. Jan. 1
Sheffield Steel Corp., pref. (quar.)
1% Jan. 1 Holders of rec. Dec. 21a
Sobie Silk Shops, Ltd., pref
(r) Jan. 3 Holders of rec. Dec. 27
Sprague-Sells Corp.-Jan. div. passed.
Stanley-Crandall Co. of Wash.(quar.)_ $1.75 Jan. 3 Holders of rec. Dec. 31
St. Lawrence Paper Mills, pref.(quar.)_ _ 2
Jan. 9 Holders of rec. Dec. 266
Stedman Products, Prof. (quar.)
134 Jan. 2 Dec. 29 to Jan. 1
Steel & Tubes Co., pref.(quar.)
1%* Jan. 1 Holders of rec. Dee. 22,
Sterling Products(quar.)
*$1.25 Feb. 1 *Holdess of rec. Jan. 16
Sullivan Machinery (quar.)
Jan. 15 Jan. 1 to Jan. 13
31
Swift International
*600. Feb. 15 *Holders of rec. Jan. 14
Troy Sunshade, common (guar.)
50c, Jan. 3 Holders of rec. Dec. 20
Common (extra)
250. Jan. 3 Holders of rec. Dec. 20
Preferred (quar.)
134 Jan. 3 Holders of rec. Dec. 20
United L. A. W.Corp., pref.1(quar.)_ _
134 Jan. 1 Dec. 16 to Dec. 31
U. S. Radiator, corn. (quar.)
*50c. Jan. 15 *Holders of rec. Jan. 3
Preferred (guar.)
•134 Jan. 15 *Holders of rec. Jan. 3
U.S. Smelt. Ref.& Min., com.delif.(qh.) 8734c Jan. 14 Holders of rec. Jan. 8
Victor Talking Machine, old pref. (qui- $1.75 Jan. 16 Holders of rec. Jan. 3
Western Grocers Ltd.(Canada), pf.(qu.) 1% Jan. 15 Holders of rec. Dec. 31
Williams Tool Corp., pref.(quar.)
2
Jan. 3 Holders of rec. Dec. 20
Yates American Machine, partie. pref. Jan. di vidend omitted.
Zellerbach Corp. (guar.)
50c. Jan. 16 Holders of rec. Dec. 31a
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week, these being given in the preceding table.
Name of Company.
Per
When
Cent. Payable.
Railroads (Steam).
Akron Canton & Youngstown Ry
4
Jan. 1
Alabama Great Southern preferred
$1.75 Feb._13
Preferred (extra)
$1.50 Feb. 13
Albany di Susquehanna
4;§ Jan. 1
Special
2
Jan. 7
Allegheny & Western
3
Jan. 1
Atch. Topeka dt Santa Fe, pref
2H Feb. 1
Atlanta & West Point
4
Dec. 31
Atlantic Coast Line RR..common
334 Jan. 10
Extra
13.4 Jan. 10
Baltimore & Ohio, dommon (quar.)
134 Mar. 1
Preferred (quarterly)
1
Mar. 1
Bangor & Aroostook,corn.(quar.)
87o. Jan. 1
Preferred (quar.)
1% Jan. 1
Beech Creek (quar.)
50c. Jan. 3
Belt RR.& Stk. Yd.Indianan. com.(qu) 2
Jan. 2
Preferred (quar.)
134 Jan. 2
Boston & Albany (quar.)
234 Dec. 31
Boston J. Maine, prior pref. (quar,)_
134 Jan. 2
First preferred, class A (quer.)
134 Jan. 2
First preferred, class B (quar.)
2
Jan. 2
First preferred, class C (quar.)
1% Jan, 2
First preferred, class D (quar.)
23.4 Jan. 2
First preferred, class E(quar.)
134 Jan. 2
Boston & Providence (quar.)
za 34 Jan. 1
Boston. Revere Beach & Lynn (quar.)_ _
134 Jan. 2
Canada Southern
1)4 Feb. 1
Canadian Pacific, common (quar.)
234 Doe. 31
Carolina Clinchtield & Ohio,corn.(qu.)_
34 Jan. 10
Stamped certificates (guar.)
134 Jan. 10
Central RR. of N. J. (extra)
2
Jan. 16
Chesapeake Corporation (quar.)
760. Jan. 1
Chesapeake & Ohio, common (guar.)._
234 Jan. 1
Proferred
334 Jan. 1
Chicago Indianapolis & Louisville, corn
234 Jan. 10
Common (extra)
1
Jan. 10
Preferred
Jan. 10
2
Chicago & North Western,common
2
Dec. 31
Preferred
314 Dec. 31
Chicago R. I. & Pacific, corn. (quar...
134 Dec. 31
Seven per cent preferred
33.4 Dec. 31
Six per cent preferred
Dec. 31
3
Chic. St. P. Minn. & Omaha, pf.(ann.). 5
Dec. 31
Cincinnati Northern
5
Jan. 20
Cleve. Cin. Chic.& St. L., corn.(quar.)_ 2
Jan. 20
Preferred (quar.)
13( Jan. 20
Colorado & Southern,common
Dec. 31
3
First preferred
2
Dec. 31
Second preferred
4
Doe. 31
Consolidated Rita.of Cuba, pref.(quer.) 13.4 Jan. 3
Cuba RR. preferred
3
Feb. 1
Detroit Hillsdale & Southwestern
Jan. 5
2
Detroit River Tunnel
3
Jan. 16
Elmira & Williamsport, pref
$1.61 Jan. 1
Great Northern, preferred
234 Feb. 1
Gulf Mobile & Nor., pref. (quar.)
134 Jan. 8
Prof.(acc't accumulated diva.)
1
Jan. 3
Hocking Valley, common (quar.)
234 Dec. 31
Hudson & Manhattan,Prof.(semi-ann.)_ 234 Feb. 15
Illinois Central leased lines
2
Jan. 2
Joliet & Chicago (quar.)
154 Jan. 3
Kansas City Southern, pref. (quar.) _ _
1
Jan. 18
Lake Erie & Eastern
2
Ian. 3
Lehigh & Hudson River
2
Dec. 31
Extra
4
Dec. 31
Lehigh Valley, common (guar.)
87340 Jan. 3
Preferred (quar.)
$1.25 Jan. 3
Little SchuylkUl Nay. H.R. & Coal_ _
$1
Jan. 14
Louisville & Nashville
334 Feb. 10
Mahoning Coal RR., common (quar.)-- $12.50 Feb. 1
Preferred, (quar.)
$1.25 Jan. 3
Maine Central. common (quar
1
Jan. 2
Michigan Central
20
Jan. 28
Mo.-Kansas-Texas RR., Prof. (special). 1
Dec. 31
Mobile & Birmingham, pref
2
Jan. 3
Morris & Essex
$ 2.1234 Jan. 3
New York Central RR.(quar.)
2
Feb. 1
N.Y. Chicago & St. L.. corn.& pf.
13.4 Jan. 3
New London Northern (quar.)
334 Jan. 2
New York & Harlem, corn. & pref
$2.50 Jan. 3
N.Y. Lackawanna & Western (Misr.)
13( Jan. 3
N.Y.N.H.& Hera.. pref.(qu.)(No.1) 1% Jan. 2
Books Closed.
Days Inclusive.
Holders of rec. Dec. 20a
Holders of rec. Jan. 13
Holders of rec. Jan. 13
Holders of rec. Dec. 15
Holders of rec. Dec. 20a
Holders of rec. Dec. 200
Holders of rec. Dec. 300
Holders of rec. Dec. 19
Holders of rec. Dec. 150
Holders of rec. Dec. 150
Holders of rec. Jan. 14a
Holders of rec. Jan. 140
Holders of rec. Nov.30a
Holders of rec. Nov. 30a
Holders of rec. Dec. 15a
Dec. 22 to Jan. 1
Dec. 22 to Jan. 1
Holders of rec. Nov.304
Holders of rec. Dec. 16a
Holders of rec. Dec. 1130
Holders of rec. Dec. 16a
Holders of rec. Dec. 160
Holders of rec. Dec. 166
Holders of rec. Dec. 16a
Holders of rec. Dee. 20
Holders of rec. Dec. 316
Holders of rec. Dec. 30a
Holders of rec. Dec. la
Holders of rec. Doe. 31a
Holders of rec. Dec. 31a
Holders of rec. Jan. 3a
Holders of rec. Dec. 12a
Holders of rec. Dec. 12a
Holders of rec. Dec. 84
Holders of rec. Dec. 24
Holders of rec. Dec. 24
Holders of rec. Dec. 24a
Holders of rec. Dec. la
Holders of rec. Dec. la
Holders of rec. Dee. 20
Holders of rec. Dec. 20
Holders of rec. Dec. Sa
Holders of rec. Dec. la
Holders of rec. Jan. 13a
Holders of rec. Dec. 30a
Holders of rec. Dec. 30a
Dec. 18 to Jan. 2
Dec. 18 to Jan. 2
Dec. 18 to Jan. 2
Holders of rec. Dee, 10a
Holders of rec. Jan. 16a
Dec. 21 to Jan. 10
Holders of rec. Jan. 9a
Holders of rec. Dec. 20a
Holders of rec. Doe. 27a
Holders of res. Dec. 150
Holders of rec. Dec. 15a
Holders of rec. Dec. 124
Holders of rec. Feb. la
Dec. 13 to Jan. 4
Holders of rec. Dec. 23a
Holders of rec. Dec. 31a
Holders of rec. Dec. 230
Holders of rec. Dec. 20
Holders of rec. Dec. 20
Holders of roe. Dec. 174
Holders of rec. Dec. 170
Dec. 17 to Jan. 15
Holders of rec. Jan. leia
Holders of rec. Jan. 16a
Holders of rec. Dec. 230
Holders of rec. Dec. 15
Holders of rec. Doe. 300
Holders of rec. Dec. 220
Dec. 2 to Jan. 2
Holders of rec. Dec. 9a
Dec. 31 to
Jan. 25
Holders of rec. Nov. 15a
Dec. 16 to Jan. 1
Holders of rec. Dec. 15a
Holders of rec. Dec. 14a
Holders of rec. Dec. 5a
3602
Name of Company.
Railroads (Steam) (Concluded).
Northern Central
Northern Pacific (guar.)
Northern H.R. of N. H.(guar.)
Northern Securities
Norwich & Worcester, pref.(quar.)_ - - Old Colony (guar.)
Pere Marquette. common (quar.)
Prior preferred (guar.)
Five per cent preferred (guar.)
Philadelphia Jr Trenton (guar.)
Mali. Ft. W.& Chic., corn.& pf.(qu.).
Pittsburgh & Lake Erie
MUM.McKeeso.& Youghiougheny_
Providence & Worcester (guar.)
Rensselaer & Saratoga
Reading Co., corn.(guar.)
Second preferred (guar.)
Rome & Clinton
St. Louis-San Francisco Ry.. corn.(go.).
Common (extra)
Preferred (guar.)
Preferred (guar.)
Preferred (gum.)
Preferred (guar.)
St. Louts Southwestern, pref.(qual.)...
Southern Pacific Co. (guar.)
Southern Ry., common (guar.)
Preferred (guar.)
Texas & Pacific, pref. (annual)
Toronto Hamilton & Buffalo
Extra
Troy Union (annual)
Union Pacific. common (quar.)
United N.J. RR.& Canal Cos.(quar.)_
Virginian Ry. (annual)
Wabash, pref. class A (guar.)
Preferred B
Western Hy. of Alabama
TH E CHRONICLE
Per
When
Cent. Payable.
Hooke Cbreea
Days Inelusfre.
Name of Company.
Vol.. I2:.
Per
When
Ceru. Payable.
Hooks Closed
Days incrust**.
Public Utilities (Confined).
Holders of rec. Dec. 31a Denver Tramway Corp., pref.(guar.).
The. Jan. 1 Holders of rec. Dec. 15er
Holders of rec. Dec. 30a Detroit Edison (guar.)
2
Jan. 16 Holders of rem Dec. 20a
Holders of rec. Dec. I20 Diamond State Telep.,634% pf.(qu.)
I% Jan, 14 Dec. 20 to Jan. 16
Dec. 24 to Jan. 10
Dixie Gas & Utilities, pref. (quar.)
$1.75 Jan. 1 Holders of rec. Dec.d2la
Holders of rec. Dec. 171 Dominion Power & Transns.. pf. (qu.)
134 Jan. 18 Holders of rec. Dec. 21
Holders of rec. Dec. 10a
Duke Power Co., common
I
Jan. 3 Holders et rec. Dec. 15
Holders of rec. Dec. 10a
Duluth-Superior Trac., pref.(guar.) -1
Jan. 2 Holders of rec. Dee. 12a
Holders of rec. Jan. 10a
East Bay Water. class A & B (quar.) _ *$1.50 Jan. 16 *Holders
Holders of rec. Jan. 10a Eastern N. Y. Utilities, pref. (guar.).- 1% Jan. 1 Holders of rec. Dec. 31
of rec. Dee. 20!
Holders of rec. Dec. 200 Eastern States Power, pref.(guar.)
$1.75 Feb. 1 Holders of rec. Jan. 150
Holders of rec. Dec. 100 Eastern Texas Elec. Co.. pref.(quar.)
134 Jan. 3 Holders of rec. Dec. 60
Holders of rec. Dec. 30a Edison Illuminating of Brockton (extra) 750. Dec. 31 Holders
Holders of rec. Dee 15a Electric Bond & Share Seen!. (qual.)... 25e. Jan. 16 Holders of me. Dec. 23a
of rec. Dec. 19
Holders of rec. Dec. 14
Electric Bond & Share Co., pref.(guar.)
1% Feb. I Holders of rec. Jan. 14
Dec. 16 to Jan. 1
Electric Light & Power Co.of
Holders of rec. Jan. 12a
Abington & Rockland (guar.'
,
50c. Jan. 3 Holders of rec. Dec. 156
Holders of rec. Dec. 22a
Extra
50o. Jan. 3 Holders of rec. Dec. 15a
Dec. 22 to Jan. 2
Elec. Power & Light, pref.(guar.)
$1.75 Jan. 3 Holders of rec. Dec. 12a
Holders of rec. Dec. 90
Prof. allot. ctfs. full paid (quar.)
$1.75 Jan. 3 Holders of rec. Dec. 12a
Holders of rec. Dec. 9a
Prof. allot. 40% paid (quar.)
Mc. Jan. 3 Holders of roe. Dec. 12a
Holders of rec. Jan. 14a Electric Public Sent., pref. (guar.)
1% Jan. 1 Holders of rec. Dec. 150
Holders of rec. Apr. 7a Electric Public Util., pref.(guar.)
1% Jan. 1 Holders
Holders of rec. July 14a Elmira Water, Light & RR., 1st pf.(qu.) 134 Dec. 31 Holders of rec. Dec. 16a
of rec. Dec. 16
Holders of rec. Oct. 15.2
Second preferred (guar.)
1% Dec. 31 Holders of rec. Dec. 16
Holders of rec. Dec. I40 El Paso Elec. Co., pref. A (guar.)
1% Jan. 16 Holders fo rec. Jan. 30
Holders of rec. Nov. 25a Empire Gas & Fuel,7% pref.(mthly.). 58 1-3c Jan. 3 Holders
of rec. Dec. 15a
Holders of rec. Jan. 3a
8% preferred (monthly)
662-3e Jan. 3 Holders of rec. Dec. 15a
Holders of rec. Dec. 27a Empire Power Corp., 56 pref. (qua:.).. $1.60 Jan.
1 Holders of rec. Dec. 16
Engineers Public Service $7 pref.(qu.).. $1.75 Jan. 3 Holders of rec. Doe. 56
Holders of rec. Dec. 270 Fall River Elec. Light(quar.)
60c. Jan. 3 Holders of rec. Dec. 20a
Holders of rec. Dec. 27a Federal Light dr Tram, common (qu.).. 20c. Jan.
3 Holders of rem Doe. 13a
Holders of rec. Dec. 300
Common (payable In common stock). /15c. Jan. 3 Holders of rec. Dec. 13a
Holders of roe. Dec. la
Federal Water Service,$7 Prof.(qua:.)._ 51.75 Jan. 1 Holders of rec. Dec. 20a
Dec. 21 to Jan. 2
5614 preferred (guar.)
$
Jan. 1 Holders of rec. Dec. 20a
Holders of rec. Dec. 19a Florida Power & Light, pref. (guar.)... 1.6234
1% Jan. 3 Holders of rec. Dec. 14
Holders of rec. Jan. 25a Florida Public Service, pref.(guar.)-- Holders of rec. Doe. 15
Holders of rec. Dec. 310 Foahay (W.B.) Co., corn.(monthly)... 661
2-3
1‘c j
Jan
aa.. 10
1 Holders of rec. Dec. 270
Holders of ree. Dee. 19
7% Preferred (monthly)
58 1-3c Jan. 10 Holders of rec. Dec. 27
8% preferred (monthly)
662-3c Jan. 10 Holders of rec. Dec.
Public Utilities.
Frankford & Southwark Pass. Hy.(qu.). $4.50 Jan. 1 Dec. 2 to Dec. 27
31
Alabama Power,$7 pref.(guar.)
$1.75 Jan. 2 Holders of rec. Dec. 16
Gas & Elec. Securities, corn.(monthly). 50c. Jan. 3 Holders of rec. Dec. 150
$6 preferred (guar.)
$1.50 Jan. 2 Holders of rec. Dec. 16
Common (payable in common stock)... )15c. Jan. 3 Holders of rec. Dec. 150
Amer.& Foreign Power. pref.(guar.).
$1.75 Ian. 3 Holders of rec. Dec. 15a
Preferred (monthly)
58 1-3c Jan. 3 Holders of rec. Dec. 156
Prof. allot. Ws.,25% paid (quar.)
4334c Jan. 3 Holders of rec. Dec. 150 General Gas & El. Corp.. corn, A (au.)._ 03734c
Jan. 1 Holders of roe. Dee. 12a
Pref. allot. Mts.. 35% paid (guar.)... 61140 Jan. 3 Holders of rec. Dec. 15
Common class B (No. 1)
851.50 Jan. 1 Holders of rec. Dec. 120
Amer. Gas & Elec.. common (quar.).__. 250. Jan. 3 Holders of rec. Dec. 12
$8 preferred class A (guar.)
$2
Jan. 1 Holders of rec. Dee. 120
Common (one-fiftieth share coin. stk.) (1) Jan. 11 Holders of rec. Dec. 12
17 preferred class A (guar.)
Holders of rem Dec. 120
Preferred (guar.)
134 Feb. 1 Holders of rec. Jan. 10
$7 preferred clam B (qual.).......
Holders of ree. Dec. 12a
American Gas Co.(N. J.) (guar-)
2
Jan. 13 Holders of rec. Dec. 310 General Public Service. cony. pref., see n1
o
31
(55
1 an": 1
Amer.Power & Light, pref.(guar.)
134 Jan, 3 Holders of rec. Dec. 12
Georgia Power. $6 Prof.(guar.)
$1.50 Jan. 1 Holders of rec. Dee. 15a
Amer. Public Service. prof.(guar.)
134 Jan. 3 Holders of rec. Dee. 150 Germantown Pass. Ry.(guar.)
$1.31 Jan. 3 Doe. 15 to Jan. 2
American Public UtilitiesGold & Stock Telegraph (guar.)
1)4 Jan. 3 Holders of rec. Dec. 31a
Prior pref. and panic. Pref.(quar.)__. $1.75 Jan. 3 Holders of rec. Dec. 15a Gt. Western Pow.of
Calif..7% pt.(qu.) 134 Jan. 3 Holders of rec. Dec. 5
Amer.Superpower, corn. A dr B (guar.). 30c. Dec. 31 Holders of rec. Nov.30
Six per cent preferred,series A (guar.). 134 Jan. 3 Holders of rec. Dee. 5
Com. A & B (pay. Intl. A corn. Mock) (a) Dec. 81 Holders of rec. Nov. 30
Hackensack Water, pref. A (quar.)
Dec. 31 Holders of rec. Dec. 16a
First preferred (guar.)
$1.50 Jan. 1 Holders of rec. Dec. 150 Harrisburg Light & Pow., pref. (guar.). 43340. Doe.
31 Holders of rec. Dec. 19
Amer. Telep. & Telex.(guar.)
2% Jan. 16 Holders of rec. Dec. 20a Hartford City Gas-Light, corn. (guar.). 750.
50c. Dec. 31 Dec. 15 to Jan. 2
Amer Wat. Wks.& Elec.$6 let pl.(an.) $1.50 Jan. 2 Holders of rec. Dec. 12a
Common (extra)
Dee.
Dee. 15 to Jan. 2
50o.
31
Arkansas Natural Gas (guar.)
120. Jan, 2 Holders of rec. Dec. 14a
Preferred (guar.)
Dec. 15 to Jan. 2
600. Dec.
Arkansas Power dr Light. pref.(quar.)
$1.75 Jan. 3 Holders of rec. Dec. 15
Common (extra)
Dec. 31 Dec. 15 to Jan. 2
Associated Gas & El., Mass A (qual.)..
1500. Feb. 1 Holders of rec. zJan. 10
Preferred (quar.)
Dec.
SOc.50o.
31
Dec.
15 to Jan. 2
Class A (extra)
12543. Feb. 1 Holders of rec. zJan. 10
Haverhill Gas Light (guar.)
57o. Jan. 3 Holders of rec. Dec. 19a
$7 preferred (guar.;
$1.75 Jan. 1 Holders of rec. Nov.30
Houston Gas & Fuel, pref. (guar.)
134 Dec. 31 Holders of rec. Dec. 17a
Original preferred (guar.)
187 Sic Jan. 1 Holders of rec. Nov.30
Illinois Bell Telephone (quar.)
Dec. 81 Holders of rec. Dec. 300
2
Associated Public Utilities. pref.(guar.). 134 Jan, 2 Holders of rec. Dec. 16z Illinois Power
& Light. 7% pref.(qui __
134 Jan. 3 Holders of rec. Dec. 10
Bangor Hydro-Elec. Co.. 7% pref. (qu.) 134 Jan. 2 Holders of rec. Dec. 10
6% preferred (guar.)
Jan.
1)4
3 Holders of rec. Dee. 10
8% preferred (guar.)
114 Jan. 2 Holders of rec. Dec. 10
Illinois Power co.,6% ord.(quar.).... 1)4 Jan. 2 Holders of rec. Dee. 15
Barcelona'tr., Lt.& Pow., pref.(guar.). 134 Dec. 31 Holders of rec. Dec. 21
7% preferred (guar.)
13‘ Jan. 2 Holders of rec. Dee. 15
Bell Telephone of Canada (guar.)
2
Jan. 14 Holders of rec. Dec. 23
Illinois Traction, pref. (guar.)
I% Jan. 3 Holders of roe. Dee. 200
Bell Telep. of Pa..634% prof.(quar.)
I% Jan. 14 Dec. 21 to Jan. 15
Indianapolis Water. pref. (guar.)
$1.50 Dee. 31 Holders of roe. Dec. 104
Binghamton L.. H.dr Pow..$6 pf.(qu.) $1.50 Jan. 1 Holders of rec. Dec. 15
International Power, Ltd., 1st pf. (qu.). I% Jan. 3 Holders of rec. Dec. 15
Birmingham Elec. Co.. $7 pref. (guar.) $1.75 Jan. 3 Holders of rec. Dec. 12
International Telep. & Telex.(guar.)._
1% Jan. 15 Holders of rem Dec. 270
$6 preferred (guar.)
$1.50 Jan. 3 Holders of rec. Dec. 12
International Utilities, cl. A (quar.).... 8730. Jan. 15 Holders of rec. Dec. 29a
Boston Elevated Hy.. corn. (quar.)___
134 Jan. 2 Holders of roe. Dec. Wo
$7 preferred (guar.)
Feb. 1 Holders of rec. Jan. 180
$1.75
First preferred
4
Jan. 2 Holders of rec. Dec. 100 Interstate Power Co.. pref. (guar.)
3 Holders of rec. Dee. 5
8415 Jan. 8
Preferred
3% Jan, 2 Holders of ree. Dec. 100 Iowa Power Jr Light. 7% pref. (guar.)._
. 8 Holders of rec. Dec. 15a
Brazilian Tr. Lt. & Pow., pref.(guar.)._
134 Jan. 2 Holders of rec. Dee. 15a
6% preferred (guar.)
134 Jan. 3 Holders of roe. Dec. 150
Brooklyn Borough Gas, corn.(quar.)___ $1.50 Jan. 10 Holders of rec. Dec. 31a
Jamaica
Pub. Serv., Ltd., pref. (guar.). 134 Jan. 3 Holders of rec. Dec. 20
Preferred (guar.)
81340. Jan. 3 Holders of rec. Dec. 190 Jersey Central Pow.& Lt.,6% 1/1.
(411.) 134 Jan. 1 Holders of rec. Dec. 170
Brooklyn-Manhattan Tran.,coin.(an.). $1
Jan. 16 Holders of rec. Dec. 310
7% preferred (guar.)
134 Jan. 1 Holders of rec. Dec. 170
Preferred, series A (guar.)
$1.50 Jan. 16 Holders of rec. Dee. 31* Kansas CIty Pow. & Lt., 1st pt. A (qu. 81.75
Jan, I Holders of rec. Dee. 14a
Preferred. series A (guar.)
31.50 Apri. 16 Holders of rec. Apr. 16 Kansas City Public Service. pref.(guar.) $1.75 Jan. 1 Holders of rec. Dee. 20
Brooklyn U Ion Gas (guar.)
$1.25 Jan. 3 Holders of rec. Dec. 7a Kansas Electric Power, pref.(guar.)._ _
Jan. 2 Holders of rec. Dec. 15
134
Buffalo Niagara & East.Pow.,com.(qu.)
300. Jan. 3 Holders of rec. Doe. 15a Kansas Gas & Elec., Prof.(guar.)
134 Jan. 3 Holders of rec. Dec. 15
Preferred (guar.)
400. Jan. 3 Holders of rec. Dec. 15a Kentucky Securities, common (guar.)._
134 Jan. 3 Holders of rec. Doe. 22a
Calgary Power Co.(guar.).(No. 1).
134 Dec. 31 Holders of rec. Dec. 23
Preferred (guar.)
134 Jan. 16 Holders of rect. Dec. 220
California Elec. Generating, pref.(qu.). 134 Jan. 3 Holders of rec. Dec. 5
Kings County Lig.. pref.(quar.)
134 Jan. 2 Holders of rem Dec. 19
Capital Trac.(Washington, D.C.)(g11.) 1% Jan. 1 Holders of rec. Dec. 12
Laurentide Power (guar.)
134 Jan. 16 Holders of rec. Dec. 31
Carolina-Georgia Service Co..$7 pf.(qu.) $1.75 Jan. 1 Holders of rec. Dec. 15
Long Island Lighting, common
n .. 3
1m
1 Holders of rec. Dec. 17
. a
m
750
Carolina Power & Light, $7 pref.(guar.) $1.75 Jan. 3 Holders of rec. Dec. 17
Preferred, series A (quar.)
Holders of roe. Dec. 16
$6 preferred (guar.)
$1.50 Jan. 3 Holders of rec. Dee. 17
Preferred,series B (guar.)
134 Jan. 1 Holders of rec. Dec. 16
Central Ills. Light,6% pref.(quar.).... 1 )4 Jan. 3 Holders of rec. Dec. 15
Louleville G.& E.(KY.)7% prof.(gm). 134 Jan. 15 Holders of rec. Dec. 31
Seven per cent. pref.(guar.)
134 Jan. 3 Holders of roe. Dec. 15
6% Preferred (guar.)
134 Jan. 15 Holders of rec. Dec. 31
Central Illinois Public Fiery.. pref.(qua - $1.50 Jan. 15 Holders of rec. Dec. 3Ia Mackay
Companies, common (guar.)... 134 Jan. 3 Holders of roe. Dec. 30
Central & South West UtII., corn.(mt.). 750. Jan. 16 Holders of rec. Dec. 310
Preferred (guar.)
Jan. 8 Holden of rem Dee. 80
1
Central States Elec. Corp., corn.(att.).- 250. Dec. 31 Holders of rec. Dec. 10
Manhattan Ry., 7% guar. (guar.)
1)4 Jan. 3 Holders of rec. Dee. 20
Preferred (guar.)
134 Dee. 31 Holders of rec. Dee. 10
Manila Electric Corp., (guar.)
Feb. 1 Holders of rec. Dec. 300
6234e
Chic. Nor. Shore & MIL, pr. lien (au.)
1)4 Jan. 1 Holders of rec. Dec. 150 Manitoba Power (quar.)
32 Jan. 16 Holders of rec. Dec. 15
Preferred (guar.)
134 Jan. 1 Holders of rec. Dec. 15a Manufacturers Light & Heat,corn.(qu.) 81
Jan. 14 Madera; of rec. Dec. 310
Chicago Rapid 'Fran., prior pref. A (qu.) 65o. Jan. 1 Holders of rec. Dec. 20a Massachusett Gas Cos., cone.(guar.)._
$1.25 Feb. 1 Holders of rec.
14
Prior pref. A (guar.)
650. Feb. 1 Holders of rec. Jan. 17a Massachusetts Ltg. Cos.,common (qu.). 75c. Dec. 31 Holders of rec. Jan.
Dee. 20
Prior prof. A (guar.)
65e. Mar. 1 Holders of rec. Feb. 2I0
Six per cent preferred (guar.)
Holders
Jan.
1%
16
of
rec.
Dee.
27
Prior pref. series B (guar.)
60c. Jan. 1 Holders of rec. Dec. 20a
Eight per cent preferred (guar.)
Jan. 16 Holders of rec. Dec. 27
2
Prior pref. series B (guar.)
60e. Feb. 1 Holders of rec. Jan. 176 Maas. Utilities Invest. Tr., pref. (guar.) 62(4e Jan. 16 Holders of rec. Dec. 270
Prior Prof. aeries B (quar.)
60e. Max. 1 Holders of rec. Feb. 21a Memphis Pow.& Lt.,$7 pref.(guar.)
81.75 Jan. 3 Holders of rec. Dec. 17
Cincinnati Car. corn. (guar.)
350. Jan. 1 Holders of rec. Dee. 200
$6 preferred (guar.)
$1.50 Jan. 3 Holders of roe. Dec. 17
Cincinnati Gas & Electric (guar.)
134 Jan. 3 Dec. 15 to Doe. 21
Metropolitan Edison. $7 pref. (guar.)._ 81.75 Jan. 1 Holders of rec. Dec. 15
Cincinnati Street Ry.(guar.)
62)40. Jan. 1 Holders of rec. Dee. 23
$6 preferred (guar.)
31.50 Jan. 1 Holders of rem Dec. 16
Ctn. & Suburban Bell Telep.((Mar.)--- $1.12 Jan. 3 Holders of rec. Dee. 20
Mexican Utilities, preferred
33.50 Jan. 16 Holders of rec. Dec. 310
Citizens Pass. Ry., Phila.(quar.)
$3.50 Jan. 1 Dec. 21 to Dee. 31
Michigan Bell Telep., common (qua:.).. 2
Dec. 31 Holders of rec. Doe. 8a
City Ry., Dayton, O., common(MO
134 Dec. 31 Dec. 21 to Jan. 1
Michigan Electric Power, Prof.(qua:.).. 1% Jan.
Holders of rec. Dec. 20
Preferred (guar.)
134 Dec. 31 Dec. 21 to Jan. 1
Middle West Utilities, pref. (guar.)._
134 Jan. 1 Holders of rec. Dec. 31
Cloy. Elec. Illuminating, cord. (qu.).__
234 Jan. 16 Holders of rec. Dec. 31a
Jan. 1 Holders of rec. Dec. 31
$13 preferred (guar.)
51.50
Cleveland Ry. (guar.)
134 Jan. 1 Holders of rec. Dec. 100 Midland Utilities,7% pr.lien stock (qu.) 1131 Jan.an
Holders of rem Dee, 22a
Columbus Elec. & Pow., corn,(guar.)...
50c. Jan. 3 Holders of rec. Dec. 90
Six per cent prior lien stock (guar.) _ _
Holders of rec. Dec. 22a
Common (stk. My. one-fortieth share) (m) Jan. 3 Holders of rec. Dec. 9a
Seven per cent class A (guar.)
n 3 Holders of rec. Dec. 22a
134 ann
Preferred, series B (guar.)
Jan.
3
Holders
Dec.
of
rec.
90
134
Six per cent pref., class A (quar.).--Holders of reo. Dec. 22a
134 J.
Preferred, series C (guar.)
134 Jan. 3 Holders of rec. Dec. 90 Milwaukee Elec. Ry.& Light, pf.(au.). 134
Holders of rec. Jan. 200
Second preferred (guar.)
134 Jan. 3 Holders of rec. Doe. 9
Minnesota Power & Light,7% pref.(au.) I% Jan.
Holders of rec. Dec. 15
Commonwealth Power Corp.,corn.(qu.) 62340. Feb. 1 Holders of rec. Jan. ha
$6 preferred (guar.)
Holders of rec. Dec. 15
$
634% preferred (guar.)
134 Feb. 1 Holders of rec. Jan. 11
Mississippi River Power, pref. (quar.) :
Jan.
11
Holders of rec. Doe.
Connecticut Elec. Serv., pref. (guar.)._ $1
Jan. 1 Holders of rec. Dec. 150 Missouri G. Sz El. Ser., pr. lien etk.(qu.) $1.75 Jan. 1 Holders of rec. Dec. 15a
31
Cons. Gas. El. L.& P., Bait., corn.(au.) 760. Jan. 3 Holders of rec. Dec. 150 Missouri Power &
Light, prof. (qua:.).. 1% Jan.
Holders of rec. Dec. 20a
Preferred series A (guar.)
Jan. 3 Holders of rec. Dec. 150 Mohawk & Hudson Power.2d pref.(qu.) 31.75 Jan.
2
Holders of rec. Dec. 21
Preferred series B (guar.)
Jan.
3
134
Holders of rec. Dee. 150 Mohawk Valley Co., (quar.)
50c. Jan.
Holders of rec. Dec. 200
Preferred series C (guar.)
134 Jan. 3 Holders of rec. Doe. 15a Monongahela %V. Penn. P. EL, pf.(qu.) 431)4340.
.
Holders of rec. Dec. 15
Preferred series D (guar.)
134 Jan. 3 Holders of rec. Dec. 15a Montana Power. corn. (guar.)
Jan.
Holders of rec. Dec. 126
1% Jan. 3 Holders of rec. Dee. 15a Montreal L.. H. & P. Cons., (qua:.)... 50c. Jan. 3 Holders
534% Preferred (guar.)(No. 1)
of rec. Dec. 31
Consolidated Gas of N.Y.,pref.(qual.). $1.25 Feb. 1 Holders of rec. Dee. 30
Montreal Telegraph. (quar.)
80c. Jan. 1
Jan. 1 to Jan. 15
Consumers Power,6% pref. (quar..... 134 Jan. 3 Holders of rec. Dec. 15
Montreal Tramways, corn. (guar.)
2% Jan. 1 Holders of rec. Jan. fia
8.6% preferred (guar.)
1.65 Jan, 3 Holders of rec. Dec. 15
Mountain States Power, pref.(guar.).-134 Jan. 2 Holders of rec. Dec. 31
Seven per cent preferred (guar.)
134 Jan. 3 Holders of rec. Dec. 15
Municipal Service Corp., pref.(quar.)
.
50
1ou
. an.
Holders of rec. Dec. 15
Six per cent preferred (monthly)
50c. Jan. 3 Holders of rem Dec. 15
Nassau & Suffolk Lighting, pref. (qu.)
Holders of roe. Deo. 16
8.6% preferred (monthly)
55e. Jan. 3 Holders of rec. Dec. 15
National Electric Power. pref. (qua:.)
1% Jan. 2 Holders of rec. Deo. 15
Continental Gas & El. Corp., corn.(qu.) $1.10 Jan. 3 Holders of rec. Dee. 120 Nat. Power & Light,
prof.(qual.)
$1.76 Jan. 2 Holders of rec. Dee. 15
Prior preference (guar.)
134 Jan. 3 Holders of rec. Dec. 120 National Public ServiceParticipating preferred (guar.)
134 Jan. 3 Holders of rec. Dec. 120
Series A pref. & panic. pref. (quar.)__ 31.75 Jan, 1 Holders of rec. Dec. 17
Participating pref.(extra)
34 Jan. 3 Holders of rec. Dec. 12a Nevada-Calif. Elec., pref. (guar.)
1% Feb. 1 Holders of rec. Dec. 30
6% preferred (guar.)
134 Jan. 3 Holders of rec. Dec. 120 New Bedford Gas & Ed. Lt. (guar.).- .111
Jan. 15 Holders
Cuban Telephone common (guar.)
2
Dec. 31 Holders of rec. Dec. 15a New England Gas& Elec., $534 pf.(au.) 51.37% Jan. 1 Holders of rec. Dom 22
of rec. Doe. 20
Preferred (guar.)
134 Dec. 31 Holders of rec. Dec. 150
$6 preferred (guar.)
31.50 Jan, 1 Holders of rec. Dec. 20
Jan. 14
$2
1% Feb. I
1(4 Jan. 3
4% Jan. 10
Jan. 2
2
1% Jan. 2
1% Jan. 3
134 Feb. 1
tit Feb. 1
234 Jan. 3
1% Jan. 3
$2.50 Feb. 1
$1.50 Jan. 3
2)4 Dec. 31
4
Jan. 1
Feb. 9
$1
50c. Jan. 12
2% Jan. 1
1% Jan. 3
25c. Jan
3
1)4 Feb. 1
1% May 1
134 Aug. 1
114 Nov. 1
114 Dec. 31
1% Jan. 3
2
Feb. 1
1% Jan. 16
*5
3
Dec. 31
Dec. 31
1
6
Jan. 16
234 Jan. 3
234 Jan. 10
7
Dec. 31
134 Feb. 25
5
Feb. 6
Dec. 31
4
Name of Company.
3603
THE CHRONICLE
DEC. 31 1927.]
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Company.
Per
When
Cent. Payable.
Books Closed
Days Inclusive.
Public Utilities (Concluded).
Public Utilities (Continued).
Tennessee Elec. Power,6% let pref.(011.) 134 Jan. 3 Holders of roe Dee 15
New England Power Assn., corn. Mora 50e. Jan. 16 Holders of rm. Dec. 31
144 Jan. 3 Holders of roe. Dee. 15
7% first preferred (quar.)
$1.50 Jan. 2 Holders of rec. Dec. 15
Preferred (guar.)
1.80 Jan. 3 Holders of rec Dec 15
7.2% first preferred (guar.)
134 Jan. 2 Holders of rec. Dec. 17
New England Pow. Co., pref. (quar.)
500. Jan. 3 Holders of rec. Dec. 16
6% first preferred (monthly)
New England Pub.Serv.. corn.(quar.) _ 45e. Dec. 31 Holders of rec. Dec. 15a
Jan. 1 Holders of rec. Dec. 15
60e.
preferred
first
(monthly)
7.2%
roe.
Dec.
31a
Holders
of
Jan.
15
$1.75
$7 preferred (quar.)
131 Jan. 1 Holders of rec. Dec. 15
31.63 Jan. 15 Holders of rec. Dec. 31a Texas-Louisiana Power, prof. (qu.)-Adjustment preferred (guar.)
Jan. 1 Dec. 21 to Jan. 2
13th & 15th Streets Pass. Ry Phila.__ $6
Dee. 31 Holders of rec. Dec. 10
2
New England Tel. & Tel. (guar.)
Twin City Rapid 'Fran.. Minneapolis56231e Dec. 31 *Holders of rec. Dec. 16
New Haven Gas Light (quar.)
$I
Jan. 2 Holders of rec. Dec. 120
Common (guar.)
New Jersey Pow.& Lt., $6 pref.(guar.). $1.50 Jan. 1 Holders of rec. Dec. 15
1% Jan. 2 Holders of rec. Dec. 120
Preferred (guar.)
134 Jan. 2 Holders of rec. Dec. 19a
New Orleans Public Serv., pref. (qu.)
3Jan.
Jan. 2
1 Holders of rec. Dee. 15a
w34.75
Union Pass. Ry.(Phila.)
111 Jan. 1 Holders of rec. Dec. 16
N.Y.Central Elec. Corp., pref.(guar.) _
Holders of rec. Dec. 9a
Union Traction, Philadelphia
20c. Dec. 31 Holders of rec. Dec. 16
N. Y. Power & Light Corp. common
Holders of rec. Dec. 15a
Dec.
31
$I
Springfield,
Mass.(qu.)
United
Elec.
Lt.,
Dec.
12
Holders
of
rec.
Jan
3
81.50
$6 preferred (guar.) (No. 1)
United Gas& El. Co.(N.J.), common.. 31.25 Dec. 31 Holders of rm. Dec. 31a
131 Jan. 3 Holders of rec. Dec. 16
7% preferred (guar.)
2% Jan. 15 Holders of rec. Dec. 31a
Preferred
Jan. 1 Holders of rec. Dec. 31
8% pref. (guar.) (called Jan. 1 1925).. 2
131 Jan. 1 Holders of rm. Dee. 16
NewYork Steam Co., $7 pref.(guar.)_ _ $1.75 Jan. 2 Holders of rm. Dec. 15a United Gas& Elec. Corp., pref.(gu.)..
Jan. 14 Holders of rec. Dec. 31
$1
$1.50 Jan. 2 Holders of rm. Dec. 154 United Gas Improvement (guar.)
$6 preferred (quar.)
60e. Feb. I Holders of rec. Jan. 16
Pow,
old
corn.
A&B
United
Lt.
&
(qu.).
Dec.
21)
Holders
of
rec.
1%
Jan.
16
New York Telephone, pref.(quar.)
120. Feb. 1 Holders of rec. Jan. 16
New common A & B (guar.)
433,1c. Jan. 16 Holders of rec. Dec. 31a
Niagara Falls Power, pref. (quar.)..
$1.62 Jan. 3 Holders of rec. Dec. 15
Preferred A (guar.)
Niagara Lockport & Ont.Pow., pt.(qu.) 1% Jan. 3 Holders of rec. Dec. 15
Jan. 3 Holders of rec. Dec. 15
$1
Preferred B (guar.)
Nor. Amer. Co., corn.(qu.)(in com.stk.) 1234 Jan. 3 Holders of rec. Dec. 50
Holders of rec. Dec. 54 United Public Serv. Co..$7 pt.(quar.)_ _ $1.75 Jan. 1 Holders of rec. Dec. 15
750. Jan.
Preferred (quar.)
131 Jan. 3 Holders of rec. Dec. 21
Holders of rec. Dec. 20o United Utilities, pref. (quar.)
North Amer. Light & Pow.. pref. (an.). 134 Jan.
Holders of rec. Dec. 15a Utah Gas & Coke. Prof.& panic. pf.(qu.) $1.75 Jan. 3 Holders of rec. Dec. 15
Northeastern Power.common (guar)--- 150. Jan.
Holders of rec. Dec. 150 Utah Power & Light, 27 pref.(quar.)_ $1.75 Jan. 3 Holders of rec. Dec. 5
$1.50 Jan.
Class A stock (guar.)
$1.50 Jan. 3 Holders of rec. Dee. 5
$6 preferred (guar.)
Holders of rec. Dec. 15
Jan.
Northern Mexico Pow.& Dev.,corn.(qu) 1
Utilities Power dr Light, class A (guar.). o50c. Jan. 3 Holders of rm. Dee. 5
Holders of rec. Dec. 15
131 Jan.
Preferred (quar.)
e250. Jan. 3 Holders of rec. Dec. 5
Class B (quar.)
Holders of rec. Dec. 15
Northern Ohio Pow.& Lt.6% pt.(qu.). 1)4 Jan.
elle. Jan. 3 Holders of rec. Dec. 5
Class B (extra)
Holders of rec. Dec. 15
131 Jan.
Seven per cent preferred (guar.)
01131 Jan. 3 Holders of rec. Dec. 5
Preferred (quar.)
3
Jan. 2 Holders of rec. Dec. 31
Northern Ontario Light & Power
131 Jan. 1 Holders of rec. Dm. 176
Virginia
Public
Service,
pref.
(quar.)
of
rec.
Dec.
15
Holders
$1.75
Jan.
Northern Penna. Power,$7 pref. (qu.)- 2
Jan. 14 Holders of rec. Dec. 23a
Washington Wat. Pow., Spokane (qu.)_
Holders of rec. Dec. 15
$1.50 Jan.
$6 preferred (quar.)
2
Dec. 31 Holders of rec. Dec. 21a
Western Power Corp.. corn.(No. 1)
Jan.
Holders of rec. Dec. 15
3
6% preferred
Jan.
16 Holders of rm. Dec. 31a
1%
Preferred (guar.)
Holders of rec. Dee. 31
Feb.
North.States Pow.(Del.) corn. A (qu.). 2
1% Jan. 3 Holders of rec. Dec. 270
West Kootenay Power, prof.(quar.)-131 Jan. 2 Holders of roe. Dee. 31
7% preferred (quar.)
1%
Feb.
1 Holders of rec. Jan. 5a
West
Penn
Power
Mara_
Co..
7%
pref.
Holders
of
rec.
Dec.
31
1%
Jan.
2
6% preferred (quar.)
114 Feb. 1 Holders of rec. Jan. 5a
Six per cent preferred (quar.)
Holders of rec. Dec. 16
134 Jan.
Northport Water Works, pref.(quar.)
Jan. 2 Holders of rec. Dec. 15a
14S5
West Philadelphia Pass. Ry
Northwestern Bell Telep. pref. (guar.)._ 1% Jan. 1 _Holders of rec. Dec. 20a
Western Massachusetts Cos.(guar.)_ _ _ 50c. Dec. 31 Holders of rec. Dec. 21
Dec. 17 to Jan. 2
$1.50 Jan.
Northwestern Telegraph
Jan. 16 Holders of rec. Dec. 230
2
Western Union Telegraph (guar.)
Holders of rec. Dec. 15
131 Jan.
North West Utilitlea, prior lien Pf. (911.)
1
Jaa. 16 Holders of rec. Nov. 306
Winnipeg Electric Co. (quar.)
of
roe.
Dec.
20
Holders
131
Jan.
Ohio Bell Telep.. pref. (guar.)
144 Jan. I Holders of rec. Dee. 6a
Preferred (altar.)
Holders of rec. Feb. 15
1% Mar.
Ohio Edison Co.,6% pref.(guar.)
Holders of rm. Feb. 15
1.65 Mar.
6.6% preferred (quar.)
Banks.
Holders of rec. Feb. 15
IM Mar.
Seven per cent preferred (guar.)
Holders of rm. Dm. 15
50e. Jan.
Six per cent preferred (monthly)
Jan. 3 Holders of rec. Dec. 21a
3
America.
Bank
of
(guar.)
Holders
of
rec.
Jan.
16
Feb.
50c.
cent
preferred
per
Six
(monthly)
to Jan. 2
4
Dec. 31 Dec. 25
Bowery East River Nat.(guar)
Holders of rec. Feb. 15
500. Mar.
Six per cent preferred (monthly)
Jan. 3 Holders of rec. Dec. 111a
3
Bryant Park
55c. Jan. 2 Holders of rec. Dec. 15
6.6% preferred (monthly)
Holders
of
rec.
Dec. lea
Jan.
3
3
Extra
Holders
of
rm.
Jan. 16 •
55c. Feb. 1
6.6% preferred (monthly)
1% Jan. 3 Holders of res. Des Ms
Capitol National Bk. & Tr (quar.)__ _ _
55e Mar. 1 Holders of rec. Feb. 15
6.0% preferred (monthly)
Dee. 13s
liuluers
of
rec.
Jan.
3
3)4
Chase
National
(quar.)
Holders
of
rm.
131
Jan.
2
Dec.
20a
(guar.)
_
Power
Co.,
pref.
Electric
Ohio
$1 Jan. 3 Holders of rec. Dee. 13.
Ohio Public Serv. Co.. 1st pt. A(mthly.) 581-3e Jan. 3 Holders of rec. Dec. 15a Chase Securities (quar.)
4
Jan. 2 Dec. 16 to Jan. 2
Chatham & Phenix National (quar.)__
154 Jan. 1 Holders of rec. Dee. 15
Ohio River Edison, 7% pref. (quar.)-2
Jan. 3 Holders of roe. Dec. 16
Chelsea Exchange (quar.)
Ottawa Lt., Ht.& Power, corn.(quar.). 134 Dee. 31 Holders of me. Dm. 15
Jan. 3 Holders of roe. Dee. 221
4
Chemical National (bi-monthly)
Holders of rec. Dec. 31
1% Jan.
Preferred (guar.)
to Jan. 2
Jaa. 3 Dee. 21
3
Colonial (guar.)
1
Jan. 3 Holders of rm. Dm. 15
Ottawa Traction (quar)
to Jan. 2
3
Jan. 3 Dec. 21
Extra
Jan. 3 Holders of rm. Dec. 15
1
Bonus
Jan. 3 Holders of rec. Dec. 16a
4
50e. Jan. 16 Holders of rec. Dec. 3I6 Commerce. Nat. Bank of(01.1ar.)
Pacific Gas& Elec.. corn.(guar.)
Dec. 160
Holders
of
rec.
Jan.
3
2
Extra
Holders
of
131
Dec.
31
rec.
Dec.
24a
Pacific Telep. & Teleg., corn.(quar.)
234 Dec. 31 Holders of rec. Dec. 15
1% Jan. 16 Holders of rec. Dec. 31a Commercial Exchange (quar.)
Preferred (guar.)
Holders of rec. Dec. 310
Jan.
5
Coney Island (Bank of)
*131 Jan. 3 *Holders of rec. Dee. 17
Panama Power & Light, pref.(guar.) _
Holders of rec. Dec. 318
Jan.
6
Penn Central Light & Power, pref.(qu.) $1.25 Jan. 2 Holders of rec. Dec. 15a Fifth Avenue (quar.)
Holders of rec. Dec. 31
Jan.
5
First National (quar.)
25e. Feb. 1 Holders of rec. Jan. 16
Penn-Ohio Edison Co.. corn.(quarj_
Holders of rec. Dec. 16
3
Jan.
234
First
National
(Brooklyn)
134
(quar.)
Mar.
I
Holders of rec. Feb. 15
Seven per cent prior pref.(quar.)
Jan. 3 Holders of rec. Dee. 306
20
First Security Co.(guar.)
$1.50 Jan. 16 Holders of rec. Dm. 31
$6 preferred (guar.)
Holders of rec. Dee. 31
Jan.
3
3
Frank
Sakser
State
Feb
.
I
Holders
of
rec.
Jan.
20
$1.51
Penn-Ohlo Power & LIght, $6 pref. (qu.)
Dec. 31 Holders of rec. Dec. 240
3
Garfield National (guar.)
I% Feb. 1 Holders of rm. Jan. 20
Seven per cent preferred (guar.)
Dec. 31 Holders of rec. Dm. 246
4
Extra
fan. 1 Holders of rec. Dec. 20
55e
6.6% Preferred (monthly)
Jan. 3 Dec. 21 .to Jan. 2
6
Hanover National (quar.)
Feb. 1 Holders of rec. Jan. 20
55o
6.6% preferred (monthly)
Jan. 3 Dec. 21 to Jan. 2
6
Extra
Holders of rec. Dee. 29
130c
Fan.
7.2% preferred (monthly)
3 Holders of rec. Dec. 206
3
Jan.
Lebanon
National
Holders
of
rec.
Jan.
20
600
Feb.
1
preferred
7.2%
(monthly)
Jan. 3 Holders of rec. Dec. 160
Manhattan Co.(Bank of the)(guar).-- 4
Holders of rep. Jan. 15
18c Feb.
Penn-Ohio Securities. corn. (quar.)
Jan. 3 Holders of rm. Dm. 160
$2
Old stock, par $50(quar.)
Dec. 21 to Dec. 31
Pennsylvania Gas & Elec. 7% pref.(qu) 134 Ian.
Jan. 3 Holders of rm. Dec. 176
3
Mechanics (Brooklyn) (guar.)
Pennsylvania Power & Light, pref.(qu.) $1.71 Ian. 3 Holders of rec. Dm. 15
Jan, 3 Holders of rm. Dec. 170
2
Extra
61.50 Ian. 3 Holders of rec. Dec. 15
, $6 Preferred (quar.)
Dm. 31 Dec. 21 to Jan. 2
2
Municipal (Brooklyn), (quar.)
Pennsylvania Water & Power (guar.)... 6294e fan. 3 Holders of rec. Dec. 16
Dee. 31 Dee. 21 to Jan. 2
3
Extra
Dec. 31 Holders of rm. Dec. 10a
3
Peoples Gas Co., pref
Jan. 3 Holders of rec. Dee. 16a
4
Ian, 17 Holders of rec. Jan. 3a National City (guar.)
2
Peoples Gas Light & Coke (quar.)
Jan.
3 Holders of rec. Dec. 160
3
National
City
Company
(quar.)
Holders
of
$1
Jan.d31
rm.
Jan.
Transit,
corn.
(guar.)
16a
Phila. Rapid
2
Jan. • 3 Holders of rec. Dec. 20a
& Western Hy., pref. (quar.)
6254e. Jan. 14 Holders of rec. Dec. 310 New Netherland (quar.)
1
Jan. 3 Holders of rec. Dec. 206
Special
Portland Electric Power, 1st pref.(qu.)134 fan. 2 Holders of rec. Dec. 15
6
Jan. 3 Holders of rec. Dec. 160
Park, National (guar.)
131 fan. 2 Holders of rec. Dec.15
' Prior preference (guar.)
3
Jan. 3 Holders of rec. Dec. 13a
Peoples National (Brooklyn)(guar.) _ _
1
Dec. 31 Holders of rec. Dec. 15
Porto Rico Rys., Ltd. elm.(quer.)__
Jan. 3 Holders of rec. Dec. 135
5
Extra
131 Jan. 3 Holders of rec. Dec. 15
Preferred (quar.)
Jan. 3 Holders of rec. Dec. 20
4
Public Nat. Rank & Trust(guar.)
Power Corporation of CanadaMar.31 Holders of rec. Mar. 1
e20
. Stock dividend
6% cum. let pf.&6% non-oum.pf.(qu.) 134 Jan. 16 Jan. 1 to Jan. 2
Dec.
31 Holders of rec. Dm. 21
4
Queensboro
Jan.
2
Holders
National
of
$1
rec. Dec. 15
Providence Gas Co. (guar.)
(No. 1)
Dee. 31 Dec. 28 to Jan. 2
4
$1
Jan. 2 Holders of rec. Dec. 5
Richmond Hill National
Extra
Dec. 31 Dee. 27 to Jan. 2
5
Rockaway Beach National
Pub.Serv. Corp. of Long Isld.. Pt.(an.). 131 Jan. 1 Holders of rm. Dec. 16
4
Jan. 3 Holders of rec. Dee. 23
50c. Dee. 31 Holders of rec. Dec. 20 Seaboard National (quar.)
Public Service Corp. of N. J., coin.(qu.)
114 Jan, 3 Holders of rec. Dec. 24.
Dec. 31 Holders of rm. Dec. 2a Seventh National (quar.)(No.1)
2
Eight per cent preferred (guar.)
Jan. 1 Holders of rec. Dec. 20a
2
Doe.
South
Shore
31
Holders
of
Bank of Staten Island
134
rec. Dm. 2a
Seven per cent preferred (quar.)
Holders of rec. Dec. 164
Jan.
4
50e. Dee. 31 Holders of rec. Dm. 2a State (quar.)
Six per cent preferred (monthly)
Jan. 1 Dec. 30 to Jan. 2
2
3
Jan. 3 Dec. 25 to Jan. 3
State Bank of Richmond
Public Service Co.of Okla., corn.(qu.)
Dec. 31 to Jan. 2
1
Jan.
Extra
134 Jan. 3 Dec. 25 to Jan
3
7% prior lien stock (guar.)
Holders of rec. Dec. 200
134 Jan. 3 Dec. 25 to Jan. 3
314 Jan.
United States. Bank of (quar.)
6% prior lien stock (quar.)
134 Doe. 31 Holders of rec. Dec. 20
Public Service Elm & Gas 0% pt.(a)131 Dee. 31 Holders of rec. Dee. 2s
Trust Companies.
7% preferred (quarterly)
114 Doe. 31 Holders of rec. Dec. 21a
131 Jan. 16 Holders of rm. Dec. 15a American (guar.)
Puget Sound Pow.& Lt., prior p1.(qu.) _
194 Jan. 16 Holders of roe. Dee. 15a Amer. Exchange Irving Trust (guar.)- 314 Jan. 3 Holders of rec. Dec. 16a
6% preferred (guar.)
50e. Jan. 16 Holders of rec. Dm. 31a
banes Commercial Italiana Trust Co.
Quebec Power (guar)
734 Jan. 3 Holders of rec. Sept. 154
On old capital of $1,000,000
Quinte & Trent Vail. Pr. Co., pf. (au.) 131 Jan. 1 Holders of rec. Dec. 15a
'
131 Jan. 1 Holders of rec. Dec. to
214 Jan. 3 Holders of rec. Dec. 154
On new capital of $2.000.000
Radio Corp. of Amer., pref. A (guar.)
7
Jan. 1 Holders of rec. Dec. Is Bank of Europe Trust(quar.)
234 Jan. 1 Holders of rec. Dec. 20
Original preferred
4
Jan. I Holders of rec. Dec. 20
75e. Jan. 2 Dee 17 t Jan. 2
Extra
Reading Traction
Jan. 3 Holders of rec. Dec. 158
1
Jan. 16 Holders of rec. Dec. 31
5
Bankers (guar.)
St. Maurice Power (quar.)
Jan. 3 Holders of rec. Dec. 5o Bank et N.Y.& Trust Co.. (quar.)
414 Jan. 3 Holders of rec. Dee. 234
Savannah El.& Pow., deb. see. A (qt1). 2
134 Jan. 3 Holders of rec. Dec. 50 Brooklyn (guar.)
6
Jan. 3 Holders of rec. Dec. 244
Debenture stock series II (quar.).....
Jan. I Dec. 2 to Dee. 31
3
Jan. 3 Holders of rec. Dec. 246
Extra
$3
Second & Third Sts. Pass., Phila.(qu.)
8
Jan. 3 Holders of rec. Dec. 236
Central Union (guar.)
Shawinigan Water & Power (quar.).... 500. Ian. tO Holders of rm. Dec. 23
4
Jan. 3 Holders of rec. Dec. 230
Extra
Southeastern Power & Light, corn. (qu.) 25c. Jan. 20 Holders of rec. Dec. 31
250. Jan. 20 Holders of rm. Dec. 31
3
Dec. 31 Holders of rec. Dec. 244
Empire (guar.)
Common vot. or. Mts. (quar.)
$1.75 Ian. 2 Holders of me. Dec. 15
3
Dee. 31 Holders of rec. Dec. 24.
Extra
$7 preferred (quar.)
3
$1.61) Jan. 2 Holders of rec. Dee. 15
Dec. 31 Holders of rec. Dec. 19a
Equitable (quar.)
$11 preferred (quar.)
Jan. 2 Holders of rec. Dee. 15
2
Federation Bank & Trust (guar.)
Dec. 31 Holders of me. Dec. 3I0
Participating preferred (quar.)
2
Dec. 31 Holders of rec. Dec. 31a
Extra
Southern CaliLEdisonCo orig.pf.(qu.) 50e. Jan. 15 Holders of rec. Dec. 20
2% Dec. 31 Dec. 24 to Jan. 18
3434e. Jan. 15 Holders of rec. Dec. 20
Fidelity (guar.)
Preferred series C (quar.)
Feb. 15 Holders of rm. Jan. 31
234 Jan. 3 Holders of rec. Dec. 198
Fulton (guar.)
Southern Canada Power Co., corn.(qu) $1
2
Jan. 3 Holders of rec. Dec. 194
Extra
194 Jan. 16 Holders of roe. Dec. 24a
Pre erred (guar)
4
Dec. 31 Holders of rec. Dec. 16
Guaranty (guar.)
Southern Indiana Power, 7% pref.(qu) 134 Jan. 3 Holders of me. Dee. 16
1% Dec. 31 Holders of rec. Dec. 220
Lawyers (quar.)
194 Jan. 3 Holders of roe. Dec. 16
Six per cent preferred (quar.)
Jan. 3 Holders of rec. Dec. 16
2
Dec. 31 Holders of rec. Dec. 220
Extra
Six per cent preferred (semi-annual).- 3
5
Jan. 3 Holders of rec. Dee. 15
6.6% preferred (quar.)
Manufacturers(quar.)
1.65 Jan. 3 Holders of rm. Dec. 16
2
Jan. 14 Holders of rec. Dec. 31a
4
Feb. 15 Holders of rec. Feb. 6
Extra
Southern N. E.Telephone (guar.)
3
134 Jan. 18 Holders of rm. Dec. 310 Midwood (Brooklyn)
Dec. 31 Dec. 24 to Jan. 2
Southern Wisconsin Elec. prof.(guar.)
3
Jan. 3 Holders of rec. Dec. 31
South Pittsburgh Water Co.,7% pf (qu.) 131 Jun. 16 Holders of rec. Jan. 3a Mutual of Westchester Co.. (auar.)
$1.25 Feb. 20 Holders of rec Feb. 130
2
Jan. 3 Holders of rec. Dec. 31
Extra
Five per cent preferred
131 Jan. 2 Holders of rec. Dec. 150 New York (guar.)
5
Jan. 3 Holders of rec. Dec. 24a
Southwest Power Co.. 7% pt..(qu.)_ _
4
Jan. 3 Holders of rec. Dec. 22
Southwestern Bell Teter... pref.(guar.). 134 Jan. 2 Holders of rec. 13ec. 2(1
Title Guarantee & Trust (quar.)
Jan. 3 Holders of rec. Dec. 15a
5
Jan. 3 Holders of rec. Dec. 22
Extra
Southwestern Light & F ower, prof.(qu)
5
Mar.31 Holders of rec. Mar.22
Extra
Southwest Gas & Elec.,8% prof.(an.)-. d$1.50 Jan. 2 Holders of rec. Dec. 15a
7% preferred (quar.)
15
Jan. 3 Holders of roe'. Dec. 210
131 Jan. 2 Holders of rec. Dec. 15a finned States (guar.)
*e3313 Jan. 16 *Holders of rec. Dec. 31
o 13.5. Mortgage & Trust..
Springfield (51o.) Gas & 11.. pt. A (au) $1.75 Jan. 3 Holders of rm. 13m. 15
4
Jan. 3 Holders of rec. Dec. 27
Standard Gas & Elm'.(Del.), corn (au.). 87 Sic. Jan. 25 Holders of rec. Dec. 3Ia U.S. Mortgage & Trust (guar.)
4
IMe. Jan. 25 Holders of rec. Dec. 31a
Jan. 3 Holders of rec. Dec. 27
Extra
7% prior preference (ouar.)
2
Dec. 31 Ho dere of rec. Dec. 22
Standard Gas Light, N. Y.. corn
3
Dec. 31 Holders of rec. Dec. 22
Fire Insurance.
Preferred
Holders of rec. Dec. 16
40
144 Jan. 3 Holders of rec. Dec. 15
Amer-Equitable Assurance, corn
Superior Water, Lt. & Pow.. prof.(qu.)_
Holders of rec. Dec. 1
f150
Jan. 3 Holders of rec. Dee. 200
$1
Common (pay on corn, stock
Tennessee East Elec.. corn (guar.)
Holders of rec. Dec. 31e
$1
Jan.
10
131
Mar.
1
Holders
of
Continental,
$10
rec.
Feb.
par
stock
is
(quar.)
6% pref.
02.50 Jan. 10 Holders of rec. Dec. 314
$1.75 Mar. 1 Holders of rec. Feb. 10
$25 par stock
$7 pref. (quar.)
3604
Name of Company.
Fire Insurance (Concluded).
FIdelity-Phenix
Hanover Fire (guar.)
Knickerbocker, common
Corn.(payable in common stock)
Rossi& (guar.)
Stuyvesant (guar.)
THE CHRONICLE
Per
When
Cent. Payable
Books Closed.
Days Inclusive.
Name of Company.
[VOL. 125.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Bancroft (Joseph) dr Sons Co., com.(qu.) 62340. Dec. 31 Holders of rec. Dec. 15
Bankers Secur. Tr. of Amer., Pf• (qu.)-194 Jan. 16 Holders of rec. Dec.
Bankinstocks Holding Corp.(No. 1)_.... 25c. Jan. 3 Holders of rec. Dec. 31
15
Bankstoeks Corp. of Md., cl. A (No. 1)_ 15e. Jan. 1 Holders of rec. Dec.
17
Barnet Leather, pref. (quar.)
134 Jan. 1 Holders of rec. Dec. 306
Barnhart Bros. & SpindlerFirst and second pref.(guar.)
134 Feb. I Holders of rec. Jan. 230
Miscellaneous.
Bastian-Blessing Co., pref. (guar.)
81.75 Jan. 1 Holders of rec. Dec. 200
Preferred
(guar.)
$1.75 Apr. 1 Holders of rec. Mar.200
Abitibi Power dr Paper. Ltd.. pref. (qM.) I% Jan. 3 Holders of rec. Dec. 20
Preferred (quar.)
$1.75 July 1 Holders of rec. June 20a
Abraham & Strauss, pref. (guar.)
134 Feb. 1 Holders of rec. Jan. 15a
Preferred ((mar.)
$1.75 Oct. 1 IIolders of rec. Sept.20a
Acme Road Machinery, pref. (guar.)... 2
Jan. 2 Dec. 16 to Jan. 2
Bayuk Cigars, Inc., 1st pref.(quar.)
134 Jan. 15 Holders of rec. Dec. 316
Adams Express (guar.)
31.50 Dec. 31 Holders of roe. Dec. 15a
Convertible second pref. (guar.)
1% Jan. 15 Holders of rec. Dec. 310
Preferred (quar.)(No.1)
$1.25 Dec. 31 Holders of rec. Dec. 15a
Eight per cent second pref. (quar.)___ 2
Jan. 15 Holders of rec. Dec. 31a
Aeolian Company, pref.(guar.)
1% Dec. 31 Holders of rec. Dec. 20
Beardsley Manufacturing (guar.)
37340. Jan. 3 Holders of rec. Dec. 18
Aeollan,Weber Piano & Pianola.pref (qu) 1% Dec. 31 Holders of rec. Dec. 20
Beatrice Creamery, corn. (guar.)
Jan.
$1.25
3 Dec. 21 to Jan. 2
Aetna Rubber, common (guar.)
50c. Dec. 31 Holders of rec. Dec. 15a
Preferred (guar.)
1% Jan. 3 Dec. 21 to Jan. 2
Preferred (guar.)
134 Dec. 31 Holders of rec. Dec. 15a Beech-Nut Packing, corn.(guar.)
60o.
Jan.
10
Holders of rec. Dec. 24
Air Reduction Co., Inc.(guar.)
$1.25 Jan. 15 Holders of rec. Dec. 31a Beech-Nut Packing, pref. el. B (final)._
32.05 Jan. 16 Stk. call. for red.Jan. 18
Akron Rubber Reclaim, corn. (guar.)
50c. Jan. 15 Holders of rec. Jan. 5a Belding-Hemingway Co. (guar.)
50c. Jan. 3 Holders of rec. Dec. 200
Preferred (guar.)
Jan. 3 Holders of rec. Dec. 200 Belgo Canadian Paper,common
2
(guar.). 134 Jan. 12 Holders of rec. Dec. 31
Alabama Fuel & Iron (guar.)
2
Jan. 3 Dec. 22 to Jan. 2
Preferred (guar.)
1% Jan. 3 Holders of rec. Dec. 2
Albany Perforated Wrap.Pap.,com.(qu) 500. Dec. 31 Dee. 25 to Jan. 2
Bendix Corp., clam A (guar.)
50c. Jan. 3 Holders of rec. Dec. 150
Preferred (guar.)
134 Dec. 31 Dec. 25 to Jan. 2
Berry Motor (guar.)
30e.
Dec. 31 Holders of rec. Dec. 20
Alberta Pacific Grain Co., pref.(quar.)- 134 Jan. 1 Holders of rec. Dec. 15
Bethlehem Steel Corp., Pref. (guar.).- 134 Jan. 3 Holders of rec. Dec.
20
Alles dr Fisher (guar.)
50c Jan. 2 Dec. 22 to Jan. 1
Bingham Mines Co. (quar.)
El
Jan. 5 Holders of rec. Dec. 20a
Alliance Investment Corp.. corn.(qu.)__ 3734c. Jan. 3 Holders of reo. Dec. 15
Blaw-Knox Co. (guar.)
75c. Feb. 1 Jan. 22 to Jan. 31
Allied Chemical & Dye Corp., N.(qu.)
1% Jan. 3 Holders of rec. Dec. 120
Stock dividend
Jan. 10 Dec. 31 to Jan. 9
el0
Aloe (A. S.) Co., common (guar.)
63o. Jan. 2 Holders of rec. Dec. 19
Bliss(E. W.) Co., corn. (guar.)
25c. Jan. 3 Holders of roe. Dec. 200
Preferred (guar.)
13( Jan. 2 Holders of rec. Dec. 19
First preferred (guar.)
31
Jan. 3 Holders of rec. Dec. 200
Aluminum Co. of Amer., pref. (guar.).134 Jan. 1 Holders of rec. Dec. 150
Second preferred class A (guar.)
8734e. Jan. 3 Holders of rec. Dec. 20a
Aluminum Manufactures. corn.(quar.) .50o. Dec. 31 *Holders of rec. Dec. 15a
Second preferred class B (guar.)
150 Jan. 3 Holders of rec. Dec. 20
Amalgamated Laundries. pref.(mthly.)_ 5814. Jan 2'28 Holders of rec. Dec. 15a Bloch Bros.
Tobacco, pref. (quar.)
134 Dec. 31 Dec. 25 to Jan. 2
Preferred (monthly)
58110. Feb1'28 Hold, of rec. Jan. 15'28a Bohn Aluminum & Brass (guar.)
Jan. 2 Holders of rec. Dec. 15a
3734e
Preferred (monthly)
5914. M'rl'28 Hold. of rec. Feb. 15 '280 Borden Company,corn. (guar.)
31.50 Mar, 1 Holders of roe. Feb. 15
Preferred (monthly)
581 c. Aprl'28 Hold. ofrec Mar. 15'280 Borg & Beck (guar.)
Jan. 3 Holders of ree. Doe. 15a
SI
Preferred (monthly)
5814. M'yl'28 Hold. of rec. Apr. 16 '280
Stock dividend
Jan. 2 Holders of rec. Jan. 1
e20
Preferred (monthly)
5814, Jun 128 Hold. of roe. May 16'280 Boston Wharf
Dec. 31 Holders of roe. Dec. la
3
Amerada Corporation (guar.)
500. Jan. 31 Holders of rec. Jan. 160 Boyd-Welsh Co. (guar.)
75c. Jan. 2 Holders of rec. Dec. 23
American Art Works,corn. dr pref.(qu.)
134 Jan. 15 Holders of rec. Dec. 31
Brandram-Henderson, Ltd., Pref. (qIL)- 1% Jan. 2 Holders of roe. Dec. la
American Bakeries, pref. (guar.)
1% Jan. 1 Holders of rec. Dec. 15
Bridgeport Machine. prof.(guar.)
1% Jan. 1 IIolders of rec. Dec. 20
Class A (guar.)
75o. Jan. 1 Holders of rec. Dec. 15
Brill° Mfg., class A (guar.)
50c. Jan, 2 Holders of rec. Doe. 150
Amer. Bank Note corn. (guar.)
500 Jan. 3 Holders of rec. Dec. 126 British American Oil(guar.)
20e. Jan. 3 pDec. 15 to Dec. 31
Preferred (guar.)
750. Jan. 3 Holders of rec. Dec. 126
Bonus
20c. Jan. 3 pDec. 15 to Dec. 31
Amer. Bond & Mtge., pref.(guar.)
1% Jan. 1 Holders of rec. Dec. 20
British-American Tobacco, ordthary____ (o) Jan. 23 See note (u)
Amer. Brake Shoe & Fdy., corn.(guar.)- 40e. Dec. 31 Holders of rec. Dec. 210
Ordinary (Interim)
(u) Jan. 23 See note (u)
Preferred (guar.)
1% Dec. 31 Holders of rec. Dec. 2I0 Brit. Col. Fish & Pack., corn. (quar.)-- $1.25
Mar. 10 Holders of rec. Feb. 28
American Can, pref. (guar.)
1% Jan. 3 Holders of rec. Dec. 166
Preferred (guar.)
134 Mar. 10 Holders of rec. Feb. 28
Amer. Car & Fdy., common (quar.)___ 31.50 Jan. 2 Holders of rec. Dec. 12a
Brockway Motor Truck, pref. (quar.)
134
Jan.
2
Preferred (guar.)
1% Jan. 2 Holders of rec. Dec. 120 Brompton Pulp & Paper corn. (quar.)_ 500. Jan. 16 Dec. 22 to Jan. 1
Holders of rec. Dec. 310
American Chain, pref. (guar.)
1% Jan. 1 Dec. 22 to Jan. 2
Bruce (E. L.) Co., corn. (guar.)
62340 Jan. 1 Dec. 22 to Dec. 31
American Chicle, common (guar.)
750. Jan. 1 Holders of rec. Dec. 15a Brunswick-Balke-Collender, pref.
1% Jan. 3 Holders of rec. Dec. 20
(ati.)Prior preferred (guar.)
134 Jan. 1 Holders of rec. Dec. 150 Bryan, Cryan dr Colleran, part. pref
_- *4
Jan. 1 Holders of roe. Deo. 20
American Cigar, pref.(guar.)
134 Jan. 3 Holders of rec. Dec. 15
Part. pref. (extra)
*2
Jan. 1 Holders of rec. Dec. 20
Amer. Cyanamid, corn. A & B (guar.)._ 30c. Jan. 3 Holders of rec. Dec.
15
Buckeye Incubator. corn. (guar.)
8734c Jan. 3 Holders of rec. Dec. 200
Common A & B (extra)
10c. Jan. 3 Holders of rec. Dec. 15
Preferred (guar.)
2
Jan. 3 Holders of roe. Dec.
Preferred (quar.)
134 Jan. 3 Holders of rec. Dec. 15
Bucyrus Company, common (guar.)---- 75o. Jan. 3 Holders of roe. Dec. 200
Amer. Druggist Syndicate (guar.)
12
40c. Dec. 31 Holders of rec. Dec. 16a
Preferred (guar.)
134 Jan. 3 Holders of roe. Dec. 12
Amer. Encaustic Tiling, pref. (guar.). _ _
134 Dec. 31 Holders of rec. Dec. 156 Budd Wheel. 1st pref.(guar.)
Dec.
31
Holders
194
of
American Express (guar.)
rec.
100
Dee.
$1.50 Jan. 3 Holders of rec. Dec. 160 Builders Exchange Bldg. Co.(Bait.)
Jan. 7 Dec. 25 to Jan. 5
- -- 3
Amer. Fork & Hoe, corn. (guar.)
134 Mar. 15 Holders of rec, Mar. 50
Extra
9
Jan. 7 Dee. 25 to Jan. 6
Amer. Furniture Mart Bldg.. pref. (qu.) 134 Jan. 2 Dec. 21
Bulkley DIdg,(Cleve.), pref, (guar.)...
Dye. 21 to Jan. 2
American Home Products, corn. (mthly) 20c. Jan. 3 Holders of to Jan. 1
rec. Dec. 14a nullard l'..fachlne Tool (guar.)
Common (monthly)
5714c. Dec. 31 Holders of roe. Dee. 200
c. Feb. 1 Holders of rec. Jan. I4a Ithrkart (F.) Mfg., corn.
(guar.)
Jan.
37
2
Dec.
Ole
Preferred (guar.)
21 to Jan. 20
134 Dec. 31 Holders of rec. Dee. 160
Preferred (guar.)
Mc Jan. 2 Dec. 21 to Jan. 20
Am. Indemnity Corp., Phila., corn, and
Burns Bros.. preferred
114 Jan. 3 Holders of reo. Doe. 130
preferred (quar,)
43346. cc. 31 'Holders of rec. Dec. 230 Burt (J. N.) Co.. corn.(guar.)
(guar.)
75e. Jan. 1 Holders of roe. Dec. 15
Amer: LI)tablotive, corn. (guar.)
Dec. 31 Holders of rec. Dec. 13a
$2
Preferred (guar.)
1% Jan. 1 Holders of rec. Dec. 16
Preferred (guar.)
134 Dec. 31 Holders of rec. Dec. 130 Bush Terminal Co.. corn.(guar.)
Feb. 1 Holders of rec. Dec. 270
50e.
American Mfg. Co.. corn. (guar.)
134 Dec. 31 Holders of rec. Dec. 160
Common (payable in corn. stock)
1155 Feb. 1 Holders of rec. Dec. 270
American Meter (guar.)
*31.25 Jan. 31 *Holders of rec.dJan. 18
Preferred
3
Jan. 14 Holders of coo. Dec. 270
Extra
•53
Jan. 4 *Holders of rec. Dec. 21
Debenture stock (quar.)
154 Jan. 14 Holders of rec. Doe. 27a
American Plano, Pref. (guar.)
134 Jan. 3 Holders of rec. Dec. 106
1% Jan. 2 Holders of rec. Dec. 150
Amer. Pneumatic Service, let pf. (qu.)_ _ 8734 Dec. 31 Holders of rec. Dec. I60 Bush Terminal 13Idgs., pref. (guar.).- 11,6
Butler (James) Grocery. pref
Jan. 3 *Holders of rec. Nov. 7
2d preferred (guar.)
50o. Dec. 31 Holders of rec. Dec. 160 Butte & Superior Mining (guar.)
50c. Dec. 31 Holders of rec. Dec. 1642
American Radiator, common (quer.)-- 31.25 Dec. 31 Holders of rec. Dec. 150
Byers (A. M.) Co., pref. (quar.)
131 Feb. dl Holders of rec. Jan.615a
Amertcan Railway Express (quar.)
31.50 Dec. 31 Holders of rec. Dec. 150 Byers Machine, class A (guar.)
90c Jan. 1 Holders of rec. Dec. 22
American Rolling Mill, corn. (guar.)._ 500. Jan. 15 Holders of rec. Dec. 310
Cadet Knitting, pref. & 1st pref.(qu.)
Jan. 1 Holders of rec Dec. 154
2
Preferred (guar.)
134 Dec. ,31 Holders of rec. Dec. 150 Cambridge Rubber, pref.(guar.)
1% Jan. 1 Holders of rec. Dee. 200
American Safety Razor (guar.)
Jan. 3 Holders of rec. Dec. 10a Campbell Baking, pref. (guar.)
El
Jan.
El
3 Holders of rec. Dec. 23a
Extra
25c. Jan. 3 Holders of rec. Dec. 10a Canada Dry Ginger Ale (guar.)
75c. Jan. 16 Holders of rec. Dec. 31a
American Sales Book (guar.)
Jan. 3 Holders of roe. Dec. 150 Canada Bread, pref. A & B (quar.)_
El
134 Jan. 1 Dec. 16 to Jan. 1
American Screw (guar.)
1
Jan. 3 Holders of rec. Dec. 21a Canada Permanent Mtg.Corp.(quar.) _
3
Jan. 3 Holders of reo. Dee. 15
American Seating (guar.)
750. Jan. 1 Holders of rec. Dec. 200 Canada Steamship Lines, pref. (quar.)-134 Jan. 3 Holders of roe. Dec. 15
Amer. Shipbuilding, corn. (guar.)
Feb. 1 Holders of rec. Jan. 140 Canadian Car & Fdy., pref.(guar.)
2
Jan.
194
10 Holders of roe. Doe. 27
Preferred (guar.)
194 Feb. 1 Holders of rec. Jan. 140 Canadian Cottonil. Ltd., corn. (guar.) _
Jan. 4 Holders of rec. Dec. 236
American Snuff. common (guar.)
3
Jan. 3 Holders of rec. Dec. 150
Preferred (guar.)
134 Jan. 4 Holders of roe. Dec. 23a
Preferred (guar.)
134 Jan. 3 Holders of rec. Dec. 150 Canadian General Electric, pref.
(qu.)-- 134 Jan. 2 Holders of rec. Dec. 15
American Spinning
Dec. 31 Holders of rec. Dec. 244 Canadian Industrial Alcohol, corn. (qu.)
5
38c. Jan. 16 Holders of rec. Deo. 310
Amer. Steel Foundries, corn. (guar.).75o. Jan. 14 Holders of rec. Jan. 30 Canadian Locomotive, pref. Mari--- 1% Jan. 1 Holders of rec. Dec. 200
Preferred (guar.)
134 Dec. 31 Holders of rec. Dec. 150 Caned.Paperboard Co., Ltd., Pref
• (OIL) 194 Jan. 1 Holders of rec. Dec. 15
American Stores Co.(quar.)
50c. Jan. 2 Dec. 18 to Jan. 2
Canadian Salt (guar.)
Jan. 1 Holders of rec. Dec. 24
American Sugar, corn. (guar.)
134 Jan. 2 Holders of rec. Dec. la Canadian Westinghouse (quar.)
2
Jan. 2 Holders of rec. Dec. 20
Preferred (guar.)
Jan. 2 Holders of rec. Dec. la
Extra
2
Jan. 2 Holders of rec. Dec. 20
American Surety (guar.)
$2.50 Dec. 31 Holders of rec. Dec. 240 Canfield Oil, corn.(guar.)
1)4 Dec. 31 Doe. 21 to Jan. 4
Extra
Dec. 31 Holders of rec. Dec. 24a
El
Common (quar.)
*2
Mar. 31 *Holders of rec. Mar. 20
Amer. Thermos Bottle, pref. (quar.)__. 8734c. Jan. 3 Holders of rec. Dec. 200
Common (guar.)
*2
June 30 *Holders of rec. June 20
American Thread, preferred
1234c Jan. 1 Holders of rec. Nov.300
Common (quar.)
*2
Sept. 30 *Holders of roe. Sept. 20
Amer. Tobacco, pref. (guar.)
134 Jan. 3 Holders of rec. Dec. 100
Common (guar.)
*2
Dec. 31 *Holders of rec. Dec. 20
Amer. Type Founders, corn. (quar.). - -- 2
Jan. 14 Holders of rec. Jan. 5a
Preferred (quar.)
I% Dec. 31 Dec. 21 to Jan. 4
Preferred (guar.)
114 Jan. 14 Holders of rec. Jan. 5a
•1M
Preferred (guar.)
Mar.31 *Holders of roe. Mar. 20
Amer. Vitrified Products. corn.(guar.) - 50c. Jan. 15 Holders of rec. Jan. 5
Preferred (guar.)
•134 June 30 *Holders of rec. June 20
American Wholesale. pref.(guar.)
1% Jan. 1 Holders of rec. Dee. 200
•15i Sept. 30 *Holders of roe. Sept.
Preferred (guar.)
20
Amer. Window Glass Mach., pf.
.(qu.) *Jan. dividen d omitted.
Preferred (guar.)
•134 Dec. 31 *Holders of rec. Dec. 20
Amoskeag Co., corn
Jan. 3 Holders of rec. Dec. 23a Canton Co. of Baltimore
54
3
Dec. 31 Holders of rec. Dec. 270
Preferred
12.25 Jan. 3 Holders of rec. Dec. 23a
Extra
1
Dec. 31 Holders of rec. Dec. 274
Archer-Daniels-Midland Co.. corn. (qu.)
75c. Feb.628 Holders of rec. Jan. 2I6 Carling Breweries, Ltd.(guar.)
50c. Jan. 1 Holders of rec. Dec. 100
Preferred (quar.)
134 Feb.628 Holders of rec. Jan. 216 Case (J. I.) Thresh. Mach., COM.(guar.) 31.50 Jan. 2 Holders of
roe. Dec. 124
Arctic Dairy Products corn. (quar.)_ 50c. Jan. 1 Holders of rec. Dec. 20a
Preferred (guar.)
154 Jan. 2 Holders of reo. Des. 12a
Armour dr Co.(Illinois). pref.(guar.) _
54 Jan. 2 Holders of rec. Dec. 10a Casey-Hedges Co.. corn. (guar.)
234
Armour & Co.(Del.), pref.(guar.)
1% Jan. 2 Holders of rec. Dec. 10a
Preferred (guar.)
Jan
n..
134 j
Armstrong Cork, common (guar.)
134 Jan. 3 Dec. 16 to Jan. 3
Celanese Corporation, 1st part. pref _
3.14 Dec. 31 Ilolders of rec. Dec. 15
Common (payable in common stock).... 5
Jan. 16 Dec. 16 to Jan. 3
Celotex Co., common (guar.)
750.
Jan.
1 holders of rec. Dee. 15a
Preferred (guar.)
134 Jan. 3 Dec. 16 to Jan. 3
Preferred (guar.)
134 Jan. 1 Holders of rec. Dec. 15a
Artloom Corp., corn. (guar.)
34 Jan. 1 Holders of rec. Dec. 19
Central Aguirre Sugar (guar.)
$1.50
Jan.
3
Holders of rec. Dec. 20
Art Metal Construction (guar.)
3734c Dec. 31 Holders of rec. Dec. 22a Central Alloy Steel, corn. (guar.)
50c. Jan. 10 Holders of rec. Dec. 24a
Arundel Corporation, corn. (guar.)
*50c Jan. 2 *Holders of rec. Dec. 22
Preferred (guar.)
1% Jan. I Holders of rec. Deo.13a
Common (extra)
Jan. 2 *Holders of rec. Dec. 22
.$1
Central American Plantation
310 Dec.630 'folders of rec. Dee. 22
Asbestos Corp., Ltd.. pref. (guar.)
1% Jan. 16 Holders of rec. Dec. 31
Central Dairy Products ((Plan)
50o. Jan. 3 Holders of rec. Dec. 200
Associated Industrials, 1st pf. (quar.)- - 2
Jan. 15 Holders of rec. Jan. 156 Century Electric, common (guar.)
134 Jan. 1 Holders of reo. Dec 15a.
Atlantic Macaroni, Inc.(guar.)
Jan. 1
1
Certain-teed Products, corn. (guar.)._
21
Jan. 1 Holders of reo. Dee. 160
Atlas Plywood Corp. (guar.)
El Jan. 16 Holders of rec. Jan. 3
First and second pref.(guar.)
131 Jan. 1 Holders of rec. Dee. 16a
Atlas Portland Cement. pref. (guar.)... 66210. Jan. 3 Holders of rec. Dec. 230 Certo Corporation
(quar.)
75o.
Dec. 31 Holders of rec. Dec. la
Auburn Automobile (guar.)
Jan. 2 Holders of rec. Dec. 23a
$I
Extra
250. Dec. 31 Holders of rec. Dec. la
Stock dividend (one-fifteenth share) _ 2
Jan. 2 Holders of rec. Dec. 236 Chandler-Cleveland Motors, pref
Janus
ry
divld end passed.
Augusta Knitting, pref. (guar.)
11.4 Jan. 1 Holders of rec. Jan. la Channon (H.) Co., 1st pref (guar.)._
134 Jan. 3 Holders of rec. Deo 200
Auto Strop Safety Farm. class A (qu.)_ _ 75e. Jan. 1 Holders of rec. Dec. 100
Second preferred (guar.)
2
Jan. 3 Holders of rec. Dec. 200
Babcock & Wilcox Co. (guar.)
1% Jan 128 Holders of rec. Dec. 200 Chicago Electric Mfg., class A (guar.)._ 600. Jan.
1 Holders of rec. Deo. 210
Quarterly
1% Apr 128 Hold. rec. Mar. 20'280 Chicago Fuse Mfg. (guar.)
6234e Jan. 2 Holders of rec. Dec. 160
Baer, Sternberg & Cohen. 1st pl. (qu.)..
194 Jan. 2 Holders of rec. Dec. 24
Chic. Jt. Rys & Un.Stk. Yds.,com (qu) 234 Jan. 3 Holders of rec. Dec. 15a
Secondpreferred (guar.)
Jan. 2 Holders of rec. Dec. 24
Preferred (guar.)
134 Jan, 3 Holders of rec. Dec. 15a
Balaban & Katz, corn. (monthly)
25e. Jan. 2 Holders of rec. Dee. 200 Chicago Mill & Lumber. pref. (guar.)._
1% Jan. 1 Holders of rec. Doe. 240
Preferred (quarterly)
134 Jan. 2 Holders of rec. Dec. 20a Chicago Morris Plan (quar.)
Dee. 31 Holders of rec. Dee. 31
134
Baldwin Locomotive, corn. & pref
334 Jan. 1 Holders of rec. Dec. 30 Chicago Pneumatic Tool (quar.)
•1A Jan.
wd.25 *Holders of rec. Jan. 14
Baltimore Acceptance Corp., corn. (qu.)
25e. Jan. 1 Holders of rec. Dec. 20a Chicago, Railway Equip., com.-*Jan. div. pa
Preferred (guar.)
1% Jan. 1 Holders of rec. Dec. 20a
*134 J
Preferred (guar.)
a . 31 *Holders of rec. Dec. 20
Dec.
Bancitaly Corp. (guar.)
560. Dec. 31 Dec. 16 to Jan. 2
Chicago Yellow Cab (monthly)
33 1-3
Holders of rec. Dec. 200
Bankers Capital Corp.. common
Jan. 16 Holders of rec. Dec. 31a
Monthly
33
1-3
1 Holders of rec. Jan. 20a
Feb.
Common (extra)
Jan. 16 Holders of rec. Dec. 31a
:4
4
Monthly
33 1-3 Mar, 1 Holders of rec. Feb. 200
Preferred (guar.)
Jan. 16 Holders of rec. Dec. 3Ia Christie, Brown & Co., corn.(guar.)
$2
30o. Feb. 1 Holders of rec. .Tan. 15a
Preferred (extra)
14
Jan. 16 Holders of rec. Dec. 31a
Preference (guar.)
114 Feb. 1 Holders of rec. Jan. 20
$2.50 Jan.
$1.25 Jan.
1734
1150
$1.50 Jan.
135 Jan.
10 Holders of rec. Dec. 31a
3 Holders of rec. Dec. 15a
Holders of rec. Dec. 22
Holders of rec. Dec. 22
3 Holders of rec. Dec. 140
30 Jan. 25 to Jan. 30
113 Dco, 31
Name of Company
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
75c. Jan. 3 Holders of rec. Dec. 15o
Chrysler Corp., common (guar.)
Jan. 3 Holders of roe. Dec. 15a
$2
Preferred A (guar.)
34 Jan. 2 Holders of rec. Dec. 15
Cities Service, common (monthly)
Jan. 2 Holders of roe. Dec. 15
/54
stock)
corn,
Common (payable In
54 Jan. 2 Holders of roe. Dec. 15
Preferred and pref. BB (monthly)
50. Jan. 2 Holders of rec. Dec. 15
PreferredB (monthly)
*54 Feb. 1 *Holders of rec. Jan. 14
Cities Service, corn. (monthly)
•f34 Feb. 1 *Holders of rec. Jan. 14
Com.(payable in corn, stock)
•54 Feb. 1 *Holders of rec. Jan. 14
Pref. & pref. B. B (monthly)
•5c. Feb. 1 *Holders of rec. Jan. 14
Preferred B (monthly)
City Financial Corp., cl. A.(qu.)(No. 1) 6254c. Jan. 3 Holders of rec. Dec. 200
Jan. 1 Holders of rec. Dec. 31a
3
City Housing Corp
City Ice & Fuel (Cleveland) (guar.) - The. dMar.1 Holders of rec. Feb. 10a
Jan. 3 Holders of rec. Dec. 220
234
(guar.)
common
Investing,
City
I% Jan. 3 Holders of rec. Dec. 22
Preferred (guar.)
8751c Feb. 1 folders of rec. Jan. 115a
City Stores Co., class A (guar.)
500. Mar. 1 Holders of rec. Feb. 15a
Cleveland Stone (guar.)
500. June I Holders of rec. May 150
Quarterly
50c. Sept. 1 Holders of rec. Aug. 15a
Quarterly
Dec. 31 Dec. 21 to Jan. 2
2
Cleveland Union Stock Yards (guar.)
50c. Jan. 3 Holders of rec. Dec. 20a
Club Aluminum Utensil(guar.)
Co.
&
Peabody
Cluett,
134 Jan. 3 Holders of rec. Dec. 210
Preferred (qua:.)
$1.25 Jan. 2 Holders of rec. Dec. 12a
Coca-Cola Co.(guar.)
$2.50 Jan. 2 Holders of rec. Dec. 12a
Coca-Cola Internat. Corp.(guar.)
154 Jan. 2 Holders of rec. Dec. 20
Cohn-Hall-Max Co., pref. (guar.)
Jan. 3 Holders of rec. Dec. 20a
1
Colonial Steel
50e. Dec. 31 Holders of rec. Dec. 10a
Colt's Patent Fire Arms Mfg.(quar.)_
154 Jan, 3 Holders of rec. Dec. 19a
Columbus Manufacturing (qua:.)
Commercial Credit Corp., corn. (qua:.) 25o. Dec. 31 Holders of rec. Dee. 100
4354c Dee. 31 Holders of rec. Dec. 100
7% first pref. (guar.)
154 Dec. 31 Holders of rec. Doe. 10a
654% first pref. (qua:.)
50e. Dec. 31 Holders of rec. Dec. 10a
Class B pref. (guar.)
Dec. 31 Dec. 20 to Dec. 31
Commercial Finance Corp.,corn.(guar.) 52
154 Dec. 31 Dee. 20 to Dec. 31
Preferred (qua:.)
Commercial Investment Trust, com.(qu) 90e. Jan. 1 Holders of rec. Dec. 1511
154 Jan. 1 Holders of rec. Dee. 15a
7% first pref. (qua:.)
134 Jan. I Holders of rec. Dec. 15a
654% first pref. (guar.)
52 Jan. 1 Holders of rec. Dec. 20a
Commercial Solvents Corp.(guar.)
Dec. 31 Holders of rec. Dec. 20
6
Commonwealth Casualty
Jan. 3 Holders of rec. Dec. 24
4
Community Loan System,Brooklyn
Jan. 3 Holders of rec. Dec. 24
1
Extra
Conde Nast Publication", Inc., com.(qu) 50o. Jan. 1 Holders of rec. Dec. 17a
Jan. 1 Dec. 18 to Dec. 31
Conduits Co., Ltd., 7% pref.(guar.).Jan. 2 Holders of rec. Dee. 14a
$1
Congress Cigar (guar.)
25e. Jan. 2 Holders of rec. Dec. 14a
Extra
50c. Dec. 31 Dec. 21 to Doe. 31
Conley Tank Car, corn.(qua:.)
50e. Dec. 31 Doe. 21 to Dec. 31
Common (extra)
Dee. 31 Dec. 21 to Dec. 31
2
Preferred (guar.)
154 Jan. 1 Holders of rec. Doe. 20a
dContoocook Mills, pref. (guar.)
134 Jan. 16 Holders of rec. Dec. 310
Consolidated Car-Heating (qua:.)
Consolidated Cigar Corp., com.(guar.). $1.75 Jan. 6 Holders of rec. Dec. 30a
1.6254 Feb. I Holders of rec. Jan. 160
Prior preferred (guar.)(No. 1)
Consol.Dairy Prod new etk.(gu.)(No. 1) 50c. Jan. 1 Holders of rec. Dee. 15a
51.25 Jan. 16 Holders of rec. Dec. 31
Consolidated Mining & Smelting
Jan. 16 Holders of rec. Dec. 31
55
Bonus
Jan. 3 Holders of rec. Dec. 23a
Continental Baking, common A (guar.). 51
2
Jan. 3 Holders of rec. Dec. 230
Preferred (guar.)
Jan. 3 Holders of reo. Dec. 20a
Continental Can Co., Inc., wet.(guar.)
Jan, 16 Holders of rec. Jan. 3
Continental Securities Cont.(guar.)- - 51
50e. Jan. 20 Holders of rec. Dee. 3Ia
Corn Products Refining, corn. (guar.)._
75e. Jan. 20 Holders of rec. Dec. 31a
Common (extra)
154 Jan, 14 Holders of rec. Dee. 310
Preferred (guar.)
1
Dec. 24 Holders of rec. Dec. 20a
Cornell Mills (guar.)
$1.25 Dee. 31 Holders of roe. Dee. 16o
Coty. Inc. (guar.)
Dec. 31 Holders of reo. Dec. 16a
$1
Extra
Dec. 31 Dec. 16 to Dec. 31
3
Craddock Terry Co., lot & 2d pref
Dec'. 31 Dec. 16 to Dec. 31
354
preferred
C
Class
50e Jan. 10 Jan. 1 to Jan. 18
Creamery Package Mfg., corn.(qua:.).
50c Jan. 10 Jan. 1 to Jan. 18
Common (extra)
154 Jan. 10 Jan. 1 to Jan. 18
Preferred (guar.)
Jan. 3 Doe. 16 to Jan. 2
$4
Crown Finance, common
144 Jan. 3 Dec. 16 to Jan. 2
Preferred (guar.)
Crown Willamette Paper, let Pf. (gu.).. 154 Jan. 1 Holders of rec. Dec. 130
154 Jan. 31 Holders of ree. Jan. 140
Crucible Steel, common (guar.)
154 Dec. 31 Holders of rec. Dec. 15a
Preferred (guar.)
33,4 Feb. 1 Holders of rec. Jan. 16a
Cuba Company, pref
Cuban-American Sugar, corn.(qua:.)... 250. Jan, 3 Holders of rec. Dec. 3a
154 Jan. 3 Holders of rec. Dec. 3a
Preferred (guar.)
$1.50 Dec. 31 Holders of rec. Dec. 15
Cuban Tobacco, Inc., common
50o. Dec. 31 Holders of rec. Dec. 15
Common (extra)
254 Dec. 31 Holders of rec. Dec. 15
Preferred
Jan. 14 Holders of rec. Jan 5
$1
Cudahy Packing, corn. (qua:.)
040
Dec. 24 Holders of rec. Dec. 20a
Cuneo Press (stock dividend)Danish American Corp., 1st & 2d pf.(qu) $1.75 Jan. 3 Dec. 21 to Jan. 3
Davenport Hosiery Mills, pref. (qu.)... 134 Jan. 1 Holders of rec. Dec. 20
Decker (Alfred) & Cohn, pref.(qua:.)... 134 mar. 1 Holders of rec. Feb. 200
13,4 June 1 Holders of rec. May 19a
Preferred (guar.)
I% Sept. 1 Holders of rec. Aug. 20a
Preferred (guar.)
154 Jan. 1 Holders of rec. Dee. 15
Defiance Dairy Products, pref.(qua:.)
Jan. 2 Holders of reo. Des. 15a
Detroit & Cleve. Navigation (quar.)- 2
20e Jan. 16 .Holders of rec. Dec. 31
Detroit Motor Bus, corn. (qua:.)-.
Devoe dc Raynolds,Inc..com.A & B (qu.) 60o. Jan, I Dec. 22 to Jan. 2
134 Jan. 1 Dec. 22 to Jan. 2
First and second preferred
1
50.23c Jan
Diversified Trustees shares_
2
Deo, 31 Dee. 21 to Jan. 2
Dixon (Joseph) Crucible (guar.)
Dec. 31 Dec. 21 to Jan 2
2
Extra (100th anniversary dig.)
154 Jan. 15 Holders of rec. Doe. 270
Dodge Bros., pref.(guar.)
87540 Jan. 3 Holders of rec. Dec. 20a
Doehler Die-Casting, pref. (guar.)
$1.75 Jan. 3 Holders of rec. Dec. 20a
Preference stock (quax.)
200. Jan, 20 Holders of rec. Dec. 3Ia
Dome Mines, Ltd. (guar.)
Dominion Engineering Works,Ltd.(qu.) 50o. Jan. 1 Holders of roe. Dec. 31
Holders of rec. Dec. 15a
Dominion Glass, corn.& pref.((max.)... 13,4 Jan.
144 Dec. 3 Holders of rec. Doe. 16
Dominion Rubber. pref.(qua:.)
60c. Jan.
Holders of ree. Dec. 15
Dominion Stores (guar.)
$1.25 Jan.
Holders of ree. Dee. 15a
Dominion Textile, common (guar.)
154 Jan. 1 Holders of rec. Dec. 31a
Preferred (guar.)
Dec. 3 Holders of roe. Dec. 20a
4
Donner Steel, prior preference
Holders of rec. Dec. 15
Douglas(W. L.) Shoe. prof. tquar.).... 154 Jan.
250 Jan.
Dec. 22 to Jan. 12
Dow Drug (qua:.)
51 Jan.
Holders of reo. Doe. 3
Draper Corporation (guar.)
134 Jan.
Holders of rec. Doe. 19a
Dunham (Jas. II.) & Co.,corn.(guar.)
Holders of rec. Dec. 100
First preferred (guar.)
134 Jan.
154 Jan.
Holders of ree. Dee 19a
Second preferred (guar.)
Jan. 1 Holders of rec. Jan. la
Dunhill International, corn, (guar.)._ _ _
$1
Apr. 1 Holders of rec. Apr. la
Common (qua:.)Holders of rec. Doe. la
Do Pont de Nemours & Co., com.(extra) 354 Jan.
134 Jan. 2 Holders of rec. Jan. 100
Debenture stock (guar.)
13,4 Jan. I Holders of rec. Doe. 31
Eagle-Picher Lead, pref. (fluor.)
Doe. 28 to Jan. 2
Eagle Warehouse dr Storage (qua:).... 134 Jan.
254 Jan.
Dee. 28 to Jan. 2
Extra
Jan
6254c
1'2
Holders of rec. Dee. 200
(quer.)
common
Daniels.
&
Early
25e. Jan 1'2 Holders of rec. Dot. 20c
Common (extra)
21.75 Jan 1'2 Holders of rec. Dec. 206
Preferred (guar.)
Holders of ree. Dec. 31
Eastern Bankers Corp.. pref. (quef.),._ $1.75 Feb.
3754o. Jan.
Dec. 16 to Jan. 1
Eastern Rolling Mill(qua:.)
1254e. Jan.
Dec. 16 to Jan. 1
Extra
300. Feb.
Holders of ree. Dec. 3Ia
Eastern Bankers Corp., common
30c. Feb.
Holders of rec. Dec. 31a
Common (extra)
154 Feb.
Holders of rec. Dec. 31a
Preferred (guar.)
354 Jan. 3 Holders of rec. Dec. 31
Eastern Theatres, Ltd., preference
154 Jan.
Holders of rec. Dec. 22a
Eastern Steamship Lines, Prof.(qean)
8754c. Jan. 1 Holders of rec. Jan. 50
Second preferred (guar.)
Holders of rec. Nov. 30a
$1.25 Jan.
Eastman Kodak, common (qua:.)
Holders of rec. Nov. 30a
75c. Jan.
Common (extra)
134 Jan.
Holders of roe. Nov. 30a
Preferred (guar.)
Feb.
of rec. Jan. 15
•500.
(guar.)
*Holders
Spring
&
Axle
Eaton
154 Jan.
Holders of rec. Dec. 20
Edwards(Wm.) Co.,6% pref.(guar.)._
Eisenlohr (Otte)& Bros. CO.
154 Jan.
Holders of rec. Dec. 200
Preferred (extra)
Holders of rec. Dec. 22a
Electric Auto Lite, common (qua:.).... $1.50 Jan.
3605
THE CHRONICLE
DEC. 31 1927.]
134
154
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive:
Miscellaneous (Continued).
$1.25 Jan. 1 Holders of rec. Dec. 20a
Electric Controller & Mfg.(guar.)
Elec. SW.Battery, COM.& pf.(qua:.).. 51.25 Jan. 3 Holders of rec. Dec. 100
Dec. 31 Dec. 24 to Jan. 2
81
Electric Vacuum Cleaner (guar.)
Dec. 31 Dec. 24 to Jan. 2
51
Extra
1 Holders of rec. Jan. 14a
Feb.
6254
(guar.)
Watch
Nat.
Elgin
Jan. 20 Holders of rec. Jan. 4a
$1
Extra
Elliott-Fisher Co., corn.& tom.B (qu.)_ $1.50 Jan. 3 Holders of ree. Dec. 21a
$5.50 Jan. 3 Holders of ree. Dec. 210
Common & common B (extra)
144 Jan. 3 Holders of rec. Dec. 21a
Preferred (qua:.)
154 Jan. 1 Holders of rec. Doe. 20
Emerson Elec. Mfg., pref.(guar.)
254 Jan. 1 Holders of rec. Dec. 170
Endicott-Johnson Co., corn.(guar.)
154 Jan. 1 Holders of rec. Dec. 170
Preferred (guar.)
Equitable Office Bldg.,corn.(qua:.).... 51.75 Jan. 2 Holders of rec. Dec. 15a
144 Jan. 2 Holders of rec. Dec. 15a
Preferred (qua:.)
Erie Steam Shovel208sc. Jan. 1 Holders of tee. Dec. 156
Corn & corn Ws. of deposit
58,1c. Jan. 1 Holders of rec. Dec. 15a
Preferred ctfs. of deposit
154 Mar. 1 Holders of rec. Feb. 15a
Preferred (guar.)
European Bond & Mortgage Co.(guar.) 51.50 Jan. 14 Holders of rec. Dec. 314
154 Jan. 14 Holders of rec. Dec. 31a
Preferred (guar.)
Jan. 3 Holders of rec. Dec. 20a
Evans Autoloading, el. A & B (guar.)._ $1
*20e. Dec. 31 *Holders of rec. Dec. 24
Ewa Plantation (monthly)
.400. Dec. 31 *Holders of rec. Dec. 24
Extra
750. Dec. 31 Holders of rec. Dec. 120
Fairbanks, Morse & Co., corn. (guar.)._
20c. Jan. 2 Holders of rec. Dec. 22a
Fair (The). tom.(guar.)
20c Feb. 1 Holders of rec. Jan. 2Ia
Common (guar.)
1% Feb. 1 Holders of rec. Jan. 21a
Preferred (guar.)
Dec. 16
Fanny Farmer Candy Shops, pt. (1111.).. 60c. Jan. 1
Doe. 31 Holders of rec. Dec. 21
*2
Farr Alpaca (guar.)
December 16
50c. Jan. 2
Faultless Rubber corn. (guar.)
December 16
154 Jan. d2
Preferred (guar.)
Federal Bake Shops, Ine..1)(.(au.)(No.1) 81.75 Jan. 1 Dec. 8 to Jan. 2
20c. Jan. 2 Holders of reo. Dec. 17a
Federal Motor Truck (guar.)
2% Jan. 5 Holders of rec. Dec. 17a
Stock dividend
Dec. 31 Dec. 22 to Jan. 2
2
Federal Terra Colts .pref.(guar.)
Dec. 31 *Holders of rec. Dec. 19
$1.75
Co.,
Bait.
Deposit
(qua:.)...•
Fidelity &
Dec. 31 *Holders of rec. Dec. 19
•$1
Extra
160. Jan. 17 Holders of rec. Jan. 3a
134 Jan. 3 Dec. 22 to Jan. 2
Filing Equipment Bureau, pref.(qua:.) _
Finance Corp. of Amer.. ann.(auar.)--- 150. Jan. 16 Jan. 6 to Jan. 16
4354e. Jan. 16 Jan. 6 to Jan. 16
Preferred (guar.)
c. Jan. 3 Holders of rec. Doe. 200
Financial dr Indust. Sec., corn.(guar.)._
35e. Jan. 3 Holders of rec. Dec. 20a
Common (extra)
Jan. 3 Holders of rec. Dec. 20e
154
Preferred (guar.)
Financial Investing Co., coin.(qua:.)... 30e. Jan. 1 Holders of rec. Dec. 7
Jan. 20 Holders of rec. Jan. 10a
Firestone Tire dr Rubber. corn.(guar.)._ $2
Jan 3 Holders of rec. Dec. 20a
$2
Common (extra)
154 Jan, 1 Holders of rec. Jan. its
Six per cent preferred (qua:.)
Feb. 15 Holders of rec. Feb. 1
154
Seven per cent preferred
3754c Jan. 3 Holders of rec. Dee.d13a
First National Stores (guar.)
1% Jan. 1 Holders of rec. Dec. 1
Flatbush Investing Corp., tom.(No. 1)
354 Jan. 1 Holders of rec. Dot. 1
Preferred
The. Jan. 3 Holders of rec. Dec. 13a
Fleischmann Co.. common (guar.)
Jan. 3 Holders of rec. Dec. 13a
50c.
(extra)
Common
Jan. 1 Holders of rec. Dec. 15
Flour Mills of Amer., $8 pref. A (guar.) $2
Foote Bros. Gear & Mach.. corn.(qU.)-- 30c. Jan. 1 Dec. 21 to Dee. 30
154 Jan.
Dec. 21 to Doe. 30
Preferred (guar.)
Holders of rec. Dec. 15a
250. Jan.
Forhan Co., common (guar.)
Holders of rec. Dec. 15a
40c.
Jan.
Class A (guar.)
Holders of rec. Doe. 15a
25c. Jan.
Formica Insulation (guar.)
Holders of rec. Dee. 15a
10c. Jan.
Extra
Holders of rec. Dec. 21
144 Jan.
Foster(W. C.) Co., pref.(guar.)
Foster Wheeler Corp., Pref. (guar.).- I% Jan. 1 Holders of rec. Dec. 12
Fox Film Corp., clams A & B (quar.)--- $1 Jan. 16 Holders of rec. Dec. 300
Fraser Companies, Ltd., pref. (qua:.).. 154 Jan. 2 Holders of rec. Dec. 24a
Feb. 1 Holders of rec. Jan. 14a
$1
Freeport Texas Co.(qua:.)
75e. Feb. 1 Holders of rec. Jan. 146
Extra
8754c Jan. .1 Holders of ree. Dec. 17a
Fulton Sylphon,common (guar.)
51.50 Jan. 1 Holders of rec. Dec. 17a
Preferred (guar.)
Gabriel Snubber Mfg..(tom. A & B(qu.) 8754c Jan. 1 Holders of rec. Dec. 13a
Gemmer Manufacturing, class A (guar.) *75c. Jan. 3 *Holders of rec. Dee. 27
Jan. 1 Holders of rec. Dec. 15o
General Amer. Tank Car,corn.(guar.)._ $1
154 Jan. 1 Holders of rec. Dec. 15a
Preferred (guar.)
2 Holders of rec. Dec. 17
Jan.
51.25
(quay.)
A
class
General Baking,
Dec. 31 Holders of rec. Dec. 170
2
Preferred (guar.)
•46 2-3c Jan. 3 *Holders of rec. Dee. 23
General Bronze, pref.(guar.)
Jan. 1 Holders of rec. Dec. 246
General Cable Co., cl. A (qu.)(No. 1)._ 51
Preferred (for September quarter).... 154 Jan. 1 Holders of rec. Dec. 19
154 Jan. 1 Holders of rec. Dee. 27
Preferred (for December quarter)_ _ _
1
Jan. 27 Holders of rec. Dec. 21a
General Elm corn.(guar.)
15e. Jan. 27 Holders of rec. Dee. 210
Special stock (guar.)
General Fireproofing. corn. (qua:.)_.._ $1.75 Jan. 1 Dec. 21 to Dec. 31
154 Jan. 1 Dec. 21 to Dec. 31
Preferred (guar.)
General Laundry Machinery (quer.)_ - - •40c. Jan. 5 *Holders of rec. Dec. 27
52.50 Jan. 3 Holders of rec. Nov. 190
General Motors, common (extra)
154 Feb. 1 Holders of rec. Jan. 90
Six per cent preferred (guar.)
154 Feb. 1 Holders of rec. Jan. 94
Seven per cent preferred (guar.)
Six per cent debenture stock (qua:.).. 154 Feb. 1 Holders of rec. Jan. 90
General Outdoor Advertising, corn.(qu.) 50c. Jan. 18 Holders of rec. Jan. 50
General Railway Signal, corn.(guar.)... 51.25 Jan. 1 Holders of rec. Dec. 10a
154 Jan. 1 Holders of rec. Dee. 1011
Preferred (guar.)
750. Jan. 16 Holders of rec. Jan. 711
General Refractories (qua:.)
General Tire & Rubber, pref. (guar.) _ _ 1% Jan. 1 Holders of rec. Dec. 20o
Jan. 3 Holders of rec. Dec. 10a
2
(quer.)
pref.
Bumper.
&
Spring
G.
C.
154 Jan. 2 Holders of rec. Dee. 15a
Glidden Company, prior pref. (guar.)._
154 Jan. 3 Holders of rec. Dec. 20a
Globe-Wernicke, common (qua:.)
154 Jan. 16 Holders of rec. Dec. 31a
Preferred (guar.)
75c. Feb. 1 Holders of rec. Jan. 176
Gold Dust Corp.(guar.)
Goodrich (B. F.) Co., pref. (qua:.).... 154 Jan. 2 Holders of rec. Dec. 94
Goodyear Tire & Rubber, let pref.(au.). 1% Jon. 1 Holders of rec. Dec. la
154 Jan. 1 Holders of rec. Dee. la
Preferred (guar.)
Goodyear Tire & Rubber of Canada,
$1.25 Jan. d3 Holders of rec. Dec. 15a
COMMOL1 (guar.)
154 Jan. d3 Holders of rec. Dec. 15a
Preferred (guar.)
Gorton-Pew Fisheries corn.(qu)(No. 1) •75c. Jan. 3 *Holders of rec. Dec. 20
Goesard(H. W.)Co.,cam.(monthly)._ 331-Sc Jan. 2 Holders of rec. Dec. 211
Gotham Silk Hosiery, corn. voting (gu.). 62340 Dec. 31 Holders of rec. Dec. 154
8254c Dec. 31 Holders of rec. Dec. 15a
Common non-voting (guar.)
Feb. 15 Holders of rec. Feb. its
/4
Common (extra)
1% Feb. 1 Holders of rect. Jan. 16a
Preferred (guar.)
Jan. 2 Holders of rec. Dec. 20
Goulds Pumps, Inc.,common (guar.)._ 2
154 Jan. 2 Holders of rec. Dec. 20
Preferred (guar.)
25c. Jan. 3 Holders of rec. Dec. 154
Grant (W. T.) Co., corn. (guar.)
Doe, 31 Holders of rec. Dec. 15
2
Grasselli Chemical, corn.(guar.)
154 Dec. 31 Holders of rec. Dec. 15
Preferred (guar.)
Jan. 5 Holders of ree. Dec. 23
Great Lakes Dredge & Dock (extra)._ 8
51.25 Jan. dl Holders of rec. Dec.d22a
Great Lakes Steamship (guar.)
Quarterly
$1.25 Apr. dl Holders of rec. hiar.d224
1% Dec. 31 Holders of rec. Deo. 150
Great Lakes Towing, corn. (guar.)
154 Jan. 1 Holders of rec. Dec. 15a
Preferred (guar.)
Gt.Nor.Bond&Share Corp., com.(extra) 50c. Jan, 1 Holders of rec. Dec. 16
70o. Jan. 2 Holders of rec. Dec. 15a
Great Western Sugar, corn.(guar.)
154 Jan, 2 Holders of rec. Dec. 15a
Preferred (guar.)
Greenfield Tap & Die Corp.,6% pf.(qu.) 1% Jan. 2 Holders of rec. Dee. 15
2
Jan. 2 Holders of roe. Dee. 15
8% preferred (guar.)
Greif Bros. Cooperage. class A 'qua:.).. 80e. Dec. 81 Holders of rec. Dec. 15
•50e.
Gruen Watch (guar.)
2
Jan. 3 Holders of rec. Doe. 15a
Guantanamo Sugar, prof. (guar.)
$20 Jan. 2 Holders of rec. Dec. lb
Guenther Publishing Corp.,corn.
3754c Jan. 2 Dec. 21 to Dec. 26
Gulf Oil Corp.(guar.)
1% Jan. 3 Holders of rec. Dee. 180
Gulf States Steel Jet pref. (guar.)
Gurd (Charles) & Co., Ltd., common... 50e. Jan. 2 Holders of rec. Dec. 15
134 Jan. 2 Holders of rec. Dec. 15
Preferred (guar.)
154 Jan. 1 Holders of rec. Dec. 21
Haloes Corp., pref. (guar.)
25c. Jan. 2 Holders of rec. Dec. 23
pref
Hamilton-Brown Shoe,
(mthly.)- 154 Jan. 3 Holders of rec. Dee. 20a
Harnmermill Paper, pref.(guar.)
Hanes (P. H.) Knitting, pref. (quer.)__ 1% Jan. 2 Holders of rec. Dec. 20
250. Jan. 3 Holders of rec. Dec. 24a
Harbauer Co.. corn. (guar.)
Harbison-Walker Refract. pref. (guar.). 154 Jan. 20 Holders of rec. Jan. 10a
Harris, Seybold, Potter Co.,corn.stk., di vidend omitte d.
Feb. 1 *Holders of rec. Jan. 20
Preferred (guar.)
3606
THE CHRONICLE
Per
When
Cent. Payable.
EvoL. 125.
Books Closed.
Per
Books Closed.
When
Days Inclusive.
Name of Company.
Cent. Payable.
Days Inclusive.
Miscellaneous (Continued).
Miscellaneous (Continued).
Hathaway Baking,class A (quar.)
$2
Jan. 17 Holders of rec. Jan. 3a La Salle Extension University. pref.(qu.) 134 Jan. 2 Holders of rec. Dec. 22
Hazel-Atlas Glass (qua?.)
50c. Jan. 3 Holders of rec. Dec. 17
Laurentide Co. (qua?.)
134 Jan. 3 Holders of rec. Dec. 15
Extra
1234a. Jan. 3 Holders of rue. Dec. 17
Lawyers Mortgage Co. (quar.)
334 Dec. 31 Holders of rec. Dec. 22
Heath (D. C.)& Co., ref.(quar.)
1( Dec. 31 Dec. d28 to Jan. 2
Lawyers Title & Guaranty (qual.)
233 Jan. 3 Holders of rec. Dec. 206
Helme (George W.)
corn.(guar.)... 31 Jan. 3 Holders of rec. Dec. 12a Lawyers Westchester Mtge.& Title
Jan. 3 Holders of rec. Dec. 17
(qu.) 2
Common (extra)
1'3 Jan. 3 Holders of rec. Dec. 12a
Extra
2
Jan. 3 Holders of rec. Dec. 17
Preferred (qua?.)
134 Jan. 3 Holders of rec. Dec. 12a Lefcourt Realty, pref.(qu.)(No. 1)
75c. Jan. 15 Holders of rec. Jan. 5
Hibernia Securities. pref.(qua?.)
131 Jan. 1 Holders of rec. Dec. 8
Lehigh Valley Coal Co
31.25 Feb. 1 Jan. 15 to
Jan. 31
Higbee Co., let preferred (qua?.)
*131 Feb. 1 *Holders of rec. Jan. 21
Lehigh Valley Coal Sales (guar.)
Jan. 3 Holders of rec. Dec. 10
31
Second preferred (quar.)
*2
Mar. 1 *Holders of rec. Feb. 18
Lemur Co., common
25c.
Feb.
1
Holders
Jan.
10
of
rec.
Hill,Joiner & Co.,common
Jan. 1 Holders of rec. Dec. 31a
$3
Preferred (quar.)
E2
Jan. I Holders of rec. Dec. 22
Preferred
334 Jan. 1 Holders of rec. Dec. 31a Leonard, Fitzpatrick & Mueller Stores.
Holland Furnace, common (qual.)
46234e Jan. 1 Holders of rec. Dec. 15
Preferred (quar.)
2
Jan. 1 Dec. 23 to Dec. 31
Common (extra)
250. Jan. 1 Holders of rec. Dec. 15a Libby, McNeill dr Libby, pref
$3.50 Jan. 1 Dec. 17 to Jan. 12
Preferred
43.50 Jan. 1 Holders of rec. Dec. 20d Liberty Baking Corp., pref. (quer.).
Jan. 3 Holders of rec. Dec. 23
134
Holland, Land Co.,(qua?.)
*31
Jan. 1 *Holders of rec. Dec. 20
Life Savers (quar.)
40c. Jan. 2 Holders of rec. Dec. 14a
Extra
*41
Jan. 1 *Holders of rec. Dec. 20
Liggett & Myers Tobacco. pref.(qu.)..... 134 Jan. 2 Holders of rec. Dec. 12a
Hollinger Cons Gold Min.& Mill
100. Dec. 31 Holders of rec. Dec. 24
Lion 011 Refining. common (quar.)
50o. Jan. 27 Holders of rec. Dec. 30a
Holly 011(quar.)
250. Dec. 31 Holders of rec. Dec. 15
Liquid Carbonic Corp.(qua?.)
90o. Feb. 1 Holders of reo. Jan. 200
Holmes(D.H.)Co., New Oil(guar.)
334 Jan. 2 Holders of rec. Dec. 26
Loew's Incorporated (qua?.)
50o. Dec. 31 Holders of rec. Dec. 20a
Holt. Renfrew & Co..Ltd., pref.(qu.)
IM Jan. 2 Holders of rec. Dec. 29
Extra
Dec. 31 Holders of rec. Dec. 200
31
Hood Rubber, common (quar.)
Deo. 31 Dec. 21 to Jan. 2
$1
Loew's London Theatres, corn
3
Jan. 14 Holders of rec. Dec. 30
Hooven, Owens. Rentschler Co..Pf.(311.) 134 Dec. 31 Dec. 2d22 to Dec. 31
Preference
334
Jan.
14 Holders of rec. Dec. 30
Horn & Hardart Baking (quar.)
$1.25 Jan. 1 Dec. 22 to Dec. 31
Loew's (Marcus) Theatres. Ltd., pref._
334 Jan. 14 Holders of rec. Dec. 30
Extra
50c. Jan. 1 Dec. 22 to Dec. 31
Lone Star Gas Corp. (quar.)
50c. Dec. 31 Holders of rec. Dec. 20a
Household Products, extra
500. Jan. 3 Holders of rec. Dec. 154 Long Island Safe Deposit
Jan. 1 Holders of rec. Dec. 24
4
Howe Sound Co.(quar.)
$1
Jan. 16 Holders of rec. Dec. 310 Loose Wiles Biscuit, let pref. (quar.)_
134 Jan. 1 Holders of rec. Dec. 176
Hudson Motor Car (quar.)
$1.25 Jan. 3 Holders of rec. Dec. 12a Lord & Taylor,common (qua?.)
Jan. 3 Holders of rec. Dec. 170
231
Humble Oil & Refining (quar.)
300. Jan. 1 Dec. 13 to Dec. 31
Second preferred (quar.)
2
Feb. 1 Holders of rec. Jan. 170
20c. Jan. 1 Dec 13 to Dec. 31
Extra
Lorillard (P.) Co., pref.(qua?.)
134 Jan. 2 Holders of rec. Dec. I56
Hussmann (Harry L.) ref., corn (qua?.). 8234c. Jan. 2 Holders of rec. Dec. 20
Ludlum Steel (qua?.)
50c. Jan, 3 Holders of rec. Dec. 20a
Common (extra)
6234c. Jan. 2 Holders of rec. Dec. 20
MacAndrews & Forbes Co.,corn.(qu.)_ 65e. Jan. 14 Holders of rec. Dec. 31a
Huyler's of Delaware. Pref. (nuftr.)---131 Jan. 1 Holders of rec. Dec. 20,3
Common (extra)
90c. Jan. 14 Holders of rec. Dec. 31a
Hydraulic Press Brick pref.(qua?.)
134 Jan. 2 Holders of rec. Dec. 20
Preferred (quar.)
134 Jan. 14 Holders of rec. Dec. 311
Minois Brick (quar.)
600. Jan. 14 Jan. 4 to Jan. 15
Mack Trucks, common (qua?.)
31.50 Dec. 31 Holders of reo. Dec. 184
400. Jan. 14 Jan. 4 to Jan. 15
Extra
Mack Trucks, Inc., 1st & 2d pref.(qu.). 134 Deo. 31 Called for redemption.
60c. Apr. 14 Apr. 4 to Apr. 18
Quarterly
Macy (R. H.) & Co., corn. (quar.)
$1.25 Feb. 15 Holders of rec. Jan. 28a
800. July 14 July 4 to July 15
Quarterly
Common (payable in common stock)
15
Feb. 15 Holders of rec. Jan. 284
800. Oct. 15 Oct. 4 to Oct. 15
Quarterly
Madison Square Garden (qual.)
3731c Jan. III Holders of rec. Jan. 134
75c. Jan. 16 Holders of rec. Dec. 30
Incorporated Investors (quar.)
Magma Copper Co. (qua?.)
750. Jan. 17 Holders of rec. Dec. 30a
a
Jan. 16 Holders of rec. Dec. 30
Stock dividend
Malson Blanche, New Orleans. pref.... 334 Jan. 2 Holders of rec. Dec. 30
a
Stock dividend
July 16 Holders of rec. June 29a
Mallinson(H. R.) Co., pref.(quer.).131 Jan. 2 Holders of rec. Deo. 214
Independent 011 dr Gas (guar.)
250. Jan. 30 Holders of rec. Jan. 16a Mandel Bros., Inc.(quar.)
6234c. Jan. 18 Holders of rec. Dec. 311
(qual.)
Independent Pneumatis Tool
Jan. 3 Dec.d2I to Jan. 2
Manhattan Electrical Supply (quar.)
Jan. 3 Holders of reo. Dec. 214
$1.25
Indiana Pipe Liae (qua?.)
$1 Feb. 15 Holders of rec. Jan. 20
Manhattan Shirt. pref. (qual.)
1.34 Jan. 3 Holders of rec. Dec. He
$1 Feb. 15 Holders of rec. Jan. 20
Extra
Manning. Maxwell & Moore, Inc.(qu.)_
134
Jan.
3 Holders of rec. Dec. 31
Indian Motocycle, pref.(guar.)
131 Jan. 3 Dec. 24 to Jan. 2
Maple Leaf Milling, pref. (qua?.)
131 Jan. 18 Holders of rec. Jan. 36
India Tire dr Rubber. pref.(guar.)
134 Jan. 1 Holders of rec. Dec. 20a
Mersey Oil Corp.(qua?.)
50a. Jan. 10 Holders of reo. Dec. 20
Industrial Acceptance corp.. com.(qa.)- 50c. Jan. 3 Holders of rec. Dec. 16
Marion Steam Shovel, corn. (qua?.)..,,,
75o. Jan, 1 Holders of rec. Deo. 214
134 Jan
First preferred (qua?.)
3 Holders of rec. Dec. 16
Preferred (quar.)
41.75 Jan. 1 Holders of rec. Dec. 214
2
Second preferred (qua?.)
Jan. 3 Holders of rec. Dec. 16
Marlin-Rockwell Corp., com.(qual.)...
0. Dec. 31 Holders of rec. Dec. 220
Second preferred (qua?.)
33 Jan. 3 Holders of rec. Dec. 16
Common (extra)
250. Dec. 31 Holders of rec. Dec. 220
Industrial Rediscouet Corp., pref.(qu.)_
2
Jan. 15 Holders of rec. Dec. 30
Marvel Carburetor (quar.)
800. Jan. 3 Holders of rec. Dec. lisa
Industries Development Corp., corn_
32
Dec. 31 Dec. 28 to Jan. 2
Extra
200. Jan. 3 Holders of rec. Dec. 150
2
Preferred (quar.)
Dec. 31 Dec. 28 to Jan. 2
Mary Lee Candy Shops, Inc.. cl.A(qu.). 8734c Jan. a Holders of rec. Dec. 27a
Ingersoll-Rand Co., preferred
3
Jan. 3 Holders of rec. Dec. 12a
Class B (quar.)
25c. Jan. d3 Holders of rec. Deo. 27a
Inland Steel, pref.(qua?.)
134 Jan. 2 Holders of rec. Dec. 15a
Mathieson Alkali Works, corn.(guar.).- 31
Jan, 3 Holders of rec. Dec. 1811
Inland Wire & Cable (guar.)
50c. Jan. 2 Holders of rec. Dec.d19a
Preferred (quar.)
134 Jan. 3 Holders of rec. Dec. 160
Insurance Secur. Co.(New On.)
334 Jan. 2 Holders of rec Nov.23
May Drug Stores (qua?.)
3734c.
Jan.
2 Holders of rec. Dec. 10a
Intercontinental Invest. Corp.. Of.(qu.) 134 Jan. 1 Holders of rec. Dec. 150
Common (payable in corn.
110
Jan, 1 Holders of rec. Deo. 15
Intercontinental Rubber (quar.)
25c. Dec. 31 Holders of rec. Dec. 24a McCord Manufacturing. pref.stock)._ - •81.75 Jan.
2 *Holders of rec. Dec. 20
(qua?.)
Interlake Steamship (quar.)
$1.50 Dec. 31 Dec. 16 to Jan. 2
Debenture stock (quar.)
*50o. Jan. 2 *Holders of rec. Dec. 20
Extra
32
Dec. 31 Deo. 18 to Jan. 2
McCord Radiator Mfg., class A (qua?.). 750. Jan. 2 Dec. 25 to Jan. 1
$1.50 Apr. 1 Mar. 18 to Apr. 1
Quarterly
McLellan Stores corn. A and B (qual.). 25c. Jan. 2 Holders of rec. Dec. 20
Inter. Bond & Share Corp.. pref. A
334 Jan. 3 Holders of rec. Dec. 23
McQuay Norris Mfg.(qual.)
40c. Jan, 3 Holders of rec. Dec. 23a
Internat. Business Machines (quar.)_
81.25 Jan. 10 Holders of rec. Dec. 210
Extra
10c. Jan, 3 Holders of rec. Dec. 23a
Int. Buttonhole Sew. Mach.(qual.).. 200. Jan. 3 Holders of rec. Dec. 15a Mead, Johnson & Co., corn.(quer.).
75o. Jan. 1 Holders of rec. Dec. 15
International Cement, corn. (guar.)._ 11
Dec. 31 Holders of rec. Dec. 120 Medart(Fred) Co., pref.(qua?.)
Jan, 2 Holders of rec. Dec. 20
2
Preferred
134 Dec. 31 Holders of rec. Dec. 12a
Merch. & Miners Transportation (qu.). - 6231e. Dec. 31 Holders of rec. Dec. 16a
Internat. Combustion Eng'ng, pf.(qu.) 41.75 Jan. 3 Holders of rec. Dec. 200 Merchants & Mfrs. Sane.. prior pt.
(qu.) $1.75 Jan, 16 Holders of rec. Jan. 34
Internat. Equities Corp., clam A (qual.) 8734c Jan. 1 Holders of rec. Dec. 20
Participating preferred (qual.)
3730 Jan. 3 Holders of rec. Dec. 15a
International Harvester, corn. (guar.).- 134 Jan. 15 Holders of rec. Dec. 24a
Merck Corporation, pref. (qual.)
$I Jan. 3 Holders of rec. Dec. 17
Common (payable in corn. stock)
12 Jan. 25 Holders of rec. Dec. 24a
Mergenthaler Linotype (qua?.)
31.25 Dec. 31 Holders of rec. Dec. 34
International Match Corp., common... 80c. Jan. 18 Holders of rec. Dec. 24s
Extra
25e. Dec. 31 Holders of rec. Dec. 34
Participating preferred (qual.)
800. Jan. 16 Holders of rec. Dec. 24s Merrimac Chemical (qua?.)
$1.25 Dec. 31 Holders of reo. Dec. 10a
International Nickel, corn. (guar.)
500. Dec. 31 Holders of rec. Dec. 15a
Extra
Dec. 31 Holders of rec. Dec. 100
31
Internat. Paper, 7% pref. (quar.)
134 Jan. 113 Holders of rec. Dec. 29a Metropolitan Filling Stations, corn. dt cla as A- No ac I on taken on Jan. div.
6% preferred (qua?.)
134 Ian. 18 Holders of rec. Dec. 29a
Preferred (quar.)
Holders of rec. Dec. 15
Jan.
2
Internat. Projector Corp., corn. (tiutir.)_ 250. Jan. 1 Holders of rec. Dec. 21
Metropolitan Ice.Allotment ctf.
. for common
25c. Ian. 1 Holders of rec. Dec. 21
preferred (quar.)
Holders of rec. Dec. 15a
Jan.
d.
131
Preferred (quar.)
$1.75 Jan. 1 Holders of rec. Deo. 21
d Preferred (participating dividend). _
10c Jan. d Holders of rec. Dec. 15a
Allotment ctf. for preferred
31.75 Jan. 1 Holders of rec. Dec. 21
d
(participating
Preferred
10c
July
52
Holders
of rec. June 150
dividend).
International Salt (qua?.)
131 Jan. 2 Holders of rec. Dec. 15o
Metropolitan Paving Brick. pref.(qual.) 134 Jan.
Deo. 16 to Deo. 31
Internat. Shoe, new corn. (qu.)(No. 1) 500. fan. 2 Holders of rec. Dec. 15
Mexican Petroleum. corn. (quar.)
33
Jan.
of
2
rec. Dec. 310
Holders
Preferred(monthly)
500. fan. 2 Holders of rec. Dec. 15
Preferred (quar.)
Jan. 2 Holders of rec. Dec. 316
32
Internat. Silver. pref.(quar.)
131 Jan. 1 Holders of rue. Dec. 12a Midland Steel Products. corn. (quar.)_. $1
Holders of reo. Dec. 226
Jan.
Interstate Iron & Steel. rommon (guar.) $1
Jan. 16 Holders of rec. Jan 9
Common (extra participating)
48c. Jan.
Holders of rea. Dec. 220
Intertype Corporation, 1st pref.(qual.)
2
Jan. 3 Holders of rec. Dec. 15
Preferred (guar.)
Holders of rec. Dec. 226
Jan.
82
Second preferred
3
Jan. 3 Holders of rec. Dec. 15
Preferred (extra participating)
*Holders of rec. Dec. 226
Jan.
Si
Iron Products Corp ,common
$1
Jan. 2 Holders of rec. Dec. 15a
Midvale Company (quar.)
500. Jan.
Holders
of MO. Dec. 154
Island Creek Coal. common (qua!).... 31
Jan. 2 Holders of rec. Dec. 22a Miller Rubber,common-Dividend omit ted
Preferred (quar.)
31.50 Jan. 2 Holders of rec. Dec. 22a
Preferred (quar.)
2
Holders of rec. Feb. 10
Mar.
Jewel Tea. pref. (quar.)
134 Jan. 3 *Holders of rec. Dec. 15a
Mining Corp. of Canada
to Jan. 24
1234c Jan. 2 Jan. 11
Johns-Manville Corp., corn. (quar.)_
75e.. Jan. 16 Holders of rec. Jan. 30 Missouri-Illinois Stores (quar.)
250. Jan,
Holders of rec. Dec. 20
Preferred (guar.)
131 Jan. 2 Holders of reo. Dec. 150 Mitchell (J. 8.) dr Co., Ltd., pref. (qu.) 134 Jan.
rec. Dec. 21
Holders
of
Joint Investors. Inc. prior pref
33 Jan. 3 Holders of rec. Dec. 17
Monarch Mills
*Holders of rec. Dec. 28
Jan.
*4
Jones& Laughlin Steel, pref.(quar.)- 131 Jan. 2 Holders of rec. Dec. 15a Monarch Mtge. dr investment, com
Sc. Jan. 1
Holders of rec. Dec. 31
Kalfbneisch Co., Pref. (num.)
134 Dec. 31 Dec. 24 to Jan. 1
Preferred
Jan. 1
4
Holders of rec. Dec. 31
Kaufman (Chas. A)Co.,N. Orleans(qu.) 234 Jan. 2 Holders of rec. Dec. 26
Montgomery Ward & Co., cf. A (quar.) 81.75 Jan.
Holders of rec. Dec. 12
Kaufmann Dept. Stores, pref.(quar.)
131 Jan. 2 Holders of rec. Dec. 20
Montreal Finance Corp., Ltd.. Pref--- 4
Dec. 3 Holders of rec. Dec. 15
Kaynee Company,corn.(qua?.)
500. Jan. 1 Holders of rec. Deo. 20a Morgan Lithograph Co.. corn. (quar,)
$1.25 Ian.
Holders of rec. Dec. 204
1234c. Jan. 1 Holders of rec. Dec. 206 Mortgage-Bond Co. (qual.)
Common (extra)
Dec. 3 Holders of roe. Deo. 270
2
Common (extra)
12)4e Apr. 1 Holders of rec. Mar. 200 Mortgage Corp. of Rhode Island. pref._
Holders of rec. Dec. 20
334 Jan.
1214c July 1 Holders of rec. June 20. Mother Lode Coalition Mines
Commor (extra)
250. Dec. 3 Holders of rec. Dec. 164
134 Jan. 1 Holders of rec. Dec. 20'
Preferred (quar.)
Motion Picture Capital. pref.(quar.)-- 2
Jan. 1
Holders of rec. Jan. 1
Kayser (Julius) dr Co.. corn.(qual.)___ - $1
Feb. 1 Holders of rec. Jan. 16a
Moto Meter Co., Inc.. class A (qual.)... 900. Jan. • Holders of rec. Dec. 140
Kellogg Switchboard dr Supp.,corn (qu.)- 3234c Jan. 31 Holders of rec. Jan. 7a Motor Car Security Co., common
*350. Jan. 1 *Holders of rec. Deo. 9
Preferred (quar.)
134 Jan. 31 Holders of rec. Jan. 7a
Preferred
*70c. Jan. 1 *Holders of rect. Dec. 9
Kelley Island Lime & Transp.(qua?.) - 8234c. Jan. 1 Dec. 23 to Jan. 2
Mountain dr Gulf Oil(qua?.)
2c. Jan. 1
Holders of rec. Dec. 314
Kelsey-Hayes Wheel, corn. (qual.)
500. Jan. 3 Holders of rec. Dec. 21a
Extra
lc. Jan. 1 Holders of rec. Dec. 3I6
.1% Feb. I Holders of rec.
Preferred (qua?.)
Jan. 20a Mountain Producers Corp. Mara
65c. Jan.
Holders of Teo. Dec. 154
Kennecott Copper (qua?.)
81.25 Jan. 3 Holders of rec. Dec. 20 Mount Vernon-Woodberry Mills. Inc., pf 234 Dec. 3 Holders of reo. Dec. 176
Kentucky Cash Credit Co.
?Murphy (G. C.) Co., pref. (quar.)
2
Jan,
Dec. 21 to Jan. 1
Common (1-10 share common stock) _ (f) Jan. 25 Holders of rec. Jan. 16
Murray Ohio Mfg.,corn.(qu.)(No. 1)
250. Jan.
Holders of rec. Dec. 200
Common (quar.)
150. Mar.24 Holders of rec. Mar. 12
2
Preferred (qua?.)
Jan.
Holders of rec. Dec. 206
Preferred (quar.)
160. Dec. 24 Holders of rec. Dec. 12
Participating pref. (qua?.)
100. Jan.
Holders of rec. Dec. 206
Preferred (extra)
160. Dec. 24 Holders of rec. Dec. 12
Nashua Manufacturing, Pref. (qua?.)
134 Jan,
Holders of rec. Dec. 234
Preferred (qua?.)
15o. Mar.24 Holders of rec. Mar. 12
National American Co. (qua?.)
*50o. Feb.
*Holders of rec. Jan. 15
15e. Mar.24 Holders of rec. Mar. 12
Preferred (extra)
*50o. May
*Holders of rec. Apr. 15
Quarterly
Kentucky Rock Asphalt(No. 1)
250. Jan. 1 Dec. 24 to Jan. I
*50o. Aug.
Quarterly
*Holders of rec. July 15
Keystone Steel & Wire, corn. (quar.)__ *31
Jan. 15 Holders of rec. Jan. 5
Quarterly
*50e. Nov.
*Holders of res. Oct. 15
Preferred (quar.)
13( an. 15 Holders of rec. Jan. 5
Vational Biscuit, common (quar.)
$1.50 Jan. 1
Holders of rec. Dec. 310
Keystone Watch Case Corp., pref.(qual. 134 Feb. 1 Holders of rec. Jan. 190 National Breweries. corn.(qua?.)
Jan.
$1
Holders of rec. Dec. 15
King Philip Mills(guar.)
134 Jan. 3 Holders of rec. Dec. 20a
Preferred (quar.)
134 Jan.
Holders of rec. Dec. 15
Jan.
Kirshbaum (A. B.) Co., Pref.(qual.)..
3
131
Holders of rec. Dec. 20
National Candy, common (quar.)
4334 c. Jan.
Deo. 13 to Deo. 19
Knott Corporation (guar.)(No. 1)
600. Jan. 15 Holders of rec. Jan. 5
First and second preferred (quer.).
IM Jan.
Dec. 13 to Dec. 19
Knox Hat,Inc., corn., CMS A
Jan. 3 Holders of rec. Nov. 10
435
National Carbon. pref. (quar.)
2
Feb.
Holders of rec. Jan. 20.1
Preferred (qua?.)
154 Jan. 1 Holders of rec. Dec. 15
National Cash Credit Assn., corn.(qu.). 15o. Jan.
Holders of rec. Dec. 12
Kraft Cheese (quar.)
3731c Jan. 1 Holders of rec. Dec. 10a
Common (1-20 share common stock)
(1) Jan.
Holders of rec. Dec. 12
Stock dividend
el 31 Jan. 1 Holders of rec. Dec. 100
Preferred (quar.)
15c. Jan.
Holders of rec. Dec. 12
Kresge (S. S.) Co., cons.(guar.)
30o. Deo. 31 Holders of rec. Dec. 106
Preferred (extra)
15e. Jan.
Holders of rec. Deo. 12
134 Dec. 31 Holders of reo. Dec. 106
Preferred (Qum.)
Pref. (1-20 share common stock)
Jan.
(1)
Holders of rec. Dec. 12
Jan. 3 Holders of rec. Deo. 246 National Cash Register, corn. A (qua?.). 750. Jan. 1 Holders of ree. Deo. 306
Kuppenheimer (B.) & Co.. common__ $1
Laboratory Products, common (quar.)
30c. Dec. 31 Holders of rec. Dec. 19a
Common class B (annual)
Jan.
33
Holders of rec. Dec. 113a
Laclede-Christy Clay Prod.. pref. (qu.)_
134 Jan. 2 Holders of rec. Dec. 21
National Casket. pref. (quar.)
134 Dec. 31 Holders of rec. Dec. 15a
Deo. 31 Holders of rec. Dec. 27a
Laclede Steel (quar.)
2
National Credit Corp.(Balt.),com.(qu.) 25c. Jan, 1 Holders of rec. Dec. 15
Laconia Car. 1st pref.(quar.)
31.75 Jan. 3 Holders of rec. Deo. 254
Common (quar.)
25c. Jan. 1 Holders of roc. Dec. 15
Lake Erie Bolt dr Nut (quar.)
250. Deo. 31 Holders of rec. Dee. 216
Preferred (quar.)
234 Jan. 1 Holders of rec. Deo. 15
Lambeit Co.. corn. (qua?.)
31.25 Jan. 1 Holders of rec. Dec. 120 National Dairy Products, corn. (qua?.). 75c. Jan, 3 Holders of rec. Dec. 194
Sanders, Frary & Clark (qua?.)
*75c. Jan.
Preferred class A & B (quar.)
134 Jan. 3 Holders of rec. Dec. 1£10
Jan. __
Extra
*41
National Enamel & Stpg., oref. (qu.)...._
134 Dec. 31 Holders of rec. Dec. 154
Name of Company.
do..
DEC. 311927.]
Name of Company.
THE CHRONICLE
When
Per
Cent. Payable
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
National Fuel Gam (quar.)
25c. Jan. 16 Holders of rec. Dec. ha
3
Jan. 1 Dec. 22 to Jan. 2
National Grocer, pref
$1.25 Dec. 31 Holders of rec. Dec. 160
National Lead,common (guar.)
131 Feb. 1 Holders of rec. Jan. 13a
Preferred B (guar.)
National Licorice, common
234 Jan. 10 Holders of rec. Dec. 15
134 Dec. 31 Holders of rec. Dec. 15
Preferred (guar.)
Nat. Manufac. & Stores Cori).•144 Jan. 1 *Holders of rec. Dec. 15
Cony. 1st pref. dt class A (quar.)
Jan. 2 Holders of rec. Dec. 15
National Refining, pref.(guar.)
2
National Standard Co.(guar.)
750. Jan. 1 Holders of rec. Dec. 20a
National Sugar Refining (quar.)
1% Jan. 2 Holders of rec. Dec. 5
Preferred (guar.)
$1.75 Dec. 31 Holders of rec. Dec. 21a
National Surety (guar.) ,
234 Jan. 3 Holders of rec. Dec. I6a
National Tea, common (qtfar.)
Jan. 1 Holders of rec. Dec. 140
$1
National Title Guaranty (guar.)
*81.50
Extra
411
Naumkeag Steam Cotton Co.(quar.)--- 3
Jan. 3 Holders of rec. Dec. 23a
Nelson (Herman) Corp., COM. (quar.)
30e. Dec. 31 Holders of rec. Dec. 15
Stock dividend
"e2
Jan. 16 *Holders of rec. Jan. 3
Stock dividend
*el
Apr. 2 *Holders of rec. Mar.16
Stock dividend
July 2 *Holders of rec. June 19
•eI
Block dividend
Oct 1 *Holders of rec. Sept.I8
an
'Saved& Cense!. Copper Co.(IBM
$1 341 Doc.31 Holders of rec. Dec. 160
!few Bradford 011 (guar.)
12114o Jan. 16 Holders of rec. Dec. 31a
New England Equity Corp..con).(No.1) *50c. Feb. I *Holders of rec. Jan. 16
Preferred (guar.)
2
Jan. 3 Holders of rec. Dec. 15
New England Fuel 011 (guar.)
25e. Jan. 3 Holders of rec. Dec. 20
Newmont Mining Corp
$1
Jan. 17 Holders of rec. Jan. 3
Stock dividend
c5
Jan. 17 Holders of rec. Jan. 3
New Orleans Cold Storage & Warehouse 5
Jan. 3 Holders of rec. Dec. 15
Newton Steel, corn. (guar.)
50e. Dec. 31 *Holders of roe. Dec. 20
Preferred (quar.)
•144 Dec. 31 "Holders of roe. Dec. 20
New York Air Brake (guar.)
75e. Feb. 1 Holders of roe. Jan. 5a
New York Dock. pref. (guar.)
234 Jan. 16 Holders of rec. Jan. 6a
N. Y. State Realty & Tern.(annual).. _ 6
Jan. 3 Holders of rec. Dec. 27a
New York Title & Mtge.(guar.)
5
Jan. 3 Holders of rec. Dec. 22
Extra
2
Jan. 3 Holders of rec. Dee. 22
New York Transportation (guar.)
50e. Jan. 16 Holders of rec. Jan 3a
Nichols Copper Co.. pref. (guar.)
131 Jan. 3 Holders of rec. Dee. 20
Nipissing Mines Co., Ltd.(quar.)
734e. Jan. 20 Holders of roe. Dec. 31a
North American Car Corp.(quar.)
62;0. Jan
1 Holders of rec. Dee. 23a
Northern Pipe Line
Jan. 1 Holders of rec. Dec. 9
Extra
2
Jan. 1 Holders of rec. Dec. 9
Northwestern Provision. pref. (quar.)
fl' Jan, 2 Holders of rec. Dec. 10
Northwestern Yeast (extra)
3
Dec. 31 Dec. 25 to Jan 2
Normally Co
25c. Dec. 31 Holders of rec. Dec. 24a
Novadel Process Co., common (guar.) _ _ 25e. Jan. 3 Dec. 21 to
Jan. 2
Preferred (guar.)
500. Jan, 3 Dec. 21 to
Jan. 2
Ogilvie Flour Mills. corn. (guar.)
$1.25 Jan. 3 Holders of rec. Dec. 21
Ohio Brass, class A & B (guar.)
$1.25 Jan. 15 *Holders of rec. Dec. 31
Class A & B (pay. In class B stock)_ e20
Holders of rec. Dec. 27
Preferred (guar.)
1K Jan. 1 Holders of rec. Dec. 31
Ohio Leather, pref.(guar.)
"2
Jan.
*Holders of rec. Dec. 20
Prof. (acct. accumulated dividends).- .53
Jan.
*Holders of rec. Dec. 20
Ohio Seamless Tube. pref.(guar.)
1K Jan
Dec. 16 to Jan. 1
011 Well Supply corn.(quar.)
50e. Jan
Holders of rec. Dec. 12a
Omnibus Corp., pref.(guar.)
2
Holders of rec. Dec. 164
Jan.
OrPheum Circuit, corn.(monthly)
16 2-3c Jan.
Holders of rec. Dec. 20a
Preferred (quar.)
2
Jan
Holders of roe. Dec. 17a
Oswego Rayon Corp., pref. (guar.)_ _
1K Jan.
Holders of rec. Dec. 15
Otis Elevator, corn. (quar.)
$1.50 Jan. 1 Holders of rec. Dec. 31a
Preferred (guar.)
14 Jan. 1 Holders of rec. Dec. 31a
Overman Cushion Tire, corn. A & B (qu.) 37)4c. Jan.
Holders of rec. Dec. 23
Preferred (guar.)
Holders of rec. Dec. 23
U' Jan,
Ovington Bros. Co., tootle. pref
40o. Jan.
Holders of rec. Dec. 15
Owens Bottle,common (guar.)
75c. Jan.
Holders of rec. Dec. 164
Common (extra)
$1
Jan.
Holders of rec. Dec. 160
Common (payable in corn,stock)
Jan.
Holders of rec. Dec. lha
.75
Preferred (guar.)
1 44 Jan,
Holders of rec. Boo. 16
Pacific Coast Co.. 1st Pref.(guar.)
1 Si Feb.
Holders of rec. Jan. 23a
Packard Motor Car, monthly
260. Dec. 3 Holders of roe. Dec. 15r,
Extra
15e. Dec. 3 Holders of tee. Dec. 15,.
Monthly
25c. Jan. 3 Holders of rot. Jan. 144
Monthly
25c. Feb. 29 Holders of rec. Feb. IE..
Paeolet Manufacturing, common
Dec. 3 Dec. 21 to Jan. 1
Preferred
3
Dec. 3 Dec. 21 to Jan. I
Page-Hershey Tubes, Ltd.. corn. (:81.).„ 75c. Jan. • Holders of rec. Dec. 20
Preferred (guar.)
Jan.
Holders of rec. Deo. 20
Palge-Detroit Motor Car., let pf.(qu.). 144 Jan. d Holders of tee. Dec. 150
*Second pref.-Jan. die. deferred
Pan Amer. Petrol. & Tr., corn. & corn. B -No action siren on dividends.
*Paragon Refining-dividend deferred
Param. Famous Lasky Corp.. corn. (qtr.) $2
Jan.
Holders of rec. Dec. 15a
Park, Davis & Co. (quar.)
25e. Jan.
Dec. 23 to Jan. 33
Extra
200. Jan,
Dec. 23 to Jan. 33
Park Utah Consol. Mines Co. (quar.)_. 20c. Jan.
Holders of rec. Dec. 15a
Parker Rust Proof Co.,corn.(guar.)
3734e Feb. 2 Holders of rec. Feb. 10
Preferred (guar.)
35e Feb. 2 Holders of rec. Feb. 10
Peabody Coal. corn (monthly)
Sc. Jan.
Holders of roe. Dec. 21a
Preferred (monthly)
58c Jan,
Holders of rec. Dec. 21a
Pedigo-Weber Shoe(guar.)
6234e. Jan.
Holders of rec. Dec. 15
Pelz-Greenstein Co., Inc.. prof
$2.50 Jan.
Holders of rec. Dec. 30
Pender (David) Grocery, Cl. B (qu.)_.._
50c. Apr.
Holders of rec. Mar. 15
Class B (extra)
25e. Apr.
Holders of rec. Mar. 15
Penick & Ford. Ltd., pref.(guar.)
1K Jan.
Holders of rec. Dec. 174
Penney (J. C.) Co.. pref.(guar.)
$1.50 Dec. 3 Holders of rec. Dec. 20
Pennsylvania-Dixie Cement corn. (qu.). 50o. Jan.
Holders of rec. Dec. 15a
Pennsylvania Salt Mfg.(quar.)
$1.25 Jan, 1 Holders of rec. Dec. 31a
Peoples Drug Store Scorn. (guar.)
25c. Jan.
Holders of rec. Dec. 8a
Iset Milk, common (guar.)
75e. Jan.
Holders of roe. Dec. 12
Preferred (quar.)
Jan.
Holders of rec. Dec. 12
Tettibone Mulliken & Co.First and second pref. (quar.)
144 Jan.
Holders of rec. Dec. 23a
rhelps, Dodge Corp.(quar.)
$1.50 Jan.
Holders of rec. Dec. 17a
Philadelphia Co.for Guar. Mtgs.(guar.) 24 Dec. 3 Holders of me. Dec. 20a
Extra
2
Dec. 3 Holders of roe. Dec. 200
Phila. Dairy Products, prior pt.(guar.). $16234 Jan.
Holders of rec. Dec. 20a
Philadelphia Insulated Wire
$2
Feb.
Holders of rec. Jan. 16a
Extra
50c. Feb.
Holders of rec. Jan. 16a
Phillips-Jones Corp., pref.(guar.)
134 Feb.
Holders of rec, Jan. 250
Phillips Petroleum (guar.)
750. Jan.
Dec. 15 to Jan. 2
Pick (Albert) & Co., pref. (guar.)
134 Jan.
Holders of tee. Dec. 164
Pie Bakeries of Amer., Inc., pref.(guar) 134 Jan.
Holders of roe. I)eo, 15
Pilgrim Mills (guar.)
2
Dec. 3 Holders of rec. Doe. 28a
Pittsburgh Plate Glass (guar.)
2
Dec. 3 Holders of rec. Den. 15o
Pittsburgh Screw & Bolt. corn.(guar.)._ '75e. Jan. 1 'Holders of rec. Jan. 3
Pittsburgh Steel Foundry, pref.(guar.).
Preferred (guar.)
134 Dec. 3 Deo. 18 to Jan. 2
Plymouth Cordage (guar.)
114 Jan. 2 Holders of rec. Dec. 31a
Plymouth Plan common (annual)
6
Holders of rec. Dee. 20
Pratt & Lambert, Inc., corn. (guar.)._ 75c. Jan. 3 Holders of rec. Dee. 160
Common (extra)
Jan. 3 Holders of rec. Dec. 15o
El
Porto Rico Amer. Tobacco, class A (qu.) $1.75 Jan. 10 Holders of rec. Dec.20a
Prairie Pipe Line (guar.)
234 Jan. 31 Holders of rec. Dec. 31a
Premier Gold Mining
8c. Jan. 4 Holders of rec. Dec. 15
Price Bros., common (guar.)
50e. Jan. 3 Holders of rec. Dec. 15
Preferred (guar.)
144 Jan. 3 Holders of recs. Dee 15
Procter & Gamble Co..8% Pt.(quar.)
2
Jan. 14 Holders of rec. Dec. 24a
pro-phy-lactic Brush (quar.)
50e. Jan. 16 Holders of rec. Dee. 31a
Extra
$1
Jan. 5 Holders of rec. Dec. 23a
Pure Oil, 5(.(% prof.(quar.)
134 Jan. 1 Holders of rec. Dec. 10a
6% preferred (guar.)
134 Jan, 1 Holders of rec. Des. 104
8% preferred (quer.)
2
Jan. 1 Holders of rec. Dee. 104
Quaker Oats ,common (guar.)
$1
Jan. 16 Holders of rec. Dee. 31a
Preferred (guar.)
114 Feb. 29 Holders of rec. Feb. la
Q. R.S. Music Co.. corn.(monthly)-15c. Jan. 15 Holders of roe. Jan. 3a
Real Silk Hosiery, pref. (guar.)
1 44 Jan. 1 Holders of rec. Dec. 15a
Realty Associates. 1st Prof
3
Jan. 16 Holders of rec. Jan. 5
Reece Buttonhole Mach.(guar.)
35e. Jan. 3 Holders of rec. Doe. 15
Reece Folding Mach.(guar.)
50, Jan. 3 Holders of rec. Dec. 15
Regal Shoe. pref. (guar.)
134 Jan. 3 Dec. 21 to Jan. 2
Name of Company.
3607
Per
When
Cent. Payable.
Books Cared.
Days !minstrel.
Miscellaneous (Continued).
Reis(Robert)& Co.. 1st pref.(quar.)- - 134 Jan. 1 Holders of rec. Dec. 23a
Reliance Manufacturing, pref. (guar.)._ $1.75 Jan. 1 Holders of rec. Dec. 215
Remington Arms, Inc., 1st pref. (guar.) 144 Jan. 1 Holders of ree. Dec. 20
Remington Rand Co., let pref.(guar.)._
134 Jan. 1 Holders of reo. Dec. 10a
2
Second preferred (guar.)
Jan, 1 Holders of rec. Dec. 106
Remington Typewriter, let prof (guar.). 134 Jan. 1 Holders of rec. Dec. 15a
Second preferred (guar.)
Jan. 1 Holders of ree. Dec. 15a
2
200. Jan. 3 Holders of rec. Dec. 90
Reo Motor Car (guar.)
20e. Jan. 3 Holders of reo. Dec. 90
Extra
Reynolds(R.J.) Tobacco$1.25 Jan. 2 Holders of rec. Dec. 17a
Common and common B (guar.)
81.50 Jan. 2 Holders of rec. Dec. 17a
Common & common B (extra)
Republic Iron & Steel, pref.(guar.)
144 Jan, 2 Holders of rec. Dec. 144
Richardson & Boynton Co.,part. pf.(q11.) The. Jan. 3 Holders of rec. Dec. 15
Richman Bros., common (guar.)
81.50 Jan. 2 Holders of rec. Dec. 19
Rice-Stix Dry Goods, common (quar.)._ 373'4e. Feb. 1 Holders of rec. Jan. 15
144 Jan, 2 Holders of rec. Dee. 15
First and second pref.(guar.)
•250. Feb. 1 *Holders of rec. Jan. 5
Richfield 011, common (guar.)
iii4334e Feb. 1 *Holders of rec. Jan. 5
Preferred (guar.)
Jan. 2 Holders of rec. Dec. 29
Ross Stores. Inc., pref.(guar.)
2
Royal Baking Powder, corn.(guar.) _ _ 2
Dec. 31 Holders of rec. Dec. 15a
134 Dec. 31 Holders of rec. Dec. 156
Preferred (guar.)
Jan. 17 Holders of rec. Jan. 10a
Royal Typewriter, common (quar.)..... El
Common (extra)
Jan. 17 Holders of roe. Jan. 100
$1
334 Ian. 17 Holders of rec. Jan. 165
Preferred
Safeway Stores, Inc., corn.(guar.)
$2.50 Jan. 1 Holders of rec. Dec. 20
134 Jan. 1 Holders of ree. Dec. 20
Preferred ((Mar.)
50c Mar.20 M ar. 10 to Mar.20
St. Joseph Lead (guar.)
Extra
25c Mar. 20 May. 10 to Mar.20
Quarterly
50e June 20 June 10 to June 20
Extra
25c June 20 June 10 to June 20
Quarterly
50c Sept.20 Sept. 9 to Sept.20
Extra
2.5e Sept. 20 Sept. 9 to Sept.20
Quarterly
Sc Dec. 20 Dec. 9 to Dec. 20
Extra
25c Dec. 20 Dee. 9 to Dec. 20
St. Louis National Stock Yards(gust.).. *2
Jan. 3 *Holders of rec. Dec. 24
St. L. Rocky Mt.& Pao. Co., corn.(qu.) 50e. Dec. 31 Holders of rec. Dec. I5a
134 Dec. 31 Hulders of rec. Dec. 15a
Preferred (quar.)
144 Jan. 3 Holders of rec. Dec. 16
St. Maurice Valley Corp., pref.(quar.)
St.Regis Paper,common (guar.)
50c. Jan. 2 Holders of rec. Dec. 15
134 Jan. 2 Holders of rec. Dec. 15
Preferred (guar.)
Salt Creek Conga Oil, corn.(quar1
20c. Jan, 2 Holders of rec. Dec. 15a
Sangamo Electric Co., corn. (quar.)
50c. Jan. 3 Holders of rec. Dec. 10a
Preferred (guar.)
81.75 Jan. 3 Holders of rec. Dec. 106
Savage Arms. 1st pref.(guar.)
'134 Jan. 3 *Holders of rec. Dec. 15
Second preferred (guar.)
'11.4 Feb. ld 'Holders of rec. Feb. 1
Schoeneman (J.), Inc., let Pt. (quar.).. 144 Jan. 2 Holders of rec. Dec. 15
Schulte Retail Stores. pref.(quay.)
2
Jan. 3 Holders of rec. Dec. 12a
Schulze Baking, pref.(guar.)
1.44 Jan. 1 Dec. 16 to Jan. 2
750. Jan. ] Dec. 16 to Jail. 2
Convertible preferred (guar.)
Schutter-Johnson Candy, corn.B (go.).. 25e. Jan. 3 Dec. 16 to Jan. 3
Cony, preference A (guar.)
60e. Jan, 3 Dec. 16 to Jan.
Scott Paper, common (guar.)
$2.50 Dec. 30 Holders of ree. Dec. 23
Scoville Manufacturing (guar.)
60c. Jan. 2 Holders of rec. Dec. 225
Scullin Steel. pref. (guar.)
75c Jan. 15 Jan. I to Jan. 15
Seagrave Corp.. corn.(quar.)
t30e. Jan. 20 Holders of rec. Dec. 31a
Preferred (quar.)
134 Jan. 20 Holders of rec. Dec. 31a
Second Internat. Secur.Corp.,Ist pf.(qn) 75c. Jan. 1 Holders of rec. Dec. 15
Second preferred (guar.)
75e. Jan. 1 Holders of rec. Dec. 15
Seeman Brothers, the., corn.(quar.)
50c Feb. 1 Holders of rec. Jan. 16
Sefton Manufacturing, pref.(quar.)144 Jan. 1 Holders of rec. Dec. 22a
Segal Lock & Hardware. pref. (quar.)
144 Jan. 16 Holders of rec. Dec. 31a
Selberling Rubber, pref.(quar.)
Jan. 3 Holders of rec. Dec. 20e
2
Service Station Equip.. class A (guar.)._
40c Jan. 3 Holders of rec. Dee. 22
Chaffer Oil & Ref., pref.(guar.)
144 Jan. 25 Holders of rec. Dee. 31
Shaler Co.. class A (guar.)
50c Jan. 1 Dec. 22 to Jan. 2
Sharon Steel Hoop.common
50c Jan. 10 Dee. 25 to Jan. 9
Preferred (guar.)
2
Jan. 3 Dec. 25 to Jan. 3
Shattuck (Frank G.) Co.(qu.)
50e. Jan. 10 Holders of rec. Dec. 200
Sheffield Steel (guar.)
50c Jan, 1 Holders of rec. Dec. 21a
50e Jan. 1 Holders of rec. Dec. 21a
Extra
Shell Union 011, corn •(guar.)
36e. Dec. 81 Holders of rec. Dec. 12a
Sheriff St. Mkt.& Storage, Cleve. WO - 134 Jan, 1 Holders of rec. Dec. 21
Sherwln-W'ms Co., Canada, corn.(qui 134 Dec. 31 Holders of rec. Dec. 15
Preferred (quar.)
144 Dec. 31 Holders of rec. Dee. 15
Sherwin-Williams Co., cons. (quar.)
134 Deo, 31 Holders of rec. Dec. 150
Shredded Wheat (guar.)
.75e Dec. 31 'Holders of rec. Dec. 21
Shreveport Eldorado Pipe Line(quay.).. 50e. Jan. 3 Holders of rec. Dec. 200
SIeloff Packing. common (guar.)
30c Jan. 2 Holders of rec. Dec. 20
Silver King Coalition Mines Co. (gu.)_ _
25e Jan. 2 Dec. 26 to Jan. 1
Simmons Co.,common (quar.)
50e. Jan. 4 Holders of rec. Dec. 155
Singer Mfg. (guar.)
234 Dec. 31 Dec. 11 to Jan. 2
Extra
534 Dec. 31 Dee. 11 to Jan. 2
Sloss-Sheffield Steel & Iron, pref. (qu.)_
134 Jan. 3 Holders of rec. Dee. 20a
smith (Howard) Paper Mills. pref. (qu.) 2
Jan. 1 Holders of rec. Dec. 31
Smith (L. C.) & Corona TypewriterCommon (guar.)
750 Jan. 1 Holders of rec. Dec. 234
Preferred (guar.)
144 Jan. 1 Holders of rec. Dec. 23a
South Penn 011 (guar.)
50c. Dec. 31 Dec. 15 to Jan. 2
South Porto Rico Sugar. corn. (gust.).. 50c. Jan. 3 Holders of rec. Dec. 10a
Preferred (guar.)
Jan. 3 Holders of res. Dee. 106
2
South West Pa, Pipe Lines (guar.)
$1 Dec. 31 Holders of rec. Dec. 15
Extra
$2 Dec. 31 Holders of rec. Dec. 15
Spalding (A. G.)& Bros.,com.(guar.)._ $1.25 Jan. 16 Holders of rect. Jan. 7
Spanish River Pulp & P.,corn.& Pf (qua
144 Jan. 16 Holden; of rec. Dec. 31a
Sparks-Withington CO., earn.(gust.)... 25c. Dec. 31 Holders of rec. Dec. 15
Preferred (quar.)
154 Dec. 31 Holders of rec. Dec. 15
Sperry Flour, pref. B (guar.)
134 Jan. 2 Holders of rec. Dec. 15
Spicer Mfg., pref.(guar.)
Jan, 1 Holders of tee. Dec. 20a
2
Sleben Securities Corp
82 Dec. 31 Holders of rec. Dee. 16a
Standard Commercial Tobacco.com.(qu) 250. Jan. 3 Holders of rec. Dec. 28
Preferred
334 Jan. 3 Holders of roe. Dee. 28
Standard Coupler, pref. (annual)
Jan, 3 Dec. 25 to Jan. 10
8
Standard Milling, cont. (guar.)
134 Dec. 31 Holders of rec. Dee. 19a
Preferred (guar.)
134 Dec. 31 Holders of rec. Dec. 19a
Standard 011 (Kentucky)(guar.)
Deo. 31 Dec. 16 to Dec. 30
$1
Standard 011(Ohio), corn.(guar.)
6234c Jan. 2 Holders of rec. Nov.25
Standard Screw. common (guar.)
Jan. 3 Holders of rec. Dec. 20
2
Preferred
Jan. 3 Holders of rec. Dec. 20
3
Stanley Co.of America (guar.)
Jan. 2 Holders of rec. Dec. 17
SI
Stanley Works. corn. (guar.)
6234e Jan. 2 Holders of rec. Dec. 104State Theatre (Boston). pref.(quay.)... '2
Jan. 3 "Holders of rec. Dec. 17
*tate Title & Mtge. Co.(guar.)
*$2.50 Dee. 31 *Holders of rec. Dec. 15
Steel & Tubes Co., common (quar.)____
The. Jan, 31 Holders of rec. Jan. 204
Steel Co. of Canada, corn. & of. (qu.)__
1 44 Feb. 1 Holders of rec. Jan. 7
Steel Products Co.,class A & B (guar.)
40e. Jan. 2 Holders of roe. Dec. 30a
Stein-Bloch Co., 1st. pref. (guar.)
144 Jan. 1 Holders of rec. Dec. 15a
Stern Bros.. class A (guar.)
Jan. 3 Dec. 22 to Jan. 1
$1
Stetson (John B.) common
$3.75 Jan.d16 Holders of rec. Jan. 16
Preferred
$1
Jan.d16 Holders of rec. Jan. la
Stone(H.0.)& Co.,common (guar.)... 51.25 Jan, 3 Holders of rec. Dec. 15
Common (payable in corn.stock)- Feb. 1 Holders of rec. Jan. 16
15
Preferred (guar.)
144 Jan, 3 Holders of rec. Dec. 15
stromberg Carburetor (guar.)
50e. Jan. 2 Holders of rec. Dec. 150
Studebaker Mail Order Co.. cl. A (go ) 50o Jan. 3 Holders of rec. Dec. 204
Sundstrand Co., common (No. 1)
$1 Jan. 16 Holders of rec. Dec. 31a
Preferred (guar.)
144 Jan, 16 Holders of rec. Dec. 31.
Superheater Co.(guar.)
81.50 Jan. 16 Holders of rec. Dec. 24
Extra
Jan. 4 Holders of roe. Dec. 24
$4
Swedish-Amer. Inv. Corp.. corn.(qu.)-$ 1.6234 Jan. 3 Holders of rec. Dec. 15a
Participating preferred (guar.)
1.62K Jan. 8 Holders of rec. Dec. 15a•
Swift & Co. (goar.)
Jan. 1 Dec. 11 to Jan. 5
2
Peck Hughes Gold Mines, Ltd
10e. Feb. 1 Jan. 18 to Jan. 31
Extra
Sc. Feb. 1 Jan. 18 to Jan. 31
Telautogralth Corp., cons.(guar.)
20e. Feb. 1 Holders of rec. Jan. 14aPreferred (guar.)
134 Jan. 10 Holders of rec. Dec. 31a
Telling-Belle Vernon Co.,corn,(guar.)
Jan. 1 Holders of rec. Dec. 19a
$1
144 Jan. 1 Holders of rec. Dec. 150
Preferred (guar.)
Texas Corporation (guar.)
75e Jan. 1 Holders of rec. Dee. 26
15e. Jan, 3 Holders of rec. Dec. 10a
Texas Pacific Coal & 011 (guar.)
Textile Banking (guar.)
2
Jan. 3 Holders of rec. Dee. 27a
3608
Name of Company.
THE CHRONICLE
Per
When
Cents Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Thayer-Foss Co., pref.(quar.)
131 Jan. 1 Holders of rec. Dec. 20a
Thompson (John R.) Co.(monthly)__
30c. Jan. 3 Holders of rec. Dee. 23a
Extra
400. Jan. 3 Holders of rec. Dec. 230
Monthly
30e. Feb. 1 Holders of rec. Jan. 23a
Monthly
30c. Mar. 1 Holders of rec. Feb. 23a
Thompson Products. cl. A & B (guar.)._
40e. Jan. 2 Holders of rec. Dec. 20a
Thompson-Starrett Co. (quar.)
3
Jan. 3 Holders of rec. Dec. 240
Tide Water Associated Oil. pref.(qu.)_. 134 Jan. 3 Holders of rec. Dee. 16a
Tide Water 011, common (quar.)
20e. Dec. 31 Holders of rec. Dee. 16a
Timken Detroit Axle common (quer)._ _ 15e. Jan. 1 Dec. 21 to Jan. 2
Common (extra)
50. Jan. 1 Dec. 21 to Jan. 2
Untie Standard Mining (extra)
30c. Jan. 3 Dec. 6 to Dec. 7
Tobacco Products Corp., corn.(guar.)._ (y) Jan. 16 Holders of rec. Dec. 30a
Tooke Bros., new pref. (quar.)
ly, Jan. 16 Jan. 1 to Jan. 16
Toronto Mortgage (quar.)
234 Jan. 1 Holders of rec. Dec. 15
Bonus
1
Jan. 1 Holders of rec. Dec. 16
Torrington Company (qual.)
750. Jan. 3 Holders of rec. Dec. 15
Extra
$1.25 Jan. 3 Holders of rec. Dee. 15
Traveler Shoe (quar.)
37340 Jan. 3 Holders of rec. Dee. 200
Traymore. Ltd.. pref.(quar.)
131 Jan. 1 Holders of rec. Dec. 15
Trico Products Corp., corn.(No. 1)
*6231c Jan. 2 *Holders of roe. Dec. 9
Trumbull-Cliffs Furnace, pref.(quar.)_
134 Jan. 1 Holders of rec. Dec. 20
Trenton Steel, corn.(In corn. stock)
16
Feb. 1 Holders of rec. Jan. 17a
Tubize Artificial Silk, common (quar.)__ $2.50 Jan. 3 Holders of rec. Dec. 20a
Preferred (qual.)
134 Jan. 3 Holders of rec. Dec. 20a
'Sackett Tobacco, corn. (quar,)
1
Jan, 14 Holders of rec. Dec. 31a
Preferred (guar.)
1/1 Jan. 14 Holders of roc. Dec. 31a
244 North Bay Shore Drive, Inc., pref.._ 3
Dec. 31 Dec. 16 to Jan. 2
Ulen & Co.,8% pre:
4
Jan. 2 Holders of rec. Dec. 20
734% preferred
3/1 Jan. 2 Holders of rec. Dec. 20
Underwood Comput. Mach.. pref.(qu.)_ 1% Jan. 1 Holders of rec. Dec. 150
Underwood Typewriter, cam. (quar.)
Jan. 3 Holders Of roe. Dec. la
$1
Preferred (quar.)
131 Jan. 3 Holders of roe. Dec. la
Union Biscuit let pref.(quar.)
131 Jan. 15 Holders of rec. Jan. 5
Union Carbide & Carbon (quar.)
$1.50 Jan. 2 Holders of rec. Dec. 5a
Union Metal Mfg.(quar.)
500. Jan. 1 Holders of rec. Dec. 20a
Extra
20e. Jan. 1 Holders of rec. Dec. 20a
Preferred (quar.)
Jan. 1 Holders of rec. Dec. 20a
$2
Union Mortgage (qual.)
*2
Jan. 3 *Holders of rec. Doe. 31
Extra
*2
Jan. 3 *Holders of rec. Dec. 31
Union Steel Casting. common (quar.)
50c Jan. 10 Holders of roe. Dec. 31a
Preferred (quar.)
131 Jan. 10 Holders of rec. Dec. 310
Union Twist Drill. pref. (qual.)
131 Dec. 31 Holders of rec. Dec. 20a
United Dyewood Corp.. prof.(qua!,)-. 131 Jan. 3 Holders of rm. Dec. 13a
United Electric Coal(qual.)(No. 1)
750. Jan. 15 Holders of rec. Dec. 31a
United Fruit (qual.)
$1 Ian. 3 Holders of rec. Dec. 3
United Hotels of America, pref.(eUar.)- 131 Jan. 1 Holders of rec. Doe. 20a
United Ice Service. pref. A (quar.)
$1.75 Jan, 3 Holders of rec. Dec. 220
United Invest. Secur. Corp.,com.(No.1) •10c. Jan. 18 *Holders of rec. Dec. 31
United Paper Board, pref.(quar.)
134 Jan. 18 Holders of rec. Jan. 20
Preferred (quar.)
134 Apr. 16 Holders of rec. Apr. 2a
United Profit-Sharing, corn.
130c. fan. 16 Holders of roe. Doe. 15a
United Securities. Ltd., pref.(qual.).,_
134 'An. 2 Holders of me. Nov.25
United Shoe Machinery, corn. (quar.) 62340 Jai. 5 Holders of rec. Deo. 20a
Preferred (qual.)
3734r JAI. 5 Holders of rec. Dec. 2(34
United Verde Extension Mining
50c Feb. 1 Holders of rec. Jan. 4a
U.S. Bobbin & Shuttle. tom.(qual.)
50c. Dec. 31 Holders of rec. Dec. 14
Preferred (quar.)
134 Dec. 31 Holders of rec. Dec. 14
U.S. Bond & Mtge., pref.(qual.)
134 Deo. 31 Holders of rec. Dec. 200
U.S. Distributing Corp., old & new pref. 334 Ian. 1 Holders of reo.Deo. 12a
U.S. Finishing, corn.(qual.)
*131 Jan. 16 *Holders of rec. Jan. 8
Common (extra)
•2
fan. 16 *Holders of rec. Jan.
,1,1% ran. 1 *Holders of reo. Dec. 15
Preferred (qual.)
U.S.Gypsum,common (quar.)
400. Dec. 31 Dee. 16 to Jan. 1
Common (extra)
$1
Dec. 31 Dec. 16 to Jan. 1
Preferred (qual.)
131 Dec. 31 Dec. 16 to Jan. 1
U.S. Industrial Alcohol, corn. (quar.)_
131 Feb. 1 Holders of rec. Jan. 16a
Preferred (qual.)
131 Ian. 16 Holders of rec. Dec. 31a
U. S. L. Battery, common (quar.)
500. fan. 3 Dec. 16 to Jan. 2
Preferred A (qual.)
250. an. 3 Dec. 16 to Jan. 2
Preferred B (qual.)
17 Mc Jan. 3 Dec. 16 to Jan. 2
U.S.Leather, prior pref. v.t. o.(guar.)_
131 Ian. 3 Holders of rec. Deo. 10,
U. S. Lumber (quar.)
134 Jan. 2 Dec. 21 to Jan 1
U.S. Playing Card, common (Guar.)... 51
Ian. 1 Holders of rec. Dec. 210
Common (extra)
$1
Jan. 1 Holders of rec. Dee. 21a
U.S. Ptg. & Lith., corn. & pf. (guar.)._ 13( Jan. 1 Holders of rec. Dec. 21
*1h Jan. 1 *Holders of rec. Dec. 29
U. S. Rayon, Prof. (quar.)
United States Tobacco,corn.(quar.)
75c. Jan. 3 Holders of rec. Dec. 19a
Preferred (qual.)
151 Jan. 3 Holders of rec. Dec. 19a
Universal Leaf Tobacco, corn. (quar.)_. 75
Feb. 1 Holders of rec. Jan. 200
Preferred (Qual.)
2
Ian. 2 Holders of rec. Dec. 250
Universal Pictures Co., 1st pref. (qu.)
2
Ian. 1 Holders of rec. Dec. 23a
Universal Pipe Sr Radiator, common.... 500, Jan.
Holders of rec. Dec. 150
Preferred (quar.)
134 Feb. 1 Holders of rec. Jan. 16aa
Upson Company, pref. (qual.)
134 Jan. 3 Holders of rec. Dec. 15
Utah Copper Co.(quar.)
$1.50 Dec. 31 Holders of rec. Dee. 16
Valvoline Oil, corn.(In common stock)
/6
Jan. 17 Holders of rec. Jan. 14
Vasco Products, Inc., pref.(annual) __
Jan. 1 Holders of rec. Dec. 15
8
Vick Chemical (guar.)
$1
Feb. 1 Holders of rec. Jan. 16a
134 Feb. 1 Holders of rec. Jan. 3
Victor Talking Mach., pr. pref.(qu.)
4$8 cony. pref.(quar.)
451.50 Feb. I Holders of rec. Jan. 3
Virginia Iron, Coal dr Coke, pref
234 Jan. 3 Holders of rec. Dec. 150
134 Jan. 20 Holders of rec. Jan. 9a
Vulcan Detinning. pref.(qual.)
Preferred A (qual.)
134 Jan, 20 Holders of rec. Jan. 9a
V: Vivaudou, corn. (pay in corn.
1234 Mar.31 Holders of rec. Mar. 6
Preferred (quar.)
131 Feb. I Holders of rec. Jan. 13a
Wabaaso Cotton. Ltd.(quar.)
$1
Jan. 3 Holders of roe. Dec. 15
Bonus
50e. Jan. 8 Holders of reo. Dee. 15
134 Jan. 1 Holders of rec. Dec. 216
Wagner Electric Co.. pref.(quar.)
Wahl Company, pref.(qua!,)
151 Jan. 1 Holders of rec. Dec. 22,
Wain At Bond, Inc., class B (quar.)
2734c Jan. 3 Holders of rec. Dec. 15a
Waldorf System, Inc., corn.(qual.)
37 Mc Jan. 3 Holders of rec. Dec. 20
200. Jan. 3 Holders of rec. Dec. 20a
Preferred (guar.)
Waltham Watch, prior pref. (quar.)
15( Jan. 3 Holders of rec. Dec. 23a
Walworth Company, pref.(qual.)
75e. Dec. 31 Holders of rec. Dec. 15
Ward Baking Corp., corn. cl. A (qual.)
$2 Jan, 3 Holders of rec. Dec. 115a
Preferred (quar.)
13.1 Jan. 3 Holders of rec. Dec. 150
Warner (Chas.) Co., corn.(qual.)
50c. Jan. 12 Holders of rec. Dec. 310
Common (extra)
50c. Jan. 12 Holders of roe. Dec. 31a
First and second preferred (quer.). - 131 Jan. 26 Holders of rec. Dec. 31a
Warner Gear, corn
250. Jan. 1 Holders of rec. Dee. 15a
Class A cony. pref. (quar.)
500. Jan. 1 Holders of rec. Dec. 15a
Warner-Quinlan Co., corn. (guar.)
50c. Jan. 3 Holders of rec. Dec. 150
Preferred (quar.)
131 Jan. 3 Holders of rec. Doe. 15a
Warren Bros. Co.. corn.(qua!,)
51
Jan, 3 Holders of roe. Doe. ha
Common (extra)
Jan. 3 Holders of rec. Dec. In
$1
First preferred (quar.)
750. Jan. 3 Holders of roe. De'. 17a
Second pref.(quar.)
8734c. Jan. 3 Holders of tee. Dec• 17a
Waukesha Motor (qual.)
62340 Jan. 2 Holders of rec. Doe. 150
Waverly 011 Works, el. A (qual.)
37340 Jan. 1 Dec. 23 to Jan. 2
Weber Helibroner. Preferred (quar.)--r- 131 Feb. 1 Holders of rec. Jan. 18a
Wellman-Seaver-Morgan Co., pf. (qu.). 131 Jan. 1 Dec. 22 to Jan. 2
Wesson Oil& Snowdrift Co.,corn.(qu.) $I
Jan. 1 Holders of rec. Doe. 15
West Coast 011 (quar.)
*31.50 Jan .5 Holders of rec. Dec. 23
West Point Manufacturing (guar.)
2
Jan. 3 Holders of rec. Dec. I8a
Western Auto Supply, Panic. prof. (C111.) 500. Jan. 1 Holders of rec. Dec. 20a
Western Electric Co.. corn. (quar.)._. 50e. Dec. 31 Holders of rec. Dec. 29a
$13 Dec. 31 Holders of rec. Dec. 240
Common (special)
334 Jan. 1 Dee. 22 to Jan. 2
Western Grocer Co.. pref
Western Maryland Dairy Corp., pf.(qu.) $1.50 Jan. 2 Holders of rec. Dec. 20
Western Tablet At Stationary, pref.(qu.) 131 Jan. 1 Holders of rec. Dec. 24
Westinghouse Air Brake (quar.)
50e. Jan. 31 Holders of rec. Dec. 31a
Jan. 31 Holders of rec. Deo. 30
Westinghouse El. & Mfg.. MM.(qu.)
51
Jan. 18 Holders of rec. Deo. 304
Preferred (qual.)
51
Jan, 3 Dec. 29 to Jan. 3
Westmoreland Coal(qual.)
51
Weston Elec. Instrument, el. A (guar.)500. Jan. 2 Holders of rec. Dee. 17
Jan. 2 Holders of rec. Dec. 12a
Wheeling Steel Corp.. pref. el. A (qu.)..
2
Preferred class B (guar.)
234 Jan. 2 Holders of roe. Doe. 12
Jan. 1 Holders of roe. Dec. 200
Whitaker Paper, common (guar.)
$1
Preferred Merl
131 Jan. 1 Holders of roe. Dec. 200
White Eagle 011k !refining
25c. Jan. 20 Holders of rec. Dec. 30a
[VOL. 125.
Per
When
Cent. Payable.
Name of Company.
Books Closed,
Days Inclusive.
Miscellaneous (Concluded).
White Motor (guar.)
500. Dec. 31 Holders of roe. Dec. 15a
White Motor Securities, pref.(quar.)
131 Dee, 31 Holders of roe. Dec. 150
White Rock Mineral Springs, corn. (qu.) 50c. Jan. 2 Holders of rec. Dec. 150
Common (extra)
$I Jan. 2 Holders of rec. Dec. 15a
First preferred (guar.)
13( Jan. 2 Holders of rec. Dec. 15
Second preferred (qual.)
234 Jan. 2 Holders of rec. Doe. 15
Second preferred (extra)
5
Jan, 2 Holders of rec. Dec. 15
Whitman (William) Co., Inc., pf.(qu.). 131 Jan. 2 Holders of rec. Dec. 20a
Will & Baumer Candle, Prof. (qual.)_
2
Jan. 3 Holders of rec. Dec. 18
Willys-Overland Co., pref. (quar.)
134 Jan. 3 Holders of rec. Dec. 24a
Wire Wheel Corp.. pref. (quar.)
$1.75 Jan. 1 Holders of rec. Dec. 20
Woodley Petroleum (qua!,)
150. Doe. 31 Holders of rec. Dec. 15
Woods Manufacturing, pref.(guar.)._ _ 131 Jan. .3 Holders of rec. Dec. 250
Woolson Spice,common (qual.)
442
Holders of rec. Dec. 31
•sg
Common (extra)
Holders of rec. Dec. 31
4,1H
Preferred (guar.)
Holders of rec. Dec. 31
Worthington Ball (qual.)
*50e. Jan. 14 *Holders of rec. Dec. 31
Wrigley (Wm.) Jr. Co.(monthly)
250. Jan. 3 Holders of rec. Dec. 200
Special (extra)
50c. Jan. 3 Holders of rec. Dec. 200
Monthly
25e. Feb. 1 Holders of rec. Jan. 200
Monthly
250. Mar. 1 Holders of rec. Feb. 200
Monthly
25e. Apr. 2 Holders of rec. Mar. 200
Yale & Towne Mfg. (guar.)
51 Jan. 3 Holders of rec. Dec. 9a
Yellow Cab Co., Inc.(Newark)(quar.), 25e. Jan, 1 Holders of rec. Dee. 20a
Yellow Truck & Coach, pref.(quar.)
131 Jan. 1 Holders of rec. Dec. 16a
Youngstown Sheet & Tube, corn.
$1.25 Dec. 31 Holders of rec. Dec. 140
Preferred (guar.)
131 Deo. 31 Holders of rec. flee. 14a
From unofficial sources. t The New York Stock Exchange has ruled that stock
will not be quoted ex-dividend on this date and not until further notice. t The
New York Curb Market Association has ruled that stock will not be quoted ex.
dividend on this date and not until further notice.
a Transfer books not closed for this dividend. I Payable in preferred stook.
cf Correction. e Payable in Mock. f Payable in common stock. g Payable is
scrip. h On account of accumulated dividends.
Holders of Class A and Class 13 stock are given the privilege of subscribing to
the extent of the dividend to their respective stocks at $25 per share.
1 North American Co. stock dividend is 2%%,or at rate of one-fortieth of a share
of corn.stock for each share held.
Holland Furnace corn, dividend payable either in cash or In common stock.
I Associated Gas & Electric dividends payable either in cash or class A stook
as follows: 2 47-100 of a share of class A stock on original preferred: 4 32-100 of a
share of class A stock on 57 preferred; on class A stock one fortieth share class A stock
m One-fortieth share common stook.
n Elective Investors stock dividend Is 3-50ths of a share of common stock.
o U. S. Mtge. & Trust stock dividend ratified to stockholders' meeting Doe.30.
p British American 011 dividend payable to holders of coupon No. 4.
q Knox Hat dividend is payable in class A participating nook of the Long',
Hat Stores Corp. at $100 per share.
r At rate of 7% per annum for seven months.
s American Superpower stook dividend Is one-fiftieth share of class A corn,stock.
I Seagrove Corp. dividend payable either 300. cash or 2%% stock.
is British American Tobacco dividends are, final, Is. 8d., and interim, 10d.
Transfers received In London up to Dec. 31 will be in time for payment of dividend
to transferees.
o Utilities Power& Light class A dividend optional, either in cash or class A stock
at rate of one-fortieth of class A stook, and class B stock 33-500ths of a share of
class B dock.
to The following amounts to be deducted on account of third and fourth quarterly
installments of 1926 income tax: Union Pam. RI 75o.: West Phila. Pass Ay., 750.
z Leas U.S. corporate Income tax, reducing quarterly rate to $2.12 m per share.
y Tobacco Products trtock dividend is one-tenth of a share of United Cigar stores
common dock of reach share of Tobacco Products Corp. common stock.
Holders of record date changed from Dec. 31 to Jan. 10.
(1) General Public Service dividend on convertible pref. stock reported in previous
issue as payable Jan. 2 was an error.
Weekly Returns of New
York City Clearing House
Banks and Trust Companies.
The following shows the condition of the New York City
Clearing House members for the week ending Dec. 24. The
figures for the separate banks are the averages of the daily
results. In the case of the grand totals, we also show the
actual figures of condition at the end of the week.
NEW YORK WEEKLY CLEARING HOUSE RETURNS.
(Stated in thousands of dollars-that is, three ciphers [000] omitted.)
Nd
Capital.Profits. Loans,
Reserv
Discount, Cash
with
Week Ended
Net
Time Barg
in
Legal Demand
Dec. 24 1927. Nat'l, Oct. 1 InvestDe- Circumeets, Vault. Depos Deposits. posits. Raton.
State, Nov.I
Tr.Cos.Nov.
ttc.
15
lodes.
(000 omitted)
Members of F d. Res. Bank. Average. Average Average
$
S
$
Bank of N Y
5
6,000 12,690 82,141
953 7,699
Trust Co.- Bk of Manhat' 12,500 18.883 179,848 5.09918,96'
8,500 5,426 88,603 1,548 12,229
Bank of Americ
Nat City Bank 75,000 68,079 944.613 6,049 94,390
5,000 18,954 147,694 1.755 17,330
Chemical Nat'l
873 46,308
Nat Bk of Comic 25,000 44,197 408,288
ChatPh NB drT 13,500 14,302 232,008 4,030 25,718
5,000 26.322 142,579 2,090 16,882
Hanover Nat'l
Corn Exchange 11,000 16,493 201,591 6.980 24,048
10,000 24,696 180,333 1,082 18,034
National Park
78,587 2,834 7,287
4,000 7,051
Bowery dr E Ri
80,909 369,867
595 33,187
10,000
First National _
Am Ex Irving T 32,000 31.014 443,782 5,863 53,190
8,527
183
946
Continental Bk. 1,000 1,362
Chase National 40,000 40,820 632,982 7,322 73,887
28,145 1,068 3,409
500 3,261
Fifth Avenue_
593 2,461
1,000 1,898. 17,009
Garfield Nat'l8,000 12,071 141,260 1,177 18,568
Seaboard Nat'l
41,373 402,888 1,241 40,465
Bankers Trust- 20,
U S Mtge & Tr. 3,000 5,497 68,077 1,149 8.872
30,000 33,980, 482,233 1,67, 50,504
GuatantV
Fidelity Trust_ - 4,000 3,4591 47,939 1,093 5,295
10,000 23,5381 190,724
973 18,954
N Y Trust
Farmers L & T 10,000 21,3841 145,878 1,004 14,877
Equitable True 30,000 2S,154 303,945 1,685 32.383
Average. Averag,'lege.
5
s
s
58,853 8,432 _138,733 30,13-92,473 4.12. --'948,480146,078
99
131,746 4,817 348
346,413 31,203 -181,075 43,894 6,151
129,034 2,939
170,607 30,406 ---136,196 16,132 4,898
49,959 21,462 2,977
251,186 17,113 8,832
398,571 44,397
61 i
6,198
*572,468 45,891 2.480
24,928 1,217
16,888
272
126.516 3,189
42
*342.304 46,081
64,782 3,972
•442,587 138,178 ....„
40.573 4,074
135.991 37,287 _*111,711 19,998
*348,119 30,018
Total of average 373,000 582,8125.985,277 58,443843.481 c4,768,137 59,807 23,805
Totals, aaual c edition Dec.245.967,460 57,570654,088 c4,731,592875,047 23,845
Totals, aaual Co edition Dec. 175.927.127 53.814059,878c4.790.879 840,33S23.741
Totals, actual CO edition Dec.105,907,975 47,394659,800c4.790,334050.80523,643
State Banks
Not Memberso
Fed'
. Res. Bk.
40,328 82,762 ____
State Bank_ _ _ _ 5.000 6,292 108.347 4,832 2,539
27.758 6,386
Colonial Bank._ 1.400 3,519 34,287 3,638 1,651
6,400
9,811
142,634
8,470
4.240
88,086 89,148
Totals, adual c edition Dec. 24 143,868
Totals, actual c edition Dec. 171 142,953
Totals, actual a edition Dec. 101 141.819
8,209
8,195
8.428
4,217
4,165
4,214
69,086 69,188
67,640 69,008
67,681 68.905
Total of average
_ __.
____
DEC. 31 1927.]
THE CHRONICLE
Net
Capital. Profits. Loans,
Reserve
Discount, Cash
Week Ended
with
Net
Time Bank
Dec.24 1927. Nat'l, Oct. 10 InvestLegal Demand
in
De- CircuState, Nov. 15 ments, Vault. Dcpost- Deposits. posits. lation.
(000 omitted) Tr.Cos.Nov. 15
dtc.
tortes.
Trust Co's
Average Average Average Average Average As
'ge
Not Memberso
$
$
3
$
$
3
$
$
Fed'i Res. Bk.
10,000 21,171 69,270 1,830 4,432
Title Guar &
41,605 1,804
Lawyers Trust_ 3,000 3,902 25,054
950 1,985
19,228 1,732
13,000 24,773
94,324
2,780
6,417
60,833
3,536
_ ___
Totals, actual c ndition Dec.24
Totals,actual c wanton Dec. 17
Totals, actual c nelltion Dec. 10
94,342
92,155
94,174
2,677
2,597
2,658
6,478
6.840
6,623
60,947
60,082
61,206
3,652
3,458
3,479
____
____
Total of averag
Gr'd aggr., meg 392,400817,3976,202,235 69.693654,138g4.897,056732,491 3,605
Comparison wi It prey. week _ _ +59.956+6,581-8.109 -19,879 +9,887 +42
Gr'd aggr., ad' cond'n Dec.248,205,670 68,546864,781 54861,625747.787 23,645
Comparison wi h prey.week - _ +43,435+4.140-6.102 -56,985+28986 -96
Gr'd
Gr'd
Gr'd
Gr'd
aggr., act' cond'n ec. 176,162.235 64.406670,883
aggr., act' cond'n Dec. 100,143,968 58,480670,637
aggr., act' cond'n Dee. 36,206,491 53,515650,880
aggr.. act' 000d'n Nov.286,100,556 58,459 596,530
emure TInv ICIA ROA 9110 A/ RAA AAA IRA
4,918,610718,801 23,741
4,919,201 723,18923.643
4,941,248753,25323,595
4,784,681 759.936 23,673
A 12.10 (1.17 7K1 Ritd. OR 500
Note.-T1. S. deposits deducted from net demand deposits In the general total
above were as follows: Average total Dec. 24, 850,052,000. Actual totals Dec. 24,
$50,051,000; Dec. 17,$50.052,000: Dec. 10,81,162,000;Dec.3,51,182,000; Nov.26,
$11,943,000; Nov. 19. $47,193,000. Bills payable, rediscounts. acceptances and
ether liabilities, average for week Dec. 24, 5830,487,000: Dec. 17, $789,531,000;
Dec. 10, $806,353,000; Dec. 3, $794,999,000: Nov. 26, $760.228,000: Nov. 19,
2735,300,000. Actual totals Dec.24, 5883,220.000; Dec. 17,$787,413,000; Dec.10.
$802,383,000; Dec.3,$791,375,000; Nov.26.5760,446,000;Nov.19, p.8730,770,000.
•Includes deposits in foreign branches not included in total footings as follows:
National City Bank, 2253,198,000; Chase National Bank, $13.480,000; Bankers
Trust Co., 242,222,000; Guaranty Trust Co., $75,671,000; Farmesr 'Loan & Trust
Co., $2,258,000; Equitable Trust Co., 8106,372,000. Balances carried In banks in
foreign countries as reserve for such deposits were: National City Bank,538,689.000:
Chase National Bank, $1,687,000; Bankers Trust Co. $688,000: Guaranty Trust
Co., 83.817,000; Farmers' Loan & Trust Co., 82,258,000; Equitable Trust Co.,
50,182,000.
c Deposits in foreign branches not included.
The reserve position of the different groups of insti
@FedFRASER