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The Financial Situation
HE long-awaited gold clause decisions have been
T
rendered. They are reported as being satisfactory to the Administration,as was to be expected, al-
in the financial community will generally agree with
us when we say that viewed from almost any angle
the opinions in these cases add no glory to the
record of a court over which John Marshall once
presided. We are not surprised that financial
leaders abroad are in some instances raising the
question whether there is left anywhere in the
world any responsible body ready to champion the
age-old doctrine of the sanctity of contracts. As
Justice McReynolds remarked, there is no way of
knowing where all this will land us.
though of course the Court did not hesitate to assert
that the duty to honor the gold clauses in its own
contracts rested upon the conscience of the Government. Those who had been predicting, we have
always thought without much justification, a spurt
in business activity following these decisions, are
finding their expectations unfullfilled,and so far have
been able to discover but little prospect that they
will be in the near future. Many basically imAccepting the Inevitable
portant issues have risen since the gold clause
cases came to the fore
But what is written is
several weeks ago, and
written. We may well
have created serious worry
hope that at some time
Tightening the Grip
and uncertainty on their
in
the future the Supreme
It became known in the course of the week
own account. Among these
Court may have an opporthat the Federal Reserve Bank of New York,
presumably upon the initiative of the Treasmay be cited the pending
tunity to reconsider the
ury Department in Washington, and almost
banking bill, the utilities
points on which it has just
certainly with its full knowledge and approval, is now requesting (for all practical
holding company measure,
ruled, and find sufficient
purposes requiring) leading dealers in Govthe social insurance proreason for reversing deciernment securities to make the most elaborate
and detailed daily reports of their transgram and the relief bill,
sions of which neither the
actions.
now that the latter two
Court nor the country is
The inference has been drawn by the fihave been more fully connancial community—obviously with full warlikely in the long run to feel
rant—that the purpose of this practice is to
sidered and appraised by
proud. Of course there is
place the Government bond market even more
the community at large.
also the hope that sooner
completely under the control of the Treasury
Department than has been the case hereOne of the results is
or later there will be in
tofore.
that the hesitation in the
office in Washington a
The Federal Government, indirectly by
consciously enlarging the excess reserves of
business community which
Government that has more
the commercial banks of the country to
has set in during the past
respect for its honor, and
almost unbelievable proportions,and directly
by market operations for the account of
two weeks or so continues
for that matter, for the
various Government agencies, has already
without much indication of
principles of sound public
pushed the current prices of Government
any very marked improveobligations to absolutely ridiculous heights.
policies. But in the meanAll this apparently is not enough to satisfy
ment.
time we must reconcile ourpublic officials, since last week they preselves to an inevitable
sented a proposed banking bill that confessedly was designed in large part to give
The Gold Decisions
period of considerable
the Government complete power over the
TO the so-called gold
length
in which we shall
Federal open market operations in Government securities, and this week it transpires
decisions handed
be obliged to suffer the
that dealers in Government obligations are
down at the beginning of
consequences of the fan- .
to be minutely watched and probably closely
controlled in their purchases and sales of
the week, we find them
tastic financial policies of
such obligations.
unfortunate in effect and
an almost incoherent govThis type of activity on the part of private
logically untenable. These
interests has been severely condemned during
ernment which is apparthe past year or two on more than one occaopinions are analyzed at
ently to have no restrainsion by spokesmen for the Administration,
length elsewhere in this
ing hand laid upon it by
and in some instances not without justification.
issue. However,in a matthe courts in matters that
It is no whit less to be condemned when
'ter of such general imporhave to do with money.
practiced by the Government itself.
tance, we must not fail to
There is a disposition in
make clear at this point
some quarters to suppose
what our view of them is. We are not in a position that we have already made the adjustments, or most
to pass judgment upon the purely legal technicalities of them, to the new gold basis of the dollar, and
of the cases, and in any event for all practical pur- that in consequence a continuance of the status quo
poses both the Constitution and the laws of the in this matter need not disturb us. Such a position
land mean just what the Supreme Court says they seems to us wholly untenable.
mean. At the same time we are fully convinced,
A careful analysis of the facts, we believe, will
as we have always been, that the abrogation of convince any open mind that at most we have not
these so-called gold clauses was in no way essential done more than make a beginning in the adjustto the sort of currency control which the drafters ments that are necessary for us to continue with
of our Constitution intended to grant Congress. the present dollar, if international financial relaIndeed it seems to us that such abrogation is but tions are to proceed upon a reasonably smooth
tenuously related, if related at all, to the latter basis. As might be expected we, have arrived at a
question. We go even farther and state the belief closer approach to such an adjustment with Canada
that this lack of relationship is obvious to all careful than with other individual countries with which
students of matters concerning sound money. We we normally carry on a large trade. But even
find a number of other weaknesses also in the logic here it is far from complete. The Canadian dollar
of the prevailing opinions of the Court in these will buy less here by some 4% than at the time
cases, and are confident that thoughtful groups President Roosevelt was inaugurated, while at home
A
Financial Chronicle
1180
it has lost around 10% of its purchasing power.
The British pound sterling will now buy nearly
15% more here, while at home it will buy about
5% less than at the earlier date. The French franc
will buy 32% more here, while at home it will buy
only 13% more. The German mark will buy some
32% more here and some 10% less at home. The
Italian lira will buy 30% more here and but 4%
more at home. These figures are approximate only,
and generally speaking apply to a period several
weeks in the past. Figures from foreign countries
necessary to make such computations are not available here for some time after the event. However,
the situation to-day is not essentially different from
what it was at the date to which these data apply.
Figures Impressive
Of course it is conceded that figures of this sort
based upon general price indices and measuring
changes effected during a specified period of time,
at the beginning of which maladjustments doubtless
existed, cannot in the nature of the case measure
with great precision the completeness with which the
necessary adjustments here in question have been
made since the early part of 1933. Yet it is equally
obvious, we think, that, with discrepancies of the
magnitude of those shown here, there is absolutely
no basis for supposing that we have completed the
readjustments which have been imposed by the
decline in the value of the dollar during the present
regime in Washington.
There are of course some other highly important
deductions to be drawn from such an array of figures
as those just presented. In the first place, they
reveal one of the most important reasons for the
increase in the past year or two in the tendency
of the countries of the world to make restraints
imposed by them upon the inward movement of
goods more effective. In the circumstances thus
shown, it is obvious that at the present time this
country is a poor place for foreigners to sell their
goods and an excellent place for their citizens to buy
their supplies. That our trade with other countries
has not been more lop-sided than is the case is due
to trade restrictions imposed abroad, and, of course,
to the difficulties experienced by foreigners in obtaining dollars. As it is we have been steadily
absorbing huge quantities of gold from abroad, and
under existing conditions would probably have to
absorb most of what is left before foreign demand
for our goods attained sufficient volume to raise our
prices to parity of purchasing power with other
currencies, even with the aid of the various price
raising tactics now so much favored in Washington.
Needless to say, all this makes it clear enough how
greatly the present Administration has increased the
difficulties attendant upon any effort to remove or
reduce existing trade restrictions, and how serious
the difficulties confronting any program for international monetary agreements have grown since the
London Economic Conference early in the first
year of the present Administration. All this the
Supreme Court now sanctifies as far as the Constitution is concerned, thus removing any hope that the
course of such policies may be altered and brought
more into accord with the needs of the situation
within the predictable future.
The Effect on Current Policies
Another aspect of the gold decisions is likewise
not to be overlooked. It is the question of how
Feb. 23 1935
much effect the doctrines and the general tone of
the decision of the Court in these cases are likely
to have upon the course of Administration policy
and upon the temper of Congress, particularly those
elements which are naturally inclined to radical
departures from tested principles in the various
fields of economics and finance. Of course it does
not necessarily follow from the general tenor of the
gold clause decisions that the Supreme Court will
support the New Deal on other and unrelated
issues. In fact the recent oil decision seems to indicate that it may refuse to do so. But the net
psychological effect of the gold clause opinions may
well be that of giving aid and comfort to the more
irresponsible elements in Congress, the more so
since so many of them make a specialty of panaceas
which are related to monetary policies if they do
not directly concern them. Certain indications of
such a result are already to be seen in the revival
of some of the silver, fiat money and other similar
schemes with apparently more prospect of support
than they formerly enjoyed. The disclosure of
determination on the part of Senator Wagner to
alter the wage provisions of the work relief bill,
and proposals of others of some influence to raise
greatly the amounts to be expended under its provisions, likewise closely followed the ruling of the
Court, although of course it would be impossible
to say to what extent, if any, the one was the cause
of the other.
Recent Deficits
ATA recently made public concerning Government expenditures during the current fiscal
year are the more interesting in view of the provisions
of the relief bill, although of course they will repay
careful study on their own account. The financial
community has not failed to note the increased
rate of expenditures during the current month.
Federal outlays during January were moderate considering the usual tendencies of the Administration.
They made quite a striking showing when compared with the enormous outlays of the corresponding
month last year. But instead of declining this
month as was the case last year, there has been
a marked increase, the daily rate of expenditures
rising from about $15,000,000 to around $20,000,000,
while the daily deficit for the first half of the current month rose to nearly $11,000,000 from the
$8,500,000 rate prevailing during January. The.
figures for February are still well below those of last
year, but certainly large enough in all conscience.
Moreover they are disbursed in much larger degree
for purposes that normally bring into the possession
of the Government none of the assets of which the
Secretary of the Treasury spoke with so much
gratification last summer.
As a matter of fact, we have been running a
much larger net deficit (after deduction of assets
acquired by the various Government agencies) during this fiscal year than we averaged during the first
16 months of this Administration. It will be recalled that last summer the Secretary of the Treasury
told the public that from the deficit accruing during
the first 16 months of the Administration there
ought to be deducted some $1,860,000,000 in assets
which these various agencies had acquired during that
period. This left a net deficit of some $2,540,000,000
for the period, giving a monthly average of about
$159,000,000. During the first six months of the
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Volume 140
Financial Chronicle
current fiscal year this monthly average was just
a little less than $209,000,000. The corresponding
averages of increase in assets are $116,000,000 and
$52,000,000.
Recent Trends
1181
he has regularly had an "administration measure,"
at least in tentative form, ready for introduction in
both Houses. In any event the task that he thus
lays upon Congress is an impossible one. There is,
in our opinion, no way in which Congress can change
the law, as the President wishes, so that it will
prevent monopoly and monopolistic practices, protect the so-called small man or enterprise, and at
the same time permit and even encourage collusive
activities by competitors. It is unlikely that either
the President or the country can evade these problems, which have been so markedly aggravated
during the past year and a half or more, by merely
"passing the buck" to Congress. These are real
difficulties to which we must set ourselves with
much more candor, vigor and intelligence than we
have so far shown if real progress is to be achieved.
We discuss the President's National Recovery Administration message to Congress more at length
elsewhere in our editorial columns.
Complete figures for the first month and a half of
the current calendar year are unfortunately not yet
available, but as already indicated January expenditures were more moderate in amount than during
the late months of last year. The net deficit after
deduction of assets acquired during the month of
January this year may well have been smaller
than that for last year when the Civil Works
Administration was running riot with its extravagance and waste. There is, however, no great
certainty that the figure was lower than the average
for the first 16 months the present Administration
was in office. The February deficit when computed in this way may even equal that of last year
and is apparently certain to exceed materially that
of the average for the 16-months period in question.
Federal Reserve Bank Statement
It is well to bear all this in mind when the fact is
THER than a continuance of the monetary
considered that the Administration is now insisting
tendencies long in evidence, little of interest
upon huge sums to be expended in whatever way the
appears in the combined condition statement of the
President thinks best, and when note is taken also
12 Federal Reserve banks as of the close of business
of the fact that the whole tenor of thought on the
last Wednesday. Although the policy of stimulatpart of at least some influential members of the
ing extraordinary credit ease has failed for years
President's advisory staff is toward a further subto produce the business expansion so confidently
stantial enlargement of governmental outlays as a
predicted from it, further steps in that direction
means of inducing recovery. This appears to be
are reflected in the latest banking statistics. The
particularly true of the Governor of the Federal Treasury deposited
with the Federal Reserve banks
Reserve Board as judged by his recent expositions in the
week to Feb. 20 a further $66,442,000 of the
in support of the new banking bill and the position
gold certificates which now represent the interest
he is credibly reported to have taken on recent
of these institutions in the monetary gold stocks.
occasions in private conversations with business The actual gain in the monetary
gold stock in the
men. Apparently if the Administration has its way same period, however, was only $33,000,000,
and it
in Congress the only limit to Government outlays appears
probable that the excess deposit of certifiIn future months will be the ability of Washington cates represents an incursion into the so-called gold
officials to find ways of spending. Whether they "profit" realized from devaluation of the dollar.
can so organize themselves and their forces that The funds thus used by the Treasury, and its drawthey can spend as much as is now being sought ings upon its deposits with the Federal Reserve
and at the same time make a decent pretense of banks, are largely responsible for a further increase
obtaining their money's worth remains for the in the member bank deposits with the System on
future to disclose.
reserve account, which have attained a high record
of $4,644,795,000. At this level reserves again
NRA Problem Troublesome
are approximately double the requirements and
HE message sent by the President to Congress excess reserves thus are in the neighborhood of
on Wednesday concerning the NRA reveals $2,300,000,000.
clearly that the Administration is still finding that the
The Treasury deposits of gold certificates brought
problems which it created for itself in forcing passage the total holdings of the Federal Reserve banks up
of the National Industrial Recovery Act through to $5,516,081,000 on Feb. 20 from $5,449,639,000 on
Congress in 1933 are proving about the most diffi- Feb. 13. But the advance in total reserves was only
cult it has had to face. For months past the Presi- to $5,785,250,000 from $5,730,959,000, owing to a
dent and a number of his most trusted advisers decline in "other cash." Although member bank
have been earnestly at work trying to formulate a deposits on reserve account increased $64,454,000 to
plan that seemed feasible for dealing with the fact $4,644,795,000, this was offset in part by a decrease
that the law expires early next summer. The best of Treasury deposits on general account, and total
that the President is able to do even at this late deposits were up to $4,875,819,000 on Feb. 20 from
date is to place in the form of a message to Congress $4,834,165,000 on Feb. 13. Federal Reserve notes in
a sort of general defense of the objectives of the actual circulation moved upward in accordance with
Act in question, a number of very doubtful claims seasonal expectations to $3,127,655,000 from $3,118,of achievement under the National Recovery Ad- 015,000. Reserves increased more than the liabiliministration, and a request that Congress study the ties, and the ratio of total reserves to deposit and
problem for itself and devise a means of attaining note liabilities combined improved to 72.3% from
the ends sought without incurring the liabilities 72.1%. The net circulation of Federal Reserve
inseparable from any such project. This method bank notes expanded slightly to $1,242,000 from
of dealing with these questions stands in sharp $1,192,000, after the complete elimination a week
contrast with those he has been in the habit of earlier of the New York bank's liability on these
employing in practically all other cases, in which notes. Industrial advances continued their slow
O
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1182
Financial Chronicle
climb, a total of $18,729,000 being recorded on
Feb. 20 against $18,375,000 on Feb. 13. Discounts
were off to $5,926,000 from $6,510,000. Bills bought
in the open market dropped $1,000 to $5,501,000,
while United States Government security holdings
increased $14,000 to $2,430,348,000.
Corporate Dividend Declarations
IVIDEND declarations the current week were
largely favorable and included a few of a noteworthy character. Chesapeake Corp. declared a
quarterly dividend of 75c. a share on the capital
stock, payable April 1, which compares with 63c. a
share in preceding quarters. Standard Oil of Kentucky declared an extra dividend of 25c. a share, in
addition to the regular quarterly of like amount,
payable March 15; an extra of 50c. a share was paid
Dec. 15 last. Loew, Inc., declared a dividend of 50c.
a share on the common stock, to be paid March 30,
which compares with distributions of only 25c. a
share in preceding quarters. Of an adverse nature
was the action of the Brooklyn & Queens Transit
Corp., subsidiary of Brooklyn-Manhattan Transit
Corp., which declared a dividend of only 50c. a share
on its $6 cumulative preferred stock, payable
April 1; on Jan. 2 last $1 a share was paid, while
previously quarterly distributions at the regular
rates were made.
D
The New York- Stock Market
RADING in the New York stock market was a
highly erratic affair this week, as might be
expected in a period that witnesses the appearance
of one of the most far-reaching decisions ever made
by the United States Supreme Court. The five-tofour opinion handed down at noon on Monday,
which in effect upholds the Administration, even
though it states that the gold clause suspension
resolution was unconstitutional in so far as it applies to Federal obligations, was preceded by a
period of very quiet but nervous dealings. The
effect of the opinion in Wall Street was to remove
fears of further monetary complications •beyond
those which the Administration already has saddled
upon the country. An immediate expansion of
trading occurred in the latter half of Monday's session, with prices advancing sharply. The activity
and the gains were in startling contrast with the
dull and almost motionless markets of previous
weeks. Because the railroads were fully upheld in
their objections to paying the current equivalent of
the old gold dollar, stocks of the leading carriers
advanced briskly, the gains ranging up to 10 points
at the height of the movement. Industrial, mining
and other groups swung forward more modestly, but
also on a vigorous scale. These gains, however, were
quickly modified by extensive profit-taking and
other sales, and the market closed on Monday with
gains of 1 to 2 points in most market leaders, while
in a few instances the advances amounted to 3, 4
and 5 points. Transactions on the New York Stock
Exchange for the day were in excess of 1,900,000
shares.
The share market settled down Tuesday into a
much quieter stride. There was still much confusion
regarding the ultimate significance of the Supreme
Court ruling, but it was realized everywhere that it
restored the status quo for the time being. Stock
quotations slowly declined throughout the day, and
closed at the lowest levels for the session, or about a
T
Feb. 23 1935
point lower in most active issues. Stocks of local
traction companies were marked upward, however,
owing to indications of good progress in the unification discussions. Turnover dwindled to a little more
than 1,100,000 shares. Movements on Wednesday
again were reactionary in most sections of the share
market. Utility stocks were especially weak, but
others also joined in the trend and the cumulative
recessions canceled almost all the gains recorded in
the excited trading of late Monday. There was also
a further slow subsidence in the amount of trading.
Nor was there much change in conditions on Thursday. In that session utility stocks were stimulated
a little by the overnight announcement of an unchanged dividend rate by the American Telephone &
Telegraph Co., but the gains were small. Railroad
issues and industrial stocks remained soft, and total
transactions again declined. The markets were
closed yesterday in observance of Washington's
Birthday.
In the listed bond market the effect of the gold
clause suit ruling also was quite pronounced. United
States Government securities moved higher and
attained best levels on record for almost all issues.
This trend was again in decided evidence on Thursday, when the Treasury indicated that March
quarter-date financing would be confined to refunding maturities. Railroad bonds were very strong
after the Supreme Court opinion was handed down,
but a large part of the improvement was canceled
in a reaction on Wednesday. The tone of the market, however, was rather good in most sessions.
Commodity markets followed trends that duplicated
those in stocks rather closely. An upward surge
resulted late Monday, notwithstanding brief suspension of trading on the Chicago Board of Trade. But
quotations of grains, cotton and other commodities
again receded Tuesday and Wednesday. The effect
of the decision in the foreign exchange market was
to lower the quotation for the dollar in terms of
the gold currencies. Business indices, in these circumstances, played only a minor part in determination of the trend. Steel-making for the week ending
to-day was estimated by the American Iron and
Steel Institute at 49.1% of capacity against 50.8%
last week. Production of electric energy throughout
the country for the week ended Feb. 16 was 1,760,562,000 kilowatt hours against 1,763,696,000 kilowatt hours in the preceding week. Car loadings of
revenue freight were reported for the week to Feb. 16
at 581,981 cars by the American Railway Association against 592,560 cars in the previous week.
As indicating the course of the commodity markets, the May option for wheat in Chicago closed
on Thursday at 97%c. as against 97%c. the close on
Friday of last week. May corn at Chicago closed
/8c. as against 86%c. the close on
on Thursday at 857
Friday of last week. May corn at Chicago closed
on Thursday at 51c. as against 51%c. the close on
Friday of last week. The spot price for cotton here
in New York closed on Thursday at 12.65c. as
against 12.65c. the close on Friday of last week.
Domestic copper closed on Thursday at 9c., the same
as on Friday of last week.
In London the price of bar silver was 25 3/16
pence per ounce as against 24 13/16 pence per ounce
on Friday of last week, and spot silver in New York
/
4c. In the matter of the foreign
at 551/
4c. against 543
exchanges, cable transfers on London closed on
Thursday at $4.871/
4 as against $4.871/
2 the close on
Volume 140
Financial Chronicle
Friday of last week, while cable transfers on Paris
closed on Thursday at 6.62y4c. as against 6.591/
2c. on
Friday of last week. On the New York Stock Exchange 182 stocks reached new high levels for the
year, while 127 stocks touched new low levels. On
the New York Curb Exchange 93 stocks touched
new high levels, while 79 stocks touched new low
levels. Call loans on the New York Stock Exchange
remained unchanged at 1%.
On the New York Stock Exchange the sales at
the half-day session on Saturday last were 353,410
shares; on Monday they were 1,911,190 shares; on
Tuesday, 1,104,010 shares; on Wednesday, 966,050
shares; on Thursday, 700,982 shares; Friday was
Washington's Birthday, and a holiday. On the New
York Curb Exchange the sales last Saturday were
81,990 shares; on Monday, 284,110 shares; on Tuesday, 186,268 shares; on Wednesday, 158,890 shares,
and on Thursday, 150,540 shares.
The stock market on Monday of this week, in
keeping with the decision rendered by the Supreme
Court with respect to the gold clause cases, rose
sharply upward, but as the week progressed the
market slumped back into its old routine and closed
yesterday irregularly lower. General Electric
closed on Thursday at 231/
2 against 237
/
8 on Friday
of last week; Consolidated Gas of N. Y. at 163
4
against 17%; Columbia Gas & Elec. at 514 against
5%; Public Service of N. J. at 21% against 23%;
J. I. Case Threshing Machine at 57% against 56%;
International Harvester at 39/
1
2 against 41; Sears,
Roebuck & Co. at 34% against 351/
2; Montgomery
Ward & Co. at 26% against 26%; Woolworth at
555
/
8 against 541/
2; American Tel. & Tel. at 1041
/
4
against 104, and American Can at 119 against 119.
Allied Chemical & Dye closed on Thursday at 137
against 137/
1
2on Friday of last week; E. I. du Pont
de Nemours at 95% against 95; National Cash Register A at 16% against 16½; International Nickel at
237
/
8 against 23%; National Dairy Products at 167
/8
against 161/
2; Texas Gulf Sulphur at 341/
2 against
35%; National Biscuit at 29 against 281/
2; Continental Can at 72 against 70%; Eastman Kodak at
121/
1
2 against 1201/
2; Standard Brands at 173
/
8 exdiv. against 17%; Westinghouse Elec. & Mfg. at 39%
against 39%; Columbian Carbon at 77% against
75%; Lorillard at 2034 against 20%; United States
Industrial Alcohol at 393
4 against 381/
2; Canada
Dry at 131/
2 against 131/
2; Schenley Distillers at 27
against 257
/
8, and National Distillers at 28%
against 28.
The steel stocks were more or less steady for the
week. United States Steel closed on Thursday at
35% against 36 on Friday of last week; Bethlehem
Steel at 293
4 against 29%; Republic Steel at 13%
against 131/
2, and Youngstown Sheet & Tube at 18
against 1734. In the motor group, Auburn Auto
closed yesterday at 231/
2 against 24 on Friday of
last week; General Motors at 307
/8 against 311/
8;
Chrysler at 391/
8 against 391/
8, and Hupp Motors at
21/
2 against 2%. In the rubber group, Goodyear
Tire & Rubber closed on Thursday at 22% against
23 on Friday of last week; B. F. Goodrich at 101%
against 1014, and United States Rubber at 14%
against 15.
The railroad shares were irregularly changed for
the week. Pennsylvania RR. closed on Thursday at
2034 against 211/
8 on Friday of last week; Atchison
Topeka & Santa Fe at 43% against 433
/
8; New York
Central at 16% against 161/2; Union Pacific at 99
1183
against 9934; Southern Pacific at 153
4 against 15%;
Southern Railway at 111/
2 against 113
/
8, and Northern Pacific at 17% against 17/
1
2
. Among the oil
stocks, Standard Oil of N. J. closed yesterday at
40/
1
2 against 405
/
8 on Friday of last week; Shell
Union Oil at 67
/8 against 67
/8, and Atlantic Refining
at 24% against 3434. In the copper group, Anaconda Copper closed on Thursday at 10% against
101/
2 on Friday of last week; Kennecott Copper at
167
/8 against 17; American Smelting & Refining at
/
8, and Phelps Dodge at 155
371/
8 against 357
/
8
against 151/
8.
European StocklMarkets
RADING on stock exchanges in the principal
European financial centers was dull this week
in all departments save American issues and gold
mining shares. There was little activity at London,
Paris and Berlin in the respective securities of
domestic origin. At London, however, the unofficial "street" market became suddenly active late
Monday, when news of the United States Supreme
Court decision on the gold clause cases was received.
Prices of Anglo-American trading favorites were
whirled upward rapidly and the movement continued
for a time on Tuesday. Gold mining stocks were
sharply better in London and Paris, but the American development had little effect otherwise. On the
London market an attitude of extreme caution prevailed, owing to the pepper and shellac speculative
collapses, and fruitless demands in the House of
Commons, Tuesday, for an investigation of speculative engagements in tin. Movements were irregular on the Paris Bourse, notwithstanding overwhelming support of the Flandin Government by the
Chamber of Deputies. Disintegration of the gold
bloc was seen in a cessation of support of the Italian
lira by the Bank of France, on Wednesday. This
incident caused renewed uncertainty regarding the
future of the gold standard. Nor were diplomatic
developments considered at all satisfactory, as negotiations by the British, French and German Governments to secure European peace made little progress. There was also some concern regarding a
possible conflict between Italy and Abyssinia, which
has resulted in heavy liquidation of Italian Government bonds on the market in Rome.
Dealings on the London Stock Exchange during
the official trading period on Monday were quiet
with changes small. British funds improved a little,
while industrial securities proved irregular. International issues were generally lower. After the official close, however, the news of the Supreme Court
decision on the gold clause suits reached London,
and excited traders gathered in Shorter's Court, behind the Bank of England, and bid prices of AngloAmerican stocks upward. Gold mining stocks also
were in eager demand. Early on Tuesday, profittaking dominated the Exchange and a little uncertainty resulted. But the offerings were readily
absorbed and the tone was generally firm. British
bonds continued their slow recovery from the
lowered quotations of last week, and most industrial
stocks also were firm. Anglo-American stocks and
the gold mining issues slowly climbed back to the
levels recorded late the previous night in unofficial
dealings. Activity diminished on Wednesday, and
the trend of prices also was uncertain. British funds
held up rather well, but there were as many gains
as losses in the domestic industrial issues. Some of
T
i184
Financial Chronicle
the gold mining securities resumed the advance, but
Anglo-American stocks dipped owing to the unfavorable overnight reports from New York. The fortnightly settlement on Thursday caused a little nervousness in that session, but adjustments were made
without unfortunate incidents. British funds and
industrial stocks dipped, but foreign securities improved.
On the Paris Bourse the price changes on Monday
were uniformly unfavorable. Quotations were
lowered in rentes, French stocks and international
securities and the moves were attributed chiefly to
nervousness regarding the American gold clause
litigation. Uneasiness regarding the business situation in France and reports of possible defections
from the gold bloc also served to disturb the French
market. There was very little activity Tuesday,
notwithstanding the gold clause decisions. Prices
moved slowly upward, as the gold clause rulings apparently had been discounted by the preceding recessions. Some of the international issues listed on
the Bourse showed sizable gains, but French stocks
and rentes were very little better. After an uncertain opening on Wednesday, prices started upward,
owing to a general belief that the Bank of France
soon would reduce its discount rate in accordance
with the desires of the French Treasury. Rentes
gained appreciably, and French equities also improved, but international securities were dull. The
tone was soft in a quiet session at Paris Thursday,
but losses were small.
The Berlin Boerse was dull and lower in the initial
session of the week, despite the week-end announcement of a new standstill agreement on German
credits. Movements were small and a few gains
were interspersed among the losses, but all changes
were unimportant. Conditions were not much
changed on Tuesday, when the main trend again
was toward lower levels. Heavy industrial issues reflected better demand than other stocks, while fixedinterest securities were virtually unchanged. There
was a slight increase of activity on Wednesday and
the better demand for securities was reflected in
numerous small gains, but the closing was uncertain.
Business was very dull on the Boerse Thursday, and
price changes were unimportant.
Foreign Suits on Gold Bonds
THOUGH the Supreme Court opinions on the
gold clause suits answered a good many questions last Monday, some doubts on a few aspects of
the problem seem still to be entertained. Reports
from overseas suggest that British holders of American bonds with gold clauses, and to a lesser degree
the French holders of similar obligations, are hopeful of eventual recovery in due accord with the
strict terms of the contracts. In a London dispatch
of Tuesday to the New York Times it is remarked
that British holders of United States Government
gold bonds will meet within a fortnight in order to
consider legal action for full recovery. A special
committee,formed eighteen months ago to safeguard
the interests of British holders of American issues,
will study the full text of the Supreme Court's opinion in the hope that some chance for redress exists.
It is recognized in London that foreign holders of
United States Treasury obligations could not
bring suit in American courts on this basis, but
diplomatic representations seem to be regarded as
a possibility in some quarters. The London market
N
Feb. 23 1935
as a whole, however, regards such moves as foredoomed to failure, and it may be added that a similar
opinion prevails in informed circles in New York.
Paris dispatches state that French citizens hold
considerable sums of gold certificates and gold
clause bonds of American origin, on which payment
in the gold equivalent is desired. But it was indicated officially on Tuesday that French banks
will not handle any claims of this nature.
German Standstill Agreement
TN a conference at Berlin which began Feb 4
I and ended Feb. 16, representatives of banks concerned in the standstill agreement on German credits
agreed to renew the arrangement for a further year
from Mar. 1 1935 at interest rates slightly lower
than those current for the year soon ending. F. C.
Tiarks, of Great Britain, acted as Chairman of the
Berlin conference, while American representatives
were F. Abbot Goodhue, President of the Bank of
the Manhattan Co.,and Harvey D. Gibson, President
of the Manufacturers Trust Co. The banking institutions of Czechoslovakia, France, Great Britain,
Holland, Italy, Sweden, Switzerland and the United
States that have short-term credit lines outstanding
in the Reich all were represented. In the course
of the current yearly agreement the total of standstill credits was reduced, a statement said, from 2,538,000,000 marks to 2,007,000,000 marks, the latter
figure including availed-of credits totaling 1,734,000,000 marks. When the standstill agreements were
first found necessary in 1931, the total was 6,300,000,000 marks. On credits extended to German
banks the interest rate for the next year is reduced
14%, while on the other credits the reduction is
about 1/2%. A separate statement issued by the
American delegates at the meeting was somewhat
more optimistic than the joint statement of the
whole conference, which emphasized the deterioration of Germany's external trade and exchange position and remarked that the free exchange at the disposal of the Reichsbank may be reduced by disappearance of Germany's favorable trade balance.
The statement by the American delegates, made
available here by Siegfried Stern, Vice President
of the Chase National Bank, recommended that all
the 47 American banks adhering to last year's credit
agreement become parties also to the new agreement. Satisfaction was expressed over reduction of
the American credits by 520,000,000 marks, or from
about 900,000,000 marks to 430,000,000 marks during the current agreement year. Conditions probably will not permit a similarly heavy reduction in
the coming standstill year, it was pointed out, as the
difficult foreign exchange situation of Germany has
made it necessary for all creditors to accept a postponement of capital repayment in their own currencies. Provision was made, however, for a substantial reduction of unavailed-of credit lines, and
any use to be made of these hereafter will be confined to financing foreign trade in necessary commodities, while the type of bills so drawn will comply with the eligibility requirements of the Federal
Reserve Banks. The reduction of interest in the
case of American banks was said to amount to a
little less than 1/2%. During the various sessions
some 25 points were discussed, and all were settled
to the satisfaction of all concerned. In conclusion
the statement said: "The marked improvement in
German business internally as reported by the Ger-
Volume 140
Financial Chronicle
man bankers' committee and the excellent handling
of its difficult foreign exchange situation by the
Reichsbank encouraged the feeling that the time
may not be far distant when further yearly credit
agreements will no longer be necessary, thereby enabling trade and finance again to be conducted upon
a more normal basis."
1185 _
In London and Paris no secret was made over
the disappointment felt regarding the German reply.
The suggestion for direct conversations with the
British Government was viewed as an attempt to
drive a wedge between Britain and France, and it
was promptly made known that Foreign Secretary
Sir John Simon intends to visit Paris as soon as the
way has been prepared by diplomatic exchanges.
Some of the inconsistencies of the Anglo-French
invitation began to appear and it was admitted that
the Reich made excellent use of them. "Germany
was confronted by proposals that, while gravely reiterating a determination not to recognize unsanctioned rearmament by Germany, nevertheless invited her co-operation in an air pact of mutual assistance by means of an air force she is not supposed
to possess," a London report of Sunday to the New
York "Times" said. "Germany as gravely expressed
her readiness to employ her air forces as a deterrent
against disturbers of the peace, thus accepting the
acknowledgment that she has an air force," the
dispatch added. It was made known in London
Tuesday that no British Ministerial visit to Germany is contemplated for the time being. French
views, expressed informally on Tuesday, are to the
effect that the aerial convention proposed in the
Anglo-French note forms a part of the whole scheme
of European security and is not an isolated project
to be accepted without agreements on other matters.
In some London reports, meanwhile, it is stated
that Britain, France and Italy definitely have joined
forces to keep the peace in Europe. Confidence
will be restored more fully if Germany enters the
accord, it is remarked, but the other three countries
in any event will continue to co-operate.
Disarmament Negotiations
XPECTATIONS of any progress whatever
toward an international agreement on disarmament have dwindled to very modest proportions
in the three years that the General Disarmament
Conference had discussed this subject, but even the
modest expectations remaining seem to be destined
for disappointment. A special committee of 22 Governments met at Geneva on Feb. 14 to resume work
and it was agreed that the American proposal for
supervision and control of arms traffic would be
the basis of discussion. But the agreement came to
an end right there. An unlooked for stand by Lord
Stanhope, the British delegate, made it immediately
apparent that no real measures for armaments control or limitations are to be anticipated from the
American proposal. Lord Stanhope spoke about the
"alleged" evils at present associated with the trade
in arms, and proposed to omit two of the three sections of the American proposal. Hugh R. Wilson,
American Minister to Switzerland, explained again
the "threefold project for the regulation of arms
traffic and manufacture, the establishment of a
supervisory body and publicity of expenditure." But
Earl Stanhope objected to the supervisory body and
to budget publicity, and he was joined by the Italian
delegate. A further difference appeared on Tuesday, when the problem of civil aviation came up for
Saar Agreements
consideration. Since commercial airplanes can be
converted easily into military craft, the British
ROGRESS was made this week by French and
delegate urged inclusion of both types in any conGerman representatives in their efforts to
trol plan. But Mr. Wilson opposed this on the settle remaining problems connected with the transground that American and European aviation con- fer of the Saar area to Germany on March 1, and it
ditions differ, and he suggested that varying sys- is hoped in Europe that all questions can be settled
tems might be worked out to fit the conditions.
without calling the League of Nations Council into
special session. Acting with the assistance of the
European Diplomacy
special League Saar Commission, which is meeting
LOW progress, at best, is to be expected in the in Italy, the French and German Ambassadors to
European diplomatic negotiations resulting that country signed on Monday a series of accords
from the Anglo-French invitation to Germany to regulating such matters as the transfer by France
join in an air defense pact, re-enter the League of to Germany of mines, railroads and other property,
Nations and sign Eastern and Central European continuance of private and social insurance of
mutual defense accords. The German response to French citizens in the Saar, and transfer of the
the invitation, made orally last week by Foreign administrative machinery. On the same day the
Minister Konstantin von Neurath to the British and customs barrier of the Saar Basin was transferred
French representatives in Berlin, was paraphrased from the German to the French border. Just before
in a formal reply, of which the text was issued in the customs transfer was effected huge quantities
Berlin Feb. 15. It expressed gratification over the of French products poured into the area. A conapproach and a willingness to examine all questions, trary movement of the French francs circulating in
but makes no mention of the League or the Eastern the Saar seems still to be in progress, and much inLocarno and Central European proposals. The pro- terest is expressed in the question of the final
posed air convention, however, is viewed warmly in amount of that currency to be made available to
the German reply, which suggests direct exchanges the German authorities on the date of formal transof views between Germany and Great Britain. The fer of sovereignity. The Bank for International
note also contains a blunt reference to the abandon- Settlements agreed to undertake the necessary arment by the heavily armed States of disarmament, rangements for liquidation of the French francs
as prescribed by existing treaties. This communica- remaining in the territory and Basle reports this
tion was brief and carefully worded, with the ob- week state that some francs already are being revious intention of gaining all possible concessions ceived by the institution. "But there is evidence,"
and giving as few as possible. In this respect, of a dispatch to the New York "Times" says, "that a
course, it differed little from the general run of good many Saarlanders have been quietly salting
diplomatic communications.
away their francs in Switzerland, thus avoiding both
E
P
S
1186
Financial Chronicle
Feb. 23 1935
a loss and German exchange restrictions." Germans advanced in civilization and better equipped with
who took refuge from the Nazi regime in the last
year or two are continuing to move over the border
into France, and some Saarlanders who dislike
Fascism are augmenting this movement.
Italo-Abyssinian Rift
ATTALIONS of Italian Fascist troops began to
move from Naples and Messina toward Italian
Somaliland and Eritrea last week, and the movement was continued all this week on a large scale,
indicating that the border dispute between Italy and
Abyssinia shows no great promise of peaceful settlement. Direct negotiations were continued at the
Ethiopian capital, Addis Ababa, for delineation of
a neutral border zone. The Abyssinian Government,
obviously concerned regarding the Italian troop
movements, announced on Monday that the negotiations have been concluded, subject to adjustments on
two points. One of these points involves the inclusion in the Abyssinian delegation of some foreign
officers now in the service of that country, while
the other concerns access to the neutral zone. Official circles in Rome indicated on Tuesday, however, that they considered the Abyssinian conditions unacceptable, and it was said that Italy, in
consequence, may find it necessary to take "precautionary measures of a stronger nature." The Fascist
Grand Council considered the problem in a protracted meeting which ended last Saturday, and approval was expressed of the Italian Government's
activities in foreign affairs. In a speech before the
Council, Premier Benito Mussolini praised the virility of the men leaving for the "African front" and
urged them to be ready for "any eventuality." It
was indicated that 70,000 Fascist militia, as well as
thousands of other citizens and war veterans, have
volunteered for service in East Africa. The Abyssinian Envoy in Italy stoutly disclaimed Ethiopian
responsibility for the rift in relations between the
two countries and declared simply last Saturday
that his countrymen are ready to defend their homes
with their lives.
The Abyssinian Government appealed to the
League of Nations for adjustment of the dispute
when it first began to develop last December, but
the Council never made public its findings of last
month and suggested direct negotiations. Every
effort now is being made to avoid any further Council session, according to Geneva dispatches, in the
fear that the dispute might again be presented for
consideration. Joseph A. C. Avenol, Secretary-General of the League, went to Paris in order to urge
the French Government to reach understandings
with Germany on Saar problems without calling a
Council meeting. "M. Avenol is understood to be
very anxious to avoid this Council meeting because
of the difficulty of keeping from it the Italo-Abyssinian conflict, which he wants to keep out of Geneva
as much as possible," a report to the New York
"Times" stated. In a London dispatch of last Saturday to the same journal it was remarked that the
present trouble may blow over, temporarily. "But
the writing on the wall plainly indicates the approaching fate of the historic Ethiopian people,"
the report continued. "It is only a question of time
before they will be absorbed, like all the rest of the
native African peoples, their territory divided and
themselves put under the rule of white races further
B
the tools of war than they are."
Japan and China
HILE Japanese penetration of the Chinese
Province of Chahar is proceeding, every
effort is being made by Japanese authorities to "improve" relations between Tokio and Nanking. Oriental diplomacy is a little too complex for most
Western minds, and it is still far from clear what
the ultimate effect of the current endeavors will be.
The Nanking Nationalist Government, however, has
persistently taken the view of late that the incursion
by Japanese and Manchukuoan troops into Chahar
is not a serious matter. Statements by Chinese
officials that all causes for dispute now have been
removed led some correspondents to assume that
General Chiang Kai-shek had agreed with Japan on
a free hand in Chahar in return for promises of
Japanese aid in the campaign against Chinese Communists. However that may be, it appears that
Japanese authorities are exerting all possible
pressure for an all but formal alliance between the
two countries. "China is being allowed to make up
her own mind," a Japanese official in Shanghai said
rather naively early this month. "We have put our
general policy in the Far East squarely before the
Chinese leaders, and the next move is theirs. They
were told that if they did not see the international
political situation in the Orient as we do we would
be unable to guarantee against repetition of incidents similar to the Manchurian incident of 1931,
the Shanghai clash of 1932 and the most recent
Chahar-Jehol clash. The crux of the present situation is the Chinese Government's dire financial need.
We are not offering specific assistance. They must
meet us half-way and show sincerity by evidencing
willingness to shake hands."
In a further statement by an official of the Japanese Legation at Shanghai, it was indicated that
Japan "is determined to bring about liquidation of
all the existing Sino-Japanese differences and difficulties." Temporary or evasive solutions will not
be accepted, and the past alternations between
friendly and unfriendly periods in diplomatic relations also will no longer be tolerated, the Japanese
authority said. According to Shanghai and Hongkong dispatches to the New York "Times," Japan
is ready to extend loans to the Chinese Government
up to about 300,000,000 yen, if China proves amenable to the Japanese demands. The Chinese Government, in an endeavor to allay the tension caused by
these demands, is said to have requested assurances
by Japan that there will be no aggression, but the
result of this reported request has not been indicated.
"All indications are," the Hongkong correspondent of the New York "Times" remarks, "that
Japan, in preparing against future international developments, is about to insist that China reach with
her 'a showdown without nonsense or evasions' as a
necessary safeguard for trying conclusions with Russia or other rivals." Early this week a Chinese
diplomat went to Tokio in a "private capacity," but
with the announced intention of discussing SinoJapanese relations. The diplomat, Mr. Wang
Chung-hui, stated that a political understanding
should precede economic co-operation and that
Japan should make concrete proposals.
W
Financial Chronicle
Volum* 140
Discount Rates of Foreign Central Banks
HERE have been no changes during the week in
the discount rates of any of the foreign central
banks. Present rates at the leading centers are
shown in the table which follows:
T
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
1187
tion last year stood at 81,086,740,265 francs and the
previous year at 83,373,193,470 francs. The proportion of gold on hand to sight liabilities stands this
week at 80.70%, compared with 77.65% a year ago
and 77.76% two years ago. A comparison of the
various items for three years appears below:
BANK OF FRANCE'S COMPARATIVE STATEMENT
Country
Rate in
Effect
Date
Feb.21 Established
Austria__
Belgium___
Bulgaria _ _ _
Chile
Colombia__
Czechoslovakia____
Danzig_ _ __
Denmark__
England__ _
Estonia___.
Finland__
France_..
Germany __
Greece ____
Holland__ _
PreMous
Rate
435
235
7
434
4
June 27 1034
Aug. 28 1934
Jan, 3 1934
Aug. 23 1932
July 18 1933
5
3
8
534
5
335
4
234
2
5
4
235
4
7
234
Jan. 25 1933
Sept.21 1934
Nov. 29 1933
June 30 1932
Sept. 25 1934
Dec. 4 1934
May 31 1934
Sept. 30 1932
Oct. 13 1933
Sept. 18 1933
434
3
3
234
535
415
3
5
734
3
Country
Hungary___
India
Ireland__.._
Italy
Japan
Java
Jugoslavia _
Lithuania
Norway
Poland_ _ _ _
Portugal_ _ _
Rumania
SouthAfrica
Spain
Sweden
Switzerland
Rate in
Date
Effect
Feb. 21 Established
435
335
3
4
3.65
335
5
6
334
5
5
435
4
6
235
2
Previola
Rate
Oct. 17 1932
Feb. 16 1934
June 30 1932
Nov. 26 1934
July 3 1933
Oct. 31 1934
Feb. 1 1935
Jan. 2 1934
May 23 1933
Oct. 25 1933
Dec. 13 1934
Dec. 7 1934
Feb. 21 1933
Oct. 22 1932
Dec. 1 1933
Jan. 22 1931
5
4
334
3
3
4
634
7
4
6
535
6
5
634
3
234
Foreign Money Rates
IN LONDON open market discounts for short bills
on Thursday were 5-16@/% as against 5-16@
on Friday of last week,and 5-16@%% for threemonths' bills as against 5-16@M% on Friday of last
week. Money on call in London on Thursday was
3'4.%. At Paris the open market rate remains at
17
4%, and in Switzerland at 11
/%.
Bank of England Statement
HE statement of the Bank for the week ended
Feb. 20, indicates a gain of £43,442in gold holdngs raising the total to another new high, £193,065,176
which compares with £191,982,187 a year ago. As
this bullion gain was attended by a contraction of
£1,685,000 in circulation, reserves rose £1,729,000.
Public deposits increased £7,964,000 and other
deposits fell off £6,519,935. The latter consists of
bankers accounts which declined £6,993,462 and
other accounts which rose £473,527. The reserve
ratio is up to 49.25% from 48.61%; a year ago it
was 53.45%. Loans on government securities fell
off £1,167,000 while those on other securities increased £914,842. The latter includes discounts and
advances which decreased £945,045 and securities
which increased £1,859,887. No change was made in
the 2% discount rate. Below are the items with
comparisons of previous years:
T
BANK OF ENGLAND'S COMPARATIVE STATEMENT
Feb. 20
1935
Feb. 31
1934
Feb. 22
1933
Feb. 24
1932
Feb. 25
1931
£
£
£
£
£
Circulation
373,261,000 364,654.687 356,249,195 346,404.346 347,665,402
Public deposits
26,305,000 29,328,823 26,184,171 14,125,133 16.221.280
Other deposits
135,726,405 134,049.512 133,308,625 100,122,413 92.383,915
Bankers'accounts- 94,826,182 98,267,926 98,299,763 67,924,058 59.071.685
Other accounts_
40.900,223 35,781,586 35,008,862 32,198,355 33,312.230
Governmit securities 81,600,413 73.337,032 86,380,258 33.675.906 36,734,684
18,836,842 20,912,055 29,574,752 48,813,862 36,167,667
Other securities
DIset. & advances- 6,997,552 8,130,748 11.948,353 11,492.953 8.517,846
Securities
11,839,290 12,781,307 17,626,399 37,320,909 27,649.821
Reserve notes & coin 79,805,000 87,327.500 61,733,664 49,943,427 53,927.189
Coln and bullion__ _. 193,065,176 191,982,187 142,982,859 121,347,773 141,59'3,550
Proportion of reserve
53.45%
49.25%
43.71%
38.70%
to liabilities
49.65%
Rank mt.,
2%
2%
2%
5%
3%
Changes
for Week
Gold holdings
Credit bals. abroad_
a French commercial
bills discounted_ _
b Bills brought abr'd
Adv.against secursNote circulation
Credit current accts.
Proportin of gold on
band to sight liab
Feb. 15 1935
Feb. 16 1934
Feb. 17 1933
Franca
Francs
Francs
Francs
+8,055,684 81,891.299.283 74,434,915,823 81.320,100,990
No change
9,757,130
15,399,379 2,767.7.54,516
—228,000,000 3,569,055,879 5,327,233,701 2,739,339,666
950,481,324 1.055,838,540 1,635,479,414
No change
—1,000,000 3,139,832,405 2,999,470,793 2.609,296.051
—483,000,000 82.077,122,130 81,086,746,265 83,373,193,470
+236,000,000 19,400,749,067 14,778,269,731 21,326,525.641
+0.21%
80.70%
77.65%
77.76%
a Includes bills purchased in France. b Includes bills discounted abroad.
Bank of Germany Statement
HE Bank of Germany statement for the second
quarter of February shows another increase in
gold and bullion, the current advance being 135,000
marks. The total of gold now stands at 79,979,000
marks in comparison with 333,307,000 marks last
year and 822,383,000 marks the previous year. An
increase appears in reserve in foreign currency of
21,000 marks, in bills of exchange and checks of
45,074,000 marks,in silver and other coin of 2,549,000
marks, in notes on other German banks of 2,145,000
marks, in other assets of 1,581,000 marks, in other
daily maturing obligations of 22,393,000 marks and
in other liabilities of 115,312,000 marks. Notes in
circulation reveal a contraction of 88,427,000 marks.
Circulation now aggregates 3,437,043,000 marks, in
comparison with 3,294,851,000 marks a year ago
and 3,179,744,000 marks two years ago. The proportion of gold and foreign currency to note circulation is now at 2.46%; last year it was 10.4%. Advances and investments register decreases of 1,381,000 marks and 846,000 marks, respectively. Below
we furnish a comparison of the different items for
three years:
T
REICHSBANK'S COMPARATIVE STATEMENT
Changes
for Week
Assds-Gold and bullion
Of which depos. abroad
Reserve In for'n curr
Bills of exch. and checks
Sliver and other coin_ _ Notes on 0th. Ger. bks.
Advances
Investments
Other assets
Liabilities—
Notes in circulation_ _
Other daily matur. oblig
Other liabilities
Propor. of gold & forin
curr. to note circurn.
Feb. 16 1935 Feb. 15 1934 Feb. 15 1933
Reichsmarks
Reichsmark., Reichsmarks Reichsmark,
+135,000
79.979,000 333,307,000 822.383,000
No change
21,204,000
22,624,000
38,116,000
+21.000
10,052,000
4,667,000
97,970,000
+45,074,000 3,574,279,000 2,675,608.000 2.317.899.000
+2,549,000 240,455,000 283,494,000 303,788,000
+2,145,000
11,961,000
11.157,000
11,366.000
—1,381,000
62,525,000
68,397,000
76,741,000
—846,000 755,543,000 652,042,000 400,826,000
+1,581,000 765,977,000 607,228,000 839,215,000
—88,427,000 3,437,043,000 3,294.851,000 3,179,744,000
+22.393,000 796,648,000 426,135,000 355,348.000
+115,312,000 519,646,000 243,148,000 767,672,000
+0.07%
2.46%
10.4%
28.9%
New York Money Market
EALINGS in the New York money market remained this week on the same diminutive scale
previously current, notwithstanding the burst of
Bank of France Statement
stock market activity that followed the Supreme
HE Bank of France statement for the week Court decision on the gold clause litigation. There
ended Feb. 15 shows an increase in gold holdings were no changes of any kind. The United States
8,055,684
francs. The Bank's gold now aggre- Treasury sold, on Monday, a further issue of disof
gates 81,891,299,283 francs, in comparison with count bills due in 182 days, and accepted tenders
74,434,915,823 francs a year ago and 81,320,100,990 were at an average discount of 0.117%, computed
francs two years ago. French commercial bills on an annual bank discount basis. Call loans on
discounted and advances against securities register the New York Stock Exchange held at 1% for all
decreases of 228,000,000 francs and 1,000,000 francs, transactions, whether renewals or new loans, but
while creditor current accounts rose 236,000,000 some trades were recorded every day in the unoffrancs. Notes in circulation record a contraction of ficial street market at 3
4%. Time loans were
483,000,000 francs, bringing the total of notes out- 34@1% for all maturities, and changes also were
standing down to 82,077,122,130 francs. Circula- lacking in commercial paper and bankers' bill rates.
T
D
1188
Financial Chronicle
Feb. 23 1935
of the British Exchange Equalization Fund and
operations of the United States Treasury. In terms
of French francs, or gold, sterling is decidedly easier
and has been steadily moving down for the past few
months, as reflected in the London check rate on
Paris, which on several occasions during the past
week threatened to go below 73.50 francs to the
pound. Formerly before abandonment of the gold
standard the rate was around 124 francs to the pound.
The range for sterling this week has been between
$4.86 and $4.89% for bankers' sight bills, compared
with a range of between $4.8734 and $4.885A last
week. The range for cable transfers has been between
$4.86N and $4.893/2, compared with a range of
between $4.873A and $4.8834 a week ago. On
Friday, Washington's birthday, there was no market
in New York.
Bankers' Acceptances
The following tables give the mean London check
has
acceptances
bankers'
prime
HE demand for
on Paris from day to day, the London open marrate
been keen this week, but there has been only
price and the price paid for gold by the
gold
ket
a small supply of paper available. Rates are unStates:
United
changed. Quotations of the American Acceptance
MEAN LONDON CHECK RATE ON PARIS
Coucnil for bills up to and including 90 days are Saturday, Feb. 16
73.882
73.84 I Wednesday,Feb. 20
Thursday, Feb. 21
73.781
73.969
3-16% bid and M% asked; for four months, 5-16% Monday, Feb. 18
U.S.
__Holiday
22
Feb.
Friday,
73.749
Tuesday, Feb. 19
bid and N.% asked; for five and six months, Y2%
PRICE
GOLD
MARKET
LONDON OPEN
bid and %% asked. The bill buying rate of the Saturday, Feb. 16
1425. 834d. I Wednesday, Feb. 20___142s. 9%cl.
I Thursday, Feb. 21...._142s. 11d.
142s. 7d.
1 2% for bills running Monday, Feb. 18
New York Reserve Bank is /
Friday,
Feb. 22__FlolidayU.S.
142s.104.
Tuesday, Feb. 19
for
rfom 1 to 90 days and proportionately higher
PRICE PAID FOR GOLD BY UNITED STATES (FEDERAL
longer maturities. The Federal Reserve banks'
RESERVE BANK)
35.00
Wednesday,Feb. 20
35.00
holdings of acceptances decreased from $5,502,000 to Saturday, Feb. 16
35.00
Thursday, Feb. 21
35.00
Monday, Feb. 18
foreign
for
acceptances
of
holdings
Feb. 22__Holiday U.S.
$5,501,000. Their
35.00
Friday,
Tuesday, Feb. 19
Open
$366,000.
at
unchanged
remain
correspondents
The Supreme Court decisions and a wide volume of
market rates for acceptances are nominal in so far comment thereon will be found on other pages. As
as the dealers are concerned, as they continue to frequently pointed out here, the fact that these
fix their own rates. The nominal rates for open decisions were pending has had a marked influence
market acceptances are as follows:
on the trend of foreign exchange for many weeks,
SPOT DELIVERY
the market with a listless nervousness which
infusing
—180 Days— —150 Days— —120 Days—
Asked
Bid
Asked
Bid
Asked
Bid
severely curtailed trading. It may be recalled that
%
Prime eligible bills
last week Secretary of the Treasury Morgenthau
—90Days— --80Days-issued a statement to the effect that the United States
Asked
Bid
Asked
Bid
Asked
Bid
X
316
he
Prime eligible bills
was prepared to manage the external value of the
FOR DELIVERY WITHIN THIRTY DAYS
dollar as long as necessary. While the market was
34% bid
Eligible member banks
Si% bid
Eligible non-member banks
dissatisfied because the statement brought no positive assurance that the United States price for gold
Discount Rates of the Federal Reserve Banks
of $35 an ounce would be continued, it created a
HERE have been no changes this week in the certain degree of confidence, so that the gold bloc
rediscount rates of the Federal Reserve banks. currencies moved up to points where it would be no
The following is the schedule of rates now in effect longer necessary for banks to send gold to this side
for the various classes of paper at the different in order to strengthen the European units. At the
Reserve banks:
same time considerable gold was sold in London
DISCOUNT RATES OF FEDERAL RESERVE BANKS
from private hoards and from the open market, and
Rate in
has since arrived or is en route to New York to take
Date
Previous
Effect on
Federal Reserve Bank
Rate
Establtshed
Feb. 21
advantage of the United States price. It is under234
Feb. 8 1934
2
Boston
stood that more than £5,000,000 was engaged in
2
Feb. 2 1934
134
New York
Jan. 17 1935
255
2
Philadelphia
London on the strength of Mr. Morgenthau's
Feb. 3 1934
234
2
Cleveland
Jan. 11 1935
3
234
Richmond
statement.
Jan. 14 1935
234
2
Atlanta
Jan. 19 1935
234
2
Chicago
On Saturday last sterling and all the gold bloc
Jan. 3 1935
234
2
St. Louis
3
Jan. 8 1935
234
Minneapolis
were firm in an unusually dull half-day
currencies
1934
a
Dec. 21
234
Kansas City
3
Jan. 8 1935
234
Dallas
Continentals ruled well above the
The
session.
1934
234
16
Feb.
2
Ban Francisco
lower gold points, but a discouraging feature was
Course of Sterling Exchange
seen in the way in which sterling was slipping in
TERLING exchange, the dollar, and all curren- terms of the French franc,declining steadily toward
cies were widely swayed this week by the United the lowest value in gold ever reached. As sterling
States Supreme Court's gold clause decision. The receded in terms of francs, the London open market
quoted rates for sterling in terms of the dollar never- gold price moved steadily up until it is now only a
theless held near the ranges which have prevailed a shade under the highest on record, 143s. 3d. on
since the beginning of February. Sterling may be Oct. 11. The weakness of sterling with respect to
characterized as firm in terms of the dollar, or rather the franc, which became manifest last week is attriboth units have been held relatively steady with buted to the disturbance in the London commodity
respect to each other through the active intervention markets.
New York Money Rates
EALING in detail with call loan rates on the
Stock Exchange from day to day,1% remained
the ruling quotation all through the week for both
new loans and renewals. The market for time money
has shown no change this week. There have been
some unconfirmed reports of some 90-day to fourmonths' offerings at 4
3 % but no actual transactions
3 @1%
have been reported. Rates are nominal at 4
for two to five months and 1@13i% for six months.
The market for prime commercial paper has been
quite lively this week. The demand has been brisk
and paper has been fairly abundant. Rates are
l% for extra choice names running from four to six
Y
months and 1% for names less known.
D
T
T
S
Volume 140
Financial Chronicle
Following the Supreme Court's decisions on Monday, the foreign currencies rose sharply to the
highest levels in some time, and the dollar went to
a slight discount in London and Paris. The pound
rose to $4.893/2, the best price since Jan. 14, though
it receded toward the close of the day to around
$4.893, up 23/i cents from Saturday's closing prices.
The franc was bid up from 6.583Ac to 6.60, .6.61,
6.62, and even to 6.64. (New dollar parity is 6.62).
Belgas went close to new dollar parity and so did
Holland guilders. Active intervention on the part
of the exchange equalization funds and of the Bank
of France was said to account for a subsequent drop
in the rates which developed in quite a reactionary
market on Tuesday, after which all units became
steady at levels above the lower gold points but well
below new dollar parity.
The general feeling seems to be that from now on
the foreign exchanges will be steadier, and the hope
has been expressed by prominent financial authorities
in all centers that the prospects for stabilization of
currencies, especially of the pound and the dollar,
are improved. However, it must be admitted that
many of these optimistic expressions are derived from
a certain necessary habitual politeness which men
occupying conspicuous stations feel obliged to
exercise. It cannot be denied that since the wild,
almost runaway markets which were witnessed on
Monday a note of hesitancy seems to have crept
into the foreign exchange market. This is due
mainly to conflicting circumstances arising on the
one hand out of conditions here and on the other
from conditions in London.
Financial authorities, responsible business executives, and foreign exchange bankers seem not to be
assured that radical measures will not be adopted by
the Washington Administration. The heavy outlays and appropriations, the extension of restrictions
on business activity, and the continued radical talk
favoring inflationary policies, the impending changes
in the banking laws, and many other factors are
viewed as impediments to business expansion here.
By Wednesday the impression had become general
that the majority opinion of the Supreme Court was
only a nominal victory for the Administration
forces and that it was in effect a moral defeat for the
Government especially when considered in conjunction with the minority report.
In London the market has been upset for several
weeks owing to the disclosures of speculation in
commodity markets, which have resulted in nervousness on the Continent with respect to the pound and
withdrawal of funds from London to Paris, Amsterdam, Brussels, and other points, and it is known that
a considerable volume of Continental funds has left
London for New York. The commodity speculations in London seem to have occasioned some
degree of financial difficulty to certain old-established English houses. The situation is further aggravated by the fact that there is an apparent setback
in general business in Great Britain. According to
sound authority in the London market, the bursting
of the speculative bubble there appears to be one of
the consequences of the easy money policy which has
been pursued in England. This authority says:
"Although money rates never have been so low,
and money is a drug on the market,there has been no
real demand for business purposes. At the same time
the capital markets have been restricted to new issues
1189
for foreign account. This has led probably to the
use of surplus funds in gambling in stocks and commodities. It may be simply a coincidence that all
of the developments, trade, speculative, political,
and financial, have come at one time. On the other
hand,it may be symptomatic of a more deeply rooted
situation."
The London clearing banks are discussing the
question of rates charged for call money to the discount market. Three months ago they reduced the
rate to the record low level of %, but rates have
fallen still further since then and the difficulties of
the discount market have increased, rather than
diminished. The banks are reluctant to make a
further cut, fearing a further decline in discount
rates, and the impression prevails that they will
make a concerted attempt to raise bill rates. In the
middle of the week call money against bills in London
was Y
i%, two-months' bills 5-16% to /%, threemonths' bills /%,four-months' bills/% to 7-16%,
and six-months' bills 7-16% to 327(:).
All the gold available in the London open market
this week was taken for unknown destinations,
chiefly, it is believed, for transport to the United
States. On Saturday last there was so taken £219,000,
on Monday £258,000, on Tuesday 078,000, on
Wednesday £151,000, and on Thursday E122,000.
The Bank of England statement for the week ended
Feb. 20 shows an increase in gold holdings E43,442.
the total standing at £193,065,176, which compares
with £191,982,187, and with the minimum of
£150,000,000 recommended by the Cunliffe Committee
At the Port of New York the gold movement for the
week ended Feb. 20, as reported by the Federal
Reserve Bank of New York, consisted of imports
of $29,145,000, of which $18,470,000 came from
France, $8,998,000 from England and $1,677,000
from Canada. There were no gold exports. The
Reserve Bank reported a decrease of $1,298,000
in gold earmarked for foreign account. In tabular
form the gold movement at the Port of New York
for the week ended Feb. 14, as reported by the
Federal Reserve Bank of New York, was as follows:
GOLD MOVEMENT AT NEW YORK,FEB.I4—FEB.20,INCLUSIVE
Imports
618,470,000 from France
8,998,000 from England
1,677,000 from Canada
Exports
Nona
629,145,000 total
Net Change in Gold Earmarked for Foreign Account
Decrease: 81.298,000
Note—we have been notified that approximately 8303,000 of gold was
received from China at San Francisco.
The above figures are for the week ended Wednesday evening. On Thursday $29,206,400 of gold was
received of which $27,460,300 came from England
and $1,746,100 from France. There were no exports
of the metal or change in gold held earmarked for
foreign account. Friday (Feb. 22), Washington's
Birthday, was a holiday no report was issued.
Canadian exchange continues relatively steady,
ranging in terms of the United States dollar from a
slight discount to a slight premium. On Saturday
last Montreal funds were at a discount of Yi% to
3-16%, on Monday at a discount of M% to 1-16%,
on Tuesday and on Wednesday at par, and on
Thursday from a discount of V.
a % to par. On Friday,
Washington's Birthday, there was no market in
NewaYork.
1190
Financial Chronicle
Referring to day-to-day rates, sterling exchange on
Saturday last was steady. Bankers' sight was
$4.86%@$4.873j; cable transfers, $4.87@$4•873'.
On Monday sterling moved up sharply. The range
was $4.86@$4.89% for bankers' sight and $4.863/s@
$4.893/ for cable transfers. On Tuesday sterling was
steady. Bankers'sight was $4.88%@$4.88%; cable
transfers $4.883/
2@$4.89. On Wednesday the pound
was steady in dull trading. The range was .88%@
$4.88% for bankers' sight and $4.883/
2@$4.88% for
cable transfers. On Thursday sterling continued
steady and dull. The range was $4.87%@$4.88%
for bankers' sight and $4.873@$4.883/ for cable
transfers. On Friday, Washington's Birthday, there
was no market in New York. Closing quotations on
Thursday were $4.87 for demand and $4.873' for
cable transfers. Commercial sight bills finished at
/
8; 90-day bills at $4.86;
$4.87; 60-day bills at .863
documents for payment (60 days) at $4.86%, and
seven-day grain bills at $4.87%. Cotton and grain
for payment closed at $4.87.
Continental and Other Foreign Exchange
HE main factors affecting the French franc and
the Continental currencies,in consequence of the
resolution of doubts respecting the gold clause
decisions,have been outlined above in the review of
sterling exchange. Paris bankers feel that in consideration of the declaration of Secretary Morgenthau
no further exports of gold from France are likely for
the time being. It is pointed out that previous
exports might have been avoided if the United States
Equalization Fund had been employed sufficiently
at once to prevent convulsive movements in the
dollar. However, French bankers are not complaining about the gold exports, feeling that the Bank of
France is in an exceptionally strong position. Last
year the gold reserves rose 7,000,000,000 francs. It
is noteworthy that in the same period circulation rose
only 1,160,000,000 francs. It did not rise further
because the hoarding of bank notes almost ceased and
with the diminished activity bank notes effectually
in circulation sufficed for current requirements.
They assert in Paris that in reality French circulation
is saturated with notes. It is also pointed out that
the bank notes already existing were not all issued as
representing gold reserves, a part representing bill
discounts, and these have decreased 1,777,000,000
francs since a year ago. This part of the circulation,
therefore, decreased by a like amount, thus partly
compensating for bank notes created to represent
gold entering the bank.
It is known that M. Flandin is meeting powerful
opposition to his financial program. This opposition
seems to be centered in the council of the Bank of
France. The council is strongly opposed to the Treasury's borrowing from the Bank of Franceon short
Treasury bills. It is reported in well informed circles
that the council seeks to compel the Government to
introduce legislation amending the statutes of the
Bank of France or expressly authorizing the bank to
make short-term loans against Treasury bills. By
this action responsibility would fall upon the Government if its new policy should result in permanent
heavy indirect lending by the Bank of France to the
Government. The fear is genuine among certain
regents that the capacity of the Paris market to
absorb Treasury bills cannot be developed materially
unless the public begins de-hoarding to a greater
extent than it has thus far.
T
1,1
Feb. 23 1935
There is some talk to the effect that the Bank of
France may reduce its rediscount rate, which has
been at 23/% since May 311934, when it was reduced from 3%. In view of the opposition which
M. Flandin is receiving from the Council of the Bank
on financial policies, it seems not altogether probable
that this discussion of lower rediscount rates originates in responsible quarters.
The Bank of France statement for the week ended
Feb. 15shows an increase in gold holdings of 8,055,684
francs. Total gold holdings now stand at 81,891,299,283 francs, which compares with 74,434,915,823
francs a year ago and with 28,935,000,000 francs
when the unit was stabilized in June 1928. The
ratio stands at the high point of 80.70%, compared
with 77.65% a year ago, and with legal requirement
of 35%.
German mark exchange continues in a confused
state. A recent cable sent by F. Abbot Goodhue,
President of the Bank of the Manhattan Co., and
Harvey D. Gibson, President of the Manufacturers
Trust Co., as American representatives at the new
standstill agreement conferences, said that the
credits covered by the agreement had been reduced
from 6,300,000,000 reichsmarks in July 1931, to
approximately 1,734,000,000 reichsmarks as of Dec.
31 1934. .The American portion of the total at the
close of the year was 430,000,000 reichsmarks, or
approximately $172,000,000. According to a cable
received by S. Stern, Vice-President of the Chase
National Bank,a cut in interest rates, a substantial
reduction in unavailed-of credit lines, and a promise
.of co-operation by German interests in developing
the use of the registered mark for travel purposes,
benevolent remittances, &c. were some of the outstanding features of the new standstill agreement
arrived at by the foreign creditors and German
bankers in Berlin on Friday last.
M. Louis Franck, Governor of the National Bank
of Belgium, declared at the recent semi-annual
meeting of the shareholders of the bank that the
policy followed by the European gold bloc has
insured the benefit of currency stability to a considerable portion of the world. "This," he said, "is
the only solid basis for business." In an impartial
analysis of last year's events, he said that monetary
manipulations did not bring a solution to the crisis.
The Belgian trade balance, on the other hand, has
been practically balanced and if the volume has
diminished, Belgium now is the fifth exporting nation
in the world as compared with 10th formerly.
The following table shows the relation of the
leading European currencies still on gold to the
United States dollar:
France (franc)
Belgium (belga)
Italy (lira)
Switzerland (franc)
Holland (guilder)
Old Dollar New Dollar
Parity
Parity
3.92
6.63
13.90
23.54
5.26
8.91
19.30
32.67
40.20
68.06
Range
Thie Week
6.57g to 6.64
23.30 to 23.49
8.45 to 8.53
32.28 to 32.59
67.47 to 68.05
The London check rate on Paris closed on Thursday at 73.65, against 73.93 on Friday of last week.
In New York sight bills on the French center finished
on Thursday at 6.623', against 6.59% on Friday of
last week; cable transfers at 6.6234., against 6.593,
and commercial sight bills at 6.599, against 6.57.
Antwerp belgas finished at 23.40 for bankers' sight
bills and at 23.41 for cable transfers, against 23.33
and 23.34. Final quotations for Berlin marks were
40.27 for bankers' sight bills and 40.28 for cable
transfers, in comparison with 40.12 and 40.13.
Volume 140
Financial Chronicle
1191
Italian lire closed at 8.46 for bankers' sight bills and The British imports were valued at 230,000,000 pesos,
and at 8.47 for cable transfers, against 8.46% and as compared with American imports valued at
8.47%. Austrian schillings closed at 18.93, against 151,800,000 pesos. The dollar value of the imports
18.85; exchange on Czechoslovakia at 4.193
%,against gives Britain an even larger lead, because virtually
4.183j; on Bucharest at 1.013/
2, against 1.00%;.on all British imports were paid for at the official low
Poland at 18.97, against 18.90 and on Finland at rate of exchange, while a large part of the American
2.16, against 2.163/
2. Greek exchange closed at imports was paid for at the free market rate of
0.933/i for bankers' sight bills and at 0.94 for cable around 25c. per peso. In this way the Argentine
transfers, against 0.93 and 0.933/2.
Government officially gave British importers a price
advantage of approximately 15% over American
XCHANGE on the countries neutral during the importers. An anomalous situation has been created
war was, of course, affected by the gold clause by an addition to the recent exchange decree of
rulings as, in the case of exchange on Holland and Brazil liberating into the free market 65% of the
Switzerland, gold bloc countries, firmness followed in nation's export receipts hitherto controlled by the
sympathy with the movement of the French franc. Bank of Brazil. The addition creates a distinction
Word from the financial centers of both countries is between imports that are considered bona fide and
to the effect that a greater degree of steadiness in all entitled to receive exchange cover and imports not
currencies is to be expected as a result of the Supreme so viewed. The tendency in all the South American
Court's decisions. Some fears are expressed in these countries is to expand the free market.
centers, however, over the weakness in the pound in
Argentine paper pesos closed on Thursday, official
terms of gold and there seems to have been some quotations, at 325
/i for bankers' sight bills, against
heavy withdrawal of Amsterdam money from 325A on Friday of last week; cable transfers at 32%,
London and its reshipment, in part at least, to New against 323. The unofficial or free market close
York. The immediate threat to the gold bloc in the was 25/, against 25%. Brazilian milreis, official
event of a considerable drop in the pound is not from rates, are 8.12 for bankers' sight bills and 83 for
any loss of gold but from a retardation in world cable transfers, against 83/g and 83. The unofficial
trade should British business show further decline. or free market close was 63
%. Chilean
%, against 63
The metallic reserve of these countries is strong exchange is nominally quoted on the new basis at
enough to stand any demands which might con- 5.20, against 5.20. Peru is nominal at 23.25, against
ceivably be made. Switzerland, for example, after 23.37M.
losing a net of 561,350,000 Swiss francs in its gold
XCHANGE on the Far Eastern countries is
reserve over the past two years has now a gold reserve
affected in only a minor degree by the Supreme
of 1,883,137,339 Swiss francs against note circulation of 1,291,513,000 francs. At the end of December Court's gold clause decisions. M. Juichi Tsushima,
1929, the Swiss bank had a gold reserve of 581,- Vice-Minister of Finance of Japan, gave the opinion
831,804 francs to support a note issue of 945,908,800 that the decision will not greatly affect the economic
francs. However, expectation of a poor showing for situation of the United States or the world. However,
sterling in terms of gold bloc currencies is hardly M. Hisa-akira Hijikata, Governor of the Bank of
justified in view of the fact that however firm the Japan, declared that the Japanese expect to be
franc in the spot market, with sterling at a discount, benefited by the decision in so far as it points to
future sterling is at a considerable premium in terms greater stability in the exchanges. A recent dispatch
of gold bloc currencies. Sterling is of such world- states that the Japanese having public and private
wide importance that major breaks tend to have a obligations totaling $570,000,000 outstanding in the
deflationary effect upon gold prices and it is this United States, Japan welcomed the decision on gold,
tendency which causes anxiety in the neutral coun- which it is estimated by the Asahi will be worth a
tries with respect to the present ease of sterling in 5% dividend to the electric companies. Recommendations have been made to the Chinese Governterms of French francs.
Bankers'sight on Amsterdam finished on Thursday ment that China's silver regulations be relaxed in
at 67.84, against 67.58 on Friday of last week; cable part. An announcement from Shanghai confirms
transfers at 67.85, against 67.59 and commercial rumors of impending action by the monetary adsight bills at 67.82, against 67.56. Swiss francs visory commission. The recommendations conclosed at 32.48 for checks and at 32.49 for cable cerned duty-free re-export of newly imported silver
transfers, against 32.35 and 32.36. Copenhagen at any time within three months after importation.
checks finished at 21.77 and cable transfers at 21.78, N is understood that China has entered the worldagainst 21.76 and 21.77. Checks on Sweden closed silver market as a purchaser in competition with the
at 25.12 and cable transfers at 25.13, against 25.13 United States in an effort to alleviate the silver
and 25.14; while checks on Norway finished at 24.47 scarcity. So far as China is concerned Dr. Ko
and cable transfers at 24.48, against 24.50 and 24.51. Liang Yih, Chinese Consul-General at New York,
Spanish pesetas closed at 13.71 for bankers' sight recently declared that the United States Governbills and at 13.72 for cable transfers, against 13.66 ment's eventual decision on silver may be even more
important internationally than the Supreme Court's
and 13.67.
pronouncement on the gold clause.
XCHANGE on the South American countries
Closing quotations for yen checks on Thursday
presents no new features of importance from were 28.48, against 28.44 on Friday of last week.
the past several weeks. These currencies are affected Hong Kong closed at 45 5-16®45 7-16, against
chiefly by the movement of sterling exchange. The 44/®44 7-16; Shanghai at 37
9-16@37%, against
Argentine Government's official trade statistics 36A®36%; Manila at 49.95, against 49.95; Singashowed that last year's imports from Great Britain pore at 5732, against 57 8; Bombay at 36.98, against
were 51% in excess of those from the United States. 36.94, and Calcutta at 36.98, against 36.94.
E
E
E
Financial Chronicle
1192
Foreign Exchange Rates
URSUANT to the requirements of Section 522
of the Tariff Act of 1922, the Federal Reserve
Bank is now certifying daily to the Secretary of the
Treasury the buying rate for cable transfers in the
different countries of the world. We give below a
record for the week just passed:
P
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922
FEB. 16 1935 TO FEB. 21 1935, INCLUSIVE
Noon Buying Rate for Cable Transfers in New York
Value in United States Money
Country and Monetary
Unit
Feb. 16
Feb. 19
Feb. 18
Feb. 20
Feb. 21
Feb. 22
EUROPE.187958• .187708* .188708* .188525* .188491*
Austria,schilling
.233434 .232915 .234261 .233980 .234123
Belgium, belga
012750. .012750* .013000* .012750 .012750*
Bulgaria, lev
Csechoslovakia. krone .041828 .041739 .041989 .041931 .041953
.217533 .217308 .218068 .218039 .217958
Denmark, krone
England. pound
4.870250 4.865000 4.884583 .885166 4.881166
sterling
.021545 .021545 .021562 .021583 .021558
Finland. markka
065975 .065833 .066234 .066141 .066182
France, franc
Germany. reichsmark .401185 .400421 .402771 .402482 .402542
.009347 .009317 .009385 .009365 .009380
Greece, drachma
676100 .674650 .678700 .677721 .678038
Holland. guilder
.297875* .298375* .298250* .298000* .297500*
Hungary, pengo
.084829 .084587 .084846 .084546 .084650
Italy. lire
.244768 .244583 .245416 .245408 .245275
Norway. krone
.188820 .188440 .189575 .189380 .189380
Poland, zloty
.044310 .044302 .044383 .044370 .044375
Portugal. escudo
.010040 .010040 .010055 .010050 .010080
Rumania,leu
.136721 .136410 .137257 .137075 .137128
Spain. peseta
.251150 .250945 .251850 .251795 .251636
Sweden, krona
Switzerland. franc_ _. .323682 .323000 .324942 .324539 .324750
.022712 .022681 .022850 .022818 .022800
Yugoslavia, dinar
1101.1.
ASIADAY
ChinaChore* (yuan) dorr .366250 .365833 .369583 .372083 .372083
Hankow(yuan)dol'r .366688 .366250 .370000 .372500 .372500
Shanghai(yuan)dorr .368093 .365781 .369583 .371875 .372083
Tientsin (yuan)dorr .366666 .366250 .370000 .372500 .372500
.441875 .442500 .445625 .444375 .449375
Hongkong. dollar
.367925 .367337 .388625 .368700 .368531
India. rupee
Japan. yen
.283900 .283570 .284400 .284420 .284505
Singapore (S. S.) dol'r .569375 .570000 .571250 .571250 .571250
A USTRA LASIAAustralia, pound
3.860312*3.867500.3.873437.3.873593.3.869375*
New Zealand, pound.3.883750* 3.890625* 3.898875* 3.896875* 3.892500*
AFRICASouth Africa, pound 4.820250* 4.824250*4.833750*4.834500* 4.830500*
NORTH AMER.Canada. dollar
.997239 .997005 .999687 .999244 .999835
Cuba. MOO
999200 .999200 .999150 .999200 .999200
Mexico. peso (silver). .277500 .277833 .277500 .277500 .277500
Newfoundland. dollar .994812 .994375 .997187 .996625 .997125
SOUTH AMER.Argentina, peso
.324462* .324366* .325162. .325237* .325037*
Brazil. milreis
.081275* .081850* .081225* .081225* .081225*
Chile. peso
051000* .051250* .050625* .050625* .050625*
Uruguay. peso
.802100* .806000* .804850* .804550* .804550*
Colombia, peso
.571400* .576400* .573100* .571400* .571400.
•Nominal rates: firm rates not available.
Gold Bullion in European Banks
HE following table indicates the amount of gold
bullion (converted into pounds sterling at par
of exchange) in the principal European banks as of
Feb. 21 1935, together with comparisons as of the
corresponding dates in the previous four years:
T
Banks of-
1935
£
England_ _ _ 193,065,176
France a.._ 655,138,394
2,938.750
Germany I).
90,729.000
Spain
Italy
62.927,000
67,870,000
Netherlands
72,523,000
Nat. Belg'm
69,032,000
Switzerland
Sweden_
16,017,000
7,395,001)
.
Denmark.
6,852,000
Norway
1934
£
191,982.187
595,479,326
15,495.800
90.467,000
76,575.000
69,450.000
78.154,000
67,548.000
14,566,000
7,398,000
6,574,000
1933
£
142,982.859
650,560.808
39.213,350
90,354.000
63,263.000
85,636.000
74,743.000
88,965,000
11,440,000
7,399,000
8,015,000
1932
£
121.347,773
590,518.450
43,706.700
89,942.000
60,854,000
71.800,000
72,465.000
62,377,000
11,437,000
8,160,000
6,559,000
1931
£
141,592,550
446,862.339
102,899,400
96.614.000
57,308,000
37.172,000
40.424,000
25,726,000
13,352,000
9,552,000
8,134,000
Total week_ 1.244,487,320 1,213,871,313 1,262,572.017 1.139,166,923 079,636,289
Prey. week_ 1.244.542.882 1.223.121.201 1.254.333.343 1.131.458.834 978.937.669
a These are the gold holdings of the Bank of France as reported in the new form
of statement. b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year is £1,060.200.
The Great Decisions
The decisions which were rendered by the Supreme
Court on Monday in the gold clause cases will undoubtedly go down into history as among the most
important that the Court has ever announced.
Whatever may be thought of the soundness of the
conclusions stated or of the reasoning by which the
conclusions were reached, the law of the subjects
has been stated by the tribunal of last resort, and
we know, on most of the points at least, where we
stand and how to proceed. A crucial part of the
Administration's program has been sustained, and
it will be natural for the Administration to hope that
other parts may also pass judicial test. Yet it may
Feb. 23 1935
well be doubted whether the thoughtful citizen,
reflecting as time goes on upon what has been done,
will be able to view the outcome without serious misgivings. A monetary and financial situation which
might have produced some temporary dislocation and
confusion in business has, indeed, been cleared up,
but at the cost of a wholesale invasion of property
rights which had always been regarded as secure,
and of a deliberate and flagrant breach of faith which
casts its shadow over every promise which the Government may hereafter make.
The elaborate opinions in which Chief Justice
Hughes announced the decisions of a divided Court
do not need extended summary. The first two
cases, those of Norman vs. the Baltimore & Ohio
Railroad Co. and the United States vs. the Bankers
Trust Co., involved the validity, in the case of bonds
of two railroad corporations, of the Joini Resolution
of June 5 1933, abrogating the so-called gold clauses
as "against public policy," and providing that every
such obligation, theretofore or thereafter issued,
whether it contained the gold clause or not, "shall
be discharged upon payment, dollar for dollar, in
any coin or currency which at the time of payment
is legal tender for public and private debts." A third
case, that of Nortz vs. the United States, raised the
same question with regard to gold certificates of
the United States Treasury, while in a fourth, that of
Perry vs. the United States, the property concerning
which payment was at issue was a gold bond of the
Fourth Liberty Loan.
In the cases of the privately issued obligations,
the majority opinion held that the contracts in question "were not contracts for payment in gold coin
as a commodity, or in bullion, but were contracts for
the payment of money," that contracts "cannot fetter
the constitutional authority of the Congress" and
that when they deal "with a subject-matter which
lies within the control of the Congress, they have a
congenital infirmity," and that the Constitution
does not deny to Congress "the power expressly to
prohibit and invalidate contracts although previously
made, and valid when made. when they interfere
with the carrying out of the policy it is free to adopt."
Whether, under the circumstances in which the
Joint Resolution was enacted, the gold clauses constituted "an actual interference" with the policy
of Congress depended upon the judgment of Congress
regarding economic conditions and questions of fact.
In addition. Congress was entitled to take into consideration the volume of gold clause obligations outstanding. "It is apparent," the opinion declared,
"that if these promises were to be taken literally,
as calling for actual payment in gold coin, they would
be directly opposed to the policy of Congress, as they
would be calculated to increase the demand for gold,
to encourage hoarding, and to stimulate attempts at
exportation of gold coin." Further, "the devaluation of the dollar placed the domestic economy upon
a new basis" and established a new standard by
which payments of all kinds were to be met, and it
would work a "dislocation of the domestic economy"
if debtors under gold clauses must pay $1.69 in
currency "while respectively receiving their taxes,
rates, charges and prices on the basis of one dollar
of that currency."
"We are not concerned," the Court continued,
"with consequences in the sense that consequences,
however serious, may excuse an invasion of consti-
Volume 140
Financial Chronicle
tutional right. We are concerned with the constitutional power of the Congress over the monetary system of the country and its attempted frustration."
It was accordingly held that Congress had a right to
choose a uniform monetary system and reject a
dual one, and that gold clauses in private contracts
and in those of States and municipalities, if regarded
as valid, would limit Congressional authority and
must therefore be set aside.
The situation in the Perry case was different, the
question there being the right of the United States to
repudiate its own contracts in the case of bonds declared to be payable in gold. On this point the opinion of the majority was a sweeping and emphatic
rejection of the Government's contention. "To say
that the Congress," in borrowing money on the
credit of the United States,"may withdraw or ignore
that pledge is to assume that the Constitution contemplates a vain promise, a pledge having no other
sanction than the pleasure and convenience of the
pledgor." There was doubtless "great need of
economy" in March 1933, "but Congress was without power to reduce expenditures by abrogating contractual obligations of the United States," for that
would be not economy but "an act of repudiation."
The Joint Resolution of March 3, accordingly, "in
so far as it attempted to over-ride the obligation
created by the bond in suit, went beyond the Congressional power."
Unfortunately for Mr. Perry, however, the Court
was unable to see that he had suffered any actual
damage. The change in the weight of the gold dollar, it was held, did not necessarily entail a loss of
the amount in currency which was claimed in excess
of the face value of the gold bond. "On the contrary, in view of the adjustment of the internal economy to the single measure of value as established by
the legislation of the Congress, and the universal
availability and use throughout the country of the
legal tender currency in meeting all engagements,
the payment to the plaintiff of the amount which he
demands would appear to constitute not a recoupment of loss in any proper sense but an unjustified
enrichment." As the Court of Claims cannot consider claims for nominal damages, the plaintiff was
left without recourse.
The immediate effect of the decisions is, of course,
to avert the complications which would have resulted if bonds of private corporations, States and
municipalities had to be paid on the basis of $1.69
in present currency for each dollar of face value in
gold, and to relieve the Government of the same difficulty regarding its own issues where actual loss because of devaluation cannot be shown. It is possible that such actual loss could be shown if the currency should at any time be seriously depreciated by
inflation, and that the decision may therefore act
as a deterrent upon further inflationary action. It
is also possible the foreign holders of United States
Government securities, resident in countries in which
the currency is depreciated, may be able to show
actual losses substantial enough to reopen the case
in the courts. Reports from Washington, however,
point to the likelihood of early legislation designed to
prevent any appeal to the courts at any point which
the Supreme Court decisions may seem to have left
open.
Associate Justice Stone, in a separate opinion on
the Perry case, raised another question which ought
1193
to giveithe Administration some concern. After
deploring the refusal of the United States to "fulfill
the solemn promise" of its bonds, and declaring that
he could "not escape the conclusion, announced by
the Court, that in the situation now presented the
Government, through the exercise of its sovereign
power to regulate the value of money, has rendered
itself immune from liability for its action," he called
attention to a possible consequence of discriminating,
as the majority opinion had done, between the greater
obligation of the gold clause in Government bonds
than in bonds in private hands, and added: "I am not
persuaded that we should needlessly intimate any
opinion which implies that the obligation may so
operate, for example, as to interpose a serious obstacle
to the adoption of measures for stabilization of the
dollar, should Congress think it wise to accomplish
that purpose by resumption of gold payments, in
dollars of the present or any other gold content less
than that specified in the gold clause, and by the reestablishment of a free market for gold and its free
exportation." It may be added that a decision upholding repudiation is likely of itself to impair confidence abroad in any stabilization proposals that
the United States may make, since if the most solemn promises are to be broken for policy's sake in
one direction there will be fear lest they be broken in
another.
Neither the reasoning of Chief Justice Hughes's
opinion, nor the imposing array of precedents which
were cited, can suffice to dull the force of the scathing criticism to which Associate Justice McReynolds,
speaking for himself and Justices Van] Devanter,
Sutherland and Butler, subjected the majority opinions. "The fundamental problem now presented,"
Justice McReynolds declared, "is whether recent
statutes passed by Congress in respect of money and
credits were designed to attain a legitimate end, or
whether, under the guise of pursuing a monetary
policy, Congress has really inaugurated a plan primarily designed to destroy private obligations, repudiate national debts, and drive into the Treasury
all gold within the country in exchange for inconvertible promises to pay, of much less value." The
plan, he concluded, is "of the latter description."
If the power to destroy gold clauses exists, "the
destruction of all obligations by reducing the standard
gold dollar to one grain of gold, or brass or nickel or
copper or lead, will become an easy possibility."
"Obligations cannot be legally avoided by prohibiting the creditor from receiving the thing promised."
It will not be easy, he said, for the millions of holders
of Government bonds to understand why no damages
are recognized, but the Government had no difficulty in calculating exact losses when it appropriated
upwards of $23,000,000 to cover the loss sustained by
the Philippine Government, and nearly $7,500,000
to cover the losses of Government officials abroad.
"For the Government to say, we have violated our
contract but have escaped the consequences through
our own statute, would be monstrous. In matters
of contractual obligations the Government cannot
legislate so as to excuse itself. . . . Loss of
reputation for honorable dealing will bring us unending humiliation; the impending legal and moral
chaos is appalling."
The country may well ponder these words of Justice McReynolds when it thinks of the 5 to 4 decision
which the Supreme Court has reached. It may well
1194
Financial Chronicle
Feb. 23 1935
temper its criticism of the European Governments Federal supervision should be extended to "certain
which, although they have flatly refused to pay their natural resources, such as coal, oil and gas," to the
war debts to this country, have not yet denied the end that waste may be eliminated, output convalidity of the promises which they gave. The de- trolled, employment stabilized, and "ruinous price
cision will do nothing to enhance regard for the Su- cutting and inordinate profits" alike denied. "We
preme Court. For the time being, however, the must make certain," the message continues, "that
decision is a part of the law of the land. It is for the the privilege of cooperating to prevent unfair compeople to say how long the situation which it upholds petition will not be transformed into a license to
strangle fair 'competition under the apparent sincshall continue.
tion of the law," and "small enterprises especially
Extending the Recovery Act
should be given added protection against discriminaThe long-awaited message on the revision and ex- tion and oppression." Finally, attention is called
tension of the National Industrial Recovery Act to "the obvious fact that the way to enforce laws,
which President Roosevelt sent to Congress on Wed- codes and regulations relating to industrial pracnesday falls into two parts. The first sounds the tices is not to seek to put people in jail," and that
praises of the Act and the National Recovery Ad- "other and more effective means" of dealing with
ministration in terms which at a number of points violations are needed.
Mr. Roosevelt has evidently taken note of some
will seem effusive to those who realize how badly,
of
the criticisms which the administration of the
enforcing
and
its
the
Act
in a number of respects,
machinery have broken down. The Act is com- Recovery Act has called out, and his message shows
mended as "the biggest factor" in the re-employment a sincere desire to correct them. It seems clear
of "approximately 4,000,000 people," although noth- that he recognizes the development of monopolies
ing is said about the failure of unemployment, to which has taken place under the codes, the serious
shrink very much during the past year. Thanks to difficulties which the codes and their application
"the opportunities and assurances of collective bar- have created for small businesses, and the popular
gaining," a matter in which "a great advance has resentment at the policy of merciless "cracking
been made," "the pattern of a new order of indus- down" on petty offenders. Apparently, too, he has
trial relations is definitely taking shape," but no been impressed by the fact that the administrative
reference is made to trade union criticism of the way personnel has fallen short in ability, temper and
in which collective bargaining is impeded or to the accomplishment. He seems also to think that a
strikes and threats of strikes that continue to fill good deal of the principles of the anti-trust laws
the news. The problems of the consuming public ought to be put in force again, notwithstanding
have been accorded "representation and considera- that the restrictions of the acts,save as to monopoly,
tion." Some 600 codes, affecting 90% of "the cover- were waived in the Recovery Act. The remedying
able employments," have been approved, and in- of these defects and the correction of these abuses
dustry "has been freed, in part at least, from dib- will be all to the good if the Act is to continue to
honorable competition brought about not only by operate for another two years.
Nothing in the message, however, indicates any
overworking and underpaying labor, but by destrucintention
of abandoning or essentially modifying
tive business practices." The saving phrase in the
either
the
principles or the methods which the Act
least,'"
latter statement is, of course, "in part at
embodies.
On the contrary, if the recommendat3ona
to
fear
that,
as
far
as
labor
is
and there is reason
concerned, the "part" is not so large as the state- are adopted by Congress, the authority of the President will be increased and its scope enlarged. The
ment might seem to imply.
In asking Congress to extend the Act for ttvo right of the President to impose a code upon an
years from June 16 next, when it would normally industry which, in his judgment, has failed or unexpire, President Roosevelt urges a number of duly delayed to agree upon a code which it will
changes intended to strengthen the Act and widen accept, is to be cleared of doubt, and coal, oil, gaa
its operation. The codes should be co-ordinated, and any other industry which can be brought legally
procedure simplified, the administrative personnel under a definition of "natural resources" are to be
improved, and the responsibilities of all the parties subjected to Federal regulation. The regulation in
concerned made "more and more definite." The the latter case, moreover, is to extend not only to
President accordingly recommends a further defini- such obvious evils as waste and ruinous price cuttion of "the policy and standards for the administrz • ting, but also to the prevention of "inordinate
tion of the Act," together with "unquestioned profits," of whose existence the President will of
power" in the Government "to establish in any course be the judge, together with control of output
event certain minimum standards of fair competi- and employment. The whole implication of the
tion in commercial practices, and especially ade- message is that Government control of business and
quate standards in labor relations," where any in- industry, instead of being relaxed, is to be broadened
dustry "fails voluntarily to agree within itself." and intensified.
No bill accompanied the message, and the stateThe fixing of minimum wages and maximum hours
ment
that "detailed recommendations" which have
is declared to be "practical and necessary." The
prepared by "various departments and
been
right of collective bargaining on the part of emagencies,"
while "not furnishing anything like a
although
no
ployees should be "fully protected,"
precise
finished draft of legislation," were
and
clarify
either
made
the
attempt is
in the message to
meaning of the phrase or the way in which the right "available for the consideration of Congress" and
might be "helpful" in its "deliberations," seems toshall be exercised.
The "fundamental principles" of the anti-trust suggest that Congress is expected to draft its own
laws are to be "more adequately applied," to the measures. Washington dispatches, on the otherend that private monopolies may be prevented, but hand, report that bills to give effect to the Presi-
Volume 140
Financial Chronicle
dent's recommendations are not only being prepared by Government officials, but that their provisions, of which unofficial forecasts have be
given, at a number of points go far beyond nything specifically set out in the message. If past
experience is a safe guide, there seems no reason to
doubt the general accuracy of these inspired predictions. We are undoubtedly to have, if Congress is
willing, a revised Industrial Recovery Act "bigger
and better" in the sense that it will cover more
ground and cement more firmly the Executive grip.
The hope of any important tempering of control lies
in the increasingly critical attitude of Congress,
and the promise of investigations of the administration of the Act which may dispose Congress to
something like real independence of judgment regarding the proposals submitted to it.t
Government Ownership of Railroads
The New Dictatorship
[Editorial by DAVID LAWRENCE In"The United States News"of Feb. 11 1935.]
To make a house livable it is not necessary to rebuild it
from the foundations.
To rebuild America it is not necessary to destroy the principles of fairness and equity embodied in our written Constitution.
The Federal Government was intended as the servant and
not the master of the people.
No political autocracy in the national capital, no man
or group of men was to be permitted to control the individual fortunes of the citizens under the American system
conceived by Washington and Jefferson and perpetuated by
Lincoln.
There has been introduced in both houses of Congress a
bill which would entrust to a single commission in the
Federal Government not just temporary or emergency control but permanent jurisdiction over all holding companies
directly or indirectly related to electric light and power
and to gas companies of every sort.
And the same bill, if unchecked by the courts or by the
will of the American people expressed through their representatives in Congress, can be extended to cover every kind
of business in the United States from department stores to
retail shops, and from mining and manufacturing to pro-
The American public has always held very
strongly to the theory that more could be accomplished for human welfare by encouraging private
initiative than through Government action. Thus,
we have sought to establish a system whereby the
people would control the Government, not the Gov- fessional service.
ernment control the people. If economic freedom
Would Warp Constitution's Restrictions
vanishes, political freedom becomes nothing but a
For the theory back of the proposed legislation which is
shadow. It has, therefore, been our desire that all
aimed at holding companies in the utility field, indeed to
gainful occupations not directly connected with correct abuses that ought to be corrected by lawful and
Government service should be owned and operated constitutional methods, is for the Federal Government to
by the public. When the Government once enters assume permanent rights over commerce moving within and
a business it must occupy that field alone. No one without State lines, thus making the famous inter-State
can compete with it, and the result is a paralyzing commerce clause of the Constitution broader than it ever
monopoly.
has been under any court ruling.
Who Would Pay Railroad Taxes?
Few people realize the tremendous amount of
taxes which the railroads pay to State and smaller
units of government in the United States each year,
and the importance which these funds play in making up the local budgets and relieving real estate
owners from additional tax burdens.
The transportation lines now pay nearly one and
a half times as much in taxes as it cost to operate
the Federal Government in 1876. These taxes offer
one of the most potent reasons why Government
ownership of the railroads would not work out to
the satisfaction of the general public.
The railroads at present pay more than $658,000
a day in taxes. A tax bill of more than $240,000,000
was rendered to the American railroads for the year
1934. In the year 1876 the public thought Congress
had gone mad when it appropriated $147,714,941 to
run the governmental establishment for that fiscal
year—approximately $92,300,000 less than was
taken from the railroads in Federal, State and local
taxes 50 years later.
Twenty-five years later, in 1901, it was only necessary for Congress to appropriate $547,000,000 to run
the Government for that year—just a trifle more
than twice as much as the money now demanded
from the railroads in taxation for a year.
Every now and then some radical legislator, or
theoretical college professor, or a Socialist, or a
Communist, will noisily acclaim the virtues of Government or political ownership of the railroads.
They forget to explain, however, upon whom they
would call for the $240,000,000 now paid annually
in taxes by the railroads. Government-owned railroads, you know, do not pay taxes.
The device is an ingenious one. Electrical energy moves
across State lines. Operating companies use the electricity,
hence the owners of stocks and bonds in operating companies would become subject to inter-State commerce regulation and could only exist by sufferance of a Federal
bureau which would arrogate to itself the right to decide
which shall live and which shall die.
This is plainly in conflict with what the Supreme Court
of the United States has decided. But legislators under
the New Deal have little respect for precedents established
by the highest court in the land. They believe in legislating
first and litigating afterwards.
Unfortunately, by the time cases can be fought upward
through lower courts, the damage has been done.
Already since the agitation to destroy electric light and
power and gas holding companies became acute—in the last
few weeks of 1934—exactly a billion dollars in values have
been destroyed.
Sayings for Old Age May Be Wiped Out
This writer is in receipt of many pitiful letters from persons of advanced age, widows and others whose sole dependence is on the income from these securities, many of which
they bought 20 and 30 years ago when public utilities were
declared gilt-edged by State governments and investing institutions of all kinds.
Indeed, on an economic basis most of these securities
would be gilt-edged to-day.
On a political basis, however, they are potentially worth
less and less according as the crusaders in Congress wreak
their vengeance on these holders of securities because of a
desire to create political prestige for themselves or to
respond to a mistaken theory that the country wants every
big business destroyed just because the crooks and financial
jugglers must be exterminated.
A holding company is no mysterious thing. In 1928 there
were listed on the stock exchanges 407 industrial holding
1196
Financial Chronicle
companies, and 46 railroad holding companies and 34 utility
holding companies.
If we look around us, in almost every large city we shall
find holding companies. In a sense, any parent company
which has organized one or more subsidiaries to carry on
special lines of activity could be called a holding company.
The Scripps-Howard chain of newspapers has a holding
company; so has Mr. Hearst. It is a logical and economic
form of carrying on modern business.
Two or more individuals forming a partnership or a trust
to care for their investments could be called a holding
company.
A holding company in its simplest form is any company
that holds the stock of another.
State's Field of Regulation Being Invaded
To prevent abuses we have State laws which regulate the
behavior and operations of all corporations, whether they
operate businesses directly or indirectly.
To prevent fraud in the use of the mails across State
lines we always have had Federal statutes, though we have
not vigorously enforced them.
To prevent national monopolies we have anti-trust laws,
but these specifically state that holding companies are not
tc be interfered with unless they tend to lessen competition.
To supervise electric light and power and gas companies,
which have virtual monopolies in the cities and towns where
they operate, we have 48 State commissions. They regulate
rates and have the right to protect the investor and the
consumer.
We have lately enacted a Federal Securities Act to protect investors against misrepresentation or frauds in any
security, no matter where issued.
What, then, is the reason for this sudden assumption that
the Federal Government must usurp the powers of the States
to regulate corporations and, indeed, to declare the right to
license all businesses?
Broad Threat to Business Is Involved
Certainly the National Recovery Administration, with its
effort to control industry by licensing, came a cropper. The
American people assented for a while only in the name of
emergency. But the new holding company bill is not a
temporary affair designed to take care of an emergency
for a brief period. It is written as permanent legislation.
Under its terms, all utility holding companies must begin
in 1938 to dissolve and complete their dissolution by 1940.
The fact that for the moment the bill includes only
electric light and power and gas utilities does not mean
that all other holding companies are immune. On the contrary, a simple amendment striking out the words "electricity," "light, power and gas" could be adopted and the
pending measure would instantly apply to all manner of
businesses.
In other words, if it is constitutional to accept the proposed holding company legislation as it applies to utilities,
it will be equally valid to extend the prohibition of the
holding company to all other businesses.
Means Danger of Arbitrary Confiscation
In opposition to this it might be argued that utilities are
in the nature of public monopolies and are in a class by
themselves. True enough, but that is why the State governments have taken jurisdiction over them from the beginning.
The new Federal legislation adds nothing and subtracts
nothing from the rate-making powers, but seeks to perform
in the utility field a major surgical operation on owners
of securities.
It is, therefore, in substance, an attempt by the Federal
Government to control and, indeed, confiscate and destroy
securities because it arbitrarily conceives them undesirable.
The real issue is not rates to the consumer but ownership
of bonds and stocks. Conceivably, if holding companies are
destroyed, rates may go up due to uneconomic operations
and inadequate financing.
Has the Federal Government the right to confiscate such
property? Has the Federal Government the right to say
that two or more persons shall not own securities in any
holding company except as the Federal Government in its
kingly discretion may permit?
Examination of the draft of the new bill shows that the
lawyers who prepared it rest their entire case on the fact
that electrical energy, when crossing State lines, is interState commerce.
Hardly an important holding company but is a part of a
system of interconnection between States. That's why great
Feb. 23 1935
economies have been introduced and why electrical development has been advanced.
Even the Federal Government had to create its own holding company in the Tennessee Valley to operate across State
lines.
But is the incidental business of carrying energy across
State lines a sufficient basis for invoking the inter-State
commerce clause of the Constitution?
The Supreme Court of the United States has held that
the transportation of energy is in itself inter-State commerce but that when the energy reaches the local distributing company and is retailed to the consumers, the interState feature stops and the local regulation begins under
State law.
America Needs No More Deflation
The Federal Government, of course, has the right to set
up a commission to inquire into contracts made by operating
companies in one State to receive power from operating
companies in another State and see to it that no unreasonable charges are made.
But with these transactions in transporting electricity
across State lines the Federal Government's true authority
begins and ends.
There is no justification in law or court precedent for
the idea that because a corporation owns stock in another
company which, in turn, buys its raw materials in another
State, this gives the Federal Government the right to
blanket into inter-State commerce all transactions that are
related directly or indirectly to something which somehow
and somewhere crosses a State boundary.
The Supreme Court has ruled in a famous case that
mining in itself is not inter-State commerce or affected with
the public interest though the railroad acting as a common
carrier in transporting the same ton of coal is naturally
subject to inter-State commerce regulation.
Attention was called at the time by the Supreme Court
to the fact that by subterfuge the inter-State commerce
clause if permitted to include every business incidentally
related to commerce across State lines could be used to
break down our entire system of State government. •
This policy of legislative sabotage cannot help recovery.
It can only block it. We want no more deflation. We had
too much of it in 1931 and 1932. In fact, Mr. Roosevelt's
victory at the polls in 1932 was largely the result of the
deflation of prices brought about by a collapse of public
confidence in all values.
Would Deal Serious Blow to Recovery
If holding companies are to be destroyed in the electric
light and power industry, if gas companies are to be
separated from electric companies, if owners of securities
in operating companies who have banded themselves together for legitimate investment are to be deprived of the
fruits of their savings and their toil, then a $12,000,000,000
industry stands on the brink of disaster.
It is no comfort to say the surgeon will be careful and
will wield his scalpel with delicate skill. It is a deflationary
move when the Federal Government breaks down State
lines, brushes aside State government, and with autocratic
fanaticism sets out to deny the use of the mails or the
vehicles of trade and commerce to all who do not obey its
capricious demands.
Recovery under such circumstances is impossible. Commitments cannot be made. Employment cannot be increased while the knife of the executioner dangles over
the heads of industry. For hovering above us constantly
would be the power of the Federal Government, when the
political whim suited its zealots, to destroy other holding
companies.
The Federal Government might as well ordain that all
corporations shall hereafter cease to exist and that we
should go back to stagecoach days when the coalition of
two or more enterprising individuals in the carrying on of
business under the corporate form was relatively unknown.
The holding company legislation proposed last week is
dangerous and destructive legislation, however commendable its objectives.
It is not worthy of legislators who take an oath to support and not destroy the Constitution.
It is simply the work of those who believe in the philosophy that the end justifies the means, a philosophy that
has in the past bred tyranny and ultimately revolution.
The Federal Government is and should be the servant
and not the master of the people.
Volume 140
1197
Financial Chronicle
Gross and Net Earnings of United States Railroads for the
Calendar Year 1934
In some very important respects the experiences of
American railroads as a whole in 1934, as reflected
in their gross and net earnings, were quite the reverse of those they encountered in 1933. In keeping
with the modest improvement in general business
conditions, gross earnings of the carriers last year
were somewhat higher than in the preceding year.
But the managers were unable to translate this improvement into a gain in net earnings as well, owing
to the large increases in operating costs occasioned
by the higher prices, under the recovery effort, of
the materials purchased by the railroads and the
restoration of the wage cut which did much for a
time to improve the position. It is, indeed, a most
significant commentary on the plight in which the
railroads find themselves that all the increases in
gross revenues last year, and more besides, was
absorbed by higher operating costs, with the result
that net earnings actually decreased as compared
with 1933. The previous trend was quite different,
gross earnings in 1933 showing a small loss as compared with 1932, while net earnings were sharply
higher because of the economies which then were
found possible. There is no doubt that the adverse tendency of net earnings last year badly needs correction, but in place of the advisable ameliorative
measures, Congress last year passed the Railroad
Pension Law which will heap further charges on the
carriers if it is found constitutional in the current
test before the courts.
The comprehensive figures we now present in
order to show the results of operations last year in
comparison with those of 1933 must be interpreted
in the light of the enormous and unparalleled reductions in earnings suffered by the railroads in
the earlier years of the depression. There has been
no recovery of any consequence, so far, in either
the gross or the net earnings from the low levels
to which they dropped in the parlous years from
1929 to 1932. It is necessary to note again, as we
have on previous occasions, that in each of the
three years 1930, 1931 and 1932, the gross operating revenues showed a shrinkage running in excess
of $1,000,000,000. These losses were cumulative,
the 1930 total of revenues falling $1,014,198,837
below those for the calendar year 1929; in 1931
they fell $1,105,303,735 below those for 1930, while
in 1932 another huge recession of $1,071,798,819
took place from the 1931 figures. On top of those
prodigious declines a further small recession took
place in 1933 as against 1932, but we now have an
increase in the gross revenues of 1934 of $175,551,942
over the 1933 total. The gain now recorded in gross
is a very small offset to the severe and long-continued
decline, but it is at least a step in the right direction.
Relatively speaking, the net earnings of the railroads suffered in the long adverse period almost as
much as did the gross earnings. The one encouraging feature heretofore was the reduction of expenses
effected by the managers in their attempt to meet
the increasing difficulties. But even this feature
now is lacking, as the trend of net earnings now
has become adverse notwithstanding the increase in
the gross revenues. In 1930 the net earnings (before
the deduction of taxes) suffered a contraction of
$432,368,693; in 1931 a further drop took place in
the amount of $395,804,589, and in 1932 the fall was
$244,431,640.
The tendency of net earnings at
length became favorable in 1933, when a gain of
$126,471,121 was recorded, but we now have a
decline of $16,120,430. In other words, gross revenues in 1929 were no less than $6,339,246,882,
but even after the modest improvement recorded
last year they still amounted in 1934 only to $3,267,044,444, or hardly more than half of the aggregate five years earlier. The net earnings for 1934
were $830,442,174, against $846,562,604 in 1933
and no less than $1,798,200,253 in 1929, the latest
figure being even less than half the total current
before the depression really got under way. In the
tables which follow we show the totals for 1934 as
compared with 1933 for the full 12 months and also
furnish comparisons for the first six months and the
second six months separately.
(+) OT Dec.(—)
1933
Jan. 1 to Dec. 31—
1934
—1.765 0.73%
240.840
239,075
Miles of 146 roads
33,267,044.444 83,091,492,502 +8175,551.942 5.68%
Gross earnings
2,436,602,270 2.244,929.898 +191.672.372 8.54%
Operating expenses
+1.96%
72.62%
74.58%
Ratio of exps. to earnings- -
Net earnings
Gross earnings
Operating expenses
Net earnings
$830,442,174 $846,562,604 —$16,120,430 1.90%
First 6 Months—. —Second 6 Months
1933
1934
1933
1934
31,627,736,490 $1,413,361.745 31,639,307,954 $1,678,130,757
1.209,743,285 1,066,721,566 1,226,858,985 1,178,208,332
8417,993,205
$346,640,179
8412,448,969
3499.922,425
Segregation of the year into two half-yearly periods
discloses that gross revenues during 1934 were maintained at a fairly even rate, notwithstanding the
devastating drought that afflicted much of the
Central West and the rather sharp occasional variations in business. The gross returns for each sixmonths' period last year were slightly under the
aggregate for the final six months of 1933, but
markedly higher than for the first six months of
that year. It is thus apparent that the favorable
comparison is due very largely to the effects of the
banking crisis in March of 1933, which paralyzed
all business activities and for some months played
havoc with all lines of trade. For this reason also,
net earnings during th6 first six months of 1934
compared favorably with those of the same period
in 1933, but the comparison for the final six months
of the two years is unfavorable for 1934 to such a
degree that all the previous gains were canceled
and net revenues for the entire year placed at a
figure under even the diminutive revenues of 1933.
The variations were quite decided, as the gain in
net earnings for the first six months of 1934 was
approximately $71,353,000. But the loss in the
second six months was about $87,473,000, and we
have, in consequence, a decline of $16,120,430 in
net for the entire year, as against 1933.
These results plainly show the need for favorable
consideration by the Interstate Commerce Commission of the application for higher freight rates
presented by the Association of American Railroads
on Jan. 3 1935. It was noted at the time that
restoration of the wage cut and higher costs of
materials and supplies are increasing the operating
costs of the carriers by approximately $290,000,000
annually. The freight rate increases requested,
Financial Chronicle
however, would add only $170,000,000 annually
to the revenues of the railroads. This request for
permission to raise rates stands in some contrast,
of course, to the tendency in many areas to reduce
charges on passenger traffic and also on some classes
of freight traffic, in order to meet the growing competition of motor buses and trucks, but this matter
was taken into careful consideration when the rate
advances were requested and increases would be
effected only on freight that would not be driven to
other lines of transportation or reduced in volume
because of the increases.
There is also satisfaction to be found in some of
the recommendations regarding the railroads laid
before President Roosevelt on Jan. 30 1935 by
Joseph B. Eastman, Federal Co-ordinator of Transportation. Mr. Eastman suggests that a long step
toward the establishment of order in what he calls
the chaotic conditions of the transportation industry
could be taken through Federal assumption of control of competing modes of transportation, such as
motor transportation and water traffic. This measure long has been advocated by those who realize
the need for restoration of the credit of the railroads.
Such general regulation of transportation would form
the chief element in the plan for co-operation between
the Government and the carriers which Mr. Eastman
appears to favor in his report. A second solution
of the problem suggested in the report calls for
large-scale consolidations of the separate carriers
along regional lines, while a third and most dubious
proposal is for Government ownership and operation.
Fortunately, there seems to be little present likelihood that the country will adopt the latter expedient.
It is quite obvious, naturally,that railroad earnings
in 1934 closely reflected the course of trade and
industry in this country, the small aggregates being
due to the continued severity of the general depression. The situation as a whole doubtless was
somewhat better than in 1933, as the carloadings
of revenue freight improved 5.4% to a total of
30,785,594 in 1934 over the figure of 29,220,052 for
1933. There were some very serious adverse factors,
such as the widespread drought in the Central
West and parts of the farther West during the
summer of 1934, this disaster occasioning a reduction
in grain traffic even from the low figures current
in 1933. Most other classifications of traffic reflected some improvement, however, in the summary furnished by the American Railway Association. There were some fairly wide business swings
during 1934, but they were far less pronounced than
the variations of 1933, when the banking crisis
plunged the country into the deepest gloom. Nor
was there any such artifical rush to purchase commodities as occuried in the latter half of 1933, when
the National Industrial Recovery Act codes were
under formulation and quick advances in costs of
many products were expected and partly realized.
The flow of traffic, for these reasons, was much
steadier last year.
Month by month comparisons of revenues were
especially favorable early last year as against the
similar periods of 1933. The improvement noted
in the latter part of 1933 was carried over into the
first months of 1934, and the steadily lower trend of
both gross and net earnings since 1929 showed a
sharp reversal. The managers were still able at
that time to transform a large part of the increase
Feb. 23 1935
of $31,443,332 in gross revenues into a gain in net,
which advanced $17,284,203. The situation in
February was much the same, as the comparison
then was with the month just preceding the great
banking crisis of 1933, when checks could not be
utilized for business transactions and the entire
country waited breathlessly for developments. The
gross earnings in February of 1934 were higher by
$36,221,471 than in the same month of 1933, while
net increased $19,009,701. This result was especially satisfactory in view of severe cold and
wintry conditions in the northeastern sections of the
United States during February 1934, the railroads
in New England being put to heavy expense for
maintenance of way because of heavy snow. Nor
was the upward comparison interrupted in March,
as that month of 1933 witnessed the occurrence of
the banking crisis and an almost complete suspension
of business. Gross revenues were $75,002,520 higher
than in March 1933, while net increased $41,492,272.
Some uncertainty regarding the business trend began
to be noted in April of last year, partly because of
the lack of rainfall in a large area of the West, but
0,456,313
gross earnings of the railroads were
higher than in the same month of 1933, while net
advanced $131612,958.
Drought conditions developed on a very serious
scale during May, and the railroads also began to
suffer severely from the higher costs of material
replacements and wage increases. Although gross
revenues in that month were up $26,769,505 over
the figures for May 1933, the net revenues declined
$1,618,619. As it turned out, that month marked
a turning point in the operations of the railroads,
so far as operating costs are concerned, while gross
revenue also dropped as business conditions were
affected adversely by the spreading drought conditions. The gross revenues were only $4,482,585
higher in June than in the same month of 1933, but
expenses increased sharply and there was a decline
of $18,438,598 in net revenues. In the latter half
of the year the comparison was distinctly unfavorable
on nearly all counts. July witnessed a reduction of
gross revenues in the amount of nearly $18,000,000,
while net dropped far more sharply by close to
$31,000,000. Nor were the managers of the railroads able to cope with increased costs during
August, despite a further decrease of $14,000,000
or thereabouts in the gross revenues. The net
returns receded by about $23,000,000. The comparison remained unfavorable in September, when
gross revenues dropped about $16,600,000, while
net was off in the greater sum of approximately
$21,000,000. In the final three months of 1934 a
slow swing occurred which finally resulted in an
improvement of gross revenues in the comparison
with the months of the preceding year, but the net
showed no similar trend. In the following table we
furnish comparisons of the monthly totals for all
of 1934 and 1933:
Cross Ea nines
Length of Road
Month
1934
$
January ____ 257,719,855
February _ _ _ 248,104,297
March
292,775,785
April
285,022,239
May
281,827.332
June
282,408,507
July
275,583.678
August
282,277,699
September
275,129.512
October
292,488,478
November_. 258,829,183
December
257.199.427
1933
Inc.(+) or
Dec.(—)
$
226,278,523
211,882.826
217,773,285
224,565,928
254,857,827
277,923,922
293,341,805
296,564,853
291,772,770
293,983,028
257,378,378
245.092.327
$
+31,443,332
+36,221,471
+75,002.520
+40,458,313
+26,769,505
+4,482,585
—17,757,929
—14,288,954
—16,643,258
—1,494,550
—747,213
4.12.107.100
Per
Cent
ail-cm,&72w
bi2;m:4Cob etb4...-17
AC
Aoboa...
ma.00
1198
1934
1933
Miles
239,444
239,389
239,228
239,109
238,983
239,107
239,180
239,114
238,977
238,937
238,828
2551170
Mks
241,337
241,263
241,194
241,113
240,906
240,932
240,882
240,858
240,583
240,428
240,838
239.833
Net Earnings
Month
January
February
March
April
May
June
July
August
September
October
November
December
1199
Financial Chronicle
Volume 140
1934
1933
$
62,262,469
59,923,775
83,939,285
65.253,473
72,084,732
74,529,256
67,569.491
71,019,068
71,781,674
80,423,303
59,167,473
62.187.963
$
44,978,266
40,914,074
42,447,013
51,640,515
73,703,351
92,967,854
98,803,830
94,507,245
92,720.463
89,641,103
65,899,592
58.350.192
Dm (+) Or
Amount
$
+17,284.203
+19,009,701
+41,492,272
+13.612,958
-1,618.619
-18,438,598
-31,234,339
-23,488,177
-20,938,789
-9,217.800
-6,732.119
. +3.837.771
Dee. (-)
Per Cent
+38.43
+46.46
+97.75
+26.36
-2.20
-19.83
-31.61
-24.85
-22.58
-10.28
-10.22
+6.58
Production tendencies in the basic industries of
the country were in close accord with the revenue
returns of the railroads in 1934. For indices one
looks naturally first of all at the statistics regarding
the production of iron and steel, and there the increase over 1933 was quite substantial, though
nothing quite as marked as was the increase in the
previous year over 1932. The production of steel
ingots in the calendar year 1934 reached 25,260,570
net tons, as compared with only 22,594,079 net
tons in 1933; 13,322,833 tons in 1932, and 25,192,715
tons in 1931, but if we extend the comparison further
back it is found that in 1930 the output of steel in
the United States was 39,286,287 tons and in 1929
no less than 54,312,279 tons. The iron statistics
show similar comparisons. In 1934 the make of
pig iron was 15,911,188 gross tons, as compared with
13,212,785 gross tons in 1933 and only 8,686,443
gross tons in 1932, but in 1931 the output of iron
was 18,275,165 tons and in 1930 it was 31,399,105
tons. Turning now to the production of coal, here
we find that although the amount of coal mined
in the United States, both bituminous and anthracite, was much larger than in 1933, it still fell far
below the output in the best of earlier years. The
statistics show that 357,500,000 tons of bituminous
coal were produced in 1934, as against 333,630,533
tons in 1933 and 309,709,872 tons in 1932. In 1931,
on the other hand, the bituminous output was
382,089,000 tons, in 1930 it was 467,526,000 tons
and in 1929 534,988,593 tons, showing that the
product of the last mentioned year exceeded that
of 1934 by more than 177,000,000 tons. The production of Pennsylvania anthracite in the calendar
year 1934 was 57,385,000 net tons, as against only
49,541,000 net ,tons in 1933 and only 49,855,221
net tons in 1932. In contrast the mining of Pennsylvania anthracite in 1931 aggregated 59,646,000 tons;
in 1930, 69,385,000 tons, and in 1929, 73,828,000
tons. In other words, in these earlier years everything was on a much larger scale. The same remarks
hold true in the case of the automobile trade. The
year 1934, according to statistics compiled by the
Bureau of the Census, was the best in the industry
since 1930, 2,778,739 motor vehicles having been
turned out in 1934, as against 1,920,057 automobiles
in 1933, 1,370,678 in 1932, and 2,389,738 in 1931.
But back in 1930 3,354,870 automobiles were produced and in 1929 the output reached no less than
5,358,420 cars.
Improvement, though only of slight degree, was
shown in the building industry. According to the
tabulations compiled by the F. W. Dodge Corp.,
construction contracts awarded in the 37 States
east of the Rocky Mountains in the 12 months of
1934 represented a money outlay of $1,543,101,300,
as against $1,255,708,400 in the 12 months of 1933,
but comparing with $1,351,158,700 in the year
1932, $3,092,849,500 in the year 1931, $4,523,114,600
in 1930, $5,750,790,500 in 1929, and $6,628,286,100
•
in 1928. The monthly average of the contracts
awarded in the year under review was $128,666,000,
whereas in 1933 the monthly average was only
$104,900,000, an increase for 1934 of 28%. Only
in February and December did awards decline below
the $100,000,000-mark, and in March the total
swelled to $179,000,000. The production of lumber
in 1934 was very much larger than in 1933, but
still much below any of the earlier years. For the
52 weeks of 1934 it reached 8,152,175,000 feet for
676 mills, against 7,887,918,000 feet for the same
mills in the 52 weeks of 1933; in the 52 weeks of
1932 it reached 5,772,613,000 feet for 604 mills;
in 1931 it was 9,275,809,000 feet for 599 mills, and
in 1930 and 1929 it was respectively 14,259,762,000
feet and 18,656,465,000 feet in the case of 679 mills.
On the other hand, the grain traffic over Western
roads in 1934 not only fell far below that of 1933,
but was the smallest recorded in many years. In
the previous year the grain traffic had been very
much larger than the small movement of 1932,
though nevertheless on a greatly diminished scale
as compared with the movement in the years 1931,
1930 and 1929, in each of which in turn a heavy
shrinkage occurred. With the single exception of
barley, the movement of which ran considerably
heavier than in 1933-62,785,000 bushels, as against
55,459,000 bushels-all the different cereals in greater
or less degree contributed to the decrease, the loss
in the items of wheat and of corn (especially the
latter) having been particularly pronounced. The
receipts of corn at the Western primary markets
for the 52 weeks of 1934 reached only 192,480,000
bushels, as against 248,319,000 bushels in the corresponding 52 weeks of 1933, while the receipts of
wheat were only 206,558,000 bushels, as against
237,013,000 bushels. Adding oats and barley-the
receipts of which were only 51,429,000 bushels and
16,463,000 bushels, respectively, as compared with
99,334,000 bushels and 18,449,000 bushels-total
receipts at the Western primary markets for the
five cereals, wheat, corn, oats, barley and rye,
combined reached only 529,715,000 bushels in 1934,
as against 658,574,000 bushels in 1933, 552,290,000
bushels in 1932,752,259,000 bushels in 1931,883,587,000 bushels in 1930 and no less than 954,540,000
bushels in 1929. In the following table we give the
details of the Western grain movement,in our usual
form, for the 52 weeks of 1934 and 1933:
Wheat
Flour
Jan. 1 to
(Bush.)
(BM.)
Dec. 29Chicago1934.... 8,932,000 23,432,000
1933____ 8,751,000 12,855,000
Minneapolis42,661,000
1934._
63,759,000
1933.
Duluth23,073,000
1934_
45,220,000
1933_
Milwaukee1934-- 781.000 4,362,000
1933____ 882,000 2.397,000
Toledo11,339,000
1934._
1933._
20,000 10,955,000
Detroit1,258,000
1934_
1933...
1.128,000
indianapolis & Omaha1934__21,460.000
11,000 19,683,000
1933__
St. Louis1934____ 5,995,000 18,011.000
1933____ 6,447,000 18,092,000
Peoria1,545,000
1934____ 2,004,000
1,821,000
1933____ 2,306,000
Kansas 014.'1934_ 808,000
Corn
(Bush.)
Oats
(Bush.)
Haney
(Buth.)
Bye
(Bush.)
59,477.000 14,343,000 10,480.000 8.888,000
88,372,000 20,646,000 8,688,000 4,848.000
16,167,000 8,185,000 23,407,000 3,162,000
18,114,000 22,518,000 23,132,000 5,449,000
932,000
4,295,000 2,085,000 5,760,000
10,282,000 12,523,000 5,837,000 4,855.000
8,469,000 2,067,000 17,675,000
17,837,000 6,614,000 12,767,000
456,000
559,000
1,564,000 4,980,000
2,127,000 4,007,000
278,000
40,000
180.000
44,000
798,000
702,000
1,023,000
886,000
378,000
306,000
37,655,000 7,680,000
41,668,000 14,904,000
26,000
4,000
1,325,000
32,000
14,256,000 4,900,000
20,279,000 7,570,000
1.149,000
1,135.000
226,000
193,000
15,392,000 2,064,000 2.877,000
18,266,000 4,067,000 2,618,000
1,106,000
1,962,000
513,000
450,000
38.728.000 25.150,000
1933__ 839,000 43,018,000 19,036,000
St. Joseph8.541.000 5,807,000
1934_
4,310.000 8,730.000
1933_
Wichita1,304,000
18,212.000
1934_
12.863,000
909.000
1933__
Sioux City938,000 2,431.000
1934_
912,000 2,249,000
1933_.
1,992,000
2,678,000
1,850.000
2,233,000
207,000
113,000
3.000
2,000
2.000
1,000
278,000
889,000
107,000
350.000
10,000
202,000
Total all1934____18,298,000 208,558,000 192,480.000 51,429.000 82.735.000 16.463.000
1933.-18.838,000 237,013.000 248,319.000 99.834,000 55,459.000 18.449.000
1200
Financial Chronicle
As it happens, too, the grain movement at the
seaboard was on a greatly reduced scale as compared
with the previous year and reached the lowest level
in all recent years, thus showing most graphically
the great falling off which has occurred in the export
demand for grain. The seaboard grain receipts
include the movement to Montreal as well as to
United States ports. For the 52 weeks of 1934 the
receipts at the seaboard were only 114,602,000
bushels, as against 126,900,000 bushels in 1933,
208,016,000 bushels in 1932, 228,049,000 bushels in
1931, 177,253,000 bushels in 1930, and 221,457,000
bushels in 1929, as will be seen by the table we
now present:
GRAIN AND FLOUR RECEIPTS AT SEABOARD PORTS FOR 52 WEEKS
Recetns ar1933
1934
1932
1931
1930
Flour
barrels.. 13,457,000 14.988,000 16,291,000 22,969,000 25,316.000
Wheat
Corn
Oats
Barley
Rye
bushels- 87,591,000 113,075,000 167,010,000 185,757,000 164,010,000
9,362,000 7,171,000 8,440.000 3,225,000 4,959,000
11.379,000 5,140,000 12,464,000 13,145,000 8,088,000
3,205,000
889,000 8,519,000 23,142,000
1,268,000
3,065,000
625,000 11,583,000 2,780,000
928.000
Total grain
114,602,000 126,900.000 208,016,000 228,049,000 177,253,000
Feb. 23 1935
revenue freight on the railroads of the United States,
which furnishes a sort of composite picture of the
general traffic and revenues of the roads. These
figures, as collected by the Car Service Division of
the American Railway Association, show that 30,785,594 cars were loaded with revenue freight during
the 52 weeks of 1934, as against only 29,220,052 in
the previous year (an increase of 5.4%) and only
28,179,952 cars in 1932, but comparing with 37,151,249 cars in 1931, 45,877,974 cars in 1930, and
no less than 52,827,925 cars in 1929. The details
regarding the separate items going to make up the
grand totals are shown in the following table:
WADING OF REVENUE FREIGHT ON THE RAILROADS OF THE
UNITED STATES FOR 52 WEEKS
(Number of Cars)
1934
Grain and grain products__
Livestock
Coal
Coke
Forest products
Ore
Merchandise. L. C. L..
Miscellaneous
1933
1,641.732 1,660,416
1,074,005
886,819
6,084,406 5,694,644
298,257
334,751
1,147,096 1,100,817
794.863
743,206
8,244.182 8,445,635
11,464,759 10,390,258
1932
1931
1930
1,653,381 2,024,394 2,265.400
949,287 1,162,060 1,285,153
5,338,938 6,493,200 7,927.035
324,743
223.766
487,841
899,198 1,471,398 2,369,319
874,673 1,661,659
210,367
9,089,736 10,948,873 12,200,534
9,835,279 13,851,908 17,681,033
The Western livestock movement in 1934, on the
other hand, was considerably larger than in 1933.
But this has little significance, as the movement
in the latter year was much smaller than in 1932
and moreover followed a falling off in all other
recent years. During 1934 the receipts at Chicago
were 145,870 carloads, as against only 145,439
carloads in 1933, but comparing with 149,714 carloads in 1932, 196,443 carloads in 1931, 204,828
carloads, in 1930, and 221,328 carloads in 1929. At
Kansas City the receipts in 1934 comprised 73;581
cars, as against only 50,423 cars in 1933, 61,390
cars in 1932, and 72,825 cars in 1931, but comparing
with 87,537 cars in 1930 and 97,673 cars in 1929,
while at Omaha the receipts were 47,454 cars, as
against only 41,849 cars in 1933, but comparing
with 51,140 cars in 1932, 74,405 cars in 1931, 81,351
cars in 1930, and 81,253 cars in 1929.
As to the cotton traffic in the South, this was on
a greatly increased scale so far as the overland movement of the staple is concerned, but fell far below
that of the previous year in the case of the receipts
at the Southern outports. Gross shipments overland were the largest since 1929, aggregating 816,231
bales, as compared with 651,667 bales in 1933,
472,476 bales in 1932, 758,838 bales in 1931, 721,304
bales in 1930, and 913,635 bales in 1929. Receipts
of cotton at the Southern outports during 1934
aggregated only 5,153,627 bales, as compared with
8,498,089 bales in 1933, 9,342,444 bales in 1932,
7,806,305 bales in 1931, 8,340,401 bales in 1930,
and 8,662,7'15 bales in 1929, as is shown in the
subjoined table:
When we come to deal with the separate roads
the large part played by increased operating costs
is very plainly shown. While the list of roads
showing increases in gross earnings is a long one
and embraces roads of all classes and in every section of the country, only 12 of them are able to report
increases in net earnings of more than $1,000,000.
Among the roads so distinguished, the Southern
Pacific heads the list in both cases, reporting $19,057,946 increase in gross and $8,417,249 increase
in net. Others which might be named are the
Great Northern, which with an increase in gross of
$8,828,986, has an increase in net of $1,764,030;
the Northern Pacific, which with a gain in gross of
$3,829,098, has an increase in net of $1,271,777, and
the Louisville & Nashville, which reports a gain in
gross of $4,305,710 and an increase in net of
$1,223,493. In the case of those roads which with
increased gross earnings are obliged to report losses
in net, a few of the more conspicuous are the Pennsylvania RR., which with a gain of $18,952,885 in
gross, reports a loss of $3,064,876 in the net; the
New York Central, which with an increase of $11,743,779 in gross was accompanied bY a decrease of
$4,504,687 in the net (these figures cover the operations of the New York Central and its leased lines;
including the Pittsburgh ez Lake Erie, the result
is an increase in gross earnings of $12,397,885 and
a decrease in net of $4,378,473); and the Baltimore &
Ohio, which with an increase in gross of $3,747,142,
has a loss in net of $5,220,942.
RECEIPTS OF COTTON AT SOUTHERN PORTS FROM JAN. 1 TO DEC. 31
1929 TO 1934, INCLUSIVE
PRINCIPAL CHANGES IN GROSS EARNINGS FOR 12 MONTHS
ENDED DEC. 31 1934
Total
30.785.594 29,220,052 28,179,952 37,151.249 45,877.974
Increase
Full Year
P0713
1934
Galveston
Houston, dm
Corpus Christi
Beaumont
New Orleans
Mobile
Pensacola
Savannah
Brunswick
Newport News
Charleston
Lake Charles
Wilmington
Port Arthur
Norfolk
Jacksonville
Total
1933
1932
1931
1930
1929
1,387.422 2,145,047 2.244,719 1,751,168 1,422,990 2,045,403
1,357,221 3,020.216 2.990,525 2,959,521 2,951,411 3,028,784
302,031 447,769 327.801 421.960 595,775 421,225
4,965
19,225
14,971
36,652
10.907
18,847
1.335,920 1,786,935 2,403,914 1,316,026 1,453.403 1,781,162
195,683 279,791 473,688 466,280 494,257 405,638
55,208
85,371
109,995 138,284 140,916
7,408
14(1.911 215,774 214,423 400,597 684,232 497,091
14,942
31,824
48,614
48,900
11,588
37
153,170 201,680 174.133 144,108 345,372 208,741
57.859 138.661 161.837
38,404
63,715
7.605
21,429
54,408
60,688 100,540
35.398
59,374
9,217
57.879
50,952
91,289 170.111 154,895
52,302
8,400
17,051
425
21,449
13.748
5,153,627 8.498.089 9,342,444 7,806.305 8,840,401 8.662,715
Perhaps, however, the very best index of trade
and business conditions in the year under review
s found in the statistics showing the loading of
Southern Pacific(2rds.) $19.057.946
18,952.885
011,743,779
Great Northern
8,828.986
Atch.Top.&S. Fe(3 rds.) 8,267,511
Union Pacific (4 roads)_
7.272.180
Missouri Pacific
5,481,812
Louisville & Nashville.._
4,305.710
Northern Pacific
3,829,098
Baltimore & Ohio
3,747.142
Reading
3.614,379
Chesapeake & Ohio._ _
3,519,555
Norfolk & Western_
3,444.976
Illinois Central
3,261,456
Erie (2 roads)
2,866.954
Pere Marquette
2,649,895
Chic.& North Western..
2,498,917
N. Y. Chic. & St. Louis
2,496,358
Chic.Milw.St.P.& Pac. 2,364,572
Seaboard Air Line
2,311.885
Los Angeles & Salt Lake 2,270,976
Grand Trunk Western_
2,199,626
Deny. & Rio Gr. West_
2,134,056
Chic. Rock Isl. & Pac.
(2 roads)
2.113,239
fanCr6aentral
Increase
Texas Pacific
$2,059.989
N. Y. N.H.& Hartford
2,058,359
Southern
2,035,598
Wabash
2,028,797
Det. Toledo & Ironton..
1,795,116
Chic. Hurl. & Quincy__ 1,791,184
Lehigh Valley
1,689.076
Pennsylvania Reading
Seashore Lines
1,651.676
Atlantic Coast Line
1,624,885
Central of New Jersey...
1,620,787
Bessemer & Lake Erie_
1,561,896
Western Maryland..
1,538,227
Western Pacific
1,434,591
New Orleans, Texas &
Mexico (3 roads)_
1.292.472
Del. Lack.& Western
1,253,251
St. L.San Fran.(3 rds.)
1,232,868
Central of Georgia
1,220,808
St. Louis Southwestern.
1,172,265
Spokane Port!.& Seattle 1.062,957
Virginian
1,009,578
Total (56 reads)
$160,308,273
a These figures cover the operations of the New York Central and the
leased lines-Cleveland Cincinnati Chicago & St. Louis, Michigan Central,
Cincinnati Northern and Evansville Indianapolis & Terre Haute, Including
Pittsburgh & Lake Erie, the result is an increase of $12,397,885.
•
Financial Chronicle
Volume 140
PRINCIPAL CHANGES IN NET EARNINGS FOR 12 MONTHS
ENDED DEC. 31 1934
Decrease
Increase
$3.064.876
Southern Pacific(2rds.)- $8,417,249 Pennsylvania
1,764,030 Chic. Milw. St. Paul &
Great Northern
2,694,134
Pacific
Los Angeles & Salt Lake_ 1,362,001
2,379.437
1.271,777 Southern
Northern Pacific
Louisville & Nashville.... 1,223,493 Chic. Rock Island & Pac.
2,326,554
(2 roads)
Detroit Toledo & Ironton 1,222,301
2,068,974
1,116,655 Norfolk & Western
Pere Marquette
1,866.810
Central
Illinois
Wabash
1,082.685
1.855,199
Grand Trunk Western._ 1,057,231 Chic. Burl. & Quincy
1,601,695
1,030,667 Long Island
Chesapeake & Ohio
Central of New Jersey... 1,021.585 Chicago & North Western 1,597.934
N.Y.N.H.& Hanford.. 1,428,826
1,299,036
Total(12 roads)
$20,569,674 Alton
Duluth Missabe North'n 1,213.170
Union Pacific(4 roads).- 1.032,695
Decrease
$5,220,942
Baltimore & Ohio
$34,154,969
Total (19 roads)
New York Central
a4,504,687
a These figures cover the operations of the New York Central and the
la?linesRCrlandCnrat, Chicago
futea IntS4,MichiCf
eInlaapOlisrTerref
Cincinnati Northern
cluding Pittsburgh & Lake Erie, the result is a decrease of $4,738,473.
When the roads are arranged in groups or geographical divisions according to their location, the
large part played by heavily increased expenses in
reducing net results is still more clearly illustrated,
for it is found that all three districts-the Eastern,
the Western and the Southern-together with all
the regions grouped under these distrcts, are able
to show an increase in gross earnings over 1933,
while not a single district, nor a region (with the
exception of the Great Lakes region in the Eastern
District and the Central Western region in the
Western District) is able to record a gain in the
case of the net. Our summary by groups is as below.
As previously explained, we group the roads to conform entirely with the classification of the Interstate
Commerce Commission. The boundaries of the
different groups and regions are indicated in the
footnote to the table:
SUMMARY BY GROUPS
District and Region
Grass Earnings
Jan. lie Dec. 311933
1934
Inc. (1-) Or Dec.(-)
Eastern District
New England region (10 roads). 143,409,412 140,109,285
+3,300,127 2.36
Great Lakes region (24 roads).. 842.791,022 612,600,960 +30,190.062 4.93
Central Eastern region (18 roads) 673,274,886 636,594,765 +36,680,121
5.76
Total (52 roads)
Southern DistrictSouthern region (28 roads)
Pocahontas region (4 roads)
1.459,475,320 1,389,305,010
408.242,451
202,768,996
Total (32 roads)
Western DistrictNorth Western region (16 roads)
Central Western region (21 rds.)
South Western region (25 roads)Total (62 roads)
388,514,451
194.551.462
Total (10 roads).._143.409,412 140,109,285 35,568,726
37,740,415 -2.171,689
Net
Inc. or Dec.
1933
1934
1933
1934
Great Lakes
Region--371.268
384,775
13,509
1,186,843
1,046,514
Indiana.
Cambria &
Can Nat SystemC N Lines in N E-See New England region
Central Vermont-See New England region
Dul Winn de Pac-See Northwestern region
1,234,043 +1,057.231
17,158,392 14,958,766 2,291,274
Gr Trunk West
1,896,410 +898,135
Delaware & Hudson 23,176,469 22.178.122 2,794,545 8.562,152
+523,587
Del Lack dc Western 44,592,530 43,339,279 9,085,739
+25,535
93.03.5
118,570
601,980
632,903
Detroit dc Mackinac
1,298,762 +253.809
1,552,571
2,952,066 2,562.417
Det& To!Sh Line
Erie System+278,966
75,064,122 72,088.318 20,752,750 20.473,784 -121.777
Erie
-71,066
939,121 -192,843
828,269
New Jersey & N Y
+106,094
751,572
857,666
3,332,695
NY Susq & West. 3,606,660
-38.890
460.608
421,718
1.443,351
Lehigh & Hud River 1,447,588
+88,488
700,618
789,086
3,000,725
3,455.844
Eng.
Lehigh & New
+999,339
7,945.383
8,944,722
39,866.526 38,177,450
Lehigh Valley
--2,663
3.820,585 3,584,699 2,249,309 2,251,972
Monongahela
562,558 +165.527
728,085
1,662,916
1,882,602
Montour
New Haven SystemNYNH& Hartford-See New England region
9,644,523 2,301.790 2.685.844 -384.054
NY Ont & Wier. 9,389,831
N Y Central Lines70,913,121 75,417,808 -4,504,687
283,341,102
295,084.881
NY Central
2,610,128 -233.786
Pitts & Lake Erie_ 15,236,943 14,582,837 2,376,342 9,912.548
+539.060
10.451,608
30.647,506
33,143,864
Louis
N Y Chios& St
4.054,575 +1,116,655
5,171,230
Pere Marquette.... 24,597,190 21,947,295
-61,017
109,995
48,978
670,421
642,980
Pitts & Shawmut
169,031 -132,607
36,424
989,451
921,045
Pitt Shawm & No
-99.884
816,984
717.100
Pitts & W Virginia_ 2,720,145 2,530,253
Wabash System604,210 +128,211
732,421
3,307,260 2,985.896
Ann Arbor
9,712,332 8.629,647 +1.082.685
38,235,813 36,207,016
Wabash
+1,332,671
Total(24 roads)..642,791,022 612,600,960 152,868,047 151,535,376
+19,728,000
+8,217,534
5.08
4.22
Net
-Gros
Inc. or Dec.
1933
1934
1933
1934
Central Eastern
$
8
8
$
$
Region+5,511
574,045
579,556
1,594,629
Akron Canton & Y. 1,721,879
Bait & Ohio SystemAlton-See Central Western region
135,539,395 131,792,253 36,201,611 41,422,553 -5,220,943
Balt & Ohio
378,267 -190,982
187.285
1.711.804
Staten Isl Rap Tr 1,649,401
1.934,003 -439,533
1,494,470
8,304,785 6,742,869
Bessemer.4 L Erie
+218,786
2,617,391
2,831,177
12,218,449
Chic & East Illinois_ 12,776,551
1.096,678 -245,077
851,601
Chic & Ill Midland_ 2,974,212 3,026,349
-224,473
1,483,659
1,259,186
7,228,716
7,427,499
Chic Ind & Loulsv
1,610,447 +1,222,301
4,042,660 2,832.748
5,837,776
Det Tol de Ironton
1,944,985 2,421,872 -476.887
Elgin Joliet et East_ 10,289,344 9,985,608
-45,875
1.547.554
1,502,179
4,749,837
Illinois Terminal_ _ _ 4.930,061
Missouri Pac System-See Southwestern region
+22,349
183.747
206,096
850.168
959.753
Missouri Illinois
Pennsylvania System24,227,481 24,088,582 7,080,899 8.682,594 -1.601.695
Long Island
Pennsylvania.._343,668,699 324,715.814 94,882,591 97,947,467 -3,064,876
Reading System27,857 +214,187
242,044
Penn Read S Lines 5,744,454 4,092,778
29.022,116 27.401.329 8,774,323 7.752,738 +1.021.585
Central of N J
53,078,431 49,464.052 16,193.277 18,315.524 -122.247
Reading
-60,519
4,439.192 4,499,711
Western Maryland_ 13,883,275 12,345,048
2,769,217
-34,383
2,734,834
11,239,794 10,563,820
Wheeling et L Erie
583.065,913
+27.945.534
4.79
382,716,163
548,336,260
265,505,254
361,286,242
508,207,209
249,628,128
+21,429,921
+40,129,051
+15.877,126
5.93
7.90
6.36
1 198,557,677 1.119,121,579
+77,436,098
6.92
Total
59,154
Southern DistrictSouthern region
39.368
Pocahontas region_ 6,058
59,515 372,674,827 382,541,115 -9,866,288 2.58
Total
45,426
Western DistrictNorthwest. region
48.501
Cent. West. region_ 53,318
Southwest. region
32,676
45.738 178,683,387 183,315,300 -4,631,913 2.53
92,974,863 9.7,280,271 -4,305.408 4.43
85,708,524 86,035,029
-326,505 0.38
48.743 85,151,462 88,011,321 -2,859.859 3.25
53,819 137,715,218 135,483,979 +2,231,239 1.64
33,025 58,217,280 57,210,889
-993,609 1.74
134,495 135.587 279,083,960 280,706.189 -1,622,229 0.58
Total all districts..239,075 240,840 830,442.174 846.562,604 -16,120,430 1.90
NOTE-Our grouping of the roads conforms to the classification of the Interstate
Commerce Commission, and the following indicates the confines of the different
groups and regions:
EASTERN DISTRICT
New England Region--corn prises the New England States.
Great Lakes Region--Comprises the section on the Canadian boundary between
New England and the westerly shore of Lake Michigan to Chicago, and north of a
line from Chicago via Pittsburgh to New York.
Central Eastern Region-Comprises the section south of the Great Lakes Region.
east of a line from Chicago through Peoria to St. Louis and the Mississippi River
to the mouth of the Ohio Rivet, and north of the Ohio River to Parkersburg, W. Va.,
and a line thence to the southwestern corner of Maryland and by the Potomac
River to its mouth.
SOUTHERN DISTRICT
Southern Region-Comprises the section east of the Mississippi River and south
of the Ohio River to a point near Kenova. W. Va.. and a line thence following the
eastern boundary of Kentucky and the southern boundary of Virginia to the Atlantic.
Pocahontas Region-Comprises the section north of the southern boundary of
Virginia, east of Kentucky and the Ohio River north to Parkersburg. W. Ye., and
south of a line from Parkersburg to the southwestern corner of Maryland and thence
by the Potomac River to its mouth.
WESTERN DISTRICT
Northwestern Region-Comprises the section adjoining Canada lying west of the
Great Lakes Region, north of a line from Chicago to Omaha and thence to Portland
and by the Columbia River to the Pacific.
Central Western Region-Comprises the section south of the Northwestern Region,
west of a line from Chicago to Peoria and thence to St. Louis, and north of a line
from St. Louis to Kansas City and thence to El Paso and by the Mexican boundary
to the Pacific.
Southwestern Region-Comprises the section lying between the Mississippi River
south of St. Louis and a line from St. Louis to Kansas City and thence to El Paso
and by the Rio Grande to the Gulf of Mexico.
EARNINGS OF UNITED STATES RAILROADS FROM JAN. 1 TO DEC. 31
Eastern District
Net
--Gros
Inc. or Dec.
1933
1934
1933
1934
New England
$
$
Won-37,209
2,241.880 2,279,069
Bangor dr Aroostook 6.167,890 5,805.511
Boston dc Maine_ _ _ 42,155,612 41,877,370 11,283,342 11.487,494 -204,152
Can Nat System+1,834
1,039,090 -226.263 -228,097
C N Lines in N E_ 1,053,675
635,424 -224,821
410,803
Central Vermont_ 4,953,347 5,008,079
Dul Winn & Pac-See Northwestern region
Grand Trunk West-See Great Lakes region
Can Pao System+75,833
204,106
279,939
1.583,487
CP Lines in Me__ 1,985,675
-72,002
897,591 -206,891 -134,889
930,135
OP Lines in Vt..
Dul So Sh & Atl-See Northwestern region
Minn SIP & SB M-See Northwestern region
Northwestern region
rai
eentInternat-See
cn
ka
-50,885
2,930,922 2.981,807
-10.931,086 10,556,435
Maine
New Haven System
-1,428,826
NYNH & Hartf 69,283,110 67.224,751 16,568,898 17.997,724
N Y Ont & West-See Great Lakes region
-47,638
2,730,165 2,109,587 2.157.225
t Cnonnecting____ 2,700,496
Y
Nuiad
R
360,552 -183,823
176,729
3,386,806
3,248,406
5.05
Total all districts (146 roads)..3,267,044.444 3.091,492,502 +175,551,942 5.68
District and Region
Net Earnings
Jan.! to Dec.31 -Mileageinc.(+)Or Dec.(-)
1934
1933
Eastern District- 1934
1933
3
$
$
%
New England region 7,151
7,230 35.568,726 37,740,415 -2,171,689 5.75
Great Lakes region_ 26,937 27,093 152,868,047 151,535.376 +1,332.671 0.88
Cent. Eastern reg'n 25,066 25,192 184,238,054 193,265,324 -9,027.270 4.67
Total
We now add our detailed statement for the last
two calendar years classified by districts and regions,
the same as in the table above, and giving the figures
for each road separately:
+70,170.310
611,011,447
39,646
6,092
1201
Total (18 roads) 673,274,886 636,594,765 184,238.054 193,265,324 -9.027.270
Total Eastern District (52 roads)_1459475320 1389305,010 372,674,827 382,541,115 -9,868,288
Southern District
Net
--Gross____Inc. or Dec.
1933
1934
1933
1934
Southern Region$
$
i
$
Atl Coast Line System- $
-63,537
26,502
-37,035
Atl BIrm & Coast_ 2,818,836 2,604,544
+65,720
21,756
87,476
1,280,053
Atlanta & W Point 1,411,665
Atl Coast Line.... 39,533,828 37,908,943 8,636,293 8,781,313 -145,020
-50,538
627,383
576,845
1,888,221
Charles & W Caro 1,904,330
+44,079
2,205,823 2,161,744
4,842,426
5,204,649
Clinchfield
+49,027
484,806
533.833
3,010,050
3,157,426
Georgia
69,962,688 65,856,958 16,631,880 15,408,387 +1,223.493
Loulav & Nashv
+97,140
1,587,857
1,684,997
Nash Chatt & St L 12,733,702 12,381,088
-1,267
-27,000
-28,267
1,246,673
1,298,765
West Ry of Ala
-86,245
113.050
26.805
832,848
875,249
Greens'
Columbus et
1,154,608 +312.716
1,467,324
Florida East Coast_ 7.609.612 6,693,545
-29,928
48,621
18,693
975,719
1,029.239
Georgia & Florida
1,834,991 -189,053
1,445,938
Gulf Mobile & Nor_ 5,230,957 5,024,203
Illinois C.entral System1,775,493 +236,761
Central of Georgia 13,353,151 12,132,343 2,012,254
-17,341
150,204
132.863
1,070,054
Gulf et Ship Island 1,140,281
Illinois Central._ 79,228.255 75,966,799 20,074,138 21,940,948 -1,866,810
-862.628
4,078.083
3,215.435
Yazoo & Miss Vail 11,916,718 11.991,684
-9,065
52,116
43,051
632,174
604,360
Mississippi Central_
803,155 +338,831
1,139,986
Norfolk Southern._ 4,763,117 4,385,592
33,861,442 31,549,557 5.048,710 5,739.485 -692.775
Seaboard Air Line
Southern System1,110,202 -129.135
981,067
4,497.665
Ala Gt Southern. 4,888,350
Cin NO & Tex P. 12,272,002 11.622.730 4,435.154 4,572,587 -137,433
-6,747
192.199
185,452
1,634,446
1,841,007
Ga South & Fla
1,333.320 -222.586
1,110,734
8,544,827 8,161,996
Mobile & Ohio_
369,603 +171.568
541,171
1,949,879
N 0 & Northeast_ 2,195,949
-13,533
204.704
191,171
530,818
543,739
North Alabama._
78,183,701 76.148,103 20,063,257 22.442,694 -2,379,437
Southern
+60,335
491,480
551,815
2,106,812
1,923,154
Tennessee Central
Total (28 roads)._408.242,451 388,514,451 92,974,863 97,280,271 -4,305,408
1202
Financial Chronicle
-Gross
Net
1933
Pocahontas
1934
1933
1934
Inc. or Dec.
Region$
$
Chesapeake & Ohlo_109,489,077 105,969,522 48.674.104 47,643,437
+1,030,667
Norfolk & Western_ 72,707,867 69,262.891 28,176,610
30,245,584 -2.068.974
Richm Fred & Po_ __ 6,128.701
5,885,276
1,116,333
1,232,740
-116,407
Virginian
14,443,351 13,433,773 7,741,477 6,913,268 +828,209
Total(4 roads).-202,768,996 194,551.462
85,708,524 86,035,029 -326,505
Total Southern District (32 roads).611,011,447 583,065,913 178.683,387
183,315.300 -4,631.913
Western District
Northwestern
-Gross
Net
Region1934
1933
1934
1933
Inc. or Dec.
Can Nat System$
S
Sji
$
6, mi
C N Lines in N E-See New England
ion4
Central Vermont-See New England reg
,
region
er
7
N
Dul Winn & Pee.
912.727
812,579
-63.184 1 +26,195
Grand Trunk Western-See Great Lakes region-37,989
Canadian Pacific SystemC P Lines in Me-See New England region
C P Lines in Vt-See New England region
Dul So Sh & AU-- 2,176,537
1,963,106
367,756
327,670
+40,086
M St P & 8 S M.- 22,371,582 22,293,596
4,167,975 4,299,726 -131,751
Spokane Internal
504,160
443,030
5,953
-23,964
+29,917
Chic & North West_ 75,893,418 73,394,50114,08
1,598 15,679,532 -1,597,934
_ 14,848,618 14,527,600
3,321,089 -963,351
ChM Great Western 15,491,939 14,575,180 2,357,738
4,200,222
4,253,067
-52,845
Chic Mil St P & Pao 87,859,792 85,495,220
Dul Mambo & Nor_ 9,486,593 9,700,200 18,204,245 20,898,379 -2,694,134
2,769.180
3,982,350
-1,213.170
Great Northern.... 70.752,877 61,923.891
22,142,697 20,378,667 +1,764,030
Green Bay & West- 1,117,539
1,094,300
108,397
171,744
-63,347
Lake Sup & Islmem_ 1,422,948
1.871.784495,246
1,047,671 -552,425
MinnespolLi & St L. 7.514,180 7,673,398
690.779
926,113 -235,334
Northern Pacific__ 51,407,775 47,578,677
9,858,962 8,685,185 +1.271.777
Spokane Portl & S._ 5,671,051
4.608.094
2,418,014
1,784,698 +633,316
Union Pacific System-See Central Western region
Ore Wash RR & N 15,284,427 13,331,086
3,321,689
2,442,578 +879.111
Total (18 roads).-382,716,163 361,286,242 85.151,482
88,011,321 -2,859,859
--Gross
Net
Central western
1934
1933
1934
1933
inc. or Dec.
Region-S
5
5
t..$
Bait & Ohio SystemAlton
13.159,346 13.328,174 2,813,469 4,112,505 -1,299.036
Bait & Ohio-See Central Eastern
region
Staten lel Rap'Fran-See Central Eastern region
Burlington Route
Ch Burl & Quincy 80,288.159 78.496.975 22,280,177
24,135,378 -1,855.199
Colo & Southern_ 5,618,296
5,485,295 1,026.414
1,162,105 -135,691
Ft Worth & D C. 5,650,343 5,633,368
1,965,217 2,274,161 -308,944
Den & Rio Gr West_ 19,246,850 17,112,794
4,601,589 5,225,370 -623,781
Denver & Salt Lake_ 1,620,006
1,657,331
805,155
768,172
+36.983
Nevada Northern_ _
353,606
270,868
70,166
-7,609
+77,775
Rock Island SystemChic RI & Gulf
3,633,188
3,416,409
840,630 1r" 860,314
-19.684
Chic R I & Pao
83,328.500 61,432,040 9,245,869 11,552,739 -2,306,870
San Diego Ariz & E_
436,497
424,549
-66,352
-50,893
-15,459
Santa Fe SystemAtch Top & S Fe_107,268,205 98,462.856 21.860.784
21,316,830 +543.954
Gulf Colo & Santa Fe-See Southwestern region
Panhandle & S Fe 8,834,312 8,621,500 3,076,032 2.762,221
+313.811
Southern Pacific System-Northwest Pao
3,218,672 2.853,382
314,791
148,889 +165,902
St L Southwestern-See Southwestern region
Southern Pacific_112,918.817 97,059,087 31.174,858
23,287,185 +7.887.673
Texas & N0-See Southwestern region
To!Peoria & West
1,718,163
1,690,429
380,792
431,661
-50,869
Union Pac SystemLos Ang & Salt L_ 16,206,311 13,935,335 5,871,535 4,509,534 +1,362,001
Oregon Short Line 21,455,911 20.466,813 7,087,785 7,079,283
+8,502
Ore-Wash RR & N-See Northwestern region
St Jos & Cr Island 2,851,526
2,655,409
1,128.299
1,085,301
-62,998
Union Pacific
67,490.849 63,357,225 20,589,086 22,446,396 -1,857,310
Utah
735,800
979,168
189,809
291,435 -101.626
Western Pacific.... 12,302,903 10,868,312 2,522.111
2,050,006 +472,105
Total(21 roads)--548,336,280 508,207,209 137,715.218 135,483,979 +2,231.239
--Gros
Net
Southwestern
1934
1933
1934
1933
Inc. or Dec.
Region$
Burl-Rock Island...
791,543
959,678 -122,399
-270,412
148,013
Ft. Smith Os Western
679,063
670,557
75,558
53.811
-21.747
Frisco LinesFt W & Rio Gr__ _
469.666
424,044 -154,375 -268,726 +114,351
St I.-San Fran__ 40,043,864 38,731,160 6,220,641
7,025,742 -805,201
St L San Fr & Tex
938,703
1,062,161 -181,794
13,356 -195.150
Kansas City South_ 9,650,064 9,362,763 2,554,447 2.522,066
+ 32,381
Kansas Okla & Gulf 1,875.510
1,775,837
876,022
836.098
+39.924
Louisiana & Ark__ 4,467,631
4,124,940 1,526,027
1,433,061
+92,966
La Ark & Texas_ _
952.999
840,409
161,344
217,216
+55,872
Midland Valley.._ 1,319,981
1,358,308
582,567
611.625
-29.058
Missouri & No Ark_
922,581
894,780
185,804
+232
185,572
Missouri-Kans-Tex 26,329,387 25,696,675 5,736,544 6,698,471 -961,927
Missouri Pac SystemBeaumont S Law 1.660,394
1,362,154
368,068
282,671
+85,397
Internal Gt Nor_ 12,575,330 12,287,759
3,188,222 3,417,471 -229,249
Missouri Illinois-See Central Eastern region
Missouri Pacific__ 73,435.591 67,953,779 15,055,141 15,506,336 -451,195
NO Tex & Mex_ 1,654,782
339,155
1,300,818
127,310 +211,845
St L Brownsv & M 4,579,167 3,938,899
1,296,574
1,157,398 +139,176
S A Uvalde & Gulf 1.048,269
318,529
775,863
155,268 +163,261
Texas & Pacific__ 22,289,956 20,229,967 7,179,115 6,370.979 +808,136
Okla City-Ada Atoka
341,625
102,674
106,803
+4,129
315,093
Santa Fe System_
Atch Top dr Sante Fe-See Central Western region
Gulf Colo & S Fe_ 11,991,431 12,742,081
1,073.652
1,944,068 -870,416
Panhandle & S Fe-See Central Western region
Southern Pac SystemNorthwestern Pac-See Central Western region
St L Southwestern 14,125,660 12,953,395 4,234,511
3,889.700 +344,811
Southern Pacific-See Central Western region
Texas di New Orl_ 31,871,862 28,673,646
5,206,674
4,677,098 +529.576
Texas Mexican
251.182
-27,163 +278.345
983.400
634,484
Wichita Falls & So
105,243
164.899
508,795
558,878
-59,656
r
Total (25 roads)_285,505,254 249,628,128 56,217,280 57,210,889
-993,609
Total Western District(62 roads)___1196557677 1119121,579 279,083,960:280,706,189 +1,622,229
Total all Districts
(146 road.° _ _32671)44444 3091492,502 830,442,174 846,562.604-16120.430
Weather;Conditioniand Results for Earlier Years
As to weather conditions, which are often a very important factor affecting revenues and expenses of the railroads, the winter of 1934 was quite severe, there having
been frequent heavy snow storms to contend with in the
early part of the year, while in 1933, as in 1932 and in
1931 and in 1930, there were no unusualrconditions. Taking
the year 1934 as a whole it was characterized by unprece-
Feb. 23 1935
dentedly unfavorable weather conditions, with excessively
high temperatures in the summer months aggravating the
effect of widespread serious deficiencies in rainfall, especially
in respect to growth of vegetation and domestic water
supply. All sections of the country, except along the
Atlantic coast, the east Gulf area, and the Pacific Northwest, had below-normal and much of the country had either
the lowest of record or the total for the year approximated
the previous low. Colorado, Indiana, North Dakota, Ohio,
and South Dakota (five States) had the least annual rainfall
of record, while Kansas, Montana, Nebraska, New Mexico,
Utah and Wyoming had only about one inch more than
their previous low record. Almost as important as the
lack of rainfall in producing unfavorable weather effects
were the high temperatures during the growing season.
The summer months were abnormally warm everywhere,
except locally in the Northeast, and a large northwestern
area had the warmest period on record. Fall and early
winter rains relieved the drought situation in most localities
east of the Great Plains, except in the eastern Ohio Valley
and locally in the Southeast. At the very close of 1933,
on the day after Christmas, a heavy snow storm blanketed
the whole of the northern part of the eastern half of the
country, the fall in this city reaching 10 inches, the heaviest
since February 1926 and the temperature on Dec. 30 dropped
to 6 deg. below zero. In 1929 weather conditions were
not much of a drawback in the nothern part of the eastern
half of the country. In the western half, however, the
winter then was quite severe, extreme cold accompanied
in many instances by repeated heavy snowfalls, having
seriously interfered with railroad operations. The remark
applies particularly to Wisconsin, Iowa, Colorado, Utah,
Wyoming, Montana, Idaho, and, indeed, all the way west
to the State of Washington. Colorado seems to have suf.
fered most in that year from accumulated snow. It was
likewise reported that highways in Wyoming, Utah and
Idaho were blocked by snowdrifts and that zero temperatures were general. Montana appears to have suffered in
a similar way. On Feb. 9 1929 Associated Press advices
from Kansas City stated that railroad transportation in
southwestern Colorado had been further hindered by additional snow and that zero temperatures prevailed in that
region and in Kansas, Oklahoma and the Texas Panhandle.
Two more snowslides had crashed on the tracks of the
Benver & Rio Grande Western between Durango and
Silverton, Colo., making a total of 11 in 13 miles. At
different times during March of 1929 also there came reports
of snowslides at widely separated points in the section of
country referred to-Colorado, the Dakotas, Montana,
the State of Washington, &c.
It has already been pointed out there was a gain in gross
revenues of United States railroads in 1934 of $175,551,942,
but on account of heavy operating costs, this increase
resulted in a loss in net earnings of $16,120,430. In the
preceding year there had been a loss in the gross earnings
of the roads, though a small one-$27,892,564-accompanied by an increase in net earnings of $126,471,171.
This, however, followed tremendously heavy losses in the
three years preceding. In 1932 our tabulation recorded a
falling off of $1,071,798,819 in the gross earnings and of
$244,431,640 in the net earnings. In 1931 there was a
loss of $1,105,303,735 in gross and of $395,804,589 in net,
while in 1930 there was $1,014,198,837 loss in gross and
of $432,368,693 in the net, making for the three years combined an unparalleled shrinkage of income. Moreover,
even in 1929 the results for the year as a whole were far from
brilliant, our tabulations showing only $162,305,781 gain
in gross and $91,282,713 gain in net in 1929 over 1928.
The year 1929 was one of unexampled activity in trade up
to the time of the panic, but after this latter event trade
suffered a severe setback, and losses in October, November
a7nd December offset to that extent the gains of the early
months of that year. Moreover, the 1929 gain, at least as
far as the gross earnings are concerned, was merely a recovery of the losses sustained in the two years immediately
mceding. -For-the calendar year 1927 our compilations has
shown a falling off of $253,305,228 in the gross earnings
and of $155,453,498 in the net earnings, and in our comments on the results for that year we remarked that it
had been in fact the poorest year that these rail carriers had
had since their return to private control in 1920. In 1928
our statement showed a further loss in gross earnings of
$30,265,342 in comparison with the poor results of 1927,
accompanied, however, by a saving in expense of $135,-
Volume 140
Financial Chronicle
1203
lllllllllllllllllllllllllll
5000C0.04DOCC000000DOCOOCCOVVCO
000
ZWNINMW
AWWW CO NNWNI,
,0,00,..4
4WW."419,0W-40414.WM...00W .40.7.0.WM.
435,125, producing, therefore, a gain in net of $105,169,783,
Gross Earnings
Mileage
which to that extent acted as an offset to the much larger
Year
Year
Year
loss in net sustained in 1927. Though the further gain in
Year
Increase (-I-) or
Per
Year
Preceding
Given
Decrease (--)
Given
Cent
Precede
gross recorded in 1929, amounting to $162,305,781, did
$
$
Miles
Miles
not serve to wipe out entirely the very heavy losses in 1907 -- 2,287$501.605 2,090.595,451
+196,906,154 9.42 173,028 171.316
1908 ___ 2,235 164.873 2,536,914.597
-301.749,724 11.89 199,726 197.237
gross sustained during the two preceding years, the showing 1909
___ 2,605,003,302 2,322,549,343
+282,453,959 12.16 228,508 225.027
of the net was the best ever made as the result of the further 1910 .-- 2,836 795,091 2,597,783.833 +239,011,258 9,20 237,554 233,829
1911 --- 2,805 084,723 2,835,109,539
-30,024,816 1.06 241,423 238,275
increase in the sum of $91,282,713 in that year. It should 1912 --- 3.012 390,205 2,790,810,236 +221.579,969
7.94 239,691 236.000
_-- 3,162 451,434 3.019.929,637
+142,521.797 4.72 241,931 239,625
not escape attention that while there was very considerable 1913
1914 ___ 2,972 614.302 3,180,792.337
-208.178.035 6.54 246,356 243.636
1915 ___ 3,166 214.616 3,013,674,851
+152,539.765 4.93 249.081 247.936
trade revival in 1928, particularly during the last half of 1916
--- 3,702 940,241 3,15,5,292,405
+547,647,836 17.36 249.098 247.868
the year, and certain leading industries enjoyed prosperity 1917 ___ 4,133.433,260 3,707,754,140 +430,679,120 11.62 250.193 249.879
1918 ___ 4,900 759,309 4,036,866,565
+863,892,744 21.40 233,014 232.639
for nearly the whole of the 12 months, full recovery from 1919 ___ 5,173 647,054 4,915,516,917 +258,130,137 5.25 233.985 234,264
_-- 6,204875,141 5,178,639,216 +1.026,235,925 19.82 235,765 234,579
the setback of 1927 did not ensue until 1929. During the 1920
1921 _-- 5,552 022,979 6,216,050,959
-664,027,980 10.68 235,690 234.777
+43,693,964 0.80 235,564 235.333
early months of 1928, outside of a few excepted industries, 1922 ___ 5,522 522,416 5,478,828,452
1923 ___ 6,342 058,872 5,608,371,650
+733,687,222
235.461 235,708
the volume of trade was in many instances moderately 1924 ___ 5,961 186.643 6,332,874.535 -371.087,892 13.08
5.87 234.795 234.625
1925 ___ 6,177 280.802 5,977,687.410
+199,593,392 3.34 236,330 236,139
smaller than it had been in 1927. There was in 1928, 1926
___ 6,435 539,259 6.169,453.120
+266,086.139 4.31 236.891 235,809
1927 ___ 6,195 259,346 6,448,564,574
-253,305,228 3.93 238,527 237,799
it is true, a revival of the automobile trade after the severe 1928
___ 6,168 119,487 6.198,384,829
-30.265,342 0.49 240,626 239.539
slump which that trade had experienced during the pre- 1929 ___ 6,339 246,882 6.176,941.101 +162,305,781 2.63 241,625 239,482
1930 ___ 5,335 131,510 6,349,330,347 -1,014,198,837 15.97 242,517 242,161
vious year, which slump, however, was due mainly to the 1931 ___ 4,230 360,663 5,335,664,39 -1,105,303,735 20.72
242.764 242,582
1932 ___ 3,157 463,014 4.229,261,83 -1,071,798,819 25.34 242,043 242.059
fact that the Ford plants were then out of commission, 1933
___ 3,123,862,54 3,156,755,10
-27,892,564 0.88 241.111 242.057
3 267 044.444 3_091.492.50
+17555L942 568 259 075 240845
being engaged in devising a new model of car. But it 1934
remained for 1929 to show what the automobile industry
Increase(+) Or Decrease (-)
Net Earnings
could do in a period of real trade revival and with the Ford
Year
Year
Year
Given
Preceding
.4 mount
Per Cent
plants once more operating at a normal capacity, and apparently no obstacles of any kind existing to full capacity
16
$
$
660,753,545
665.285,191
-4,526,646
0.68
production anywhere. In like manner it remained for 1930,
748,370.244
694,999,048
-53,371,196
7.13
901.726.065
750,685,733
+151,040,332
20.12
1931 and 1932 to show what a setback the automobile trade
900,473,211
909,470,059
+8,996,848
1.00
883,626.478
-24,288,388
907,914.866
2.68
could experience at a time of a general slump in business.
937,978,711
877,617,878
+60,340,833
6.88
The 1927 loss in net was the first the roads of the United
940,509,412
907,022,312
-33,487.100
3.56
828,522,941
-75,825,113
904,448.054
8.39
States had sustained after a long series of gains beginning
1,040,304,301
828,650,401
+211,653.900
25.54
1,272,639,742
1,036,016,315
+236,623,427
22.84
with 1921. On the other hand, previous to 1921 expenses
1,275,190,303
1,215,110,554
-60.079.749
4.71
905.794,715
1,190,566.335
-284,771,620
had been mounting up in a frightful way until in 1920 a
23.92
764,578,730
908,058,338
-143,479,608
15.80
point was reached where even some of the strongest and
461,922,776
-303.953,253
765.876,029
39.69
958,653,357
402,150,071
+556,503,286
138.38
best managed roads were barely able to meet ordinary
1,141,598,071
951,497,925
+190,100,146
19.98
1,410,968,636
+249,725.296
1,161,243.340
21.15
running expenses, not to mention taxes and fixed charges.
1,424,240,614
1.409,433,583
+14,807,030
1 05
enormously
And it was these
1,604,400,124
inflated expense accounts that
1,428.508,949
+175,891.175
12.31
1.731,509,130
1,602,513,558
+128.995,572
8.05
furnished the basis for a good part of the savings and econo1,579.621,895
1,735,075,393
-155,453,493
8.96
1,706,667.669
1,600,897,886
+105,169,783
6.57
mies effected in the years after that. As compared with
1,798,200.253
1,706,917,540
+91,282,713
5.35
1,367,577,221
1.799,945,914
-432,368.693
24.02
1920, the roads in both 1921 and 1922 also had the ad971.654,527
1,367,459,116
-395,804,589
28.94
vantage of much more favorable weather conditions. In
733,368.461
977,800,101
-244.431,640
25.00
859,639,828
733,168,657
+126,471.171
17.25
1921 the winter was exceptionally mild, and much the same
Ran 442 174
646 562 604
-16 1211 430
1 on
remark may be made with reference to the winter of 1922.
This last, while perhaps not so extremely mild as the winter
The Gold Standard and the Investor
of 1921, was at all events not of unusual severity-at
least not of such severity in most of the country as to entail The Editor, The Commercial and Financial Chronicle:
Now that it has become useless to specify gold as a
heavy expenses for the removal of snow and the clearing
of tracks, though the winter is declared to have been a hard standard of value of deferred payments in fnivate conone in certain special sections, in Wyoming and Monatana, tracts, to what will we turn? Shall we stipulate that sucn
for instance, and contiguous territory. In 1920, on the other contracts may be legally discharged by the payment of so
many bales, barrels, bushels, or even ingots? Will the
hand, the winter had been exceptionally severe.
In commenting on the results for 1920 and noting the commercial and financial world embrace innovations of,
tremendous increase in operating costs in that year, we that nature, rather than designate dollars-paper d
There is much lament over the fact that capital issues
took occasion to say that, taken in conjunction with the
antecedent huge additions to expenses, it constituted an during 1934 were only 5% of 1930, in point of volume. It
unfavorable record for which no parallel could be found in is also criticized that the commercial banks are financing
American railroad history. As a matter of fact, 1920 the Federal deficit through their extensive purchases of
constituted the fourth successive year in which the net Government securities-most of which do not contain the
had fallen off-in each year, too, in face of very substantial gold clause. I can see a direct relation between these two
gains in the gross earnings. As showing how extraordi- circumstances.
narily poor the results were in 1920, we may say that, while
Evidences of indebtedness which call for payment of tne
there was an addition to the gross of no less than $1,026,- "streamlined" dollars are perfectly acceptable for invest235,925, net actually fell off in amount of $303,953,253. ment by institutions whose obligations are
likewise payable
In 1919 the increase in the gross was of only moderate extent (5.25%), and yet amounted to $258,130,137. As it by the same medium. Hence most financial institutions
was accompanied, however, by an augmentation in ex- have no aversion for paper dollar securities, be they Governpenses of $401,609,745, there was a loss in net of $143,479,608 ment or private bonds. But individuals, whose obligations
or 15.80%. For 1918 our compilation showed an increase (as expressed by the cost of living) are subject to wide
in the gross in the sum of S863,892,744, or 21.40% (due in fluctuations must have protection of some description-and
no small measure to the advance in rates made by Director- It has not
been available since June of 1933, when the
General McAdoo at the close of May in that year), but the
addition to the expenses reached $1,148,664,364, or 40.35%, "Crime of 1933" was perpetrated.
Today, a dollar, in the hands of a British exporter, is as
leaving a loss in the net of $284,771,620, or 23.92%. The
prodigious augmentation in the 1918 expenses was due not good as gold, because the Treasury allows gold to be exmerely to the general rise in operating costs, but yet more ported abroad. The same dollar, received by an American
to the tremendous advance in wages granted by Director- bondholder on
principal, or interest, depends entirely on
General McAdoo in May 1918, and made retroactive to the
1st of January of that year. But even for the calendar the word of Congress. That fact, I believe, has had more
year 1917 our compilations showed that while gross had influence in restricting the purchase of bonds by private
increased $430,679,120, or 11.61%, this was attended by investora than all the regulations of the Securities Act.
a rise in operating expenses of $490,738,869, or over 20%, The odds are certainly against the individual
He
leaving a loss of $60,079,749 in net earnings. There was Is offered a low yield in the beginning and ainvestor.
chance that
this qualifying circumstance, however, with reference to the his principal might disappear entirely.
1917 loss in net, namely, that it followed strikingly good
In view of those circumstances I can not visualize a
results, both as regards gross and net, in 1916 and 1915. vival in the capital issues market as far as individual reor
On the other hand, it is equally important to remember non-financial investors are concerned. If such issues
that these gains for 1916 and 1915 represented in part a specify paper dollars, their sale will be restricted to finanrecovery of previous losses.
cial institutions, unless they represent speculative common
In the following we show the yearly comparisons as to stock equities. The outlook is not rosy.
both gross and net for each year back to 1907.
L. MERLE HOSTETLP,R.
Financial Chronicle
1204
Feb. 23 1935
United States Supreme Court Decisions on Gold Clauses
for which it could legally be used. That equivalence or worth
Gold Policy of U. S. Upheld in 5-4 Decision of U. S. purposes
could not properly be ascertained save in the light of the domestic and
Supreme Court—Latter Sustains Right of Congress restricted
market which the Congress had lawfully established. . . .
to Invalidate Gold Clause in Private Contracts
Plaintiff has not shown, or attempted to show, that in relation to buying
but Not as to Federal Obligations—No Actual Power he has sustained any loss whatever. On the contrary, in view of the
Damage Suffered Declares Court, Hence Court of adjustment of the internal economy to the single measure of value as established by the legislation of the Congress, and the universal availability and
Claims Could Not Entertain Suits
use throughout the country of the legal tender currency in meeting all
the
of
right
the
involving
In its long-awaited decision,
engagements, the payment to the plaintiff of the amount which he demands
would appear to constitute not a recoupment of loss in any proper sense
Government to abrogate gold clauses in Federal obligations but
an unjustified enrichment. . . .
and private contracts the United States Supreme Court, in
the conclusions of the majority the Washington
Regarding
to
power
had
a five to four opinion has ruled that Congress
"Herald Tribune" said in
invalidate the gold clause in private contracts but not in the advices Feb. 19 to the New York
part:
that
held
however,
Court,
case of Federal obligations. The
Gold Clause in U. S. Contracts Upheld
no actual damage was suffered, and hence the Court of
The gold clauses in Government contracts were left standing and as valid
involving
cases
the
in
suits
entertain
not
Claims could
as ever by the majority decision, yet, because of the changed economic conbondholders were
Government obligations. The findings of the majority ditions, and resultant Government steps, Governmentthe
contracts. The
not permitted to realize on the exact terms specified in
written by Chief Justice Charles E. Hughes, were concurred decision
on the Government contracts was in a test case brought by John M.
Stone,
F.
Harlen
in by Associate Justices Louis D. Brandeis,
Perry, a New York lawyer, who had owned a $10,000 Liberty bond which
would not pay him gold, he
Owen J. Roberts and Benjamin N. Cardozo all of whom it specified repayment in gold. Since the Treasury
demanded $16,931.25 in devalued "59-cent dollars." The Court held that
upholding
conclusions
majority
the
in
may be noted, joined
the extra $6,931.25 would constitute "unjustified enrichment" in view of
the Minnesota Mortgage Moratorium law, and the New current prices.
While thus acquiescing in the devaluation of the dollar, it declared that
York State Milk Controll law. Associate Justice James
Congress had exceeded its Constitutional powers in saying Government
gold
the
in
opinion
Clark McReynolds wrote the dissenting
contracts need not be paid in gold. The reasoning of the Court was conclause cases, those who concurred in his views being Justices sidered unprecedented in that it held the Constitution violated and yetlin
condoned the effect of the violations. . . .
Pierce Butler, Willis Van Devanter and George Sutherland. effect
The small Supreme Court room which seats but 300 persons was jammed
The Court's findings were given in five cases, Chief Justice 30 minutes before the Justices led by Chief Justice Hughes filed into the
Hughes summarizing as follows these cases and the majority Chamber. Among the spectators were distinguished Government officials,
wives of the Justices, Senatorial leaders, Representatives, young lawyers
decisions,
and stenographers. .
.
I have the opinions and judgments of the Court in No. 270, Norman 43.
Norman vs. Baltimore & Ohio RR. Co., on writ of certiorari to the Supreme
Court of the State of New York; Nos. 471 and 472, United States against
the Bankers Trust Co.. on writs of certiorari to the Circuit Court of Appeals
of the Eighth Circuit: No. 531, F. E. Nortz against the United States.
on certificate from the Court of Claims. and No.532, John M.Perry against
the United States, on certificate from the Court of Claims.
I shall first state the decision of the Court in each of these cases, and
I will then state the grounds of the decisions, as they are set forth in the
several opinions.
The first two cases, Nos. 270 and 471 and 472, relate to the so-called
gold clauses in private obligations, that is, in the bonds respectively of
the Baltimore & Ohio RR.Co.,and the St. Louis Iron Mountain & Southern
Ry. Co.. of the Missouri Pacific System. These cases present questions
of the validity of the joint resolution of Congress of June 5 1933 as applied
to these gold clauses. The Court of Appeals of the State of New York,
In No. 270. the Norman case, and the United States District Court for the
Esusteen District of Missouri, in Nos. 471 and 472, the Missouri Pacific
cases, decided that Congress had the power to adopt the joint resolution
with respect to these obligations of the railroad companies, and, hence,
that the gold clauses could not be enforced and the bonds were payable
in legal tender currency.
We affirm the judgment in those cases.
In No. 531. Nortz vs. the United States, the plaintiff brought suit in
the Court of Claims as a holder of a gold certificate of the United States
Treasury of the face amount of $106,300.for which he claimed to be entitled
to be paid $170,634.07. or $64.334.07 additional, on the basis of the alleged
gold value. The Court of Claims has certified to this Court three questions.
We hold that the plaintiff has shown no actual damage, and, hence,
that the Court of Claims could not entertain the suit. That view requires
an answer to the first question, as to the right of recovery. We answer
the question in the negative; and we find it unnecessary to answer the
other questions.
In No. 532, Perry against the United States, the plaintiff brought suit
In the Court of Claims on a bond of the United States, known as the
Fourth Liberty Loan, 4 X% gold bonds, of 1933 to 1938. The principal
of the bond was for $10.000, upon which he claimed the right to $16,931.25.
on the basis of alleged gold values. The Court of Claims has certified
to this Court two questions.
We hold that the joint resolution of June 5 1933 80 far as it attempted
to override the obligation of the United States created by the bond in
suit, is not within the constitutional authority of Congress, but we hold
that the action is for breach of contract and that plaintiff has failed to
show a cause of action for actual damages, hence. the Court of Claims
could not entertain the suit. In this view, we answer the first question
in the negative. We find it unnecessary to answer the second question.
I will now state the grounds of these decisions as set forth in the respective
opinions.
The views of the majority are embodied in three decisions,
all of which are published in full in this issue of our paper,
along with the views entertained by Justice Stone on the
Liberty bond gold clause and the dissenting views of the
minority. In the majority decision, in the case (Perry vs.
U. S.)involving the Liberty bond gold clause the Court said:
The argument in favor of the joint resolution, as applied to Government
bonds, is in substance that the Government cannot by contract restrict
the exercise of a sovereign power. But the right to make binding obligations is a competence attaching to sovereignty. In the United States,
sovereignty resides in the people who act through the organs established
by the Constitution. . . .
We conclude that the joint resolution of June 5 1933. in so far as it attempted to override the obligation created by the bond in suit, went beyond
the Congressional power,
The question of damages. In this view of the binding quality of the Government's obligations, we come to the question as to the plaintiff's right
to recover damages. That is a distinct question because the Government
not follow
is not at liberty to alter or repudiate its obligations, it does
that the claim advanced by the plaintiff should be sustained. The action
is for breach of contract. . . ,
Plaintiff demands the "equivalent" in currency of the gold coin promof money
ised. But "equivalent" cannot mean more than the amount
which the promised gold coin would be worth to the bondholder for the
Instead of reading the opinion in the case first and giving the decision
afterward, the Chief Justice announced the decision in each of the gold cases
and then in a clear, loud voice read the opinions.
The Court majority held that Perry, in the Liberty bond case seeks to
make his case solely upon the theory that by reason of the change in the
weight of the dollar, he is entitled to $1.69 in the present currency for every
dollar promised by the bond, regardless of any actual loss he has suffered
with respect to any transaction in which his dollars may be used.
"We think that position is untenable."
In the case of holders of Government bonds carrying the gold clause, the
effect of the Supreme Court's decision was:
"Congress does not have the power to invalidate that clause, but the
holder is entitled to only the face value of the bonds in devalued dollars.
He is not entitled to receive compensation therefor at the rate of$1.69 to $1."
In the case of the holders of private corporation bonds bearing the gold
payment provision, the Court said, in effect:
"To pay off these bonds at the rate of $1.69 for $1 would be detrimental
to the nation's economic structure because the corporation income would
be based upon the devalued dollar and it would have to meet debts based
on the appreciated dollar."
"We think," said Chief Justice Hughes in reading the majority opinion,
"that it is clearly shown that these clauses (gold) interfere with the exertion
of the power granted to the Congress and certainly it is not established that
the Congress arbitrarily or capriciously decided that such interference
existed."
Five Decisions Rendered
There were, all told, five opinions. Three were majority decisions read
by Chief Justice Hughes to cover the four types of case. A fourth was the
dissent from the Court conservatives, so called. The fifth was a brief,
separate opinion by Associate Justice Stone, which agreed with the majority
on the main issues, but took the view that the majority opinion had gone
too far in denouncing the resolution by which Congress sought to invalidate
the gold clause in Government contracts.
The voice of the Chief Justice wavered a bit as he began reading the
decisions by which the New Deal passed its first major judicial crisis.
But soon he was reading rapidly and in a clear, loud tone. He emphasized "affirmed" as the Court ruled that Congress had the power to annul
the gold certificate clause in private corporation obligations. The case
was brought by Norman C. Norman of New York, who sought to collect
$39.10 on an interest coupon in which the Baltimore & Ohio Ry. Co. had
promised to pay $22.50 in old-style gold dollars and by trustees of a Missouri
Pacific bond issue to collect at the rate of $1.69 to the dollar.
"It requires no acute analysis or profound economic inquiry," said Chief
Justice Hughes,"to disclose the dislocation of the domestic economy which
would be caused by such a disparity of conditions in which, it is insisted,
those debtors under gold clauses should be required to pay $1.69 in currency
while respectively receiving their taxes, rates, charges and prices on the
basis of $1 of that currency."
In the Perry Liberty bond case, the Court held on one hand that Congress
had acted illegally and on the other hand said those affected by the decision
were helpless unless they could show conclusively that they had suffered
actual damages. The Court of Claims, it was held, cannot entertain action
for nominal damages.
While the high court did not slam the door completely shut on those
seeking recourse from this phase of the New Deal monetary policy, Administration authorities to-night expressed small fear that the Government would
be embarrassed in the future through those attempting to utilize this
81,001.1121.
Difficult to Prove Claims
Officials pointed out it would be difficult for any one to prove actual
damages because the purchasing power of the dollar has not been greatly
.
reduced by the devaluation policy.
The majority held that Mr. Perry was not entitled to damages on the
claim that the gold he was pledged in his Liberty Bond would have an
appreciated value abroad.
Justice McReynolds's caustic attack upon the majority decision and the
gold policy of the Administration surprised the crowded room. He opened
his discussion of the dissenting opinion with the observation that he and
his colleagues concluded:
will
" . . . That if given effect the enactments here challenged
bring about a confiscation of property rights and repudiation of national
obligations."
"Acquiescence in the decisions just announced is impossible; the circumstances demand statement or our views," the minority report declared.
Volume 140
Financial Chronicle
The power of Congress to adopt a proper "monetary policy" necessary
to
provide for national obligations and furnish an adequate medium
of exchange for public use, was not questioned.
"The fundamental problem now presented, is whether recent statutes
Passed by Congress in respect of money and credits, were designed to attain
a legitimate end," the report continued. "Or whether, under the guise of
pursuing a monetary policy, Congress really has inaugurated a plan primarily designed to destroy private obligations, repudiate national debts, and
drive into the Treasury, all gold within the country in exchange for inconvertible promises to pay, of much less value.
"Considering all the circumstances, we must conclude they show that the
plan disclosed is of the latter description, and its enforcement would deprive
the parties before us of their rights under the Constitution."
"In view of the control of export and foreign exchange." the majority
opinion held, "and the unrestricted domestic use of gold, the question of
value, in relation to transactions equally available to the plaintiff would
require a consideration of the purchasing power of the dollar which
the
plaintiff has received.
"Plaintiff has not shown, or attempted to show,that in relation to buying
power he has sustained any loss whatever. On the contrary, in view of the
adjustment of the interior economy to the single measure of value as established by the legislation of the Congress, and the universal availability and
use throughout the country of the legal tender currency in meeting
all
engagements, the payment of the plaintiff of the amount which he demands
would appear to constitute not a recoupment of loss in any proper sense,
but
an unjustified enrichment."
Norte Suit Thrown out
The court threw out a suit of F. Eugene Nortz demanding that he be
paid $1.69 for each dollar on $106,000 gold certificates he turned in under
the anti-hoarding orders.
The dissenters warned that under the Court action to-day "a gold dollar
containing one grain of gold may become the standard, all contract
rights
fall, and huge profits appear on the Treasury books."
"Instead of $2,800,000,000 as recently reported profit from Federal
reserve gold perhaps $20,000,000.000, maybe enough to cancel the public
debt, maybe morel"
Questioning the power of Congress to authorize devaluation of the dollar
40%, as upheld by the majority, the minority opinion declared:
"If this reduction of 40% of all debts was within the power of Congress
and if as a necessary means to accomplish that end Congress had power
by
resolution to destroy the gold clauses, the holders of these corporate bonds
are without remedy.
"But we must not forget that if this power exists Congress may readily
destroy other obligations which present obstruction to the desired effect
of further depletion. The destruction of all obligations by reducing
the
standard gold dollar to one grain of gold or brass or nickel or copper or lead
will become an easy possibility."
The dissenters said flatly that the end or objective of the joint resolution
through which the gold policy was effectuated "was not legitimate."
"The real purpose," it was said, "was not to 'assure uniform value to the
coin and currencies of the United States,' but to destroy certain valuable
contract rights. The recitals do not harmonize with circumstanc
es then
existing."
Pointing out that Congress may coin money and also borrow money,the
minority said neither power "may be exercised so as to destroy the other."
. . . The complexity of the cases was suggested by the fact that
Government legal experts, as well as newspaper men, were confused for a time
as to the ultimate meaning of the decisions. One Washington newspaper
carried the startling news that the Government would be compelled to
pay
$1,690 on every $1,000 bond. This was changed in the next edition.
The Administration's legal experts likewise appeared to change their
conclusions as they came into possession of the text of the opinions. Where
at first they felt that there could be no more obligation on the Government
to pay more than the face value of its bonds in devalued dollars,they shifted
to the ground to-night that, with bonds issued over a period of many years
and at varying price levels, a situation was conceivable in which the Government would have a moral obligation to pay more.
The court laid down the doctrine, these advisers pointed out, that as
long as the type of dollar offered was worth just as much as the kind
of
dollar to which Perry claimed he was entitled, there were no damages.
It
was acknowledged, on the other hand, that the court did
actually
not
close
the door to the possibility that in the event ofa free gold market,for
instance,
the situation might be different and damages might
be proved.
Despite the conclusions in other circles, these Presidential advisers
insisted that a very sharp rise in the price level would not make
a difference
such as to justify a claim for damages. They insisted that
it was a question
of parity between different kinds of dollars and
not a question of purchasing
power.
With regard to the separate views of Justice Stone in the
case of Liberty Loan gold clause, we quote the following
from the Washington dispatch Feb. 18 to the New York
"Times":
Deploring with the entire Court the repudiation
of the gold contract in
Government obligations, Justice Stone fully
agreed that the Government
bondholder, John M. Perry, who sued, had no present
standing in the
Court of Claims. But he said the statement that the
Government's gold
clause obligation was greater than that of a private individual
may operate
to "interpose serious obstacles to the adoption of
measures to stabilize the
dollar" at any gold point desired by Congress. He
summed up as follows:
I . . . do not join in so much of the opinion as
may be taken to
suggest that the exercise of the sovereign power to borrow
money on credit,
which does not override the sovereign immunity from suit,
may nevertheless
preclude or impede the exercise of another sovereign power,
to regulate the
value of money; or to suggest that, although there is and
can be no present
cause of action upon the repudiated gold clause,its obligation is
nevertheless
in some manner and to some extent, not stated, superior to
the power to
regulate the currency which we now hold to be superior to the
obligation of
the bonds.
Federal Bondholders' Outlook
The majority finding that the repeal of the gold clause in public
obligations was unconstitutional cannot be practically applied for the following
reasons:
The Court stated firmly that Perry, the litigant in this particular
case,
not only had offered no proof of damage but had actually suffered none.
and thus it took the ground from beneath any similar suit, while the gold
content of the dollar remains as it Is and there is no free gold market.
Another litigant could hardly hope to prove damages when the
Supreme
Court so strongly implied that, under existing conditions, Perry had taken
none. So much for actions in the Court of Claims under breach of contract,
pleading the declared unconstitutionality of the statute. The Court
of
Claims is the only tribunal wherein the Government can be sued for damages
or loss.
1205
Should revaluation occur, or a free gold market be established, which
would open the court to suits for breach of contract and proof of damage.
Congress has only to pass a specific statute and prevent such actions also.
Therefore the result of the declaration of unconstitutionality is nil to a
holder of a gold-clause Government obligation and can be kept nil by
statute against any change in the economic situation.
From the same account we also quote in part as follows:
Three Support McReynolds
Joining with the Chief Justice in affirming the lower court judgment
that
sustained Government action throughout were Justices Brandeis,
Roberts,
Cardozo and Stone. The dissenting four, whose views were orally
expounded in a remarkable address by Justice McReynolds, were
himself.
Justices Van Deventer, Butler and Sutherland.
In announcing its rulings, the Nation's highest court broke one precedent
and badly shattered another. The Chief Justice read a brief
summary of
the findings before he began reading the text, an unprecedented action.
Justice McReynolds, putting aside the dissenting text, interposed
for
nearlyhall' an hour heated and extemporaneous remarks in which
he confessed "shame and humiliation" over the majority decision. [His remarks
are referred to in greater detail in another item in this issue of our paper—
Ed.1
In open court he said. "The Constitution is goner . .
McReynolds "Rehearses" Opinion
After Justice Stone had stated his objection to the discussion in the
Chief
Justice's opinion of question No.2,since he agreed it should not be answered.
Justice McReynolds began his remarks.
He said that the written opinion of the minority was available to any who
wished to read it and that it might be well to "rehearse" the reasoning
in
open court.
"It is a plain simple tale," he said. "It seems impossible to over-estima
te
the result of what has been done here to-day." The Constitution, he said.
"Is gone." Government guarantees to its citizens were swept away.
The
people's fundamental rights had been pre-empted by Congress. Some
day
the truth will be seen.
Debased currencies were not new. Nero attempted to exercise that
power
In ancient Rome. The justice spoke of the war days when "men stood
on
the street corners and said these bonds, with the solemn promise of
the
Government back of them, were the finest in the world." But Congress
saw fit to pass laws destroying "all these contracts. It's not a thing
I like
to talk about. God knows I wish I didn't have to. But there are some
responsibilities attaching to a man on this bench to reveal to the
bar, in
all its nakedness, just what has been done."
He then orally reviewed the reasoning in the written
dissent, ending
with his remark about "shame and humiliation." When he
had finished
there was a stir in the Court, but the Marshal rapped for
order,and the
Chief Justice calmly proceeded to read another opinion in
a wholly unrelated case. The sensational episode had passed into history.
Enforceable Contract Is Seen
As written, the dissenting text began with a description
of the repea
of the gold clauses as "repudiation and spoliation of citizens
by their
sovereign," and called the clauses a definite, enforceable
contract. The
minority pointed out with severity that the Government as
late as May
2 1933 had issued obligations for $550,000,000 including the gold
clause.
The four Justices cited the International Court of Arbitration
rulings
In the Brazilian repudiation case,in which the Chief Justice—then
a member
of the tribunal—joined in upholding the validity of a gold clause.
The
case of Gregory vs. Morris points the way to fix Perry's damages,
said the
minority. It conceded that, however much It deplored the majority's
finding, the gold cases should be settled promptly in the interest
of "legitimate commerce."
The minority did not challenge the right of Congress to fix the
gold
content of the dollar, or to call in gold coin, bullion and certificates.
But
It opposed repudiation, saying that the devaluation of 1834 and the Legal
render Act were for the purposes of meeting, not repudiating, obligations.
The Government, on the majority's reasoning, wrote the minority,
could fix a dollar with one grain of gold and give a huge profit to the
Treasury, "enough to cancel the public debt." The Thomas Amendment
destroyed "legally acquired rights," and the gold clause repeal
violates the
Fifth Amendment, in that there is no provision for compensati
on. The
dissenters mentioned specifically that the Philippine Governmen
t and
Americans in the foreign service were compensated for losses
through dollar
depreciation, but that domestic citizens were not . . .
Capital Had Developed Nerves
For more than a month the capital had been in a state of
nerves over
the gold decision. When the suits were first brought, little attention
was
paid to them. Yet they, in their final phase, east a shadow
over the Government deeper than any since the banking crisis of 1933.
On two previous Saturdays, so great was the tension, the Supreme
Court
had authorized its clerk to announce that there would be no
gold opinions
on the subsequent Mondays. Last Saturday no announceme
nt was forthcoming, which led to the confident, and correct expectation
of the action
to-day.
The Treasury was especially intent over the outcome of a
decision which
would prescribe whether payment on interest and principal
at the rate of
$1.693 for each $1 was legal on all obligations incurred prior to
June 5 1933.
Including gold certificates.
In the week the joint resolution was passed, Government
obligations
amounted to 21 billions, of which 7 billions have since been retired.
Private
obligations had been estimated at 75 billions, and Federal
commitments,
other than Government bonds and notes, were estimated
at 5 billions.
Extemporaneous Remarks of Justice McReynolds of
U. S. Supreme Court in Dissenting from the Majority Decision on Gold Clauses—Says New Deal Congress Strips Us of"the Very Fundamentals"
Indicating that Associate Justice McReynolds in an extemporaneous speech in the Supreme Court chamber
on
Feb. 18, incident to the delivery of the minority
opinion in
the Cold Clause cases, entered into a criticism
of the New
Deal currency policies, a Washington dispatch
(Feb. 18) to
the New York "Times" continued in part:
There were gasps as the 73-year-old
Tennesseean, scarcely glancing at
his manuscript, declared that Nero
undertook to use a debased currency,
asserted that the Constitution had "gone,"
and expressed the "shame and
humiliation" of the minority consisting of
himself and Justices Vandevanter.
Sutherland and Butler.
1206
Financial Chronicle
At the very outset he said that to share the view of the majority would
mean a "repudiation of national obligations," and that "these things are
abhorrent" to himself and the three other Associate Justices.
His striking utterance came as a complete surprise, even though it had
been believed that the Court would split on the celebrated issue. . . .
a
He scoffed at the idea that the framers of the Constitution would for
moment sanction repudiation of the "solemn pledges" of the gold clauses,
which Congress had "swept away with a word." He remarked that "millions
of dollars" had been invested with these "solemn pledges" as an assurance
to investors.
Chief Justice Hughes and Justices Brandeis, Stone, Roberts and Cardoza
of the majority, sat silent while the former Attorney-General in the Wilson
Cabinet proceeded with his onslaught.
One or two of the justices glanced slightly toward Justice McReynolds
as he declared that he did not want to talk about the present situation
In the Government, but that a Supreme Court Justice had a responsibility
"to reveal in all its nakedness just what has been done." . . .
He[Justice McReynolds]spoke for 20 minutes, and as he took this method
of expressing the written views of the minority, no transacript was made
of his remarks. Newspaper men caught many, but not all, of his rapid
wordsland phrases. No official record was made for the Court.
He stated early that the minority had written a 1,000-word opinion,
as well
available to those who wished to read it, but that it might be just
it means
to "rehearse" the conclusions of the minority "to see exactly what
and just what the situation is."
"It is a plain, simple tale," he went on.
Pausing, he added slowly but very distinctly:
done
"It seems impossible to overestimate the result of what has been
here to-day."
seem "too
Here he spoke of the Constitution, adding that it did not
much to say that it is gone."
Says Guarantees Are Swept Away
have looked to
"The guarantees to which men and women heretofore
s conProtect their interests have been swept away," Justice McReynold
we stand as
tinued. "The powers of Congress have been enlarged, and
a people to-day stripped of the very fundamentals."
in the days
He declared that the picture was not overdrawn, and that
be seen.
to come when "the panorama was unfolded" the truth would
against a de"The people expected these gold clauses to protect them
new.
nothing
based currency," he exclaimed. "A debased currency is
ago in France it
Nero undertook toiexercise that power. Six centuries
was regarded as a prerogative of the sovereign.
of dollars
"On the strength of these obligations, hundreds of millions
were sold
were loaned to the great corporations of the country. Bonds
to men, women and children throughout the world."
the gold
But Congress, Justice McReynolds said, "may sweep away"
public
clauses "with a word, and in the face of the facts, declare it against
Policy."
Solemn Promise of Congress Seen
solemn
Discussing Liberty Bonds, he said that Congress "executed a
bond" to pay in gold.
Govern"Billions and billions of dollars of these bonds were issued by this
War
ment with that solemn contract," he continued. "During the World
in the
men stood on the street corners andsaid these bonds were the finest
They
them.
of
back
t
world, with the solemn promise of the Governmen
told the people their country was in danger."
the
But in April 1933 it had been decreed that all gold should come into
Treasury,and that thereshould be issued for that gold "any kind of money."
Justice
the
"For every dollar of gold we issued a depreciated currency,"
declared.
the right to
He remarked that Congress had given to the President
he continued,
depreciate the gold content of the dollar up to 50%. Congress,
for the
saw necessary to pass a law "to destroy every one of these contracts
payment of obligations in gold."
Relating the steps taken in the currency program, he said:
"That's the state to which our Government has come."
later. "God
"This is not a thing I like to talk about," he remarked
responsibilities atknows I wish I didn't have to. But there are some
nakedness,
its
all
in
bar,
taching to a man on this bench to reveal to the
just what has been done.
repudiate a Gov"In one breath it is said that Congress has no power to
true you have but
ernment obligation. In the next breath, it is said, it is
has made it unCongress
60 cents and you were promised a dollar, but
Since it is unlawful
lawful for you to accept what you contracted for.
been damaged.
for you to accept what you contracted for, you have not
You must accept
"The Treasury says, 'Here is the depreciated dollar.
this depre'Take
says,
it for your contract.' The Treasury of a great nation
accept what is due you.'
ciated dollar. Congress made it unlawful for you to
And since it is unlawful there is no damage."
refused to use
0.Justice McReynolds remarked that he and the minority
the mind" from the
"mere generalities or a multitude of words to distract
issues involved.
a monetary system,
6,1"No one denies that Congress had the right to adopt
system," he conbut it does not follow that it can adopt any monetary
tinued.
law, to repudiate
the
under
It was not intended to give Congress power,
the obligations in question, he held.
Almost a Wicked System
almost said the wicked"Here we have a monetary system, the extent—I
the Justice continued.
ness—of which is almost beyond comprehension,"
the dollar to 50 cents.
"First, we give the President power to depreciate
statute. Not only private
Next, we destroy all these private obligations by
obligations but Government obligations as well.
clause bonds in May,
"And so, having put out $500,000,000 of gold
promisee to pay in gold are
Congress in July says all these contracts or
to destroy these gold clauses,
contrary to_publlc policy. Having undertaken
commodities can now be estithe dollar is depreciated to 60 cents. Prices of
of a dollar we have 60 cents.
mated in the deflated dollar,and now instead
great corporations, all bank
"All mortgages of the railroads and the
of man has accumulated
deposits, all,insurance funds, everything the thrift
n.
towardpispid age is subject to this depreciatio
No Such Power Granted, He Says
framers of the Constitution.
"No such power was ever granted by the
It is not there to-day.
It was not there then. It was not there yesterday.
dollar may be reduced to
We are confronted with a condition in which the
the next day and 1 cent the
50 cents to-day, 30 cents to-morrow, 10 cents
after.
day
out of this transaction the
"We are told that the Government has made
in the Treasury."
royal sum of 32,800,000,000, which now reposes
could depreciate the dollar
On that basis, Mr. McReynolds said, "you
you abundant capital to pay off
to 10 cents or Scents, and that,would give
obligations as well,
the public debt and discharge the private
to be the law." he declared.
"That never was the law and it ought never
Feb. 23 1935
United States Supreme Court Decisions on Constitutionality of Gold Clause Provisions of Government
Obligations—Conclusions in Suit Brought in
Claims Court Involving Clause in Liberty Loan
Bond—Separate Opinion of Justice Stone
While more extended reference is made elsewhere in these
columns to the conclusions handed down on Feb. 18 by the
United States Supreme Court on the validity of the gold
clauses in Government obligations and private contracts,
we are giving under separate heads the findings of the
Court in the several cases before the Court. Below we give
the decision affecting the clause in the Fourth Liberty Bond,
as to which Chief Justice Hughes had the following to say
in summarizing the Court's conclusions:
suit in the
In No. 532, Perry vs. United States, the plaintiff brought
Liberty
Court of Claims on a bond of the United States known as Fourth
Loan 4X% gold bond of 1933-38. The plaintiff's bond was for $10,000.
gold
upon which he claimed the right to $16,931.25 on the basis of alleged
value. The Court of Claims has certified to this Court two questions.
attempted
it
as
far
We hold that the Joint Resolution of June 5 1933, so
in suit,
to override the obligation of the United States created by the bond
But
is invalid. It went beyond the constitutional authority of Congress.
failed
we hold that the action is for breach of contract and that plaintiff has
Claims
of
to show cause of action for actual damages. Hence, the Court
in the
could not entertain the suit. In this case we answer the first question
negative. We find it unnecessary to answer the second question.
The Supreme Court decision in the Liberty Bond appeal
follows:
SUPREME COURT OF THE UNITED STATES
No. 532—October Term, 1934
Court
John M. Perry vs. the United States—On Certificate from the
of Claims (February 18, 1935).
Mr. Chief Justice Hughes delivered the opinion of the Court.
The certificate from the Court of Claims shows the following facts:
States
Plaintiff brought suit as the owner of an obligation of the United
"
for $10,000,known as "Fourth Liberty Loan 4X% gold bond of 1933-1938.
as
288),
Stat.
(40
24
1917
This bond was issued pursuant to the Act of Sept.
28 1918.
amended, and Treasury Department Circular No. 121, dated Sept.
The bond provided:
gold coin
"The principal and interest hereof are payable in United States
of the present standard of value."
issued, and
Plaintiff alleged in his petition that at the time the bond was
gold .9
when he acquired it, "a dollar in gold consisted of 25.8 grains of
and, on
fine"; that the bond was called for redemption on April 15 1934,
demanded its
May 24 1934, was presented for payment; that plaintiff
25.8
redemption "by the payment of 10,000 gold dollars each containing
demand,
grains of gold .9 fine"; that defendant refused to comply with that
of
gold
or
fine,
.9
gold
and that plaintiff then demanded "258,000 grains of
containing
equivalent value of any fineness, or 16,931.25 gold dollars each
currency";
15 5-21 grains of gold .9 fine, or 16,931.25 dollars In legal tender
payment of
that defendant refused to redeem the bond "except by the
based
were
10,000 dollars in legal tender currency"; that these refusals
113) but
on the joint resolution of the Congress of June 5 1933 (48 Stat.
plaintiff
that this enactment was unconstitutional as it operated to deprive
of deof his property without due process of law; and that, by this action
s
defendant'
of
fendant, he was damaged "in the sum of $16,931.25, the value
judgment.
demanded
obligation," for which, with interest, plaintiff
not state a
Defendant demurred upon the ground that the petition did
cause of action against the United States.
The Court of Claims has certified the following questions:
a Fourth Liberty
"1. Is the claimant, being the holder and owner of
of 310,000,
Loan 43-% bond of the United States, of the principal amount
1934, and which
15
issued in 1918, which was payable on and after Aprilin United
States gold
'payable
Is
principal
the
that
clause
a
contained
bond
from the United
coin of the present standard of value,' entitled to receive
amount
face
States an amount in legal tender currency in excess of the
of the bond?
gold
434%
Loan
Liberty
"2. Is the United States as obligor in a Fourth
to respond in damages
bond,series of 1933-1938,as stated in Question 1 liable
13y
contract,
express
an
as
bonds
on
such
Claims
in a suit in the Court of
e in accordance with
reason of the change in or impossibility of performanc
10, 73rd
No.
Resolution
Public
of
provisions
the
to
due
thereof,
the tenor
Congress, abrogating the gold clause in all obligations?"
First—The Import of the Obligation.
or of
The bond in suit differs from an obligation of private parties,
in subStates or municipalities, whose contracts are necessarily made
Baltimore &
jection to the dominant power of the Congress. Norman vs.
obligation
Ohio RR. Co., decided this day. The bond now before us Is an
were not
of the United States. The terms of the bond are explicit. They
by the
prescribed
only expressed in the bond itself, but they were definitely
Congress.
auThe Act of Sept. 24 1917, both in its original and amended form,
"on the
thorized the moneys to be borrowed, and the bonds to be issued,
the
"for
credit of the United States," in order to meet expenditures needed
by
national security and defense and other public purposes authorized
t of
law." 40 Stat. 288, 503. The circular of the Treasury Departmen
rights
Sept. 28 1918, to which the bond refers "for a statement of the further
principal and
of the holders of bonds of said series," also provided that the
of
standard
the
present
gold
coin
of
States
interest "are payable in United
value."
This obligation must be fairly construed. The "present standard of
promise
value" stood in contradistinction to a lower standard of value. The
obviously was intended to afford protection against loss. That protection
Governthe
of
or
a
measure
up
standard
setting
by
was sought to be secured
is
ment's obligation. We think that the reasonable import of the promise
t
that it was intended to assure one who lent his money to the Governmen
the
in
n
and took its bond that he would not suffer loss through depreciatio
medium of payment.
The Government states In its brief that the total unmatured interestbearing:obligations of the United States outstanding on May 31 1933 (which
that of
it is_understood.contained a "gold clause" substantially the same as
statements
the bond in suit) amounted to about 21 billions of dollars. From
ely
at the bar, it appears that this amount has been reduced to approximat
g period the
12 billions at the present time, and that during the intervenin
(making a
public debt of the United States has risen some seven billions
0,000
total of approximately 528.500,000,000) by the issue ofsome $16,500.00
"of non-gold clause obligations."
Second—The Binding Quality of the Obligation.
Volume 140
Financial Chronicle
The question is necessarily presented whether the Joint Resolution of
June 5 1933 (48 Stat. 113) is a valid enactment so far as it applies to the
obligations of the United States.
The resolution declared that provisions requiring "payment in gold
or a particular kind of coin or currency" were "against public policy,"
and provided that "every obligation, heretofore or hereafter incurred.
whether or not any such provision is contained therein." shall be discharged
"upon payment, dollar for dollar, in any coin or currency which at the time
of payment is legal tender for public and private debts."
This enactment was expressly extended to obligations of the United
States and provisions for payment in gold."contained in any law authorizing
obligations to be issued by or under authority of the United States," were
repealed. (A).
Power of Congress to Regulate Value of Money
There is no question as to the power of the Congress to regulate the value
of money, that is, to establish a monetary system and thus to determine the
currency of the country. The question is whether the Congress can use that
power so as to invalidate the terms of the obligations which the Government has theretofore issued in the exercise of the power to borrow money
on the credit of the United States.
In attempted justification of the Joint Resolution in relation to the
outstanding bonds of the United States, the Government argues that
"earlier Congresses could not validly restrict the 73rd Congress from exer cising its constitutional powers to regulate the value of money, borrow
money, or regulate foreign and inter-State contmerco." and from this
premise, the Government seems to deduce the proposition that when, with
adequate authority, the Government borrows money and pledges the credit
of the United States, it is free to ignore that pledge and alter the terms of its
obligations in case a later Congress finds their fulfillment inconvenient.
The Government's contention thus raises a question of far greater importance than the particular claim of the plaintiff. On that reasoning, if
the terms of the Government's bond as to the standard of payment can be
repudiated, it inevitably follows that the obligation as to the amount to be
paid may also be repudiated. The contention necessarily imports that the
Congress can disregard the obligations of the Government at its discretion
and that, when the Government borrows money, the credit of the United
States is an illusory pledge.
We do not so read the Constitution. There is a clear distinction between
the power of the Congress to control or interdict the contracts of private
parties when they interfere with the exercise of its constitutional authority.
and the power of the Congress to alter or repudiate the substance of its own
engagements when it has borrowed money under the authority which the
Constitution confers.
In authorizing the Congress to borrow money, the Constitution empowers
the Congress to fix the amount to be borrowed and the terms of payment,
By virtue of the power to borrow money "on the credit of the United States,"
the Congress is authorized to pledge that credit as an assurance of payment
as stipulated—as the highest assurance the Government can give,its plighted
faith.
To say that the Congress may withdraw or ignore that pledge is to assume
that the Constitution contemplates a vain promise, a pledge having no other
sanction than the pleasure and convenience of the pledger. This Court has
given no sanction to such a conception of the obligations of our Government.
The binding quality of the obligations of the Government was considered
in the Sinking Fund cases. 99 U. S. 700. 718, 719. The question before the
Court in those cases was whether certain action was warranted by a
reservation to the Congress of the right to amend the charter of a railroad
company. While the particular action was sustained under this right of
amendment, the Court took occasion to state emphatically the obligatory
character of the contracts of the United States. The Court said:
"The United States are as much bound by their contracts as are individuals. If they repudiate their obligations, it is as much repudiation,
with all the wrong and reproach that term implies, as it would be if the
repudiator had been a State or a municipality or a citizen."(B)
When the United States, with constitutional authority, makes contracts,
it has rights and incurs responsibilities similar to those of individuals who
are parties to such instruments. There is no difference, said the Court in
United States vs. Bank of Metropolis, 15 pet. 377. 392, except that the
United States cannot be sued without its consent. See also, the Floyd
Acceptances, 7 Wall 666. 675; Cooke vs. United States, 91 U. S. 389, 396.
In Lynch vs. United States, 292 U. S. 571, 580, with respect to an attempted abrogation by the Act of March 20 1933 (48 Stat. 8, 11), of certain
outstanding war risk insurance policies, which were contracts of the United
States, the Court quotes with approval the statement in the Sinking Fund
cases, supra, and said: "Punctilious fulfillment of contractual obligations
is essential to the maintenance of the credit of public as well as private
debtors. No doubt there was in March 1933, great need of economy. In the
administration of all government business economy had become urgent
because of lessened revenues and the heavy obligations to be issued in the
hope of relieving widespread distress. Congress was free to reduce gratuities
deemed excessive. But Congress was without power to reduce expenditures
by abrogating contractual obligations of the United States. To abrogate
contracts, in the attempt to lessen government expenditure, would be not
the practice of economy, but an act of repudiation."
The argument in favor of the joint resolution, as applied to Government
bonds, is in substance that the Government cannot by contract restrict the
exercise of a sovereign power. But the right to make binding obligations
is a competence attacning to sovereignty. (C).
In the United States sovereignty resides in the people, who act through
the organs established by the Constitution. Chisholm vs. Georgia, 2
Dail. 419, 471; Penhallow vs. Doane's Administrators, 3 Dail. 54, 93;
McCulloch vs. Maryland, 4 Wheat, 316, 404, 405; Yick Wo vs. Hopkins,
118 U. S. 356, 370.
The Congress as the instrumentality of sovereignty is endowed with
certain powers to be exerted on behalf of the people in the manner and with
the effect the Constitution ordains. The Congress cannot invoke the
sovereign power of the people to override their will as thus declared.
The powers conferred upon the Congress are harmonious. The Constitution gives to Congress the power to borrow money on the credit of
the United States, an unqualified power, a power vital to the Government.
upon which in an extremity its very life may depend. The binding quality
of the promise of the United States is of the essence of the credit which
is so pledged.
Having this power to authorize the issue of definite obligations for the
payment of money borrowed, the Congress has not been vested with authority to alter or destroy those obligations. The fact that the United
States may not be sued without its consent is a matter of procedure which
does not affect the legal and binding character of its contracts. While
the Congress is under no duty to provide remedies through the courts, the
contractual obligation still exists and. despite infirmities of procedure,
remains binding upon the conscience of the sovereign. Lynch vs. United
States, supra, pp. 580, 582.
The Fourteenth Amendment, in its fourth section, explicitly declares:
"The validity of the public debt of the United States, authorized by
. shall not be questioned."
law,
1207
While this provision was undoubtedly inspired by the desire to put
beyond question the obligations of the Government issued during the Civil
War, its language indicates a broader connotation. We regard it as confirmatory of a fundamental principle which applies as well to the Government bonds in question, and to others duly authorized by the Congress, as
to those issued before the amendment was adopted. Nor can we perceive
any reason for not considering the expression "the validity of the public
debt" as embracing whatever concerns the integrity of the public obligations.
We conclude that the Joint Resolution of June 5 1933, in so far as it attempted to override the obligation created by the bond in suit, went beyond
the Congressional power.
Third. The Question of Damages.
In this view of the binding quality of the Government's obligations, we
come to the question as to the plaintiff's right to recover damages. That
is a distinct question. Because the Government is not at liberty to alter or
repudiate its obligations, it does not follow that the claim advanced by the
plaintiff should be sustained. The action is for breach of contract. As a
remedy for breach, plaintiff can recover no more than the loss he has
suffered and of which he may rightfully complain. He is not entitled to be
enriched.
Plaintiff seeks judgment for S16,931.25, in present legal tender currency,
on his bond for $10.000. The question is whether he has shown damage to
that extent, or any actual damage, as the Court of Claims has no authority
to entertain an action for nominal damages. Grant vs. United States,
7 Wall. 331,338; Marion and Rye Railway Co. vs. United States, 270 U. S.
280, 282; Nortz vs. United States, decided this day.
Change in Weight of Cold Dollar
Plaintiff computes his claim for $16,931.25 by taking the weight of the
gold dollar as fixed by the President's proclamation of Jan. 31 1934, under
the Act of May 12 1933 (48 Stat. 52, 53), as amended by the Act of Jan.
30 1934 (48 Stat. 342), that is. at 15 5-21 grains nine-tenths fine, as compared with the weight fixed by the Act of March 14 1900 (31 Stat. 45).
or 25.8 grains nine-tenths fine.
But the change in the weight of the gold dollar did not necessarily cause
loss to the plaintiff of the amount claimed. The question of actual loss
cannot fairly be determined without considering the economic situation
at the time the Government offered to pay him the $10,000, the face of his
bond, in legal tender currency.
The case is not the same as if gold coin had remained in circulation.
That was the situation at the time of the decisions under the Legal Tender
Acts of 1862 and 1863. Bronson vs. Hodes, 7 Wall, 229. 251; Trebilcock vs.
Wilson. 12 Wall. 687, 695; Thompson vs. Butler, 95 U. S. 694, 696, 697.
Before the change in the weight of the gold dollar in 1934, gold coin had
been withdrawn from circulation. (D) The Congress had authorized the
prohibition of the exportation of gold coin and the placing of restrictions
upon transactions in foreign exchange. Acts of March 9 1933, 48 Stat. 1:
Jan. 30 1934, 48 Stat. 337. Such dealings could be had only for limited
purposes and under license. Executive Orders of April 20 1933, Aug.
28 1933. and Jan. 15 1934; Regulations of the Secretary of the Treasury,
Jan. 30 and 31 1934.
That action the Congress was entitled to take by virtue of its authority
to deal with gold coin as a medium of exchange. And the restraint thus
imposed upon holders of gold coin was incident to the limitations which
inhered in their ownership of that coin and gave them no right of action.
Ling Su Fan vs. United States, 218 U. S. 302. 310, 311. The Court said
in that case:
"Conceding the title of the owner of such coins, yet there is attached
to such ownership those limitations which public policy may require by
reason of their quality as a legal tender and as a medium of exchange. These
limitations are due to the fact that public law gives to such coinage a value
which does not attach as a mere consequence of intrinsic value. Their
quality as a legal tender is an attribute of law aside from their bullion value.
They bear, therefore, the impress of sovereign power which fixes value and
authorizes their use and exchange. . . . However unwise a law may
be, aimed at the exportation of such coins, in the face of the axioms against
constructing the free flow of commerce, there can be no serious doubt that
the power to coin money includes the power to prevent its outflow from the
country of its origin."
The same reasoning is applicable to the imposition of restraints upon
transactions in foreign exchange. We cannot say, in view of the conditions
that existed, that the Congress having this power exercised it arbitrarily or
capriciously. And the holder of an obligation, or bond, of the United
States, payable in gold coin of the former standard, so far as the restraint
upon the right to export gold coin or to engage in transactions in foreign
exchange is concerned, was in no better case than the holder of gold coin
itself.
In considering what damages, if any, the plaintiff has sustained by the
alleged breach of his bond, it is hence inadmissible to assume that he was
entitled to obtain gold coin for recourse to foreign markets or for dealings
In foreign exchange or for other purposes contrary to the control over gold
coin which the Congress had the power to exert, and had exerted, in its
monetary regulations.
Plaintiffs damages could not be assessed without regard to the internal
economy of the country at the time the alleged breach occurred. The discontinuance of gold payments and the establishment of legal tender currency on a standard unit of value with which "all forms of money" of the
United States were to be "maintained at a parity," had a controlling influence upon the domestic economy. It was adjusted to the new basis.
A free domestic market for gold was non-existent.
Plaintiff demands the "equivalent" in currency of the gold coin promised.
But "equivalent" cannot mean more than the amount of money which the
promised gold coin would be worth to the bondholder for the purposes for
which it could be legally used. That equivalence or worth could not
properly be ascertained save in the light of the domestic and restricted
market which the Congress had lawfully established.
In the domestic transactions to which the plaintiff was limited, in the
absence of special license, determination of the value of the gold coin
would necessarily have regard to its use as legal tender and as a medium
of exchange under a single monetary system with an established parity of
all currency and coins. And in view of the control of export and foreign
exchange, and the restricted domestic use, the question of value, in relation
to transactions legally available to the plaintiff, would require a consideration of the purchasing power of the dollars which the plaintiff could have
received.
Plaintiff has not shown, or attempted to show, that in relation to buying
power he has sustained any loss whatever. On the contrary, in view of
the adjustment of the internal economy to the single measure of value as
established by the legislation of the Congress, and the universal availability
and use throughout the country of the legal tender currency in meeting all
engagements, the payment to the plaintiff of the amount which he demands
would appear to constitute not a recoupment of loss in any proper sense
but an unjustified enrichment.
Plaintiff seeks to make his case solely upon the theory that by reason of
the change in the weight of the dollar he is entitled to $1.69 in the present
currency for every dollar promised by the bond, regardless of any actual
loss he has suffered with respect to any transaction in which his dollars
may be used. We think that position is untenable.
1208
Financial Chronicle
In the view that the facts alleged by the petition fail to show a cause
of action for actual damages, the first question submitted by the Court
of Claims is answered in the negative. It is not necessary to answer the
second question.
Question Number 1 is answered "No."
(A) And subdivision (b) of Section 1 of the Joint Resolution of June.
-5
1933. provided:
"M—used in ----71
thh Tsolution
—...term 'obligation' means an obligation
(Including every obligation of and to the United States excepting currency)
payable in money of the United States;and the term coin or 'currency' means
coin or currency ofthe United States,including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations."
(B) Mr. .1„stice Strong, who had written the opinion of the majority
of the Court in the legal tender cases(Knox vs. Lee,12 Wall. 457). dissented
in the Sinking Fund cases, 99 IT. S., p. 731, because he thought that the
action of the Congress was not consistent with the Government's engagement and hence was a transgression of legislative power.
And with respect to the sanctity of the contracts of the Government he
quoted, with approval, the opinion of Mr. Hamilton in his communication
to the Senate of Jan. 20 1795 (citing 3 Hamilton's Works, 518. 519) that
"When a government enters into a contract with an individual it deposes.
as to the matter of the contract, its constitutional authority, and exchanges
the character of legislator for that of a moral agent, with the same rights
and obligations as an individual. Its promises may be justly considered
as excepted out of its power to legislate unless in aid of them. It is in theory
impossible to reconcile the idea of a promise which obliges, with the power
to make a law which can vary the effect of it."
(C) Oppenheim, International Law, 4th ed., vol. 1. Secs. 493, 494.
This is recognized in the field of international engagements. Although
there may be no judicial procedure by which such contracts may be enforced in the absence of the consent of the sovereign to be sued, the engagement validly made by a sovereign State is not without legal force, as readily
appears if the jurisdiction to entertain a controversey with respect to the
performance of the engagement is conferred upon an international tribunal.
Hall, International Law, 8th ed.. Section 107; Oppenheim, loc. cit.; Hyde,
International Law, vol. 2, Section 489.
(D) In its report of May 27 1933, it was stated by the Senate Committee
on Banking and Currency:
"By the Emergency Banking Act and the existing Executive Orders.
gold is not now paid, or obtainable for payment, on obligations public or
private." Sen. Rep. No, 99, 73d Cong., 1st Sess.
The following is the separate opinion written by Justice
Stone in the Liberty Bond case:
SUPREME COURT OF THE UNITED STATES
No. 532—October Term, 1934
John M.Perry vs. the United States on Certificate from the Court of Claims
(February 18, 1935).
Mr. Justice Stone
I agree that the answer to the first question is "No," but I think our
opinion should be confined to answering that question and that it should
essay an answer to no other.
I do not doubt that the gold clause in the Government bonds, like that
in the private contracts just considered, calls for the payment of value in
money, measured by a stated number of gold dollars of the standard defined
in the clause, Feist vs. Societe Intercommunale Beige d'Electricite 119341,
A. C. 161, 170-173; Serbian and Brazilian bond cases, P. C. I. J., Series A,
Nos. 20-21, Pp. 32-34, 109-119.
-In the absence of any further exertion of governmental power, that obligation plainly could not be satisfied by payment of the same number of
dollars, either specie or paper, measured by a gold dollar of lesser weight.
I do not understand the Government to contend that it is any the less
bound by the obligation than a private individual would be, or that it is
free to disregard it except in the exercise of the constitutional power "to
coin money" and "regulate the value thereof."
In any case, there is before us no question of default apart from the regulation by Congress of the use of gold as currency.
While the Government's refusal to make the stipulated payment is a
measure taken in the exercise of that power,this does not disguise the fact
that its action is to that extent a repudiation of its undertaking.
As much as I deplore this refusal to fulfill the solemn promise of bonds
of the United States, I cannot escape the conclusion, announced for the
Court, that in the situation now presented, the Government, through the
exercise of its sovereign power to regulate the value of money, has rendered
itselfimmune from liability for its action. To that extent it has relieved itself
of the obligation of its domestic bonds, precisely as it has relieved the
obligors of private bonds in No.270, Norman vs. Baltimore & Ohio RR.Co.,
decided this day.
In this posture of the case it is unnecessary, and I think undesirable.
for the Court to undertake to say that the obligation of the gold clause in
Government bonds is greater than in the bonds of private individuals, or
that in some situation not described, and in some manner, and in some
measure undefined,it has imposed restrictions upon thefuture exercise of the
power to regulate the currency.
I am not persuaded that we should needlessly intimate any opinion which
implies that the obligation may so operate, for example, as to interpose a
serious obstacle to the adoption of measures for stabilization of the dollar,
should Congress think it wise to accomplish that purpose by resumption of
gold payments, in dollars of the present or any other gold content less than
that specified in the gold clause, and by the re-establishment of a free market
for gold and its free exportation.
There is no occasion now to resolve doubts, which I entertain, with
respect to these questions. At present they are academic. Concededly,
they may be transferred wholly to the realm of speculation by the exercise
of the undoubted power of the Government to withdraw the privilege of
suit upon its gold-clause obligations.
We have just held that the Court of Claims was without power to entertain the suit in No. 531, Nortz vs. United States, because,regardless of the
nature of the obligation of the gold certificates, there was no damage. Here
it is declared that there is no damage because Congress, by the exercise of
its power to regulate the currency, has made it impossible for the plaintiff
to enjoy the benefits of gold payments promised by the Government.
Dissents as to Parts of Decision
It would seem that this would suffice to dispose of the present case.
without attempting to pro-judge the rights of other bondholders, and of the
Government under other conditions which may never occur. It will not
benefit this plaintiff, to whom we deny any remedy, to be assured that he
has an inviolable right to performance of the gold clause.
Moreover, if the gold clause be viewed as a gold value contract, as it is
in Norman vs. Baltimore & Ohio RR.Co.,supra, it is to be noted that the
Government has not prohibited the free use by the bondholder of the
paper money equivalent of the gold clause obligation; it Is the prohibition,
by the joint resolution of Congress, of payment of the increased number of
depreciated dollars required to make up the full equivalent, which alone
bars recovery.
Feb. 23 1935
In that case it would seem to be implicit in our decision that the prohibition, at least in the present situation, is itself a constitutional exercise
of the power to regulate the value of money.
I therefore do not join in so much of the opinion as may be taken to suggest
that the exercise of the sovereign power to borrow money on credit, which
does not override the sovereign immunity from suit, may nevertheless preelude or impede the exercise of another sovereign power, to regulate the
value of money; or to suggest that although there is and can be no present
cause of action upon the repudiated gold clause, its obligation is nevertheless, in some manner and to some extent, not stated, superior to the power
to regulate currency which we now hold to be superior to the obligation of
the bonds.
United States Supreme Court Decisions on Constitutionality of Government Obligations—Conclusions
in Suit Brought in Court of Claims Involving Gold
Certificates of United States Treasury
Besides the general reference in a separate item in this
issue of our paper to the findings of the United States
Supreme Court on Feb. 18 in the cases involving the validity
of the gold clauses in Government obligations and private
contracts we are making room for the text of the several
decisions which the Court handed down.
As to the decision bearing on the gold certificates of the
United States Treasury, Chief Justice Hughes thus summarized the Supreme Court's holdings:
In No. 531, Nortz vs. United States, the plaintiff brought suit in the
Court of Claims as holder of gold certificates of the United States Treasury
at the face amount of $106,300,for which he claimed to be entitled to be paid
$170,634.07, or $64,334.07 on the basis of alleged gold value.
The Court of Claims has certified to this Court three questions. We
hold that the plaintiff has shown no actual damage and hence that the
Court of Claims could not entertain the suit. fhat view requires an answer
to the first question, as to the right of recovery, in the negative. We find
it unnecessary to answer the other questions.
The text of the decision in this case follows:
SUPREME COURT OF THE UNITED STATES
No. 531—October Term, 1934
F. Eugene Nortz vs. The United States—on Certificate from the Court
of Claims (February 18, 1935).
Mr. Chief Justice Hughes delivered the opinion of the Court.
The facts certified by the Court of Claims may be thus summarized.
Plaintiff brought suit as owner of gold certificates of the Treasury of the
United States of the nominal amount of $106,300. He alleged that defendant, by these gold certificates and under the applicable Acts of Congress
had certified that there had been deposited in the Treasury of the United
States $106,300 in gold coin which would be paid to the claimant as holder
upon demand; that at the time of the issue of these certificates, and to and
including Jan. 17 1934, a dollar in gold consisted of 25.8 grains of gold,
0.9 fine; that claimant was entitled to receive from defendant one ounce of
gold for each $20.67 of the gold certificates; that on Jan. 17 1934, he duly
presented the certificates and demanded their redemption by the payment
of gold coin to the extent above mentioned; that on that date, and for
some time prior and subseqeunt thereto, an ounce of gold was of the value
of at least $33.43, and that claimant was accordingly entitled to receive
in redemption 5104.22 ounces of gold of the value of $170,634.07; that the
demand was refused; that in view of the penalties imposed under the order
of the Secretary of the Treasury, approved by the President on Jan. 15
1934, supplementing the order of Dec. 28 1933. and the laws and regulations under which those orders were issued, which the claimant alleged were
unconstitutional, as constituting a deprivation of property without due
process of law, claimant delivered the gold certificates to defendant under
protest and received in exchange currency of the United States in the sum
of $106,300, which was not redeemable in gold; and that in consequence,
claimant was damaged in the sum of $64,334.07, for which, with interest,
judgment was demanded.
Defendant demurred to the petition upon the ground that it did not
state a cause of action against the United States,
Questions Certified by Court of Claims
The questions certified by the Court are as follows;
"1. Is an owner of gold certificates of the United States, series of 1928,
not holding a Federal license to acquire or hold gold coins or gold certificates, who. on Jan. 17 1934, had surrendered his certificates to the Secretary of the Treasury of the United States under protest and had teceived
therefor legal tender currency of equivalent face amount, entitled to receive
from the United States a further sum inasmuch as the weight of a gold dollar was 25.8 grains, .9 fine, and the market price thereof on Jan. 17 1934
was in excess of the currency so received?
"2. Is a gold certificate, series of 1928, under the facts stated in Question 1, an express contract of the United States in its corporate or proprietary capacity which will enable its owner and holder to bring suit
thereon in the Court of Claims?
"3. Do the provisions of the Emergency Banking Act of March 9 1933,
and the order of the Secretary of the Treasury dated Dec. 28 1933, requiring the plaintiff as owner of gold certificates as stated in Question I. to
deliver the same to the Treasury of the United States in exchange for currency of an equivalent amount, not redeemable in gold, amount to a taking
of property within the meaning of the Fifth Amendment to the Constitution of the United States?"
Defendant's Demurrer Did not Admit Allegations
Defendant's demurrer, which admitted the facts well pleaded in the
petition, did not admit allegations which amounted to conclusions of law
in relation to the nature of the gold certificates or the legal effect of the
legislation under which they were issued, held, or to be redeemed. Dillon
vs. Barnard, 21 Wall. 430,437; United States vs. Ames, 99 U. S. 35, 45;
Interstate Land Co. vs. Maxwell Land Co., 139 U. S. 569, 577, 578;
Equitable Life Assurance Society vs. Brown, 213 U. S. 25. 43.
Gold certificates were authorized by Section 5 of the Act of March 3
1863 (12 Stat. 709, 711). which provided that the Secretary of the Treasury
might receive "deposits of gold coin and bullion" and issue certificates
therefor "in denominations of not less than $20 each, corresponding with the
denominations of the United States notes." The coin and bullion so deposited were to be retained in the Treasury for the payment of the certificates on demand. It was further provided that "certificates representing coin in the Treasury may be issued in payment of interest on the public
debt, which certificates, together with those issued for coin and bullion
deposited, shall not at any time exceed 20 percentum beyond the amount
of coin and bullion in the freasury." See R. S., Sec. 254; 31 U. S. C. 428.
Section 12 of the Act of July 12 1882 (22 Stat. 165) contained a further
provision authorizing the Secretary of the Treasury "to receive deposits
Volume 140
Financial Chronicle
of gold coin" and to issue certificates therefor, also in denominations of
dollars as stated.
Act of March 14 1900
The Act of March 14 1900 (31 Stat. 45) prescribed that the dollar "consisting of 25.8 grains of gold .9 fine . . . shall be the standard unit of
value, and all forms of money issued or coined by the United States shall be
maintained at a parity of value with this standard, and it shall be the duty
of the Secretary of the Treasury to maintain such parity." Section 6 of that
Act also authorized the Secretary of the Treasury to receive deposits of
gold coin and to Issue gold certificates therefor, and provided that the
coin so deposited should be held by the Treasury for the payment of such
certificates on demand and should be "used for no other purpose." And
the latter clause appears in the amending Acts of March 4 1907 (34 Stat.
1289) and of March 2 1911 (36 Stat. 965). See 31 U. S. C. 429.
The Act of Dec. 24 1919 (41 Stat. 370) made gold certificates, payable
to bearer on demand,"legal tender in payment of all debts and dues, public
and private." And Section 2 of the Joint Resolution of June 5 1933
(48 Stat. 113) amending the Act of May 12 1933 (48 Stat. 52) provided
that "all coins and currencies of the United States . . . heretofore or
hereafter coined or issued, shall be legal tender for all debts, public and
private, public charges, taxes, duties and dues."
•
Requirements in Case of Gold Certificates
Gold certificates under this legislation were required to be issued in
denominations of dollars and called for the payment of dollars (a). These
gold certificates were currency. They were not less so because the specified
number of dollars were payable in gold coin, of the coinage of the United
States. Being currency, and constituting legal tender, it is entirely inadmissible to regard the gold certificates as warehouse receipts (b). They
were not contracts for a certain quantity of gold as a commodity. They
called for dollars, not bullion.
We may lay on one side the question whether the issue of currency of
this description created an express contract upon which the United States
has consented to be sued under the provision of Section 145 of the Judicial
Code, 28 U. S. C. 250. Compare Horowitz vs. United States, 267 U. S.
458, 461(c). We may assume that plaintiff's petition permits an alternative
view.
Plaintiff urges as the gist of his contention that, by the Acts of Congress,
and the orders thereunder, requiring the delivery of his gold certificates to
the Treasury in exchange for currency not redeemable in gold, he has been
deprived of his property, and that he is entitled to maintain this action to
recover the just compensation secured to him by the Fifth Amendment.
But, even in that view. the Court of Claims has no authority to entertain
the action, if the claim is at best one for nominal damages. The Court of
Claims "was not instituted to try such a case." Grant vs. United States,
7 Wall. 331, 338; Marion & Rye Railway Co. vs. United States, 270 U. S.
280, 282. Accordingly, we inquire whether the case which the plaintiff
presents is one which would justify the recovery of actual damages. 'Gold Surrender Under EmergencyjAct
By Section 3 of the Emergency Banking Act of March 9 1933(48 Stat. 2).
amending Section 11 of the Federal Reserve Act (39 Stat. 752), the Secretary of the Treasury was authorized, whenever in his judgment it was
necessary "to protect the currency system of the United States," to require all persons "to pay and deliver to the Treasurer of the United States
any or all gold coin, gold bullion and gold certificates" owned by them.
Upon such delivery, the Secretary was to pay therefor "an equivalent
amount of any other form of coin or currency coined or issued under the
laws of the United States." Under that statute, orders requiring such delivery, except as otherwise expressly provided, were issued by the Secretary on Dec. 28 1933 and Jan. 15 1934. By the latter, gold coin, gold bullion and gold certificates were required to be delivered to the Treasurer
of the United States on or before Jan. 17 1934. It was on that date that
plaintiff made his demand for gold coin in redemption of his certificates
and delivered the certificates under protest. That compulsory delivery,
he insists, constituted the "taking of the contract" for which he demands
compensation.
Plaintiff explicitly states his concurrence in the Government's contention that the Congress has complete authority to regulate the currency
system of the country. He does not deny that, in exercising that authority, the Congress had power "to appropriate unto the Government outstanding gold bullion, gold coin and gold certificates." Nor does he deny
that the Congress had authority "to compel all residents of this country
to deliver unto the Government all gold bullion, gold coins and gold certificates in their possession." These powers could not be successfully
challenged. Knox vs. Lee. 12 Wall. 457; Juilliard vs. Greenman. 110
U. S. 421; Ling Su Fan vs. United States, 218 U. S. 302: Norman vs.
Baltimore & Ohio RR. Co., decided this day. The question plaintiff
presents is thus simply one of "just compensation."
The asserted basis of plaintiff's claim for actual damages is that, by the
terms of the gold certificates, he was entitled, on Jan. 17 1934. to receive
gold coin. It is plain that he cannot claim any better position than that
in which he would have been placed had the gold coin then been paid to
him. But in that event, he would have been required, under the applicable
legislation and orders, forthwith to deliver the gold coin to the Treasury.
Plaintiff does not bring himself within any of the stated exceptions. He did
not allege in his petition that he held a Federal license to hold gold coin.
and the first question submitted to us by the Court of Claims negatives
the assumption of such a license. Had plaintiff received gold coin for his
certificates, he would not have been able,in view of the legislative inhibition,
to export it or deal in it. Moreover, it is sufficient in the instant case
to point out that on Jan. 17 1934 the dollar had not been devalued, or, as
plaintiff puts it, "at the time of the presentation or the certificates by
petitioner, the gold content of the United States dollar had not been deflated," and the provision of the Act of March 14 1900, supra, fixing that
content at 25.8 grains, .9 fine, as the standard unit of money with which
"all forms of money issued or coined by the United States" were to be maintained at a parity, was "still in effect." The currency paid to the plaintiff
for his gold certificates was then on a parity with that standard of value.
It cannot be said that, in receiving the currency on that basis, he sustained any actual loss.
No Free Market for Gold
To support his claim, plaintiff says that on Jan. 17 1934 "an ounce of
gold was of the value at least of $33.43." His petition so alleged and he
contends that the allegation was admitted by the demurrer. But the
assertion of that value of gold in relation to gold coin in this country, in
view of the applicable legislative requirements, necessarily involved a conclusion of law. Under those requirements there was not on Jan. 17 1934 a
free market for gold in the United States or any market available to the
plaintifffor the gold coin to which he claims to have been entitled. Plaintiff
insists that gold had an intrinsic value and was bought and sold in the world
markets. But the plaintiff had no right to resort to such markets. By
reason of the quality of gold coin, "as a legal tender and as a medium of
exchange," limitations attached to its ownership, and the Congress could
1209
prohibit its exportation and regulate its use. Ling Su Fan vs. United States.
supra.
The first question submitted by the Court of Claims is answered In the
negative. It is unnecessary to answer the second question. And in the
circumstances shown, the third question is academic and also need not be
answered:
Question No. 1 is answered "No."
(a) The form of the gold certificates here in question is stated to be as
follows;
"This certifies that there have been deposited in the Treasury of the
United States of America one thousand dollars in gold coin payable to
the bearer on demand.
"This certificate is a legal tender in the amount thereof in the payment
of all debts and dues public and private."
On the reverse side appear the following words:
"The United States of America one thousand dollars."
(b) The description of gold certificates in the reports of the Secretary
of the Treasury, to which allusion was made in the argument at bar, could
in no way alter their true legal characteristics. Reports for 1926. p. 80;
1930. pp. 29. 604, 607: 1933, p. 375.
(c) The point was not determined in United States vs. State Bank,
96 United States 30, upon which plaintiff relies. The Court there decided
that "where the money or property of an innocent person has gone into the
coffers of the nation by means of a fraud to which its agent was a party,
such money or property cannot be held by the United States against the
claim of the wronged and injured party." The Court said that the basis
of the liability was "an implied contract" by which the United States might
well become bound in virtue of its corporate character. Its sovereignty
was "in no wise involved."
United States Supreme Court's Findings as to Gold
Clauses in Private Contracts—Conclusions in Cases
Affecting Bonds of Baltimore & Ohio RR., St.
Louis Iron Mountain & Southern Ry. and Missouri
Pacific System
The United States Supreme Court's conclusions in the
cases affecting the gold clause provisions in private contracts as handed down by Chief Justice Hughes on Feb. 18
are given below. A summary by Justice Hughes of the
findings as to these cases follows:
No. 270.—Norman C. Norman v. Baltimore & Ohio RR. Co., on writ of
certiorari to the Supreme Court of the State of New York.
Nos, 471, 472.—United States v. Bankers Trust Co., on writ of certiorari
to the Circuit Court of Appeals for Eighth Circuit. . . .
No. 270 and Nos. 471 and 472 relate to the so-called gold clauses, in
private obligations, that is, in the bonds, respectively, of the Baltimore &
Ohio RR. Co., and the St. Louis Iron Mountain & Southern By. Co., of
the Missouri Pacific System.
These cases present the question of the validity of the Joint Resolution
of Congress of June 5 1933, as applied to these gold clauses. The Court
of Appeals of the State of New York in No. 270, the Norman ease, and
the United States District Court for the Eastern District of Missouri, in
Nos. 471 and 472, the Missouri Pacific case, decided that Congress had
power to adopt the Joint Resolution with respect to these obligations of
the railroad companies, and hence that the gold clauses could not be
enforced and the bonds were payable in legal tender currency.
We affirm the judgments in those cases.
The text of the decision involving the gold clauses in
private contracts, in the above cases, follows:
SUPREME COURT OF THE UNITED STATES
Nos. 270, 471 and 472—October Term, 1934
270—Norman C. Norman, petitioner, v. the Baltimore & Ohio RR. Co.,
on writ of certiorari to the Supreme Court of the State of New York;
471—The United States of America, Reconstruction Finance Corporation
et al., petitioners, v. Bankers Trust Co. and William H. Bixby, trustees;
472—The United States of America, Reoonstruction Finance Corporation
et al., petitioners, v. Bankers Trust Co. and William H. Bixby, trustees, on
writs of certiorari to the United States Circuit Court of Appeals for the
Eighth Circuit. (February 18, 1935.)
Mr. Chief Justice Hughes delivered the opinion of the court.
These cases present the question of the validity of the Joint Resolution
of the Congress, of June 5 1933, with respect to the "gold clauses" of
private contracts for the payment of money. 48 Stat. 112.
This resolution, the text of which is set forth in the margin,(A) declares
that "every provision contained in or made with respect to any obligation
which purports to give the obligee a right to require payment in gold or a
particular kind of coin or currency, or in an amount in money of the
United States measured thereby" is "against public policy." Such provisions in obligations thereafter incurred are prohibited. The resolution
provides that:
"Every obligation, heretofore or hereafter incurred, whether or not any such
provision Is contained therein or made with respect thereto, shall be discharged
upon payment, dollar for dollar, in any coin or currency which at the time of Payment is legal tender for public and private debts."
Bonds of Baltimore & Ohio RR.
In No. 270, the suit was brought upon a coupon of a bond made by the
Baltimore & Ohio RR. Co. under date of Feb. 1 1930, for the payment of
2% per
/
$1,000 on Feb. 1 1960, and interest from date at the rate of 41
annum, payable semi-annually. The bond provided that the payment of
principal and interest "will be made . . . in gold coin of the United
States of America of or equal to the standard of weight and fineness existing on Feb. 1 1930." The coupon in suit, for $22.50, was payable on
Feb. 1 1934. The complaint alleged that on Feb. 1 1930 the standard
weight and fineness of a gold dollar of the United States as a unit of value
"was fixed to consist of 25.8 grains of gold .9 fine," pursuant to
the Act of Congress of March 14 1900 (31 Stat. 45); and that by the
Act of Congress known as the "Gold Reserve Act of 1934" (Jan. 30 1934,
48 Stat. 337), and by the order of the President under that Act, the
standard unit of value of a gold dollar of the United States "was fixed
to consist of 15 5/21 grains of gold, .9 fine," from and after Jan. 31
1934.
On presentation of the coupon, defendant refused to pay the amount
in gold, or the equivalent of gold in legal tender of the United States,
which was alleged to be, on Feb. 1 1934, according to the standard of
weight and fineness existing on Feb. 1 1930, the sum of $38.10, and
plaintiff demanded judgment for that amount.
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Financial Chronicle
Defendant answered that by Acts of Congress, and, in particular, by the
Joint Resolution of June 5 1933, defendant had been prevented from making
payment in gold coin "or otherwise than dollar for dollar, in coin or
currency of the United States (other than gold coin and gold certificates)
which at the time of payment constituted legal tender."
Plaintiff, challenging the validity of the Joint Resolution under the
Fifth and Tenth Amendments and Article I, Section 1, of the Constitution
of the United States, moved to strike the defense. The motion was denied.
Judgment was entered for plaintiff for $22.50, the face of the coupon,
and was affirmed upon appeal. The Court of Appeals of the State considered the Federal question and decided that the Joint Resolution was
valid. 265 N. Y. 37. This court granted a writ of certiorari. Oct. 8 1934.
Bonds of St. Louis ken Mountain dc Southern RR.
In Noe. 471 and 472, the question arose with respect to an issue of
bends dated May 1 1903, of the St. Louis Iron Mountain & Southern lilt. Co.,
payable May 1 1933. The bonds severally provided for the payment of
"One Thousand Dollar Gold Coin of the United States of the present
standard of weight and fineness," with interest from date at the rate of 4%
per annum, payable "in like gold coin semi-annually."
In 1917 Missouri Pacific RR. Co. acquired the property of the obligor
subject to the mortgage securing the bonds. In March 1933 the United
States District Court, Eastern District of Missouri, approved a petition
filed by the latter company under Section 77 of the Bankruptcy Act.
In the following December the trustees under the mortgage asked leave
to intervene, seeking to have the income of the property applied against
the mortgage debt and alleging that the debt was payable "in gold coin
of the United States of the standard of weight and fineness prevailing
on May 1 1903."
Later, the Reconstruction Finance Corporation and the United States,
as creditors of the debtor, filed a joint petition for leave to intervene, in
which they denied the validity of the gold clause contained in the mo•tgage
and bonds. Leave to intervene specially was granted to each applicant nn
April 5, 1934, and answers were filed.
Joint Resolution of Congress and Reserve Act Amendment
On the hearing, the District Court decided that the Joint Resolution of
June 5 1933 was constitutional and that the trustees were entitled, in payment of the principal of each bond, to $1,000 in money constituting legal
tender. Decree was entered accordingly and the trustees (respondents
here) took two appeals to the United States Circuit Court of Appeals.
(B) While these appeals were pending, this court granted writs of certiorari, Nov. 5 1934.
The Joint Resolution of June 5 1933 was one of a series of measures
relating to the currency. These measures disclose not only the purposes
of the Congress but also the situations which existed at the time the
Joint Resolution was adopted and when the payments under the "gold
clauses" were sought.
On March 6 1933 the President, stating that there had been "heavy and
unwarranted withdrawals of gold and currency from our banking institutions for the purpose of hoarding," and "extensive speculative activity
abroad in foreign exchange," which had resulted "in severe drabs en
the nation's stocks of gold," and reciting the authority conferred by
Section 5 (b) of the Act of Oct. 6 1917 (40 Stat. 411), de2lared "a bank
holiday" until March 9 1933. On the same date the Secretary of the
Treasury, with the President's approval, issued instructions to the Treasurer of the United States to make payments in gold in any form only
under license issued by the Secretary.
On March 9 1933 the Congress passed the Emergency Banking Act, 48
Stat. 1. All orders issued by the President or the Secretary of the Treasury since March 4 1933, under the authority conferred by Section 5 (b)
of the Act of Oct. 6 1917, were confirmed.
That section was amended so as to provide that during any period of
national emergency declared by the President, he might investigate,
regulate or prohibit," by means of licensee or otherwise, "any transactions
in foreign exchange, transfers of credit between or payments by banking
institutions as defined by the President, and export, hoarding, melting, or
ear-marking of gold or silver coin or bullion or currency, by any person
within the United States or any place subject to the jurisdiction thereof."
The Act also amended Section 11 of the Federal Reserve Act (39 Stat.
752) so as to authorize the Secretary of the Treasury to require all persons
ti deliver to the Treasurer of the United States "any or all gold coin, gold
bullion, and gold certificates" owned by them, and that the Secretary
should pay therefor "an equivalent amount of any other form of coin or
currency coined or issued under the laws of the United States."
President's Executive Orders
By Executive Order of March 10 1933, the President authorized banks
to be reopened, as stated, but prohibited the removal from the United
States, or any place subject to its jurisdiction, of "any gold coin, gold
bullion, or gold certificates, except in accordance with regulations prescribed by or under license issued by the Secretary of the Treasury."
By further Executive Order of April 5 1933, forbidding hoarding, all
persons were required to deliver on or before May 1 1933 to stated banks
"all gold coin, gold bullion and gold certificates," with certain exceptions,
the holder to receive "an equivalent amount" of any other form of c.tin or
currency coined or issued under the laws of the United States. Another
order of April 20 1933 contained further requirements with respect to the
acquisition and export of gold and to transactions in foreign exchange.
By Section 43 of the Agricultural Adjustment Act of May 12 1933 (48
Stat. 51), it was provided that the President should have authority, upon
the making of prescribed findings and in the circumstances stated, "to fix
the weight of the gold dollar in grains .9 fine and also to fix the
weight of the silver dollar in grains .9 fine at a definite fixed ratio
in relation to the gold dollar at such amounts as he finds necessary from
his investigation to stabilize domestic prices or to protect the foreign commerce against the adverse effect of depreciated foreign currencies."
And it was further provided that the "gold dollar, the weight of which
Is so fixed, shall be the standard unit of value," and that "all forms of
money' shall be maintained at a parity with this standard," but that "in
no event shall the weight of the gold dollar be fixed so as to reduce its
present weight by more than 50%."
Then followed the joint resolution of June 5 1933. There were further
Executive Orders of Aug. 28 and 29 1933, Oct. 25 1933, and Jan. 11 and
15 1934, relating to the hoarding and export of gold coin, gold bullion
and gold certificates, to the sale and export of gold recovered from natural
deposits, and to transactions in foreign exchange, and orders of the
Secretary of the Treasury, approved by the President, on Dec. 28 1933,
and Jan. 15 1934, for the delivery of gold coin, gold bullion and gold
certificates to the United States Treasury.
Feb. 23 1935
Gold ltseerve Act
On Jan. 30 1934 the Congress passed the "Gold Reserve Act of 1934"
(48 Stat. 337), which, by Section 13, ratified and confirmed all the
actions, regulations and orders taken or made by the President and the
Secretary of the Treasury under the Act of March 9 1933, or under Section 43
of the Act of May 12 1933, and, by Section 12, with respect to the
authority of the l'resident, to fix the weight of the gold dollar, provided
that it should not be fixed "in any event at more than 60% of its present
weight." On Jan. 31 1934 the President issued his proclamation declaring
that he fixed "the weight of the gold dollar to be 15 5/21 grains .9 fine,"
from and after that date.
Question Before Court One of Power
We have not attempted to summarize all the provisions of these measures.
We are not concerned with their wisdom. The question betore the court
is one of power, not of policy. And that question touches the validity of
these measures at but a single point, that is, in relation to the Joint
Resolution denying effect to "gold clauses" in existing contracts. The
resolution must, however, be considered in its legislative setting and in
the light of other measures in pani materia.
First, the interpretation of the gold clauses in suit.—In the case of the
Baltimore & Ohio RR. Co., the obligor considers the obligation to be one
"for the payment of money and not for the delivery of a specified number
of grains or ounces of gold"; that it is an obligation payable in money
of the United States and not less so because payment is to be made "in
a particular kind of money"; that it is not a "commodity contract" which
could be discharged by "tender of bullion."
At the same time, the obligor contends that, while the Joint Resolution
is constitutional in either event, the clause is a "gold coin" and not a
"gold value" clause; that is, it does not imply "a payment in the
'equivalent' of gold in case performance by payment in gold coin is
impossible."
The parties, runs the argument, intended that the instrument should be
negotiable and hence it should not be regarded as one "for the payment of
on indeterminate sum ascertainable only at date of payment." And in
the reference to the standard of weight and fineness, the words "equal to"
are said to be synonymous with "of."
In the case of the bonds of the St. Louis Iron Mountain & Southern IV.
Co., the Government urges that by providing for payment in gold coin the
parties showed an intention "to protect against depreciation of one kind
of money as compared with another, as for example, paper money compared
with gold, or silver compared with gold"; and, by providing that the
gold coin should be of a particular standard, they attempted "to assure
against payment in coin of lesser gold content."
The clause, it is said, "does not reveal an intention to protect against a
situation where gold coin no longer circulates and all forms of money are
maintained in the United States at a parity with each other" ; apparently,
"the parties did not anticipate the existence of conditions making it
impossible and illegal to procure gold coin with which to meet the
obligations."
In view of that impossibility, asserted to exist both in fact and in law,
the Government contends that "the present debtor would be excused, in
an action on the bonds, from the obligation to pay in gold coin," but, "as
only one term of the promise in the gold clause is impossible to perform
and illegal," the remainder of the obligation should stand and thus the
obligation "becomes one to pay the stated number of dollars."
The bondholder in the first case, and the trustees of the mortgage in
the second case, oppose such an interpretation of the gold clauses as
inadequate and unreasonable.
Against the contention that the agreement was to pay in gold coin if
that were possible, and not otherwise, they insist that it is beyond dispute
that the gold clauses were used for the very purpose of guarding against a
depreciated currency.
It is pointed out that the words "gold coin of the present standard"
show that the parties contemplated that when the time came to pay there
might be gold dollars of a new standard, and, if so, that "gold coin of
the present standard" would pass from circulation; and it is taken to be
admitted, by the Government's argument, that if gold coins of a lesser
standard were tendered, they would not have to be accepted unless they
were tendered in sufficient amount to make up the "gold value" for
which, it is said, the contract called.
It is insisted that the words of the gold clause clearly allow an intent
"to establish a measure or standard of value of the money to be paid if the
particular kind of money specified in the clause should not be in circulation at the time of payment." To deny the right of the bondholders to
the equivalent of the gold coin promised is said to be not a construction of
the gold clause but its nullification. (C.)
The decisions of this court relating to clauses for payment in gold did
not deal with situations corresponding to those now presented. Bronson v.
Bodes. 7 Wall. 229; Butler v. Horwitz, 7 Wall. 258; Dewing v. Sears,
11 Wall. 379; Trebilcock v. Wilson, 12 Wall. 687; Thompson v. Butler,
95 U. S. 694; Gregory v. Morris, 96 U. S. 619. See, also, the Vaughan
and Telegraph, 14 Wall. 258; the Emily Souder, 17 Wall. 666.
The rulings, upholding gold clauses and determining their effect, were
made when gold was still in circulation and no act of the Congress prohibiting the enforcement of such clauses had been passed.
In Bronson v. Bodes, supra, p. 251, the court held that the Legal Tender
Acts of 1862 and 1863, apart from any question of their constitutionality,
had not repealed or modified the laws for the coinage of gold and silver
or the statutory provisions which made those coins a legal tender in all
payments.
It followed, said the court, that "there were two descriptions of money
in use at the time the tender under consideration was made, both authorized
by law, and both made legal tender in payments. The statute denomination of both descriptions was dollars; but they were essentially unlike
in nature."
Accordingly, the contract of the parties for payment in one sort of
dollars, which was still in lawful circulation, was sustained.
The case of Trebilcock v. Wilson, supra, was decided shortly after the
Legal Tender Acts had been held valid. The court again concluded (pp. 695.
696) that those Acts applied only to debts which were payable in money
generally, and that there were "according to that decision, two kinds of
money., essentially different in their nature, but equally lawful."
In that view, said the court, "contracts payable in either, or for the
possession of either, must be equally lawful, and, if lawful, must be equally
capable of enforcement."
With respect to the interpretation of the clauses then under consideration.
the court observed, in Bronson v. Bodes, supra, p. 250, that a contract
to pay a certain number of dollars in gold or silver coins was, in legal
import, nothing else than an agreement to deliver a certain weight of
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Financial Chronicle
standard gold, to be ascertained by a count of coins, each of which Is
certified to contain a definite proportion of that weight.
The court thought that it was not distinguishable, in principle, "from
a contract to deliver an equal weight of bullion of equal fineness."
That observation was not necessary to the final conclusion. The decision
went upon the assumption "that engagements to pay coined dollars may
be regarded as ordinary contracts to pay money rather than as contracts
to deliver certain weights of standard gold." Id. p. 251.
In Trebilcock v. Wilson, supra, where a note was payable "in specie,"
the court said (pp. 694, 695) that the provision did not "assimilate the
note to an instrument in which the amount stated is payable in chattels;
as, for example, to a contract to pay a specified sum in lumber, or in
fruit, or grain"; that the terms "in specie" were "merely descriptive of
the kind of dollars in which the note is payable, there being different kinds
In circulation, recognized by law"; that they meant "that the designated
number of dollars is the note shall be paid in so many gold or silver
dollars of the coinage of the United States."
And in Thompson v. Butler, supra, pp. 696, 697, the court adverted to
the statement made in Bronson v. Rodes, and concluded that "notwithstanding this, it is a contract to pay money, and none the less so because it
designates for payment one of the two kinds of money which the law has
made a legal tender in discharge of money obligations." Compare Gregory
v. Morris, supra.
Gold Clauses Not Contracts for Payment in Gold but Payment of Money
We are of the opinion that the gold clauses now before us were not
contracts for payment in gold coin as a commodity, or in bullion, but
were contracts for the payment of money. The bonds were severally for the
payment of $1,000.
We also think that, fairly construed, these clauses were intended to
afford a definite standard or measure of value, and thus to protect against
a depreciation of the currency and against the discharge of the obligation
by a payment of lesser value than that prescribed.
When these contracts were made they were not repugnant to any action
of the Congress.
In order to determine whether effect may now be given to the intention
of the parties in the face of the action taken by the Congress, or the
contracts may be satisfied by the payment dollar for dollar, in legal tender,
as the Congress has now prescribed, it is necessary to consider (1) the
power of the Congress to establish a monetary system and the necessary
implications of that power; (2) the power of the Congress to invalidate
the provisions of existing contracts which interfere with the exercise of
Its constitutional authority; and (3) whether the clauses in question do
constitute such an interference as to bring them within the range of
that power.
Second, the power of the Congress to establish a monetary system..—It is
unnecessary to review the historic controversy as to the extent of this
power, or again to go over the ground traversed by the court in reaching
the conclusion that the Congress may make Treasury notes legal tender in
payment of debts previously contracted, as well as of those subsequently
contracted, whether that authority he exercised in course of war or in
time of peace. Knox v. Lee, 12 Wall. 457; Juilliard v. Greenman, 110
U. S. 421. We need only consider certain postulates upon which that
conclusion rested.
Power Granted to Congress Under Constitution
The Constitution grants to the Congress power "to coin money, regulate
the value thereof, and of foreign coin." Art. I, Sec. 8, par. 5. But the
court in the legal tender cases did not derive from that express grant
alone the full authority of the Congress in relation to the currency.
The court found the source of that authority in all the related powers
conferred upon the Congress and appropriate to achieve "the great objects
for which the Government was framed,"—"a National Government with
sovereign powers." McCulloch v. Maryland, 4 Wheat. 316, 404-407;
Knox v. Lee, supra, pp. 532, 536; JutMord v. Greenman, supra, p. 438.
The broad and comprehensive national authority over the subjects of
revenue, finance and currency is derived from the aggregate of the powers
granted to the Congress, embracing the powers to lay and collect taxes, to
borrow money, to regulate commerce with foreign nations and among the
several States, to coin money, regulate the value thereof, and of foreign
coin, and fix the standards of weights and measures, and the added express
power "to make all laws which shall be necessary and proper for carrying
Into execution" the other enumerated powers. Juilliard v. Greenman,
supra, pp. 439, 440.
The Constitution "was designed to provide the same currency, having a
uniform legal value in all the States." It was for that reason that the
power to regulate the value of money was conferred upon the Federal
Government, while the same power, as well as the power to emit bills of
credit, was withdrawn from the States.
The States cannot declare what shall be money, or regulate its value.
Whatever power there is over the currency is vested in the Congress. Knox
v. Lee, supra, p. 545.
Another postulate of the decision in that case is that the Congress has
power "to enact that the Government's promises to pay money shall be,
for the time being, equivalent in value to the representative of value
determined by the Coinage Acts, or to multiples thereof." Id., p. 553.
Or, as was stated in the Juilliard case, supra, p. 447, the Congress is
empowered "to issue the obligations of the United States in such form, and
to impress upon them such qualities as currency for the purchase of
merchandise and the payment of debts, as accord with the usage of sovereign
governments."
The authority to impose requirements of uniformity and parity is an
essential feature of this control of the currency. The Congress is authorized to provide "a sound and uniform currency for the country," and to
"secure the benefit of it to the people by appropriate legislation." Veazie
Bank v. Fenno, 8 Wall. 533, 549.
Moreover, by virtue of this national power, there attaches to the ownership of gold and silver those limitations which public policy may require
by reason of their quality as legal tender and as a medium of exchange.
Ling Su Fan V. United States, 218 U. S., 302, 310. Those limitations
arise from the fact that the law "gives to such coinage a value which does
not attach as a mere consequence of intrinsic value." Their quality as
legal tender is attributed by the law, aside from their bullion value.
Hence, the power to coin money includes the power to forbid mutilation,
melting and exportation of gold and silver coin—"to prevent its outflow
from the country of its origin." Id., p. 311.
Dealing with the specific question as to the effect of the Legal Tender
Acts upon contracts made before their passage, that is. those for the payment of money generally, the court, in the legal tender cases. recognized
the possible consequences of such enactments in frustrating the expected
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performance of contracts—in rendering them "fruitless or partially fruitless." The court pointed out that the exercise of the powers of Congress
may affect "apparent obligations" of contracts in many ways.
The Congress may pass Bankruptcy Acts. The Congress may declare
war, or, even in peace, pass Non-intercourse Acts, or direct an embargo,
which may operate seriously upon existing contracts. And the court
reasoned that if the Legal Tender Acts "were justly chargeable with impairing contract obligations, they would not, for that reason, be forbidden,
unless a different rule is to be applied to them from that which has
hitherto prevailed in the construction of other powers granted by the
fundamental law." The conclusion was that contracts must be understood
as having been made in reference to the possible exercise of the rightful
authority of the Government, and that no obligation of a contract "can
extend to the defeat" of that authority. Knox v. Lee, supra, pp. 549-551.
On similar grounds, the court dismissed the contention under the Fifth
Amendment forbidding the taking of private property for public use without just compensation or the deprivation of it without due process of
law. That provision, said the court, referred only to a direct appropriation.
A new tariff, an embargo or a war might bring upon individuals great
losses; might, indeed, render valuable property almost valueless—might
destroy the worth of contracts. "But whoever supposed," slaked the court,
"that, because of this, a tariff could not be changed or a Non-intercourse
Act, or embargo be enacted, or a war be declared."
Act Regulating Gold Weights
The court referred to the Act of June 28 1934, by which a new regulation of the weight and value of gold coin was adopted, and about 6% was
taken from the weight of each dollar. The effect of the measure was that
all creditors were subjected to a corresponding loss, as the debts then due
"became solvable with 6% lees gold than was required to pay them before."
But it had never been imagined that there was a taking of private property without compensation or without due process of law. The harshness
of such legislation, or the hardship it way cause, afforded no reason for
considering it to be unconstitutional. Id., pp. 551, 552.
The question of the validity of the Joint Resolution of June 5 1933 must
be determined in the light of these settled principles.
Third, the power of the Congress to invalidate the provisions of cristing
contracts which interfere with the exercise of its constitutional authority.—
The instant cases involve contracts between private parties, but the question
necessarily relates as well to the contracts or obligations; of States and
municipalities, or of their political subdivisions, that is, to such engagements 28 are within the reach of the applicable national power. The Government's own contracts—the obligations of the United States—are in a
distinct category and demand separate consideration. See Perry v. United
Statee, decided this day.
Acts Before Court in Legal Tender Cases
The contention is that the power of the Congress, broadly sustained by
the decisions we have cited in relation to private contracts for the payment
of money generally, does not extend to the striking down of express contracts for gold payments.
The Acts before the court in the legal tender cases, as we have seen, were
not deemed to go so far. Those Acts left in circulation two kinds of
money, both lawful and available, and contracts for payments in gold, one
of these kinds, were not disturbed.
The court did not decide that the Congress did not have the constitutional power to invalidate existing contracts of that sort, it they stood
in the way of the execution of the policy of the Congress in relation to
the currency.
Mr. Justice Bradley, in his concurring opinion, expressed the view that
the Congress had that power and had exercised it. Knox v. Lee, supra,
pp. 566, 567.
And, upon that ground, he dissented from the opinion of the court in
Trebilcock v. Wilson, supra, p. 699, as to the validity of contracts for
payment "in specie." (D.)
It is significant that Mr. Justice Bradley, referring to this difference
of opinion in the legal tender cases, remarked (in his concurring opinion)
that "of course" the difference arose "from the different construction
given to the Legal Tender Acts."
"I do not understand," he said, "the majority of the court to decide
that an Act so drawn as to embrace, in terms, contracts payable in specie,
would not be constitutional.
"Such a decision would completely nullify the power claimed for the
Government. For it would be very easy, by the use of one or two additional
words, to make all contracts payable In specie."
Here the Congress has enacted an express interdiction. The argument
against it does not rest upon the mere fact that the legislation may cause
hardship or loss.
Creditors who have not stipulated for gold payments may suffer equal
hardship or loss with creditors who have so stipulated.
The former, admittedly, have no constitutional grievance. And, while
the latter may not suffer more, the point is pressed that their express
stipulations for gold payments constitute property, and that creditors who
have not such stipulations are without that property right.
And the contestants urge that the Congress is seeking not to regulate
the currency but to regulate contracts and thus has stepped beyond the
power conferred.
This argument is in the teeth of another establhhed principle. Contracts, however express, cannot fetter the constitutional authority of the
Congress. Contracts may create rights of property, but when contracts
deal with a subject matter which lies within the control of the Congress,
they have a congenital infirmity.
Parties cannot remove their transactions from the reach of dominant
constitutional power by making contracts about them. See Hudson Water
Co. v. McCarter, 209 U. S., 319, 357.
This principle has familiar illustration in the exercise of the Dower to
regulate commerce. If shippers and carriers stipulate for specified rates,
although the rates may be lawful when the contracts are made, If Congress
through the Interstate Commerce Commission exercises its authority and
prescribes different rates, the latter control and override inconsistent stipulations in contracts previously made.
This is so, even if the contract be a charter granted by a State and
limiting rates, or a contract between municipalities and carriers. New
York v. United States, 257 U. S. 591, 600, 601; United States v. Village
of Hubbard, 266 U. S. 474, 477, note. See, also, Armour Packing Co. v.
United States, 209 U. S. 56, 80-82; Union Dry Goods Co. v. Georgia Public
Service Corp., 248 U. S. 372, 375.
In Addyston Pipe & Steel Co. v. United States, 175 U. S. 211, 229. 230,
the court raised the pertinent question—if certain kinds of private contracts
directly limit or restrain, and hence regulate inter-State commerce, why
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should not the power of Congress reach such contracts equally with legislation of a State to the same effect?
"What sound reason," said the court, "can be given why Congress should
have the power to interfere in the case of the State, and yet have none
in the case of the individual?
"Commerce is the important subject of consideration, and anything which
directly obstructs and thus regulates that commerce which is carried on
among the States, whether it is State legislation or private contracts
between individuals or corporations, should be subject to the power of
Congress in the regulation of that commerce."
Applying that principle, the court held that a contract, valid when
made (in 1871) for the giving of a free pass by an inter-State carrier, in
consideration of a release of a claim for damages, could not be enforced
after the Congress had passed the Act of June 29 1906, 38 Stat. 584.
Louisville J4 Nashville RR. Co. v. Mottley, 219 U. S. 467. (E.)
Quoting the statement of the general principle in the legal tender cases,
the court decided that the agreement must necessarily be regarded as
having been made subject to the possibility that, at some future time, the
Congress "might so exert its whole constitutional power in regulating interState commerce as to render that agreement unenforceable or to impair
its value."
The court considered it inconceivable that the exercise of such power
"may be hampered or restricted to any extent by contracts previously
made between individuals or corporations."
"The framers of the Constitution never intended any such state of things
to exist." Id., p. 482.
Accordingly, it has been "authoritatively settled" by decisions of this
court that no previous contracts or combinations can prevent the application of the Anti-trust Acts to compel the discontinuance of combinations
declared to be illegal. Addyston Pine & Steel Co. v. United States, supra;
United States v. Southern Pacific Co., 259 U. S. 214, 234, 235. See, also,
Calhoun v. Massie, 253 U. S. 170, 176; Omnia Commercial Co. v. United
States, 261 U. S. 502, 609; Stephenson v. Binford, 287 U. S. 251, 276.
The principle is not limited to the incidental effect of the exercise by
the Congress of its constitutional authority. There is no constitutional
ground for denying to the Congress the power expressly to prohibit and
invalidate contracts although previously made, and valid when made,
when they interfere with the carrying out of the policy it is free to adopt.
Cites Exercise of Power in Employers' Liability Act
The exercise of this power is illustrated by the provision of Section 5 of
the Employers' Liability Act of 1908 (35 Stat. 65, 66) relating to any
contract the purpose of which was to enable a common carrier to exempt
Itself from the liability which the Act created. Such a stipulation the
Act explicitly declared to be void.
In the second Employers' Liability cases, 223 U. S. 1, 52, the court
decided that as the Congress possessed the power to inriose the liability,
it also possessed the power "to insure its efficacy by prohibiting any contract, rule, regulation or device in evasion of it."
And this prohibition the court has held to be applicable to contracts
made before the Act was passed. Philadelphia Baltimore & Washington RR.
Co. v. Schubert, 224 U. S. 603.
In that case, the employee, suing under the Act, was a member of the
"Relief Fund" of the railroad company under a contract of membership,
made in 1905, for the purpose of securing certain benefits.
The contract provided that an acceptance of those benefits should operate
as a release of claims, and the company pleaded that acceptance as a
bar to the action.
The court held that the Employers' Liability Act supplied the goeerning
rule and that the defense could not be sustained.
The power of the Congress in regulating inter-State commerce was not
fettered by the necessity of maintaining existing arrangements and stipulations which would conflict with the execution of its policy.
The reason Is manifest. To subordinate the exercise of the Federal
authority to the continuing operation of previous contracts would be to
place to this extent the regulation of Inter-State commerce in the hands
of private individuals and to withdraw from the control of the Congress so
much of the field as they might choose by "prophetic discernment" to bring
within the range of their agreements.
The Constitution recognizes no such limitation. Id., pp. 613, 614.
See, also, United States v. Southern Pacific Co., supra; Sprolee v. Binford,
286 U. S. 374, 390, 391; Radio Commission v. Nelson Brothers Co., 289
U. S. 266, 282.
The same reasoning applies to the constitutional authority of the Congress
to regulate the currency and to establish the monetary system of the
country. If the gold clauses now before us interfere with the policy of the
Congress in the exercise of that authority, they cannot star.d.
Fourth, the effect of the gold clauses in suit in relation to the monetary
policy adopted by the Congress—Despite the wide range of the discussion
at the bar and the earnestness with which the arguments against the
validity of the Joint Resolution have been pressed, these contentions necessarily are brought, under the dominant principles to which we have
referred, to a single and narrow point.
That point is whether the gold clauses do constitute an actual interference
with the monetary policy of the Congress in the light of its broad power
to determine that policy.
Whether they may be deemed to be such an interference depends upon
an appraisement of economic conditions and upon determinations of questions of fact.
With respect to those conditions and determinations, the Congress is
entitled to its own judgment. We may inquire whether its action is
arbitrary or capricious, that is, whether it has reasonable relation to a
legitimate end.
If it is an appropriate means to such an end, the decisions of the Congress as to the degree of the necessity for the adoption of that means is
final. McCulloch v. Maryland, supra. pp. 421, 423; Juilliard v. Greenman,
supra, p. 450; Stafford v. Wallace, 258 U. S. 495, 521; Everard's Breweries
v. Day, 265 U. S. 545. 559. 562.
The Committee on Banking and Currency of the House of Representatives gated in its report recommending favorable action upon the Joint
Resolution (H. R. Rep. No. 169, Seventy-third Congress, First Session):
"The occasion for the declaration In the resolution that the gold clauses are contrary to public policy arises out of the experiences of the present emergency. These
gold clauses render ineffective the power of the Clovernment to create a currency
and determine the value thereof. if the gold clause applied to a very limited number of contracts and security issues, It would be a matter of no particular consequence, but in this country virtually all obligations, almost as a matter of routine.
contain the gold clause.
"In the light of this situation two phenomena which have developed during the
present emergency make the enforcement of the gold clauses incompatible with the
public interest. The first is the tendency which has developed internally to hoard
gold: the second Is the tendency for canital to leave the country. Under these
circumstances no currency system, whether based upon gold or upon any other
Feb. 23 1935
foundation, can meet the requirements of a situation in which many billions of dollars of securities are expressed in a particular form of the circulating medium, particularly when it is the medium upon which the entire credit and currency structure
rests."
And the Joint Resolution itself recites the determination of the Congress
in these words: (F.)
"Whereas the existing emergency has disclosed that provisions of obligations
which purport to give the obligee a right to require payment in gold or a particular
kind of coin or currency of the United States, or in an amount in money of the
United States measured thereby, obstruct the power of the Congress to regulate the
value of the money of the United States, and are inconsistent with the declared
policy of the Congress to maintain at all times the equal power of every dollar,
coined or issued by the United States,In the markets and in the payment of debts."
Can we say that this determination is so destitute of basis that the
interdiction of the gold clauses must be deemed to be without any reasonable relation to the monetary policy adopted by the Congress?
Volume of Obligation. With Gold Clauses
The Congress, in the exercise of its discretion, was entitled to consider
the volume of obligations with gold clauses, as that fact, as the report
of the House committee observed, obviously had a bearing upon the question
whether their existence constituted a substantial obstruction to the Congressional policy.
The estimates submitted at the bar indicate that when the joint resolution was adopted there were outstanding $75,000,000,000 or more of such
obligations, the annual interest charges on which probably amounted to
between $3,000,000,000 and $4,000,000,000.
It is apparent that if these promises were to be taken literally, as
calling for actual payment in gold coin, they would be directly opposed
to the policy of Congress, as they would be calculated to increase the
demand for gold, to encourage hoarding, and to stimulate attempts at
exportation of gold coin.
If there were no outstanding obligations with gold clauses we suppose
that no one would question the power of the Congress, in its control of the
monetary system, to endeavor to conserve the gold resources of the Treasury,
to insure its command of gold in order to protect and increase its reserves,
and to prohibit the exportation of gold coin or its use for any purpose
inconsistent with the needs of the Treasury. See Ling Su Fan v. United
States, supra.
And if the Congress would have that power in the absence of gold clauses,
principles beyond dispute compel the conclusion that private parties, or
States or municipalities, by making such contracts could not prevent or
embarrass its exercise. In that view of the import of the gold clauses,
their obstructive character is clear.
But, if the clauses are treated as "gold value" clauses, that is, as
intended to set up a measure or standard of value if gold coin is not
available, we think they are still hostile to the policy of the Congress and
hence subject to prohibition.
It is true that when the Joint Resolution was adopted on June 5 1933,
while gold coin had largely been withdrawn from circulation and the
Treasury had declared that "gold is not now paid, nor is it available for
payment, upon public or private debts," (0), the dollar had not yet been
devalued.
But devaluation was in prospect and a uniform currency was intended (H).
Section 43 of the Act of May 12 1933 (48 Stat. 51), provided that the
President should have authority, on certain conditions, to fix the weight
of the gold dollar as stated, and that its weight as so fixed should be "the
standard unit of value" with which all forms of money should be maintained "at a parity."
The weight of the gold dollar was not to be reduced by more than 50%.
The Gold Reserve Act of 1934 (Jan. 30 1934, 48 Stat. 337), provided that
the President should not fix the weight of the gold dollar at more than 60%
of its present weight.
The order of the President of Jan. 31 1934 fixed the weight of the gold
dollar at 15 5/21 grains .9 fine as against the former standard of 25 8/10
grains .9 fine. If the gold clauses interfered with the Congressional policy
and hence could be invalidated, there appears to be no constitutional objection to that action by the Congress in anticipation of the determination of
the value of the currency. And the questions now before us might be
determined in the light of that action.
The devaluation of the dollar placed the domestic economy upon a new
basis. In the currency as thus provided, States and municipalities must
receive their taxes; railroads, their rates and fares; public utilities, their
charges for services. The income out of which they must meet their
obligations is determined by the new standard.
Yet, according to the contentions before us, while that income is thus
controlled by law, their indebtedness on their "gold bonds" must be met
by an amount of currency determined by the former gold standard. Their
receipts, in this view, would be fixed on one basis; their interest charges,
and the principal of their obligations, on another.
It is common knowledge that the bonds issued by these obligors have
generally contained gold clauses, and presumably they account for a large
part of the outstanding obligations of that sort.
It is also common knowledge that a similar situation exists with respect
to numerous industrial corporations that have issued their "gold bonds"
and must now receive payments for their products in the existing currency.
It requires no acute analysis or profound economic inquiry to disclose
the dislocation of the domestic economy which would be caused by such a
disparity of conditions in which, it is insisted, those debtors under gold
clauses should be required to pay one dollar and sixty-nine cents In currency
while respectively receiving their taxes, rates, charges and prices on the
basis of one dollar of that currency.
We are not concerned with consequences, in the sense that consequences,
however serious, may excuse an invasion of constitutional right.
We are concerned with the constitutional power of the Congress over the
monetary system of the country and its attempted frustration.
Exercising that power, the Congress has undertaken to establish a
uniform currency, and parity between kinds of currency, and to make that
currency, dollar for dollar, legal tender for the payment of debts.
In the light of abundant experience, the Congress was entitled to choose
such a uniform monetary system, and to reject a dual system, with respect
to all obligations within the range of the .exercise of Its constitutional
authority.
The contention that these gold clauses are valid contracts and connot be
struck down proceeds upon the assumption that private parties, and States
and municipalities, may make and enforce contracts which may limit that
authority.
Dismissing that untenable assumption, the facto must be faced. We
think that it is clearly shown that these clauses interfere with the exertion
of the power granted to the Congress and certainly it is not established
that the Congress arbitrarily or capriciously decided that such an interference existed.
Financial Chronicle
Volume 140
The judgment and decree, severally under review, are affirmed.
No. 270.—Judgment affirmed.
. Nos. 471 and 472.—Decree affirmed.
Footnotes
(A) (Here was quoted the joint Congress resolution of June 5 19331
(B) One appeal was allowed by the District Judge and the other by the
Circuit Court of Appeals.
(0) As illustrating the use of such clauses as affording a standard or
measure of value, counsel refer to Article 262 of the Treaty of Versailles
with respect to the monetary obligations of Germany which were made
payable in gold coins of several countries, with the stated purpose that
the gold coins mentioned "shall be defined as being of the weight and
fineness of gold as enacted by law on Jan. 1 1914."
Reference is also made to the construction of the gold clause in the
bonds before the House of Lords in Feist, appellant, and Societe Intercommunale Beige d'Electricite, respondents (L. R. (1934) A. C. 161, 173),
and to the decisions of the Permanent Court of International Justice in the
cases of the Serbian and Brazilian loans (publications of the Permanent
Court of International Justice, Series A, Nos. 20/21) where the bonds
provided for payment in gold francs.
(D) Mr. Justice Miller also dissented in Trebilcock v. Wilson, 12 Wall.,
p. 699, 700, upon the ground "that a contract for gold dollars, in terms,
was in no respect different, in legal effect, from a contract for dollars
without the qualifying words, specie, or gold, and that the legal tender
statutes had, therefore, the same effect in both cases."
(E) Compare New York Central & Hudson RR. Co. v. Gray, 239 U. S.
583; Calhoun v. Massie, 253 U. S. 170, 176.
(F) See Note 1.
(0) Treasury statement of May 26 1933.
(H) The Senate Committee on Banking and Currency, in its report of
May 27 1933, stated:
"By the Emergency Banking Act and the existing executive orders gold is not now
paid, or obtainable for payment, on obligations public or private. By the Thomas
amendment currency was intended to be made legal tender for all debts. However, due to the language used doubt has arisen whether it has been made legal
tender for payments on gold clause obligations, public and private. This doubt
should be removed. These gold clauses interfere with the power of!Congress to
regulate the value of the money of the United States and the enforcement of them
would be inconsistent with existing legislative Policy."
Sen. Rep. No. 99, Seventy-third Congress, First Session.
Dissenting Opinion of United States Supreme Court
in Cases Involving Constitutionality of Gold
Clauses in Government Obligations and Private
Contracts
The four Supreme Court Justices who dissented from the
conclusions of the majority in the cases involving the constitutionality of the gold clauses in Government obligations
and private contracts, presented in one decision their views
on the question of the validity of the clauses in various
classes of obligations—the majority, on the other hand, setting out their conclusions in three decisions—one bearing on
the gold clause in the Fourth Liberty Loan bond (No. 532,
Perry v. United States); another in the case (No. 531, Nortz
v. United States), involving gold certificates of the United
States Treasury, and the third decision covering its findings in the following cases: Nos. 270, and 471 and 472,
relating to gold clauses, in private obligations—bonds, respectively, of the Baltimore & Ohio RR. Co., and the St.
Louis Iron Mountain & Southern Ry. Co., of the Missouri
Pacific System. All of these decisions, in full, we give elsewhere in these columns to-day, as well as the separate
opinion of Justice Stone in the suit involving the clause in
the Liberty Loan bond. The dissenting opinion of the
minority in the gold cases, written by Justice McReynolds,
follows, in full:
SUPREME COURT OF THE UNITED STATES
Nos. 270, 471, 472, 531 and 532—October Term, 1934
Norman C. Norman, petitioner, v. the Baltimore & Ohio RR. Co. (270.)
On writ of certiorari to the Supreme Court of the State of New York.
The United States of America, Reconstruction Finance Corporation et al.,
petitioners, v. Bankers Trust Co., and William H. Bixby, trustee (471), the
United States of America, Reconstruction Finance Corporation et al.,
petitioners, v. Bankers Trust Co. and William H. Bixby, trustees. (472.)
On writs of certiorari to the United States Circuit Court of Appeals for
the Eighth Circuit. •
F. Eugene Nortz v. the United States. (531.) On certificate from the
Court of Claims.
John M. Perry v. the United States. (532.) On certificate from the
Court of Claims. (Feb. 18 1935.)
Mr. Justice McReynolds dissenting.
Mr. Justice Van Deventer, Mr. Justice Sutherland, Mr. Justice Butler
and I conclude that, if given effect, the enactments here challenged will
bring about confiscation of property rights and repudiation of national
obligations.
Acquiescence in the decisions just announced is Impossible; the circumstances demand statement of our views. "To let one's self slide down the
easy slope offered by the course of events and to dull one's mind against
the extent of danger, . . . that is precisely to fail in one's obligation of
responsibility."
Just men regard repudiation and spoliation of citizens by their sovereign
with abhorrence; but we are asked to affirm that the Constitution has
granted power to accomplish both.
No definite delegation of such a power exists; and we cannot believe the
far-seeing framers, who labored with hope of establishing justice and
securing the blessings of liberty, intended that the expected Government
should have authority to annihilate its own obligations and destroy the
very rights which they were endeavoring to protect.
Not only is there no permission for such actions; they are inhibited.
And no plenitude of words can conform them to our charter.
The Federal Government is one of delegated and limited powers which
derive from the Constitution. "It can exercise only the powers granted to
It." Powers claimed must be denied unless granted; and, as with other
1213
writings, the whole of the Constitution is for consideration when one
seeks to ascertain the meaning of any part.
By the so-called gold clause—promise to pay in "United States gold
coin of the present standard of value," or "of or equal to the present
standard of weight and fineness"—found in very many private and public
obligations, the creditor agrees to accept and the debtor undertakes to
return the thing loaned or its equivalent. Thereby each secures protection,
one against decrease in value of the currency, the other against an increase.
The clause is not new or obscure or discolored by any sinister purpose.
For more than 100 years our citizens have employed a like agreement.
During the war between States its equivalent "payable in coin" aided in
surmounting financial difficulties.
From the house-top men proclaimed its merits while bonds for billions
were sold to support the World War. The treaty of Versailles recognized
it as appropriate and just. It appears in the obligations which have
rendered possible our great undertakings—public works, railroads, buildings.
Under the interpretation accepted here for many years, this clause expresses a definite enforceable contract. Both by statute and long use
the United States have approved it. Over and over again they have enjoyed
the added value which it gave to their obligations.
So late as May 2 1933, they issued to the public more than $550,000,000
of their notes, each of which carried a solemn promise to pay in standard
gold coin. (Before that day this coin had in fact been withdrawn from
circulation, but statutory measure of value remained the gold dollar of
25.8 grains.)
Interpretations by Foreign Courts
The Permanent Court of International Justice interpreted the clause
Brazilian
as this court had done and upheld it. Cases of gerbian and
there
loans, Publications P. C. I. J., Series A, Nos. 20-21 (1929). It was
declared:
itself of a possibility
"The gold clause merely prevents the borrower from availing
and "the treatment of the gold
of discharge of the debt in depreciated currency."
to a gold standard
reference
without
payment,
of
modality
mere
a
indicating
clause as
of value, would be, not to construe but to destroy it."
161,
In Feist v. Societe Intercommunale Beige d'Electricite (1934), AO
the House of Lords expressed like views.
Gregory v. Morris (1878), 96 U. S. 619, 624, 625—last of similar causes
Justice
—construed and sanctioned this stipulation. In behalf of all Chief
Waite there said:
held was for
Pw"The obligation secured by the mortgage or lien under which Morris
Rodeo, 7 Wall. (1869) 229.
the payment of gold coin, or, as was said in Bronson vs.
by a
ascertained
be
to
gold,
standard
of
weight
certain
a
deliver
to
agreement
'an
proportion of that
count of coins, each of which is certified to contain a definite
weight' and is not distinguishable 'from a contract to deliver an equal weight of
bullion of equal fineness.' . .
it was within the power of
"We think it clear, that, under such circumstances,the
contract as one for the
treat
the Court, so far as Gregory was concerned, to was
to accept a judgment
willing
Morris
delivery of so much gold bullion: and, if
which might be discharged in currency, to have his damages estimated accordingXo
bullion."
the currency value of
Earlier eases—Bronson V. Rodes, 7 Wall. 229 ; Butler v. Horwitz, 7 Wall.
258; Dewing v. Sears, 11 Wall. 379; Trebilcock v. Wilson, 12 Wall. 687;
Thompson v. Butler, 95 U. S. 694—while important, need not be dissected.
Gregory v. Morris is in harmony with them and the opinion there definitely
and finally stated the doctrine which we should apply.
definite
It is true to say that the gold clauses "were intended to afford a
depreciation
standard or measure of value, and thus to protect against a
by payment
of the currency, and against the discharge of the obligation
of less than that prescribed."
in curpayable
Furthermore, they furnish means for computing the sum
rency if gold should become unobtainable.
grains to the
The borrower agrees to repay in gold coin containing 25.8
discharge the obligadollar, and if this cannot be secured the promise is to
value of that number
tion by paying for each dollar loaned the currency
carried out.
of grains. Thus, the purpose of the parties will be
an equivaIrrespective of any change in currency, the thing loaned or
present currency
lent will be returned—nothing more nothing less. The
the Government
consists of promises to pay dollars of 15 5/21 grains;
determine the
procures gold bullion on that basis. The calculation to
Gregory v.
damages for failure to pay in gold would not be difficult.
Morris points the way.
Issuance of Gold Certificates Under United States Statute*
years issued
Under appropriate statutes the United States for many
there have
gold certificates, in the following form: "This certifies that
one thousand
been deposited in the Treasury of the United States of America
certificate is a
dollars in gold coin payable to the bearer on demand. This
dues public
legal tender in the amount thereof in payment of all debts and
and private."
Sec. 6,
The certificates here involved—Series 1928—were issued under
A. Title 31,
Act March 14 1900, 81 Stat. 47, as amended. See U. S. C.
Sec. 429. (1.)
certificates
In view of the statutory direction that gold coin for which
for no
are issued shall be held for their payment on demand "and used
States
other purpose," it seems idle to argue (as counsel for the United
1863.
did) that other use is permissible under the ancient Act of March 3
5 to
By various orders of the President and the Treasury from April
Dec. 28 1933, persons holding gold certificates were required to deliver
currency
or
them and accept "an equivalent amount of any form of coin
coined or issued under the laws of the United States designated by the
Secretary of the Treasury." Heavy penalties were provided for failure
to comply.
That the holder of one of these certificates was owner of an express
promise by the United States to deliver gold coin of the weight and fineness established by statute when the certificate issued, or if such demand
was not honored, to pay the holder the value in the currency then in use,
seems clear enough. This was the obvious design of the contract.
The Act of March 14 1900, 31 Stat. c., 41, 45, 47, as amended. in effect
until Jan. 81 1934, provided: "That the dollar consisting of 25.8 grains
of gold .9 fine, . . . shall be the standard unit of value and all forms
of money issued or coined by the United States shall be maintained at a
parity of value with this standard," and also, "The Secretary of the Treasury
Is authorized and directed to receive deposits of gold coin with the Treasurer .
. in sums of not less than $20. and to issue gold certificates
therefor in denominations of not less than $10. and the coin so deposited
shall be retained in the Treasury and held for the payment of such certificates on demand and used for no other purpose." See U. S. C. A., Title 31,
Section 34, 429.
The Act of Feb. 4 1910, 86 Stat. c., 25, p. 192, directed "that any bonds
and certificates of indebtedness of the United States hereafter issued shall
1214
Financial Chronicle
be payable, principal and interest, in United States gold coin of the
present standard of value."
By Executive Orders, April 5 and April 20 1933, the President undertook
to require owners of gold coin, gold bullion, and gold certificates, to
deliver them on or before May 1, to a Federal Reserve Bank, and to prohibit
the exportation of gold coin, gold bullion or gold certificates.
As a consequence, the United States went off the gold standard and their
paper money began a rapid decline in the markets of the world. Gold
coin, gold certificates and gold bullion were no longer obtainable. "Gold
is not now paid nor is it available for payment upon public or private
debts," was declared in Treasury statement of May 27 1933; and this is
still true. All gold coins have been melted into bars.
The Agricultural Adjustment Act of May 12 1933, 48 Stat. c., 25, pp. 31,
52, 53—entitled "An Act to relieve the existing national economic emergency by increasing agricultural purchasing power, to raise revenue for
extraordinary expenses incurred by reason of such emergency, to provide
emergency relief with respect to agricultural indebtedness, to provide for
the orderly liquidation of Joint Stock Land banks, and for other purposes" by Section 43 provides that "such notes [United States notes] and
all other coins and currencies heretofore and hereafter coined or issued by
or under the authority of the United States shall be legal tender for all
debts public and private."
Also, that the President by proclamation may "fix the weight of the
gold dollar . . . as he finds necessary from his investigation to stabilize
domestic prices or to protect the foreign commerce against the adverse
effect of depreciated foreign currencies."
And further, "such gold dollar, the weight of which is so fixed, shall
be the standard unit of value, and all forms of money issued or coined
by the United States,-shall be maintained with a parity with this standard
and it shall be the duty of the Secretary of the Treasury to maintain such
parity, but in no event shall the weight of the gold dollar be fixed so as to
reduce its present weight by more than 50%."
Gold Reserve Act
The Gold Reserve Act of Jan. 30 1934, 48 Stat c., 6 p. 337, 342, undertook to ratify preceding Presidential orders and proclamations requiring
surrender of gold but prohibited him from establishing the weight of the
gold dollar "at more than 60% of its present weight."
By proclamation, Jan. 31 1934, he directed that thereafter the standard
should contain 15 5/21 grains of gold, .9 fine. (The weight had been 25.8
grains since 1837.) No such dollar has been coined at any time.
On June 5 1933 Congress passed a "Joint Resolution to assure uniform
value to the coins and currencies of the United States," 48 Stat. c., 48,
pp. 112. This recited that holding and dealing in gold affect the public
interest and are therefore subject to regulation ; that the provisions of
obligations which purport to give the obligee the right to require payment
in gold coin or in any amount of money of the United States measured
thereby obstruct the power of Congress to regulate the value of money and
are inconsistent with the policy to maintain the equal value of every
dollar coined or issued.
It then declared •that every provision in any obligation purporting to
give the obligee a right to require payment in gold is against public
policy and directed that "every obligation, heretofore or hereafter incurred,
whether or not any such provision is contained therein or made with
respect thereto, shall be discharged upon payment dollar for dollar, in
any coin or currency which at the time of payment is legal tender for
public and private debts."
Cases Before the Court
Four causes are here for decision. Two of thefts arise out of corporate
ebligations containing gold clauses—railroad bonds. One is based on a
United States Fourth Liberty Loan bond of 1918, called for payment
April 15 1934, containing a promise to pay "in United States gold coin
of the present standard of value" with interest in like gold coin. Another
involved gold certificates, Series 1928, amounting to $106,300.
As to the corporate bonds the defense is that the gold clause was destroyed
by the resolution of June 5 1933 ; and this view is sustained by the
majority of the court.
It is insisted that the agreement, in the Liberty bond, to pay in gold
also was destroyed by the Act of June 5 1933. This view is rejected by
the majority; but they seem to conclude that because of the action of
Congress in declaring the holding of gold unlawful, no appreciable damage
resulted when payment therein or the equivalent was denied.
Concerning the gold certificates, it is ruled that if upon presentation
for redemption gold coin had been paid to the holder, as promised, he
would have been required to return this to the Treasury. He could not
have exported it or dealt with it. Consequently, he sustained no actual
damage.
There is no challenge here of the power of Congress to adopt such proper
"monetary policy" as it may deem necessary in order to provide for
national obligations and furnish an adequate medium of exchange for
public use.
The plan under review in the legal tender cases was declared within
the limits of the Constitution, but not without a strong dissent. The
conclusions there announced are not now questioned; and any abstract
discussion of Congressional power over money would only tend to befog
the real issue.
The fundamental problem now presented is whether recent statutes
passed by Congress in respect of money and credits Were designed to
attain a legitimate end. Or whether, under the guise of pursuing a
monetary policy, Congress really has inaugurated a plan primarily designed
to destroy private obligations, repudiate national debts and drive into
the Treasury all gold within the country in exchange for inconvertible
prothises to pay, of much less value.
Considering all the circumstances, we must conclude they show that the
plan disclosed is of the latter description, and its enforcement would
deprive the parties before us of their rights under the Constitution. Consequently, the court should do what it can to afford adequate relief.
What has been already said will suffice to indicate the nature of these
causes and something of our general views concerning the intricate problems
presented. A detailed consideration of them would require much time
and elaboration ; would greatly extend this opinion.
Considering also the importance of the result to legitimate commerce,
it seems desirable that the court's decision should he announced at this
time. Accordingly, we will only undertake in what follows to outline
with brevity our replies to the conclusions reached by the maiority and
to suggest some of the reasons which lend support to our position.
Feb. 23 1935
Weight of Gold Reduced in 1834
The authority exercised by the President and the Treasury in demanding
all gold coin, bullion and certificates is not now challenged; neither is the
right of the former to prescribe weight for the standard dollar. These things
we have not considered. Plainly, however, to coin money and regulate
the value thereof calls for legislative action.
Intelligent discussion respecting dollars requires recognition of the fact
that the word may refer to very different things. Formerly the standard
gold dollar weighed 25.8 grains; the weight now prescribed is 15 5-21 grains.
Evidently, promises to pay one or the other of these differ greatly in value
and this must be kept in mind.
From 1792 to 1873 both the gold and silver dollar were standard and legal
tender, coinage was free and unlimited. Persistent efforts were made to
keep both in circulation. Because the prescribed relation between them
got out of harmony with exchange values, the gold coin disappeared and did
not, in fact, freely circulate in this country for thirty years prior to 1834.
During that time business transactions were based on silver.
In 1834, desiring to restore parity and bring gold back into circulation,
Congress reduced somewhat (6%) the weight of the gold coin and thus
equalized the coinage and the exchange values. The silver dollar was not
changed.
The purpose was to restore the use of gold as currency—not to force up
prices or destroy obligations. There was no apparent profit for the books
of the Treasury. No injury was done to creditors; none was intended. The
legislation is without special significance here. See Hepburn on Currency.
The money under consideration in the Legal Tender cases, decided May 1
1871, 12 Wall. 457 and 110 U. S. 421, were promises to pay dollars, "bills
of credit." They were "a pledge of the national credit," promises "by the
Government to pay dollars," "the standard of value is not changed."
The expectation, ultimately realized, was that in due time they would
be redeemed in standard coin. The Court was careful to show that they were
Issued to meet a great emergency in time of war, when the overthrow of the
Government was threatened and specie payments had been suspended.
Both the end in view and the means employed, the Court held, were
lawful. The thing actually done was the issuance of bills endowed with the
quality of legal tender in order to carry on until the United States could
find it possible to meet their obligations in standard coin. This they accomplished in 1879. The purpose was to meet honorable obligations—not
to repudiate them.
The opinion there rendered declares—
" • . . the legal tender acts do not attempt to make paper a standald of
value. We do not rest their validity upon the assertion that their omission Is
coinage, or any regulation of the value of money, nor do we assert that the Congress
may make anything which has no value money.
"What we do assert Is that Congress has power to enact that the Government's
promises to pay money shall be, for the time being, equivalent In value to the representative of value determined by the coinage acts or to multiples thereof."
What was said in those causes, of course, must be read in the light of all
the circumstances. The opinion gives no support to what has been attempted
here.
This Court has not heretofore ruled that Congress may require the
holder of an obligation to accept payment in subsequently devalued coins,
or promises by the Government to pay in such coins.
The legislation before us attempts this very thing. If this is permissible,
then a gold dollar containing one grain of gold may become the standard,
all contract rights fall, and huge profits appear on the Treasury books.
Instead of $2,800,000,000, as recently reported, perhaps $20,000,000,000
may be enough to cancel the public debt, may be morel
Limit of Governmental Powers
The power to issue bills and "regulate values" of coin cannot be so enlarged as to authorize arbitrary action, whose immediate purpose and
necessary effect is destruction of individual rights. (B)
As this Court has said, a "power to regulate is not a power to destroy." 154 U. S. 362, 398. The Fifth Amendment limits all Governmental
powers. We are dealing here with a debased standard, adopted with the
definite purpose to destroy obligations. Such arbitrary and oppressive action
Is not within any Congressional power heretofore recognized.
The authority of Congress to create legal tender obligations in times of
peace is derived from the power to borrow money; this cannot be extended
to embrace the destruction of all credits.
There was no coin—specie—in general circulation in the United States
between 1862 and 1879. Both gold and silver were treated in business as
commodities. The Legal Tender cases arose during that period.
Corporate Bonds
The gold clauses in these bonds were valid and in entire harmony with
public policy when executed. They are property—Lynch vs. United States,
292 U. S. 571, 579. To destroy a validly acquired right is the taking of
property—Osborn vs. Nicholson, 13 Wall. 646, 662.
They established a measure of value and supply a basis for recovery if
broken. Their policy and purpose were stamped with affirmative approval
by the Government when inserted in its bonds.
The clear intent of the parties was that in case the standard of 1900 should
be withdrawn, and a new and less valuable one set up, the debtor could
be required to pay the value of the contents of the old standard in terms of
the new currency, whether coin or paper. If gold measured by the prevailing
currency had declined, the debtor would have received the benefit.
The Agricultural Adjustment Act of May 12 discloses a fixed purpose
to raise the nominal value of farm products by depleting the standard
dollar. It authorized the President to reduce the gold in the standard, and
further provided that all forms of currency shall be legal tender.
The result expected to follow was increase in nominal values of commodities and depreciation of contractual obligations.
The purpose of Section 43 incorporated by the Senate as an amendment to the House bill was clearly stated by the Senator who presented it.(0)
It was the destruction of lawfully acquired rights.
In the circumstances existing just after the Act of May 12, depreciation
of the standard dollar by the Presidential proclamation would not have
decreased the amount required to meet obligations containing gold clauses.
As to them the depreciation of the standard would have caused an increase in the number of dollars of depreciated currency.
General reduction of all debts could only be secured by first destroying
the contracts evidenced by the gold clauses; and this the resolution of
Juno 5 undertook to accomplish. It was aimed directly at those contracts and had no definite relation to the power to issue bills or to coin
or regulate the value of money.
Gold Reserve Act
To carry out the plan indicated as above shown in the Senate, the
Gold Reserve Act followed—Jan. 30 1934. This inhibited the President
from fixing the weight of the standard gold dollar above 60% of its then
existing weight. (Authority had been given for 50% reduction by the
Act of May 12.)
On Jan. 31 he directed that the standard should contain 15 5-21 grains
of gold. If this reduction of 40% of all debts was within the power of
Congress and if as a necessary means to accomplish that end, Congress
had power by resolution to destroy the gold clauses, the holders of these
corporate bonds are without remedy.
But we must not forget that if this power exists Congress may readily
destroy other obligations which present obstruction to the desired effect of
further depletion. The destruction of all obligations by reducing the
standard gold dollar to one grain of gold, or brass or nickel or copper or
lead will become an easy possibility.
Thus we reach the fundamental question, which must control the result
of the controversy in respect of corporate bonds.
Apparently in the opinion of the majority the gold clause in the Liberty
Bond withstood the June 5 resolution notwithstanding the definite purpose to destroy them. We think that in the circumstances Congress had
nolpower to destroy the obligations of the gold clauses in private obligations. The attempt to do this was plain usurpation, arbitrary and
oppressive.
The oft repeated rule by which the validity of statutes must be tested
is this—"Let the end be legitimate, lot it be within the scope of the Constitution, and all means which are r.ppropriate which are plainly adapted
to that end which are not prohibited but consistent with the letter and
spirit of the Constitutiona are constitutional."
Objective of Joint Resolution Not "Legitimate"
The end or objective of the Joint Resolution was not "legitimate."
The real purpose was not "to assure uniform value to the coins and currencies of the United States," but to destroy certain valuable contract
rights.
The recitals do not harmonize with circumstances then existing. The
Act of 1900 which prescribed a standard dollar of 25.8 grains remained
in force; but its command that "all forms of money issued or coined by the
United States shall be maintained at a parity of value with this standard"
was not being obeyed.
Our currency was passing at a material discount, all gold had been
sequestrated; none was attainable. The resolution made no provision
for restoring parity with the old standard; it established no now one.
This resolution was not appropriate for carrying into effect any power
entrusted to Congress. The gold clauses in no substantial way interfered
with the power of coining money or regulating its value or providing a
uniform currency.
Their existence, as with many other circumstances, might have circumscribed the effect of the intended depreciation and disclosed the unwisdom
of it. But they did not prevent the exercise of any granted power. They
were not inconsistent with any policy theretofore declared.
To assert the contrary is not enough. The Court must be able to see the
appropriateness of the thing done before it can be permitted to destroy
lawful agreements. The purpose of a statute is not determined by mere
recitals—certainly they are not conclusive evidence of the facts stated.
Again, if effective, the direct, primary and intended result of the resolution will be the destruction of valid rights lawfully acquired. There is no
question here of the indirect effect of lawful exercise of power. And citations of opinions which upheld such indirect effects are beside the mark.
This statute does not "work harm and loss to individuals indirectly,"
it destroys directly. Such interference violates the Fifth Amendment;
there is no provision for compensation. If the destruction is said to be
for the public benefit proper compensation is essential; if for private benefit
the due process clause bars the way.
Congress has power to coin money, but this cannot be exercised without
the possession of metal. Can Congress authorize appropriation without
compensation of the necessary gold? Congress has power to regulate commerce, to establish post roads, &c. Some approved plan may involve the
use or destruction of A's land or a private way.
May Congress authorize the appropriation or destruction of these things
without adequate payment? Of course not. The limitations prescribed
by the Constitution restrict the exercise of all power.
Ling Su Fan vs. United States, 218 U. S. 302. supports the power of the
Legislature to prevent exportation of coins without compensation. But
this is far from saying that the Legislature might have ordered destruction
of the coins without compensating the owners or that they could have been
required to deliver them up and accept whatever was offered.
In United States vs. Lynah, 188 U. S. 445, 471, this Court said:
"It any one proposition can be considered as settled by the decisions of this Court,
it is that although in the discharge of its duties the Government may appropriate
property. It cannot do so without being liable to the obligation cast by the Fifth
Amendment of paying just compensation."
Government Bonds
Congress may coin money; also it may borrow money. Neither power
may be exercised so as to destroy the other; the two clauses must be so
construed as to give effect to each. Valid contracts to repay money
borrowed cannot be destroyed by exercising power under the coinage
provision.
The majority seem to hold that the resolution of June 5 did not affect
the gold clauses in bonds of the United States. Nevertheless, we are told
that no damage resulted to the holder now before us through the refusal to
/Say one of them in gold coin of the kind designated or its equivalent. This
amounts to a declaration that the Government may give with one hand and
take away with the other. Default is thus made both easy and safe!
Congress brought about the conditions in respect of gold which existed
when the obligation matured. Having made payment in this metal impossible, the Government cannot defedd by saying that if the obligation
had been met, the creditor could not have retained the gold; consequently
he suffered no damage because of the non-delivery.
Obligations cannot be legally avoided by prohibiting the creditor from
receiving the thing promised. The promise was to pay in gold, standard of
1900, otherwise to discharge the debt by paying the value of the thing
promised in currency.
One of these things was not prohibited. The Government may not
escape the obligation of making good the loss incident to repudiation
by prohibiting the holding of gold. Payment by fiat of any kind is beyond
its recognized power. There would be no serious difficulty in estimating
the value of 25.8 grains of gold in the currency now in circulation.
These bonds are held by mon and women in many parts of the world;
they have relied upon our honor. Thousands of our own citizens of every
degree, not doubting the good faith of their sovereign, have purchased
them. It will not be easy for this multitude to appraise the form of words
which establishes that they have suffered no appreciable damage; but perhaps no more difficult for thorn than for us.
And their difficulty will not be assuaged when they reflect that ready
calculation of the exact loss suffered by the Philippine Government moved
Congress to satisfy it by appropriating, in June, 1934, $23,862,750.78 to
be paid out of the Treasury of the United States. (D)
And see Act May 30 1934, 48 Stat. 817, appropriating $7,438,000 to
moot losses sustained by officers and employees in foreign countries
duo to appreciation of foreign currencies in their relation to the American
dollar.
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Financial Chronicle
Volume 140
Gold Certificates
These were contractsito return gold left on deposit; otherwise to Pay
its value in the currency. Here the gold was not returned; there arose
the obligation of the Government to pay its value. The Court of Claims
has jurisdiction over such contracts.
Congress made it impossible for the holder to receive and retain the
gold promised him; the statute prohibited delivery to him. The contract
beingibroken. the obligation was to pay in currency the value of 25.8
grains of gold for each dollar called for by the certificate.
For the Government to say, we have violated our contract but have
escaped the consequences through our own statute, would be monstrous.
In matters of contractual obligations the Government cannot legislate
so as to excuse itself.
These words of Alexander Hamilton ought not to be forgotten—
"When a government enters into a contract with an individual, it deposes, as to
the matter of the contract, its constitutional authority and exchanges the character
of legislator for that of a moral agent, with the same rights and obligations as an
individual.
"Its promises may be justly considered as excepted out of its power to legislate,
unless in aid of them. It is in theory impossible to reconcile the idea of a promise
which obliges, with a power to make a law which can vary the effect of it."
3. Hamilton's Works, 518, 519.
These views have not heretofore been questioned hero. In the Sinking Fund cases. 99 U. S. 700, 719, Chief Justice Waite speaking for the
majority, declared;
"The United States are as much bound by their contracts as are individuals. It
they repudiate their obligations, it is as much repudiation, with all the wrong and
reproach that term implies, as it would be if the repudiator had been a State or a
municipality or a citizen. No change can be made in the title created by the grant
of the lands, or in the contract for the subsidy bonds, without the consent of the
corporation. All this is indisputable."
And in:the same cause (731. 732), Mr. Justice Strong, speaking for himr
self, affirmed;
"It is as much beyond the power of a'Legislature, under any pretense, to alter a
contract into which the Government has entered with a private individual, as It is
for any other party to a contract to change its terms without the consent of the
person contracting with him. As to its contract the Government in all its departments has laid aside its sovereignty and it stands on the same footing with private
contractors."
Can the Government, obliged as though a private person to observe
the terms of its contracts, destroy them by legislative changes in the currency and by statutes forbidding one to hold the thing which it has agreed
to deliver? If an individual should,undertake to annul or lessen his obligation by secreting or manipulating his assets with the intent to place them
beyond the reach of creditors, the attempt would be denounced as fraudulent,
wholly ineffective.
Counsel forItheGovernment and railway companies asserted with emphasis that incalculable,linancial disaster would follow refusal to uphold,
as authorized.by the,Constitution. impairment and repudiation of private
obligations and public debts. Their forecast is discredited by manifest
exaggeration.
But, whatever maybe the situation now confronting us, it is the outcome
of attempts to:tlestroy lawful undertakings by legislative action; and this
we think the Court should disapprove in no uncertain terms.
Under the challenged statutes it is said the United .States have realized
profits amounting to $2,800,000,000 (E) but this assumes that gain may
be generated by legislative fiat. To such counterfeit profits there would
be no limit; with each new debasement of the dollar they would expand.
Two billions might be ballooned indefinitely—to 20. 30. or what you will.
Loss of reputation for honorable dealing will bring us unending humullation; the impending legal and moral chaos is appalling.
(A)In his annual report. 1926, 80. 81, the Secretary of the Treasury said:
"Gold and silver certificates are in fact mere 'warehouse recepts' issued by the
Government in exchange for gold coin or bullion deposited in the one case, or standard
silver dollars deposited in the other case, or against gold or standard silver dollars
respectively withdrawn from the general fund of the Treasury.
"Gold certificates, United States notes. Treasury notes of 1890 and Federal
Reserve notes are directly redeemable in gold."
In his letter with the annual report for 1933, 375, he showed that on
June 30 1933, $1,230,717.109 was held in trust against gold certificates
and Treasury notes of 1890. The Treasury notes of 1890 then outstanding
did not exceed about $1,350,000. i'. R. Rep. 1926, 80.
(B)"It may well be doubted whether the nature of society and of Government does not prescribe some limits to the legislative power; and if any be
proscribed where are they to be found if the property of an individual
fairly and honestly acquired may be seized without compensation?"
Chief .Instice Marshall, in Fletcher vs. Peck, 6 Cranch., 87. 135.
(C) He said:
"This amendment has for its purpose the bringing down or cheapening of the
dollar, that being necessary in order to raise agricultural and commodity prices.
. . . The first part of the amendment has to do with conditions precedent to
action being taken later.
"It will be my task to show that if the amendment shall prevail it has potentialities
as follows: It may transfer from one class to another class in these United States
value to the extent of almost 8200,000.000,000. This value will be transferred,
first, from those who own the bank deposits. Secondly, this value will be transferred from those who own bonds and fixed investments."
Cong. Record, April 1933, pp. 2004, 2216, 2217, 2219.
(D) An Act relating to Philippine currency reserves on deposit in the
United States.
Be it enacted by the Senate and House of Representatives of the United States of America
In Congress assembled, That the Secretary of the Treasury is authorized and directed.
when the funds therefor are made available, to establish on the books of the Treasury
a credit in favor of the Treasury of the Philippine Islands for $23,862,750.78, being
an amount equal to the increase in value (resulting from the reduction of the weight
of the gold dollar) of the gold equivalent at the opening of business on Jan. 31 1934.
of the balances maintained at that time in banks in the continental United States
by the Government of the Philippine Islands for its gold standard fund and its
Treasury certificate fund less the interest received by it on such balances.
Section 2. There is hereby authorized to be appropriated out of the receipts
covered into the Treasury under Section 7 of the Gold Reserve Act of 1934, by
virtue of the reduction of the weight of the gold dollar by the proclamation of the
President on Jan. 31 1934, the amount necessary to establish the credit provided for
In Section 1 of this Act. Approved. June 19 1934.
(E)In a radio address concerning the plans of the Treasury, Aug. 28
1934, the Secretary of the Treasury, as reported by the "Commercial and
Financial Chronicle" of Sept. 1 1934, stated:
"But we have another cash drawer in the Treasury, in addition to the
drawer which carries our working balance. This second drawer I will
call the 'gold' drawer. In it is the very large sum of $2,800,000.000.
representing 'profit' resulting from the change in the gold content of the
dollar. Practically all of this 'profit' the Treasury holds in the form of
gold and silver. The rest is in other assets.
"I do not propose here to subtract this $2,800,000.000 from the net increase of $4.400,000,000 in the national debt—thereby reducing the figure
to $1,600,000.000. And the reason why I do not subtract it is this: For
the present this $2,800,000,000 is under lock and key. Most of it. by
authority of Congress, is segregated in the so-called stabilization funds,
and for the present we propose to keep it there. But I call your attention
to the fact that ultimately we expect this 'profit' to flow back into the
stream of our other revenues and thereby reduce the national debt."
Financial Chronicle
1216
The Course of the Bond Market
The United States Supreme Court decisions on the gold
clause cases, which were favorable to the Government, have
been the outstanding event of the week. The announcement
required no change of policy on the part of the Administration and did not particularly affect the trends in the bond
market which have been in operation for several months.
As a clarifying influence, they perhaps enabled such trends
to proceed unimpeded. Briefly, the movement has been
toward greater strength for high-grade corporation bonds,
which again reached new highs during the week, a similar
situation in the case of United States Government issues,
and among the lower-grade issues, new highs for utilities
and weakness among rails, with continued strength for
industrials.
The Government's March 15 financing is beginning to
occupy the attention of bondholders, the indications being
that, in addition to refunding ($528,000,000 of certificates
and $1,870,000,000 of called Fourth Liberties) some new
money will be raised by the Treasury. The prevailing yields
on Treasury bonds are now the lowest since the early part
of this century, and indicate the easiest terms yet obtainable
by the Treasury under this Administration.
Some of the high-grade railroad bond issues made new
highs. Atchison gen. 4s, 1995, closed at 111 compared with
1
110% last week. Pennsylvania 4%s, 1965, at 108,
were
up % point. The movement of medium-grade rail issues
was somewhat erratic. Illinois Central ref. 4s, 1955, closed
at 83% compared with 84/
1
2 last Friday, whereas the Louisville & Nashville 41/
2s, 2003, advanced 1% points to 104.
Lower grades were generally weaker. Denver & Rio Grande
cons. 4s, 1936, closed at 321,41 compared with 33% last week;
Louisiana & Arkansas 1st 5s, 1969, ended the week at 66%,
down 1. Upon'announcement of non-payment of interest on
the Missouri-Kansas-Texas adj. 5s, 1967, a loss of 10 points
occurred in these bonds, which closed the week at 19, compared with 26% last week.
Utility bonds maintained a firm tone, with medium-grade
mortgage issues claiming the greatest interest. Among
those of this type that reached the highest levels for several
years were Gary Electric & Gas 5s, 1944, which advanced
41
/
2 points to 75 for the week; Gulf States Utilities 5s, 1956,
which gained 1% to close at 99%; Illinois Power & Light 6s,
1953, which at 91% were up 5 points, and Northern Indiana
Public Service 5s, 1966, which advanced % point to 90%.
Higher grades were also up, but less noticeably. Holding
company issues reacted somewhat, although weakness was
not pronounced. New York traction issues were not particularly moved by news of impending unification.
Although trading was considerably heavier during the
week, leading industrial issues showed but moderate net
changes. Individual situations, in some cases due to new
developments, made much wider swings in price. Purity
Bakeries 5s, 1948, rallied 3% points to 87%, and Manati
2 to 13%. On the other
Sugar stamped 7%s, 1942, gained 31/
hand, New York Traprock 6s, 1946, dropped 4/
1
2 to 57, and
Atlantic, Gulf & West Indies 5s, 1957, lost 1 to 39. American Seating 6s, 1936, were a strong feature, up 6% to 89%,
with Baldwin Locomotive 6s, 1938, very weak, the bonds
with warrants losing 16 points to 54.
The foreign bond market was rather irregular. Among
the issues which showed gains may be mentioned most of
the German corporate and Government bonds as well as the
obligations of Australia, Japan and Argentina. Belgian
and Norwegian bonds also were strong. On the other hand,
Colombian as well as Danish bonds showed some slight
weakness, while Brazilians also reacted downward' fractionally. Italian issues, probably under the influence of
political troubles with Abyssinia, remained weak. Austrian
bonds, on the other hand, were strong, as a group.
Moody's computed bond prices and bond yield averages
are given in the following tables:
MOODY'S BOND PRICES t
(Based on Average Ytekts)
120 Domestic Corporate*
by Ratings
102.14
100.81
100.81
100.33
102.81
100.00
100.00
84.85
118.04
117.43
117.63
117.43
119.27
117.22
117.22
105.37
Fah 2125 101 01
70 45
110.05
109.31
109.12
108.94
111.16
108.57
108.75
93.11
95.48 110.42 101.81
102 RS
89.31
A
OQQQQ0.42.411
000000000
ge Clos ed119.27 111.16
119.07 111.16
119.07 111.16
119.27 110.79
119.07 110.79
119.07 110.79
118.66 110.79
118.66 110.61
ge Clos ed118.86 110.61
118.88 110.61
118.68 110.42
118.45 110.42
118.25 110.23
118.25 110.23
118.25 110.05
118.25 110.05
118.04 110.05
88000000
Aa
Exchan
102.81
102.81
102.81
102.64
102.47
102.30
102.14
101.97
Exchan
101.81
101.97
101.64
101.14
100.81
100.98
101.14
101.31
101.31
Baa
14614Mbo666 6e4;-4.;.baCt bsio;-.WimbM
o w^wvootato.
Acta
Feb. 22._ Stock
21._ 108.02
20._ 107.76
19._ 107.84
18__ 107.60
16._ 107.53
15__ 107.49
14.. 107.45
13._ 107.31
12-- Stock
11._ 107.32
9-- 107.37
8._ 107.47
7__ 107.31
6-- 107.27
5-- 107.23
4_ 107.15
2._ 107.11
1-- 107.10
WeeklyJan. 25.. 107.33
18.. 106.79
11-_ 106.81
4_ . 105.76
High 1935 108.02
Low 1935 105.66
High 1934 106.81
Low 1934 99.08
Yr.AgoFeb.21'34 102.31
2 Yrs.Ago
tO
120
U. 3.
Govt. Domestic
Bands
Corp.*
••
• * WOZCOCCOO
•W
.WW1-.WVCO
1935
Daily
Averages
MOODY'S BOND YIELD AVERAGES t
(Based on Individual Closing Prices)
120 Domestic
Corporate* by Groups
RR.
P. U. /Whs.
84.10 99.84 100.81 108.03
84.10 100.00 100.65 107.85
84.22 100.17 100.49 107.85
84.10 100.17 99.84 108.03
83.72 99.84 99.68 108.03
83.60 99.68 99.68 107.85
83.60 99.52 99.52 107.85
83.23 99.20 99.20 107.85
82.87
82.99
82.50
81.54
80.95
81.42
81.90
82.26
82.38
84.35
82.26
82.50
81.54
84.60
80.95
83.72
66.38
Feb. 23 1935
99.20
99.20
99.04
98.41
97.78
98.25
98.73
99.04
99.04
98.88
99.04
98.41
98.09
97.62
97.62
97.62
97.78
97.94
107.85
107.85
107.85
107.67
107.67
107.85
107.49
107.49
107.31
100.49 98.73 107.49
99.68 9e.23 106.78
100.17 95.93 106.96
100.00 94.58 106.96
100.49 100.81 108.03
97.78 94.14 106.78
100.49 94.58 106.78
85.61 742.5 96.54
80.14
97.31
88.50 101.14
58.80
73.95
81.13
33_97
All
1935
120
Daily
DomesAverages
tie
120 Domestic Corporate
by Ratings
Aaa
AG
A
120 Domestic
Corporate by Groups
tt
30
PotP. U. Indus. signs
Baa
RR.
5.87
5.87
5.86
5.87
5.90
5.91
5.91
5.94
4.76
4.75
4.74
4.74
4.76
4.77
4.78
4.80
4.70
4.71
4.72
4.76
4.77
4.77
4.78
4.80
4,28
4.29
4.29
4.28
4.28
4.29
4.29
4.29
6.02
6.01
6.01
6.01
8.03
6.04
6.08
6.06
5.97
5.98
8.00
6.08
6.13
6.09
6.05
6.02
6.01
4.80
4.80
4.81
4.85
4.89
4.86
4.83
4.81
4.81
4.82
4.81
4.85
4.87
4.90
4.90
4.90
4.89
4.88
4.29
4.29
4.29
4.30
4.30
4.29
4.31
4.31
4.32
6.02
6.01
6.01
6.04
6.06
6.06
6.09
6.12
6.12
5.85
6.02
6.00
8.08
5.83
6.13
5.90
7.58
4.72
4.77
4.74
4.75
4.72
4.89
4.72
6.75
4.83
4.99
5.01
5.10
4.70
5.13
5.10
8.74
4.31
4.35
4.34
4.34
4.28
4.35
4.35
4.97
6.16
6.15
6.22
6.30
6.01
6.33
6.35
8.65
6.20
4.92
5.53
4.68
7.51
8.56
6.77
6.11
5.88 i10.59
Feb. 22__ Stock Exchan ge Clos ed21._ 4.58
3.70
4.11
4.63
20-- 4.58
3.71
4.11
4.63
19.- 4.58
3.71
4.11
4.84
18._ 4.59
3.70
4.13
4.86
16-- 4.60
3.71
4.13
4.67
15._ 4.61
3.71
4.13
4.68
14-- 4.62
3.73
4.13
4.69
13... 463
3.73
4.14
4.70
12.. Stock Exchan ge Clos ed11-- 4.64
3.72
4.14
4.71
9-- 4.63
3.73
4.14
4.70
8-_ 4.65
3.73
4.15
4.72
7__ 4.68
3.74
4.15
4.74
6-- 4.70
3.75
4.16
4.74
5-- 4.69
3.75
4.16
4.74
C.. 4.68
3.75
4.17
4.74
2__ 4.67
3.75
4.17
4.73
I__ 4.67
4.73
3.76
4.17
WeeklyJan. 25.. 4.82
3.76
4.17
4.70
18-- 4.70
3.79
4.21
4.78
11_
4.70
3.78
4.22
4.78
4__ 4.73
3.79
4.82
4.23
Low 1935 4.58
3.70
4.11
4.63
High 1935 4.75
4.83
3.80
4.25
Low 1934 4.75
4.81
3.80
4.24
High 1934 5.81
4.43
5.20
6.06
Yr. AgoFeb.21'34 5.04
5.18
4.15
4.64
2 Yrs.Ago
Feb.21'33 6.26
4.53
5.47
6.46
•These prices are computed from average yields on the basis of one "ideal" bond (454% coupon, maturing in 31 years) and do not purport to show either the average
level or the average movement of actual price quotations. They merely serve to Illustrate In a more comprehensive way the relative levels and the relative movement of
yield averages, the latter being the truer picture of the bond market. For Moody's index of bond prices by months back to 1928, see the issue 01 Feb. 6 1932, page 907.
**Actual average price of 8 long-term Treasury issues. I The latest complete list of bonds used In computing these indexes was published in the Issue of Oct. 13 1934.
page 2264. ft Average of 30 foreign bonds but adjusted to a comparable basis with previous averages of 40 foreign bonds.
Indications of Business Activity
THE STATE OF TRADE-COMMERCIAL EPITOME
Thursday Sight, Feb. 21 1935.
General business continued to make a good showing
despite a falling off in industrial activity in some branches.
For the second consecutive week steel operations showed a
decline, but now that the uncertainty over the gold question
has been removed business for second quarter delivery is
expected to pick up materially. Electricity output held
steady, and the spread over a year ago was widened to
7.3%, with most of the improvement taking place in the
Western regions. Lumber production showed further expansion. Shipments were a little smaller, but new orders
showed little change. The output of coal rose to a new
high level. Some of the unfavorable factors in the situation were a decline in engineering construction awards and
indications of a falling off in railroad car loadings. The
Department of Commerce reported that January merchandise sales in rural areas increased 10% in dollar volume
from January 1934, but showed more than a seasonal decrease from December. The announcement of the gold decision caused much activity and higher prices in all important markets. Bullish enthusiasm greeted the decision
which upheld the Government's power to control currency,
and in grain, buying orders were heavy and prices moved
up 3c. in a few minutes before trading was officially suspended. Cotton was more active and stronger, and prices
on the day of the decision rose $1.50 a bale. Rubber advanced 49 points on that day, silk 4s., coffee 36 points,
sugar 5 points, and other commodities made sharp upturns.
However, trading in most markets quieted down later on,
Volume
Financial Chronicle
140
1217
and the general trend became reactionary. Retail and ../.7.9% above those for the like week of 1933. Loadings
wholesale business continued good. Rather mild weather for the week ended Feb. 2 showed a gain of 5.8% when
prevailed here most of the week. There were snow flurries compared with 1934 and an increase of 23.1% when the
at times. Connecticut had 2 to 6 inches of snow on the comparison is with the same week of 1933.
17th inst. Shipping and air services were crippled in Great
The first 17 major railroads to report for the week ended
Britain by a gale over last week-end which reached a velocity Feb. 16 1935 loaded a total of 279,041 cars of revenue freight
in many places of 79 miles an hour. To-day it was fair and on their own lines, compared with 280,502 cars in the precedcold here, with temperatures ranging at 19 to 32 degrees. ing week and 285,285 cars in the seven days ended Feb. 17
The forecast was for increasing cloudiness, probably rain 1934. A comparative table follows:
late Friday afternoon or night; warmer. Overnight at REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS
Boston it was 16 to 40 degrees; Baltimore, 24 to 44; Pitts(Number Of Cars)
burgh, 20 to 34; Portland, Me., 12 to 38; Chicago, 26 to 30;
Loaded on Own Lines
Received from ConnTns
Cincinnati, 24 to 34; Cleveland, 18 to 28; Detroit, 12 to 24;
Weeks Ended
1Veeks Ended
Charleston, 38 to 58; Milwaukee, 22 to 26; Dallas, 56 to 70;
Feb. 16 Feb. 9 Feb. 17 Feb. 16 Feb. 9 Feb. 17
Savannah, 40 to 62; Kansas City, 42 to 52; Springfield, Mo.,
1934
1935
1935
1935
1935
1934
42 to 50; Oklahoma City, 52 to 68; Denver, 46 to 74; Salt Atch. Top. & Santa Fe Ry.
16,363 16,716 17,532 4,480 4,654 4,112
27,282 27,124 27.496 14,738 14,043 13,646
Lake City, 38 to 62; Los Angeles, 48 to 68; San Francisco, Baltimore & Ohio RR
22,404 21,412 21.453 6,874 6,439 6,836
Chesapeake & Ohio By
50 to 60; Seattle, 44 to 56; Montreal, 6 to 30, and Winni- Chicago Burl. 8v Quincy RR
12,769 13.214 14,335 6,521 6,828 5,738
Chicago Milw. St. P. & Pac. By. 16,687 16,902 17,059 6,605 6,826 5,933
peg, 4 to 22.
Chicago & North Western By
13,194 12,882 14,060 9,058 9,097 8,971
"Annalist" Weekly Index of Wholesale Commodity
Prices Up 0.6 Points During Week of Feb. 19Foreign Prices Higher in January
An advance of 0.6 points for the week carried the "Annalist" Weekly Index of Wholesale Commodity Prices up to
a new high since 1930 of 124.7 on Feb. 19from 124.1 (revised)
on Feb. 11. In noting this, the "Annalist" said:
The rise reflected both the continuation of the advance in hog prices
that has been in progress since December and the moderate recovery of
the speculative markets following the Supreme Court decision on the
gold clause.
Gulf Coast Lines
Internat. Great Northern RR
Missouri-Kansas-Texas RR
Missouri Pacific RR
New York Central Lines
N. Y. Chic. & St. Louis Ry
Norfolk & Western By
Pennsylvania RR
Pere Marquette By
Southern Pacific Lines
Wabash By
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
All commodities
bAll commodities on old dollar basis_
*Preliminary. a Revised.
land, Holland and Belgium.
Feb. 11 1935
Feb. 20 1934
122.8
128.2
*106.4
157.5
109.6
111.9
98.7
80.2
124.7
73.9
121.6
128.1
a106.4
157.5
109.6
112.1
a98.7
80.1
*124.1
a74.1
91.9
106.4
122.9
155.5
104.9
113.6
99.5
86.9
108.2
65.0
b Based on exchange quotations for France, Switzer-
As to foreign wholesale commodity prices the "Annalist"
stated:
Wholesale prices in the leading countries were generally somewhat higher
in January, and the "Annalist" International Composite for nine countries
advanced to 73.3 in terms of gold (1913= 100) from 72.6 in December.
The composite is now the highest since September, and except for that
month the highest since January 1934; most of the advance of the past
year, however, is due to the rise in this country on account of the drought.
The advance from December reflected to a considerable degree the pressure
on foreign currencies caused by the fear that the Supreme Court decision
would in some way lead to a return to the old dollar parity. In France,
particularly, an advance of 2 points to 346 marked a halt to the drastic
deflation of the past year, while the latest weekly index for that country
shows a considerable recovery since the turn of the year. Not all of that
is due to the pressure on the franc, however, with its devaluation implications, part being apparently due to a checking-for the time being, at
least-of the decline in business.
DOMESTIC AND FOREIGS WHOLESALE PRICE INDICES
(Measured in currency of country; index on gold basis shown for countries whose
currency has depreciated; 1913 = 100.0)
United States of America
Gold
Canada
Gold
United Kingdom
Gold
France
Germany
Gold
Italy
Gold
Japan
Gold
Comnosite in gold b
*Jan.
1935
aDec.
1934
Nor.
1934
Jan.
1934
122.6
73.1
111.7
66.7
104.5
62.6
346
101.0
101.3
280.2
270.6
137.1
47.0
73.3
118.0
70.1
111.2
66.9
104.4
63.0
344
101.0
101.2
279.2
269.1
136.8
47.0
72.6
116.4
69.3
111.2
67.8
104.1
63.6
356
101.2
101.6
277.2
267.4
136.8
47.4
73.1
105.2
66.1
110.3
69.2
104.6
68.5
405
96.3
95.8
277.6
276.4
132.6
50.5
74 R
I'. C.
Change
from
Dec.
1934
+3.9
+4.3
+0.4
-0.3
+0.1
-0.6
+0.6
0.0
+0.1
+0.4
+0.6
+0.2
0.0
4-1 n
•Preliminary. a Revised. h Includes also 13elg urn and Netherlands
Indices used: United States of America, Annalist; Canada. Dominion Bureau of
Statistics; United Kingdom, Board of Trade; France, Statisttque Generale; Germany,
Statistische Reichsamt; Italy. Consiglio delrEconomia di Milano; Japan, Bank of
Japan.
For back data, see the Annalist, Jan. 18 1935, pages 95, 96, 99 and 163.
2,923 1,120 1,256 1,350
1.914
2.891
1,959 2,081
4,292 2.433 2,574 2,587
7,486
13,256 6,472 7,271
42,614 60,525 60,626 62,434
3,845 8,952 8,984 8,895
18,538 3,845 3,969 3,930
56,239 35,068 35,755 33,677
5,133 5,403 5,283 5,313
18,765
4,854 8,598 8,471 7,782
X Not reported.
TOTAL LOADINGS AND RECEIPTS FROM CONNECTIONS
(Number of Cars)
Weeks Ended-
Feb. 16 1935
Illinois Central System
St. Louis-San Francisco By
Total
Feb. 9 1935
Feb. 17 19341
26,831
11,448
27,392
11,541
26,031
12.491
38,279
38,933
38,522
The Association of American Railroads in reviewing the
week ended Feb. 9 announced that:
Loading of revenue freight for the week ended Feb. 9 totaled 592.560
This was a decrease of 5,604 cars below the preceding week but an
increase of 18,662 cars above the corresponding week in 1934, and an
increase of 87,897 cars above the corresponding week in 1933.
Miscellaneous freight loading for the week ended Feb. 9 totaled-210,584
cars, a decrease of 134 cars below the preceding week but an increase of
15,698 ears above the corresponding week in 1934,and an increase of 67,766
cars above the corresponding week in 1933.
Loading of merchandise less than carload lot freight totaled 155.535 cars,
an increase of 1,169 cars above the preceding week, but a decrease of 4.813
cars below the corresponding week in 1934. It was, however, an increase
of 1,426 cars above the same week in 1933.
Coal loading amounted to 150,804 cars, a decrease of 4,630 cars below
the preceding week, but an increase of 11,320 cars above the corresponding
week in 1934, and an increase of 2.146 cars above the same week in 1933.
Grain and grain products loading totaled 25,212 cars, a decrease of 747
cars below the preceding week,and 6,059 cars below the corresponding week
in 1934, but an increase of 3,679 cars above the same week in 1933. In
the Western districts alone, grain and grain products loading for the week
ended Feb. 9 totaled 15,820 cars, a decrease of 5,084 cars below the same
week in 1934.
Live stock loading amounted to 12,569 cars, a decrease of 1,578 cars
below the preceding week, 1,165 cars below the same week in 1934 and
3,165 cars below the same week in 1933. In the Western districts alone,
loading of live stock for the week ended Feb. 9 totaled 9.489 cars, a decrease
of 1,072 cars below the same week in 1934.
Forest products loading totaled 25,414 cars, an increase of 1,053 cars
above the preceding week, 4,018 cars above the same week in 1934, and
13,070 cars above the same week in 1933.
Ore loading amounted to 3.133 cars, a decrease of 313 cars below the
preceding week, but an increase of 537 cars above the corresponding week
in 1934, and an increase of 1,036 cars above the corresponding week in 1933.
Coke loading amounted to 9.309 cars, a decrease of 424 cars below the
preceding week, and 874 cars below the same week in 1934, but an increase
of 1,939 cars above the same week in 1933.
The Eastern, Allegheny, Pocahontas and Northwestern districts showed
increases for the week of Feb. 9, compared with the corresponding week in
1934, in the number of cars loaded with revenue freight, but the Southern,
Central-western and Southwestern districts showed reductions. All districts reported increases compared with the corresponding week in 1933.
Loading of revenue freight in 1935 compared with the two previous years
follows;
cars.
•
4 week* in January
Week of Feb. 2
Week of Feb. 9
Total
Revenue Freight Car Loading for Latest Week Under
Previous Week and Like Week of 1934
Loadings of revenue freight for the week ended Feb. 16
1935 totaled 581,981 cars. This is a decrease of 10,579
cars, or 1.8% from the preceding week, but a loss of 18,287
cars, or 3.0% from the total for the like week of 1934. The
comparison with the corresponding week of 1933 was more
favorable, the present week's loadings being 64,452 cars,
or 12.5% higher. For the week ended Feb. 9 loadings
were 3.3% above the corresponding week of 1934, and
2,573
2,361
3,843
13,165
43,218
3,800
17,950
56.463
5,286
18,868
4,725
279,041 280,502 285,285 182,651 184,157 180.604
Total
THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
Unadjusted for seasonal variation (1913= 100)
Feb. 19 1935
2,223
1,682
3,732
12,823
42,721
3,913
18,673
55,105
5,365
19,404
4,701
1935
1934
1933
2,170,471
598,164
592,560
2,183,081
565,401
573,898
1,924,208
486,059
504,663
3.361.195
3.322,380
2.914.930
In the following table we undertake to show also the loadings for separate roads and systems for the week ended
Feb. 9 1935. During this period a total of 73 roads showed
increases when compared with the corresponding week last
year. The most important of these roads which showed
increases were the Pennsylvania System, the Chesapeake &
Ohio RR., the Illinois Central System, the Southern Pacific
R.R. (Pacific Lines), the Baltimore & Ohio RR., the Chicago,
Milwaukee, St. Paul & Pacific Ry., the Atchison Topeka
Santa Fe System and the Erie RR.
1218
Financial Chronicle
Feb. 23 1935
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED FEB. 9
23,444
34,505
29,182
4,720
9,020
10,069
152
1,672
8,282
1,780
17.406
2,005
347
176
7,221
6,352
14.322
1,890
1,250
6,300
44
28,958
1,997
19
196
6,079
5,828
12,886
1,617
1,043
6,116
30
28,426
1,922
18
224
55,629
68,549
62.189
5,574
9.713
12,931
142
1,984
8,871
2,097
19,198
2,260
443
362
495
1.278
6,941
20
178
263
2,091
3.601
6,547
4,283
3,587
4,633
3.685
1,191
4,810
3,049
M00.,00M00M.I.MM0...0
N
1.0[....,4 0M00MMt-oor,
..c0,
546
1.279
7,773
23
228
317
3,325
3.944
7,831
4,264
3,800
5,286
5,164
1.181
4,725
3.423
01 4.6.6.6.6-4a
57,981
...N0W0NMert-0[
,
.00
63.575
1
Total
Grand:total Eastern District...
I/
Allegheny DistrictAkron Canton & Youngstown__
Baltimore & Ohio
Bessemer & Lake Erie
Buffalo Creek & Gauley
Cambria & Indiana
Central RR. of New Jersey
Cornwall
Cumberland & Pennsylvania
Ligonier Valley
Long Island
b Penn-Reading Seashore Lines
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
Total
Pocahontas DistrictChesapeake & Ohio
Norfolk & Western
Norfolk & Portsmouth Belt Line
Virginian
Total
Southern DistrictGroup AAtlantic Coast Line
Clinchfield
Charleston & Western Carolina_
Durham & Southern •
Gainesville Midland
Norfolk Southern
Piedmont & Northern
Richmond Fred. & Potomac...
Southern Air Line
Southern System
Winston-Salem Southbound
53,109
46,652
40,188
70.576
62.991
145,739
131,551
119.281
173,630
154,362
494
27,124
1,241
271
1,245
5.598
0
373
197
807
1,045
56,463
13,448
8,769
98
,033
396
26,001
1,381
286
1,086
4,963
6
406
199
674
998
52,133
14,401
5,629
103
3,121
233
21.811
725
222
a
5.645
2
255
211
817
903
48,722
10,627
3,019
75
2.464
801
14,050
2,040
10
10
11,462
66
21
11
3,557
1,416
35,755
15,407
1,491
1
6.123
736
12,460
975
6
16
10,233
46
16
12
2,816
1,466
30,331
13,089
1,108
0
5,125
120.209
_
111,783
93.731
92,221
78,435
21,412
17,950
1,085
3.713
21,296
18,197
950
3,598
20,584
15.580
688
4.033
6,439
3,969
1,259
635
6,706
3,564
1,076
630
44,160
44,041
40,885
12,302
11,976
8,268
1,141
1313
140
f41
958
459
326
6.795
18,444
129
9,162
1,277
360
140
50
1,108
479
302
7,499
20,052
135
7,275
898
293
133
39
1,355
452
253
6,250
19,227
145
4,727
1,529
948
248
85
1,081
893
2,944
3,526
11,739
688
4,905
1,623
1,054
288
111
1,184
959
2,748
3,798
12,762
649
Total
Grand total Southern District__
Northwestern DistrictBelt Ry. of Chicago
Chicago & North Western
Chicago Great Western
Chicago Milw. St. P.& Pacific_
Chicago St. P. Minn. & Omaha
Duluth Missabe & Northern...
Duluth South Shore & Atlantic.
Elgin Joliet dr Eastern
Ft. Dodge Des Moines dr South
Great Northern
Green Bay & Western
Lake Superior & Ishpeming_ _ _
Minneapolis & St. Louis
Minn.St. Paul & S.S. M
Northern Pacific
Spokane International •
Spokane Portland & Seattle
182
696
675
3,555
240
1,030
906
332
1,192
18,275
19,357
99
139
1,700
2,896
362
150
646
1,064
2,431
239
694
1,389
362
716
9,044
3,795
341
236
1,344
1,861
731
50,674
51,636
47,987
25,043
25,208
87,678
92,200
82,307
53,451
55.189
734
13,879
2,290
16,631
3,635
555
483
3.617
253
7,833
527
265
1,661
4,047
7,405
75
1,026
1,754
9,097
2,607
6,826
2.738
107
299
5,781
169
2,935
386
96
1,651
2,138
2,432
199
860
263
767
1,061
2,517
226
683
1,328
558
715
8,331
3,822
510
236
1,334
2,227
630
w
.0.0.
c4Cb."ww.'000
26,918
178
627
653
3,467
221
776
630
296
1,239
18.922
18,734
168
132
1.611
2,655
365
WOW4....W.CW1,400VCA
29,055
Group BAlabama Tennessee & Northern
Atlanta BirminghamK.Coast__
Atl. & W.P.-W.,RR. of Ala_
Central of Georgia
Columbus dr,Greenville
Florida East.Coa.st
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Macon Dublin &,Savannah.__
Mississippi,Central
Mobile dr Ohio
Nashville Chattanooga dr St. L.
Tennessee Central
1934
Total
Central Western DistrictAtch. Top.& Sante Fe System_
Alton
Bingham & Garfield
Chicago Burlington dr Quincy
Chicago & Illinois Midland
Chicago Rock Island & Pacific_
Chicago & Eastern Illinois
Colorado & Southern
Denver & Rio Grande Western_
Denver & Salt Lake
Fort Worth & Denver City
Illinois Terminal
North Western Pacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
Toledo Peoria & Western
Union Pacific System
Utah
Western Pacific
Total
Southwestern DIstrictAlton & Southern
Burlington-Rock Island
Fort Smith & Western
Gulf Coast Lines
International-Great Northern..
Kansas Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Louisiana Arkansas & Texas.__
Litchfield & Madison
Midland Valley
Missouri & North Arkansas__..
Missouri-Kansas-Texas Lines_
Missouri Pacific
Natchez & Southern
Quanah Acme & Pacific
St. Louis-San Francisco
St. Louis Southwestern
Texas & New Orleans
Texas & Pacific
Terminal RR. of St. Louts
_
Weatherford M. W.& N.
Wichita Falls dr Southern
67.604
64,943
50.704
39.975
33.096
16,716
2,536
227
13,214
1,647
9,810
3,029
902
2,267
400
1.011
1,837
592
57
13.585
159
254
10,817
454
1,075
16,329
2,235
177
14,342
1,665
10,160
3,006
1.239
2,126
181
986
1,935
503
101
12,459
232
371
11,373
296
945
16,353
2,451
194
12.998
1,436
9,259
3,013
1,070
2,596
617
1,003
1,667
310
56
9,847
225
232
9,068
1,115
917
4,654
2.067
38
6,828
960
6.953
2,063
949
1,792
3
899
1,043
223
28
3,395
196
919
6.034
5
1,210
4.220
1,588
21
5,489
558
5,797
1,795
689
1,611
10
901
991
260
63
3,083
245
858
5,250
5
1.011
80,589
80,661
74,427
40,249
34,343
143
149
183
2,573
2.361
119
1,483
1,057
124
489
681
125
3,843
13,165
39
83
6,613
1,964
5,283
4,178
1,762
20
139
124
150
213
2,886
2,900
163
1,493
1,290
171
408
516
80
4,468
13,343
50
105
7,390
1,924
5,437
3,920
1,454
23
211
119
125
207
1,902
2,532
135
1,555
1.310
86
382
675
50
3,847
13,092
49
107
6,868
1,627
4,131
3,134
1,385
30
a
!
.
!
ww..w
-4.
.
.. w
!
...... ..14...-444.W.b...1.,
,o....o-4..-4-4too0.ww.0w-aw.
wwwwwwwwo..-40www.0.0.-40
230
3,998
9.049
2.176
2,483
10,302
944
1935
..
.
.
I .. vw.
10...ww.
441.1,,...0Ww44,
,.0440..0000..co.ca
l w.o.ww...ww-1.www
350
4,598
11,076
1.756
3.272
12,258
1,195
,
.. F,
.
00.
,P,P..0
OW1.w.C..coWc=0
1 0
..4..0004W.0Wm0m0W.
000D.ii.MW..40,
,
W0g.oW.0
1,440
2,743
6,629
537
2,268
9,333
494
1933
!
.
1,841
3,262
7.419
798
2,962
10,135
501
1934
„
ww..
2.886
3,060
8,084
993
3.652
9,858
522
1935
-4..C w
1934
Total Loads Received
from Connections
Total Revenue
Freight Loaded
Railroads
wa,00.0wNW00.WQ
0034,
1935
MNN
Group CAnn Arbor
Chicago Indianapolis & Louisv_
C. C. C. & St. Louis
Central Indiana •
Detroit & Mackinac
Detroit & Toledo Shore Line_
Detroit Toledo & Ironton
Grand /Trunk Western
Michigan Central
Monongahela
N.Y. Chicago & St. Louis
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia_
Wabash
Wheeling & Lake Erie
1933
00.W
Total
1934
1.00.0.
0WON..0..40w44Wm..
Total
Group BDelaware & Hudson
Delaware Lackawanna & West_
Erie
Lehigh & Hudson River
Lehigh & New England
Lehigh Valley
Montour
New York Central
New York Ontario & Western_
Ittsburgh & Shawmut
Pittsburgh Shawmut:dr North_
1935
14,
-4WwWW..00,
Eastern DistrictGroup ABangor & Aroostook
Boston & Albany
Boston & Maine
Central Vermont
Maine Central
N.Y.N.H.& Hartford
Rutland
Total Loads Received
from Conneatons
Total Revenue
Freight Loaded
Railroads
3,205
256
145
1.177
1,850
867
1,199
697
295
627
250
281
2,565
7,155
18
101
3,196
1.834
2,113
3,590
15.297
48
78
28,408
29,981
48,719
46,844
34,320
43.348
37.004
46.581
49,237
40,564
Total
•Previous figures. a Not available. b Pennsylvania-Reading Seashore Lines include the new consolidated lines of the West Jersey dr Seashore RR., former y part of
Pennsylvania RR.,and Atlantic City RR.,formerly part of Reading Co.
Total
United States Life Insurance Sales During January
37% Above January 1934
Every section of the United States reported substantial
increases during January in the amount of life insurance sold,
as compared with the same period for last year, according to
figures released Feb. 21 by the Life Insurance Sales Research
Bureau of Hartford, Conn. Taking the country as a whole
the month's business showed a 37% increase over Jan. 1934.
New business sold during the year ending Jan. 31 1935 was
13% ahead of business for the year ending Jan. 11 1934, the
Bureau's figures showed.
Moody's Daily Index of Staple Commodity Prices
Advances Solely on Strength of Hogs
Staple commodity prices, after a spirited advance on
Monday following the favorable decisions on the gold clause
cases, declined during the next three days on profit-taking
and liquidation, wiping out the gains in most instances.
Moody's Daily Index of Staple Commodity Prices, however,
advanced 0.5 points to 157.9, largely as the result of a sharp
advance in hog prices, which more than outweighed limited
net declines in a number of staples.
The gain in hog prices was aided to a negligible extent by
small net advances in sugar, silver, rubber and silk. Against
these five gains were seven declines, in scrap steel, corn,
hides, coffee, wool tops, cocoa and wheat, while three staples
were unchanged; i.e., copper, lead and cotton.
The movement of the Index number during the week, with
comparisons, is as follows:
155.6
Fri., Feb. 15
157.4 2 Weeks ago, Fob. 8
Sat.,
Mon.,
Tues.,
Wed.,
Thurs.,
Fri.,
Feb. 16
Feb. 18
Feb. 19
Feb. 20
Feb. 21
Feb. 22
157.1
158.8
158.7
158.4
157.9
holiday
Month ago
Jan. 21
156.6
Year ago,
138.8
Feb. 21
148.9
1933-111gh. July 18
Low
Feb. 4
78.7
1934-35 High, Jan. 8, 1935 -160.0
Low, Jan. 2, 1934____126.0
Increase of 1.1% Noted in Retail Prices of Food During
Two Weeks Ended Jan. 29-Index of United States
Department of Labor at Highest Level Since
May 15 1931
Retail prices of food advanced 1.1% during the two weeks'
period ended Jan. 29 1935, the Bureau of Labor Statistics
of the United States Department of Labor announced
Feb. 12. The current index, 119.8 (1913=400.0), is at
the highest point since May 15 1931, the Bureau said.
Of the 42 articles of food included in the index, 22 advanced
in price, 11 showed no change, and 9 declined in price.
The following is also from the Bureau's announcement of
Feb. 12:
Financial Chronicle
DATA FOR RECENT WEEKS
Week of-
1935
Weekly Data for Precious Years
in Millions of Kilowatt-Hours
1934
P. C.
Ch.ge
1,563,678,000
1,646,271,000
1,624.846.000
1,610,542,000
1,636.275,000
1,651.535,000
1,640,951,000
1.646.465.000
+6.7
+7.7
+9.4
+10.6
+7.7
+6.8
+7.3
____
1933
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.
5 _ _ _ 1,668,731,000
12_ _ _ 1,772,609,000
19.,, 1,778,273,000
26___ 1,781,666,000
2_ _.1,762,671,000
9_ _ _ 1,763.696,000
16,,, 1,760.562,000
23_
1932
1,426
1,495
1,484
1,470
1,455
1.483
1,470
1,426
1931
1930
001,00.0,0
INDEX NUMBERS OF RETAIL PRICES OF FOOD (1913=100.0)
1219
Arranged in tabular form the output in kilowatt-hours of
the light and power companies of recent weeks and by
months is as follows:
7.WWW-41001-.
141.41-1
Prices rose in four of the six groups of food items. Cereals showed
no change. Egg prices declined 0.3 of 1%.
Meat prices, increasing 2.3%, registered the greatest change. Prices
of all items in this group advanced with the exception of plate beef.
Dairy products advanced 1.8%. /Wish milk alone, of this group,
showed a decrease in price.
Prices of fruits and vegetables advanced 0.6 of 1%. Potato prices
remained unchanged. Prices of cabbage, canned corn, canned peas, and
beans with pork rose slightly. Bananas, oranges, raisins and onions
declined in price.
Miscellaneous foods registered a price advance of 0.9 of 1%. Prices of
fats and oils moved upward. Coffee and sugar prices remained unchanged.
Prices rose in each of the geographical divisions and in 49 of the 51
reporting cities. Jacksonville, of the South Altantic group, and Memphis,
of the South Central group, reported price declines of 0.9 and 0.3 of 1%,
respectively.
00 CCC CO CO CO COW CO
Volume 140
1929
1,542
1,734
1,737
1,717
1,728
1,726
1,718
1.699
DATA FOR RECENT MONTHS
1933
1930
Jan. 15 Oct. 23 July 31 Apr. 24 Jan. 30 Jan. 15 Jan. 15
Jan. 29 2 Weeks 3 Mos. 6 Mos. 9 Mos. 1 Year 2 Years 5 Years
Ago
Ago
Ago
Ago
Ago
Ago
Ago
110.4
149.0
120.2
101.6
80.9
116.0
014
107.3
144.0
112.6
99.0
68.1
130.5
RR 4
105.8
142.8
103.0
95.9
85.8
133.5
RR S
4No;nivic;c
115.4
151.8
126.4
105.4
109.0
108.4
CAA
0,-.00000M
119.8
151.3
135.4
114.4
108.7
108.3
99.3
WMCOMOMC,
:
All foods
Cereals
Meats
Dairy products
Eggs
Fruits A: vegs
Misc. foods _
155.4
162 9
183.6
138.6
160.5
187.2
190 4
Prices used in constructing the weighted ndex are based upon reports
from all types of retail food dealers in 51 c'ties and cover quotations on
42 important food items. The index is based on the average of 1913 as
100.0. The weights given to the various food items used in constructing
the index are based on the expenditures of wage earners and lower-salaried
workers.
The following table shows the percentages of price changes for individual
commodities covered by the Bureau, Jan. 29 1935, compared with Jan. 15
and Jan. 2 1935, Jan. 10 1934. Jan. 15 1933, and Jan. 15 1930.
CHANGES IN RETAIL FOOD PRICES, JAN. 29 1935 BY COMMODITIES
Percent Change-Jan. 29 Compared With1935
1934
1933
1930
Jan. 30
(1 Year
Ago)
Jan, 15
(2 Years
Ago)
Jan. 15
(5 Years
Ago)
+3.4
+13.3
+26.3
-22.9
+0.1
0.0
+2.4
+2.0
0.0
0.0
-1.2
+1.4
-0.4
+4.3
+9.9
+5.0
+4.5
+0.9
-1.3
+1.0
-1.3
-1.0
-0,9
-1.0
0.0
+1.4
+19.4
-1.6
0.0
+0.6
0.0
0.0
+9.5
-9.9
+15.7
+15.0
+14.6
+13.7
+6.0
+15.4
+6.2
+4.5
+12.0
+1.8
0.0
+9.3
+7.4
-0.5
-1.8
+0.1
+3.5
+6.0
+5.1
-3.3
+13.6
+8.5
+1.9
+6.6
+13.6
0.0
+19.3
+51.7
+12.4
+2.9
+7.3
+26.7
-18.9
-3.9
+2.9
+3.6
+4.3
+5.2
+2.0
-17.8
+13.5
-12.8
+8.7
-33.3
-1.0
+31.5
+4.7
+33.0
+33.8
+31.4
+29.8
+16.2
+25.1
+51.1
+31.0
+50.3
+14.8
+5.7
+88.3
+37.0
-0.5
0.0
+6.7
+8.4
+34.7
+29.7
+2.4
+42.9
+75.9
+7.5
+35.0
+31.6
+8.0
+22.6
+48.9
+13.5
+6.1
+13.5
+15.8
+20.5
-3.0
+5.5
+28.1
+2.1
+41.9
+6.1
+27.6
+26.0
+51.9
+38.9
+20.0
+19.8
+35.6
+1.3
+26.7
+26.9
+29.3
+26.6
+23.8
+30.9
+67.3
+43.3
+81.2
+15.1
-2.8
+118.5
+29.9
+8.8
+5.9
+8.6
+10.7
-7.1
-6.7
-8.4
-7.4
0.0
-19.4
-15.6
-14.8
-5.6
-17.7
-15.5
-32.4
-25.5
--16.9
-32.3
-42.1
-30.5
-38.9
-38.0
-21.1
-52.0
-23.1
-27.5
-18.7
-19.6
+6.1
-53.8
-18.3
-26.3
-47.5
-36.4
-25.9
-26.1
-25.3
-30.3
-28.1
-15.6
-22.6
-15.3
-23.2
-36.3
+2.9
-34.1
-33.9
-18.2
-6.5
-15.5
Commodities
Jan. 15
(2 1Veeks
Ago)
All foods
+1 -1-1I
II+11++++ +1
++
++++++++++.++
NO0OWNOOONNVIWZNOOONON..0.-,Or..p
• oppopr.r-.000.-.00.
+1.1
Cereals
Bread, white
Cornflakes
Cornmeal
Flour, wheat
Macaroni
Rice
Rolled oats
Wheat cereal
Dairy products
Butter
Cheese
Milk, evaporated
Milk,fresh
Eggs
Fruits and vegetables_ _ _
Bananas
Oranges
Prunes
Raisins
Beans, navy
Beans with pork, end._
Cabbage
Corn, canned
Onions
Peas,canned
Potatoes, white
Tomatoes,canned_ _
Meats
Beef-Chuck roast_..
Plate beef
Rib roast
Round steak
Sirloin steak
Hens
Lamb.leg of
Pork-Bacon, sliced
Ham,sliced
Pork chops
Miscellaneous foods
Coffee
Lard, pure
Oleomargarine
Salmon, red, canned
Sugar
Tea
Vegetable lard sub _ _
Jan. 2
(4 Weeks
Ago)
Electric Production for Latest Week Below Previous
Week but 7.3% Above Like Week of 1934
The Edison Electric Institute in its weekly statement
discloses that the production of electricity by the electric
light and power industry of the United States for the week
ended Feb. 16 1935 totaled 1,760,562,000 kwh. Total
output for the latest week indicated a gain of 7.3% over
the corresponding week of 1934, when output totaled 1,640,951,000 kwh.
Electric output during the week ended Feb. 9 1935 totaled
1,763,696,000 kwh. This was a gain of 6.8% over the
1,651,535,000 kwh. produced during the week ended Feb. 10
1934. The Institute's statement follows:
PERCENTAGE OVER 1934
Major Geographic
Divisions
Week Ended
Feb. 16 1935
Week Ended
Feb. 9 1935
Week Ended
Feb. 2 1935
Week Ended
Jan, 26 1935
New England
Middle Atlantic
Central Industrial_ _ _ _
West Central
Southern States
Rocky Mountain
Pacific Coast
2.6
3.2
9.0
7.4
7.1
15.6
4.9
2.8
4.6
8.8
9.1
7.9
15.2
4.7
5.5
6.4
9.5
8.5
8.9
10.8
2.7
8.0
8.6
14.2
7.4
10.3
13.6
6.5
Total United States_
7.3
6.8
7.7
10.6
Month of-
1934
1933
%
Change
1932
1931
January ____ 7,131,158,000 6,480,897,000 +10.0 7,011,736,000 7,435,782,000
February _ __ 6,608,356,000 5,835,263,000 +13.2 6,494,091,000 6,678,915,000
March
7,198,232,000 6,182,281,000 +16.4 6,771,684,000 7,370,687,000
April
6,978,419,000 6,024,855,000 +15.8 6,294,302,000 7,184,514,000
May
7,249,732,000 6,532,686,000 +11.0 6,219,554,000 7,180,210,000
June
7,056,116,000 6,809,440,000
+3.6 6,130,077,000 7,070,729,000
July
7,116,261,000 7,058,600,000 +0.8 6,112,175,000 7,286,576.000
August
7,309,575,000 7,218,678,000
+1.3 6,310,667,000 7,166.086,000
September_ _ 6,832,260,000 6,931,652,000 -1.4 6,317,733,000 7,099,421,000
October
7.384,922,000 7,094,412,000 +4.1 6,633,865,000 7,331,380.000
November _ _ 7,160,756,000 6,831,573,000
+4.8 6,507,804,000 6,971,644.000
December
7,538,337,000 7,009,164,000
+7.5 6.638,424,000 7,288,025,000
Total
85,564,124.000 80,009,501,000
+6.9 77.442.112.00086,063.069,000
Note-The monthly figures shown above are based on reports covering approximately 92% of the electric light and power industry and the weekly figures are
based on about 70%.
National Fertilizer Association Reports Continued
Increase in Wholesale Commodity Price Average
Advances During Week of Feb. 16
Wholesale commodity prices again moved upward during
the week of Feb. 16, according to the index of the National
Fertilizer Association. The rise which occurred was sufficient to advance the index three points to 73.2, the highest
point reached in the upward movement which has been in
progress during the past two years. The index last week
was 9.4% above a year ago and 40.1% above the depression
low point which was reached in the week of March 4 1933.
The index a week ago was 77.9; a month ago, 77.1, and a
year ago, 71.5, based on the 1926-1928 average as 100.
In announcing the foregoing on Feb. 18 the Association
further stated:
The rise in commodity prices last week was due in large part to a continued upward movement in agricultural prices. The fats and oils group
again advanced, continuing the sharp rise which has been in progress for
several months, and there were small advances in the foods and building
materials groups. Declines occurred in mixed fertilizers, metals, automobiles and miscellaneous commodities. The other six groups were not
affected by price changes last week.
The rise in the grains, feeds and livestock group was the result of higher
prices for all grains and livestock; the only item in this group to decline
was linseed meal, while 13 commodities advanced. The trend of foodstuff
prices was mixed last week with nine items advancing and six declining;
milk, sugar, pork, and flour were among the commodities which rose in
price while eggs, bread and potatoes declined. The rise in the fats and
oils group was due to. higher quotations for lard and butter as well as for
vegetable oils. An advance in the price of glass caused a slight rise in
the building materials group. The small decline in the metals group was
the result of lower tin prices more than counterbalancing slightly higher
quotations for lead ans silver. There was no net change in the textile
group as the rise in the prices of cotton, burlap and silk was offset by a
substantial decline in woolen yarn prices. Last week 40 commodities
advanced and 13 declined; in the preceding week there were 18 advances
and 26 declines.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
-100)
PRICES (1926-1928=
Per Cent
Each Group
Bears to the
Total hider
Group
Latest
Week
Feb. 16
1935
Preceding
Week
Month
Ago
Year
Apo
72.9
68.0
54.7
72.4
69.4
90.5
79.2
78.3
85.0
54.9
93.1
67.5
75.8
92.4
71 5
23.2
16.0
12.8
10.1
8.5
6.7
6.6
6.2
4.0
3.8
1.0
.4
.4
.3
Foods
Fuel
Grains, feeds and livestock
Textiles
Miscellaneous commodities
Automobiles
Building materials
Metals
House-furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizers
Agricultural implements
78.7
68.9
88.6
69.1
69.7
87.8
78.9
81.7
85.4
84.4
04.0
65.8
76.1
100.6
76.8
69.6
83.9
69.7
70.1
88.3
78.8
81.9
85.4
76.0
94.0
65.7
76.5
100.6
100.0
All groups combined__ _
75.2
77.9
77.1
00100100
1934
o...40,,0100,010101000.4
00101k COCCI
COlt
1935
United States Department of Commerce Reports Increase of 14% in 1934 Retail Sales as Compared
with 1933
Retail sales for the United States are estimated at $28,548,000,000 for 1934 as compared with $25,037,000,000 for 1933,
an increase of 14%, according to a statement made public
Feb. 20 by C. T. Murchison, Director of the Bureau of
Foreign and Domestic Commerce, United States Department
of Commerce, based upon estimates prepared by Nelson A.
Miller, Chief of the Retail Trade Section, Marketing Re-.
1220
Financial Chronicle
search and Service Division of the Bureau. The following
is also from the statement:
Based upon the most reliable current available statistics, constructed
trade by trade to arrive at a United States total, each kind of business
substantially increased its sales in 1934 over 1933. While the general
trend of retail sales in 1934 was upward, the rate of increase varied greatly
among the different trades.
For example, the catalogue sales of mail order houses ranked first with
a 25% increase, the automotive group was second-ranking with a 22%
increase, with restaurants, apparel stores, farmers' supply and country
general stores, and furniture and household stores ranking next with an
Increase of 18% each. Lowest increases were registered for 1934 in the
food group with 7% and variety stores with 9%,according to the Bureau's
compilation.
Total retail sales in 1934 recovered to a point where they were 58%
of the 1929 total. They had reached a low point during the depression in
1933 when they were but 51% of the 1929 total. The low point was reached
In 1933 in all groups with the exception of farmers' supply and country
general stores, mail order business, variety stores, automotive group, and
furniture and household stores.
These groups reached the low point in 1932 and each of them showed an
Increase in 1933. The recovery in 1933 of these five groups laid the foundation for the general increase in 1934 and was responsible for the fact that
total sales in 1933 were but 2% below those of 1932.
The retail groups hit hardest during the depression were the furniture
and household group with a low point in 1932 of 32% of the 1929 sales.
jewelry stores with a low point in 1933 of 33%,farmers' supply and country
general stores with a low point in 1932 of 33%, and the lumber, building,
and hardware group with a low point in 1933 of 35% of the 1929 sales.
The groups least affected by the depression were variety stores, with a
low point of 73% of their 1929 sales, restaurants and eating places, 67%
of their 1929 sales, and second-hand stores with 71% of their 1929 sales.
Of these groups, variety stores, largely composed of chain organizations,
lost less than any during the depression. A part of their lost ground had
been recovered in 1933 when their sales registered an increase over 1932.
Of particular interest in the estimates is the showing of restaurants. The
18% increase in sales in 1934 was due largely to repeal which, aside from
adding dollars to the business of established concerns, was responsible for
a large number of new restaurants, beer parlors, and similar establishments.
It is also interesting to note that the automotive group ranked second
throughout this entire period.
ESTIMATED TOTAL NET SALES OF RETAILERS, BY KINDS OF
BUSINESS, 1929 TO 1934, INCLUSIVE.
(Millions of Dollars)
Kind of Business
Food group
Restaurants & eating places
Farmers' supply-Country general
stores
Department, dry goods & other
general merchandise stores
Mail order, catalogue only
Variety stores
Apparel group
Automotive group
Furniture & household group
Lumber, bldg., & hardware group_
Cigar stores
Drug stores
Jewelry stores
Second-hand stores
Other retail stores
1929 1930
Actual Est.
1931
Est.
1934
% Of
1932 1933 1934 Total
Est. Actual Est. Sales
10,837 10,287 8,994 7,261 6,793 7,269 25.5
2,125 2,061 1,934 1,636 1,430 1,687 5.9
3,890 2,830 2,028 1,218 1,561 1,842
5,093
447
904
4,241
9,616
2,755
3,846
410
1,690
536
148
2,777
4,685
349
832
3,920
7,800
2,200
3,110
353
1,554
381
137
2,350
4,176
259
787
3,496
6,000
1,618
2,006
314
1,438
301
123
1,940
3,208
201
660
2,331
3,843
895
1,389
225
1,182
188
112
1,248
2,993
220
678
1,923
4,419
959
1,343
190
1,066
175
105
1,182
6.5
3,352 11.7
275 1.0
742 2.8
2,269 7.9
5,391 18.9
1,132 4.0
1,544 5.4
209 0.7
1,173 4.1
201 0.7
115 0.4
1,347 4.7
49,115 42,849 35.414 25,597 25,037 28,548 100.0
• 1929 figures are actual data taken from the census o retail distribution. 1933
data
taken
from
the 1933 census of American business. The
figures are actual
years 1930, 1931, 1932, 1934, are estimates based on trends of currently published
statistics.
Total
Recession in Business Activity During. First Half of
February Reported by National Industrial Conference Board-Follows Improvement in January
Business conditions showed further improvement in
January, but during the first half of February the upward
trend was interrupted and some recession developed, according to the regular monthly business survey of the National
Industrial Conference Board, issued Feb. 21. The survey
also reported in part:
Continued expansion of motor production was the most significant single
development in the business situation during January. The automobile
industry registered the highest record of motor production of any January
except that in 1926 and 1929. Output was 87% greater than in January
last year, 65% larger than in December 1934. and 74% above the five
year average for January 1930-1934. . . .
Primarily as a result of automotive requirements, steel and iron production also showed marked January gains-the output of steel ingot being
greater than for any January since 1930. Compared with production in
January 1934, current output is 43.8% higher. Steel operation advanced
to 47.7% of capacity in January 1935, from 35.3% in December 1934, and
33.2% in January last year.
Distribution and trade showed a slight improvement over January of
last year. Retail trade, as shown by the volume of department store sales,
was 1.4% higher during January 1935, than in January 1934. The dollar
value of department store sales registered a decline under December greater
than the usual seasonal drop. fotal carloadings rose 5.6% in January
1935. over December 1934. . . .
0 Commodity prices at wholesale advanced 2.2% In January 1935, over
the preceding month, and 8.9% over January 1934.
Retail food prices show a sharp rise since mid-December 1934, and have
reached a level higher than any since May 1931. Food prices have been
advancing since Dec. 18 1934. On Jan. 29 1935, the index reached 119.8.
The sharp upturn was due mainly to a substantial rise in the price of
meats. . . .
Sales of Electricity to Ultimate Consumers During 1934
Rose 7.6%-Revenue Gained 3.6%
The following statistics covering 100% of the electric
light and power industry were released on Feb. 18 by the
Edison Electric Institute:
Feb. 23 1935
SOURCE AND DISPOSAL OF ENERGY AND SALES TO ULTIMATE
CONSUMERS
Month of December
•
1934
x Kilowatt-hours Generated (net)By fuel
By water power
P. C.
Change
1933
4,552,614,000 4,433,690,000 +2.7
2,929,460,000 2,485,360,000 +17.9
Total kilowatt-hours generated
Additions to SupplyEnergy purchased from other sources
Net international imports
7,482,074,000 6,919,050,000
Total
Deductions from SupplyEnergy used in electric railway departments
Energy used in electric & other departments
Total
Total energy for distribution
Energy lost in transmission, distribution, &c.
Kilowatt-hours sold to ultimate consumers
Sales to Ultimate Consumers (Ktoh.)Domestic service
Commercial-Small light and power (retail)
Large light and power (wholesale)
Municipal street lighting
Railroads-Street and interurban
Electrified steam
Municipal and miscellaneous
i. .,
Total sales to ultimate consumers
Total revenue from ultimate consumers _ _
+8.1
156,772,000
76,433,000
195,387,000 -19.8
69,404,000 +10.1
233,205,000
264,791,000 -11.9
61,168,000
115,774,000
65,028,000
109,649,000
-5.9
+5.6
174,677,000
176,942,000
7,538,337,000 7,009,164,000
1.412,230,000 1,318,438,000
6,126,107,000 5,690,726,000
+1.3
+7.5
+7.1
+7.7
1,223,762,000 1,147,047,000 +6.7
1,192,323,000 1,137,914,000 +4.8
2,969,462,000 2,661,895,000 +11.6
205,916,000
212,393,000 -3.0
387,266,000 +7.9
417,796,000
63,127,000 +1.9
64,347,000
81,084,000 -35.3
52,501,000
6,126,107,000 5,690,726,000
$163,806,700 $156,127,100
+7.7
+4.9
Year Ended Dec. 31
x Kilowatt-hours Generated (net)By fuel
By water power
Total kilowatt-hours generated
Additione to SupplyEnergy purchased from other sources
Net international imports
P. C.
Change
1933
1934
..
53,291,068.00047,476.277.000 +12.2
31,241,055,000 31,782,810,000 -1.7
84,532,153,000 79,259,087,000
+6.7
2,182,228,000 2,048,985,000 +5.8
605,852,000 +45.7
882,877,000
Total
3,045,103,000 2,652,837,000 +14.8
Deductions from Supply698,815,000 -8.6
Energy used in electric railway departments652,523,000
Energy used in electric and other depts
1,360,609,000 1,203,808,000 +13.0
+5.8
+6.9
+3.7
+7.8
Total
2,013,132,000 1,902,423,000
Total energy for distribution
85,564,124,000 80,009,501,000
Energy lost in transmission, distribution. &o. 14,782,344,000 14,255,893,000
Kilowatt-hours sold to ultimate consumers- 70,781,780,000 85,753.808,000
x Number of Customers (Avge.for Year),
. Domestic
19,800,172
20,265,890
Commercial-Small light and power (retail)
• 3,761,102
3,705,712
Large light and power (wholesale)
528,570
526,550
Municipal street lighting
37,166
38,377
Street and interurban railways
637
I
637
Electrified steam railroads
.1 27
III 27 '
Municipal and miscellaneous
: 28,752 1
29,379
+2.4
+0.9
-0.4
--------.
Total number of ultimate consumers
24,067,053
24,565,945
Kilowatt-hours Sold to Ultimate Consumers
Domestic service
12,797,635,000 11,960.256,000
Commercial-Small light and power (retail) 13,150,738,000 12,474,822,000
Large light and power (wholesale)
36,918,569,000 33,722,373,000
Municipal street lighting
2,203,484,000 2,213,007,000
Street and interurban railways
4,352,119,000 4,003,876,000
Electrified steam railroads
702,664,000
661,387,000
Municipal and miscellaneous
717,887,000
656,571,000
+7.0
+5.4
+9.5
-0.4
+8.7
+6.2
-8.5
Total to ultimate consumers
70,781,780,000 65,753,608,000
Revenue from Ultimate ConsumersDomesticservice
656,570,100
677,697,300
Commercial-Small light and power (retail)
499,684,400
511,681,700
Large light and power (wholesale)
465,190,800
495,657.100
Municipal street lighting
94,269,500
92,984,400
Street and interurban railways
36,358,900
37,838,400
Electrified steam railroads
6.725,800
6,549,900
Municipal and miscellaneous
14,792,000
14,461,300
+3.2
+2.4
+6.5
-1.4
+4.1
+2.7
-2.2
Total from ultimate consumers
$1,837,046,000 $1,773,415,600
Important FactorsPer cent of energy generated by water power
37%
40%
Average pounds of coal per kilowatt-hour_
1.45
1.45
Domestic Service (Residential Use)Avge.ann. consumption per customer (kwh.)
631
604
Average revenue per kilowatt-hour
5.30c
5.49c
Average monthly bill per domestic customer
$2.76
$2.79
+2.1
+7.6
+3.6
+4.5
-3•5
+1.1
Basic Information as of Dec. 31
1934
Generating capacity (kw.)-Steam
Water power
Internal combustion
1933
23,708,900 24,042,200
9,021,700 8,999,200
453,000
468,500
Total generating capacity In kilowatts
33,199,100 33,494,400
Number of CustomersFarms in Eastern area (included with domestic)
(534,203) (507,522)
Farms in Western area (included with commercial, large)_
(209,751) (206,036)
Domestic service
20,484,232 20,004,098
Commercial-Small light and power
3,727,478 3,697,324
527,656
Large light and power
526,853
88,437
All other ultimate consumers
69,974
Total ultimate consumers
24,808.537 24,295.515
x As reported by the United States Geological Survey w th deductions for certain
plants not considered electric light and power enterprises.
Valuation of Construction Contracts Awarded in
January
Construction awards in the 37 Eastern States during
January exceeded the total for December by about seven
million or almost.8% according to F. W. Dodge Corp.
The January total of $99,773,900 for all classes of construction, however, was only 53% as great as the total of $186,463,700 reported for Jan. 1934. In making comparisons
with a year ago it should be recalled that at that time contract-letting under the PWA program reached its peak.
Residental building contracts let in Jan. 1935. were 53% greater in aggregate value than in Dec. 1934; at the same time a gain of about 48% was
shown when contrasted with the total for Jan. 1934. Though these Percentage gains are gratifying the January dollar total of residental building
Financial Chronicle
Volume fill
contracts, amounting to $22,410,200 for the 37 Eastern States, was only
about 40% as great as In Jan. 1931, itself a depression period.
Commenting on the first quarter outlook for residental building the
Dodge bulletin says:
"For the first quarter of 1935 it is probable that residential building
awards will exceed the total of $57.706,800 for the corresponding period
of 1934 but it is not likely that the percentage gain for January can be
maintained for the quarter as a whole."
Non-residential building contracts awarded during January amounting
tp $32,958,400, failed to reach the total for Jan. 1934 but the volume was
greater than that reported for this class of building during December 1934.
Prospects for non-residential building for the initial quarter for 1935 are less
bright than in the residential field; in fact. the Dodge organization states
that "it is probable that the current quarter's contract total for nonresidential building types may not reach the volume shown for the first
quarter of 1934."
For public works and utilities of heavy engineering design the January
contract total amounted to $44,405.300 in contrast with $50,067,000 for
December and $113,737,200 for January of last year. For these classes
of construction the Dodge bulletin states "the nearby prospects are the
least bright. relatively."
CONSTRUCTION CONTRACTS AWARDED-37 STATES EAST OF THE
ROCKY MOUNTAINS
New Floor
No. of
Projeas Space (Sq. FL)
Month of January1935-Residential building
Non-residential building
Public works and utilities
Total construction
1934-Residential building
Non-residential building
Public works and utilities
Total construction
Valuation
2,900
2,526
1.032
5,527.500
5.622.400
95,200
$22,410,200
32,958,400
44.405.300
6.458
11,245,100
$99,773,900
1,730
3,418
2,580
3,943,400
5,599,600
155.700
$15,110,400
57.616.100
113,737,200
7,728
9,698,700
$186.463.700
NEW CONTEMPLATED WORK REPORTED-37 STATES EAST OF THE
ROCKY MOUNTAINS
1934
1935
No. of
Projects
Month of JanuaryResidential building
Non-residential building
Public works and utilities_ _
Total construction
Valuation
No. of
Projects
Valuation
3.732
3,451
1,471
$46,169,900
124,803.400
243,438,100
2,337
4.692
3,091
$52,100,600
150,454,900
273,339,100
8,654
$414,411,400
10.120
4475,894.60
Review of Industrial Situation in Illinois by Industry
by Illinois Department of Labor-Employment and
Payrolls Higher from November to December
"The number of persons employed in Illinois increased
1.0% in December as compared with November 1934," said
a review of the industrial situation in Illinois by industry,
by Esther Espenshade and Peter T. Swanish, of the Division
of Statistics and Research of the Illinois Department of
Labor, which added that "payrolls increased 2.3% during
this period. These percentages of change," the review said,
"are based on reports from 4,466 manufacturing and nonmanufacturing enterprises in Illinois. The number of workers employed by the 4,466 firms reached 458,026, and wages
paid averaged $10,022,052 weekly during December." The
review, issued Jan. 24, further said:
Manufacturing enterprises, totaling 2,002 in number, showed a decline
2 of 1% in the number employed, but an increase of 1.6% in the
1
of /
wages paid. Non-manufacturing businesses, 2,464 in number, employed more
workers, the increase being 3.3%. Wages paid increased at approximately
the same rate, 3.2%.
December 1934 Changes in Employment and Payrolls Compared with the
Average Eleven-year Change for Illinois Industries
The increases of 1.0% in employment and 2.3% in wages paid In December suggest an improved state of industrial activity. This positive change
is contrary to the usual movement at this time of the year. Records of the
Division of Statistics and Research covering the 11-year period 1922-1933
indicate that the average change from November to December is minus
0.3 of 1% in the number of workers carried on payrolls and minus 0.2 of 1%
2 of 1% in the number employed in
1
In wages paid. The decrease of /
manufacturing industries coincides with the 11-year average NovemberDecember change in this group; the plus 1.6% change in wages paid is
substantially above the average seasonal increase of 0.1 of 1%.
Changes in Employment and Wages Paid, According to Sex
Reports from 3,887 industries which showed the number employed by
sex indicated a decline in the number of male workers of 1.1% and an
increase in wages paid of 0.8 of 1%. The number of female workers
Increased 3.2% and wages paid to them rose 5.3%.
In the manufacturing group, with reports from 1,957 firms, the decline
in the number of male workers was 0.8 of 1%, while female workers showed
an increase of 0.5 of 1%. Total wages of male workers increased 1.4%
and wages received by women rose by 8.3% in December as compared
with November.
In the non-manufacturing enterprises, 1,930 firms gave employment to
1.7% fewer males, while the number of women workers rose 6.8% in the
same period. Total wages paid to male workers fell by 0.4 of 1%, while
those of women rose 7.5%.
Changes in Man-hours in December Compared with November 1934
Man-hours worked were reported by 3,064 firms. The total number of
hours worked increased 1.8% for both sexes combined. Total hours worked
by males increased 1.0% and those by women 5.2%. Man-hours in 1,376
non-manufacturing firms rose 2.6% as contrasted with an increase of 1.4%
In 1,688 firms in the manufacturing groups.
Average actual hours worked weekly by 312,850 wage earners in 3,064
industrial establishments increased from 36.6 in November to 37.1 in
December, or 1.4%. In manufacturing plants the average weekly hours
1221
of work increased from 35.1 to 35.6, or 1.4%; and in the non-manufacturing
enterprises the increase was 1.3%-from 39.3 to 39.8 hours.
Changes in Number Employed and Total Wages Paid in Nine Manufacturing
Industry Groups
The metals, machinery and conveyances group showed an increase of
0.6 of 1% in employment and a 2.6% rise in total wages paid. The 11-year
average for this group of industries exhibits a fall rather than a rise in
activity between November and December, the average changes being declines of 0.7 of 1% in the number employed and 1.6% in wages paid.
Within the group, the iron and steel industry showed a decline of 0.7 of
1% in employment but an increase of 7.7% in wages paid in December as
contrasted with November. This increase in wage payments is explained,
in the main, by the lengthening of working schedules; the combined reports
of 104 out of the 117 firms which reported employment and payrolls
exhibited an increase from 31.4 to 33.0 in average weekly hours of work.
The number employed and total wages paid rose sharply in the cars and
locomotives, the automobiles and accessories, and in the agricultural implements industries. A marked increase in the total man-hours of work is to
be noted in these industries. The cooking and heating apparatus and the
electrical apparatus firms reported substantial reductions in the number
employed, total wages paid, and in total hours worked.
The furs and leather goods group showed increases of 3.2% in employment and 5.9% in total wages paid. The increases occurred in the leather,
and the boots and shoes industries. An upward movement in this group
is typical at this time of the year.
The number of employed increased 2.2%, wages rose 5.4%, and total
man-hours increased 6.3% in the printing and paper goods group. Miscellaneous paper goods, job printing and the edition book binding industries
exhibited noticeable increases in both employment and total wages paid.
On the other hand, paper boxes, bags and tubes showed minus changes in
both employment and payrolls. Newspapers and periodicals, and lithographing and engraving showed declines in the number employed, but increases
in wages paid.
Clothing and millinery enterprises, which typically exhibit increased
activity in December, added 1.4% to the numbers employed and 4.5% to
payrolls. The increased activity was confined almost entirely to the men's
clothing industry, which added 6.8% to the number employed and increased
total wages paid by 19.7%. On the other hand, the women's clothing,
underwear and hats, as well as the men's shirts and furnishings industries,
dewed a decline in activity.
A reduction of 0.6 of 1% in the number employed and an increase of
10.0% in wages paid appeared in the textiles group. Within the group,
knit goods reduced the number employed and the wages paid out; miscellaneous textiles exhibited a slight downward change in employment but a
substantial increase in both man-hours and wages paid. Both total wages
paid and employment rose in the thread and twine, and the cotton and
woolen goods industries.
The food, beverages and tobacco group exhibited declines in activity.
Firms included in this classification showed a reduction of 3.4% in the
number employed and a decrease of 0.6 of 1% in payrolls. Every reporting industry in the group except cigars and other tobaccos concerns reduced
the number of workers, while slaughtering and meat packing, confectionery,
cigars and other tobaccos, and the artificial ice concerns increased wages
paid. Slaughtering and meat packing industries showed declines in employment of 2.4%, while increasing wages paid 0.3 of 1%. Miscellaneous
groceries, bread and bakery products, and beverages exhibited decreases both
in employment and wages paid.
In the chemicals, oils and paints group all reporting industries showed a
decrease in employment except miscellaneous chemicals, and all curtailed
payrolls except drugs and chemicals. This group of industries, which
usually experiences a slight increase in activity at this season, reported
0.8 of 1% fewer workers and 1.4% smaller payrolls.
The numbers employed and total wages paid declined in the stone, clay
and glass group. The lime, cement and plaster, the brick, tile and pottery,
and the miscellaneous stone and minerals industries exhibited sharp declines
in both employment and wages paid. Typically, industries in this group
show declines in activity in December, but not as sharp as the current
decline of 13.3% in numbers employed and 18.1% in payrolls .
Although saw and planing mills, and the furniture and cabinet work
industries reported increased activity in December, the wood products
group as a whole showed a decline of 0.9 of 1% in employment and 0.3 of
1% in payrolls. This group usually exhibits a downward change in activity
during December.
Changes in the Number Employed and Total Wages Paid in Non-manufacturing Industries
Two of the five non-manufacturing industries, the wholesale and retail
trades, and coal mining, contributed to the increases of 8.3% in the number
employed and 3.2% in wages paid.
The wholesale and retail trade group, as a rule exhibiting increased
activity in December, reported gains in employment and total wages paid
of 11.9% and 10.0%. respectively. Every classification within this group
showed increased outlays for wages. Only the wholesale grocery class failed
to show an increase in employment. Department and chain stores, and
mail order houses, in particular, exhibited sharp increases in employment
and total wages paid, 24.0% and 5.6% in employment and 17.3% and
17.6% in total wages paid, respectively. This marked change in Illinois
was consistent with the reported improvement in the Christmas trade
throughout the country. Firms included under all other retail, reported
increases of 3.8% in the numbers employed and 2.1% in payrolls .
Thirty reporting coal mines showed an increase of 0.9 of 1% in employment and 21.8% in total wages paid in December.
The public utilities as a group decreased both the numbers employed
and the total wages paid by 1.8 and 0.8 of 1%, respectively. The water,
gas, light and power, the telephone, and the street and electric railways
industries all showed reductions in employment. Telephone companies
increased payrolls, while the other utilities showed decreases.
The services group, comprising hotels and restaurants, and laundering,
cleaning and dyeing establishments, reported a decline of 2.1% in employment and 1.4% in total wages paid. Hotels and restaurants showed a
decline of 2.0% in numbers employed and 1.3% in payrolls.
The Division of Highways of the Illinois Department of Public Works
and Buildings reported the employment of 15,996 men on road construction
in December, a reduction of 24.5% from the total of 21,191 employed In
November. The inclement weather during December was mainly responsible
for this reduction in road work; the number of workers on road work is
larger than usual at this season.
In December, 30 reports of wage rate increases, affecting 2,010 persons,
or 0.4 of 1% of all employees reported during the month, were received
by the Illinois Department of Labor. Seven forms reduced the wage rates
of 676 persons, or 0.1 of 1% of the employees reported during December.
1222
Financial Chronicle
Weekly earnings for both sexes combined averaged $21.88 for all industries; $24.31 for men and $14.85 for women. In the manufacturing industries average weekly earnings were $20.90 for both sexes combined, $23.01
for males and $13.85 for females. In the non-manufacturing industries
these earnings averaged $23.32 for both sexes, $27.35 for male and $16.06
for female workers.
Business Conditions in San Francisco Federal Reserve
District-Improvement in Industry and Trade
Noted in December-Review of Year
"Available measures of industry and trade in the Twelfth
(San Francisco) District improved considerably during
December, and in nearly all cases were higher than a year
earlier," states the Federal Reserve Bank of San Francisco.
"Output of petroleum, lumber and electric power tended
upward slightly, after seasonal adjustment," the bank said.
"Employment was maintained at the relatively high level
of other recent months. Department store sales expanded
more than seasonally in all reporting cities, except San
Francisco, where a substantial increase had taken place in
November."
In reviewing conditions in the San Francisco district during the entire year 1934, the bank said, in part:
Twelfth district business fluctuated during 1934 around averages of the
last half of 1933, following sharp recovery from the lowest point of the
depression reached in March 1933. On an annual basis, operations in practically all industries were considerably higher than in either 1933 or 1932,
and in some cases exceeded 1931 levels. All measures of trade continued
the upward movement begun in the preceding year, with improvement
especially evident in rural areas. Employment was larger than at any
time in three years.
Increased employment was particularly pronounced in industrial activities,
large gains over 1933 having been reported by nearly all States in the
district for both manufacturing and mining. There was some increase in
the number of workers at retail and wholesale establishments, but employment by public utilities was about the same as a year earlier. Average
weekly earnings of workers advanced during 1934, with the result that
total payrolls expanded more rapidly than employment. . . .
Department stores reported an increase in Estes over the precednig year
for the first time since 1929. This increase was especially marked in
agricultural centers. All lines of wholesale trade reported substantial
gains in sales in 1934 over 1933. . . .
Agricultural income was much larger in 1934 than in 1933. Sharply
higher prices for farm products and benefit and relief payments of the
Federal Government accounted for the entire increase, actual production
having been somewhat smaller than a year earlier or the average for other
recent years. Increased prices resulted largely from reduced surpluses and
short crops occasioned by drought conditions, which restricted production
more in other agricultural sections of the United States than in this
district. . . .
Business Conditions in Cleveland Federal Reserve
District-Expansion Noted in Industrial Activity
During December and First Three Weeks of January
The Federal Reserve Bank of Cleveland reports that industrial activity in the Fourth (Cleveland) District expanded
during December and the first three weeks of January,
raising "operations in some lines to levels reminiscent of
pre-depression periods." The Bank, in its "Monthly Business Review" of Jan. 31, also said in part:
While practically all industries shared In the upturn, the most pronounced rise was in the automobile field. After a satisfactory disposal
of dealers' 1934 stocks, production of 1935 models in early January was
at the highest rate for the season since 1930, following the best December
since 1928. This high rate of activity was very beneficial to many industries
In the Fourth District, and employment and payrolls improved more than
seasonally, according to reports. In this connection, however, it should be
remembered that last year the tool and die makers' strike delayed new
model production considerably.
Retail trade in January, particularly sales of more expensive articles
such as furniture, automobiles, &c.. was stimulated by the approach of the
effective date of the sales tax in Ohio, but this followed a greater-thanseasonal increase in December. The adjusted index of department store
sales rose four points, but stocks, after allowing for seasonal variations,
were little changed, though the dollar value at the year end was down
2% from the close of 1933.
Business Conditions in Minneapolis Federal Reserve
District-January Volume at Same Level as
December
The Federal Reserve Bank of Minneapolis, in its preliminary summary of agricultural and business conditions in
the Ninth (Minneapolis) District, stated that "the volume of
business in the District during January remained at the level
of December, aside from purely seasonal fluctuations," but
"continued to be larger than a year ago in most lines." Tile
Bank's summary, issued Feb. 16, also said in part:
The volume of retail trade in the District did not show as large an increase over January a year ago as earlier months had shown over corresponding months in the preceding year. Twenty-two city department
stores reported an increase of less than 34 of 1%. One hundred and ninetysix country general stores reported an increase of 4%. The largest increase
over January last year was reported by stores in northeastern Minnesota.
Decreases from last year's volume were reported by stores in central Minnesota and South Dakota.
Farm income in the District from seven Important items was 4% smaller
In January than in the same month last year. Those estimates do not
include Government relief, rental and benefit payments. The decrease
was chiefly caused by the small volume of grain marketings which more
than offset the higher prices received. Cash income from potatoes and
hogs was also moderately smaller in January than in the same month last
year. On the other hand,there was a 27% increase in the income from dairy
Feb. 23 1935
products, due entirely to higher prices for butter and milk. Prices of all
farm products, except potatoes, were higher in January than a year ago.
The price of butter increased from Deember to January for the first time
since 1918. Live stock prices increased sharply in January.
Ohio Employment During January Slightly Higher
than December According to Ohio State University
"The employment increase which has been in progress in
Ohio since September was continued into the first month of
the new year," stated the Bureau of Business Research, of
the Ohio State University, adding that "Ohio industrial
employment in January gained 0.1% from December." The
Bureau, on Feb. 8, further said:
This was in contrast with a usual seasonal decline of 2.4%. January
employment was 9.1% above January 1934. The slight January gain was
due entirely to the 2.1% increase in the manufacturing industries since
the non-manufacturing and construction industries showed DecemberJanuary declines. The 9.9% decline in non-manufacturing employment
in January from December was less than the average decline of 10.2%.
The 18.6% decline in construction employment was greater than seasonal.
Six of the 11 major manufacturing industry groups reported increases
In January, ranging from 0.2% in the stone, clay and glass industries to
7.3% in the textiles group. All of these increases were in contrast with
usual seasonal declines except in the vehicles group where the increase was
greater than average. Employment in the food products group declined
5.7% in January from December; in the other groups, the declines ranged
from 1% to 2%. January employment in all the major manufacturing
groups was greater than in January 1934.
Cost of Living of Wage Earners in January 1% Higher
than December, According to National Industrial
Conference Board
The cost of living of wage earners advanced 1% from
December 1934 to January 1935, according to the regular
monthly index computed by the National Industrial Conference Board. This rise, considerably higher than the
average seasonal gain, is principally due to a marked increase in food prices, the Board reports. The cost of living
as a whole in January was 5.3% higher than a year ago,
10.7% higher than in January 1933, but still 18.3% lower
than in January 1929. A summary of the Board's analysis
issued Feb. 18, stated:
Food prices rose 3.4% from December to January. This is an Increase
of 12.6% over January a year ago; a rise of 25% over January 1933; and a
decline of 23.3% from January 1929.
Rents increased only slightly, 0.1% from December to January. They
were 6.7% higher than in January 1934; 0.8% higher than in January, 1933:
but 27.3 lower than in January 1929.
Clothing prices declined 0.5% from December to January. Men's clothing fell off 0.4%. Women's clothing prices dropped 0.7%. Clothing prices
as a whole in January 1935 were 0.5% lower than in January 1934; 22.8%
higher than in January 1933 and 22.6% lower than in January 1929.
The fuel and light index was 0.5% lower in January 1935 than in December
1934.
Changes in the cost of gas and electricity are recorded in January and
July of each year. Since July 1934 the cost of gas and electricity fell 1.3%.
This is a decline of 4.0% since January 1933 and 7.2% since January 1929.
Coal prices in January of this year were 1.1% higher than in January
1934; 4.3% higher than in January 1933, and 8.2% lower than in January
1929.
The cost of sundries averaged exactly the same in January 1935 as in
December 1934. Since January 1934 there has been an increase of 1.2%
and since January 1933 an increase of 2.5%. Since January 1929 the cost
of sundries has declined 6.8%.
INDEXES OF THE COST OF LIVING OF WAGE-EARNERS
Item
•Food
Housing
Clothing
Men's
Women's
Fuel and light
Coal
GII8 and electricity
Sundries
Bela:Ire
Importance
In
Family
Budget
33
20
12
5
30
Index Numbers of
the Cost of tiring
Base, 1923=100
January
1935
81.1
66.9
76.9
80.4
73.4
87.1
85.8
89.8
93.0
Per Cent
Inc. 1+) or
Dec.(-)
from
Docember
Dec. 1934
1934
to Jan. 1935
78.4
66.8
77.3
80.7
73.9
87.5
85.8
91.0
93.0
+3.4
+0.1
-0.4
-0.7
-0.5
-11:5
Weighted average of all items__ .._
100
81.6
80.8
+1.0
Purchasing value of the dollar
122.5
123.8
-1.0
• Based on food price Indexes of the United Slates Bureau of Labor Statistics, as
of Jan. 15 1935, and average of Dec. 4 and Dec. 18 1934.
As to the purchasing value of the dollar it was stated:
The purchasing value of the dollar in January 1935, as reported by the
National Industrial Conference Board in its regular monthly index of the
cost of living, was.
1.0% lower than in December 1934.
9.7% lower than in January 1933.
22.4% higher than In January 1929
22.5% higher than the average for 1923
The figures upon which the foregoing percentages are based follow. The
purchasing power of the dollar was 122.5 cents in January 1935; 123.8 cents
In December 1931; 135.7 cents in January 1933; 100.1 cents in January
1929, and 100 cents in 1923.
Pennsylvania Factory Employment and Payrolls Dropped
Slightly from Mid-December to Mid-January According to Philadelphia Federal Reserve BankSmall Increase Noted in Payrolls in Delaware
Factories Although Employment Declined
The number of wage earners employed and the amount
of wages paid by Pennsylvania manufacturing industries in
the payroll period nearest to the middle of January showed a
Volume 140
Financial Chronicle
decline of less than 1% as compared with the same period in
December, according to indexes of the Federal Reserve Bank
of Philadelphia prepared from 2,148 reports of industries
which had on their rolls nearly 412,000 wage earners whose
weekly compensation amounted to more than $7,797,000.
Operating time, as measured by employee-hours actually
worked in about 90% of the reporting companies, showed
little change from the December level. The Philadelphia
Reserve Bank also had the following to say in an announcement issued Feb. 20:
The rate of change in January this year appears to have been more
favorable than that in the previous seven years, except for 1929 in the
case
of employment. It is quite usual for factory activity to slacken in
the
first part of January, owing largely to the prevailing year-end custom of
listing inventories and general overhauling of equipment. The interruptio
n
this year apparently has been less pronounced than in other years, as
indicated by productive activity in the latter part of January. . . .
An average factory wage earner about the middle of January worked
approximately 32.8 hours per week as compared with 33 hours
a month
before and 30.6 a year ago. Hourly earnings per worker amounted
to a
little over 57 cents, showing only a slight change from a month ago, but in
comparison with a year earlier they have continued almost 4% larger.
The January index of employment in Pennsylvania factories was
about
74, relative to the 1923-25 average as 100. or 9% higher than a year
ago.
The payroll index of 58 was 22% higher than in January 1934.
. . .
Employee-hours actually worked in January in the colliers of
30 companies showed a further gain of 10% as compared with the previous
month.
This upward trend in employment, earnings and working time, which
has
been in evidence for several months, reflects chiefly seasonal expansion
in
operations.
Current reports and census figures indicate that the anthracite
industry
as a whole in Pennsylvania employed about 124.400 workers about
the
middle of January, as compared with 121,800 one-month earlier and
126.800
a year ago. The amount of wages paid in January, however, was
19%
smaller this year than last. The trend of employment and payrolls
for
the last three years is indicated by the following indexes.
Prepared by the Department of Research and Statistics of Federal Reserve
Bank
of Philadelphia. 1923-25 Average equals 100.
As to employment in factories located in Delaware the
Bank had the following to say:
Delaware factories reported a slight drop in employment but
a small
increase in payrolls and employee-hours actually worked about the
middle
of January as compared with the previous month. The January
index
based on the number of wage earners was over 84% of the 1923-25 average
as against 86 a year ago. The payroll index was 62 as compared
with 61
In January 1934.
The following tables were also issued by the Bank:
FACTORY EMPLOYMENT AND PAYROLLS IN PENNSYLV
ANIA BY
INDUSTRIAL'AREAS
(Industrial areas are not restricted to corporate city limits but
comprise one or
more counties)
Prepared by the Department of Research and Statistics, Philadelphia
Federal
Reserve Bank from teports collected by this Bank in co-operation with
States Bureau of Labor Statistics and the Pennsylvania Departmentthe United
of Labor
and Industry •
Employment
Jan.
1935
Index
Payrolls
Per Cent
Change from
Jan.
1935
Jan. Index
1934
Employee-hrs.
Per Cent
Change from
January
Per Cent
Chancefrom
Dec.
Dec. Jan. Dec. Jan.
1934
1934 1934 1934 1934
Allentown-Lehigh (3 cos.) 75.4 +1.1 +6.3 .58.3 +1.3
+17.5 +2.7 +14.1
Altoona (2 counties)
79.7 -0.5 +10.8 63.2 -0.3
Cbambersburg(3counties, 72.7 -12.9 +14.8 57.8 -20.0 +48.7 -1.6 +25.3
+29.6
-17.1 +30.8
Clearfield (4 counties, _ _
71.3 -0.2 +7.2 51.9 +0.8 + 16.4 +0.1 +19.7
Erie (2 counties)
77.6 +2.3 +9.9 59.3 +3.6 +21.3 +3.2 +10.1
Harrisburg (3 counties)
76.0 +2.0 +12.6 55.6 +5.3
Johnstown (3 counties)... 85.2 +3.3 +6.9 68.5 +24.5 +18.8 +3.8 +12.0
+20.6 +24.6 +8.9
Kane-Oil City (5 counties) 57.7 +0.3 +10.7 43.9
-1.3 +18.3 -0.2 +15.6
Lancaster (1 county)
94.2 -1.1 +10.4 69.5 -2.2
Lewistown (3 counties)... 54.5 +3.4 +8.1 36.4 -1.4 +30.1 -2.1 +20.9
+3.7 +2.8 +1.4
Philadelphia (5 counties). 86.5 -1.8 +10.3 72.4 -2.9 +20.9
Pittsburgh (8 counties)... 65.5 -0.6 +8.3 56.4 +2.2 +28.5 -4.5 +14.3
+1.6 +20.4
Pottsville (2 counties)___. 102.0 -0.9 +0.8 69.9 -2.4 +14.2
-3.0 +4.0
Reading-Lebanon (2 cos.) 88.2 +1.3 +11.4 77.1 4 2.6
+38.2 +4.1 +38.0
Scranton (5 countles)
96.0 +7.1 +14.1 89.3 -2.2 +16.6 +2.0 +16.8
Sharon-New Castle(2 cos.) 55.6 -1.0 -0.9 39.6 -17.6 +0.8
-1.9 +3.4
Sunbury (4 counties) ___ . 65.3 +4.8 +21.8 55.1
+0.5 +47.3 4 0.3 +41.0
Wilkes-Barre (3 counties) 75.3 -0.9 +12.0 60.5 -3.0
+27.1 -0.3 +10.8
Williamsport (5 counties). 93.3 -2.3 +6.1 71.0 -2.7 +20.9
-2.0 +15.2
Wilmington (1 county)
80.1 -0.1 -1.5 66.3 +0.9 +1.5 +1.6 -3.3
York-Adams (2 counties). 69.6 -1.6 +21.7 69.8 -12.2 +37.7
-9.8 +23.7
FACTORY EMPLOYMENT AND PAYROLLS IN DELAWARE
-INDEXES
OF EMPLOYMENT AND PAYROLLS IN ALL MANUFACT
URING
INDUSTRIES
(Base Period: 1923-25=100)
Prepared by Dept. of Research & Statistics of Federal Reserve Bank of
Philadelphia
Employment
Indexes
1933
1934
1935
January
February
March
April
May
June
July
August
September
October
November
December
71.8
72.8
69.9
68.1
71.5
77.5
85.2
91.2
95.0
92.1
91.2
89.8
86.2
90.4
92.7
93.0
92.4
94.7
93.5
89.6
91.2
91.6
86.2
84.6
84.4
Average
81.3
90.5
Payrolls
1935
Compared
Indexes
with 1934
Per Cent 1933 1934 1935
-2.1
47.5
49.2
45.0
43 1
49.0
54.5
63.1
62.1
64.8
64.8
62.7
63.7
60.8
65.5
66.2
66.7
65.9
68.5
68.3
64.7
65.1
67.7
61.6
61.2
55.8
65.2
61.7
1935
Compared
with1934
Per Cent
+1.5
FACTORY EMPLOYMENT, PAYROLLS AND WORKING TIME
WARE-PERCENTAGE COMPARISON WITH PREVIOUSIN DELAMONTH
BY INDUSTRY
Prepared by Dept. of Research & Statistics of Federal Reserve Bank of
Philadelphia
No.
of
Plants
All manufacturing industries
Metal products
Transportation equipment
Textile products
Foods and tobacco
Stone, clay and glass products
Lumber products
Chemical products
Leather and rubber products
Paper and printing
•Based on reports from 47 plants.
Per Cent Change January 1935
Compared nith December 1934
Employment
Payrolls
Employeehours.
51
-0.2
+0.9
+1.6
9
5
3
7
4
4
5
8
6
+3.3
-13.3
+5.1
-2.7
-1.2
-7.1
-1.3
+1.4
+3.2
+6.5
-10.8
+4.9
-4.7
-16.5
-4.5
+2.7
+3.6
-1.5
+8.2
-10.4
+5.5
-3.5
-12.9
-3.5
+1.3
+3.9
-0.1
1223
Increases Noted from Mid-December to Mid-January
in Employment and Wages in Pennsylvania Anthracite Collieries
The number of workers on the rolls of Pennsylvania anthracite companies about the middle of January showed an
increase of 2% and wage disbursements nearly 10% as compared with December, according to indexes compiled by the
Federal Reserve Bank of Philadelphia from reports to the
Anthracite Institute by 34 companies employing some
87,200 workers whose weekly earnings amounted to approximately $2,328,000. Continuing, the Research Bank said:
Employment
Payrolls
1922
1933
1934
1935
1932
1933
1934
1935
January
February
March
April
May
June
July
August
September
October
November
December
74.2
69.3
71.7
68.1
65.1
51.5
43.2
47.8
54.4
62.1
61.0
60.6
51.1
57.2
53.1
50.3
42.0
38.5
42.7
46.4
55.2
55.3
69.4
53.0
62.3
61.4
65.7
56.6
62.0
56.0
52.2
48.2
55.4
56.9
59.0
59.8
61.1
51.5
48.0
51.3
60.4
48.6
31.4
29.0
34.6
39.4
56.0
42.7
47.1
36.3
47.7
40.9
31.3
25.2
28.8
32.0
39.0
50.9
51.6
4.01
37.2
59.4
55.2
69.2
43.3
53.7
44.7
35.4
33.3
39.4
40.4
42.8
43.9
48.1
Average
60.8
50.4
57.9
45.0
38.4
46.7
Petroleum and Its Products-House Passes Revised
Connally Bill-Inter-State Compact Ready for
Legislatures of Oil States-March Crude Oil Allowable Cut-Kingsbury Renamed to Co-ordination
Committee-Crude Oil Output Exceeds Federal
Allowable
Stricter control of crude oil production by Federal and
State Governments drew nearer this week as the House of
Representatives passed a revised version of the Connally
bill and the conference of Governors and representatives
of the major oil producing States approved a compact to
be submitted to the Legislatures of the various oil producing States.
A revised version of the Connally oil control was passed
by the House of Representatives Monday without a record
vote. The measure now is before the Senate, which passed
the original version, for its consideration. It is believed
likely that some time will pass before it is enacted by the
Senate as it has gone "into conference" so that differences
between the House and the Senate may be adjusted.
Only one amendment was added before the House passed
the bill. Representative Dies (D. Tex.) made a motion
that the bill be made effective immediately upon passage
by striking out a clause which would have made it inapplicable in the case of petroleum or petroleum products
moving in inter-State commerce on or before the fifth day
after enactment, which was adopted.
The quick approval of this amendment was attributed
in 'Washington dispatches to a telegram sent by W. F.
Weeks, Texas oil man, to the House Inter-State and Foreign
Commerce Committee. The wire stated that there is
approximately 4,500,000 barrels of "hot oil" now in storage
which it would be possible to move under the five-day
eeway allowed in the original bill.
"On our railroad sidings in the East Texas oil field and
adjacent thereto, there are 3,200 tank cars loaded with oil
and its products ready to move in inter-State commerce
when the railroad injunction is dissolved. Of the 2,423,000
barrels permitted to be shipped under the injunction granted
between Jan. 19 and Feb. 16, only 612,000 barrels actually
have moved as the Attorney-General dissolved the injunctio
n
in the higher court, but this leaves]1,811,000 barrels
of these
Illegal products held prior to Dec. 10 which are yet
to be
shipped," the telegram stated.
"Add to these items the over production of crude
and
refined products now in storage made from
illegal crude
since the dissolution of the Federal Tender Board on
Jan. 7,
made by 32 refineries using 53,500 barrels of illegal
crude
daily plus such unrefined crude as has gone
to storage,
makes a total of approximately 4,500,000 barrels
of illegal
crude oil and products in this field which the
Government
1224
can confiscate if the Connally bill does not allow the five-day
period in which they may be cleared.
"Railroads and inter-State pipe lines can get most of this
out of the field in any unrestricted five-day period. Very
few of these products could go into intra-State markets and
the Government should not assist this "hot oil" to market
by opening inter-State channels."
Representative Sauthoff (Frog. Wis.) offered an amendment to increase the penalty for violating the Act from
$2,000 to $5,000 but it was rejected by the House. Opponents of Mr. Sauthoff's amendment contended that since
the Government is to confiscate "hot oil" the $2,000 fine
provided in the Act is sufficient punishment.
The third of the conferences of Governors and representatives of the nine major oil producing States resulted
in the drafting of a plan to be offered to the Legislatures
of the various States represented for their approval.
Delegates attending the conference, held in Dallas, Texas,
which included the Governors of Texas and Oklahoma and
representatives of the Governors of the seven other oil producing States, approved the compact offered by Governor
Allred of Texas.
Under Governor Alfred's plan, a fact-finding body, to be
known as the Inter-State Oil Compact Commission, would
be organized to analyze the problems affecting the petroleum
industry to-day and to recommend methods in which to conserve the huge but rapidly diminishing oil supplies.
The fact that the proposed compact makes no mention
of price-fixing or stabilization and refers solely to methods
of preventing physical waste was interpreted in trade circles
as indicating that it will face bitter opposition in many if
not most, of the legislatures.
Governor Marland, of Oklahoma, original sponsor of the
int4r-State compact plan of controlling oil production, wanted
regulation methods which would aid to stabilize prices.
Governor Allred, however, bitterly fought this action, contending both that it would be unfair to consumers and would
not withstand legal attacks.
Each State is left free to develop its own proration laws
under the proposed plan. California is the only major oil
producing State which does not have a proration law and
indications at the conference pointed to a movement to induce
this State to enact such a measure.
The proposed pact would become effective when ratified
by three of the five States producing the largest amount of
crude oil-Texas, Oklahoma, New Mexico, Kansas and
California.
Opinion within the industry was divided but those holding
to a pessimistic view pointed to a quoted interview with
Governor Marland in which he said "it all depends upon the
good faith of Texas." On the other hand, Governor Allred
said that"this is a great achievement, from which great good
can come:" With Administrator Ickes constantly reiterating
his intention of bending every effort to place the oil industry
under Federal control, some trade factors contend that the
oil producing States, all of whom are agreed in opposition to
such a move if on no other point, are more or less "backed
in a corner"
Reiterating his belief that the oil industry should be
declared a public utility for purposes of regulation, Oil
Administrator Ickes said "there is no reason why the declaration should be deferred," at his weekly press conference
Thursday.
In response to queries, Mr. Ickes stated that he had not
discussed the question with President Roosevelt or members
of Congress, but contended "wise statesmanship would
dictate it (the oil industry) being called a public utility before
the waste becomes greater."
Several advantages of such a step were cited by the Oil
Administrator,including "greater conservation of oil, producing with more scientific methods, manufacturing it with
less waste."
Adding that "there is wasteful distribution of it, too,"
Mr. Ickes admitted when questioned that gasoline prices
would increase should the industry be declared a public
utility.
The revised version of the Connally oil measure approved
by the House was characterized by Oil Administrator Ickes
as "all right as far as it goes," but he stated that he favored
a measure which would give the Government more power to
set maximum production in the various oil producing States.
The Oil Administrator declared that the recent conference
of Governors of oil producing States at Dallas "did more
than anything I could do or say to prove the need for strict
Feb. 23 1935
Financial Chronicle
regulation laws for the Federal Government." He added
that "he did not have faith" in the ability of Southwest Oil
States to curb crude oil production.
The March daily allowable crude oil production total
has been pared 5,800 barrels to 2,520,300 barrels from
2,526,100 daily authorized during February, the Oil Administrator stated.
Texas received the largest cut, daily average production in
the Lone Star state being cut 11,600 barrels to 1,020,100
barrels. Other allowables, showing gains or declines as the
particular case might be, compare as follows:
Arkansas__
California.._
Colorado_ ___
Illinois
Indiana
Kansas
Kentucky__.
Loulsana_ _
Mlehlgan
Allowable
Barrels
31.900
492,600
3.500
11,200
2,200
139,700
14,700
110,500
31.600
Change
Barrels
-100
+4,000
(Unchanged)
-500
(Unchanged)
+1,100
-100
+1,000
+1.600
Change
Allowable
Barrels
Barrels
9,500 (Unchanged)
Montana_ _ __
-100
49,300
New Mexico_
+1,000
11,300
New York _ __
-200
11,500
Ohio
-6,100
Oklahoma_ __ 491,000
+4.300
Pennsylvania. 43 300
+300
11,300
W. Virginia__
-400
35,100
Wyoming____
The new allowables, the Oil Administrator pointed out,
became effective at 7 a. m. Standard Time, at the place
of production, March 1.
The reappointment of K. R. Kingsbury, head of the
Standard Oil Co. of California, to the Planning and Coordination Committee was made public by Mr. Ickes
Tuesday. Mr. Kingsbury resigned from the Committee
last spring when his company was included in seven Pacific
Coast oil units named in Federal indictments as violating
the petroleum code.
The indictments were recently dismissed in Federal Court
in San Francisco on the recommendation of the United States
District Attorney, who reported that the company was now
operating in full accord with the provisions of the petroleum
code.
Anew ruling also was handed down by Mr. Ickes who
ordered that operators and employees of filling stations are
the employees of the supplying oil companies if the latter
controls the operation of the station acting under the authority
granted him by the petroleum code. This ruling was desWeirro provide who shall be responsible for oil code
=provisions in the event that service station operators
do not meet such provisions.
-stated, however, that if an operator has a "subThe
stax=arinvestment" in a filling station, the question of
whether or not he is an employee of the supply company
will be determined in individual cases. A recommendation
from the Planniry and Co-ordination Committee which would
have exempted from the statics of an employee operators
of all stations run under the leasing agency or lease and
license system was denied.
A plea for the co-operation of the engineers of the country
to aid in either modifying or abolishing the present "capture
law" under which the petroleum industry is operating was
voiced by Earl Oliver, Chairman of the Stabilization Committee of the Petroleum Division of the American Institute
of Mining and Metallurgical Engineers at the annual convention.
Mr. Oliver attributed most of the ills afflicting the oil
industry to this cause in a speech delivered Thursday.
Disclosing that the Code sub-committee which recently
investigated the petroleum industry had realized the importance of such a change, Mr. Oliver pointed out that
the legal principles applied to unitization of oil pools had
been applied successfully to other lines of endeavor in the
United States and had been upheld in rulings of the United
States Supreme Court.
An increase of 56,350 barrels in daily average crude oil
production during the week ended Feb. 16 lifted the total
to 2,567,500 barrels, 41,400 barrels in excess of the Federal
quota of 2,526,100 barrels, reports to the American Petroleum Institute disclosed.
Texas output of 1,014,450 barrels was within its quota
limit of 1,031,700 barrels despite a gain for the week of
4,150 barrels. California, despite a drop of 9,000 barrels,
showed output of 517,300 barrels, against an allowable of
488,600 barrels. Oklahoma production spurted 51,550
barrels to 507,100 barrels, 4,000 barrels in excess of its
allowable.
A decline of 1,222,000 barrels in stocks of domestic and
foreign crude oil during the week ended Feb. 16 pared the
total to 321,822,000 barrels, the Bureau of Mines reported.
Domestic stocks were off 1,286,000, more than offsetting an
increase of 46,000 barrels in stocks of foreign crude.
Dispatchesfrom Washington Thursday quoted Representative Lloyd (Dem., Wash.) as announcing that he plans to
Financial Chronicle
Volume 140
organize to secure action by the Ways and Means Committee of a measure which would place a tax of % cent a
gallon on fuel oil or Diesel oil sold by importers or produced
in the United States.
There were no price changes posted during the week.
Pricea of Typical Crudes per Barrel at Wells
(All gravities where A. P. I. degrees are now shown)
Bradford. Pa
Lima (Ohio Oil Co.)
Corning, Pa
Illinois
Western Kentucky
Mid-Cont.. Okla., 40 and above
Hutchinson, Tex.. 40 and over
Boindletop, Tex., 40 and over
Winkler. Tex
$2.35
1.15
1.32
1.13
1.08
1.08
.81
1.03
.75
Smackover. Ark.. 24 and over
.70
Eldorado. Ark., 40
$1 00
Rusk. ex.,40 and over
1.00
Darst Creek
.87
Midland District, Mich
1.02
Sunburst Mont
1 35
Banta Fe Springs, Calif.. 40 and over 1.34
Huntington. Calif.. 26
1.01
Petrone. Canada
2.10
REFINED PRODUCTS-GASOLINE PRICE WAR IN NEW YORK
CITY-WEAKNESS SPREADS THROUGHOUT SOME POINTS
IN NEW ENGLAND-REFINERY OPERATIONS RISE
Ascribed variously to price-cutting competition and to
weakening of the Gulf Coast market, a severe gasoline price
war broke out in the metropolitan New York area late
Monday afternoon and quickly spread to other marketing
points in the New York-New England sales area.
Another factor credited with being in part responsible for
the sudden break in retail gasoline prices was the threatened
gasoline service station attendants strike. It was disclosed
that many independent stations, facing picketing by the
union, slashed prices in an attempt to offset any sympathy
that might develop among their customers. This weakness
spread and may have been more important than first realized
in causing unstable market conditions.
The first hint of the sudden weakness came late last week
when the Socony-Vacuum Oil Co. posted a general city-wide
reduction of 1-2 cent a gallon in retail gasoline prices, to be
effective Feb. 18. The easing off was held by some quarters
to be due to the necessity of meeting price-cutting competition which had been spreading in certain sections of the
city.
On the afternoon of the day that the first cut became
effective, however, Soeony-Vacuum posted further reductions
of 1% to 2 cents a gallor in service station prices of gasoline,
the second cut affecting all of metropolitan New York City
and Westchester and Nassau and Suffolk counties.
The second reduction was laid in some circles to the rising
cut-price competition, notably in Brooklyn, although it was
stated that weakness in the Gulf Coast market was the
underlying factor behind the cut. A check-up at Gulf Coast
market points disclosed that while the market did not appear
strong, there was no surface indication of sufficient weakness
to justify such a sharp reduction in retail levels.
The company also revealed that the original reduction of
1-2 cent a gallon announced for New York City had been
expanded to take in certain areas of upper New York State,
with the exception of the Buffalo area where prices are
sharply depressed due to a gasoline price war, and in the
New England territory.
Under the schedule posted Monday afternoon, which
became effective the following day and was met by all major
competitors, retail prices in Kings, Queens, Manhattan and
the Bronx counties are 14 cents, State and Federal taxes
included.
In Westchester county, service station levels were cut to
14% cents with Suffolk posted at the same rate and Nassau
1-2 cent lower, same tax basis. Richmond County (Staten
Island) prices held unchanged.
A rise of 165,000 barrels in daily average runs of crude
oil to stills during the week ended Feb. 16 lifted the total to
2,440,000 barrels, reports to the American Petroleum
Institute indicated. Reporting refineries operated at 71.6%
capacity, against 66.7% in the previous week.
An increase of 1,664,000 barrels in gasoline stocks during
the week ended Feb. 16 lifted the total at the close of the
week to 52,416,000 barrels. In the previous week, stocks of
gasoline were up 1,274,000 barrels.
Representative price changes t follow:
Feb. 18-Socony-Vacuum Oil Co. posted reductions of 1% to 2 cents a
gallon in service station prices of gasoline in the metropolitan New York
City area with the exception of Richmond. In Westchester and Suffolk
counties, the cut was 134 cents while in Nassau County and New Yogi
City, the cut was 2 cents, all reductions effective to-morrow. The cuts
were met by all major competitors.
• Feb. 18-The Socony-Vacuum Oil Co. announced that the reduction of
1-2 cent a gallon posted in service station prices of gasoline in the metropolitan New York City area, effective to-day has been expanded to take in
certain other areas in up-State New York, with the exception of Buffalo,
and in New England.
Gasoline, Service Station. Tax Included
3.175
Cincinnati
$14
Minneapolis
New York
S 149
.175
New Orleans
.14
Cleveland
Brooklyn
.165
.21
Philadelphia
164
Denver
16
Newark
17
Pittsburgh
154
Detroit
Camden
145
.19
San Francisco
12
Jacksonville
Baden
.185
.18
St. Lotus
115
Houston
Buffalo
.158
.18
183
Los Angeles
Chicago
1225
Kerosene, 41-43 Water White. Tank Car, F.O.B. Refinery
New York:
I North Texas-S.03 -.0334 New Orleans-S.05'14
(Bayonne)-- $.06-34
I Los Angeles... .04(-.0534 I Tulsa
O334.03i4
Fuel Oil. F.O.B. Refinery or Terminal
N. Y.(Bayonne):
California 27 plus D
Gulf Coast C
MOO
Bunker C
$1.15
31.05-1.201Phila.. bunker C____ 1.15
Diesel 28-30 D__ 1.891 New Orleans C.
1.00
Gas Oil, F.O.B. Refinery or Terminal
N. Y.(Bayonne):
I Tulsa
I Chicago:
3.02.-0234
27 plus
8.0431-.05I 32-36 CO--S.02-.0234
U. S. Gasoline, Motor (Above 65 Octane). Ta nkCar Lots, F.O.B. Refinery
New York:
Standard OH N. J.:
Chicago.__ $.0434-.04h
Motor. U 8
Colonial-Beacon- 5.06 ,New Orleans__ _ _ .04H
8.0614
Sorony-Vacuum:
a Texas
064 Los Angeles.ex-.04TH =04,i
.0634
y Gulf
'tide Water 011 CO. .0612
06 Gulf porta-- .04,4-.04%
Richfield Oil (Cal.) .0614
Republic 011
0614 Tulsa
0414-.0454
Warner-Quinlan Co_ .0614
Shell East'n Pet-S.0634
* a "Fire Chief," 30.065 y "Good Gulf." 30.0614. t New York prices do not
include the 2 per cent City Sales Tax.
Daily Average Crude Oil Output Rises 56,350 Barrels
During Latest Week-Exceeds Federal Quota
The American Petroleum Institute estimates that the
daily average gross crude oil production for the week ended
Feb. 16 1935 was 2,567,500 barrels. This was a gain of
56,350 barrels from the output of the previous week, and
also exceeded the Federal allowable figure which became
effective Feb. 1. The increase amounted to 41,400 barrels.
Daily average production for the four weeks endqd Feb. 16
1935 is estimated at 2,517,200 barrels. The daily average
output for the week ended Feb. 17 1934 totaled 2,289,150
barrels. Further details•as reported by the Institute follow:
Imports of crude and refined oil at principal United States ports totaled
1,145,000 barrels for the week, a daily average of 163.571 barrels. against
99,286 barrels in the previous week and 139,607 barrels over the last four
weeks.
Receipts of California oil at Atlantic and Gulf Coast ports totaled 303,000
barrels for the week, a daily average of 43,286 barrels, compared with
32,536 barrels over the last four weeks.
Reports received for the week ended Feb. 16 from refining companies
owning 89.8% of the 3,795.000-barrel estimated daily potential refining
capacity of the United States, indicate that 2,440,000 barrels of crude oil
daily were run to the stills operated by those companies and that they had
in storage at refineries at the end of the week, 33,111,000 barrels of finished
gasoline; 5,429,000 barrels of unfinished gasoline and 100,886,000 barrels
of gas and fuel oil. Gasoline at bulk terminals, in transit and in pipe
lines amounted to 19,305,000 barrels.
Cracked gasoline production by companies owning 95.6% of the potential
charging capacity of all cracking units, averaged 483,000 barrels daily
during the week.
DAILY AVERAGE CRUDE OIL PRODUCTION
(Figures in Barrels)
Federal
Agency
Allowable
Effective
Feb. 1
Actual Production
Week Ended
Feb. 16
1935
497,100
138,600
Feb. 9
1935
Average
4 ;Yreka
Ended
Feb. 16
1935
Week
Ended
Feb. 17
1934
507.100
139,000
455,550
139,700
478,500
139,250
495,100
115,000
61,850
57,000
25,650
150,200
51,450
433,650
47,600
58,750
59,100
56,000
26,050
150.250
52,250
431,750
47,600
58,700
60,600
56,800
25,950
152,100
51,600
430.600
47,600
58,450
47.350
54,850
26,100
129,000
43,250
413,450
47,200
43,450
128,300
128,000
128,200
110,800
1,031,700 1,014,450 1,010,300 1,011,900
915,450
Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
East Texas
Conroe
Southwest Texas
Coastal Texas (not including Conroe.)
Total Texas
North Louisiana
Coastal Louisiana
Total Louisiana
Arkansas
Eastern (not Incl. Mich.)
Michigan
wyoming
Montana
Colorado
Total Rocky Mtn.States
New Mexico
California
22,900
94,300
22,800
91.350
22,950
91,450
28,250
45,150
109,500
117,200
114,150
114,400
73,400
32,000
100,700
30,000
31,000
106,850
38,550
31.250
101,650
35,800
31,300
102,300
36,300
31,600
90,950
27,700
35,500
9,500
3,500
33,350
11,200
4,200
34,750
11,700
3,950
33,300
11,400
3,850
30,150
5,100
3,000
48,500
48,750
50,400
48,550
38,250
49,400
488,600
47,300
517,300
46.050
526,300
47,350
507,350
41,600
480.100
Total United States_
2,526,100 2,567.500 2,511,150 2,517.200 2.289.150
Note-The figures indicated above do not include any estimate of any oil which
might have been surreptiously produced.
CRUDE RUNS TO STILLS, FINISHED AND UNFINISHED GASOLINE AND
GAS AND FUEL OIL STOCKS, WEEK ENDED FEB. 16 1935
(Figures In thousands of barrels ot 42 gallons each)
Stocks a stoas
Stocks
of
of
Is Stocks
of
Fintinof
Gas
Repay fag
Daily P C.- ished finished Other
and
Aver- Oper- (Jaw- (la-so- Motor Fuel
Total P. C. age
ated
line
line
Fuel
Oil
Daffy Refining
Capacity of Plants
District
East Coast__
Appalachian.
Ind., Ill., Ky
Okla., Kan.,
Missouri_
Inland Texas
Texas Gulf__
La. Gult____
No. La.-Ark.
Rocky Mtn_
California__
PatenHal
Rate
Crude Runs
to Stilts
582
150
446
582 100.0
140 93.3
422 94.6
478 82.1 15,369
103 73.6 2.123
304 72.0 9.177
461
351
601
168
92
96
848
386
167
587
162
77
64
822
248
97
559
113
37
40
461
83.7
47.6
97.7
96.4
83.7
66.7
96.9
64.2 5,134
58.1 1,394
95.2 5,849
69.8 1,547
48.1
267
62.5
853
56.1 10,703
831
292
656
767
205
1,324
249
53
116
936
210 10.257
70 1,004
65 4,282
415
445
115
__
3,914
1,824
9,131
4,036
Lo
448
50
700
2,600 65.310
Totals week:
Feb. 16 '35 3.795 3,409 89.8 2.440 71.6 d52,416 5.429 4,020 100,886
Feb. 9'35 3.795 3.409 89.8 2.275 R&7 esn R441 A 975 a ncn .-in,,K.,
a Amount of unfinished gasoline contained In naphtha distillates. Is Estimated
Includes unblended natural gasoline at refineries and plants: also blended moto
Financial Chronicle
1226
fuel at plants. c On new basis; the change affecting Texas Gull Coast. d Includes
33.111,000 barrels at refineries and 19,305,000 barrels at bulk terminals, in transit
and pipe lines. e Includes 32,042.000 barrels at refineries and 18,798,000 barrels
at bulk terminals, In transit and pipe lines.
Output of Bituminous Coal Continues Rise During
Week Ended Feb. 9-Anthracite Falls 7.7%
The United States Bureau of Mines, Department of the
Interior in its weekly coal report stated that the total production of bituminous coal for the country during the week
ended Feb. 9 is estimated at 8,510,000 net tons. Compared
with the preceding week, this shows little change-an increase of 20,000 tons, or 0.1%. Output in the corresponding
week of 1934 amounted to 7,720,000 tons.
Anthracite production in Pennsylvania during the week
ended Feb. 9 is estimated at 1,388,000 net tons, a decrease
of 115,000 tons, or 7.7%. Production during the corresponding week in 1934 was 1,222,000 tons.
During the coal year to Feb. 9 1935, 300,661,000 net tons
of bituminous coal and 46,445,000 net tons of anthracite
were produced. This compares with 296,775,000 tons of
bituminous and 44,635,000 tons of anthracite produced in
the corresponding period of 1933-34. The Bureau's statement follows:
ESTIMATED UNITED STATES PRODUCTION OF COAL AND73,11.VE
COKE (NET TONS)
Coal Year to Dale
Week Ended
Feb. 9
1935 c
Feb. 2
1935 d
Feb. 10
1934
1934-35
1933-34 e
1932-33 e
Bltum. coal-s
Total period_ 8,510,000 8,490,000 7,720,000 300,661,000 296,775,000 258,462,000
980,000
DaIlt avge_ _ 1,418,000 1,415,000 1,287,000 1,142.000 1,124,000
Pa. antbra.-b
Total period_ 1,388,000 1,503,000 1,222,000 46,445,000 44,635,000 42,342,000
171,000
161,600
177,950
Daily avge.... 231,300 250,500 203,700
Beehive coke549,200
769,300
26,400
708,200
16,000
16,100
Total period_
2.871
2,049
2,683
2,643
2,667
4,400
Daily avge__
a Includes lignite, coal made into coke, local sales, and colliery fuel. b Includes
Sullivan County, washery and dredge coal, local sales, and colliery fuel. c Subject
to revision. d Revised. e Production during first week in April adjusted to
make accumlations comparable with the year 1934-35.
ESTIMATED WEEKLY1PRODUCTION OFiCOAL BY STATES (NET TONS)
Week EndedFeb. 3
1934
Alabama
223,000
201,000
194,000
Arkansas and Oklahoma
95,000
111,000
52,000
Colorado
192,000
105,000
124,000
Illinois
1,146,000 1,227,000 1,045,000
362,000
Indiana
392,000
418,000
Iowa
94.000
69,000
93,000
139,000
Kansas and Missouri
168,000
165,000
593,000
Kentucky-Eastern
637,000
678,000
213,000
Western
231,000
258,000
40,000
41,000
37,000
Maryland
69,000
50,000
Montana
64,000
25,000
New Mexico
22,000
29,000
43,000
53,000
North Dakota
44,000
Ohio
465,000
418,000
486,000
2,084,000 1,820,000 1,760.000
Pennsylvania (Bltum.)_
81,000
89,000
Tennessee
93,000
15.000
14,000
Texas
14,000
91,000
47,000
Utah
66,000
196,000
204,000
188,000
Virginia
42,000
46,000
35,000
Washington
West Virginia-Southern a 1,490,000 1,455,000 1,352,000
520,000
493,000
569,000
Northern b
118,000
90,000
105,000
Wyoming
22,000
12,000
13,000
Other States
Feb. 4
1933
-
Jan. 26
1935
.,
Feb. 2
1935
Ca •+
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Stale
e e0. 2
1929
369,000
180,000
310,000
1,674,000
455,000
112,000
199,000
981,000
399,000
66,000
90,000
62,000
63,000
444,000
2,887,000
115,000
25,000
148,000
273,000
64,000
2,035.000
745,000
171,000
22,000
Total bituminous coal.. _ 8,490,000 8,250,000 7,495,000 6,013,000 11,889,000
1,503,000 1,336,000 1,131,000
932,000 1,655,000
Pennsylvania anthracite
Total coal
9.993.000 9,586,000 8,626,000 6,945,000 13,544,000
a Includes operations on the N. At W.; C. & O.; Virginian; K. dt M.; and B. C.
& G. b Rest of State, including Panhandle, and Grant. Mineral, and Tucker
counties.
Gold Decision Has Little Influence On Trade in Metals
-Prices Steady
"Metal and Mineral Markets," in its issue of Feb. 21
stated that producers of non-ferrous metals were disappointed
in the action of the markets following the Supreme Court's
decision on the gold-clause cases. Buying of metals was
more active before the decision was rendered than after
the news was made public. The automobile industry has
slackened operations so far as new purchases are concerned,
and this may account for the moderate pace of buying in
raw materials in the last two days of the week. Both gold
and silver strengthened in the world markets. Prices for
base metals moved within narrow limits in the last week.
Steel operations for the current week were estimated at
49.1% of capacity, which compares with 50.8% a week
previous and 52.8% two weeks ago. President Roosevelt,
in a message to Congress, asks that the National Industrial
Recovery Act be extended for a period of two years. The
publication further went on to say:
Totals
Shipments, refinedUnited States
Foreign
122,400
122,500
22,750
91,000
38,250
87,500
Totals
StocksNorth and South America
Elsewhere
113,750
125,750
371,250
123.000
355,250
132.500
Totals
494,250
487.750
In addition to the 355.250 tons of copper on hand and owned by producers in North and South America, a total of about 96,750 tons are held
for the account of United States consumers. A month ago this figure was
101.000 tons. Producers abroad hold about 5,250 tons of copper for
account of consumers.
Lead Buying Inactive
Demand for lead last week was inactive, contrasted with the two preceding seven-day periods, the tonnage sold falling to around 2,200,tons. Quotations were maintained on the basis of 3.55c., New York, the contract
settling basis of the American Smelting & Refining Company,and at 3.40c..
St. Louis. St. Joseph Lead again quoted and received a premium of $1
per ton on its brands for delivery in the East. The undertone of the market
was described as steady.
Buying of lead was spotty in character, most of the inquiry coming from
corroders, foil makers, and mixed-metal manufacturers.
The high prices now obtaining for antimony have placed sellers of antimonial lead in a better position to move their product at a permium on the
current market for common grades.
Zinc Continues at 3.70c.
Sales of zinc for the last week totaled more than 2,500 tons. This buying
was not sufficient to strengthen the ideas of sellers as to price, which continued at 3.70c., St. Louis, though most operators regard the market as
steady to firm. Talk of curtailing production of the metal continues, and
the belief is spreading that concentrate producers are finding it difficult
to operate at current low prices for the ore. Producers of High Grade zinc
have done an excellent business in recent months. In the last week, however, the volume of new business coming from the automobile industry has
slackened.
Tin Sales Moderate
Except for the sale of about 300 tons of tin on Monday (Feb. 18), the
market hero was inactive. Prices were a little lower than in the preceding
week, reflecting continued unsettlement in London. The tin pool formed
to stabilize prices was attacked in the House of Commons on Feb. 19.
London advicos state. Defending the operations of the International
Tin Committee, Sir Philip Cunliffe-Lister, Colonial Secretary, said that
the Government will not interfere with the "buffer" pool, which holds
about 8,000 tons of tin.
Chinese tin. 99%, was quoted nominally as follows: Feb. 14, 48.85c.:
15th, 49c.; 16th, 49.05c.: 18th, 49.45c.: 19th, 49.375c.; 20th, 49.175c.
Production and Shipments of Portland Cement During
Month of January 1936 Below Like Month of 1934
The United States Bureau of Mines, Department of the
Interior, in its monthly cement report stated that the
Portland cement industry in January 1935, produced 3,202,000 barrels, shipped 2,846,000 barrels from the mills,
and had in stock at the ened of the month 21,816,000
barrels. Production and shipments of Portland cement in
January 1935, showed decreases of 15.3 and 24.7%, respectively, as compared with January 1934. Portland cement
stocks at mills were 11.6% higher than a year ago. The
factory value of the shipments from the mills in 1934.
75,917,000 barrels-is estimated at $115,771,000.
In the following statement of relation of production to
capacity the total output of finished cement is compared
with the estimated capacity of 162 plants at the close of
January 1935, and of 163 plants at the close of January 1934.
RATIO OF PRODUCTION TO CAPACITY
Copper Shipments Large
Buying of copper for domestic account continued in good volume, though
In the last few days the demand was not so brisk as earlier in the week.
Feb. 23 1935
Sales for the seven days ended Feb. 19 totaled 9,029 tons. against 6,261
tons in the week previous. Business booked so far this month totaled
20,287 tons. The buying indicates that fabricators must have been booking
a good volume of new business in their products.
The industry Is looking into the sale of so-called "doinex" copper, a name
given to metal of domestic origin, non-Blue Eagle, that has been purchased
by fabricators in the place of bonded material for use in connection with
export sales of various copper products. Difficulty in complying with
customs regulations has made consumers, particularly the automobile
manufacturers, take to "domex- copper where foreign trade is concerned.
The immediate objective seems to be to restrict the use of this material
to business where absolute proof of export is available.
The foreign market showed little change. Absence of definite news in
reference to the control scheme seems to have slowed down buying. Producers were less confident last week about when the general meeting would
take place. Early in March was the best guess yesterday. All agreed,
however, that further progress on the control plan was made last week.
'rho end of the Inventory period, together with improvement in business,
particularly automobile production, caused shipments of copper to consuming plants to increase materially in January. The January statistics of
the Copper Institute indicate that domestic deliveries of copper reached
38,250 tons, against 22,750 tons in December. Foreign deliveries declined
moderately, compared with December's record. Total production held
at about the same rate in January as in the preceding month. Stocks
owned by producers were reduced about 6,500 tons.
A summary of the copper statistics, in short tons, follows:
Jan.
Production
Dec.
U. S. mine
23,500
21,500
U. S. scrap
10,500
11,500
Foreign mine
84,750
83,200
Foreign scrap
3.750
6,200
Jan. 1934
The month
The 12 months ended_
16.6%
23.9%
Jan. 1935 Dec. 1934 Nov. 1934
14.1%
28.8%
19.5%
29.0%
26.2%
28.7%
Oct. 1934
29.3%
28.3%
PRODUCTION. SHIPMENTS, AND STOCKS OF FINISHED PORTLAND
CEMENT, BY DISTRICTS IN JANUARY 1934 AND 1935 (IN THOUSANDS OF BARRELS)
January
1934
1935
684
44
66
111
434
456
531
353
195
134
699
72
547
0
54
116
458
345
467
295
294
113
471
42
3.779
3.202
1934
1935
-4001C0eNONO
OCA.S,00 ,
--•00CAMMOODNOCA
00 ,
Eastern Pa., N. J., and Md
New York and Maine
Ohio, Western Pa. and W. Va
Michigan
Wis., Ill., Ind. and Kentucky_
Va., Tenn., Ala., Ga., Fla. & La_
East. Mo., Ia., Minn. & S. Dak_
W. Mo., Neb., Kans., Okla.&Ark
Texas
Colo., Mont., Utah, Wyo.& Ida_
California
Oregon and Washington
Stocks at End
of Month
Shipments
3.778
1934
CAVC0:4
00
*
0.
•A•
•-•
w
ts.,
•-•
rla =Cr. 4,72 000,
10000
Production
District
471
77
221
75
181
461
179
259
240
128
482
72
1935
3,653
1,611
2,863
1,871
2,330
1,619
2,728
2,035
725
419
1,402
560
2.846 19.547 21.816
PRODUCTION, SHIPMENTS AND STOCKS OF FINISHED PORTLAND
'CEMENT BY MONTHS, IN 1934 AND 1935 (IN THOUS. OF BARRELS)
77.682
3,202
1934
3,778
2,952
4,618
6,492
8,784
8,541
7,898
8,249
7,388
8,439
5,674
3,104
1935
2,846
1934
'co
1935
1935
21,816
Co la
3,779
4,168
5,257
6,544
8,554
8,813
8,144,
7,842
7,680
6,675
5,779
4,447
Stocks at End of
Month
000-1 atoot
414
-Coca N
4-4 CO CO CC
.• a t.o
-o to to
0CO to 4,
1934
January
Feburary
March
April
May
June
July
August
September
October
November
December
Shipments
CO CO C-t CO b.2 CO tO CO bZ CO
0 1-• F-•
r•-•
•-• 0
Production
cn
Month
1227
Financial Chronicle
Volume 140
75.917
a Revised.
The statistics given above are compiled from reports for
January, received by the Bureau of Mines, from all manufacturing plants except one, for which an estimate has been
included in lieu of actual returns.
Steel Ingot Output:and Scrap Prices Again Lose
Ground
The "Iron Age" in its issue of Feb. 21 stated that both steel
production and scrap prices have suffered further declines,
ingot output falling three points to 50% of capacity and
scrap, as measured by the "Iron Age" composite price,
receding from $12.17 to $11.92 a ton. Through recessions
in scrap prices have been general, occurring on the steelmaking grades in all of the important consumingicenters,
market sentiment is now strengthening, particularly in the
key Pittsburgh district. The change in tone is attributed in
part to a purchase of 10,000 tons of heavy melting steel by
the leading Pittsburgh consumer, the first purchase from
dealers by that interest since April 1934. The announcement
of the gold clause decision also has had a buoying effect.
The "Age" further stated:
Among steel 'makers likewise there yare signs of returning confidence.
Whether the recent setback in business was due to'uncertainty over the gold
clause case, to too rapid expansion of raw and semi-finished steel output, to
overbuying by consumers, to code limitations on contract buying, or to all
of these factors remains a moot question, but:the steel trade sees no:evidences
of an actual decline in consumption and, in certain directions, looks for an
expansion of demand above current levels.
There are as yet no indicationslof a relaxation of activity in the automobile industry and, whilelmotor car makers may have ordered more freely
than usual so long as theyiwerelin doubt as to deliveries available from the
mills, it is doubtful whotherttheylhave yet reached the peak of their steel
requirements. Some of the larger consumers outside of the automotive field, particularly refrigerator manufacturers, also accumulated
sizable socks recently to protect themselves against delays in deliveries.
The extent of anticipatorylcovering, as well as the trend of future demand,
will probably not become apparent until after March 1, when books for the
second quarter are opened.
Prices thus far filed for the nextIthree-month period show no deviations
from present quotations. Sheet mills continue to receive requests for reservations on rolling schedulestpending the time when formal contracts for
second quarter can be accepted.
Milder weather and the completion of new Government financing programs are counted on to stimulate construction, as well as railroad expendi.tures, in the secondlquarter. New structural steel projects of 60,000 tons
are the largest since the last weelesof August 1933. Fabricated steel awards
of 13,250 tons compare with 9,655 tons in the previous week. Reinforcing
bar lettings of 12,800 tons include 7,030 tons placed by the Los Angeles
water district.
The Southern Itallwayihas awarded 16,000 tons of rails to the Alabama
mill, and thelSouthern Pacific has ordered 6,000 tons of tie plates. The
Virginian is in the market for 2,200 tons of rails. Railroad car repair shops
in various parts of the country are taking increasing quantities of steel.
The placing of 32 twin-articulated electric stream-lined passenger units
by the French iltailways and of 15 single-unit Diesel-electric cars by the
Northern Railways of Italy for construction abroad under licenses from a
Philadelphia ibuilder has been followed by the purchase of stainless steel
from an American mill.
Threats of nation-wide strikes in the steel, automobile and textile industries are discounted, but scattered local strikes with others in prospect are
not only hampering production but are unsettling business confidence at a
time when capital investment shows signs of revival, as evidenced by the
Steal corporation's announcement of a $47.000,000 improvement program.
Stool ingot output is off two points to 39% at Pittsburgh, 11 points to
54% at Chicago and five points to 85% in the Wheeling district. Elsewhere operations are substantially unchanged.
The "Iron Ago" composite prices for pig iron and finished steel are
unchanged at $17.90 a ton and 2.128c. sib, respectively.
Finished Steel
(Based on steel bars, beams, tank plates.
Feb. 19 1935, 2.124c. a lb.
2 124c. wire, rails, black pipe, sheets and hot
One week ago
One month ago
2.124c. rolled strips. These products make
2.0080. 85% of the United States output.
One year ago
Low
High
2 124c. Jan. 8
2.124c. Jan. 8
1935
2 199c, Apr, 24
2.008c. Jan. 2
1934
2.0150. Oct. 3
1.867c. Apr. 18
1933
1 977c. Oct. 4
1.926c. Feb. 2
1932
1.945c. Dec. 29
1931
2 037c. Jan. 13
2.018c, Dec. 9
2.2734. Jan. 7
1930
2.317c, Apr. 2
2.273c, Oct. 29
1929
2.217c, July 17
2.286e. Dec. 11
1928
2.4020. Jan. 4
2.212c. Nov. 1
1927
Pig Iron
Based on average of basic Iron at Valley
Feb. 19 1935, 517.90 a Gross Ton
517.90 furnace and foundry irons at Chicago,
One week ago
17.90 I Philadelphia, Buffalo, Valley and
One month ago
16.90( Birmingham.
One year ago
Low
High
$17.90 Jan. 8
$17.90 Jan. 8
1935
16.90 Jan. 27
17.90 May 1
1934
13.56 Jan. 3
16.90 Dec. 5
1933
13.56 Dec. 6
14.81 Jan. 5
1932
14.79 Dec. 15
15.90 Jan. 6
1931
15.90 Dec. 16
18.21 Jan. 7
1930
18.21 Dec. 17
18.71 May 14
1929
17.04 July 24
18.59 Nov. 27
1928
17.54 Nov. 1
19.71 Jan, 4
1927
Steel Scrap
Based on No. 1 heavy melting steel
Feb. 19 1935, 511.92 a Gross Ton
$12.i7(quotations at Pittsburgh, Philadelphia
One week ago
12.33
One month ago
I and Chicago.
Low
12.251
High
One year ago
$11.92 Feb. 19
512.33 Jan. 8
1935
9.50 Sept. 25
13.00 Mar. 13
1934
6.75 Jan. 3
12.25 Aug. 8
1933
6.42 July 5
8.50 Jan. 12
1932
8.50 Dec. 29
11.33 Jan. 6
1931
11.25 Dec. 9
15.00 Feb. 18
1930
14.08 Dec. 3
17.58 Jan, 29
1929
13.08 July 2
16.50 Dec. 31
1928
13.08 Nov.22
15.25 Jan. 11
1927
The American Iron and Steel Institute on Feb. 18 announced that telegraphic reports which it had received indicated that the operating rate of steel companies having
98.7% of the steel capacity of the industry will be 49.1%
of the capacity for the current week, compared with 50.8%
last week, 49.5% one month ago, and 43.6% one year ago.
This represents a decrease of 1.7 points, or 3.3% from the
estimate for the week of Feb. 11. Weekly indicated rates
of steel operations since Oct. 23 1933 below:
1933Oct. 23
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Nov. 27
Dec. 4
Dec. 11
Dec. 18
Dec. 25
1934Jan. 1
Jan. 8
Jan. 15
Jan. 22
Jan. 29
Feb. 5
Feb. 12
1934mear
b.. 15
9
35
21:
.6
2 F
2
27
6.1
.1: Feb. 26
Mar
mar.
.12
9
22,6:89
28.3%
31.5%
34.2%
31.8%
29.3%
30.7%
3344..42:
32.5%
37.5%
39.9%
Mar. 26
Apr. 2
Apr. 9
Apr. 16
Apr. 23
Apr. 30
May 7
May 14
May 21
May 28
June 4
June 11
June 18
43.6%
45.7%
47.7%
46.2%
46.8%
45.7%
43.3%
47.4%
50.3%
54.0%
55.7%
56.9%
58.8%
54.2%
56.1%
57.4%
56.9%
56.1%
1934June 25
July 2
July 9
July 16
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Sept. 4
Sept. 10
Sept. 17
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Oct. 22
44.7%
23.0%
27.5%
28.8%
27.7%
26.1%
25.8%
22.3%
21.3%
19.1%
18.4%
20.9%
22.3%
24.2%
23.2%
23.6%
22.8%
23.9%
1934Oct. 29
Nov. 5
Nov. 12
Nov. 19
Nov. 26
Dec. 3
Dec. 10
Dec. 17
Dec. 24
Dec_ 31
1935Jan, 7
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb 18
25.0%
26.3%
27.3%
27.6%
28.1%
28.8%
32.7%
34.6%
35.2%
39.2%
43.4%
47.5%
49.5%
52.5%
52.8%
50.8%
49.1%
"Steel" of Cleveland, in its summary of the iron and steel
markets on Feb. 18 stated:
Although steel ingot production last week dropped 185 points to 53%,
consumption of finished steel apparently has not yet made a corresponding
decline.
Sheet mills continue operating at 70%,strip mills at 65. Tin plate mills
are down 15 points to 70. Shipments to automobile, agricultural implement and manyyniscellaneous manufacturing interests are well sustained.
Pig iron producers have specifications for more tonnage in the 28 days this
month than in the 31 in January.
The reaction in raw steel output following a rise from 28% to 543%
within nine weeks is not disconcerting to steelmakers, who did not expect
the improvement to carry up to the year's peak in one continuous sweep.
Production has been scaled down to confrom more closely to demands on
finishing mill capacity, in line with a conservative inventory policy. Consumers have placed practically all the material they will require this quarter
and under the steel code orders for second quarter cannot be accepted until
March 1.
Prices were the subject of a lengthy discussion last week, with the prospect
that the most to be expected from the standpoint of producers is that present
levels will be continued when announced this week.
Automobiles are being sold almost as fast as they can be made, and the
margin between output and dealers' stocks now is abnormally small. Last
week 82,000 units were built, nearly 4,000 more than In the preceding week.
February schedules call for 375,000, and March is expected to top 400,000.
January's 306,000 units in the United States and Canada was the largest
for that month in 10 years, excepting 1929 and 1926. Ford's world production was the highest for the month in six years.
Steelmakers look forward to early clarification of several national issues,
important to the market's future. First, is the gold-clause case, the uncertainty of which is advanced by many consumers as a reason for their
delaying purchases. Final action on railroads' petition for a 10% increase
freight rates is anticipated in March or April. and the Supreme Court's
decision on railroad pensions also is expected shortly.
On the labor front also there are some uncertainties, and small strikes in
metal-working plants increased last week. Out of the civil war which the
Amalgamated assocition has been plunged by demand from the rank and
file group for more agressive action may possibly grow a program by the
American Federation itself to organize steel. But in Washington it is
believed there will be no general strike in either this or the automobile
Industry this spring, but sporadic drives at vital centers.
Railroads, whose major activities are in abeyance for the present, are
ordering considerable material for repairs. Freight car awards were the
best in some weeks, the Northern Refrigerator Co., Grand Rapids, Mich..
placing 500 refrigerator cars, and Cincinnati. New Orleans & Texas Pacific.
300 steel and wood box cars. Virginian is inquiring for 2,000 tons of rails.
In the aggregate, railroad's orders for structural material for small bridge
repairs and replacements are heavy. The Pennsylvania has applied for
Public Works Administration funds to eliminate 40 New Jersey grade cross-
1228
Financial Chronicle
lugs. Structural shape awards, 11,000 tons, compared with 20,305 tons in
the preceding week.
The Government will take bids about April 1 on 10,000 tons of structural
steel for a dam at Alton, Ill. The Navy has awarded 1,440 tons of armor
plate. In barge inquiries at Pittsburgh are potential requirements for 5,000
tons of plates.
"Steel's" London correspondent cables British output of steel ingots and
castings in January was up 16% to 757,800 gross tons, and pig iron up
1.5% to 521,200 tons.
Pittsburgh steelworks operations last week dropped 5 points to 39%;
Chicago, 4 to 63; Cleveland, 5 to 77; Wheeling, 3 to 87. Detroit held at
100; eastern Pennsylvania, 31; New England,63; Buffalo,45. Birmingham
advanced 2334 to 5554, and Youngstown, 2 to 60.
"Steel's" iron and steel price composite is reduced 2 cents to $32.54 by a
reduction in compressed sheet scrap at Detroit; the finished steel index
holds at $54, while the scrap composite is up 10 cents to $11.75 on an increase at Chicago.
Steel ingot production for the week ended Feb. 18 is
placed at about 52% of capacity, according to the "Wall
Feb. 23 1935
Street Journal" of Feb. 20. This compares with 54%
in the previous week, and a shade above 54% two weeks ago.
The "Journal" went on to say that:
U. S. Steel is estimated at approximately 47%, against 48% in the
week before, and 47% two weeks ago. Leading independents are credited
with 55%, compared with 58% in the preceding week, and a little under
59% two weeks ago.
The following table gives the percentages of production for the nearest
corresponding week of previous years, together with the change, in points
from the week immediately preceding:
U. S. Steel
Industry
1935
1934
1933
1932
1931
1930
1929
1928
1927
52
42
20
2654
5034
81
47
38
—2
+234
+ .35
— 54
+1
+114
8835
+134
84
11:114
—I
-I-244
--I
+3
Independents
55
4434
23
16.26% +1 2634
.52
—1
49
77
8534 +2
90
+1
86
9078
91
-1-27535
—3
+2
+1
--+2
+1
+2
—2
+234
Current Events and Discussions
The Week with the Federal Reserve Banks
The daily average volume of Federal Reserve bank credit
outstanding during the week ended Feb. 20, as reported 77
the Federal Reserve banks was $2,466,000,000, a decrease
of $1,000,000 compared with the preceding week and of
$124,000,000 compared with the corresponding week in 1934.
After noting these facts, the Federal Reserve Board proceeds
as follows:
On Feb. 20 total Reserve bank credit amounted-to $2,448,000,000, a
decrease of $2.000,000 for the week. This decrease corresponds with a
decrease of 863,000.000 in Treasury cash and deposits with Federal Reserve
banks and an increase of $33,000,000 in monetary gold stock, offset in part
by increases of $65,000,000 in member bank reserves balances. 312.000.000
in money in circulation, and $13,000,000 in non-member deposits and other
Federal Reserve accounts and a decrease of $3,000,000 in Treasury and
National bank currency.
Relatively small changes were reported in holdings of discounted and
purchased bills, United States Government securities and industrial
advances.
Beginning with the week ended Oct. 31 1934, the Secretary
of the Treasury made payments to three Federal Reserve
banks, in accordance with the provisions of Treasury regulation issued pursuant to subsection (3) of Section 13-B of
the Federal Reserve Act, for the purpose of enabling such
banks to make industrial advances. Similar payments have
been made to other Federal Reserve banks upon receipt of
their requests by the Secretary of the Treasury. The amount
of the payments so made to the Federal Reserve banks is
shown in the weekly statement against the caption "Surplus
(Section'13-B)" to distinguish such surplus from surplus
derived from earnings, which.,is shown_ against the caption
"Surplus (Section 7)."
The statement in full for the week ended Feb. 20, in comparison with the preceding week and with the corresponding
date last year, will be found on pages 1264 and 1265.
Increase (4-) or Decrease (—)
Since
Feb. 20 1935 Feb. 13 1935
Feb. 21 1934
Bills discounted
6,000,000
Bills bought
6.000,000
U. S. Government securities
2,430,000,000
Industrial advances (not including
13,000,000 commitments—Feb. 20) 19,000,000
Other Reserve bank credit
—12,000,000
Total Reserve bank credit
2 448,000,000
Monetary gold stock
8 489,000,000
Treasury and National bank currency_2,522,000,000
—1,000,000
+1,000,000
—2.000,000
—60,000,000
—69,000,000
—2,000,000
+19,000,000
—30,000,000
—2,000,000 —144,000,000
+33,000,000 +1,286,000,000
—3,000,000 +221,000,000
Money in circulation
5,442,000,000 +12,000,000
+08,000,000
Member bank reserve balances
4,645,000,000 +65,000,000 +1,815,000,000
Treasury cash and deposits with Federal Reserve banks
2,932,000,000 —63,000,000 —567,000,000
Non-member deposits and other Federal Reserve accounts
440,000,000 +13,000,000
+17,000,000
Returns of Member Banks in New York.City...and
Chicago—Brokers' Loans
'
Below is the statement of the Federal Reserve Board for
the New York City member banks and also for the Chicago
member banks for the-current week, issued in advance of
the full statement of the member banks, which latter will
not be available. until the coming Monday:— The New York
City statement formerly included the_ brokers' loans of
reporting member banks and showed not only the total of
these loans but also classifiedthem so as to show the amount
loaned for.,itheir "own I account" and the amount loaned
for"account of Mt-Of-town banks," as wellas the amount
loaned "for the account of —others.".--- On Oct. 24 1934 the
statement was revised to show separately loans to brokers
--rk and Outside New York,loans on
and-dealers in- New -Yo
securities to others, acceptances and commercial paper,
obligations fully guaranteed both
lo
--ans on real estate,
as—to principal and interest by the United States Gavarn-
ment. This new style, however, now shows only the loans
to brokers and dealers for their own account in New York
and outside of New York, it no longer being possible to get
the amount loaned to brokers and dealers "for account of
out-of-town banks" or "for the account of others," these
last two items now being included in the loans on securities
to others. The total of these brokers' loans made by the
reporting member banks in New York City "for own account"
including the amount loaned outside of New York City,
stood at $600,000,000 on Feb. 20 1935, a decrease of
$23,000,000 over the previous week.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES
New York
Feb. 20 1935 Feb. 13 1935 Feb. 21 1934
Loans and investments—total
7,307,000,000 7,392,000,000 7,096,000,000
Loans on securities—total
1,410,000,000 1,437,000,000 1.769,000,000
To brokers and dealers:
In New York
Outside New York
To others
542.000,000
58.000,000
810,000,000
Accepts, and commercial paper bought
Loans on real estate
Other leans
664,000,000
59,000,000
814,000,000
744,000,000
46,000,000
079,000,000
227,000,000 222,000,0001
131,000,000 131,000.00011,707,000,000
1193.000,000 1.198,000,000
U. S. Government direct obligations..-3,090,000,000 3.117,000,000 2,553,000,000
Obligations fully guaranteed by United
States Government
275,000,000 277039.00011,067,000,000
Other securities
981,000,000 1,010,000.0001
Reserve with Federal Reserve Bank.._ _1,826,000,000 1,765,000,000
Cash In vault
57,000,000
53,000,000
850,000,000
42,000,000
Net demand deposits
Time deposits
Government deposits
6 882,000,000 6,864,000,000 5,368,000,000
621,000.000 618,000,000 686,000.000
574,000,000 623,000.000 717,000,000
Due from banks
Due to banks
77,000,000
72,000,000
76,000,000
1,985,000,000 1,048,000,000 1,320,000.000
Borrowings from Federal Reserve Bank_
Loans and investments—total
Chiesao
1,686,000,000 1,655,000,000 1.404,000,000
Loans on securities—total
230,000,000
231,000,000
278,000,000
To brokers and dealers:
In New York
Outside New York
To others
26,000.000
25,000,000
179,000.000
26,000,000
24,000,000
181,000,000
16,000,000
33,000,000
229,000,000
51,000,000
18,000,000
224,000,000
49,000,0001
19,000.000) 293,000,000
214,000,0001
Accepts, and commercial paper bought
Loans on rea lestate
Other loans
U.S. Government direct obligationa
871,000,000
Obligations fully guaranteed by United
States Government
78,000,000
Other securities
214,000,000
841.000.000
Reserves with Federal Reserve Bank.... 388,000,000
Cash in vault
35,000,000
388,000,000
38,000,00(1
Net demand deposits
Titre deposits
Government deposits
Due from banks
Due to banks
553.000,000
81,000,0001 280,000,000
221,000,0001
306,000.000
41,000,000
1,540,000,000 1,503,000,000 1,1314,000,000
374,000,000 386,000,000 357.000,000
43,000,000
43,000,000
69,000,000
161,000,000
108,000,000
495,000,000
165.000.000
491,000,000
320,000.000
Borrowings from Federal Reserve Bank_
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week
As explained above, the statements of the New York and
Chicago member banks are now given out on Thursday,
simultaneously with the figures for the Reserve banks
themselves and covering the same week, instead of being
held until the following Monday, before which time the
statistics covering the entire body of reporting member banks
in 91 cities cannot be complied.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with the close of business Feb. 13:
Financial Chronicle
Volume 140
The Federal Reserve Board's condition statement of weekly reporting
member banks in 91 leading cities on Feb. 13 shows increases for the week
of $102,000.000 in net demand deposits and $37,000,000 in total loans and
investments, and decreases of $43,000,000 in reserve balances with Federal
Reserve banks and 888,000.000 in Government deposits.
Loans on securities to brokers and dealers in New York City increased
$30,000,000 at reporting member banks in the New York district and
$28,000,000 at all reporting member banks; loans on securities to brokers
and dealers outside New York City increased $2,000,000; and loans on
securities to others declined $7.000,000 in the New York district and
$6,000,000 at all reporting banks. Holdings of acceptances and commercial
paper bought and of real estate loans showed little change for the week,
while "other loans" increased $27,000,000 at reporting member banks in
the New York district, $5,000,000 in the Boston district and $18,000,000
at all reporting member banks,and declined $5,000,000 in the San Francisco
district.
Holdings of United States Government direct obligations declined $13,000.000 at reporting member banks in the New York district, $9.000,000
in the Boston district, $8,000,000 in the Dallas district and $29,000,000 at
all reporting member banks, and increased $9.000,000 in the San Francisco
district; holdings of obligations fully guaranteed by the United States
Government increased $7,000,000 in the Dallas district, $4,000,000 each
in the Philadelphia and San Francisco districts and $17,000,000 at all
reporting member banks; and holdings of other securities increased $7,000,000 in the Chicago district, $5,000,000 in the Cleveland district and
$8,000,000 at all reporting banks.
Licensed member banks formerly included in the condition statement of
member banks in 101 leading cities, but not now included in the weekly
statement, had total loans and investments of $1,235,000,000 and net
demand, time and Government deposits of $1,418,000,000 on Feb. 13, compared with $1,225,000,000 and $1,386,000.000, respectively, on Feb. 6.
A summary of the principal assets and liabilities of the reporting member
banks, in 91 leading cities, that are now included in the statement, together
with changes for the week and the year ended Feb. 13 1935, follows.
Increase (+) or Decrease (—)
Since
Feb. 14 1934
Feb. 13 1935
Feb. 6 1935
S
Loans and investments—total_ __18,245,000,000
+37,000,000 +1,153,000,000
Loans on securities—total
3,016,000,000
+24,000,000
—515,000,000
To brokers and dealers:
In New York
Outside New York
To others
707,000,000
165,000,000
2,144,000,000
+28,000,000
+2,000,000
—6,000,000
—53,000,000
+20,000,000
—482,000,000
428,000,000
969,000,000
3,154,000,000
+18,000,0001
Accepts, and com'l paper bought
Loans on real estate
Other loans
—1,000,0001
--204,000,000
U.S. Govt. direct obligations
7,198,000,000
Obligations fully guaranteed by the
United States Government
633,000,000
Other securities
2,847,000,000
—29,000,000 +1,331,000,000
Reserve with Fed. Res. banks
Cash in vault
3,450,000,000
292,000,000
—43,000,000 +1.440,000,000
+57,000,000
+17,000.000
14,100,000,000
4,448,000 000
1,146.000,000
+102,000,000 +2,168.000.000
+2,000,000 +104,000.000
--88,000,000 +145,000,000
1,860,000,000
4,422,000,000
+59,000,000 +447,000,000
+59,000.000 +1.218.000,000
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. R. banks
1,000,000
+17,000,000 +541,000,000
+8,000,0001
+1.000,000
—9,009,000
Sir Arthur Samuel, Former Financial Secretary of
British Treasury, Views United States Gold Ruling
As "Moral" Default
Sir Arthur Michael Samuel, former Financial Secretary
of the Treasury, was reported in Associated Press advices
from London on Feb. 20 as stating that "stripped of jurisdical niceties, the effect of the gold clause verdict of the
United States judges is that words have no meaning." The
Associated Press advices added:
Sir Arthur had been asked repeatedly in Parliament by other members
for his opinion of the Supreme Court verdict. Finally he declared in a
statement.
"The verdict destroys the terms of contracts expressed in explicit language, and opertive in United States territory.
The verdict destroys the
reliance by Europe upon any contract of the United States upon which
to base stabilization of exchange essential to the restoration of international
trade. The moral default by the United States Government upon its
Liberty bonds, which the verdict makes obvious, deprives the United
States of any excuse for criticising the action of her European war debtors."
Proposal to Nationalize Canadian Banks Defeated in
House of Commons—Plan Opposed by Finance
Minister E. N. Rhodes
A proposal to nationalize all Canadian chartered banks and
the Bank of Canada, (Canada's central bank,) was rejected
in the House of Commons on Feb. 4 by a vote of 89 to 12.
The proposal was opposed by E. N. Rhodes, Finance
Minister of Canada, who, according to Ottawa advices,
Feb. 4, to the Toronto "Globe" of Feb. 5, declared that the
plan would involve an addition of hundreds of millions of
dollars to the National debt. The advices added:
Mr. Rhodes also defended private ownership and public control of the
Bank of Canada. asserting that "we have all the advantages of complete
Government operation with none of those numerous disadvantages that
would follow if the Government attempted to operate a bank of this
character."
First Silver Dollar to Be Issued by Canada May 6—To
Be Known as "George Dollar"
On May 6, the 25th anniversary of the aceession to the
Throne of King George V. of England, the first silver dollar
will be issued by Canada to commemorate the occasion.
Dies for the printing of the coin, which will be known as the
"George Dollar," will be received in the latter part of March
1229
from England, we learn from Canadian Press advices from
Ottawa, Feb. 7. The first minting of the new dollars is
expected to involve about 100,000 coins. A description of
the silver dollar, according to the Ottawa (Canadian Press)
advices,follows:
The "George Dollar" will bear on the obverse a crowned effigy of his
Majesty, head and bust, with the inscription "Georgius V Rex Imperator
Anno Regni XXV."
On the reverse the design is a canoe laden with pelts, paddled by an
Indian and a "voyageur," passing a rocky islet on which are two jackpines. The word "Canada" is set above with northern lights, and, below,
the word "dollar" appears with the year, "1935."
Holidays on May 1
and Nov. 1
Announcement was made on Feb. 4 that the London Stock
Exchange will abolish the holidays on May 1 and Nov. 1,
instituted about 140 years ago. In noting this, London
advices, Feb. 4, to the Montreal "Gazette" said:
London Stock Exchange Abolishes
Originally the Exchange was closed on these days for the Bank of England to balance its stock registers, and in consequence the transfer and
delivery of gilt-edged stocks was not possible.
As the Exchange is closed on Saturdays, the Stock Exchange Committee resolved that the closing of the "House" on May 1 and Nov. 1, is
no longer necessary.
Conferences on Greek External Loans—Greek Minister
of Finance and Bondholders Committee Fail to
Adjust Service Rate
—Eliot Wadsworth, the representative of the American
bondholders on the League Loans Committee (London), of
which ,Sir Austen Chamberlain is Chairman, has received a
cable informing him that the conferences which have taken
place in London between the Greek Minister of Finance and
representatives of the League Loans Committee (London),
the Council of Foreign Bondholders, London, and the
Association Nationale des Porteurs Francais de Valeurs
Mobilieres, Paris, have not led to a satisfactory result. In
noting the foregoing, an announcement issued Feb. 21 by
Speyer & Co. said:
The Greek Minister of Finance offered to continue the transfer of 35%
for the service of the Greek external loans during the financial year ending
March 31 1936.
4,f
The representatives of the above committees, after examinimrthe'lfinancial position of Greece, and noting the improvement which has taken
place since 1933, were of the opinion that it was within the capacity of the
Greek Government to transfer 50% for the service of the external loans.
The Minister of Finance stated that in his opinion Greece could not comply
with the committees' demands and has returned to Athens.
The text of the communique sent to Mr. Wadsworth was
made available as follows by Speyer & Co.:
Greek External Debt Service—League Loans Committee, the Council of
Foreign Bondholders and the Association Nationale des Porteurs Francais
de Valeurs Mobilieres announce for the information of holders of Greek
external loans that the Greek Government have offered to transfer 35%
of the interest on these loans during the Greek financial year 1935-36 on
the same basis as were agreed for the year 1934-35. As will be seen from
the attached correspondence, the above mentioned bondholders' associations are unable to recommend that the bondholders should accept this
proposal:
February 13 1935.
The Right Honorable Sir Austen Chamberlain, K.G., M.P.,
London, England.
Sir—Following our duscussions on a new arrangement for the service of
Greek public debt, I have the honor to request you to be so good as to make
the committees of the representatives of the bondholders the following
communication:
The Greek Government, in spite of their earnest desire to conciliate
their views with those of the committees, met under your presidency,
regret to be compelled,after a thorough reconsideration of the circumstances,
to maintain the standpoint I had the honor to put forward at our meetings
and in my memorandum of Feb. 5.
2. As I have already explained, Greece is very keen to maintain and
promote her credit, not only for moral reasons, but also because she considers that her own interests impose such a policy. Necessity of primary
character compels her, however, not to assume obligations which she does
not feel sure that she could fulfil and the Greek Government are convinced
that they cannot guarantee the payment of a percentage exceeding 35%
on the interest of her external public debt for the year 1935-36, which they
are prepared to put at the disposal of thier creditors at once.
3. At the meetings of the committees of bondholders, yourself and your
colleagues have adopted an opposite view, in pointing to the improvement of the economic and financial situation of Greece, since the conclusion
of the last agreement. I had the honor to explain that this improvement,
which I did not deny, has been already discounted and it is only on the
basis of her improved situation that Greece has been able to pay on her
external public debt 273 % for the year 1933-34 and 35% for the year
1934-35. I had also explained that the continuation of the improvement
seems, in my opinion, quite improbable, and that I expect rather a deterioration in the present situation.
4. The fact that my predecessor left London in 1933 without being
able to offer a percentage higher than 20-22%, constitutes an additional
proof of the argument that the subsequent offer of 27 % and 35% meant
that by such an increased offer the improvement of the situation has been
discounted.
As a matter offact, it was only when in the month of November 1933
such an improvement in the whole economic and financial situation of the
country was rendered evident, that the Greek Government were able to
make their increased offer of percentages.
5. I am to add that the service of the external public debt, on the basis
of the arrangement of November 1933, represented 793 millions of drachmae,
and this amount has been included in the budget of 1934-35. Some differences connected with the service of the debt having been settled in the
meantime, and in view of the contemplated arrangement for the participa-
1230
Financial Chronicle
Lion of Greece in the Ottoman debt, the budget of 1935-36 will bear an expenditure of 915 million drachmae, which corresponds to an increase of
122 miWon drachmae.
6. In explaining my above-mentioned memorandum, commented at
the meeting of the 5th instant, I took the opportunity to insist on the
unfavorable position of our trade balance, as well as on the way that the
deficit of the balance of our general payments is to be met. The situation
with regard to these payments, presents, mutatis mutandis, many analogies
to that of Great Britain, and in judging such a situation, it would be just
not to overlook the considered attitude in the matter taken by the British
Government as a creditor as well as a debtor.
7. It is not superfluous to make herewith the remark that, although
Greece is trying her utmost to satisfy the claims of her creditors, other
countries are disposing of their national income for Improving social conditions at home or reinforcing their armaments. Greece not only abstained
to undertakesocial experiments of essential character, but she did not follow
thefexamplefof neighboring countries, in proceeding until now to expenditure assuring her own national defence. On the other hand, Greece is the
only country which, in spite of the depreciation of its national currency by
97% (in gold terms) and by 60% (in comparison of its value in 1932), pays
only 75% for the service of her internal public debt. At the same time
she:(1 11d not pay to her citizens for damages suffered by them in the war or
forobandoning their property in Turkey more than 7-8 on such damages
or estimated value of abandoned property.
8. In view of all the above reasons and those expounded in my memorandum which I had the honor to develop at the meetings of the committees
representing the bondholders, the Greek Government earnestly hope that
yourself and your colleagues will recognize that they are justified in maintaining the offer of a percentage of 35% on the interest of their external
public debtifor the forthcoming financial year. This decision of the Greek
Government does,:not exclude, however, that in the event of a further improvement of the economic and financial situation, the country could
proceed, on their own initiative and judgment, to an adequate increase of
the annual percentage offered.
I am, sir, with the highest consideration, yours faithfully,
PESMAZOGLOU, Minister of Finance of Greece.
February 18, 1935.
His Excellency Monsieur Pesmaxoglou, Finance Minister of Greece.
London, England.
Your Excellency:
On behalf of the League Loans Committee, the Council of Foreign
Bondholders and the Association Nationale des Porteurs Francais de
Valeurs Mobilieres, I have the honor to acknowledge receipt of your letter
of Feb. 13 and to reply as follows:
"In this letter Your Excellency, on behalf of the Greek Government, has
offered to transfer 35% of the interest on the Greek External Debt during
the year 1935-1936, on the same basis as agreed for the year 1934-1935
under the arrangement announced on Nov. 17 1933. On the other hand we
on our side feel that in view of the notable improvement which has occurred
in all branches of Greek economy since 1933, when the previous arrange.
ment was negotiated, it would be natural to expect an increase in the
payment. We therefore suggested, in the course of the conversations which
we have had with you, that it would be well within the capacity of Greece
If the Greek Government transferred 50% of the interest during 1935-1936.
This would involve a payment of approximately £2,150,000, of which a
substantial portion would not need to be transferred outside Greece.
With regard to the possibility of transfer, the improvement in the Greek
balance of trade, in the balance of payments, and in the exchange reserves
of the Bank of Greece has been so great that for an interest payment of
50% no problem of transfer can be reasonably said to arise. As to the
Provision of Drachmae:—In the first place it must not be overlooked that
even if Greece met 100% of the interest on her entire External Debt, the
revenues assigned to the International Financial Commission—the yield
of which is increasing—would cover this payment, not only on the secured
but also on the unsecured loans, with a margin of over 60% to spare.
These revenues were assigned specifically to the service of the secured loans
as part of the consideration on which those loans were raised; and the
Greek Government have no right to divert them to other purposes without
the assent of the bondholders. Apart altogether from this, the Greek budget
for 1934-1935 appears likely to balance or even to yield a small surplus,
Instead of the large deficit which the Greek representatives in 1933 maintained would occur if Greece met 35% of the interest for that year. This
result has been achieved in spite of the fact that the Greek Government
since 1933 have increased their expenditure on items other than the External
Debt by a sum which exceeds several times over the 350 million drachmae
required to make up the difference between the 35% which the Greek
Government now offer and the 50% which the bondholders' representatives
propose. Further, there are in existence outside the budget certain moneys,
amounting to a sum greatly in excess of 350 million drachmas which the
Greek Government could make available for meeting the debt service If it
were the case that their ordinary budget revenues were insufficient. It
may be added that owing to the appreciation of tho drachma in relation to
the pound and dollar which has occurred in the past year, a payment of
35% in 1935-1936 on the loans in question—as offered by the Greek Government—would actually require a smaller sum in drachmae than it did in
1934-1935 on the same loans. In view of these considerations and of the
fact that every index of economic activity which has been examined is
conclusive as to the improvement in the condition of Greece, we on our
side are not convinced that a larger payment than the 35% now offered is
beyond the Greek Government's power.
We feel moreover that the great consideration which the bondholders
have hitherto shown to Greece in her difficulties entitles them now to some
share in her increased prosperity. We therefore regret that we are unable
to recommend that the bondholders should be satistied with the Greek
Government's present offer. Believe me. Your Excellency,
Yours very truly,
AUSTEN CHAMBERLAIN.
Colombia Extends Fiscal Decrees—Retains Regulations
Which Saved Banks in 1932
The following Bogota cablegram Feb. 15 is from the
New York "Times":
The emergency financial decrees of former President Enrique Olaya
Herrera, which averted the collapse of Colombian banks in 1932, were
extended in part for two years by a legislative decree signed by President
Alfonso Lopez to-day. They would have expired to-morrow.
Limitation of interest rates on private debts, mortgages and public
Internal bonds is continued. The tax of 10% on amounts sent abroad for
living expenses of absent Colombians Is retained.
The Bank of the Republic is authorized to make one-year mortgage
loans to commercial banks. Banks are no longer obligated to accept half-
Feb. 23 1935
payment:of debtsiin national internal bonds. Theicourts are no longer
virtually closed to foreclosure actions.
New Requirements of Colombia Board of Control
Incident to Application by Importers for Foreign
Exchange in Payment of Merchandise
ThelConsulate Generaltof/Colombia made public under
datejof Feb. 19 the following resolution on imports adopted
by the Board of Control:
Bogota. Jan. 29 1935.
The Board!of Centro1Tof Exchange and Exports. Resolves
1. From March 1 of the present year it will be required as an essential
condition for the approval of applications made for foreign exchange In
paymentlof imports, that alcopy of the order for the goods to be imported.
be presented to the Board of Control, together with the other documents
already required.
2. In order thatiapplications made after March 1 1935, may be accompanied by the respective order all the Importers of the country are required
to send in original and duplicate all orders pending delivery on the date
of the present resolution and of those made thereafter, indicating, together
with the usual details, on all orders the following specifications:
Name of the exporters.
quantity, class„of merchandise and price.
otal approximate value of the merchandise.
Shipping date.
Date or dates on which payment for the merchandise should be made.
3. Ilse Boardiof Control will receive the two copies referred to herein
and will return one to the interested party with the notation that it has
been duly presented. The copy that is returned to the interested party
with the notation mentioned above must be attached to the application
for the payment of the imported merchandise, with which the importer
will have complied with the requirements of the present Resolution.
4. Should the Importer not present at the respective office of the Board
of Control the copies of the orders that he has sent abroad during the
coming month of February, or if in the future he shall fail to deliver the
copies of such orders within ten days following the date on which the order
for merchandise is made. the Board of Control will understand that the
importer will not make application for foreign exchange in payment of the
merchandise and if such application Is made the permit shall not be
considered.
(Signed) A. BAYON. Chief of Office.
Approved by the members of the Consultative Board of the Office of
Exchange and Exports, at the meeting held on Jan. 30 1935.
(Signed) JUAN SAMPER SORDO.
JORGE DURANA.
SAMUEL WILLIAMSON.
—4,—.
Argentina to Call Bonds Held in UnitediStates and
Europe
Under date of Feb. 19 a Buenos Aires cablegram to the
New York "Times" said:
Argentina will call in and pay at par on March 1 all internal credit
bonds of 1909 now held in the United States, France and Germany,
although they would not be due until 1940. They are part of a 5%
issue totaling £10,000,000 that was floated in New York, London, Paris
and Berlin in 1909. The London portion was converted to a 41
/
2% basis
last September.
Federico Pinedo, Minister of Finance, will pay the called bonds with
the proceeds of the 41
/
2% internal loan of 50,000,000 pesos floated last
November. He is said to be prompted less by the small saving effected
by the difference of /
1
2 of 1% in the annual interest rate than by a
determination to get Argentina off the list of 6% countries and onto
a 41
/
2% basis.
Argentine Chamber of Deputies Approves Plan for
Central Bank
The following from Buenos Aires Feb. 15 is from the New
York "Journal of Commerce."
The Chamber of Deputies approved of the central bank project and
the banking law with minor changes.
A sub-committee is now considering the project known as the Liquidation
Institute and has invited several former Ministers of Finance to partici.
pate in their studies. The Liquidation Institute is to he created in
connection with the central bank as a medium to aid some banks through
a transfer of funds from the central bank against frozen assets. This
will only be done, however, in combination with rediscounted documents and bonds.
Dr. Enrique Uriburu, a former Finance Minister, appeared before this
committee and vigorously defended the central bank project and the
other banking laws submitted by the Government. Ile said it was owing
to the fact that the establishment of the central bank had been delayed
that the necessity had arisen for a liquidation institute. Dr. Uriburu
commented on the fact that there could be no Government or political
interference with the bank, inasmuch as the overwhelming majority of
the directorate represent general banking interests. This meant that the
Government had turned over to the bank many of the powers which It
formerly held.
Dr. Uriburu strongly supported the Mobilization Institute project,
pointing out that this plan would make possible the subdivision of the
hest lands in the country precisely at a stage of agricultural recuperation
when more efficient closer settlement could be undertaken.
Orders of Bank of Brazil on Exchange
Supplementing the reference in these columns last week
(page 1062) to the action of the Bank of Exchange in freeing
exchange from restrictions we quote the following cablegram
from Rio de Janeiro Feb. 13 to the New York "Times."
The Bank of Brazil will issue orders to-morrow forbidding the use of free
exchange for anything but imports except with special authorization by
the Government.
This ruling is likely to create a condition like that existing in 1033,
when restrictions similar to those now contemplated created the so-called
black exchange.
Volume 140
Financial Chronicle
Nicaragua Bans Exchange Deals
A cablegram from Managua, Nicaragua, Feb. 6 is taken
asfollows from the New York "limes."
The Foreign Exchange Board to-day prohibited free circulation of foreign
currency, bills or coin, in Nicaragua. The National Bank, Governmentowned, is the only institution authorized to purchase or sell such money,
meaning in practice United States currency. The object is to stop street
exchanges where dollars are at a premium of 20% over the official rate.
Haiti Votes to Abolish United States Financial Control
—Referendum Backs President's Plan to Buy
National Bank
From the New York "Herald Tribune" we take the
following (United Press)from Port au Prince, Haiti, Feb. 11:
President Stenio Vincent's effort to free Haiti from American financial
control had a popular indorsement of more than 400 to 1 to-day, with only a
few remote localities unreported in yesterday's plebiscite.
Only 1,158 votes were cast in support of the Senate's rejection of the
contract to purchase the National Bank of Haiti from American interests,
while 436,838 backed the Executive.
Although the opposition had branded the referendum as unconstitutional,
and declared in advance it would not be bound by the result, the overwhelming weight of public opinion behind the President will undoubtedly
have its effect.
President Vincent took the step with the support of the Chamber of
Deputies, which approved the contract. He was acclaimed everywhere
yesterday. Port au Prince gave him 83,254 votes against 228.
SEC to Appeal Ruling of Federal Judge Caffey as to
Commission's Power in Injunction Cases
That the Securities and Exchange Commission will appeal
from the decision made on Feb. 14 by Judge Francis G.
Caffey in the United States District Court in New York
ruling that the Commission is without authority to institute
on its own initiative and authority injunction proceedings
against individuals or corporations, was made known on
Feb. 16 by John P. Callahan, Regional Director of the
SEC. Judge Caffey's ruling made as a result of injunction
suits against the Eurydice Gold Mininp Co. and the Stock
Market Finance Co., was referred to in these columns on
Feb. 16, page 1065. In his announcement of Feb. 16 Mr.
Callahan said:
Judge Caffey. in dismissing both cases, did not consider them on their
merits but rendered his opinion on the jurisdictional points that the appearance of the United States is essential in all actions instituted by the
SEC under the Securities Act of 1933 and the Securities Exchange Act
of 1934. The SEC will seek an appeal on the theory that Congress in both
acts conferred upon the commission the right to bring suits in its own name
and the right to be represented by its own counsel.
Renewal of German Standstill Agreement—Advices
Received by S. Stern, Secretary of American Committee of Short-Term Creditors—Cut in Interest
Agreed Upon
An extension for one year has been granted to Germany
on her "standstill," or short-term foreign credits, amounting to between $700,000,000 and $800,000,000. United
Press advices from Berlin Feb. 16 had the following to say
in the matter:
At the same time it was announced, in connection with the agreement
with foreign creditors, that the Reich's internal economic situation has
improved to an extent where the liquidity of her general debts "is not a
problem for the time being."
The "standstill" agreement, reached after conferences with foreign
creditors since Feb. 4, extended a pact that would have expired at the end
of this month. The standstill credits, representing advances by foreign
banks to German banks and industry, were originated in 1931, following
the Reich's credit collapse of the previous year.
To-day's agreement granted Germany interest cuts of 3i of 1% on certain classes of debts and of
of 1% on others.
A major point insisted on by American delegates to the conference,
the use of registered marks, will be continued. Registered marks are sold
abroad for use in Germany at less than regular marks.
It is also reported that the agreement specified that Swiss
banks shall be excepted from any reduction of interest on
their German credits.
S. Stern, Vice-President of Chase National Bank, as
Secretary of the American Committee of Short-Term Creditors of Germany, received the following cablegram on Feb.
16, following the adjournment of the fifth annual meeting
between foreign creditors and German bankers held at Berlin:
After a series of meetings lasting approximately two weeks, attended by
Jae various creditors' committee delegates representing Czechoslovakia,
France, Great Britain, Holland, Italy, Sweden, Switzerland and the
U. S. A.. the fifth anunal meeting between foreign creditors and German
bankers was adjourned, after concluding the credit agreement for 1935,
at 2 p. m. on Feb. 16. The American creditors were represented by F. Abbott Goodhue, President of the Bank of the Manhattan Co., and Harvey
D. Gibson, President of Manufacturers' Trust Co.. as delegates, assisted
by Joseph C. Rovensky, Vice-President of the Chase National Bank, all
of New York. They have recommended to American banks that all adhere
to the new agreement.
The Conference opened with a presentation of general conditions by the
German Bankers' Committee, which pointed out that there has been a
considerable improvement in Germany's internal economy during the past
year and that, in spite of the scarcity of certain raw materials, not only
has there been a marked rise in production, with a corresponding decrease
In unemployment, but public finances have improved, financial failures
have materially decreased, and German banks and German companies
1231
generally have shown a substantial improvement in condition. On the
other hand, it was pointed out that during the same period there has been
a large decrease in Germany's external trade, resulting in an export surplus
being converted into an import surplus, thereby creating an increasingly
difficult foreign exchange situation.
It appears that there has been a noticeable development during the past
year of a new type of foreign commerce between Germany and various
other countries by methods of barter. One of the most outstanding facts
which came to the attention of the delegates was the impressive reduction
Not only has there
in the debts covered by the credit agreement.
been a reduction during the year of approximately 520,000,000 reichsmarks,
but the amount presently outstanding has been reduced from 6,300,000,000
reinnsmarks in July 1931 to approximately 1,734,000.000 reichsmarks
outstanding as of Dec. 31 1934. Of this amount outstanding 430.000,000
reichsmarks or the equivalent of 8172,000,000 is due to American banks.
It is not contemplated that conditions will be such during the coming
year to permit a reduction in proportion to that of last year. The difficult
foreign exchange situation of Germany has made it necessary for all creditors to accept a further postponement of any capital repayment in their
own currencies.
Provision has been made, however, for a substantial reduction in unavailed-of credit lines, and the German Committee has clearly indicated
that any use of remaining unavalled-of credit lines will be confined to bills
drawn for the purpose of financing foreign trade in necessary commodities
such as foodstuffs and other raw materials, and that the type of bills so
drawn will all comply with the eligibility requirements of the Federal
Reserve Bank, evidence of such eligibility being satisfactory to the accepting bank.
A moderate reduction in the total amount of interest to be paid by
Germany during the coming year seemed reasonable in view of the lower
interest rates generally prevailing in the various world money markets.
and a satisfactory adjustment was made to that end.
The reduction of interest in the case of American banks amounts in the
aggregate to a little less than M of 1% per annum. The German Committee
expressed its desire to co-operate in so far as it is possible for it do so in
controlling any additional competition wtih the present registered mark.
and further expressed a willingness to co-operate with the various creditor's
committees in developing to the greatest practicable extent the use of the
registered mark for travel purposes, benevolent remittances, &c.
Some 25 points, partly suggested by different creditor delegates and
partly by the German Committee, were discussed during the various
sessions, all of which were settled to the general satisfaction of all concerned.
Forty-seven American banks adhered to last year's credit agreement,
which is due to expire on Feb. 281935. and all will be asked to again become
parties to the new agreement concluded to-day, which is to be in effect for
one year from March 1 1935. It was the opinion of those attending the
meetings that the adoption of a new agreement for the coming year was
highly desirable to all concerned.
From America's standpoint such an agreement would appear to be-most
beneficial not only to its banks but to industrial concerns and agriculture
as well. It is the vehicle by means of which foodstuffs, raw materials, and
manufactured products are financed in connection with American exports
to Germany.
The marked improvement in German business internally as reported by
the German Bankers' Committee and the excellent handling of its difficult
foreign exchange situation by the Reichsbank, encouraged the feeling that
the time may not be far distant when further yearly credit agreements will
no longer be necessary thereby enabling trade and finance to again be
conducted upon a more normal basis.
F. ABBOT GOODHUR
HARVEY D. GIBSON
Filing with SEC of Registration Statement by Conversion Office for Handling of German Foreign
Debts—Stewart C. Pratt Indicates That Distribution of Cash and Scrip Will Probably Be Delayed
Ten Days
Coincident with the announcement this week by the
Securities and Exchange Commission that the registration
statement filed with it by the Konversionskasse, the eonversion office established in Berlin for the handling of German foreign debts, has become effective, Stewart C. Pratt,
as Chairman of a committee acting for the fiscal and paying
agents of practically all of the German dollar obligations
involved, announced on Feb. 20 that it would probably be
about ten days before the distribution of the cash and scrip
offered in satisfaction of interest payments maturing on
these obligations between Jan. 1 and June 30 1934, both
dates inclusive, could be begun. Incident to Mr. Pratt's
announcement we also quote:
It was pointed out that this delay was unavoidable, as the prospectus
and other documents could not be printed or distributed nor various other
arrangements made incident to payment procedure until the registration
statement became effective.
The offer of the Conversion Office relates to interest payments becoming
due during the first six months of 1934 on approximately 116 issues of
German bonds, and amounts to 30% of such interest in cash, in dollars,
and 70% thereof in Reichsmark Scrip. This is contrasted with the offer
of 50% in cash and 50% in scrip made in February 1934, with respect
to interest payments for the last six months of 1933.
The German authorities are not at the present time making an offer
to repurchase the scrip. The registration statement refers to the intention
of the German Golddiskontbank to purchase the scrip at 67% of its face
value in dollars, but announces that the foreign exchange situation in
Germany does not permit such purchase to be made at the present time.
No indication is given as to when such purchase will be made. It will be
recalled that the scrip issued with respect to the interest payments for the
last half of 1933 was repurchased by the Golddiskontbank at about 50%
of its face value, until Sept. 15 1934, when this offer of repurchase was
withdrawn.
Holders of the unpaid coupons have the option of presenting their coupons
for the cash and scrip or of retaining them. The American Special Agents
have made no recommendation in the matter, leaving it entirely to the
individual judgment of the bondholders. Before any payment can be
made, the holder must receive a copy of the prospectus and then forward
his COUponS to the proper paying agents accompanied by a letter of
transmittal.
1232
Financial Chronicle
$11,044,405 of New Securities Effective Under Securities
Act of 1933 During January
The Securities and Exchange Commission announced
Feb. 19 that new securities with estimated total gross proceeds of 811,044,405, representing 18 issues registered in
13 statements became fully effective during January 1935
under the Securities Act of 1933. This compares with
$37 735,889 registered in 24 issues (17 statements) in December 1934 and $49,756,447 registered in 41 issues (35 statements) in January 1934. The Commission's announcement
added:
Of the total gross proceeds
.
of new issues registered during January 1935,
$1.729,750 were registered for the "account of others," $250,000 are
reserved for conversion purposes and $4,030 are to be exchanged for existing securities, leaving $9,060,625 presently to be offered for sale by the
Issuers. The net proceeds from these issues, as estimated by the issuers,
will amount to $7.742,992. The cost of selling and distributing is expected
to total $1,317,633 (14.5% of the gross proceeds). $1.164,344 (12.8% of
gross) for commissions and discounts to underwriters and agents and
$153,289 (1.7% of gross) for other selling and distributing costs, including
those in connection with the filing of the registration statements.
Sixty-six per cent of the month's total, as measured by gross proceeds,
has been registered by the financial and investment companies group
through five investment trust issues totaling $7,310,625. The utilities
group, represented entirely by a statement covering the preferred and
common stocks of one issuer, registered for the account of its parent company, accounted for $1,729,750 or 15.7% of the total. The extractive
group registered $1,750,000 or 15.8% of the entire amount now being offered
for sale, through the registration of five gold and silver mining company
issues totaling $1,085,000 (9.8% of the month's total) and one oil royalty
Issue amounting to $665,000 (6% of the total). There were no manufacturing company statements declared effective during the month.
The issuers, according to their registration statements, expect to sell
about one-third of their offerings directly to the public, about 1% to their
own security holders, and somewhat less than two-thirds to the public
through various underwriters and agents.
Of the $7,742,992 estimated net proceeds, the companies expectvto
expend $6,349,442(82%)for the purchase ofinvestment securities, $975,000
(12.7%) for the purchase of plant and equipment, real estate, &c., and
$57,167 (0.7%) for repayment of indebtedness. There will remain, according to the issuers' estimates, a balance of $274,012 (3.5%) available as
working capital.
In addition to the new security registrations, seven reorganization and
exchange statements became effective during January. Six were reorganization statements calling for $17.519,400 par amount of various bond issues
having an estimated market value of $6,040.070, and one was a statement
offering $844,000 par amount of new securities and a cash payment of
$22,500 in exchange for certificates of deposit representing old securities
with a face amount of $866,500 valued at $288,833.
TABLE 1-THE TYPES OF NEW SECURITIES INCLUDED IN 13 REGISTRATION STATEMENTS WHICH BECAME EFFECTIVE FOR ISSUE
DURING JANUARY 1935
Type of Security
Common stock
Preferred stock
Certificates of participation, warrants, .3tc
Mortgages and mortgage bonds_
Debentures
,
Short-term notes
Total
No. of
Issues
No. of
Units
Gross
Amount
9
5
2,918,030
298,000
$5,742,405
1.367,000
52.0
12.4
4
__
1.077,333
3,935,000
35.6
P. C. of
Total
__
18
$11,044,405
100.0
Note-Included in the above figures is a common stock issue registered through one
E-1 statement, with estimated gross proceeds of $104,030. of which $100,000 is to
be sold for cash and $4.030 is to be offered in exchange for existing bonds.
TABLE II-GROUP CLASSIFICATION OF ISSUERS THAT REGISTERED
NEW ISSUES DURING JANUARY 1935
Group
Extractive industriesGold and silver mines
Oil and gas wells
Manufacturing companies
Financial and investment companiesInvestment trusts
Others
Real estate
Transportation and communication_ _.
.
Electric light, power, gas and water_ _ _ _
Total
No. of
Stalemeets
No.
of
Issues
4
1
5
1
$1,085,000
665.000
9.8
6.0
5
6
7,310,625
66.2
1
1
1
2
2
2
104,030
150,000
1,729,750
0.9
1.4
15.7
13
18
1511.044.405
100.0
Per Cent
of
Total
Gross
Amount
TABLE III-REDUCTION OF GROSS AMOUNT OF SECURITIES REGISTERED TO NET PROCEEDS, INDICATING AMOUNTS NOT NOW
BEING OFFERED FOR SALE BY ISSUERS AND VARIOUS SELLING EXPENSES
Amount
Gross amount of securities registered
Not now offered for sale by issuersRegistered for "account of others"
Reserved for conversion
To be exchanged for other securities
511,044,405
1.983,780
Gross amount of securities to be offered for
sale by issuers
$9,060,625
Selling and distributing expensesCommission and discount to underwriters, Jo $1,164,344
Other selling and distributing expenses
153,289
Net proceeds
TABLE IV-THE USES TO WHICH THE ISSUERS INTEND TO PUT THE
NET PROCEEDS OF ISSUES REGISTERED DURING JANUARY 1935
Per Cent
of Total
Amount
Organization and development expenses
Purchase of-
$77,371
Real Estate
$5,000
975,000
6,349,442
5,000
Plant and equipment
Securities for investment
Intangible assets
Total purchase of assets
Increase of working capital
Repayment of indebtednessBonds and notes
Other debt
1.0
0.1
12.6
82.0
0.1
7,334,442
274,012
$57,167
Total repayment of indebtedness
Total
94.8
3.5
0.7
57,167
0.7
$7.742,992
100.0
TABLE V-CONTEMPLATED CHANNELS OF DISTRIBUTION OF
SECURITIES OFFERED FOR SALE
Gross
Amount
*Net After
Commission
and Discount
Per Cent
of
Gross
$80,000
2,670,000
6,310,625
$80,000
2,647,500
5,168,781
1.0
33.5
65.5
$9,060,625
*$7.896,281
100.0
To own security holders
To public directly by issuer
To public through various underwriters
Total
* Represents net after commissions and discounts but before other selling and
distributing expenses of $153,289.
TABLE VI-THE TYPES OF SECURITIES INCLUDED IN SEVEN'REGISTRATION STATEMENTS FOR REORGANIZATION AND EXCHANGE*
ISSUES WHICH BECAME EFFECTIVE FOR ISSUE DURING JANUARY 1935
Exchange Issues*
Reorganization Issues
Types!Security
No.
of
Issues
Par
Amount
$
Common stock
Preferred stock
Certificates of participation, warrants, Arc
Mortgage and mortgage
bonds
Debentures
Short-term notes
Certificates of deposit_.
Total
Approx. No.
Par
Market
of
Value z Issues Amount
$
$
1
844,000
288,883
1
544000
2515553
$
6
17,519.400 6,040,070
A
171510 400R am am
Approx.
Market
Value z
'Refers to securities to be issued In exchange for existing securities. z Represents actual market value and (or) 1-3 of face value where market was not available.
Note-Excluded from the above figures (but included in Table I) is a common
stock issue registered through one E-1 statement, with estimated gross proceeds of
$104,030, of which $100,000 is to be sold for cash and $4,030 is to be offered in
exchange for certificates of deposit for bonds having a par value of $402,000 and a
"1-3 of face" value of $134,333.
TABLE VII-GROUP CLASSIFICATION OF ORIGINAL ISSUERS OF
SECURITIES FOR WHICH REORGANIZATION AND EXCHANGE*
STATEMENTS BECAME EFFECTIVE DURING DECEMBER 1934
Reorganization Issues
Group
No.
of
Issues
Agriculture
Extractive industries
Manufacturing industries_
1
Financial and investment
companies
Merchandising
Real estate
277
Construction
Transportation and communication
Service industries
Electric light, power, gas
and water
Par
Amount
2,750,000
Approx.
Market
Value z
770,000
13,919,400 5,057,570
850,000
Exchange Issues'
Approx. No.
Market
of
Par
Value z Issues Amount
1
844,000
288,883
212,500
79 17.519,400 6.040,070
Total
1
844,000 288,883
• Refers to securities to be issued in exchange for existing securities.
value
z Represent actual market
and (or) 1-3 of face value where market was not
available.
a Includes 74 real estate issues guaranteed by the Metropolitan Casualty Insurance Co. and called for deposit by the Unified Debenture Corp.; the single class of
certificates of deposit of that issuer is to be issued against the various old bonds.
Filing of Registration Statements Under Securities
Act of 1933
The Securities and Exchange Commission announced
on Feb. 20 the filing of five additional registration statements (Nos. 1287-1291) under the Securities Act of 1933.
The total involved is 85,566,250, of which $5,066,250 represents new issues. The securities involved are grouped
as follows:
Commercial and industrial issues
Investment trusts
Securities in reorganization
$816.250
4,250,000
500,000
The list of securities for which registration is pending,
as announced Feb. 20, follows:
$1,729,750
250,000
4,030
Total not now being offered for sale by issuers_
Total selling and distributing expenses
Per Cent of
Gross Offered
for Sale by
Issuers
Feb. 23 1935
100.0
12.8
1.7
1.317,633
14.5
$7.742.992
85.5
Distributors Group, Inc. (2,1287, Form C-1) of New York, seeking to
Issue 1.000.000 additional cumulative trust shares in the aggregate amount
of $4,250,000. The trustee is the City Dank Farmers Trust Co. of New
York.
New York Mine Co., Inc.(2-1288, Form A-1) of Providence, R. I., seeking
to issue 550,000 shares of 50-cen1 par value stock, of which 50.000 shares
will be issued on a basis of 50 cents a share to Chas. C. Plumb as part
payment for the mine, and 10,000 shares will be reserved for payment to
employees for services to be rendered, rho balance of 490,000 shares
are to be sold at 50 cents a share to Walker & Grow, underwriters, who
plan to offer them to the public at 57Y6 cents a share.
Volume 140
American Terminals et Transit Co. (2-1289, Form E-1) of Henderson.
Ky., seeking to issue $500,000 10-year income bonds in a plan of reorganization, to be exchanged for outstanding unsecured notes of Green
River Valley Terminal Co. and mine purchase contracts of Green River
Valley Coal Co.
State National Life Insurance Co. (2-1290, Form A-1) of St. Louis, Mo.,
seeking to issue 15,000 shares of $10 par common stock, to be offered at $25.
Mutual Industrial Bankers, Inc. (2-1291, Form A-1) of Newark, N. J.,
seeking to issue 10.000 shares of cumulative preferred participating no
par capital stock, to be offered at $12.50 a share.
In making public the above list the Commission said:
In no case does the act offiling with the Commission give to any security
Its approval or indicate that the Commission has passed on the merits of
the issue or that the registration statement itself is correct.
The last previous list of registration statements appeared
in our Feb. 16 issue, page 1063.
SEC Approves Amendments to Rules for Permanent
Registration of Securities
On Feb. 15 the Securities and Exchange Commission
announced two amendments to the rules which were approved
Feb. 12 1935, for permanent registration of securities on
National securities exchanges. As to the changes (which
apply to Form 10) the Commission said:
Following the announcement of the rules, it was brought to the attention
of the Commission that certain corporations which have no securities
presently listed had already undertaken audits and prepared provisional
applications for registration complying with the requirements of Form 7.
The Commission's new rules terminated immediately the right of such
corporations to obtain provisional registration, and the new rules have been
amended to permit provisional registration by such companies, the same as
by issuers oflisted securities, until May 15 1935.
The attention of the Commission was also directed to the fact that one
of its amendments to the instructions to Form 10 for corporations would
prevent companies which have no securities listed from obtaining any
registration until after the conclusion of the audit of their fiscal year ending
on or after Dec. 31 1934, unless financial statements for a three-year period
should be furnished, although such companies might otherwise comply
with the Commission's provisions for furnishing statements for only a
one-year period. By permitting the provisions for delay in filing financial
statements which are applicable to listed companies to apply to companies
having no securities listed, the extra burden which might thus have resulted
from the new rule has been eliminated.
SEC Revises Rules and Forms for Reporting Holdings
and Changes in Ownership by Officers and Directors of Listed Securities
The Securities and Exchange Commission announced on
Feb. 18 that in order to simplify and clarify the reporting
requirements under Section 16 of the Securities Exchange
Act, it had revised its rules and forms for reporting holdings
and changes in ownership by officers and directors of companies whose equity securities are listed on a National
securities exchange and by beneficial owners of more than
10% of any class of registered equity securities. The Commission's announcement also said:
These forms and rules in general supersede all previous forms and rules
dealing with reports under Section 16. The new forms announced are
numbered 4, 5 and 6.
Form 4 Should Be Filed Only if There Has Been a Change in Ownership of
any Equity Security Whether Registered or Not—Every change in ownership
must be reported, even if as a result of balancing purchases and sales there
has been no net change in holdings over the month. These reports are due
by the 10th of the month succeeding that in which the change occurred.
Form 5 Should Be Filed Only if the Registration on an Exchange of any
Equity Security of the Issuer has Become Effective Subsequent to Feb. 15 1935—
This form should be filed by the 10th of the month succeeding that in
which the registration became effective, but is not required if Form 4
is filed for the same'month.
Form 6 Should Be Filed by a Person who has Just Become a Director or Officer
of a Company Having Equity Securities Listed and Registered or the Beneficial
Owner of 10% of any Class of Registered Equity Security—Form 6 must be
filed within 10 days of the date of becoming such beneficial owner, director
or officer, but is not required if such person files Form 4 for the same month.
No reports are required of a person unless he is an officer or director of
a company having equity securities listed and registered or owns more than
10% of a registered equity security, although such person may hold more
than 10% of an equity security which is not registered.
Rule NA1 is hereby amended to read as follows:
"Rule NAl. Reports under Section 16(a)—(a) None ofthe reports provided
for in Section 16(a) need be made except as provided in this rule.
"(b) Rule for the Use of Form 4—Every person who at any time during
any month has been directly or indirectly the beneficial owner of more than
10% of any class of any equity security (other than an exempted security)
which is listed on a National securities exchange, or a director or an officer
of the issuer ofsuch security,shall, if there has been any change during such
month in his ownership of any equity security of such issuer, whether
registered or not, file with each exchange on which any equity security of
the issuer is listed and registered a statement on Form 4 (and a single
duplicate original thereof with the Commission) indicating his ownership
at the close of the calendar month and such changes in his ownership as
have occurred during such calendar month. Such statements must be
received by the Commission and the exchange on or before the tenth day
of the month following that which they cover.
"(c) Rule for the Use of Form 5—In the case of an equity security (other
than an exempted security) which is listed subsequent to Feb. 15, on a
National securities exchange, every person who at the time such registration
becomes effective is directly or indirectly the beneficial owner of more than
10% of any class of such security or a director or an officer of the issuer of
such security, shall file with each exchange on which any equity security
of the issuer is listed and registered a statement on Form 5 (and a single
duplicate original thereof with the Commission) of the amount of all equity
securities of such issuer, whether registered or not, so beneficially owned
by him at the time such registration became effective. Such statement
must be received by the Commission and the exchange on or before the
10th day of the following calendar month. If such person files a statement
1233
Financial Chronicle
pursuant to paragraph (b) ofthis rule for thesame calendar month in respect
of the same securities, he need not file an additional statement pursuant to
this paragraph.
"(d) Rule for the Use of Form 6—Every Person who becomes directly
or indirectly the beneficial owner of more than 10% of any class of any
equity security (other than an exempted security), which is listed on a
National securities exchange,or becomes a director or an officer of the issuer
of such security, shall file with each exchange on which any equity security
of the issuer is listed and registered a statement on Form 6 (and a single
duplicateioriginal thereof with the Commission) of the amount of all equity
securities of such issuer, whether registered or not, so beneficially owned
by him immediately after becoming such beneficial owner, director or
officer. Such statement must be received by the Commission and the
exchange on or before the 10th day following the day on which such person
became suchlbeneficial owner, director, or officer. Such person need not
file the statement required by this paragraph, if prior to such tenth day
and during the calendar month in which he has become such beneficial
owner, director, or officer, there has been a change in his beneficial ownership which will require him to file a statement pursuant to paragraph (b)
of this rule with respect to the same securities.
"(e) With respect to any officer, director or beneficial owner of more than
10% of any class of registered equity security, who is not resident within
any of the 48 States of the United States or the District of Columbia, or is
physically absent therefrom at the time when reports are required, reports
shall, for the purpose of the other provisions of this rule be considered to
have been properly made when they are placed in the mails."
New York Stock Exchange Urges Corporations to Act
Promptly in Filing for Permanent Registration—
Fixes April 1 as Latest Date
The New York Stock Exchange on Feb. 19 transmitted to
Presidents of corporations having securities listed on the
Exchange, a pamphlet containing several papers emanating
from the Securities and Exchange Commission pertaining to
permanent registration under the Securities Exchange Act of
1934. Temporary registration statements issued under the
Act will expire on July 1, 1935. A letter by the Exchange
accompanying the pamphlet requested the Presidents to
advise immediately on the following points:
1. At approximately what time do you expect to submit a Form 10
registration statement for the permanent registration of your securities
presently registered upon this Exchange?
2. Is it your intention to incorporate financial statements with this form
or to request a delay?
3. If it is your intention to request a delay, please state the date (not
later than July 1, 1935,for corporations whose fiscal year ended on Dec. 31
1934) upon which you may reasonably expect the financial statements to be
filed, in order that the Exchange may take up the matter of obtaining the
necessary order from the Commission.
To correct any misunderstanding as to when permanent
registration statements should be filed with the New York
Stock Exchange, J. M. B. Hoxsey, Executive Assistant, on
Feb.21 sent the following letter to Presidents of corporations:
NEW YORK Srocs EXCHANGE
Committee on Stock List
Feb. 21, 1935.
To the Presidents of all Corporations having securities listed upon the New York
Stock Exchange.
Replies already received to our circular letter of Feb. 19 indicate a wider
misunderstanding as to the time available for corporations within which to
file permanent registration statements under the Securities Exchange Act of
1934. It seems to be generally assumed that applications for permanent
registration may be filed at any time up until July 1 1935. This is not the
fact.
Under Section 12(e) of the Act, temporary registration ceases on July 1
1935, or earlier if ordered by the Commission. Under Section 12(d) of the
Act, the Exchange must certify its approval of permanent registration to
the Commission, and unless the Commission should by special order shorten
the period, the permanent registration can not become effective until 30
days after the receipt of the certification of the Exchange by the Commission.
A period for examination of the registration application by the Exchange
is necessary before the Exchange can properly certify to the Commission its
approval of the registration. It will therefore be difficult to secure permanent registration by July 1 for the securities of any corporation whose application is not received by May 15, and if any large number of applications
should be delayed:until that date, it may be physically impossible to handle
all of them properly in time to secure the desired result. It is for this reason
that the Commission has agreed that where applications without financial
statements and the other information based upon financial statements are
received on or before April 1 1935, the omitted information may be supplied
at any date agreed upon with the Exchange up until July 1 1935 (excepting
in specific cases over-ruled by the Commission), with full registration becoming effective on July 1 1935.
Corporations are therefore urged to submit registration applications as
early as possible, and not later than April 1. In cases where financial
statements in the form outlined by the Instruction Book for Form 10 are
available at the time of submission, such statements should be included with
the application. Where not available, applications should still be sent in
by April 1, and the agreement set forth upon page H 270 of the booklet
enclosed with out circular letter of Feb. 19 should be included.
The date in such agreement should be filled in by the applicant,should be
as early as the financial statements and other information dependent thereon
can with due diligence be supplied, and should not be later than June 30
1935, for corporations whose fiscal year ended between Dec. 31 1934, and
Mar.31 1935, inclusive.
Corporations with fiscal years ending after Mar. 31 1935, and on or before
Nov. 30 1935, should still submit their applications by April 1 1935, if
practicable, and should be governed as to filing financial statements by the
rules on page H 270 of the pamphlet above referred to.
You are requested with this additional information to answer the three
numbered questions on the second page of our circular letter of Feb. 19
as soon as you conveniently can.
Yours very truly,
COMMITTEE ON STOCK LIST
(Signed) J. M. B. HORSEY
Executive Assistant
1234
Financial Chronicle
New Securities Amounting to $630,244,320 Effective
During 1934 Under Securities Act of 1933-$37,735,899 Effective in December
New securities with estimated total gross proceeds of
1337,735,899, representing 24 issues registered in 17 statements, became effective during December 1934, under the
Securities Act of 1933, bringing the grand total for 1934 to
$630,244,320, representing 406 issues registered through
319 statements. In announcing the foregoing on Jan. 29,
the Securities and Exchange Commission said:
Of the total gross proceeds of new issues registered in December, $1,077.347 represents securities not involving cash proceeds to the issuer,
leaving $36.658,552 to be disposed of for cash and selling expenses. The
net proceeds from these issues will be $33,709,650, according to the estimates of the issuers. The cost of selling and distribution is expected to
amount to $2,948,902 (7.8% of total gross proceeds) of which $2,440,793
(6.5%) represents commission and discount to underwriters and $508,109
(1.3%) is for other selling and distribution costs, including those in connection with the filing of registration statements.
In addition, there were seven reorganization and exchange statements
which became effective during the month-five of which were reorganization registrations calling for $16,051.000 par amount of securities, and two
were statements offering 53,187,103 par amount of securities in exchange
for temporary certificates.
Ninety-three per cent of the monthly total, as measured by gross proceeds.
has been registered in the financial category, represented by $18,180,000
collateral trust bonds of the Chesapeake Corporation, 315.000.200 by three
investment trust issues and $1,757,200 by Issues of a personal loan company.
For the entire year 1934, total gross proceeds of the registered new securities amounted to $630.244,320. After deducting $36,620.640 gross of
securities to be issued in the future, $5,145,400 registered "for the account
of others," $62,653,654 to be issued for other than cash considerations, and
547,801.379 selling and distributing expenses, the net cash proceeds to the
issuers, would amount to $478,023,247, If the entire registered issues had
been or would be sold in accordance with the issuers' estimates.
Leading the groups that registered new securities during 1934 were the
financial and investment companies, which through 98 statements registered
securities with gross proceeds of $377,618.220. or 59.9% of the aggregate
investment trusts accounted for $330,708,382; commercial credit, mortgage. industrial and personal loan companies for $11,643,538; insurance
companies for $2,235,000; and holding and other financial and investment
companies for $33,031,300. Next in importance, was the utilities group;
which, through 10 statements, registered new securities with gross proceeds
of $114,428,237. or 18.2% of the annual total. Manufacturing industries
came third with 95 statements, registering $88,164,037 gross proceeds of
securities. or 14.0% of the total; in this group, brewing and distilling companies were the most important having registered issues totaling $51.099,900. The extractive group, through 84 statements, registered but
524.523,289 gross proceeds of new issues, or 3.9% of the total; $20,607,921
of this were securities of metal mining companies and $3,116,035 issues of
oil and gas companies.
TABLE I-THE TYPES OF NEW SECURITIES INCLUDED IN 17 REGISTRATION STATEMENTS WHICH BECAME EFFECTIVE FOR ISSUE
DURING DECEMBER 1934
Type of Security
No. of
Issues
Common stock
Preferred stock
Certificates of participation, warrants. itic
Mortgages and mortgage bonds
Debentures
Short-term notes
No. of
UnUs
Amount
P. C. of
Total
12
7
4,300,533
316,966
$5,104,833
1,631,916
13.5
4.3
3
2
21,750
12,758,950
18,237,200
33.8
48.4
Total
24
537,735.899
100.0
Note-Included in the above figures are securities, registered through two Form
E-1 statements, with gross proceeds of $1,982,200, of which $884,853 is to be sold
for cash, $450,000 Is reserved for conversion and $627,347 is to be offered in exchange
for existing securities.
TABLE II-THE TYPES OF NEW SECURITIES INCLUDED IN 319 REGISTRATION STATEMENTS WHICH BECAME EFFECTIVE FOR ISSUE
DURING YEAR ENDED DEC. 31 1934
Type of Security
No. of
Issues
No. of
Units
Amount
P. C. of
Total
252
74
150,893,289
17,267,600
5340,488,288
52,734,789
54.0
8.4
53
12
9
6
18,394,237
102,107,824
31,723,439
38,487,000
68,615,000
18.2
5.0
5.8
10.6
1630.244.320
100.0
Common stock
Preferred stock
Certificates of participation, warrants, kc
Mortgages and mortgage bonds
Debentures
Short-term notes
Total
406
TABLE III-GROUP CLASSIFICATION OF ISSUERS TIIAT REGISTERED
NEW ISSUES DURING DECEMBER 1934
Group
Agriculture
Extractive industries
Manufacturing industries
Financial and investment companies__
Merchandising
Real estate
Construction
Service industries
Electric light, power, gas and water
Foreign government
Miscellaneous
Total
No. of
Statements
Amount
6
5
5
$1,356,249
1,317,250
34,937,400
17
Per Cent
of Total
- 3.6
3.5
92.8
125,000
0.3
$37,735,899
100.0
TABLE IV-GROUP CLASSIFICATION OF ISSUERS THAT REGISTERED
NEW ISSUES DURING THE YEAR ENDED DEC. 31 1934
Group
Agriculture
Extractive industries
Manufacturing industries
Financial and investment companies
Merchandising
Real estate
Construction
Service industries
Electric light, power, gas and water
Foreign government
Miscellaneous
Total
No. of
Statements
Amount
1
84
95
98
10
4
3
8
10
1
5
$250,000
24,523,289
88,164,037
377,618,220
4,417,006
6,197,531
370,000
3,262,000
114,428,237
9,860,000
1,154,000
0.0
3.9
14.0
59.9
0.7
1.0
0.1
0.5
18.2
1.5
0.2
319
1830,244,320
100.0
Per Cent
of Total
Feb. 23 1935
TABLE V-THE USES TO WHICH THE ISSUERS INTEND TO PUT THE
NET PROCEEDS FROM ISSUES REGISTERED DURING DECEMBER
1934
Amount
Organization and development expenses
Plant and equipment-new and additional
Purchase of real estate
Acquisition of other assets
Acquisition of securities of subsidiaries and affiliates_
Working capital
Repayment of indebtedness
Investment
Miscellaneous
Total
Note-The above figures exclude the following:
Reserved for subsequent issue
To be Issued in exchange for securities of issuer_
To be issued for tangible assets
Total
Per Cent
of Total
$147,637
1,156,831
0.4
3.4
6,000
550,970
633,808
17,672,469
13,542,135
0.0
1.6
1.9
52.4
40.3
$33,709,650
100.0
$450,000
626,447
900
$1,077,347
TABLE VI-THE USES TO WHICH THE ISSUERS INTEND TO l'UT THE
NET PROCEEDS FROM ISSUES REGISTERED DURING THE YEAR
ENDED DEC. 31 1934
Organization and development expenses
Plant and equipment-new and additional
Acquisition of other assets
Acquisition of securities of subsidiaries and affiliates.
Working capital
Repayment of indebtedness
Investment
Miscellaneous
Amount
Per Cent
of Total
$5,078,306
17,604,802
9,835,512
15,023,461
58,333,177
124,289,840
304,421,771
1,925,697
0.9
3.3
1.8
2.8
10.9
23.2
58.7
0.4
Total
8538,512,588
100.0
Note-The above figures exclude $35,356,630 reserved for subsequent issue and
options for the period Jan. 110 Sept. 30 1934. incl.. and $5,848,799 or Oct. 1 to
Dee. 31 1934, incl„ registered but not currently offered for cash. 'I he total net
proceeds figure of $536,512,566 is composed of $58,489,319 estimated proceeds, in
the Jan. 1-Sept. 30 1934 period, of securities Issued for other than cash considers..
lions, (such as claims, properties, rights. Arc.) and $478,023,247 estimated actual
cash proceeds during the entire year.
TABLE VII-THE TYPES OF SECURITIES INCLUDED IN SEVEN REGISTRATION STATEMENTS FOR REORGANIZATION AND EXCHANGE*
ISSUES WHICH BECAME EFFECTIVE FOR ISSUE DURING DECEMBER 1934
Reorganization Issues
Type of Security
Common stock
Preferred stock
Certificates of participation, warrants, dai
Mortgage and mortgage
bonds
Debentures
Short-term notes
Certificates of deposit_ _
Total
No.
of
Issues
Par
Amount
Appear.
Market
Value z
Exchange Issues'
No.
of
Par
Issues Amount
2
1
6
16,051,000 5,339,030
6
16,051,000 5,339,030
Approx.
Market
Value z
2.506,803 4,427,412
680,300
224,522
3 3,187,103 4,651,934
• Refers to securities to be issued In exchange for exis Ing securities.
z Represents actual market value and (or) one-third efface value where market
WWI not available.
Note-Excluded from the above figures (but included in Table I) are securities.
registered through two Form E-1 statements, with gross proceeds of I1,982,200, of
which 8884,853 into be sold for cash, $450,000 Is reserved for conversion and 8627,347
is to be offered in exchange for existing securities.
TABLE VIII-GROUP CLASSIFICATION OF ORIGINAL ISSUERS OF
SECURITIES FOR WHICH REORGANIZATION AND EXCHANGE'
STATEMENTS BECAME EFFECTIVE DURING DECEMBER 1934
Reorganization Issues
Group
Agriculture
Extractive industries
Manufacturing industries_
Financial and investment
companies
Merchandising
Real estate
Construction
Transportation and communiciation
Service Industries
Electric light, power, gas
and water
Foreign government
Miscellaneous
No.
of
Issues
2
Par
Amount
6,047,000 1,345,520
385,000
2
1
Exchange Issues*
Approx. No.
Market
of
For
Value z Issues Amount
128,333
Approx.
Market
Value z
2,500,000 4,425,187
687,103
226,767
8,935,000 3,637,177
884,000 228,000
Total
6 16,051,000 5,339,030
3 3,187,103 4,651,934
• Refers to securities to be issued in exchange for ex sting securities.
z Represents actual market value and (or) one-third of face value where market
was not available.
SEC Accepts Compromise Plan of New York Stock Exchange Allowing Eight Office Partners to Serve on
Governing Committee
The Securities and Exchange Commission on Feb. 20
announced its approval of the plan suggested Feb. 15 by the
New York Stock Exchange to increase the Governing Committee of the Exchange to 48 members, eight of whom would
be office partners of member firms. The submission of the
plan by the Exchange to the SEC was noted in our issue of
Feb. 16, page 1063. In accepting the proposal the SEC said:
The Commission, after consideration of the proposal, considers that the
plan recommended by the New York Stock Exchange makes eligible for
membership on the governing committee the typo of office partner whose
membership on the Governing Committee was advocated by the Commission in its report.
Adoption of the plan, therefore, would bring the constitution of the
New York Stock Exchange into accord with this second recommendation
of the SEC.
Volume 140
Financial Chronicle
The remaining 10 recommendations of the Commission are still under
discussion.
The Commission also made public as follows the Stock
Exchange's recommendation:
The Governing Committee shall be increased to 48 members, eight of
whom shall be office partners who, upon election, will become members of
the Exchange of a special class to be known as "governing members."
These eight additional members of the Governing Committee are to be
elected at the annual meeting of 1935 and would hold office, two for one
year, and two for two years, two for three years and two for four years.
thus eventually bringing about an election of two of these members every
year.
These eight governing members would at all times be office partners
not owning seats in registered firms engaged in the commission business.
Each such general partner who is elected to the Governing Committee
shall sign the constitution of the Exchange. His membership shall terminate
if he ceases for any period of 30 days to be a general partner of a firm
registered on the Exchange or ceases to be a member of the Governing
Committee. Each such governing member shall have the privilege
of
going upon the floor of the Exchange, but not the privileges of transacting
business thereon. Each such member shall not be entitled to the member's
rates of commission on his own business or to confer any privileges in regard
to commission or otherwise on the firm in which he is a general
partner.
Such a member shall not be entitled to the benefits of the gratuity fund
of
the New York Stock Exchange.
//
/
of Deposits Insured in 14,028 Member Banks of
FDIC-Ratio of Insured Accounts to Total Number
98.53%
A compilation issued Feb. 18 by the Federal Deposit
Insurance Corp. shows that of 49,725,744 accounts held by
14,028 member institutions on Oct. 1, 48,995,978 were fully
insured, which is equivalent to a ratio of 98.53%. However,
it is noted that of $35,975,239,000 of deposits represented by
these accounts, only $15,647,231,000 were insured, or
43.49%. In issuing the table, the Corporation said in part.
/43.49%
The most striking fact revealed by the table is the great
majority of
accounts in banks with deposit liabilities of over $50,000,000 which are
fully insured. The percentage is 97.16%. only a little more than 1% under
the average for all insured banks. On the other hand, the insured
deposits
In this group of the largest banks amount to only about 26% of the total,
largely accounted for by the deposits of institutions and corporations
, and
thefact that they serve as correspondents for great numbers of smaller
banks.
The table was issued by the FDIC as follows.
ACCOUNTS AND DEPOSITS IN INSURED COMMERCIAL
BANKS AND
TRUST COMPANIES DISTRIBUTED ACCORDING TO SIZE
OF BANK
OCT. I 1934
(Deposits in thousands of dollars)
Insured Banks
Insured Accounts
Ratio of
Banks in
Number Ea. Group
to all
Banks
Banks flaring Deposits of
$100,000 and under
$100,001 to $250,000
$250.001 to $500,000
6500,001 to 8750.000
$750,001 to $1,000,000_
51,000,001 to 32,000,000_
82,000,001 to 35,000,000_
15.000,001 to 850,000,000_
$50,000,001 and over
Total
I
1,502
3,580
3,109
1,477
943
1,630
1,060
631
96
14,028
Fully
Insured
Total
II
III
IV
10.71%
614,460
616,046
25.52
2,726,389 2.738,463
22.16
4.095,818 4,119,429
10.53
2,974,979 2,995.488
6.72
2,577.867 2,596,962
11.62
6,196,088 6,252,654
7.56
7,422,184 7,508,918
4.50
11,839,415 12,040,862
.68
10,548.778 10,856,922
100.00
48.995 978 49.725.744
Ratio of
Fully
Insured
to Total
v
99.74%
99.56
99.43
99.32
99.26
99.10
98.84
98.33
97.16
98.53
Deposes
Insured
Banks Having Deposits of.
$100,000 and under
$100,001 to 8250,000
$250,001 to 8500,000
$500,001 to 8750,000
8750,001 to 81,000,000
$1,000,001 to $2,000,000
$2,000,001 to 85.000.000
$5,000.001 to 850,000,000
$50,000.001 and over
VI
$91,403
529,892
921,653
720,627
631,175
1,700,515
2,207,934
3,978,691
4,865,341
Total
VII
$99,714
609,390
1,108,586
903,230
813,367
2,278,799
3,193,457
8,026,511
18,942,185
Ratio Insured
to Total
VIII
91.67%
86.95
83.14
79.78
77.60
74.62
69.14
49.57
25.69
Total
$15,647,231 $35,975,239
43.49%
Note-Total deposits as reported to the Corporation on
respects rom gross deposits shown on bank's published Oct. I 1934 differ In some
statements, and cannot be
used es4basla for comparison with deposits on previous dates.
xtension for Two Years of Period Within Which
Federal Reserve Banks May Use Government Bonds
as Collateral for Federal Reserve Notes-Proclamation Issued by President Roosevelt
In a proclamation issued by President Roosevelt (dated
Feb. 14 and made public Feb. 16) the time within which
Federal Reserve Banks may use Government bonds as collateral for Federal Reserve notes has been extended for two
years-or until March 3 1937. Associated Press from Washington, Feb. 16, said:
His (the President's) proclamation, dated Feb. 14, did not
affect the
requirement that all Federal Reserve notes must be supported
by a 40%
gold reserve. Since nationalization of gold, this has meant reserve
banks
must hold at least 40% of the value of their note issues in gold
certificates
representing metal actually deposited in the Treasury.
The Presidential proclamation until March 3 1937, an emergency
remedy
forced in the early days of 1933 when the short-term commercial paper
ordinarily employed as collateral for Federal Reserve notes
-the bulk of
the every-day money supply-dwindled to a vanishing point.
The situation demanded the use of more gold as collateral. At
one
time reserve-note issues tied up as much as 72% of the nation's gold supply
1235
and left the Treasury in a precarious position in the face of heavy
European
withdrawals of the metal.
The Washington advices, Feb. 16, to the New York
"Times" pointed out:
One of the proposals in the pending Banking Act of 1935, which has been
submitted to Congress by the Administration, would amend the Federal
Reserve Act by abrogating the collateral requirements behind Federal
Reserve notes so that all assets of the Federal Reserve Banks rather than
special types of securities would be behind the reserve notes as well as 40%
in gold.
An earlier extension of the time Reserve banks were
authorized to use Government bonds as collateral for Reserve
notes was reported in these columns March 17, page 1841.
Walter W. Smith Re-elected President of Federal
Advisory Council
At the first meeting this year of the Federal Advisory
Council, held Feb. 19, Walter W. Smith of St. Louis (representing the St. Louis Federal Reserve District) was re-elected
President, and Howard A. Loeb of Philadelphia (representing
the Philadelphia District )Vice-President. The Council again
retained Walter Lichtenstein as Secretary. The following
were named to the Executive Committee:
Walter W. Smith (ex-officio member).
Howard A. Loeb (ex-officio member).
Thomas M. Steele of New Haven (representing Boston District).
James H. Perkins of New York (representing New York District).
H. Lane Young of Atlanta (representing Atlanta District).
W.T. Kemper of Kansas City (representing Kansas City District).
In addition to the aforenamed, other members of the
Federal Advisory Council for 1935 are:
Arthur E. Braun of Pittsburgh (representing Cleveland District).
Charles M. Gohen of Huntington, W. Va. (representing Richmond
District).
Solomon A. Smith of Chicago (representing Chicago
District).
Theodore Wold of Minneapolis (representing Minneapolis District).
Joseph H. Frost of San Antonio, Tex. (representing Dallas District).
M. A. Arnold of Seattle (representing San Francisco District).
Volume of Outstanding Bankers' Acceptances Jan. 31,
$515,812,657, Compared With $543,385,189 Dec. 31Drop of $27,572,532 in Month
The volume of bankers' acceptances at the end of January
was $27,572,532 less than the amount reported at the end
of December, according to the monthly report of the American Acceptance Council released Feb. 19. The total is
$255,513,761 less than the volume reported at the end of
January 1934. In issuing the report, Robert H. Bean,
Executive Secretary of the Council, further said:
While it is customary to note s gradual reduction in acceptance volume
after the turn of the year, the general lack of demand for acceptance credits
for foreign trade financing particularly, is principally responsible for
the
current reduction.
The most important reduction was in the type of acceptances created to
finance the storage of staples in domestic warehouses. This total was
off
$14,420,124 for the month.
Bankers' acceptances created to finance exports declined 37,007,646,
while those for import financing went off $2,704,491.
The volume of foreign credit bills continued to shrink this month
In the
amount of 54,240,523.
Only slight changes were reported in the total for domestic shipment
acceptances and dollar exchange acceptances.
Almost the entire volume of bills continues to be held by the accepting
banks themselves as they reported $237,716,979 of their own bills
and
$247,302,742 of other banks' acceptances, a total of $485,019,721 leaving
,
only 530.000.000 held by the dealers and other investors.
Mr. Bean also issued the following detailed statistics:
TOTAL OF BANKERS' DOLLAR ACCEPTANCES OUTSTANDI
NG FOR
ENTIRE COUNTRY BY FEDERAL RESERVE DISTRICTS
Federal Reserve District
1
2
3
4
a
8
7
8
9
10
11
12
Grand total
Decrease for month
Decrease for year
Jan. 31 1935
Dec. 31 1934
$32,385,512
405,847,602
13.045.688
2,669,238
588,980
5.977.679
23,054,577
1,610,409
1,636,283
175,000
2,807,764
26.013,925
$34,190,081
428.640,097
12,288,764
3,125,951
863,437
6,381,483
24,470,586
1,630,119
2,494,197
335,000
2,627,151
26.340,323
$45.453,056
621,331,233
14,703,105
2.189,140
623,259
8,622.724
42,672,462
2,282,499
3,467.355
1.400,000
2,596,396
25.985,189
$515,812,657
27,572.532
$543,385,189
8771,326.418
Jan. 31 1934
/AA K12 7A1
CLASSIFIED ACCORDING TO NATURE OF CREDIT
Imports
Exports
Domestic shipments
Domestic warehouse credits
Dollar exchange
Based on goods stored in or shipped
between foreign countries
Jan. 31 1935
Dec. 31 1934
886,460,751
182.925,361
8,116,901
171.299.707
2,589.644
$89,165,242
139,933,007
7.533.274
185,719,831
2,373.019
Jan. 30 1934
889.294.031
225.327.115
13,078,427
263.440,095
5,178,815
114 420.293
118.680.RIR
171t NW Q214
CURRENT MARKET QUOTATIONS ON
PRIME BANKERS'
ACCEPTANCES FEB. 18 1935
Days30
60
90
Dealers'
Dealers'
Baying Sale Selling Rate
SIG
IN
NA
Si
Si
4
Days120
150
180_
Declare'
Dealers'
Bind*, Sate SAW Rau
Ns
Si
1«
34
ti
c
1236
Financial Chronicle
Feb. 23 1935
Charter Granted to First Federal Savings & Loan Association of Toledo-Initial Capital of $400,000
Planned
A charter has been granted by the Federal Home Loan
Bank Board at Washington to the First Federal Savings &
Loan Association, Toledo, Ohio, according to word received
by James V. Davidson, director of the Federal Home Loan
Bank of Cincinnati, we learn from the Toledo "Blade" of
Feb. 11. It is stated that an initial capital of $400,000 is
planned for the Association, $300,000 of which, under the
organization plans, would be subscribed by the FHLBB,and
$100,000 by private shareholders. From the "Blade" we
also take the following:
After the seventh year it gains in value at the rate of $2 every six months.
The other denominations increase proportionately.
The new Government securities will be on sale at approximately 14,000
postoffices. These include all first, second and third-class postoffices,
and all fourth-class postoffices located at county seats. The Postoffice
Department will have complete charge of the distribution of the bonds to
the public, and preparations for handllng the work are under way.
It will be as easy for a purchaser to buy a bond as it is to obtain a money
order. He simply presents cash to the postmaster or his agent, who writes
the purchaser's name and address, the date of issue and the date of sale,
on the bond. The owner may then keep the bond,or he may turn it over to
the Government for safekeeping.
The bonds are registered, and payable only to the person whose name
appears on the face of the bond. In case of death or disability, adequate
provision has been made for payment to the proper person. In case of
loss or destruction of the bonds, the owner may replace them in accordance
with Treasury regulations.
The First Federal Savings & Loan Association is the first organization
of its kind in Toledo with the United States Government as a shareholder.
It was formed for the purpose of financing home mortgages, and will be
under direct supervision of the Home Loan Bank of Cincinnati. Temporary officers are Lawrence G. Pierce, President; F. W. Terwilliger, VicePresident; William B. Welles, Treasurer; Dean W. Parker, Secretary, and
George C. Bryce, attorney.
The new institution will be in a position to rediscount up to 35% on all
first mortgages it makes. It will be automatically a member of the Federal
Savings & Loan Insurance Corp. which will insure the investment of every
individual in its shares up to $5,000.
The new organization will be ready to begin operations within 30 days.
The text of the bill authorizing the issuance of "baby
bonds" was given in our issue of Feb. 16, page 1088.
Treasury Plans Issuance of Weekly Treasury Bill Offerings in Excess of Maturities
A change in Treasury financing practices from which
observers drew the inference that the Government plans to
borrow no new money on March 15-the next quarterly
financing date-was outlined on Feb. 21 by Secretary of the
Treasury Morgenthau, said Associated Press advices from
Washington, that day, to the New York "Sun." The advices continued:
The change was comparatively minor and is believed to have been
prompted by the cheapness of money. Mr. Morgenthau said that the
Treasury will shortly offer, for the first time, to sell nine-month bills on a
discount basis.
Hitherto paper of longer maturity than six months has been sold at fixed
Interest rate. Mr. Morgenthau said that the usual weekly offering of
$75,000,000 in six-month bills will be replaced by a sale of $50,000,000 in
six-month bills and 150,000,000 in nine-month bills. By this method, a
total of 1325,000,000 of new money will be picked up in the next three
months, making it unnecessary to float a long term issue for new money
at the next quarterly financing period on March 15.
However, it was expected that a conversion offering of securities will be
made then for maturities of 12,403.006,000, consisting of $528,000,000 in
% notes and 11,875.000,000 in called Liberty 44s. The Treasury now
has a cash balance of $2,136,085,773.
Receipts of Hoarded Gold During Week of Feb. 13,
$445,300-$18,340 Coin and $426,960 Certificates
Figures issued by the Treasury Department on Feb. 18
indicate that gold coin and certificates amounting to $445,300.14 was received during the week of Feb. 13 by the
Federal Reserve banks and the Treasurer's office. Total
receipts since Dec. 28 1933, the date of the issuance of the
order requiring all gold to be returned to the Treasury, and
up to Feb. 13, amount to $116,352,963.75. The figures show
that of the amount received during the week ended Feb. 13,
$18,340.14 was gold coin and $426,960 gold certificates. The
total receipts are shown as follows:
Cold Coin
Received by Federal Reserve banks:
Week ended Feb. 13 1935
Received previously
Total to Feb. 13 1935
Received by Treasurer's Office:
Week ended Feb. 13 1935
Received previously
Gold Cell'Motu
8415,960.00
817,840.14
29,866,897.61 83,770,660.00
$29,884,737.75 $84,186,620.00
$500.00
259,306.00
811,000.00
2,010,800.00
$259,806.00 $2,021,800.00
Total to Feb. 13 1935
Note-Gold bars deposited with the New York Assay Office to the amount 01
$200,572.69 previously reported.
Silver Transferred to United States Under Nationalization Order-45,803 Fine Ounces During Week of
Feb. 15J
During the week of Feb. 15 a total of 45,803 fine ounces
of silver was transferred to the United States under the
Executive Order of Aug. 9 1934, nationalizing the metal.
A statement issued by the Treasury Department on Feb. 18
showed that receipts since the order was issued and up to
$79,024,000 Accepted to Offering of $75,000,000 or Feb. 15 total 112,259,007 fine ounces. The order of Aug. 9
Thereabouts of 182-day Treasury Bills Dated was given in our issue of Aug. 11 1934, page 858. The stateFeb. 20 1935-Tenders of $156,544,000 Received- ment of the Treasury of Feb. 18 shows that the silver was
Average Rate 0.117%
received at the various mints and assay offices during the
Tenders of $156,544,000 were received to the offering of week of Feb. 15 as follows:
dated
bills,
Treasury
-day
$75,000,000 or thereabouts of 182
Fine Ounces
4,650
Feb. 20 and maturing Aug. 21 1935, of which $75,024,000 Philadelphia
33,016
New York
1,495
the
of
San
Secretary
Jr.,
Francisco
Morgenthau
Henry
were accepted,
5,615
Denver
675
Treasury, announced Feb. 18. The tenders were received New Orleans
352
at the Federal Reserve banks and the branches thereof Seattle
45,803
1935
15
Feb.
ended
week
for
Total
Feb.
Reference
Time,
18.
up to 2 p. m., Eastern Standard
Following are the weekly receipts since the order of Aug.9
to the offering was made in our issue of Feb. 16, page 1069.
In his announcement of Feb. 18 Secretay Morgenthau said; was issued:
Except for two bids totaling $24,000. the accepted bids ranged in price
from 99.956, equivalent to a rate of about 0.087% per annum. to 99.935,
equivalent to a rate of about 0.129% per annum, on a bank discount basis.
Only part of the amount bid for at the latter price was accepted. The average price of Treasury bills to be issued is 99.941, and the average rate is
about 0.117% per annum on a bank discount basis.
Recent offerings of Treasury bills have sold at average
rate of about 0.11% (bills dated Feb. 13); 0.12% (bills dated
Feb. 6); 0.14% (bills dated Jan. 30), and 0.15% (bills dated
Jan. 23 and Jan. 16.)
Forthcoming Issue of "Baby Bonds"-To Be Offered
About March 1 at Approximately 14,000 Postoffices
-Bonds Would Yield Interest Rate of 2.9% if Held
Until Maturity
Secretary of the Treasury Morgenthau announced Feb. 18
that the new United States Savings Bonds, or "baby bonds,"
to go on sale through the postoffices on or about March 1,
would yield an interest rate of 2.9% compounded semiannually if held till maturity. Secretary Morgenthau's
announcement continued:
These bonds, which range in denominations from $25 to $1,000. will not
be transferable, but they will be redeemed for cash on the owner's request
at any time after 60 days from the date of issue. The face of each bond
bears a table of redemption values which enables the purchaser to know
Its redemption value at all times. The redemption value will increase
regularly after the first year.
Under the rate fixed by the Secretary of the Treasury, purchasers will
pay $18.75 for a bond of $25 maturity value; $37.50 for a $50 bond; $75
for a $100 bond; $375 for a $500 bond and $750 for a $1,000 bond. The
bonds sell on a discount basis, and the difference between the price paid at
issue and the maturity value represents accrual of interest. The $100 bond
increases in redemption value by every six months after the first year.
Week Ended- Fine Ors.
193433,465,091
Aug. 17
26,088,019
Aug. 24
Aug. 31
12.301,731
4,144,157
Sept. 7
Sept. 14
3,984,363
8,435,920
Sept. 21
2,550,303
Sept. 28
2,474,809
Oct. 5
2.883,948
Oct. 12
Week Ended- Fine Ozs.
1,044,127
Oct. 19
746,469
Oct. 26
7,157,273
Nov. 2
3,665,239
Nov. 9
336,191
Nov. 16
261,870
Nov. 23
86,662
Nov. 30
292,358
Dec. 7
444,308
Dec. 14
692,795
Dec. 21
Week Ended- Fine Ors.
63,105
Dec. 28
1935309.117
Jan. 4
535,734
Jan. 11
75,797
Jan. 18
62,077
Jan. 25
134,096
Feb. 1
33,806
Feb. 8
45,803
Feb. 15
$5,420,000 of Government Securities Purchased During
January by Treasury
Net market purchases of Government securities for Ireasury investment accounts for the calendar month of January
1935 amounted to $5,420,800, Henry Morgenthau, Jr.,
Secretary of the Treasury,announced Feb. 18. The Treasury
during December, as noted in our issue of Jan. 19, page 394,
purchased $1,200 of securities.
Mints Received 1,126,572.32 Fine Ounces of Silver
from Treasury Purchases During Week of Feb. 15
According to figures issued Feb. 18 by the Treasury
Department 1,126,572.32 fine ounces of silver were received by the various United States mints during the week
of Feb. 15 from purchases made by the Treasury in accordance with the President's proclamation of Dec. 21 1933.
The proclamation, which was referred to in our issue of
Dec. 23 1933, page 4441, authorized the Department to
absorb at least 24,421,000 fine ounces of newly mined silver
annually. Since the proclamation was issued the receipts
by the mints have totaled 26,536,000 fine ounces, it was
Financial Chronicle
Volume 140
indicated by the figures issued Feb. 18. Of the amount
purchased during the week of Feb. 15, 371,556.67 fine
ounces were received at the Philadelphia Mint, 676,852.65
fine ounces at the San Francisco Mint, and 78,163 fine
ounces at the mint At Denver. During the previous week,
ended Feb. 8, the mints received 1,167,705.94 fine ounces.
The total receipts by the mints since the issuance of the
proclamation follow (we omit the fraction part of the ounce):
Week Ended- Ounces
1934Jan. 5
1,157
Jan. 12
547
Jan. 19
477
Jan. 26
94,921
Feb. 2
117,554
Feb. 9
375,995
Feb. 16
232,630
Feb. 23
322.627
Mar. 2
271.800
Mar. 9
126,604
Mar. 16
832,808
Mar.23
369,844
Mar.30
354,711
Apr. 6
589,274
Apr. 13
10,032
Apr. 20
753,938
Apr. 27
436,043
May 4
647,224
Mayan
600,631
May.18
503,309
• Corrected figures.
Week Ended- Ounces
May 25
885,056
June 1
295,511
June 8
200,897
June 15
206,790
June 22
380.532
June 29
64,047
July 6
.1,218,247
July 13
230,491
July 20
115,217
July 27
292,719
Aug. 3
118,307
Aug. 10
254,458
Aug. 17
649,757
Aug. 24
376.504
Aug. 31
11,574
Sept. 7
264.307
Sept. 14
353,004
Sept.21
103,041
Sept.28
1,054,287
Oct. 5
620,638
Oct. 12
609,475
Week Encled=, Ounces
Oct. 19
712.206
Oct. 26
268,900
Nov. 2
826,342
Nov. 9
359,428
Nov. 16
1,025,955
Nov.23
443,531
Nov.30
359,296
Dec. 7
487,693
Dec. 14
648,729
Dec. 21
797,206
Dec. 28
484,278
1935Jan. 4
467,385
Jan. 11
504,363
Jan. 18
732.210
Jan. 25
973,305
Feb. 1
321,760
Feb. 8
1,167,706
Feb. 15
1,126.572
NebraskalGold Clause Act Seen:Aided by Decision
From the New York "Journal of Commerce" we take_the
following (United Press) flora Lincoln, Neb., Feb. 18:
Nebraska's new gold clause abrogation act was believed tonight to have
a firmer foundation as the result of the United States Supreme Court's
ruling.
At the insistence of Gov. Roy Cochran the Legislature had passed a law
bringing money contracts bearing a gold clause under the usury statutes.
It prevented creditors from collecting anything but "principal and legal
Interest" on such contracts.
"I am very pleased with the Supreme Court's decision," Governor
Cochran said. "The purpose of my bill was to protect those who may have
inadvertently signed agreements to pay . . . in gold, which is now
unobtainable,from being forced to settle on the basis of$1.0 in currency."
The Nebraska legislation was referred toliniour issue of
Feb. 9, page 890.
President Roosevelt Asks Congress to Extend NRA for
Two Years-Urges Modification of Present LawWould Consider Coal, Oil and Gas as Public Utilities-"Monopolies and Private Price-Fixing," Says
President, Must Not Be Allowed
President Roosevelt, in a special message to Congress on
Feb. 20, urged the passage of legislation to extend for a
period of two years the life of the National Recovery Administration, which will otherwise automatically expire on
June 16 next. The fundamental purposes and principles of
the law creating the NRA are sound and to abandon them
would be "unthinkable," and would "spell the nth'n of
industrial and labor chaos," the President said, although
at the same time he recommended certain changes in the
character of the NRA.
In reviewing the accomplishments of the NRA since its
organization in 1933, Mr. Roosevelt credited it with a great
influence in furnishing re-employment to approximately
4,000,000 persons. He also asserted that it has eliminated
child labor and the sweatshop, while increasing wage rates
and lowering working hours of millions of employees.
Under the law, he said, "a great advance has been made in
the opportunities and assurances of collective bargaining
between employers and employees." He also declare° that
the Government has been developing new safeguard for
small enterprises and has given "representation and consideration to the problems of the consuming public."
The President, in enumerating certain changes which he
proposed in the law, included the following suggestions in
his message to Congress:
1. A clarification of the purpose of the law.
2. Encouragement of voluntary submission of codes, while rationing
In the Government the power to impose a code on an industry that fails
to submit a pact of its own accord.
3. Child labor must not be allowed to return, while the fixing of
minimum wages end minimum hours is "practical and necessary."
4. Congress should protect the rights of employees to organire for
the purpose of collective bargaining.
6. The fundamental principles of the anti-trust laws should be more
adequately applied, and monopolies and private price-fixing with industries must not be allowed.
6. In the case of certain natural resources, such as coal, oil and gas,
the Federal Government should exercise strict regulation as public utilities.
7. Added protection should be given against discrimination and oppression of small enterprises.
8. The Government should abandon the theory that the way to enforce
code provisions is to put email violators in jail.
The President's special message to Congress follows:
Tc the Congress of the United States:
On May 17 1933 I asked the Congress to "provide for the machinery
necessary for a great co-operative movement throughout all industry in
order to obtain wide re-employment, to shorten the working week, to
pay II decent wage for the shorter week and to prevent unfair competition
and disastrous overproduction."
1237
The National Industrial Recovery Act was passed by the Congress in
June 1933, and the administrative machinery to carry it into effect Was
set up during the succeeding month.
It is worth remembering that the purpose of this law challenged the
imagination of the American people and received their overwnelining
support.
Enforcement during the earlier life of the Act was not a proble:n which
gave the country concern-for the very good reason that public opinion
served as an enforcing agency which potential violators lid not dare to
oppose.
The immediate objective was to check the downward spiral of the great
depression and it met this objective and started us on our fcrward path.
It is now clear that in the spring and summer of 1933 many estimates
of unemployment in the United States were far too low and we are
therefore apt to forget to-day that the NIRA was the biggest factor in
giving re-employment to approximately 4,000,000 people.
In our progress under the Act the age-long curse of child Jabot has
been lifted, the sweatshop outlawed, millions of wage ea:ners have been
released from the starvation wages and excessive hours of labor.
Under it a great advance has been made in the opportunities and assurances of collective bargaining between employers and employees. Under
it the pattern of a new order of industrial relations is definitely taking
shape.
Industry as a whole has also made gains. It has been freed, in part at
least, from dishonorable competition brought about not only by overworking and underpaying labor, but destructive business practices.
New Safeguards For Small Enterprlses
We have begun to develop new safeguards for small enterprises; and
most important of all, business itself recognizes more clearly than at
any previous time in our history the advantage and the obligations of
co-operation and self-disicipline, and the patriotic need of ending unsound
financing and unfair practices of all kinds.
Hand in hand with the improving of labor conditions aad of industrial
practices we have given representation and consideration to th.5 problems
of the consuming public.
And it is reasonable to state that with certain inevitable exceptions
in the case of individual products, there has been less gouging in retail
sales and prices than in any similar period of increasing demand and
rising markets.
The first codes went into effect in July 1933. Since then approxinvitely
600 have been approved-90% of the coverable employm-nts were und.x
code-in less than 11 months-a brief time indeed for the definite achievements already made. Only carping critics and those who -seek either
political advantage or the right again to indulge in unfair practice, or
exploitation of labor or consumers deliberately seek to quarrel over the
obvious fact that a great code of law, of order and of decent business
cannot be created in a day or a year.
We must rightly move to correct some things done or left undone.
We must work out the co-ordination of every code with evary other code.
We must simplify procedure. We must continue to obtain current information as to the working out of code processes.
We must constantly improve a personnel which, of neceety, was hastily
assembled but which has given loyal and unselfish service to the Government of the country. We must check and clarify such provision In the
various codes as are puzzling to those operating under them. We must
make more and more definite the responsibilities of all of the partite.
concerned.
This Act which met in its principles with such universal public approval and under which such great general gains have been made, will
terminate on June 16, next.
The fundamental purposes and principles of the Act are sound. To
abandon them is unthinkable. It would spell the return of it:dm-trial
and labor chaos.
I therefore recommend to the Congress that the NIRA be extended for
a period of two years.
I recommend that the policy and standards for the administration of
the Act should be further defined in order to clarify the legislative purpose and to guide the execution of the law, thus profiting by way we have
already learned.
Voluntary Codes Encouraged
Voluntary submission of codes should be encouraged but at the same
power must rest in the Government to establish in any event certain minimum standards of fair competition in commercial practices, and, especially,
mum standards of fair competition in commercial practices, and, especially,
adequate standards in labor relations.
For example, child labor must not be allowed to return; the fixing
of minimum wages and maximum hours is practical and i ecessary.
The rights of employees freely to organize for the purptse of collective
bargaining should be fully protected.
The fundamental principles of the anti-trust laws should be more adequately applied. Monopolies and private price-fixing within industries
must not be allowed nor condoned. "No monopoly should be private."
But I submit that in the case of certain natural resources, such as
coal, oil and gas, the people of the United States need Government supervision over these resources devised for the purpose of eliminating their
waste and of controlling their output and stabilizing employment in
them, to the end that the public will be protected and that ruinous pricecutting and inordinate profits will both be denied.
We must continue to recognize that incorrigible minorities within an
Industry, or in the whole field of trade and industry, should not be
allowed to write the rules of unfair play and compel all othtrs to eompet
upon their low level.
We must make certain that the privilege of co-operating to prevent
unfair competition will not be transformed into a license to strangle fair
competition under the apparent sanction of the law. Small enterprises
especially timid be given added protection against discrimination and
oppression.
In the development of this legislation I call your attention tn the
obvious fact that the way to enforce laws, codes and regulations relating to industrial practices is not to seek to put people in jail.
We need other and more effective means for the immediate stopping
of practices by any individual or by any corporation which are contrary
to these principles.
Detailed recommendations along the lines which I have indicated
have been made to me by various departments and agencies charged with
the execution of the present law.
These are available for the consideration of the Congress, and, although
not furnishing anything like a precise and finished draft of legislation,
they may be helpful to you in your deliberations.
1238
Financial Chronicle
Let me urge upon the Congress the necessity for an ectenaion cf the
present Act.
The progress we have been able to make has shown us the vast scope
of the problems in our industrial life.
We need a certain degree of flexibility and of specialized treatment,
for our knowledge of the processes and the necessities of this life are
still incomplete.
By your action you will sustain and hasten the process of industrial
recovery which we are now experiencing; you will lighten the burdens
of unemployment and economic insecurity.
FRANKLIN D. ROOSEVELT.
The White House,
Feb. 20, 1935.
President Roosevelt Gratified by Decisions of United
States Supreme Court in Gold Clause Cases—
Administration Undecided as to Whether New
Legislation Is Called For—Foreign Holders of
United States Bonds Reported Forming Organization for Filing Claims
President Roosevelt is reported to have emphatically announced on Feb. 20 that the Administration has not decided
what legislation, if any, is planned as a result of the decisions
of the United States Supreme Court on the gold clause cases.
The President's statement, made at a press conference on
Feb. 20, followed a reading aloud by the President of published reports that a legislative program was devised at the
White House on Feb. 19 during the weekly meeting of the
Emergency Council. From the advices from Washington
Feb. 20 we quote further as follows:
Mr. Roosevelt said that gold was not discussed by the council, except
that he congratulated Attorney General Cummings on his arguments before
the Supreme Court.
MMr. Roosevelt also made it clear that not even a tentative program on
gold legislation might be expected for some time.
He estimated that at least a week would be required for attorneys to make
complete analyses of the four gold decisions. Only after these had been
prepared would administration officials be in a position to judge whether
more legislation wasinecessary.
Mr. Cummings had said yesterday that he considered contingencies
requiring further legislation only as "remote possibilities."
The principal question at issue, and one on which legislation may hinge,
regards bonds of the United States held abroad. It is expected in some
quarters that they may be used as the basis of suits in the Court of Claims
for the difference between the old value in gold dollars and devalued currency.
The Supremo Court ruled that holders of Government bonds in the
United States could not sue the Government,sincelno damages were shown.
Reports have reached Washington that foreign holders of our bonds are
forming organizations for the purpose of filing cases in the Court of Claims.
Such action, it is believed in official quarters, could be invalidated by
passage of a law specifically forbidding the filing ofsuch claims by foreign
bondholders.
Another point of discussion concerns State bonds which have a gold
clause. Some State officials have expressed anxiety about these obligations
because of the constitutional prohibition against any State impairing the
value of its own securities.
There is a preponderant opinion in informed quarters, however, that such
fears are groundless,legal experts here holding that State bonds were amply
protected by the Supreme Court decisions.
Incidentally, Washington advices Feb. 20 to the same
paper stated that if the Supreme Court had ruled that the
Government must pay $1.693 for every $1 pledged on goldclause securities sold prior to June 5 1933, the President
would have addressed the people that night for two purposes:
1. To explain what steps would be taken to protect the Treasury from
the finding, and
2. To ask public support for the Government's protective program.
The news that the Supreme Court had upheld the gold
policies of the Administration was received by President
Roosevelt on Feb. 18 in the Cabinet Room of the White
House;from the despatch that date to the "Times" we quote:
That he was jubilant there was no doubt, but his only public statement.
Issued four hours after the gold decisions, was limited to a sentence:
"The President is gratified by the decisions of the Supreme Court of the
United States."
Federal Aviation Commission's Report to President
Roosevelt—Separate Air Commerce to Regulate
All Air Transport Recommended
Reference was made in the "Chronicle" of Feb. 2 to President Roosevelt's special message of Jan. 31, in which he
transmitted to Congress a report of the Federal Aviation
Commission recommending a reorganization of the nation's
civil and military air transport. As was noted in the
"Chronicle" account, the President did not specifically concur in all the recommendations of the Commission. The
report of the FAC said that at present American air transport leads the world, but that many of the air lines are in a
state of financial disrepair which jeopardizes the ability
of some of them to continue operations. The Government
hi the future, the Commission said, should seek to maintain
the best possible transport service for all classes of traffic,
while the supervision of transport development should be
undertaken by a new non-partisan Air Commission, having
the supervision and regulation of air transport as its principal duties. This was one of the report's proposals with
which the President did not agree, since he said that exist-
Feb. 23 1935
ing agencies of the Department of Commerce could satisfactorily perform the duties mentioned.
A press release from the Federal Aviation Commission
summarized some of the other leading features of the report
as follows:
At the same time the report recommended, as an emergency measure,
that the powers of the Interstate Commerce Commission under the present
Air Mail Act be re-defined to permit such immediate steps as may be
necessary to assure the maintenance of air mail lines pending the enactment
of new legislation.
The Interstate Commerce Commission would be given authority to revise
existing air mail rates upward or downward as each individual case might
require. In the same connection it is recommended that the date of taking
effect of certain sections of the Air Mail Act be postponed, in order that
air transport companies which would otherwise have to abandon a part
of their lines before March 1 to comply with the law may carry on as at
present until there may have been further consideration of a permanent
policy.
The report proposes that all regular schedules on all air lines should be
available for the transport of mail, with the object of securing the quickest
delivery possible, and that the Post Office Department should pay to each
line for the service actually rendered and within the amount of the air
mail postage receipts on that line. The Post Office deficit on air mail
would thus be eliminated and atatever additional amounts of direct
financial aid may be necessary to maintain a proper nation-wide transport
service will be appropriated for that specific purpose and allotted by the
new Commission. The report recommends that all such payments be kept
under constant Commission control and modified from time to time as may
he necessary to take account of new developments and to assure the
maintenance of fair competitive conditions.
Predicting the development of regular transatlantic and transpacific
services both by flying boat and by rigid airship, the report recommends
that preparation be made for American participation in such services with
both types of craft. Flying boat service would be developed along the
same lines as domestic air transport, with direct financial aid as necessary
allocated to the operation by the proposed Air Commerce Commission.
Airship service would be provided through the construction by the Govern.
'tient of a large commercial airship and a suitable base, with provision
made for its subsequent lease to a qualified commercial operator. This is
in line with the recommendation of Assistant Secretary of Commerce E. Y.
Mitchell and with a plan proposed to the Federal Aviation Commission by
rear Admiral Hutch I. Cone, Chairman of the Shipping Bureau, as a result
of experience with the administration of the Merchant Marine.
Construction of a naval training airship, suitable for intensive operations
in all weather and especially equipped for training personnel, is also
recommended. This ship would be built for replacement of the 10-year-old
Los Angeles, now out of commission.
Senate Committee Ends Hearings on Black 30-Hour
Week Bill—Continued Protests Against Measure
Protests against the provisions of the pending Black 30Hour Week Bill have continued to be received by the Senate
Judiciary Committee this week, after a subcommittee of that
group on Feb. 16 concluded hearings on the measure.
Previous hearings were described in the "Chronicle" of
Feb. 16, pages 1084-85. Proponents and opponents of the
bill were each given eight days in which to present their
arguments, but Chairman Neely of the Committee said on
Feb. 16 that more than 100 additional persons had asked
permission to testify.
The Consumers Goods Industries Committee on Feb. 17
made public the text of a brief which it had submitted to the
Senate Judiciary Committee, in which it contended that the
arbitrary establishment of a 30-hour working week by
Government order would cripple industry and would injure
both employers and employees. We quote in part from that
brief, as given in the New York "Herald Tribune" of
Feb. 18:
The brief appealed for "a breathing spell for industry" and an opportunity to "collect our strength without letting loose new and destructive
forces to undo everything that has been done." Its conclusions represent
the judgment of spokesmen for industries which employ a susbstantial
proportion of all manufacturing workers. The Consumer Goods Industries
Committee, headed by George A. Sloan, chairman of the Cotton Textile
Code Authority, was created at the suggestion of the National Recovery
Administration after the general code authority conference in Washington
last March.
Calls 30-Hour Week Dangerous
Among the conclusions presented in the brief are:
"Any attempt to reduce the hours of labor to a flat 30-hour week, with
corresponding increases in hourly compensation, is uneconomic, impracticable and dangerous.
"It would dislocate industry and destroy confidence.
"It would aggravate and continuo the depression.
"It would create cost burdens impossible to bear.
"It would increase prices, curtail production and decrease employment.
"It would further curtail our export trade and increase imports.
"It would seriously retard the normal method of recovery; namely, the
revival of the durable goods and construction industries.
"It would force bankruptcies, torment strikes and labor troubles and
strike a death blow at many small enterprises.
"It would stimulate the displacement of labor by machinery."
We also give below an abstract of the testimony at71173
final Committee hearing, as contained in Associated Press
Washington advices of Feb. 16:
To-day's witnesses were Rivers Peterson of Indianapolis, editor of
"Hardware Retailer" and spokesman for the Retailers National Council,
and W. Jett Lauck, economist for the American Federation of Labor.
Mr. Peterson, who said that the council represents 200,000 retail stores.
opposed the bill, asserting that costs would be increased 25% and that
retails have no existent or prospective profits through which the increase
could be absorbed.
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Financial Chronicle
He called the bill not only unnecessary but also destructive and
mischievous."
AMr. Lauck argued that the bill would accomplish "what National Recovery Administration attempted but failed." He said NRA has "been
in atagnatton since March 1934, due to the decision of Code Authorities to
hold fast to profits."
Senator Austen, of the Judiciary Committee was quoted on
Feb. 20 as saying:
lam against this bill because it creates a statutory monopoly of practically
allpf the labor in the country. It would deprive the laboring man of freedom
to sell his labor for more than the limit fixed in the bill—the amount he
could earn in 30-hours. His own ambitions and capacity for additional
enterprise, apparently would not matter."
Action by Senate on $4,880,000,000 Relief Bill—Senator
Byrd Urges Defeat of Measure—Senator Thomas
Proposes Amendment to Reduce Dollar Value
Through Issuance of Silver Money
The principal action taken by the Senate this week on
the work relief bill occurred on Feb. 21 with the adoption
of the McCarran amendment requiring payment of prevailing wages on emergency public works. Pointing out
that the Senate thereby sided with organized labor and
against the Administration, Associated Press accounts from
Washington Feb. 21 said:
The vote for the McCarran amendment was 44 to 43.
Just before the vote a letter from President Roosevelt was read asserting that existing wages would be protected in administering the bill.
The vote, corning after two days of debate on the issue, was the first
major defeat for the Roosevelt forces in the long relief contest.
For a while Administration forces had the amendment defeated by a
tie vote, but just before the decision was to be announced Senator Frazier,
(Rep.). of North Dakota, entered the Chamber and swung the decision
for the amendment by voting "aye."
As an aftermath of the decision of the United States
Supreme Court in the gold clause cases, a move to decrease
the value of the dollar through the issuance of silver money
was made on Feb. 18 by Senator Thomas (Democrat) of
Oklahoma, through an amendment proposed to the $4,880,000,000 work relief bill. Senator Thomas (we quote from
Washington advices to the New York "Times" Feb. 18)
proposed to add a second part to the bill, "providing a
plan to place money in circulation, thereby making it possible
for the people to secure funds for payment of taxes necessary
to balance the budget and to meet the interest and principal
of the bonds made necessary by the appropriation made in
Section 1 of this act." The dispatch further said:
This object would be achieved by directing the Secretary of the Treasury
to issue silver certificates against all silver bullion in the vaults, calculated
at "monetary value," and use these certificates to pay off maturing obligations. The Secretary of the Treasury would also be directed to buy silver
at the rate of 50,000,000 ounces a month until one-fourth of the metallic
currency reserve was held in silver. . . .
Senator Wheeler has pending an amendment to issue currency to pay
the $1,000.000,000 required for the work relief program, and Senator
Adams has offered a proposal to limit the appropriations to $2,880,000.000,
the effect of which would be to prevent work relief and continue the direct
relief system now in effect.
Reporting Senator Thomas as saying that the Supreme
Court's decision "holds Congress has unrestricted and unrestrictable power in handling money." Associated Presss
advices from Washington Fob. 19 went on to say:
"The dollar." he said, "Is now worth $1.26 based on the 1926 price level.
We are going right ahead and try to get that extra 26 cents out of it."
His amendment is designed to raise the market price of silver to the
statutory price of $1.29, at which time the Treasury would be opened to the
free and unlimited coinage of the white metal.
The methods proposed to reach this objective include.
IL Issuing silver certificates on the basis of the $1.29 value against the
400,000,000 ounces of silver in the Treasury. This cost about 50 cents an
ounce and currency has been issued against it only to the total of the
cost
price.
2. Forcing the Federal Reserve Banks to issue $100,000,000 in silver
certificates now hold in their vaults.
3. Speeding up the purchase of silver by the Treasury, paying for it with
silver certificates or gold, and issuing silver certificates against it on
the
basis of $1.29 an ounce.
Pormitting.the acceptance of silver in the settlement of international
balances.
Thomas said his amendment would mean loss than a billion
dollars in
now money. But he contended, it would cheapen the dollar and raise the
price;of silver.
When the market price reached $1.29 and the Treasury was opened to
free coinage. Thomas said,"we will then be ready to propose an international
agreement for bitnetallism."
On Fob. 20 what is described as the most direct attack on
President Roosevelt's work relief program came from the
Democratic side of the Senate when Senator Byrd (of Virginia) asked its defeat as "a proclamation to the world that
the period of acute economic emergency in this country is
over." Thus reporting one of the developments of the day
the "Times" advices Feb. 20 also said in part:
The Virginia Senator broke into the controversy over "prevailing wages,"
indulged in bythe Democrats and Republicans who. for the most part, will
vote eventually for the appropriation in whatever form, and laid down a
proposition.that,President Roosevelt's ambitious plans for both public works
and social service should await recovery.
Thepurest route to that recovery he said, was the more difficult path of
governmental economy and efficiency, instead of the easier road of "extravagant,expenditure that leads to destruction."
1239
Senator Byrd conceded/that relief would have to be carried on by the
Federal Government for the time being, but he insisted that adequate
assistance could be given the needy during the coming year for much less
than $4,880,000,000.
He therefore offered an amendment cutting the fund to $1.880,000,000.
Growth of Debt Is Attacked
This proposal will be considered later in the week in connection with the
Adams "dole" amendment, which seeks to cut the fund to $2,880,000,000.
Senator Robinson, the Democratic leader, jumped into the argument
over "prevailing wages" in an effort to bolster up the hard-pressed administration forces. Senators McCarran, Borah, Couzens and Steiwer had made
obvious inroads with a proposal by Mr. McCarran to specify that the
President must pay the prevailing private wages of each community on the
new works projects.
This stipulation would be in direct violation of one of the major principles
enunciated by the President for the new program—that the payments should
be more than the present dole but less than private wages.
In our issue of a week ago (page 1073) we noted that the
Administration's work relief bill was placed before the Senate
on Feb. 14. At the outset of the contest over the bill on the
floor of the Senate, said the Washington advices Feb. 15 to
the New York "Herald Tribune" Republican Senators,
meeting in conference, decided to try to amend the bill to
bar use of the money as a Democratic campaign fund in 1936.
In part these advices also said:
They determined to press for an amendment which would cause the
measure to expire on June 30 1936, instead of June 30 1937, as the bill now
provides. "If the appropriations run until 1937, they will constitute a vast
campaign fund for the party in power." said Senator L. J. Dickinson, of
Iowa. . . .
Meanwhile, . . . President Roosevelt sought to iron out the trouble
over the wage provisions by giving assurance he would use all his efforts
to prevent destruction of the private wage structure. He gave this assurance
to Senator Joseph C. 0.Mationey, Democrat. of Wyoming. who called at
the White House. The Wyoming Senator, a member of the Appropriations Committee, is supporting the Administration against the prevailing
wage amendment favored by many Senators.
As formal considerations of the measure began with an exposition of
it by,Senator Carter Glass. Democrat, of Virginia, Senator Arthur H. Vandenberg, Republican, of Michigan, attacked.the.bill as "the most amazing
legislative proposal in the history of this or any other democracy."
Vandenberg Assails Measure
"It represents." he said, "four of five billion dollars' worth of lost liberty
and the erection of a corresponding Presidential speculation. It was
born in the mysterious dark; it has defied intelligent illumination; its only
merit is a pious, puzzling hope;its program is a lottery, and its only justification is the counsel of desperation." . . .
The Republican conference discussed numerous phases of the measure
today and overwhelmingly favored the McCarran prevailing-wage amendment, urged that there be full and free discussion on the floor, favored the
Metcalf amendment giving preference to veterans in employment, was
about evenly divided on the Adams amendment to reduce the measure
to $2,880,000,000 and supported the Hayden amendment for allocation
of funds for roads.
Objects to "Omnibus Objectives"
Senator Vandenberg summarized his reasons for opposing the bill as
follows:
First—It is an unconscionable surrender of the Legislature's functions
and a corresponding concentration of equally unconscionable power in a
relatively irresponsible bureaucracy.
Second—It is a blind adventure which commits the country to a year
of dubious uncertainty at a moment when the return of stability is vital
to a restoration of normal commerce.
Third—It is a blank check for the biggest sum of money ever passed in
a single transaction, and the use of the money is so unbounded that it can
warp the lives and livelihoods of every man, woman and child in the land,
and even the character of American institutions.
Fourth—It is not calculated to produce adequate and essential relief,
but is calculated to retard recovery, if we guess correctly what the Administration contemplates.
"The bill is void of any declaration of Congressional policy respecting
the expenditure of this enormous sum of money," Senator Vandenberg said.
On Feb. 15 the Senate adjourned until Monday, Feb. 18,
at which time Senator McCarran offered an amendment to
require the government to pay the prevailing wage on projects undertaken in the work relief program, but the prevailing wage would not have to be uniform throughout the United
States. As to the proceedings on the bill that day the "Times"
stated:
Senator Glass was compelled, by the divergence of view presented,
to
withdraw an amendment made by the Appropriations Committee,
under
which President Roosevelt's power to pay out "relief on account of
unemployment" would have been limited to aiding persons In actual need who
had not within sixty days resigned from or left any position paying
a wage
of more than $50 a month, and who had been unable to find
employment
after a bona fide effort.
Senator Tydings, author of the withdrawal amendment, said
that the
committee intention had been merely to prevent drawing away
from paid
employment men who might prefer to work on the less arduous
government
projects for slightly less pay.
Senator Glass, however, took up the challenge implied in
Senator Cutting's amendment to strike out the limitations. . .
.
The Senate adopted.the.Committee's,amendment empowering
the President to use work relief funds to finance purchase of farm
lands and equipment for farmers,farm tenants, share-croppers or farm
laborers.
From Washington Fob. 19 the "Times" reported:
For the second time in two weeks the administration
was forced today to
draw upon unexpended public works funds to
finance relief as the Senate
continued to wrangle over President Roosevelt's
$1,880,000,000 relief
resolution.
The Public Works Administrator, Secretary
Ickes, made $45,000.000
available to the Relief Administrator, Harry L. Hopkins, thus
increasing
the temporary "loan" to that agency to $95,000,000.
Mr. Ickes shifted
$50.000,000 of PWA balances to.the Relief Administrator ten
days ago
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Financial Chronicle
Feb. 23 1935
when the new appropriation seemed hopelessly tied up in the Senate Appropriations Committee.
4The $95,000,000 is to be returned to the PWA, Mr. Ickes said, when the
new relief appropriation becomes available. . . .
of Florida,(who introduced the bill), at the time the amendment originally passed, Washington advices, Feb. 11, to the
New York "Times" of Feb. 12, said:
Prevailing Wage Debated
Debate on prevailing wage proposals consumed most of the Senate's time
on the relief resolution to-day. Toward the end of the proceedings Senator
La Follette announced he would introduce tomorrow an amendment to
increase the appropriation by $5,200,000,000, raising the total to $10,050.000.000 and provide specific allocations as follows: $1,162,000,000 for highways, $650,000,000 for elimination of highway hazards: $125,000,000 for aid
to States; $520,000,000 for new Federal buildings and $3,044,000,000 for
non-Federal projects.
Senator Wagner to-day threw in his lot with those seeking to write a
prevailing wage amendment into the resolution, despite the protests of the
President's spokesmen that it would "destroy the very purpose" of the new
works relief program.
Senator Wheeler, of Montana, author of the amendment, today challenged a statement made some days ago by Senator Fletcher that the change
would cost the Government up to $100,000,000 annually. He used Treasury
figures in estimating $25,000,000 a year. Senator Fletcher explained that he
had been thinking in terms of total cost to the Government over a period of
years.
Legislation to Curb Foreign Propaganda in United
States Urged by House Investigating Committee—
Says Fascists, Nazis and Communists Alleged to
Have Spread Revolutionary Doctrines
Enactment of legislation to prevent the spread of revolutionary propaganda in the United States was recommended
to Congress on Feb. 15 by a special House committee which
has been investigating reports of un-American activities.
The Committee, headed by Representative McCormack of
Massachusetts, summarized evidence of Fascist, Nazi and
Communist propaganda sponsored both at home and abroad,
and included in its proposals the recommendation that all
foreign propagandists be compelled to register with the State
Department. It also suggested that their stay in this country
be subject to the pleasure of the Secretary of State, and
listed several other proposals designed to eliminate revolutionary propaganda. The report charged that diplomatic
and consular officers of friendly foreign Governments had
engaged in propaganda favorable to their own form of
Government as substitutes for the form now existing in the
United States.
Findings of the Committee were given in part as follows
in a Washington dispatch of Feb. 15 to the New York
"Times":
The House Committee's report said Fascist efforts in the United States
had no connection with any similar activity in a European country, and
the Communist movement in this country was termed not sufficiently strong
numerically "to constitute a danger to American institutions at the present
time." Communist agitation was declared widespread, however.
Nazi Record Is Traced
The bulk of the report was taken up with a recital of the Committee's
findings concerning Nazi propaganda and organization in the United States
since Chancellor Hitler's party has come into effective power in Germany.
The Committee's conclusions were reached after hearings in Washington,
New York, Chicago. Los Angeles, Asheville. N. C., and Newark. The
Committee includes, besides Chairman McCormack, Representatives
Dickstein of New York, Kramer of California, Jenkins of Ohio, Taylor of
Tennessee, and Guyer of Kansas.
An effort to continue the Committee's activities until Jan. 3 1937 was
temporarily blocked on the floor to-day. Mr. Kramer asked unanimous
consent to consider a resolution to that effect, and several members jumped
to their feet to ask him questions about its findings.
Representatives Blanton of foxes and Martin of Massachusetts made
formal objection, and the matter was dropped for the present.
The Committee's legislative recommendations were as follows:
1. Thas all publicity, propaganda, or public relations agencies, or agents
or agencies representing in this country a foreign Government,foreign political power, or foreign industrial organization, must register with the Secretary of State, declaring details of their employment.
2. That the Secretary of Labor be empowered to shorten or terminate
the sojourn in this country of any visitor engaging in the promotion or dissemination of propaganda, or carrying on political activity in the United
States.
3. That treaties be negotiated with foreign countries by which they
would receive back immigrants of their nationality who might become
subject to deportation under our laws.
4. That it be made unlawful to advise, counsel or urge any member of
the military or naval forces of the United States, including reservists, to
disobey laws or regulations.
5. That Federal Attorneys throughout the country be empowered to
proceed against witnesses who refuse to appear, testify, or produce records
before any lawful Congressional committee.
6. That it be made unlawful for any person to advocate changes in the
manner that incites to the overthrow or destruction by force and violence
of the Government of the United States, or of the republican form of government guaranteed by the Constitution.
Senate Passes Farm Credit Bill—Amended to Reduce
Interest on Mortgage Loans from 43'% to 3%%
The Senate on Feb. 11, without a record vote, passed the
Administration's Farm Credit Bill, coordinating and liberalizng agricultural credit activities. The measure was sent to
he House. The Senate, before passing the bill, amended it on
Feb. 12, by a vote of 43 to 39, to provide for a reduction of
interest rates on farm mortgage loans by Federal agencies
from 4M% to 3M%,until 1938. The amendment, which was
offered by Senator Wheeler, had previously been adopted by
the Senate on Feb. 8 by a vote of 39 to 33, but a motion to
reconsider made at that time was granted.
As to the statement that the change would cost the Government $100,000,000 annually, made by Senator Fletcher,
In regard to the bill the advices stated:
Under the bill power to disco= motes of farm co-operative associations
would be given to the Federal Intermediate Credit banks. The Farm Credit
Administration's authority to make direct loans would be increased and
conflicts in the provisions of various agricultural laws would be cleared up.
Bills Introduced in Senate and House Amending Agricultural Adjustment Act
On Feb. 11 Senator Smith, Chairman of the Senate Committee on Agriculture and Forestry, and Representative
Jones, Chairman of the House Committee on Agriculture,
introduced bills in Congress amendinp the Agricultural Adjustment Act. It was stated that the measures are modified
somewhat in text, but retain the principle embodied in the
legislation which failed of passage last year—that of clarifying the law in line with the original intent of Congress.
Associated Press advices from Washington, Feb. 12, given
in the New York "Herald Tribune" of Feb. 13, had the
following to say regarding the Senate bill:
The principal change from the 1934 suggestions is the elimination of the
clause which would allow Secretary Wallace to license farmers who also act
as middlemen for their product. The new bill states plainly that producers
shall not be subject to license. This was one of the things Mr. Byrd centered
upon.
Under the new measure the Adjustment Administration, headed by the
Secretary and Chester C. Davis, would have the power to examine all the
books and records of handlers and distributors of farm commodities affected
by marketing agreements—agreements affecting the handling of farm commodities.
The Secretary would have the right also to license minorities who balk
at marketing agreements and to impose them outright on middlemen groups
where two-thirds of the farmers affected want them.
Among the new provisions in the current bill is the proposal to allow
farmers who reduce production to be paid in commodities instead of cash.
For example, the Government could give a farmer some of the cotton it has
accumulated in return for his agreement to curtail his acreage.
Other amendments were.
Official recognition of co-operative groups.
Increasing the flexibility of tax provisions—for example, livestock may be
taxed without benefit payments to livestock growers but to control feed
grains and surpluses.
Granting authority for sales quotas in marketing agreements, provided
they were favored by two-thirds of the producers.
Reduction of AAA powers to levy fines up to $1,000 a day, to $50 to $500,
and then only after hearings.
Social Security Bill—House Committee Imposes Flat
Payroll Tax for Unemployment Insurance in Place
of Base Tax on Business Conditions—Labor Leaders
Opposed to Job Insurance Provisions—Compulsory
Sickness Provisions Opposed by American Medical
Association
On Feb. 20 the "House Ways and Means Committee, in
its consideration of the Social Security Bill, decided to impose
a flat Federal payroll tax for unemployment insurance
instead of basing the levy on business conditions.
The Associated Press in reporting this from Washington
likewise stated:
That change was written into the bin, Representative Robert L. Dough
ton, chairman, said, with the apparent approval of Administration officials.
Under the committee's amendment, the tax will be 1% in the 1936 calendar
year. 2% in 1937 and 3%—the proposed maximum—in 1938.
This level was the same amount presented to Congress by the Administration except for the elimination of fluctuations with business conditions.
The committee's decision was that a fluctuating tax would cause business
uncertainty.
In its present form the bill would have no effect upon taxes levied by
states for unemployment insurance funds. The committee tentatively
approved, however, a proviso permitting employers who donate to state
funds to obtain a 90% credit on their Federal levies.
The unemployment insurance provisions of the bill were
opposed on Feb. 17 by a group of labor leaders, welfare
workers, editors and professors, said the Washington advices
Feb. 17 to the New York "Herald-Tribune," which in part
added:
The attack was directed against the tax remission method incorporated in
the bill under which employees in each state would be given credit in a
Federal payroll tax for such contributions as they made to state Job insurance systems.
Declaring this to be inadequate and unworkable, the group demanded a
Federal subsidy plan under which all payroll tax proceeds would go to the
Treasury and be returned to the states only where high and uniform standards, prescribed by the Federal government, were maintained.
The attack was held to be significant, particularly because it opened
another controversy of importance over the security legislation. The old
age pension plan had previously been the center of conflicting agitation.
Green Joins in Attack
Among those sponsoring the new attack were William Green. President
of the American Federation of Labor; John L. Lewis,President of the United
Mine Workers of America; Professor Edward Corwin,of Princeton,formerly
President of the American Political Science Association; Paul Kellogg.
editor of "The Survey"; Mary K. Simkhovitch, head of the Greenwich
House, New York, and Bruce Bliven, editor of "The New Republic."
Volume 140
Financial Chronicle
Their statement pointed out that the advisory council had recommended
a subsidy plan, but had been overruled. They held that the job-insurance
clauses of the present bill set up a few "insignificant standards," that
uniformity of provisions and benefits for different states was not required,
and that the method of control of funds by the Federal government evolved
In the measure was open to serious constitutional and practical objections.
On Feb. 16 a resolution attacking those portions of
President Roosevelt's social security program which deal with
medical care was adopted unanimously at Chicago by the
House of Delegates of the American Medical Association,
composed of the elected representatives of nearly 100,000
physicians.
This was indicated a dispatch from Chicago to the New
York "Times" in which it was also stated:
Approval of the report drawn up by a committee headed by Dr. Harry
H. Wilson of Los Angeles, marked the conclusion of the two-day meeting,
the first special session held since the United States entered the World War.
While the report assailed any form of compulsory sickness insurance or
any attempt by laymen to dictate the manner in which medical service is
to be rendered, finding the administration's social security program guilty
of violating those two precepts. it was not entirely condemnatory. . . .
Flexibility Is Sought
As an alternative to national, compulsory health insurance, control of
medical service by laymen and socialized medicine, the report offered
voluntary plans, controlled by physicians in the communities in which they
originate and adapted to the needs of those communities with a flexibility
mpossible in a national project.
A reference to the pending bill appeared in our Feb. 16 issue, page 1074.
Bill ProposingjEstablishment of Federal Intermediate
Industrial Credit Corporation Introduced in House
—Central Corporation with Capital of $100,000,000
Would Be Authorized to Issue Debentures Up to
$1,000,000,000
The establishment of a Federal Intermediate Industrial
Credit Corporation is proposed in a bill introduced in the
House on Feb. 19 by Representative Koppleman (Rep.) of
Connecticut. The Corporation would be capitalized at
$100,000,000, subscribed by the Treasury, and have power
to issue $1,000,000,000 in bonds and debentures guaranteed
both as to interest and principal by the Government. Further
advices are quoted as follows from Washington advices Feb.
19 to the New York "Journal of Commerce":
Carrying into effect the findings of Dr. Theodore N. Beckman of the
Department of Commerce, who recently made a study of credit conditions
confronting small enterprises, the legislation was referred to the House
Banking Committee for its consideration.
Under terms of the proposal not less than 12 regional branches would
be established throughout the Nation. . . .
Under reasonable and proper safeguards, and with elimination of hampering regulations in the making of applications and the granting of loans,
the Corporation is authorized to loan sums up to $500,000 to smaller manufacturers, commercial and service establishments, either directly or by
rediscounting loans made through other financial institutions.
The bill eases credit restrictions by granting loans secured by mortgages
on plant and equipment, by warehouse receipts, shipping documents and
other evidences of probability of repayment of the loan when due. UP to
a maximum of 75% of the appraised values of the security offered for the
loan.
Provision is made in the bill that loans shall run for not less than six
months nor more than five years. Banks would not be allowed to rediscount with the Corporation any note or other obligations upon which the
original borrower had been charged a rate of interest of more than 2%.
The Corporation would establish a rate of rediscount not exceeding by
more than 13.i% per annum average rates of interest and discounts paid
by the Corporation on its outstanding notes. In making direct loans the
Corporation would charge a rate of interest not less than 1% and not more
than 2% per annum over and above the rediscount rate.
Explaining his proposal to the House, Representative Koppleman said
that it is intended to do for business that which has already been done for
farmers through the Farm Credit Administration, for home owners and for
large enterprises thriugh the RFC. Although Congress recently enlarged
the industrial lending powers of the RFC, he said, that experience of firms
in his District during the past few days have disclosed that the Federal
agency was still unable to supply the needy relief.
"Requirements of the RFC are still too stringent," he declared. "We
must go further. We must not think of this question in terms of relief
but we must think of it in terms of recovery. Industry and commerce do
not ask for relief but they do rightfully demand that the Federal Government take immediate steps to assist it to recovery by enactment of such
legislation as will remove dangers and conditions which it has been forced
to face during recent years."
In the advices Feb. 19 from Washington to the New York
"Times" it was stated that under the provisions of the bill
the contemplated Intermediate Industrial Credit Corporation would be administered by a board of nine directors
appointed by the President with Senate confirmation. Members would have to be experienced in intermediate and longterm credit and familiar with problems of small industrialists,
wholesalers, retailers and service establishments.
House Appropriations Committee Reports War Department Supply Bill, Completing Largest Defense
Program Since 1921—Measure Carries $378,699,488,
or $50,000,000 Above Current Fiscal Year
The most extended military program for the United States
since 1921 is provided for in the War Department Sapply
Bill, which was approved on Feb. 19 by the House Appropriations Committee. The measure carries a total appropriation of $378,699,488, with $318,131,482 set aside for
1241
strictly military purposes. The Committee, in issuing its
favorable report on the bill, indicated a total expenditure
for national defense, including naval appropriations, at
about $100,000,000 more than the amount allocated for this
purpose in any of the past 15 years. The War Department
Supply Bill alone carries about $50,000,000 m4re than the
similar appropriation for the current fiscal year, while this
total is $672,205 above the budget estimate. The bill was
summarized, in part, as follows in a Washington dispatch
of Feb. 19 to the New York "Times":
The committee left with President Roosevelt the decis:on on whether
an even larger amount should be expended by giving him discretionary
authority to increase the standing army from 118,750 to 165,000 men, an
increase of 46,250. He would also have discretion to add 5,000 men to
the National Guard.
The bill approved by the committee would authorize such additional
expenditures as the exercise of such discretionary authority might Wail.
"It seems particularly fitting at this time to allow the Pres dent to
choose between added enlisted strength and added expense," the report said.
The committee thus came to the support of General Douglas MacArthur,
Chief of Staff of the Army, who, in an appeal before the comm!ttee for
a larger enlisted strength, said that the present total of 118,750 men was
"so low a figure that it is a continuing menace to the safety of the
country."
He recommended an immediate increase to 165,000, but said that the
attainment of this minimum within four years would be "a more or less
satisfactory solution." He declared that there were hardly more than
60,000 combatant soldiers now in the army and said that this was less
than three times the number of men on the police force of New Yolk City.
Provision of $60,567,966 was made for rivers and harbors and related
non-military activities. This was $134,878 less than in the current fiscal
year. The committee explained, however, that Public Wollos funds would
augment these expenditures.
Statement by Chairman
Bringing the bill to the floor of the House shortly after it met at
noon, Chairman Parks of the committee urged early favorable action, saying:
"We are sitting on a volcano at home and abroad. We cannot blind
ourselves to the menaee of radicalism within our borders and to warlike foreign activities."
He explained the committee's inability to provide for the $450,030,000
rehabilitation of the military establishment demanded by the general staff
and keep within the limitations laid down by President Roosevelt in
the budget and asked Congress and the administration to consider whether
a larger spending program was not advisable.
While he was addressing the House, Chairman XicSwain of the House
Military Affairs Committee was urging upon President Roosevelt a 5-year
aircraft construction program. Within that period, he said on leaving
the Executive offices, he hoped to see 4,000 new planes supplied lo the
army and 2,200 to the navy.
Says Program Lags Four Years
He declared that the country was now four years behind in the present
5-year program of aircraft construction. He recommended to the President, he said, that the administration adhere to the policy o,f buying planes
and other aircraft on an open bid basis through negotiated contricts.
To the Army Air Corps as a whole the committee allotted $45.600,444
an increase of $26,376,490 over the total for the current fiscal year. This,
the committee explained, was for expansion in various directions, but
largely for new planes.
The bill provides for acquisition of 547 additional planes by the War
Department at an estimated cost of $7,686,753. Of these, 450 planes for
the army and 19 for the organized reserves would be replacements.
The new planes would raise the total on hand in June 1936 to 1,445.
Hearings on Administration's Banking Bill Begun by
House Banking Committee—Chairman Crowley of
FDIC Urges Wider Federal Control Over Banks
Hearings by the House Banking and Currency Committee
on the Administration's Banking Bill of 1935 were begun on
Feb. 21, with Leo T. Crowley, Chairman of the Federal
Deposit Insurance Corporation as the first witness. References to the bill appeared in these columns Feb. 9, page 893,
and Feb. 16, page 1073. A broadening of Federal control
over banks and the placing of a greater burden for deposit
insurance on the bigger institutions was asked by Mr.
Crowley, according to the Associated Press advices, which
state that he urged upon the Committee that:
1. That the present maximum deposit insurance of $5,000 be made
permanent.
2. That the FDIC "be granted the specific power to refuse the admission of new banks into the insurance fund where such admission would
weaken the banking system" regardless of the banks' actual solvency.
3. That the right to buy assets of closed Federal Reserve member banks
be extended until July, 1936. and permitted "whenever such action will
avert an impending loss and facilitate a merger of consolidation."
4. That banks which do not belong to the Federal Reserve system be
given a right to withdraw from the deposit insurance fund upon "adequate
notice."
5. That the FDIC be given the right to terminate the insurance of any
bank.
6. That periodic statements of conditions be required of all banks.
In United Press accounts from Washington Feb. 21 Mr.
Crowley is said to have warned that insurance of all bank
deposits, instead of those only up to $5,000, would increase
the possible liability of the Federal government by
$14,000,000,000.
Senator Wagner Introduces Labor Dispute Bill—Would
Outlaw Company Unions
Senator Wagner (Democrat) of New York introduced on
Feb. 21 his labor disputes bill, to which reference was made
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Financial Chronicle
in our Feb. 16 issue, page 1074. On Feb. 21 Senator Wagner
was reported as stating that the enactment of the bill would
"stabilize and improve business by laying the foundations for
the amity and fair dealing upon which permanent progress
must rest."
United Press accounts from Washington, Feb. 21, had the
following to say regarding the proposed legislation.
Senator Wagner, who fought for a similar bill at the last session, intends
to insist upon decisive action. The measure does not have administration
support.
Senator Wagner said the temporary labor relations board set up last
spring "is gradually but surely losing its effectiveness because of its inability
to enforce its decisions." He proposed to make the board permanent, with
unquestionable powers to settle labor disputes.
The new bill would set up a permanent National Labor Relations Board
of three members to supervise the settlement of labor disputes. The bill
declares the policy of the United States to be encouragement of' the practice
of collective bargaining" and protection to "the exercise by the worker of
full freedom of association, self-organization and designation of representatives of his own choosing for the purpose of negotiating the terms and conditions of his employment."
The measure would prohibit an employer from interfering with or domination the formation or operation of a union, thus outlawing company
unions and assuring enforcement of Section 7 A.
It cites unfair labor practices and gives the NLRB power to prevent any
Person from engaging in them. Orders of the board would be enforceable
through United States courts.
"The breakdown of Section 7 A brings results equally disastrous to industry and labor," Senator Wagner said. "Last summer it led to a procession
of bloody and costly strikes which in some cases swelled almost to the
magnitude of national emergencies."
Repeal of Publicity Provision of Federal Income Tax
Law Proposed in Bill Introduced by Representative
Bacon—Early Action on "Pink Slip" Urged
Early action on his bill providing for the repeal of the
provision in the Revenue Act of 1934 providing for the
publicity of Federal income tax returns was urged upon the
House Ways and Means Committee on Feb. 14 by Robert
L. Bacon (Rep.), of New York, who introduced the repeal
legislation on Feb. 8. In a communication on Feb. 14
to Chairman Doughton of the House Committee, Reprosentative Bacon said:
With a view to the certain and outright repeal before March 15 next
of subsection (B) of Section 55 of the Revenue Act of 1934 (the so-called
pink slip section), I desire earnestly to request a hearing by your Committee
on H. R. 5536, which was introduced by me on Feb. 8.
I deem it essential that representatives of the Administration, including
the Secretary of the Treasury, be invited by your Committee to such
hearings, and I earnestly hope you will see fit to call for their appearance
so that their viewpoint on the proposal may be gained.
This is urged because of the tremendous importance of the principle
Involved—whether the relationship of the private citizen to his Government
on matters pertaining between them alone shall be publicly exposed, and
whether such knowledge shall he published for the use of individuals who
cannot possibly justify any social right to it. And it Is my personal belief that most private citizens, irrespective of means, and whether they
pay taxes or not, are rebelling at the principle involved in the invitation
to snoopery contained in the present publicity provisions, and are seriously
concerned and disquieted to know just how far the Government may
go in the future in removing the protection of personal rights.
Most of the complaints I have received have been from people of modest
means,small business men and the salaried or wage classes. As a numerical
proposition it is natural that they should come from this group. It is
an ironic commentary, so far as "catching the big follow in tax evasions"
Is concerned, that of the total individual returns to be filed next March,
roughly 90% will come from those whose net incomes range in the three
lowest classes, $1,000. $2,500 and up to $5,000. And it is therefore particularly this group who will have their private affairs, their small businesses, salaries and wages held up to their business competitors, and to
sharpers and the snooping fraternity in general. And this, strangely
enough, whether they ultimately pay a tax or not. So far as the salaried
and wage classes are concerned, the present provision amounts to the
publication of what they receive.
Publication of the pink slips will give no sound index to anything and
will create no real knowledge for the Government's use. But it will create
knowledge that may be used for the harrassment of private citizens by
business competitors, sharpers and the criminally ingenious.
Senator Copeland (Dem.), of New York has also introduced a bill for repeal of the provision.
Representative Bacon's bill has received the approval
of the New York State Chamber of Commerce, which on
Feb. 8 adopted a report declaring the tax publicity clause
to be harmful to national welfare and a moanco to individual
taxpayers. Copies of the resolution adopted were sent
President Roosevelt and members of Congress.
Repeal of Publicity for Income Tax Returns Urged
in Resolution Adopted by Merchants Association
of New York
The Merchants' Association of New York announced
Feb. 16 that ,it had placed in the hands of all the leaders
in Congress a resolution adopted by the Association on
Feb. 14 at a meeting of its executive committee calling for
the immediate repeal of that provision of the income tax
law which calls for publicity for income tax returns. The
resolution reads as follows:
!Whereas, The Federal Revenue Act of 1934 requires for publicity purposes the filing of a special report showing the gross income, total deductions, net income and tax payable by every income taxpayer; and
Whereas, Federal officials have ample power to investigate and ascer-
Feb. 23 1935
tain the facts with regard to any return suspected of being inaccurate,
and provision is made for proper committees of the Congress to obtain
similar information; and
Whereas, Experience with a publicity provision in the Revenue Act of
1924 showed that such publicity produced little or no information of
value to the tax authorities; and
Whereas, Such publicity furnishes such material for gossip, for the satisfaction of idle curiosity, and, what is far worse, for the use of swindlers,
sharpers and other criminals, and violates the natural rights of privacy
for personal affairs; it is hereby
Resolved That the Merchants' Association of New York advocates the
immediate repeal of the provision in the Federal Revenue Act of 1934
permitting public inspection of income tax returns, which provision, in
Its judgment, is contrary to the public interests.
Passage by New York Legislature of Buckley-Falk
Bill Providing for Deduction from Taxable Income
of Dividends on Preferred Stocks of National
Banks Advocated by Merchants' Association of
New York
In order to relieve National banks which are subjected
to unfair tax discrimination as compared with State banks
in connection with capital notes held by the Reconstruction
Finance Corporation, the Merchants' Association of New
York has asked the Legislature to pass the Buckley-Falk
bill, providing that dividends paid on preferred stock of
National banks may be deducted in calculating income
subject to taxation by the State of New York. The Association, under date of Feb. 13, said:
When the RFC adopted the policy of furnishing fresh capital to banks
It was permitted to purchase the preferred stock of National banks, but
It was found that a provision in the New York State Constitution prohibited the sale of any bank stock without it being subject to the double
liability clause. The RFC, therefore, agreed to purchase capital notes
or debentures of State banks to accomplish the same objective. It was
found, however, that when income tax returns were made up the State
banks were permitted to deduct the interest paid upon their capital notes
held by the RFC from their income, while the National banks could not
legally do likewise with the dividends paid to the RFC upon their preferred stock.
"This is not only unfair, but it is also probably discrimination against
National banks and in favor of State banks, contrary to the principles
of law laid down in decisions of the United States Supreme Court," the
Association declared.
Senate Committee Begins Consideration of Guffey
Bill to Classify Coal Industry as Public Utility—
Measure Supported by United Mine Workers of
America
Hearings were begun on Feb. 19 before a Senate InterState commerce sub-committee on the Guffey bill, which
was formulated as a measure to "save" the bituminous coal
industry by fixing prices and allocating production. Advocates of the bill at the initial hearing included Senator
Guffey of Pennsylvania and representatives of the United
Mine Workers of America. Although the measure had been
described in some quarters as possessing Administration
backing, President Roosevelt said at his press conference
on Feb. 13 that he was satisfied with the operation of the
code for the bituminous coal industry, and saw no reason
to change at this time to other methods of regulation.
Senator Guffey's bill would classify the coal industry as
a public utility and would bring it under more direct Federal
supervision. In that connection, observers saw some support for the principle of the measure in President Roosevelt's
special message to Congress on Feb. 20, when he asked for
continuance of the National Recovery Administration and
recommended that the coal industry be regarded as a public
utility. The text of the President's message is contained
elsewhere in this issue of the "Chronicle."
Associated Press Washington advices of Feb. 19 described
the first hearing on the bill as follows:
Senator Guffey, Democrat of Pennsylvania, first witness before a Senate
Inter-State commerce sub-committee hearing on his bill to regulate the
Industry as a public utility, said over-production and cut-throat competition had brought "ruin" to operators, miners and investors.
"In my judgment," Mr. Guffey declared, "this legislation will eliminate
these conditions in that it will enable the owners of and the investors in
bituminous mines to obtain a fair return on their investments; it will benefit
those who labor in and about the mines through the payment of fair wages
and the granting of improved working conditions."
The bill would create a national coal commission within the Interior
Department, empowered to fix prices and allocate production.
Henry Warrum, chief counsel of the United Mine Workers, quoting
from Government reports, asserted the valuable Pittsburgh coal seam
would be exhausted in 100 years at the present rate of production. On
this basis, he said the conservation features of the Guffey bill demanded
its passage.
Meanwhile, a committee of operators set out to draft their rejection
of the United Mine Workers demand for a $5.50 day and 30-hour week
throughout the industry under new contracts to replace those expiring
March 30.
Bill Introduced in Senate to Re-inforce Anti-Trust
Laws and Effect Decentralization of Corporations
Through Graduated Tax on Capital
Legislation designed to reinforce the anti-trust laws and
bring about decentralization of large corporations through
imposition of a graduated tax on their net capital returns is
Volume 140
Financial Chronicle
proposed in a bill introduced in the Senate on Feb. 19 by
Senator Wheeler, Chairman of the Interstate Committee
Committee.
According to a Washington account Feb. 19 to the New
York "Times" from which the foregoing is taken the corresponding House Committee met simultaneously to begin
consideration of an omnibus measure to eliminate holding
companies from the public utility field and to bring gas and
electric operating companies under strict Federal regulation.
From the same account we also take the following:
Neither proposal has the expressed support of the Administration, although the latter measure is an attempt to carry out President Roosevelt's
wishes.
Senator Wheeler told the Senate that his bill was founded on the principle that there were "social and economic evils inherent in size iteslf."
The measure, he said, would impose taxes ranging from a minimum of 2%
on a net capital return to corporations of over $3,000,000, up to 25% on
returns of $50,000,000 and over.
Although not designed exclusively for the purpose, the Wheeler bill is
a direct attack against utility holding companies, in line with the measure
before the House Committee, and was promised by the Senator at the
time he introduced the utility bill in the Senate.
It was indicated that Mr. Wheeler's measure might be combined with
the first House tax bill that is sent to the Senate. The bill, sponsored
by Chairman Rayburn of the House Interstate Commerce Committee,
does not now contain any provision for taxing holding companies, but it is
his intention to submit legislation which would at least withdraw their
present tax Immunity.
Dr. Splawn Proposes Exemptions
An exception to this is expected to be adopted by the committee to carry
out a suggestion made to it to-day by Walter M. W. Splawn, an Interstate
Commerce Commissioner. Dr. Splawn suggested that tax exemption
be allowed in case of issuance of new securities in exchange for those now
outstanding as an inducement to the integration of operating companies
along more regional and economic lines.
The Wheeler bill in addition to the graduated taxes it would impose
on net capital returns of a corporation, directs the Federal Trade Commission to investigate the relation, in the various types of business enterprise, of the total resources of the corporation to its efficiency. This
would be with a view apparently to ascertaining the desirable size of various
corporations.
1243
Mr. Hogan also charged the banker was not given the customary 30-day
notice before deficiency in his 1931 income tax was formally announced.
but the Government attorneys attempted to show notice was unnecessary
because of prior personal conferences between D. D. Shepard, the defendant's tax lawyer, and Revenue Bureau officials. Mr. Russell testified under
examination by Mr. Hogan that the reason papers were taken to the Attorney-General's office before the reassessment notice was merely "to let
them know we were prepared to proceed."
Contends He Overpaid
Mr.Mellon contends not only that he owes the Government nothing in delinquent taxes but that he has $139,000 coming because he overpaid his
taxes.
The present hearing is on a Mellon petition for a redetermination. In
his petition he asserted the Government "would not have made the determination (for alleged delinquent taxes) nor issued the notice except for the
fact the Attorney-General directed such to be done." . . .
Secretary Made OW Report
Howard M. Johnson, Mr. Mellon's financial secretary ... took all the
blame for compiling the Mellon 1931 income tax return. He said he took
the report to Washington on March 14 1932, and found great confusion at
Mr. Mellon's apartment because his employer was packing for a trip to
London.
He said he had only a "short time" with his employer. The Secretary
made a cursory examination of the report and signed it on his assurance
it was correct. Mr.Johnson added. Mr.Mellon had resigned as Secretary of
the Treasury then and was heading for London to become Ambassador
to the Court of St. James's.
On Feb. 20 Mr. Johnson is reported as having stated that
Mr. Mellon sold two blocks of stock "short" in 1931 while
he was Secretary of the Treasury, taking a profit on one and
a loss on the other.
FTC in Report to Senate Finds Complexity of Utility
Holding Companies Security Issues—Operating
Company Issues Found Simpler
The security issues of many utility holding companies
are so complex as to "tax the ability of a financial expert,"
it is held, in an instalment of the Federal Trade Commission's
report on its survey of the corporate organization, control
and financial practices of holding companies and their subUnited States Supreme Court Again Denies Mooney sidiaries. The instalment deals with the capitalization of
public utility holding and operating companies which the
Hearing
A petition for a hearing on the reopening of the case of Commission examined, the purposes for which securities
such
Thomas J. Mooney before the United States Supreme Court, were issued, methods of the issuance and disposal of
was denied by that Court on Feb. 11. This action means securities, and gives several instances of the particular practhat Mooney, who is serving a life sentence on charges of tices of holding companies and their subsidiaries in connection
alleged participation in the 1916 San Francisco Preparedness with such issues. The report also reverts to the subject of
Day bombing, must first make his appeal in the courts of write-ups, discussed in another instalment already made
California, as ordered by the United States Supreme Court public, and the effect of such write-ups upon security holders
on Jan. 21. At that time (as noted in our issue of Jan. 26, and the rate-paying public.
A press release issued by the Commission Feb. 14 described
page 564) the Court denied "without prejudice" a plea of
Mooney to file a petition for a writ of original heabeas the survey, in part, as follows:
Among other things, the Commission says its investigation discovered a
corpus. It was stated then that if Mooney failed to receive "bewildering array of types of security issues," of varying features. The
relief from the California Supremo Court the United States financial structures of most of the top-holding companies examined have
several issues of stocks and long-term debts. For instance,
Supreme Court would consider his application for a review. included
Associated Gas & Electric Co. was found to have had 3 classes of common
Associated Press advices from Washington Feb. 11 said:
stock, 6 classes of preferred stocks, 4 classes of preference stock, 7 issues
In asking the Court to reconsider its recent refusal his (Mooney's] of secured bonds and notes. 24 classes of debentures (many of them conattorneys asserted the California Supreme Court repeatedly had held the
vertible into preferred and common stocks of the holding company or its
State courts were without authority to reopen his case. fhey insisted
subsidiaries or affiliates), and 4 series of investment certificates. &e. In
California took the position his only remedy was through a pardon by
addition thereto, this company had various stockapurchase warrants and
the Governor. This has been refused four times.
As it was a matter of extreme doubt, they said, whether any relief could
be obtained in the State courts, they urged the high Court not to force
them again to resort to California courts.
They insisted those courts already had prejudged the case, and had
indicated extreme prejudice, thus precluding any possibility of an impartia
judgment.
Tax Appeals Board Hears Government Suit Against
Andrew W.Mellon—Former Treasury Head Charges
Political Persecution—Attorney-General Cummings Presses Claim for $3,089,000 Assessment
Hearings were held this week before the Tax Appeals
Board in Pittsburgh on charges by the Government that
Andrew W. Mellon, former Secretary of the Treasury, owes
approximately $3,089,000 as an extra income tax assessment
on his 1931 income. Mr. Mellon's attorneys, at the opening
hearing on Feb. 19, sought to prove that the prosecution of
Mr. Mellon by Attorney-General Cummings was actuated
by political motives. Charles T. Russell, a Deputy Commissioner of Internal Revenue, testified that an assistant
in the Attorney-General's office had passed upon and
initialed the letter notifying Mr. Mellon of the Treasury
assessment on his 1931 income.
The proceedings against Mr. Mellon began in March of
last year, and since that Mr. Mellon has issued several
statements charging the Administration with "political
persecution."
Associated Press advicesfrom Pittsburgh Feb. 19 described
the initial hearing in part as follows:
Under questioning by Attorney Frank J. Hogan, chief counsel for Mr.
Mellon, Mr. Russell identified the initials,"F.J. W." on copies of the letter
brought from his files as those of Frank J. Wideman, an Assistant United
States Attorney-General.
rights outstanding from time to time. The Commission says this is perhaps
an extreme case, but, nevertheless, this company has disposed of this
number of different securities to the public "which is undoubtedly perplexed
to understand intelligibly the status of any particular security," and which
would "tax the ability of a financial expert."
In the case of operating companies, the report says that, generally speaking, the investigation has disclosed that they have usually limited their
outstanding securities to an issue of common stock, one or two issues of
preferred, and usually one to three issues of mortgage bonds. However.
there are numerous exceptions to this general rule, depending principally
upon the size and age of the company.
As to the discussion in the report of unsecured obligations,
the Commission says:
The report also discussed the practice the investigation shows has grown
up in the last 20 years of utility holdinglcompanies issuing debentures.
While these evidence the obligation of the issuing company to pay the principal amount at due date, with interest, no collateral is deposited as security
therefor. and the payment of interest and ultimately of the principal is
contingent upon the general credit of the issuing company. In case of
default or financial difficulties on the part of the company,the investor has
no recourse to specific collateral and can look only to the general assets of
the company and take his stand with the other unsecured creditors. The
Commission found during its investigation that a number of holding companies had come practically to the end of their ability to issue collateral trust
bonds, while their subsidiary companies were unable to issue additional
mortgage bonds on their physical property. Nevertheless, with the rise
of security prices before the market break in 1929, and because of the constant demand for securities, these companies were able to sell debentures
and other unsecured paper, and a large volume of such paper was floated
with the investing public during the period prior to the depression. The
Commission also found that the introduction of the convertible feature into
debenture bonds had been of a widespread character and participated in
by many companies.
Edison Electric Institute Answers FTC as to Findings
of Multiplicity of Security Issues of Public Utility
Companies
In denying improper financial practices which might be
implied in the report of the Federal Trade Commission,issued
1244
Financial Chronicle
Feb. 14, in which is discussed the:multiplicity of security
issues of public utility companies, the Edison Electric Institute, in a statement issued in New York on Feb. 15 says:
These iSSI169 were the reflection of business requirements during a period
when the expansion of facilities to meet an unprecedented public demand
made the electric light and power industry the dominating factor in the
capital goods market. In most cases, such securities represent the outstanding issues of subordinate companies or of subsidiaires which have now
been consolidated or else are in the process of consolidation. fhese corporations were not organized for the mere exhilaration of doing so, or for the
purpose of concealing profits, but were created because a necessity existed
to do something essential for the public welfare which existing companies
were not authorized to do.
The Institute also has the following to say in part regarding the Commission's report, which is referred to elsewhere in these columns:
If the issuance of a "bewildering array" of securities, or the assumption
of obligations already outstanding, serves "numerous and often devious
purposes," as the Trade Commission states, then the showing of the utility
companies is modest in comparison with some of the branches of our
Government. Investment manuals list 255 separate issues applying to the
City of Chicago, and 991 different issues of securities outstanding of New
York City alone.
The Commission describes the issuance of debentures in language designed
to convey the impression that this widely-accepted form of financing is
reprehensible. A debenture is just as clearly a debt of the issuing company
as is a mortgage bond. The fact that many of these debentures were convertible into stock combined speculative with investment features and
often commanded a better market for them by extending the possibility
for the holder to sell his stock at an ultimate profit. If"in the light of events
this procedure has generally operated to the detriment of the investor"
it merely emphasizes the general rule that the higher the rate of income the
greater the risk involved and that when investors exchange their position
of secured creditors in order to acquire stocks they also assume the risks of
the business, which include the ruin of credit by governmental assaults.
Customer ownership sales are condemned by the Commission as tending
to defraud the investor through the sale of preferred stock.
At the time the customer ownership sales were made, the industry offered
a safe investment for those of small means living in the territory served
by the company in which they became financially interested. The people
investing were primarily concerned in their rate of return. That the investment was safe is evidenced by the fact that even to-day after the repeated
boomerangs shot at the investment approximately 94% of thse preferred
stocks are still paying to their owners the dividends called for.
Again returning to the subject of "write-ups," the Commission's repeated
inferences that these have increased rates to the public are wholly erroneous.
Since the passage of the modern public service commission laws, the capitalization of public utilities has not been a factor in the determination of rates.
The basis of rates is the value of the property used and useful in the public
service as established by the State regulatory bodies along lines of procedure
determined by the courts for more than a generation but entirely.ignored
by the Federal Trade Commission. The presence of "write-ups," 118
arbitrarily defined by the FTC, cannot add one cent to the value of the
property.
During the past decade the price of electricity to the average domestic
user has declined by nearly 2634%. While so-called "write-ups" were
going up, the rates have been going down.
The Edison Electric Institute does not deny the existence, in some cases,
of sporadic abuses of corporate finance. They have occurred among some
public utilities just as they have in all other fields of American business.
They are not truly characteristics of the electric light and power industry.
Public Utility Companies in Letters to Representative
Rayburn and Senator Wheeler Declare Against
Provisions of Utility Bill
Public utility holding companies and operating companies, representing the greater part of the electric industry
and a large part of the gas industry of the United States,
on Feb. 13 sent to Sam Rayburn, Chairman of the House
Committee on Inter-State and Foreign Commerce, and to
Senator Burton K. Wheeler, Chairman of the Senate Committee on Inter-State Commerce, telegiams voicing objections to the bill regulating public utility companies. The
following is the telegram addressed to Mr. Rayburn:
Feb. 13 1935
Honorable Sam Rayburn, Chairman,
Inter-State and Foreign Commerce Committee,
House Office Building,
Washington, D. C.
Dear Sir: We have just been advised that the bill (H. R. 5423) proposing among other things to abolish public utility holding companies
and Federally regulate operating companies has been set for hearings
before your Committee beginning at 10 o'clock next Tuesday morning.
In the printed form in which we have just received this bill it comprises
178 pages. Since its receipt there has not been sufficient time fully to
study this measure, which is one of the most drastic and far-reaching
legislative proposals which Congress has ever been called upon to consider.
This bill affects the entire business of supplying service to electric power
and light and gas consumers in the United States.
It affects both holding companies and operating companies engaged
In these vital services.
It affects millions of individuals who have made honest investment
of their savings in these companies.
It affects the future of plants and equipment in which billions of dollars
have been invested in order that the benefits of electric and gas services
may be widely spread among the people.
It affects hundreds of thousands of employees engaged in these services.
It affects investments of insurance companies, savings banks and other
fiduciaries and charitable, religious and educational institutions whose
funds have been invested in this industry, in many instances with the
approval of governmental bodies, and in all instances under existing laws.
It affects other industries, particularly the so-called heavy industries,
In which the public utility companies have spent over a billion dollars
a year in the purchase of new equipment and employment of labor.
It affects the whole industrial, financial and social fabric of the country.
In Its implications, it affects every sizeable business organization in
the United States.
Feb. 23 1935
Those of us who have devoted our lives to the development of electric
Power and light and gas service in the United States recognize that, as
in other industries, certain practices, which obtained in some instances
In the past and in many cases have been abandoned or corrected, have
no place in the present conduct of this business and that if any further
action may be necessary to prevent their recurrence, it should be taken.
We do not believe that it is necessary or desirable or in any sense beneficial to the people of the United States to destroy holding companies, or
to cripple the dependent operating companies or to drive some of them
Into receivership or to hamper their service to consumers in order to prevent isolated practices of the past, many of which under existing legislation could not occur again.
We have not yet had time to analyze this bill as it should be analyzed
in order to co-operate with your Committee as we desire wholeheartedly
to do.
We respectfully submit that the whole power and light and gas industry
should not be imperiled by hasty legislative action which, in order to
correct or prevent practices that fair regulation and available remedies
can effectively control, will destroy what should be preserved.
Some of the provisions of this bill appear to be such as would seriously
cripple the service and operation of operating companies regardless of
whether or not they are controlled by holding companies.
We are confident that it is not the desire of your Committee or of Congress to be rushed into enactment of legislation of this drastic character.
Accordingly, on behalf of the companies we represent and the security
holders and employees for whom we occupy a position of trust, as well
as the operating companies in which we are interested and their service
to their customers, the undersigned respectfully request that your Committee grant sufficient time to enable us to prepare and make proper
presentation to you and your associates as to the facts of the situation.
We believe that simple justice to the investing public and the best interests
of the customers alike demand this.
Respectfully yours,
American Gas Sr Electric Co.,
New England Power Association,
George N. Tidd, President.
F. D. Comerford, President.
American Waterworks & Electric Niagara Hudson Power Corp.,
Co., Inc.,
Alfred H. Schoellkopf, President,
H. Hobart Porter, President,
The North American Co.,
Columbia Gas & Electric Corp.,
J. F. Fogarty, President.
Philip G. Gossler, President
Pacific Gas & Electric Co.,
Commonwealth & Southern Corp.,
A. F. Hockenbeamer, President.
Wendell L. WiIlicie, President.
Pacific lighting Corp.,
Consolidated Gas, Electric Light &
C. 0. G. Miller, President,
Power Co. of Baltimore,
Public Service Electric & Gas Co.,
Herbert A. Wagner, President.
Thos. N. McCarter, President,
The Detroit Edison Co.,
Standard Gas & Electric Co.,
Alex Dow, President,
John J. O'Brien President.
Electric Bond & Share Co.,
Stone & Webster, Inc.,
C. E. Groesbeck, Chairman.
George 0. Muhlfeld, President.
Illinois Power & Light Corp.,
United Gas Improvement Co.,
J. D. Mortimer, .President.
John E. Zimmermann, President,
United Light & Power Co.,
C. S. McCain, President.
FTC Issues Report on Costs, Investments and Profits
in Thread and Cordage Industry—Survey Based on
Data from 29 Companies, Principally Thread
Producers
The Federal Trade Commission on Feb. 18 made public
another section of the report based on its inquiry into
costs, investments and profits in the textile industry. This
section of the report was devoted to the thread and cordage
industry, and was based on data obtained from 26 companies, 19 of which have thread and allied products as
their principal manufacture, while the other seven produce
principally cotton cordage and twine. We quote, below,
in part, from the summary of the report as made public by
the Commission:
The 19 thread manufacturing companies furnishing data on which the
report is based include companies ranging in size from specialty thread
manufacturers to the largest companies in that industry. The average total
textile investment of these companies, exclusive of good will and outside
investments, ranges from approximately $44,300,000 to $46,600,000 for
the 20 months covered by the inquiry, extending from Jan. 1 1938 to
Aug. 31 1934. Their total net sales by six-month periods ranged from
approximately $17,438,000 for the first half of 1933 to $20,145,000 for the
first half of 1934, or on an annual basis, from $34,876,000 to $40,290,000.
Rates of Return
Rates of return for the thread companies reporting for the periods of
the inquiry are shown in the following table:
Table 73—RATES OF RETURN* FOR 19 THREAD COMPANIES FOR
SPECIFIED PERIODS
Jan.-June
1933
July-Dec.
1933
Jan.-June
1934
July-Aug.
1934
12.34
• 12.39
On total textile Investment_ a_ __
12.98
5.53
On capital steel( equity In tex12.81
12.74
tile business b
13.33
5.52
10.54
11.00
On total investment_ c
11.28
4.97
•Computed on an annual basis (excluding goodwill from investment .
a Total income from the textl e business before payment of interest and Federal
taxes based on total investment leas goodwill and outside investment.
b Total net income before payment of Federal taxes less income rom outside
investment based on total Investment less goodwill, outside Investments and borrowed money.
e Total income from all sources before payment of Federal taxes and interest
based on total investment, less goodwill.
As a group, these companies showed substantial rates of profit, cemented
on an annual basis, in each of the four periods covered by the inquiry.
However, for the two-month period, July-August 1934, the rates of return
were less than half those of the three preceding six-month periods.
The inquiry disclesed that the raw material cost, exclusive of processing
tax, for these companies represented from 40% to about 43% of the total
manufacturing cost in different periods.' Including processing tax, the
proportion of cost for raw material increased from 40.71% for the first
half of 1933, when no processing tax was paid, to 47.80% during the last
half of 1933, but decreased thereafter.
Federal Budget by National Industrial Conference
Board
Receipts and expenditures estimated in the Federal budget
for 1935 and 1936 are substantially larger than the actual
Volume 140
Financial Chronicle
totals of these items for 1934, according to a study of the
Federal budget made public Feb. 15 by the National Industrial Conference Board. At the same time the Board points
out that the net Federal deficit for 1936, or gross deficit less
public debt retirements, is estimated at $3,892,000,000, and
adds:
This figure is larger than the net deficit for any completed fiscal year.
The gross deficit in combined general and special fund accounts for the
fiscal year 1936 is placed at $4,529,000,000.
As to the gross public debt the Board observes:
If the financial plans of the Administration, as set forth in the budget,
are carried out, the gross public debt will amount to about $31,000,000,000
on June 30 1935 and $34,239,000,000 on June 30 1936, according to a
study of the Federal budget announced to-day by the National Industrial
Conference Board.
As to the Federal budget the Board has the following
to say:
The estimates for Federal receipts and expenditures during 1935 and 1936
when compared with the actual totals for 1934 represent increases of:
$359,000,000, or an increase of 13.0% in Federal receipts, exclusive of
processing taxes for 1935.
$659,000,000, or an increase of 23.9% in the satne type of receipts
for 1936.
$461,000,000, or an increase of 44.5% in expenditurks for National
defense and veterans' pensions and benefits for 1936.
$913,000,000, or an increase of 21.3% in expenditures for recovery and
relief for 1935.
$240,000,000, or an increase of 5.6% for recovery and relief expenditures during 1936.
Exclusive of processing taxes, which are allocated for agricultural aid,
receipts for 1936 are estimated at $3,422,000,000 as compared with the
estimate of $3,122,000,000 for 1935. Actual receipts for 1934 totaled
$2,763,000,000.
The outstanding feature of the expenditure estimates for purposes other
than recovery and relief is the large increases for National def.nse and
veterans' pensions and benefits. For these two purposes combined, the
Government plans to expend $1,497,000,000 in the fiscal year 1936 as
compared with actual expenditures of $1,036,000,000 for the fiscal
year 1934.
The official estimates call for recovery and relief expenditures of
$4,522,000,000 for 1936 and $5,195,000,000 for 1935 as compared with
actual expenditures of $4,282,000,000 for 1934. These three amounts, the
Conference Board points out, are exclusive of processing tax refunds, which
In a strict sense are not an expenditure but a deduction from income.
Expenditures for the first seven months of the current fiscal year have
been made at a rate considerably lass than that necessary if the recent
estimates for the entire year are to be approximated. The estimates of
expenditures for 1935 and 1936 appear to be maximum figures which may
or may not be reached. The Board's study shows that the rates of expenditure contemplated in the revised budgets for the fiscal years 1934 and 1935
have not yet been attained.
Federal GovernmentLargest Owner of Securitieslin
World According to National Industrial Conference Board—Holdings Sept. 30 1934 Totaled
$16,955,000,000
The Federal Government is now the largest owner of
securities in the world, said the National Industrial Conference Board on Feb. 16. According to the Board, on
Sept. 30 1934, the latest date for which a complete figure
Is available, securities held by the Government totaled $16,955,000,000. This, it is pointed out, was equivalent to 67%
of the net debt of the Federal Government on the same
date. The foregoing information is from a new analysis of
securities owned by the Government made available by the
Board, in which it is stated that the country's participation
In the World War and the creation of quasi-governmental
agencies have resulted in this high securities figure. A
summary of the major facts of the Boards' study follows:
1. Foreign Securities—These amount to $12,015,000,000. The collection
of any considerable part of this total will doubtless depend on the attitude
of the United States toward revision of the debt agreements. Under existing conditions the greater part of the foreign obligations are doubtful
assets. The extent to which they may eventually be liquieated cannot be
closely estimated.
2. Reconstruction Finance Corporation.—On Sept. 80 1984 the Government held notes of the RFC amounting to $8,075,000,000, and the entire
capital stock of the Corporation, or $500,000,000. Some of the funds of
the Corporation were used, however, to purchase the capital stock of
governmental corporations and other obligations. The total for these items
is $618,000,000. When this amount is deducted from the gross total of
$3,575,000,000 for the RFC, the net total amounts to $2,962,000,000.
3. Other Governmental Corporations and Credit Agencies—The eapital
stock and other obligations of governmental corporations and credit
agencies, exclusive of the RFC, amounted to $1,207,000,000 at the end of
September 1934. This total consists entirely of equities. Moreover, they
are equities in corporations in which earnings or profits are generally
secondary to the achievement of other objectives. In appraising the value
of these securities, the possibility of losses that may result in impairment
of capital is more important than the actual or potential earning capacity
of the respective corporations. It is certain that losses will affect the
value of some of the stocks.
4. Miscellaneous Groups of Securities—The total of these reached $655,000,000 on Sept. 30 1934. The largest component of this total is $214.000,000 for obligations acquired by the Federal Emergency Administration
of Public Works. Notes received by the Farm Credit Administration on
account of advances made from the revolving fund ranked second with a
total of $150,000,000. Securities received by the United States Shipping
Board Bureau on account of sales of ships and other materials amounted
to $140,000,000. The only other important miscellaneous obligations held
were those resulting from loans to farmers for seed, feed, drought relief
and crop production.
1245
5. Four Way Emergency Corporations—Capital stock k f thee,, totals
about $117,000,000. The four war emergency corporations whose stock
Is held by the Federal Government are: The EMergency Fleet Corporation the United States Housing Corporation, the United States Spruce
Production Corporation, and the War Finance Corporation. Cash deposits
with the Treasurer of the United States to the credit of all war emergency
corporations amounted to $18,000,000. This amount is in effect an offset
against the unretired stocks of $117,000,000.
Because of the extremely diverse character of the securities owned by
the Government it Ii impossible to estimate their worth as realizable assets.
Any appraisal of the foreign obligations would at best be arbitrary.
The extent to which many of the other obligations will eventually be
liquidated will depend largely on the degree and duration of economic
recovery. In some cases, such as the intermediate credit banks, the
Investment of the Government is in effect a continuing one. There is little
reason, consequently, to regard the liquidation of the amount involved as a
potential source of funds that might be used for debt retirement.
Changes in Housing Act Urged by James A. Moffett,
Federal Housing Administrator—Would Permit
Loans Up to $50,000 for Industrial Plant Modernization
Government-insured loans up to $50,000 for industrial
plant modernization would "generate" about $1,500,000,000
in construction activity, James A. Moffett, Federal Housing
Administrator estimated on Feb. 14, in urging early action
by Congress on the proposed amendment to the National
Housing Act authorizing such loans.
The foregoing is from Washington advices to the New
York "Journal of Commerce" which went on to say:
Administrator Moffett, who just returned from an inspection tour of
the country that took him to the Pacific Coast, declared industrial modernization loans would open up a new field for his organization. He pointed
out it would supplement the Administration's efforts to encourage home
building and modernization, for which he also holds out promise of another 81,500.000,000 of building expenditures under stimulus of the Government insurance provision. He explained that no new funds will be
needed for the present to carry out the industrial program.
$235,000,000 in Pledges
rhe housing program so far has generated between 8200,000,000 and
$235,000,000 in expenditures for building, according to the Administrator,
who said pledges have been received for an additional 8235.000,000.
Administrator Moffett predicted that the campaign to encourage new
home construction as well as modernization would be intensified as the
spring building season approaches.
"I think there is a large unfilled market for new homes and I am optimistic over prospects of larger results over the next 60 days," he said.
"However, this is essentially a long-range program and we have much
educational work to do to get it started well."
He explained that home-to-home canvasses to accelerate housing activity are being mapped out on a nation-wide scale. He said more than
400 of such canvasses have been started, with about 1,400 more ready
to swing into action shortly.
A long-range program revising the country's mortgage structure to
enable American wage earners to build their own homes at less cost also
was put forward by Administrator Moffett.
He has the co-operation of President Roosevelt. Together, he predicted, they would seek to lighten first and second mortgage burdens of
would-be home owners.
Seeks Slate Law Change
First step in the plan, Administrator Moffett said, is changing of State
laws to enable borrowing of up to 80% of the entire project on first liens.
At the present time, financing companies are limited to advancing from
50 to 66 2-3%•
He Would revise the laws so that mortgage companies could reduce
capital, sell debenture bonds to the public and issue more securities. He
would allow more firms to enter the financing field.
President Roosevelt, he said, sent letters to 44 States where Legislatures are meeting, suggesting that mortgage laws be liberalized so that
first liens could be made to cover 80% of the projects.
New York and Ohio, Administrator Moffett said, already had 80%
laws. Alabama, Idaho, Indiana, Louisiana, New Mexico, Oklahoma,
Rhode Island, South Dakota, Texas, New Jersey. Maine and Michigan
followed the President's suggestion. Other State assemblies are considering the change.
Amendment to Indiana Banking Act Permits Making
of Loans Under FHA Rules
From Indianapolis, Feb. 5 the Chicago "Journal of Commerce" reported the following:
Millions of dollars in frozen capital are released in Indiana by the new
amendments to the State Financial Institutions Act, signed this week
by Governor Paul V. McNutt.
The amendment broadens the application of Federal regulations in
Indiana and permits all State banks, trust companies and building and
loan associations to make insured loans under the Federal Housing Act.
Interest on loans under the FHA will not exceed 5%%. About 90%
of State banks and 20% of the building and loan associations in the State
will be able to qualify under the new Federal regulations.
Of the 428 State banks and trust companies under supervision of the
State Department of financial institutions, all except 53 are members
of the Federal Home Loan Bank System.
Regulations previously in effect approved lending by institutions in
urban areas with trading areas embracing a continuous population of
not loss than 6.000. An approved institution also must previously have
unimpaired capital and surplus of not less than 8100,000.
Semi-annual Survey of Real Estate Market by National
Association of Real Estate Boards—Absorption of
Residential Space Reported Rapid—Commercial
Banks, Insurance Companies, &c., Again Coming
into Real Estate Mortgage Field
Rise of real estate selling prices, especially in cities of
over 500,000 population, a more active market in cities all
over the country, rapid absorption of residential space, in-
1246
Financial Chronicle
eluding apartment space, and some measurable return of
capital to real estate mortgage investment are shown in the
twenty-fourth semi-annual survey of the real estate market,
made by the National Association of Real Estate Boards,
released Feb. 10. The survey, which covers 268 cities, is
from confidential reports made by local real estate boards,
the Association said. Important statistical details:
1. Actual shortage of single family dwellings has been reached in more
than half the cities reporting (53%). No oversupply remains in any
city of more than 200,000 population.
2. Apartment rents are higher than last year in 57% of all cities reporting. They have gone up in every city of over 500,000 population.
3. Rents for single family dwellings are up in 53% of all the cities.
Higher rates are reported by 88% of the largest cities (those of over
500,000 population).
(Rents for houses are still approximately 32% below the 1928 level;
apartment rents still approximately 46% below that level, other studies
of the Association indicate.)
4. Commercial banks, insurance companies and other financing agencies
are again coming into the real estate mortgage field. Mortgage loans for
new home building may now be obtained in 51% of the cities. Banks are
cited as a present source of such loans in 24% of the cities; insurance
companies in 29% of the cities; private investors in 47% of the cities
replying. But only at scaled appraisals, in preferred localities or at
30% to 50% of present day valuations, many reports add.
5. Money supply for real estate financing is still deficient, though the
complete dearth of the past five years has been broken. In 52% of all
cities reporting loans are seeking capital. But 71% of the very largest
cities report capital seeking loans, a condition that has not been shown
In these surveys in any population group or in any geographical section of
the country since June 1929. But in practice terms are likely to be
prohibitive. "Plenty of money, but hard to get," is a very general report.
6. Interest rates for real estate money show a tendency to fall. There
has been so little lending that interest trends and rates cannot be reported
with exactness, many cities point out.
The following is also from the Association's survey:
Largest Cities Show Greatest Degree of Recovery
A more active real estate market is reported by 68% of the cities; a
less active market by only 5% of the cities, while 27% report activity
on about the same level as last year. Increased activity has evidently
come first in the larger centers. Of cities over 500,000 population, 88%
show a more active market, and none a less active market.
Selling prices have gone up very generally in these largest cities, 71%
of which report higher prices, and none of which report falling prices.
For cities generally, prices are still on last year's level in 52% of the
cities reporting are already higher in 35% of the cities, and lower
11 only 13%.
Geographically, the South Atlantic section leads, with 91% of its
cities reporting greater activity; none showing less activity, and with 47%
of its cities reporting higher prices; none reporting lower prices.
Apartments Showing Most Rapid Space Change
Space absorption and rent trends must be studied together. It is significant that while single family dwellings show the most general shortage,
and were the first to show up-trend in rents, apartment space is at present
showing the most general rent advance.
Only 5% of all cities reporting show any remaining oversupply of single
family dwellings. Actual shortage is reported by 53% of the cities;
normal balance of supply and demand by 42'-/o. Every city of the two
largest population groups reports either a shortage or a normal balance;
none show any remaining oversupply. Geographically, the most general
shortage is shown in the West South Central group and in the Pacific
Coast group, in each of which 73% of the cities make this report.
Shortage in apartments is reported in 30% of the cities; normal supplydemand situation in 60%, and an oversupply still in 10%.
Rents
Residential rents are very generally going up. Spread of change is as
follows: For single family dwellings higher rates are reported in 53%
of the cities; a stationary condition in 38% of the cities. Only 9% show
a down-trend. For apartment space, 57% of all cities show up-trend ; 39%
a stationary situation, and 4% a down-trend. There is practically no
down-trend in any city of over 100,000 population. Spread of change
varies with the size of the cities. Of cities over 500,000 population, 88%
report higher rates for single family dwellings ; 100% report higher apartment rates. Of cities of 200,000 to 500,000 population, 78% are up as to
single family dwellings; 73% are up in apartment rates. Of cities in the
100,000 to 200,000 class, 56% show higher rates for residences; 55% for
apartments. Of cities under 25,000 population, 43% show higher rents
for single family dwellings; 45% show a rise for apartment space.
Wide geographical variation is shown. For single family dwellings percentage of cities reporting rents up is 75% of the West South Central
group; 67% of the East North Central group, and only 20% of New
England cities. Higher apartment rents are reported by 71% of the
South Atlantic cities; 66% of the East North Central group, and only 7%
of New England cities.
Office and Rosiness
Rents for central business property are moving higher in 22% of the
cities reporting. They hold to last year's level in 64% and are lower in
14%. Outlying business properties are reported lower than last year in
17% of the cities; stabilized in 74%; higher only in 9%.
Office building rents lag considerably behind the business property
rents, and while predominantly on a level with last year, show some
tendency to be lower, particularly in outlying districts. No city of over
200,000 population reports any higher rents, either for central or outlying
office property.
Subdivision Market
As to subdivision market, greater activity is reported in 14% of the
cities; stationary condition in 66% of the cities; market less active than
last year in 20% of the cities. Very little geographic variation is shown.
Redistribution of Wealth Advocated by Senator
Norris—Proposes Progressive Federal Inheritance
Tax
Expressing the view that "to-day there is little doubt in the
minds of thinking people that the redistribution of wealth
is a necessity if we wish to preserve our civilization." Senator
Feb. 23 1935
George W. Norris declared on Feb. 15 that "if we are to
secure a permanent remedy for our difficulties as a people it
is an absolute necessity that this be one of the aims which a
complete recovery must have in view."
A progressive Federal inheritance tax is advocated by
Senator Norris, with a view to curbing the "growing concentration of wealth in the hands of the few." Senator Norris
thus expressed himself at Lincoln, Neb. on Feb. 15, at the
mid-winter Commencement of the University of Nebraska,
where he received the honorary degree of Doctor of Laws.
In stating that "economists and other students of government now realize that one of the great dangers to our civilization is the control by a few men of untold millions of property"
Senator Norris added:
I do not claim that our troubles are all due to this-cause. I do claim.
however, that if we are to secure:a permanent remedy for our difficulties
as a people,it is an absolute necessity that one of the things which a complete
recovery must have in view is the redistribution of wealth.
This does not mean that we should take the property from A and give it
to B. It only means the taking of money,from the..estates of the very
wealthy, where it can perform no real service, fora humanity, and the
giving of it, in the form of taxes, to all the people from whom it was originally taken, and under whose laws it was accumulated.
In part, a dispatch from Lincoln to the Now York "Times"
quoted the Senator as follows:
He pointed out that ono of the methods by which concentrated control
of property was brought about was through the organization of corporations.
In this connection, he said.
"We are rapidly becoming a nation of hired men; we are very rapidly
drifting in the direction of wealth concentrated to such a degree that its
evil effects are already influencing our economic world."
He declared that "one of the sad facts staring us in the face" was that in a
depression year like 1933 this country created 26 more millionaires than It
had in 1932. "while there was a decline in small incomes to the lowest level
In 18 years-- • •
•
Carnegie Plea Quoted
Senator Norris said President Theodore Roosevelt foresaw the dangers
of the accumulation of wealth in 1906. He quote<antarticle by the late
Andrew Carnegie in "The North American Review" in 1889 declaring that
nations should "go further" in taxing estates heavily at death.
He also quoted from President Franklin D. Roosevelt's book, "Looking
Forward," that"we are steering a steady course toward economic oligarchy,
if we are not there already."
Senator Norris contended that the present Federal inheritance tax is
"somewhat misleading." Its highest levy, he said, is a rate of 60% on the
excess of the estate over $10,000,000 and under such a levy a $10,000.000
estate would have left nearly $6,000,000 untaxed, because it pays less than
45% upon the entire estate. He explained.
"We have the wealthiest country in the world and yet one-third of our
people are in beggary and want. We have millions of starving who must be
fed. Millions of others of our people, who are barely existing, will be taxed
into starvation if we increase the burden already upon them. Can the men
who have gathered together the fabulous riches of the wealthiest country on
earth now defy the Government to take a portion of their ill-gotten gains
after they are gone?"
Gold Clause Decisions Regarded by Norman C. Norman
as Paving Way for Destruction of Value of Currency—Mr. Norman One of Those Ruled Against—
Remarks of J. M. Perry
Norman C. Norman has taken occasion to voice his views
regarding the U. S. Supreme Court's 5 to 4 decision against.
him in his gold clause suit brought against the Baltimore dr
Ohio Railroad, in which he sought to sustain the validity of
private contracts to pay in gold. From the New York "Sun"
of Feb. 19 we quote:
Mr. Norman, a gold refiner and jeweler of 40 West Forty-eighth Street,
believes that the decision by the highest court of the land may pave the
way for the destruction of the value of the currency.
"This decision gives notice that the Government can depreciate the value
of money to any extent it desires," he said, "and a citizen cannot enter
into any kind of contract to protect himself against it. It is now possible
for the Congress to print such a vast quantity of paper money as to potentially destroy the value of all past promises to pay in the future."
Mr. Norman's case involved the sum of $15.60. He bought a $1,000
Baltimore & Ohio bond in 1930. The bond was to pay $22.50 in gold
semiannually. Under the present Roosevelt dollar of 59 cents, that $22.50
would not be worth $38.10. Mr. Norman brought suit to obtain the
increase.
Pen-y Also Filed Suit
John Morris Perry, a lawyer, of 70 Broadway who also brought action,
was noncommittal in his remarks on the decision. Ho sought to obtain
payment in accordance with the gold value for a $10,000 Liberty bond.
He asked $16,931 in currency or $10,000 in gold for the certificate.
His only remark on the case was the following analogy. "It I had your
promissory note and demanded that you pay it and you refused, I would
keep that note and use it as tho basis for an action against you. I would
try to get a judgment against you. These bonds are really promissory
notes."
F. Eugene Nortz, who tried unsuccessfully to recover full value on gold
certificates which he was forced to surrender by Government edict, took
his defeat calmly. Mr. Nortz, a naturalized American of German origin,
is the owner of Nortz & Co. coffee merchants, at 82 Wall street. He owned
$106,000 in gold certificates which he maintained were worth $60,000 more
than this amount in the devalued currency with which he was compensated.
Secretary Morgenthau Says Administration Is Satisfied
With Monetary Policy Despite Herbert Hoover's
Attitude Toward Gold Standard
Secretary of the Treasury Morgenthau stated on Feb. 21
the Administration is "satisfied" with its present monetary
policy and contemplates no change despite Herbert Hoover's
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Financial Chronicle
advocacy of a return to the gold standard. We quote from
Associated Press advices from Washington which further
reported:
This reply was made by Morgenthau at a press conference when his
attention was called to the former President's advocacy of making the
devalued dollar exchangeable for gold as a means of fostering recovery.
Secretary Morgenthau said:
"I am perfectly satisfied with the way our monetary policy has worked
out during the last year and see no reason for changing it.'
At the same time, the Secretary reminded newspaper men that the
monetary policy is on a day by day basis, indicating the possibility of a
quick change if conditions were held to warrant them.
Return to Gold Standard Essential to Recovery Says
Former President Herbert Hoover—Dollar He
Declares Should Be Made Convertible at 59 Cents
In a statement issued at Tucson, Arizona, on Feb. 20,
former President Herbert Hoover declared that "to give a
needed contribution to real recovery the dollar should immediately bo made convertible at the present 59 cents of gold,
making it payable in gold bullion—the modern method_of
specie payment." According to Mr. Hoover "there is no
need to wait on foreign nations before we re-establish the
gold standard and restore confidence in our currency. Mr.
Hoover added:
This would be bound to follow sometime. They are far more afraid of
our doing just this than they are of any American "managed currency,'
at whickgame they have us at a disadvantage.
Mr. Hoover's remarks were contained (according to
Associated Press advices from Tucson) in a prepared statement to The Tucson "Daily Citizen" and in addition to
the extracts quoted above he said:
I have now had opportunity to read the Supreme Court decision. Apparently all members of the Court agreed that the Government acted unconstitutionally in repudiation of the covenant on its own bonds. A majority
of the members concluded that the citizen has no remedy.
That will have long moral consequences, but whatever the morals or
right or wrong of the devaluation may be, the face of the American people
must be forward.
The need and the opportunity now is to restore confidence in the dollar.
All threat, actual or potential, of further devaluation should now ,be
removed.
"Five compelling reasons" for returning to the gold standard, were cited by Mr. Hoover; as to which we quote in
part as follows:
1. It would put more men to work out of the 12.000,000 who still remain
unemployed than any other single action. . . .
2. The Government's program of stimulating the capital goods industries
and giving employment through public works can never result in 2,5% of
the jobs which can be provided by recovery of normal private capital-goods
activities. The otherwise inevitable budget deficits imply either impoverishing taxation or snore devaluation or inflation. A convertible gold
currency now would help avoid all these by aiding to restore employment
and decrease the need for relief.
3. The devaluation which has already taken place has shown and will
show in still higher costs of living. . . .
lo. One of the declared purposes of devaluation was to, in effect, write
down debts by increasing prices. Surely the debtors, who include holders
of common stock and equities in real property, have secured enough if they
get a 41% reduction. The creditors, who in the modern world include every
holder of a life insurance policy, of a savings bank deposit, a veteran's
certificate and every holder of a bond or a mortgage, deserve some conconsideration. It would be a boon to those if they were assured through
immediate convertibility that they would not suffer any further. . . .
115. We can get in appearance a false prosperity out of inflation. There
isAmuch inflation poison in the national blood. Through the combined
effect of the devaluation, expanded bank deposits through Government
borrowing, and the Federal Reserve credit policies, the fever may grow at
any time. There is no real recovery on inflation medicine. If the currency
were made convertible it would tend to chock inflation, replace relief with
real employment and contribute materially to a general recovery.
Transit Unity Price of $186,000,000,for Brooklyn-Manhattan Transit Corp. Lines Agreed on—Plan Calls
tor Credit Outlay by New York City of Only 23%
of Price—Remaining 77% to Be Financed by
Board of Transit Control—Five-Cent Fare Provided
A plan for the acquisition by the City of New York of
the Brooklyn-Manhattan Transit Co. lines at a net price
of $185,000,000 as the first step in an effort to unite all the
city's rapid transit railroads into a single publicly-owned
and operated rapid transit system was submitted Feb. 19
to the Board of Estimate by Samuel Seabury, special counsel to the Board, and A. A. Berle Jr., City Chamberlain.
Mr. Seabury and Mr. Berle reported that they had succeeded
In doing what negotiators for previous city administrations
had never been able to do—reach an agreement with the
B.-M. T. on price and formulate a plan acceptable to both
sides. Previous negotiations had always stopped just short
of agreement on price. The proposed price, the negotiators
also noted with satisfaction, is $17,301,000 lower than the
lowest price heretofore proposed by the city.
While the plan is a long step toward achievement of the
unified transit system, it is yet merely an understanding.
Before an actual deal for purchase of the lines may be
consummated the proposed plan must be adopted by the
1247
Transit Commission after public hearings and in turn be
approved by the Board of Estimate and by the Board of
Directors and the security holders of the B.-M. T. Legislation also must be obtained from the Legislature to permit
the carrying out of certain conditions of the agreement.
The unification plan is predicated on continuance of the
5c. fare, although the agreement provides that the fare may
be increased by the public agency which is to operate the
railroad with the approval of the Board of Estimate. Mr.
Seabury and Mr. Berle held out the promise that there
would be an immediate monetary gain to the city from
public operation, assuming that operating costs remain at
the 1934 level. The net gain, they estimated, would be
$4,500,000 a year. Net operating revenues in 1934 were
$15,325,000. Interest on the bonds exchanged for the properties would be $9,166,143, leaving a profit of $6,000,000,
against which there would be an offset of $1,580,000, representing the taxes that would be lost to the city. The chief
advantages, however, would not be the annual profits, the
negotiators said, but the convenience that would arise from
the co-ordinating of the B.-M. T. lines and the city's Independent lines.
The Seabury-Berle plan contains a provision that the deal
must be consummated by Oct. 1, but the time may be extended by consent of both parties. In the event of a disagreement, neither side is permitted to claim damages
against the other, and if the plan goes through the B.-M. T.
agrees to drop its present suit against the city for $30,000,000 damages, alleged to have been sustained because
of delay in construction of the Broad Street extension of the
B.-M. T. by the city.
The report of Samuel Seabury, special counsel, and A. A.
Berle Jr., Ohamberlain, to the Board of Estimate on the
proposed purchase of the B.-M. T. follows:
To the Honorable Members of the Board of Estimate and Apportionment:
Sirs: The undersigned, after negotiation with the Unification Committee
of the Brooklyn-Manhattan Transit Corp., have agreed to recommend to
your Honorable Board a plan for the acquisition by the City of the rapid
transit and power plant properties of the B.-M. T. The Unification Committee states that it will recommend the plan for submission to the bondholders and stockholders of that corporation. An outline of the plan is
submitted herewith.
The capital price arrived at was a net price of $185,000,000. This
represents a gross price of $192,500,000, reduced by the market value of
the securities in the depreciation funds, about $7,500,000. These constitute
a liquid asset of the enterprise to be acquired.
The experience of the Board with other suggestions which have been
made in the past has familiarized its members with the main features of
matters requiring consideration upon any proposed purchase. Solely for
the purpose of presenting the matter along these familiar lines, we
submit a comparison to prices contemplated in other plans:
Present
Offer
Untermyer
Proposal of
June, 1931
Transit Cornmission Tentative
Plan of
December, 1931
$192,500,000
$213,300,000
8209,500,000
185,000,000
206,446,000
202,301,000
8.678.000
9.924.000
9.475.000
We imply no criticism of previous negotiators, and in fairness to other
plans, it should be pointed out that in the intervening years changes in
many items have taken place, some enhancing the value of the property,
others decreasing it. For instance, new investments (about $4,000,000)
have been made in the property; on the other hand, the so-called "preferential deficit" is somewhat less.
Nor does the present plan require the city to assume any current liabilities, except as they are covered by current assets, or to make any kind of
guarantee of the Board of Transit control obligations. Taking all elements into consideration, we believe that under this plan the price to the
city is at least $20,000,000 less, and interest charge is $800,000 per year
less, than under the most favorable plan heretofore formally proposed.
Negotiations were conducted on the basis of the earning power of the
properties at the Sc. rate of fare. Physical valuations were excluded, as
leading to a welter of unsatisfactory theory. We likewise excluded stock
market prices, as being no true criterion of the value of the properties to
the city. The net price of $185,000,000, or, as explained, gross price of
$192,500,000, are less than physical valuations; and the gross price is
only 51
/
2% more than the total market value of all of the outstanding
B.-M. T. securities, viz., $182,000,000, at the market of Feb. 16 1935.
The result is thus far better than could have been achieved had the city
been free (as it is not) to attempt to purchase the B..M. T. securities on
the Stock Exchange.
City's Credit Outlay Is Put at $45,000,000
Of the so-called "price" of $192,500,000, the great proportion, $147,600,000, or about 77%, will not require any city money or city debt, but
will be represented by obligations payable solely from the revenues of the
lines, and not guaranteed by the city, directly or indirectly. Thus 23%,
or $45,000,000, is the city's only actual outlay of credit.
The obligations will be for the most part bonds of a Board of Transit
Control. Authority for the organization of an adequate Board mest be
procured from the Legislature, the present law not being satisfact-ry in
this respect. The city, it is proposed, will lease the lines to this Board
for 75 years. The Board of Transit Control will issue its own bonds,
secured by mortgages upon this lease. The Board is expressly forbidden
by existing law to pledge the credit of the city. No change of this
provision will be sought. The city will not in any way guarantee these
bonds.
Five-cent Fare Specified in Lease to the City
The lease from the city to the Board will specify a 5c. fare. nere is
no requirement of a "flexible fare." The fare will be subject to change
Gross
Net
Annuel Interest
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Financial Chronicle
in the joint discretion of the Board of Estimate and Board of Transit
Control only.
Details of the price are as follows:
Capital
Amount
Bonds of the Kings County Elevated Co. (4%) and
Brooklyn Union Elevated Co.(5%) (underlying bonds
to be assumed by the Board of Transit Control)
$22,423,000
Corporate stock (4%) to be issued by the City to the
Board of Transit Control and turned over by the Board
of Transit Control to the B.-M.T
45,000,000
Bonds of the Board of Transit Control (4)i.% first mtge.) 84,540,580
Bonds of the Board of Transit Control (5)
,6%,2d mtge.) 40,536,420
Total
$192,500,000
Less: Depreciation funds securities
7,500,000
Net Price
$185,000,000
Annual
Charges
$1,056,480
2,088,247
3,753,150
2,268,266
$9,166,143
The city has the privilege of leaving all or a part of the depreciation
funds securities with the B.-M. T. To the extent that it does, the amount
of Board of Transit Control first mortgage bonds will be reduced. Whether
or not the city does so, the price should be adjusted to reflect the each
nature of this asset.
As to the rapid transit lines, the city is guaranteed current assets at
least equal to current liabilities, and also stands to receive excess current
assets up to $500,000 under the formula set forth in the accomearying
outline. Only some presently unforeseen disaster of major imp-fitance
could reduce the excess below that figure.
As to the power plant, the city will receive current assets worth several
hundred thousand dollars and assumes no current liabilities or tort claims.
The $500,000 excess current assets, together with investment seourities
worth about $1,050,000 (exclusive of and in addition to the depreciation
funds and current assets) will be provided by the company to protect the
city against unliquidated tort claims, estimated not to exceed $1,475,000.
City May Substitute Cash for Coivorate Stock
The city may substitute cash for the corporate stock. If 4% co•porate
stack is selling above par at the time of closing, the city will therefore
be able to effect a saving on the interest rate on the corporate stoek
The corporate stock will be, in our judgment, outside the city's
debt limit.
All the Board of Transit Control bonds will be callable at par and
accrued interest. Should these bonds prove sufficiently attractive to command lower interest rates than those now proposed, the Board may refund
at the lower rate. The city is thus protected. It is anticipated that when
the Board has demonstrated its ability to operate efficiently, such refunding will be possible.
The bonds of the Board of Transit Control will mature in 75 years, which
is also the proposed length of the lease from the city to the Boar!. The
bonds will carry a sinking fund calculated to retire them at maturity.
Thus, at the end of the 75-year period the bonds will have been entirely
paid off. The city may, however, procure the surrender of the lease at
any time by retirement of all bonds then outstanding of the Board of
Transit Control, but the city will in any case receive the lines free and
clear at the expiration of the lease.
We estimate there will be an immediate monetary gain to the city.
The net operating revenues of the properties in the 1934 fiscal year
(before taxes) were $15,325,000. The fixed charges on the bonds and
corporate stock to be issued will be approximately $9,166,143. This makes
a profit to the city, assuming traffic and costs equal to those of 1934,
of over $6,000,000.
City's Net Annual Gain Put at $4,500,000
Against this, however, must be set loss of taxes which the compa:y now
pays the city. The real estate and special franchise taxes in the fiscal year
1934 amounted to $1,580,000. Deducting this from the indicated profit
of over $6,000,000, we estimate a net annual gain to the city of about
$4,500,000 per annum.
The direct monetary gain is, however, only a part of the advantage to
the city in the transaction.
Under the existing "dual contract" applicable to the B.-M. T., the city
will find itself in 1969 owning a part of the B.-M. T. system—the most
valuable part—but with vital portions, including the Sea Beach and
Brighton Beach lines, the Coney Island Terminal and the power plant, as
well as all the elevated lines, remaining in private hands. The city would
then be forced to deal with the B.-M. T. for the purchase of this property
or disrupt an integrated system.
On the basis of the proposed acquisition the city will at once take title
to the entire system.
It will be able at once to co-ordinate the present B.-M. T. lines with
the Independent System so as to assure a maximum of service. For instance,
the Independent System could be connected with the Culver line, thereby
providing through service on the Independent System to Coney Island.
The perpetual franchises now owned by the company will be surrendered.
This will permit the demolition of obsolete elevated structures as conditions
warrant. Some can be torn down promptly; other structures, notably along
Fulton Street, can be removed as the Independent System line alorg the
same route is put in operation. A substantial increase in taxable values
in that territory may be expected to result.
The length of the lease and of the bonds, viz., 75 years, may iequire
a brief explanation. The policy of prompt amortization of the city's rapid
transit debt has been a heavy burden on the budget in recent years When
the lines come under public control, it seems appropriate to reduce the
amortization charges as much as possible so as to pass on the maximum
saving to the budget in the present period of financial stringency.
City Will Have Right to Amortize Rapidly
As a result of the call provision in the bonds, the city will be free to
amortize more rapidly, if it so chooses, when conditions improve. The
fruit of the city's amortization policy of the past will be realized with
Increasing force from 1954 on. In almost every year after that substantial
amounts of rapid transit debt will be completely retired through the operation of the sinking fund. The revenues released by this retirement could
be, if the city then sees fit, devoted to calling Board of Transit Control
bonds then outstanding. Such a policy would hasten free and clear
ownership on the part of the city under the proviso that the lease shall
terminate upon the retirement of the debt of the Board of Transit Control.
A word should be said about the negotiations. An obstacle was found
In the company's demand for the so-called "flexible fare," that is to say,
a fare that would be increased if the Board of Transit Control revenues
fell below a certain minimnm. We deemed it essential that the 5c. fare
be retained within the sole control of the public authority and the demand
was rejected. Specific mention of this issue does not mean that it was
Feb. 23 1935
the only disputed matter. Almost every subject mentioned in the accompanying memorandum, especially the ownership of the depreciation funds,
claimed in entirety by the company, was argued at length.
Price Is $21,000,000 Less than Untermyer Figure
The plan compares favorably with all plans previously proposed, even
taking into consideration changed conditions and lapse of time. Samuel
Untermyer, as special counsel to the Transit Commission, proposed a
gross price of $213,300,000, or not quite $21,000,000 higher than the
price now agreed on. As previously stated, an accurate comparison requires
adjustments for changes which have occurred in the meantime.
The company has invested an additional $4,000,000 for new construction
and equipment, aside from maintenance, renewals and replacemente ; the
"preferential deficit" has decreased; the depreciation funds have inereased.
So adjusted the price are, in our opinion, at least $21,000,000 apart.
Mr. Untermyer proposed that $130,000,000 of the price be payable in
corporate stock, as against $45,000,000 in corporate stock prov;ded by
the present plan. The interest rate on such Board of Transit Control
debentures as were to be delivered under Mr. Untermyer's plan was 6%,
as against a maximum interest rate of 514% on the second m-rtgage
bonds now proposed. Mr. Untermyer's plan ccntemplated a maneqement
contract with B.-M. T. at an annual fee of $200,000; the present plan
leaves the Board of Transit Control free to make any agreement it sees fit.
The Board of Transit Control obligations to be issued under Mr. Untermyer's plan were to be amortized at the rate of $12,000,000 a year, requiring heavy annual sinking fund contributions from operating revenues; the
present plan, while permitting the Board to call in the bonds at par at
any time, provides for a 75-year term with resultant low annual amortization requirements. The immediate annual saving is consequently much
greater.
No previous plan was accepted by representatives of the company.
We call attention of the Board to the fact that an enormous amount of
detail remains to be concluded—the drafting of new legislation, which is
under preparation; the conclusion of incidental agreements, and the appropriate drafting of the necessary legal instruments. We are continuing
with this work.
Plan Yet to Be Approved by B.-M. T. Stockholders
Only the Unification Committee of the B.-M. T. has so far accepted the
plan; it remains to be approved by the directors and stockholders The
transaction is further conditional upon the procurement by the B.41. T.
of the voluntary deposit for exchange of at least 75% of the 0.-11. T.
securities to be exchanged for corporate stock and Board of Transit Control
first mortgage bonds ; it will also be necessary to satisfy counsel for the
company that the bonds of the Board of Transit Control will be tax
exempt.
The accompanying outline of the plan gives in more detail the various
terms proposed.
We stand ready to furnish such further statistics or other information
as may be asked.
Consummation of the plan in accordance with law is recommenaed.
In making this report, the undersigned desire to acknowledge their
appreciation of the valuable assistance given them by Paul Windels, the
Corporation Counsel of the City; by C. D. Williams and by William G.
Mulligan Jr., Assistant Corporation Counsel, assigned to aid in the work
of unification, and by James T. Ellis, Accountant of the Corporation
Counsel's office, assigned to this work. Acknowledgment is also made
of information continually made available by the Transit Commissien and
its staff, and its constructive and helpful courtesy throughout. Wr take
this opportunity likewise to express our appreciation of the co-operative
spirit in which the negotiations were conducted on behalf of the B.-M. T.
by the Chairman of its Unification Committee, Charles Hayden and his
arsociates.
Respectfully submitted,
SAMUEL SEABURY,
Special Counsel, Board of Estimate and Apportionment.
A. A. BERLE JR., Chamberlain.
Tentative Agreement for Purchase by City of B.-M. T. Lines
The text of the understanding between the Unification
Committee of the B.-M. T. and the representatives of the
Board of Estimate follows:
The plan outlined herein is for the acquisition by the City of New York
of the rapid transit and power plant properties of subsidiaries of the
Brooklyn-Manhattan Transit Corp. for an aggregate consideration o! $192,500,000, and the lease of the same to the Board of Transit Control. It is
recognized that the parties have no power to bind their respective principals, the City et New York and the B.-M. T. Corp., so iliat thie understanding is simply with respect 4o the recommendations that will be made
by the parties to their principals.
The proposed plan contemplates tie following:
1. The New York Rapid Transit Corp. and the Williamsburgli Power
Plant Corp. will convey and transfer to the city and/or to the Bard of
Transit Control, as the city may elect,
(a) all the rapid transit railroads and equipment, leasehold interests
under the existing contracts (Contract No. 4 and related certificates), real
estate, easements, leases, agreements, inventory of materials and so7.plies,
investments in securities and other properties and assets of every kind and
description of New York Rapid Transit Corp. as a going concern, including
(except as provided below) current assets as they shall appear on or as of
the date of closing.
(b) all the power stations, sub-stations, equipment, real estate, leasehold interests, easements, agreements, inventory of materials and supplies
and other properties of every kind and description of Williamsburgh Power
Plant Corp. except current assets (other than inventory of materials and
supplies), investments in securities and other non-operating treasury assets,
said corporation to remain solely responsible for and to take care of all its
liabilities, including current liabilities, tort claims and taxes.
Property to Be Delivered Free of Encumbrances
All such properties shall be conveyed and transferred free and clear of
all liens and encumbrances, except the liens of the Rings County Elevated
and Brooklyn Union Elevated mortgages in so far as they respectively
attach, and except existing right-of-way easements and similar encumbrances (if any) which do not adversely affect the use of the properties for
railroad purposes or depreciate to a material degree their market value.
The terms "current assets," "current liabilities" and "investments" as
used herein in respect of New York Rapid Transit Cerp. mean and include
only the items of the character shown under the corresponding headings
in its company balance sheet dated Dec. 31 1934, copies of which, initialed
Financial Chronicle
Volume 140
by the city's representatives and by the Chairman of the Committee, have
been exchanged between the parties.
All current assets of New York Rapid Transit Corp., on or as of Lie date
of closing, up to the amount of $500,000 in excess of its current liabilities
on or as of said date, shall belong to and be transferred and delivered to
the city or Board of Transit Control, as the city shall direct, and the
balance (if any) of such excess shall belong to and be retained by said
corporation. If the current assets of New York Rapid Transit Corp. shall
be less in amount than its current liabilities, on or as of the date of
cloning, the B.M. T. Corp. will make good the deficiency so that there
will be current assets at least equal in amount to current liabilities.
Terms Are Settled for Closing Date
The plan contemplated by this preliminary understanding, in its definitive
form as approved by the Board of Estimate and Apportionment of the city
and as submitted by the B.-M. T. Corp. in its entirety or in substance to
its bondholders and stockholders, will provide for a closing date mutually
acceptable to the parties. This date shall be a date on which the current
position will, as nearly as practicable, reflect the average current assets
and the average current liabilities of New York Rapid Transit Corp. for
the 12 months next preceding such closing date. (The average excess of
current assets over current liabilities for the 12 months ended Dec. 31 1934
amount to approximately $886,757.)
In the event, on or as of such closing date, the current assets of said
corporation exceed its current liabilities by more than $500,000, then, in
adjusting the items of current assets to be transferred and delivered to
the city or to the Board of Transit Control and the items to be retained
by said corporation, all inventory of materials and supplies will be
delivered to the Board of Transit Control; all accounts receivable (within
the limit of the amount of such excess over and above $500,000) due from
associated or affiliated companies of the B.-M. T. System will be retained
by said corporation, and the items comprising the balance (if any) nf such
excess over and above $500,000 will be selected on a basis that will
allocate to the city or to the Board of Transit Control an approximately
proportionate part of the cash items as the amount of current assets going
to the city or the Board of Transit Control bears to the total amcnnt of
current assets.
2. Among its other contracts and agreements, the New York Rapid
Transit Corp. will assign and transfer or surrender to the city and/or to
the Board of Transit Control, as the city may elect, Contract No 4 and
related certificates for additional tracks and for elevated extensions, and
the agreements with the Interborough Rapid Transit Co. for operatlon on
the Queens lines. Such contract, certificates and agreements, if kept alive,
shall be subordinate in all respects to the lease from the city to the Board
of Transit Control, it being understood that if the Interborough Co. is not
Included in the unification, then, for the purpose of preserving unimpaired
all rights, obligations and defenses with respect to that company and
operation over the Queens lines, the Board of Transit Control will succeed
to all the rights and assume all the obligations of New York Rapid Transit
Corp. under said agreements with that company.
3. Simultaneously with the conveyances and transfers mentioaed in
paragraphs "1" and "2," the city will assign and lease the properties to
the Board of Transit Control for a period of 75 years. Such lease may
provide that it shall be terminable by the city at any time at its option,
upon the assumption by the city or the retirement of all outstanding bonds,
obligations and debts of the Board of Transit Control.
4. The city thereupon will pay over or deliver to B.-M. T. Corp., or on
Its order, the following securities, which will have been issued by the
respective obligors and turned over to the city for the purpose of such
payment or delivery:
(a) The assumption by the Board of Transit Control of the underlying
bonds of the New York Rapid Transit Corp. system, viz:
86.467,000
Kings County Elevated 4% bonds
Brooklyn Union Elevated 5% bonds
15,956,000
(b) 4% corporate stock of the City of New York
45,000,000
(c) Board of Transit Control bonds secured by first mortgage lien upon
1111
the lease from the City to the Board of Transit Control and upon
the revenues derived from the operations under such lease, In the
amount of
84,540,580
(d) Board of Transit Control bonds secured by second mortgage lien
er
upon the lease from the City to the Board of Transit Control and
upon the revenues derived from operations under such lease, In
the amount of
40.536,420
8192,500,000
Sinking Fund Set Up for Transit Board Bonds
The foregoing bonds of the Board of Transit Control, both first mortgage
and second mortgage, are to mature in 75 years; are to be callable in whole
or in part at any time, at par and accrued interest; and are to be ei.titled
to the benefits of a cumulative sinking fund, payable semi-annually, adequate
to retire the bonds of the respective issues by maturity. The first mortgage
bonds are to bear interest .at 414% per annum, and the second mortgage
bonds are to bear interest at 514% per annum, both payable semi-annually.
Additional first mortgage bonds in the principal amount of $22,423,000
will be authorized and reserved to be issued for the purpose of raying.
refunding or otherwise acquiring and retiring an equal principal amount
of the underlying Kings County Elevated and Brooklyn Union Elevated
bonds, subject only to the limitation that principal amounts of and annual
interest charges on first mortgage bonds issued for such purpose shall not
exceed the principal amounts of and 5% annual interest charges no the
underlying bonds so retired.
The mortgage indenture securing the first mortgage bonds or the mortgage
Indenture securing the second mortgage bonds, at the option of the city,
may include provision for $50,000,000 additional bonds to be resersed for
subsequent issue for the 'purpose of financing additional construction and
equipment applicable to the properties embraced in the lease, subject however, to such earnings restriction and other restrictive provisions with
respect to the issuance of additional bonds for construction and equipment
as shall he mutually acceptable and satisfactory to the parties.
Subject to the foregoing specifications of the first mortgage and second
mortgage bonds to be issued and delivered to or on order of
T. Corp.,
either or both the first mortgage and second mortgage indentures of the
Board of Transit Control may provide for the issuance of bonds in one or
more series, the bonds of each series to bear interest at such rate and to
have such maturity date, sinking fund and redemption provisions as shall
be determined by the Board of Transit Control at the time of the creation
of such series.
Way Open to Finance Purchase of the I. R. 1'.
In the event the rapid transit railroads and properties of the Interborough Rapid Transit Co. or of both that company and Manhattan Py. Co.
are included in the unification and embraced in the lease, additional bonds
may be %erred under the first mortgage indenture and the second mortgage
indenture, respectively, on account of the acquisition of said railroads and
1249
properties by the city, in principal amounts and upon terms and conditions
which do not discriminate against or impair the position or security of
the Board of Transit Control bonds to be delivered as above provided.
The city shall have the option to deliver to B.-M. T. Corp., in lieu of all
or any part of the corporate stock of the city, the first mortgage bonds
and/or the second mortgage bonds of the Board of Transit Contro., cash
equal to the face amount of the corporate stock and/or bonds for which
cash is substituted. If, in the opinion of the parties, the exchange of
B.-M. T. securities in the hands of the public that are to be exchanged
for first mortgage bonds of the Board of Transit Control can be obtained
on the basis of a lower interest rate than 414%, then the first mortgage
bonds shall bear the lower rate.
5. At its option, the city may exclude from the properties of the New
York Rapid Transit Corp. and Contract No. 4 enterprise to be conveyed
ration
and transferred by that corporation, and may release to that corp,
or to the B.-M. T. Corp. the so-called depreciation funds securities under
Contract No. 4, in whole or in part. In that event, the city may deduct
from the amount of first mortgage bands mentioned in subdivision (c) of the
previous paragraph, a principal amount thereof which shall equal the
market value of the securities at the time of such conveyance and transfer,
together with the amount of cash (if any) then held in said depreciation
funds, to the extent excluded from the transfer and assignment and so
released; provided that, any bonds of B.M. T. Corp. and/or first and
refunding mortgage 6% bonds of New York Rapid Transit Corp. held in
such funds and so excluded and delivered shall be taken at their redemption prices instead of at their market values.
Securities Prior Lien After Operating Charges
6. The lease from the city to the Board of Transit Control will provide
that the charges for interest and sinking fund on the Board of Transit
Control bonds, in the order of their respective liens, constitute prior charges
upon the net income remaining after the payment or provision for the
payment of all proper operating charges, including maintenance and
depreciation and taxes, if any; having paid the interest and amortization
upon its own bonds the Beard of Transit Control shall then pay the
city an amount equal to the interest on the corporate stock issaed in
connection herewith and amortization at a rate adequate to retire same
at maturity, and also an amount equal to the municipal taxes paid 1 y the
properties to be acquired in the fiscal year 1934; the rental to the city
for its prior investments in the properties included in the leas:: to be
the balance remaining after such charges, and such reservations, if any,
as the Board of Transit Control may determine, with the app-oval of
the Board of Estimate and Apportionment of the city, to be n,crssary
for new construction and equipment or for contingencies.
Impairment of Securities Gives Right to Withdraw
The city, at its option, to be exercised prior to the approval of the plan
in definitive form by the Board of Estimate and Apportionment snd the
submission thereof by B.-M. T. Corp. to its bondholders and stockl.olders,
may include in the unification and in the lease the rapid transit railroads
and properties of Interborough Rapid Transit Co. or of both that company
and the Manhattan Ry. Co. and/or the rapid transit railroads (constructed,
under construction or to be constructed) and equipment comprised in the
Independent System of the city, upon terms and conditions to be determined or approved by the city; but it is recognized that the B.-M. T. Corp.
may withdraw from the plan if, upon the exercise of this option by the
city, the resulting terms and conditions impair the security or position
of, or unjustly discriminate against, the first and second mortgage bonds
of the Board of Transit Control to be delivered as above provided.
If the rapid transit properties of Interborough Rapid Transit Co. or
of both that company and Manhattan By. Co. are included with the
B.-M. T. rapid transit and power properties in the plan, it is und rstood
that the bonds issued by the Board of Transit Control will be secured by
consolidated mortgages upon the lease of all the properties included in the
plan, and not by divisional mortgages segregated as between the respective
systems.
City Not Obliged to Include Eighth Avenue Line
Should the city, at its option, include its Independent System in the
plan hereby contemplated, or in any other separate plan for the acquisition
of rapid transit properties, and should it use this system or the revenues
therefrom further to secure Board of Transit Control bonds issued to acquire
such rapid transit properties, then the city will arrange that the Board of
Transit Control bonds to be delivered to or on the order of the B M. T.
Corp., as above provided, will receive their proportionate part of such
security; but the city shall be under no obligation of any sort to include
its Independent System as such further security in the plan hereby "ontemplated or in any other separate plan.
7. Subject to the understanding, as above stated, as to the current assets
to be conveyed and transferred and to be retained, the Board of Transit
Control will assume all current liabilities of New Yark Rapid Transit Corp.
incurred in the regular course of business and outstanding on or as of the
date of closing, and in addition will assume all tort claims or claims for
damages and tax claims in litigation outstanding on or as of that date
and not defined as current liabilities. The tax claims in litigatlon, a
list of which has been furnished to the city's representatives by ioitialed
memorandum, consist of special franchise taxes which, although collected
by the State, go to the city were collected. The estimated liabilites on
account of tort claims or claims for damages which are to be assumed by
the Board of Transit Control amount to approximately $1,475,000, as
against which the city stands to receive excess of current assets in the
amount of $500,000 and securities deposited with the city and with the
State Industrial Commission and special deposits in an aggregate :mount
of approximately $1,050,000.
Liabilities on Tort Claims Subject to Inquiry
The liability on tort claims or claims for damages and on such tax
claims in litigation to be assumed by the Board of Transit Control is estimated. Such estimates are not guaranteed, but shall he subject to investigation and check by the representatives of the city. and if, prior to the
approval of the plan in definitive form by the Bird of Estimate and
Apportionment of the City, it shall be determined by the city's representatives that the actual liabilities thereon exceed the estimate by substantial
amounts, the city may decline to proceed with the transaction and withdraw. In determining the relationship of current assets to current liabilities
on or as of the date of closing, all tax claims, other than the tax claims
in litigation as shown on the list thereof furnished to the representatives
of the city, will be treated as and included in current liabilities.
The properties and business of New York Rapid Transit Corp. and
Williamsburgh Power Plant Corp., respectively, will be managed, operated
and maintained in the usual and ordinary course, without material change
In or lowering of the present standards - practices, and without the
1250
Financial Chronicle
sale or other disposition of any of its fixed assets, or any of the securities
of the Rapid Transit Corp. comprised in its investments, or any other
unusual or extraordinary transactions, pending the completion of the
unification plan and the conveyance and transfer of the properties. If,
however, prior to the date of closing, it shall be necessary or desirable in
the operation and maintenance of the properties to provide additional construction or equipment, but not including renewals or replacements. the New
York Rapid Transit Corp. or the Williamsburgh Power Plant Corp., as
the case may be, may with the approval of the city provide new funds for
such additional construction or equipment either through the issuance
and sale of securities or through the application of earnings, and in that
event appropriate allowance on account of such new funds so invested will
be made and included in the principal amounts of first mortgage bonds of
the Board of Transit Control to be issued and delivered for the properties.
Existing Contracts Are to Be Honored
8. Subject to the provision below in respect of the supply of power to
Brooklyn & Queens Transit Corp., the Board of Transit Control will
acquire, assume and perform all now outstanding agreements, leacrs contracts and orders of New York Rapid Transit Corp. and Williamsburgh
Power Plant Corp., respectively, to be assigned and transferred. Such
agreements, leases and contracts are represented to be substantially as
shown on the lists thereof furnished to the city's representatives, exclusive
of routine orders or contracts for materials or supplies or for construction
or equipment made in the ordinary course of operating and mainlaining
the properties. These lists are not guaranteed by
T. Corp., but are
subject to investigation and check by the city's representatives, and if,
prior to the approval of the plan in definitive form by the Board of Estimate
and Apportionment, it shall be found that there are other agreements of a
materially burdensome nature not included in such lists, that fact shall
be sufficient ground for the city to withdraw from the transaction.
In this connection, the Board of Transit Control will take over the space
allocated to New York Rapid Transit Corp. and Williamsburgh Power
Plant Corp. In the general office at No. 385 Flatbush Avenue Extension,
Brooklyn, and will assume the obligation to pay the rental allocated to
said corporations on account of such space for the remainder of the term
of the lease between B.-M. T. Corp. and the owner of the premises.
B.-M. T. to Bear Costs It Incurs in Deal
9. All costs and expenses incurred by B.-M. T. Corp. in connection with
the consummation of the plan, including the fees and disbursementa of its
counsel, depositaries, trustees and members of committees, and in connection with the calling or exchange of B.-M. T. and N. Y. R. T. securities
to be dealt with under the plan, will be borne and paid by B.-M. T. Corp.
No costs of any kind in connection with the negotiation or consummation
of the transaction, directly or indirectly, will be charged to Nes York
Rapid Transit Corp or Williamsburgh Power Plant Corp.
The city and the Board of Transit Control will bear and pay the cost
of their own legal services and organization expenses, including expense
of printing the plan, lease from the city to the Board of Transit Control.
mortgage indenture of the Board of Transit Control and other doonments
in connection with the lease from the city to the Board and mottgages
thereon and the cost of preparation of the Board of Transit Contro: bonds
in form for listing on the New York Stock Exchange. The Board of Transit
Control, if requested, will make application to list its first moitgage
and/or second mortgage bonds on such Exchange.
Consent of Holders of Securities Required
10. The transaction is conditional upon the B.-M. T. Corp. obtaining the
voluntary deposit for exchange of at least 75% in amount of its outotanding securities and the outstanding securities of New York Rapid Transit
Corp. to be exchanged for the city corporate stock and Board of Transit
Control first mortgage bonds; also upon
T. Corp obtaining the
requisite authorizations, consents or approvals of its stockholders and upon
Its ability to arrange upon reasonable terms for the underwriting of any
non-assenting securities.
11. If any of the agreements, leases or other instruments to be assigned
and transferred to and assumed by the Board of Transit Control, aftecting
the operation or maintenance of the railroads or the production, conversion
or distribution of power, are terminable on notice or expire at act early
date, and either the city or the Board of Transit Control desires an extension of the life thereof for a definite or a longer period, the B.-M. T. Corp.
will use the powers it may have to obtain or to assist in obtaining the
extension of such agreement, lease or other instrument as desired, 'upon
terms at least as favorable as those now enjoyed by New York Rapid
Transit Corp. or by Williamsburgh Power Plant Corp., as the case may be.
The city will advise the B.-M. T. Corp., prior to the approval of tie plan
In definitive form by the Board of Estimate and Apportionment, which, if
any, of such agreements, leases or other instruments it desires te have
extended and the period or periods of the extension; and if it should
appear that the terms upon which such extensions can be produced are
not as favorable as those now enjoyed by New York Rapid Transit Corp.
or by Williamsburgh Power Plant Corp., as the case may be, the city
may decline to proceed with this transaction and withdraw.
Long-term Power Contract Essential Condition
12. It is one of the essential conditions of the transaction that a longterm power contract, not less than 10 years, shall be executed and
delivered by and between Brooklyn & Queens Transit Corp. and the Board
of Transit Control, the terms and conditions of which shall be mutually
satisfactory to said two parties, under which the Brooklyn & Queens Transit
Corp. will agree to buy, and the Board of Transit Control will agree to
produce, sell and deliver, all the power required by Brooklyn & Queens
Transit Corp. for the operation of its street surface railroad lines. Such
power contract shall take the place of and terminate all outstanding power
contracts between Brooklyn & Queens Transit Corp. and Williaurburgti
Power Plant Corp.
13. The Board of Transit Control mortgages will permit the abandonment
of elevated railroad structures or other property which in the judgment
of the Board should be abandoned, under appropriate protective provisions
that the security for the bonds will not be thereby impaired.
14. The city will have the privilege of withdrawing from the plan at
its option should there be found, at any time prior to the conveyani e and
transfer of the properties, any material error in the data furnished to its
representatives with respect to the operations, assets and liabilit les of
New York Rapid Transit Corp. and Williamsburgh Power Plant Cup. or
with respect to the properties or the titles to the properties to be conveyed
and transferred.
Feb. 23 1935
16. New York Rapid Transit Corp. will release any claim to the so called
"preferential deficit" under Contract No. 4 and related certificato as it
shall be on or as of the date of closing fixed in the definitive plan.
17. The amount of first mortgage bonds of the Board of Transit Control
to be delivered to or on order of B.-M. T. Corp., as above provided, will
be reduced by a principal amount equal to 75% of the aggregate amount
of the call prices of all bonds of B.-M. T. Corp. and/or first and refunding
mortgage 6a of New York Rapid Transit Corp. acquired after the date
of this memorandum by the respective sinking funds under the mgtgages
securing such bonds.
18. The rate of fare in the lease from the city to the Board of Transit
Control will be Sc., unless and until changed by the Board of Transit
Control with the approval of the Board of Estimate and Apportionment
of the city.
19. The lease from the city to the Board of Transit Control will provide
that it may be amended by agreement between the city, the Board of
Transit Control and the trustees of the mortgages securing the boi ds of
the Board of Transit Control, with the consent or approval of the holders
of not less than a majority in amount of bonds of each issue of the Board
of Transit Control at the time outstanding in the hands of the public:.
20. The depreciation funds under Contract No. 4 will receive for the
New York Rapid Transit Corp. securities therein the same pro rata a,nounts
of city corporate stock and Board of Transit Control first mortgage bonds
as are offered to the public holders thereof for exchange; and the agpegate
amounts of city corporate stock and Board of Transit Control first mortgage bonds set forth in paragraph "4," subdivisions (b) and (c), nereof,
include provision for the New York Rapid Transit Corp. securities .n the
depreciation funds. The depreciation funds will then hold the exchanged
securities, subject to the right of the city to elect, as above provided, not
to take the depreciation funds, but to release them to B.-M. T. Corp. in
diminution of the first mortgage bonds of the Board of Transit Coitrol
to be delivered.
Exemption of Securities Required in Contract
21. The transaction is conditional upon the understanding that the prop.
erties and income of the Board of Transit Control and its booth to be
issued and delivered shall, at the time of the issuance and delivery of such
bonds, be exempt from Federal income taxes and from all State, county
and municipal taxes in such manner and to such extent as shall be nt sually
satisfactory to the parties.
22. The provisions of the plan in its final form, the lease, the bonds of
the Board of Transit Control and the mortgage indentures securing them,
and of all other agreements, documents and instruments in connection
with the formulation and consummation of the plan, shall be mutually
satisfactory to the city and to B.-M. T. Corp. ; and the forms of all such
agreements, documents and instruments and all other legal details in connection with the plan and its consummation shall be subject to the approval
of counsel for the city and counsel for B.-M. T. Corp.
23. Failure for any reason or cause to carry out the transaction and to
consummate the plan as contemplated shall not give rise to or be ground
,p. or
for any claim or suit for damages by the city against B.-31. T. 0,
any of its subsidiaries or by said corporation or any of its subsidiaries
against the city.
Both Sides Must Agree on Set-up of Board
24. The constitution of the Board of Transit Control and provicions for
the management of the properties embraced in the lease, whether t: ey be
managed and operated by the Board of Transit Control or otherwiac, shall
be mutually satisfactory to the parties.
25. Authorized representatives of the city shall have the oppolunity,
during ordinary working hours from the date hereof to the completion of
the plan, to examine and audit the books and accounts and to examire all
property of New York Rapid Transit Corp. and Williamsburgh Power
Plant Corp., respectively, and to confer with and obtain information from
any of their respective officers and heads of departments.
26. The representatives of the city will recommend the foregoing outline
of plan to the Board of Estimate and Apportionment for prompt
approval ; and the Unification Committee of the B.-M. T. Corp. will recommend it to the Board of Directors of said corporation for prompt ap: royal.
Upon the approval of the plan in definitive form by the Board of Es+'mate
and Apportionment of the city, and the approval thereof by its Board of
Directors, the B.-31 T. Corp. will promptly request the deposit of its
outstanding bonds and the outstanding bonds of New York Rapid Transit
Corp. for exchange, and submit the definitive plan to its stockholdas for
their authorization and approval.
27. Unless the definitive plan, together with the lease between the city
and the Board of Transit Control, shall be approved in final fool: and
consummated by Oct. 1 1935, either the city or the B.-M T. Corp. may
withdraw and terminate the transaction. This time, however, linty be
anticipated or extended by mutual consent of the parties.
Dated: New York, Feb. 19 1935.
SAMUEL SEABURY,
Special Counsel, Board of Estimate and Apportionment,
A. A. BERLE JR., Chamberlain,
CHARLES HAYDEN,
Chairman, Unification Committee, Brooklyn-Manhattan Transit Corp.
Company Will Drop Suit Against the City
Many Administration Programs "Temporary Expedien4s," According to Secretary of Commerce Roper
—Cabinet Member Seeks to Reassure'Business
Men that Profit Motive Must Be Preserved
Many of the Administration's current policies are only
"temporary expedients," and its expressed attitude toward
holding companies should not be regarded as an "indictment
of sound and constructive corporate finances and beneficial
trusteeships," Secretary of Commerce Roper said on Feb. 15,
in an address before the National Conference of Business
Paper Editors in Washington. Mr. Roper,in a speech which
was interpreted as an effort to reassure business men, asserted that "more and more we are all coming to a better
realization of the value of closer co-operative relationships
between the Government and business." We quote further
from his speech, as given in a Washington dispatch of Feb. 15
to the New York "Times":
15. The "$30,000,000 suit" pending against the city will be discontinued
and mutual releases exchanged.
"We have had in the past a prevalence of expressions stating that the
present Administration is opposed to business profits and has sought to
Volume 140
Financial Chronicle
obstruct, or even eliminate, the making of profits,",;Mr. Roper said.
"Nothing could be further from the truth.
"The President has emphatically stated his position in this regard.
The profit motive and principle must be a mainspring of human
action in
our economic and social system. It is indispensable as an incentive for
initiative and accomplishment in all fields of private economic enterprise.
"However, it is mandatory upon the Federal Government to initiate
methods and develop safeguards which will protect the public against
practices which allow the making of unsound, unethical and exorbitant
profits. Let us remember that the tax system of this Government is based
entirely upon the profit system, and to eliminate profits would mean to
abolish the source of the Government's sustenance and revenue.
"Thus we recognize the vast difference between eliminating abuses in the
profit system and in abolishing the system itself. It is just as significant
to note the related truth that widespread Governmental participation during
an emergency must not be interpreted as a drift toward State Socialism.
"In these principles is involved much of the philosophy of the New Deal,
constituting an effort, to the best extent possible, to bring about fair
treatment for all. In conformity with this philosophy, there is no desire
upon the part of the Administration to invade the fields of industry or impose Governmental restrictions on private business except where such steps
are deemed vitally necessary for the protection of the general welfare."
AAA to Continue Adjustment Programs—Reported as
Designed to Offset Drought
The Agricultural Adjustment Administration announced
Feb. 16 that it is not considering abandonment of any program now in effect. The adjustment programs of 1934 were
modified to offset, in so far as possible, the unbalanced conditions brought about by the unprecedented drought, it was
stated. All of the major programs for 1935 call for increases
over 1934 farm production. It is expected, the Administration said, that these increases will gradually overcome the
effects of drought. Even in the case of cotton, with a carryover still twice of normal, a substantial increase over last
year's acreage is provided for on the 1935 contract.
The
Administration's announcement continued:
So far as can now be forecast, on the assumption of normal
growing
conditions, American farmers will produce in 1935 about
70% more grains
than in 1934, about the same large volume of truck crops and
fruits and
vegetables, only 5% less poultry, and a similar percentage
of decline from
the high dairy production of 1934. Substantial reduction,
however, will
occur in the slaughter of meat animals. In the case of
cattle and sheep,
this expected reduction in slaughter will be due entirely
to the recent
heavy marketings forced on farmers by the drought
feed shortage. In
the case of hogs, the adjustment and corn loan program
had the effect
of bringing about a more orderly reduction of slaughter
than would in
any case have resulted from the drought.
The following, in part, is also from the Administr
ation's
announcement:
The rise in food costs since last summer largely
reflects the shortages
in crops and livestock production which were hardest
hit by drought.
Retail food costs, which in 1929, prior to the depression,
were 150%
of pre-war, declined to pre-war levels in 1933, averaged 109%
of pre-war
in 1934, and even after recent sharp advances in livestock
products, are
now only about 120% of pre-war, or 30 points below the 1929
average.
A press statement that farm prices of 14 basic commodities
were 24%
above pre-war parity is incorrect.
The facts are that the average prices received by farmers
for the 14
items in January averaged 106% of pre-war level. Parity
on these items
would be 126% of pre-war. The January farm prices of these
14 items
therefore were 20 points below parity. Farmers received benefit
payments
on a portion of their Sales. Considering benefit payments
as additional
income, farmers received on the part of their crops consumed
in this
country returns equivalent to 124% of pre-war prices, or two
points less
than parity. This figure covers the 14 items described by
law as basic.
On the seven of these items covered by adjustment programs,
the farmers
received in farm prices plus benefit payments, nine points above
parity,
but this margin over parity applies, not to their entire sales,
but only to
that share of their sales consumed in this country. . . .
Departure of Oscar Johnston of United States Department of Agriculture for Europe—Will Survey Markets Abroad for Possibilities of Bettering Export
Situation of American Agricultural Commodities
Oscar Johnston, special adviser to the United States
Department of Agriculture on Southern agriculture, sailed
from New York yesterday (Feb. 22) for Europe, where
he
will visit various countries for the purpose of surveying
the
possibilities of improving the export situation of American
agricultural commodities. Mr. Johnson, upon his arrival
In Europe, will begin a general survey of financial and marketing conditions in foreign countries. Announcement
of
Mr. Johnston's intended departure was made on Feb. 16 by
Secretary of Agriculture Wallace. A statement issued
at
the time by the Agricultural Adjustment Administration
said:
Secretary Wallace emphasized that Mr. Johnston's mission has
no relation to the stocks of cotton under Government control, and that no effort
was to be made to undertake the marketing abroad of any of the cotton
held in the 1933 Cotton Producers Pool of which Mr. Johnson is manager.
The Secretary stated that there was no reason at this time for altering
the present policy of marketing this cotton through the normal trade channels, and that Mr. Johnston would not negotiate with foreign consumers
of cotton for the sale of any of the cotton under Government control.
The purpose of the mission, as explained by Secretary Wallace, is to
explore the possibilities of increasing American exports of agricultural
commodities.
Secretary Wallace pointed out that the United States recognizes its
responsibility for the accumulation of the large surplus of cotton which
had come into existence prior to Aug. 1 1932, and that because of this,
1251
this nation has undertaken the task of relieving the markets of
the world
of this burdensome excess.
"America is anxious to move the surplus cotton into consumption
,"
Secretary Wallace said, "without, at the same time, either unduly depress.
ing world prices or losing for the American cotton producer the benefit
cf world mar.
—0—
C
stitutionality of Frazier-Lemke Farm Morato •um
Legislation Upheld by United States Circuit Co t
of Appeals at Cincinnati—United States Suprem
Court Asked by Louisville Joint Stock Land Bank
to Pass on Validity of Act
On Feb. 16 the U. S. Supreme Court was asked by the
Louisville Joint Stock Land Bank to pass upon the constitutionality of the Frazier-Lemke amendment to the
Bankruptcy Act giving farmers a 5-year moratorium for
paying off mortgages.
A review is sought of the decision of the 6th Circuit Court
ef Appeals, at Cincinnati, which upheld the act. On Feb. 11.
Associated Press advices from Washington said:
Both debtor and creditor in the case placed before the Court joined in
asking for review and expeditious action. They expected an order March 4
stipulating that the case would be heard, and that it would be set for argument during the week of March 11.
In the case involved, the Louisville Joint Stock Land Bank held a $9,000
mortgage on the farm of William W. Radford Sr. He applied for the protection of the Frazier -Lemke law and obtained in District Court and Circuit
Court of Appeals, approval of:
A 5-year stay of all proceedings against him for foreclosure: the right
during that period to remain in possession of the farm upon the payment of
$325 a year rental; and the right at any time during the five years to purchase the mortgaged property at its appraised value. Appraisers set this
figure at $4,425.
Regarding the conclusions of the U. S. Circuit Court of
Appeals the Cincinnati "Enquirer" of Feb. 12 said in part:
The Sixth District U. S. Circuit Court of Appeals, handing down its opinion in the appeal of the Louisville Joint Stock Land Bank, Louisville, Ky.,
against William Radford Sr., farmer, from the judgment of District Judge
Charles I. Dawson, Louisville, Ky., went on record as affirming the constitutionality of the New Deal measure which amends the National bankruptcy laws so as to permit the Court to restrain foreclosure and grant to
farm owners 5-year extensions during which they continue to occupy the
lands as tenants under rentals fixed by the Court and during which they
have the option of purchasing the lands at values fixed by appriasement. ..
Bank Appealed Decision
Mr. Radford, owner of a farm at Howell. Ky., was adjudged a bankrupt
when he still owed the bank $7,594.64 on mortgages totaling $0,000. The
Bank appealed after a lower court granted Mr. Radford the relief he asked
under the Frazier-Lemke Act.
The bank contended that the act is violative of the Constitution; that it
deprives the bank of property without due process of law.
The opinion of the Court written by Charles C. Simons, U. S. Circuit
Judge, Detroit, Mich., who, after reviewing the history of the case, found
that the mortgagor is not deprived of his property without due process of
law nor of his other rights under the Constitution.
Not Beyond Power
Going into the law of the case, Judge Simons, voicing the opinion also of
his colleagues, Circuit Judges Charles H. Moorman. Louisville. Ky., and
Xen Hicks. Knoxville, Tenn., who, with him, heard the arguments in the
appeal of the land bank, holds that the Frazier-Lemke amendment is not a
measure beyond the power of Congress as given Congress by the Constitution to establish uniform laws on the subject of bankrupticies: that it is not
in contravention of the 10th Amenedment to the Constitution; and that it
does not deprive creditors without due process of law, and therefore, in
contravention of the 5th Amendment to the Constitution.
In the course of the Appellate Court's opinion,it is stated that the FrazierLemke amendment provides for the ratable distribution of the bankrupt's
assets among his creditors, and that in respsonse to a manifest public
purpose it opens the door of opportunity to the bankrupt's rehabilitation.
l'hat it opens this door, is not of itself destructive of the character of the
legislation as within the constitutional grant of power, the Court says.
The Court also states that the law's limitations to a single class (farmers)
does not invalidate the statute, if the classification be reasonable, because
the uniformity required by the Constitution is geographical and not personal.
A Reasonable Auxiliary
Discussing composition. the Court says that while they may be regarded in
some respects as outside of bankruptcy proceedings, they are reasonably
auxiliary thereto and never have they been held to be invalid even though
the bankrupt is permitted to retain possession of his property.
"It must be remembered," the opinion states. "that constitution
al
power is not necessarily confined with those limits within which the Congress
has hitherto seen fit to exercise it. The novelty of a provision is no
demonstration of its invalidity. The grant to Congress of the power to establish
bankruptcy laws involves the power to impair the obligations of contracts.
This the States by the 14th Amendment are forbidden to do."
Appellate Court also takes the position that the Frazier-Lemke
Act is
Justified from the standpoint of public policy and welfare. As
to this phase
the Court says:
Public Weal Foremost
"The public welfare sought to be conversed by the assailed
legislation
not only transcends the interest of the clam to be affected,
but it is rooted
in the traditional policy of the United States to prevent
the development of
a great class of dependent tenant farmers comparable
to the peasantry of
European States.
"This policy was clearly reflected in the disposition
of the public domain,
the homestead laws, and the limitations written
into the railroad land
grants, restricting sales in quantity and price
to actual settlers.
"This is not to say that substantial private
rights must yield to public
policy in the face of constitutional limitation, but indicated
is
as an aid to
determining whether constitutional power has been arbitrarily
or unreasonably exercised or the balance between individual
interests and the public
welfare destroyed."
In our issue of Dec. 1 (page 3412) we noted the decision of
Judge Dawson of Louisville upholding the constitutionality
of the act.
1252
Financial Chronicle
Green Appointed by FCA to Conduct Cooperative Grain Marketing Research
Appointment of Roy M. Green, of the Kansas State
College, Manhattan, Kan., to conduct research in cooperative grain marketing for the Co-operative Division, was
announced on Feb. 9 by W. I. Myers, Governor of the
Farm Credit Administration. For the past year Mr. Green
has been on leave from Kansas State College serving as VicePresident of the Production Credit Corp. of Wichita. As a
member of the staff of the Co-operative Division, it was
stated, Mr. Green will conduct research studies in all phases
of co-operative grain marketing including sales methods and
policies, management, organization set-up, financial, and
other operating problems.
Roy
M.
Feb. 23 1935
improvement in agricultural credit conditions. With over one and one-half
billions advanced to refinance farm debts, the lending activity of the
Federal Land banks is now leveling off, while the new short-term financing
by the production credit associations is becoming an increasingly important
factor in agricultural recovery.
Support by Senators of McCarran "Prevailing Wage"
Amendment to Work Relief Bill Urged by President
Green of A. F. of L.
A move on the part of labor to enlist the support of
Senators in securing the incorporation in the work relief bill
of the McCarran "prevailing wage" provision was made by
William F. Green, President of the American Federation of
Labor, in a letter to every Senator in Washington, made
public on Feb. 17. The letter declared the compromise
Russell amendment to the bill "unsatisfactory and unFCA Plans Study of Farm Insurance Problems—Victor acceptable to labor." The insertion of the Russell amendN. Valgren Appointed to Conduct Work
ment in the bill, as a substitute for the McCarran provision
Expansion of the research and service work with farmers' was noted in our issue of Feb. 16, page 1073. The McCarron
co-operative marketing and purchasing associations to in- provision was written into the bill on Feb. 7 by the Senate
clude co-operative farm insurance problems is planned by Appropriations Committee which, however, voted on Feb.
the Co-operative Division of the Farm Credit Administra- 11 to reconsider its action and on Feb. 13 rejected the
tion, Governor W. I. Myers disclosed Feb. 17. At the same McCarron amendment, adopting in its stead the Russell
time Mr. Myers announced the appointment of Victor N. amendment. It was made known at the time by President
Valgren to be in immediate charge of the insurance work.
Green that labor would oppose the Committe's action in
Except for a period of three years Dr. Valgren has been dropping the McCairan provision. Mr. Green's letter to
continuously connected with the United States Department the Senator follows:
Washington, D. C., Feb. 14 1935.
of Agriculture since 1915 where he did extensive research
Dear Sir:
work in the field of farm insurance. From 1923 to 1926
The Russell amendment to the public works relief measure, adopted by
he was on the home office staff of one of the larger multiple the Senate Appropriations Committee, providing for the payment of relief
wages
line insurance organizations of Hartford, Conn. Mr. Myers labor. existing in each community, is unsatisfactory and unacceptable to
said that in his new position Dr. Valgren will study practical
This amendment, if adopted will in no way protet labor in its efforts
problems involved in various types of co-operative farm to protect wage standards set in different communities as a result of years
struggle and effort on the part of organized labor.
insurance with which the FCA unavoidably comes in con- ofWe
sincerely wish and desire that standard rates of pay in each community
crop
general
tact, including fire, windstorm, hail, and
shall be guarded, preserved and protected.
We are of the opinion that a relief wage established on a lower basis
insurance.
$45,000,000 of Current and Delinquent Taxes Paid by
Farmers from Loans Advanced by FCA Under
Farm Debt Refinancing Program
Farmers used $45,000,000 of the money loaned by the
Farm Credit Administration under the program of refinancing farm debts to pay current and delinquent taxes, according
to a statement made Feb. 16 by W.I. Myers,FCA Governor.
From May 1 1933 through Dec. 31 1934 the Federal Land
banks and the Land Bank Commissioner loaned $1,494,000,000 on the security of farm mortgages, and $45,211,018, or
3%, was used to pay taxes, Mr. Myers said. He added:
The fact that about 72% of the total amount loaned under the refinancing
program was used to refinance farm real estate mortgages indicates that
most of the $45,000,000 applied to tax payments was used to pay taxes on
farm real estate. The money applied to tax payments prevented thousands
of tax sales and saved uncounted acres of farm land for the owners.
Farm tax payments resulting from the refinancing program are partly
responsible for the recent sharp decrease in farm tax delinquencies. The
estimated delinquencies of 1933 farm taxes—collectible in 1934—showed a
decrease of 17% compared with the preceding year.
Recently, there has been a steady downward tendency in farm tax levies
which is a happy sign of better conditions. Since 1929 farm real estate
taxes for the United States as a whole have decreased from an average of
$0.58 per acre to $0.39 per acre. One of the most noticeable reductions
was in Indiana where the average farm real estate tax was reduced from
$1.39 to $0.55 per acre, or a decrease of 60%. . . .
than the prevailing rates of pay will tear down our wage standards and,
either directly or indirectly, cause reduction in the wages of Am:dean
working people.
For this reason I appeal to you in behalf of labor to vote against the
Russell amendment and to supoort the amendment offered by Senator
McCarran providing for the recognition, observance and protection of
prevailing rates of pay in each community.
Labor regards this matter as very vital and of tremendous importance.
We hope the friends of labor in the United States Senate will support
labor in its efforts to preserve decent American standards of living, and
to preserve in each community the prevailing wage rates which labor
established through concentrated organized effort.
We want to preserve our American standards of wages, of life and of
living. We cannot permit a temporary relief measure to be used as an
instrumentality through which the standards shall be lowered.
Please be assured that I am counting on your help and support in behalf
of the McOarran prevailing wage amendment to the public works relief bill.
Very truly yours,
WILLIAM GREEN,
President. A. F. of L.
Automobile Labor Board Reports Progress in EmployerWorker Relations—NRA Apparently Preparing to
Buy from Henry Ford
The Automobile Labor Board, created by President Roosevelt at the time of the threatened strike in the automotive
industry, made public on Feb. 16 a report covering more
than 10 months of activity. The Board said that discrimination as a result of union membership is not a problem in the
It remarked that of 2,035 complaints received, all
Loans Closed During January by Farmers' Production industry.
but 225 have been disposed of, and in 1,061 cases men were
Credit Associations Reported 35% Above December
New financing by farmers' production credit associations re-employed by the companies without the formality of
advanced sharply during January showing a 35% increase argument before the Board. Of the 11 strikes in the industry
in the number of loans closed compared with December and which have occurred during the life of the Board, a majority
over a 100% increase in loan applications, Production Credit were based on issues which might have been settled through
Commissioner S. M. Garwood, of the Farm Credit Ad- the use of available machinery for orderly adjustment. The
ministration, stated Feb. 18. Over 11,700 short-term loans Board said that workers and employers have recently made
for $13,100,000 were closed during the month compared to much progress in establishing a system of collective bar8,600 for $12,000,000 during December. Applications in gaining, and pointed out that 90% of eligible workers have
January totaled 40,600 for $27,200,000 compared to 19,900 voted in the primary elections already hold in the industry,
for $20,000,000 during the preceding month. Commissioner indicating that no large number is boycotting those elections.
Garwood pointed out that while the largest increase in This point was interpreted as a reply to the charge by the
applications was reported in the early crop production sections American Federation of Labor that members of its unions
of the Southern and Southwestern States, there were sub- are boycotting the elections. Thus far the Federation has
stantial increases during January in the volume of new received less than 5% of votes cast.
The report was summarized in part as follows in a Washloans in practically every section of the country. He said:
ington dispatch of Feb. 16 to the New York "Herald
The early increase in production financing is a clear indication of the
ability of the associations to finance a much larger volume offarm production
Tribune":
requirements this year than last. With the experience of a very successful first year behind them the production credit associations are now in a
position to give permanent service. In many sections last year the production credit associations were not organized in time for early crop production
financing. Very few applications were received during January and
February 1934. This year, however, thousands of farmers are applying
early, and arranging their loans well in advance. No interest will be
charged on undlsbursed loans approved now. Interest is payable only on
the money actually advanced.
A far larger number of farmers are now applying for production loans
Shan for emergency farm mortgage refinancing. This indicates a decided
The report made no mention of the various charges made by the A. F. of
L..one of the chief of which was that the plants chosen for the first elections
were those in which there were no Federal unions or very small ones. The
A. F. of L. has charged the Automobile Labor Board, of which Dr. Leo
Wolman is Chairman, with bias in favor of the employers over a long period
of months and has maintained that the Board lacks authority since the
A. F. of L. has withdrawn its assent to its continuation. The Board was
created last March as part of the settlement negotiated by President Roosevelt between the A. F. of L. leaders and the employers when strikes wore
threatening. The President recently rejected the A. F. of L. claim that the
Volume 140
Financial Chronicle
Board was no longer operative, taking, instead, the position that it was
established by the President and that he alone had the power to alter or
terminate its duties.
The summary of cases submitted to the Board from March 29 1934 to
Feb. 5 1935, was given in the report as follows.
Returned to work without a hearing
1,061
Complaints withdrawn, dropped or lapsed
550
Decisions issued by the Board
199
Decisions to be issued by the Board
12
Cases awaiting a nearing
13
Cases awaiting reply from complaint
139
Cases awaiting reply from company
61
Total number of cases
2,035
Jobs Restored in 1,061 Cases
In the 1,061 cases the Board reports workers received their jobs again "by
agreement between the company and the Board or as a result of the mere
intervention of the Board." In summary the Board states:
It is the Board's judgment, after ten months' experience in the industry,
that the discrimination caused by union activity or union membership
is not a problem of any magnitude at the present time, and has not been
for some time In the past. Wherever agreements are made between the
industry and the Board or the industry and labor to return men to work or
to restore to employees their seniority it is the Board's information that
these agreements have been fairly observed. Furthermore, in all the many
Instances in which the Board has ordered individuals or groups back to
ork they have been returned to work, so far as the Board knows. Few
cases have been brought to the Board's attention of violation of its orders
and decisions."
Data on 11 Strikes
Concerning the 11 strikes that have occurred in the industry since the
Board was created, all these strikes having occurred in April and May.
1934, the Board states.
It is noteworthy that the issues precipitating the majority of these
strikes were such that they could have been swiftly and satisfactorily
settled, without resort to conflict, by the use of the machinery of orderly
adjustment available in this industry. Furthermore, only in the Nash
and Motor Products strikes were wages a serious issue, and in the Nash
strikes the problem was not so much of a general level of wages as of a
series of details related to the methods of wage payments. When, for
example, the Cleveland strike was settled, representatives of the strikers
told the Board that the wages paid in that plant were satisfactory to the
men. The hourly earnings of employees of automobile manufacturing
plants are now higher than they were in 1929.
Collective Bargaining Pushed
It is needless to point out, the Board reports, "that the most contentious
of the issues confronting the Board has been related to problems of achieving and enforcing processes of genuine collective bargaining. The attack
on them has taken many different farms, as it necessarily must From the
very outset the Board issued orders to companies under its jurisdiction.
forbidding employers to use discriminatory measures among the various
organizations of labor in the industry. Whenever alleged violations of
these orders came to the attention of the Board, it promptly took them
up with the management in question. The Board laid down rules with
respect to solicitation of membership by company unions and other organizations of workers, and even such matters as favoritism in the use of plant
bulletin boards were subjects of general discussion and rulings by the Board."
Advices from Washington Feb. 19 said that under a
ruling now being drafted bx the National Recovery Administration the Government would be enabled to purchase more
cars from Henry Ford, who has declined to sign the automobile code. Associated Press Washington advices of Feb. 19
discussed these reports as follows:
Commerce Department purchasing officials asserted they were willing
to buy Fords on the basis of "available" evidence that the Detroit holdout
from NRA is complying with Blue Eagle codes.
Officials high in the Administration stressed that compliance with NRA
codes was still a prerequisite to selling to the Government, but two of
them, speaking separately but preferring not to be quoted, declared that
rules were being drafted to prevent those actually complying from being
excluded by technicalities.
All this became known through preparations by the War Department
to advertise for bids for approximately 2,500 automobiles.
laThe formal ruling, expected by officials to be an interpretation of the
President's Executive Order on compliance with codes, would clear the
air not alone for Ford but for several other large companies. Included
would be Sears, Roebuck & Co., whose President, Robert E. Wood,recently
was selected to advise in the spending of $4,000,000,000 under the proposed
work-relief bill.
Officials declined to say whether the Ford company was cognizant of
the present proposed ruling. Although the formal order has not been
completed, they believed it would be an interpretation which would specify
that a certificate of NRA compliance did not foreclose the signor from
objecting in the courts to changes in codes that he considered obnoxious.
Two Glass Concerns Increase Wages 5%—Strike Settled
at Two Plants of Pittsburgh Plate Glass Co. and
Averted by Libby-Owens-Ford Glass Co.
A strike of approximately 4,200 employees of the Creighton
and Ford City, Pa., plants of the Pittsburgh Plate Glass Co.,
which had been in effect 10 days, was terminated on Feb. 5
following the granting by the company of a 5% wage increase, some concessions in working conditions, and the signing of a new agreement with the Federation of Flat Glass
Workers of America. The agreement is to remain effective
until Nov. 1, at which time it may be renewed; in the meantime it may be modified upon 30 days' notice from either side.
The union had sought a wage increase of about 15%, it was
stated, and the strike followed unsuccessful negotiations conducted in Cleveland, Ohio, between the company and union
officials.
The Libby-Owens-Ford Glass Co. also participated in the
negotiations at Cleveland but a strike of the 6,400 employees
of this company was averted on Feb. 1 when a 5% wage
increase, and other slight concessions were granted.
The Pittsburgh "Post Gazette" of Feb. 6 said:
The wage raise granted here is calculated to add 89,000 weekly to the
pay of the glass workers, who are said to have lost 16120,000 in the eight
working days they were Idle.
1253
Pennsylvania Court Orders Insurgent Union to Rescind
Strike Order of Miners ot Glen Alden Coal Co.
Judge W. A. Valentine, at Wilkes-Barre, Pa., ordered on
Feb. 16 that the United Anthracite Miners of Pennsylvania,
an insurgent union organized several years ago, immediately
rescind the strike order issued Feb.2 of miners of Glen Alden
Coal Co.Judge Valentine also issued a preliminary injunction
against officers, members and associates of the union that
reiterated previous bans against violence and intimidation.
The strike called by the insurgent union was ruled unlawful
on Feb. 7 by Judge Valentine, who at that time upheld a
contract between the company and the United Mine Workers
of America, an affiliate of the American Federation of Labor.
In advices from Wilkes-Barre, Feb. 16, to the New York
"Times" of Feb. 17, it was stated:
The strike,called in protest against the action ofthe United Mine Workers
of America in barring insurgents from two Glen Alden collieries, led to a
reign of terror throughout the region. Two workers have been slain and
scores Injured.
A previous strike of the Glen Alden Coal Co. called by
the United Anthracite Miners of Pennsylvania was terminated on Jan. 1 when an agreement was reached between the company and the union. Reference to this was
made in our issue of Jan. 26, page 577.
Walkout of New York City Building Service Employees
Settled by Mayor LaGuardia—Strike Called Off as
Arbitration Award Will Be Clarified—Further
Trouble in Borough of Bronx Threatened
A strike of building service employees, which threatened
to cripple the operation of thousands of skyscrapers, office
buildings and apartment houses in New York City, was
ended on Feb. 19 through the mediation of Mayor LaGuardia,
who propossed terms satisfactory to the Building Service
Employees Union, the strikers' organization, and the realty
interests affected. Settlement of the walkout was brought
about by a clarification of the award of the Mayor's arbitration committee to meet the objections which had caused the
union to repudiate the group's award. This clarification will
be made with the purpose of adjusting wages and working
conditions affecting various classes of buildings and all
classes of employees involved. Although the settlement
negotiated by Mayor LaGuardia was expected to avert an
extensive walkout in Manhattan, there remained the
possibility late this week that Bronx members of the union
might not accept the terms offered and might participate
in a strike in that Borough.
The threatened strike of New York building service
employees was described in the "Chronicle" of Feb. 16,
pages 1086-87. At the time of reaching the agreement with
union leaders, approximately 5,000 employees had already
been called out on strike.
Settlement of the walkout was noted, in part, as follows,
in the New York "Times" of Feb. 19:
Announcement of the settlement was made by the Mayor shortly after
2.30 a. m. He thanked both sides for their co-operation and expressed his
gratitude also to Edward F. McGrady, Assistant Secretary of Labor, who
had come from Washington to assist in the settlement and played a leading
role in yesterday's negotiations. Others who helped in reaching the agreement were Major Henry H. Curran, chairman of the Mayor's arbitration
committee; Raymond V. Ingersoll, President of the Borough of Brooklyn,
who as head of a mediation committee last November paved the way for
the arbitration; William Collins, New York representative of the American
Federation of Labor; Joseph P. Ryan, President of the Central Trades and
Labor Council, and George Meany. President of the New York Federation
of Labor.
The A. F. of L. officials, the Mayor said, contributed materially in
bringing the strike organization to acceptance of the settlement.
The Mayor's Statement
The Mayor made the following announcement:
"I am glad to announce that after painstaking efforts by all parties concerned there has been a clarificationof the award.
After thanking all the aforementioned persons and the parties to the
controversy, the Mayor declared that it was only through their desire of
averting an industrial crisis in this city that made possible the understanding
that was brought."
"I want to express my gratification at the fact that the word of American
labor has been maintained," the Mayor added.
The settlement followed a day of strikes affecting about 100 buildings.
60 of them, mainly office and loft buildings below 42nd St., concentrated
for the most part in the garment and fur district, and the rest apartment
houses in Harlem. Late in the afternoon the Mayor brought about a truce
under which the strike movement was checked as the conferences aiming at
the final settlement were continued.
Official orders calling off the strike were expected to be issued by the
union this morning.
5,000 Walked Out
It was estimated that about 5,000 elevator and other service employees
joined in the the walkout of the union, which claims 180,000 members.
The Realty Advisory Board on Labor Relations, Inc., of
which Lawrence B. Cummings in Chairman, issued the
following statement on Feb. 18:
To-day, as a wanton act of utter repudiation, the Building Service
Employes Union called strikes against approximately 50 buildings, the
owners of which had agreed to abide by the findings of the arbtitration
1254
Financial Chronicle
committee, which Mayor La Guardia appointed Nov. 21 1934, and of
which Mr. Bambrick, President of the union, was a member.
When this fact was brought to the attention of Mayor La Guardia,
he insisted that all strikes called against buildings which claimed to be
covered by the Curran award were to be called off forthwith and that
no further strikes were to be called against such buildings pending conferences at the City Hall.
He also insisted that the arbitration agreements of Nov. 3 1934, signed
at the conclusion of the strike in the so-called garment center, are to be
respected and no strikes are to be called against buildings which signed
said agreements, and all existing strikes against such buildings are to
be called off forthwith.
The Mayor further insisted that until such action was taken by the
union all conferences between the union and the Realty Advisory Board
should cease.
In an attempt to find an excuse for repudiating the award handed down
by the Mayor's arbitration committee, the provisions of the agreement
which Mr. Bambrick signed, and the terms of which he certainly must
have known, were misquoted and garbled in a statement credited to him
in the newspapers to-day. The statement reads:
"When the Board was formed it was specifically instructed to provide
for the classification of buildings in order that the differentials in pay for
the semi-skilled workers in the building might be protected. The union
protests that the committee failed to consider such provisions and therefore
the agreement to accept the findings is not binding upon the workers'
organization."
The actual works of the arbitration agreement, which Mr. Bambrick
signed for the union, are:
"The committee of arbitrators, after suitable conferences and inquiries,
will set up reasonable minimum standards of wages and hours in the several
kinds and classes of buildings in the Borough of Manhattan,such standards
to take effect within such time after their date of announcement as the
board may deem reasonable, not exceeding one year."
It is plain to any one who has read the agreement to arbitrate that there
is no reference in any part of it to indicate or imply that the board should
attempt to classify wages in the buildings in the Borough of Manhattan.
Its sole purpose was to set up minimum standards in the different kinds
and classes of buildings—meaning office buildings, loft buildings and apartment buildings.
The attempt to read into the agreement an intention it did not contemplate and to make it an excuse for repudiation, makes one wonder
whether any contract that might be entered into with the union is worth
while.
Bill in New York Legislature Compelling Banks to
Segregate Money Paid for Bank Draft Opposed, by
Merchants' Association of New York
The Merchants' Association of New York announced on
Feb. 21 its opposition to a bill recently introduced in the
New York Legislature by Senator Kleinfeld which would
make it compulsory for banks to segregate money paid
for bank drafts and would also make it unlawful forrany bank
or bankers "to refuse to accept for transmission any money
tendered to it for such purpose solely because the person
offering such money for transmission is not a regular depositor or customer of such banking institution." The
provisions of the bill would apply to both national banks and
trust companies. The announcement said:
This bill has been examined by the Merchants' Association through its
Committee on Banking and Currency, of which J. Stewart Baker is
Acting Chairman, and in consequence the Association is opposing the
measure.
The Committee reported that it is undesirable "to create further preferment in assets of banks as is proposed by the segregation provisions in
this bill and, in view of past experience with frauds growing out of the
issuance of bank drafts to persons unknown to the bank issuing the draft,
that it is undesirable to prohibit banks from refusing to issue drafts to any
person solely because he is not a regular depositor or customer."
Executive Committee of United States Building and
Loan League to Meet in Washington Feb. 25
The executive committee of the United States Building
and Loan League will meet in Washington, D. C., Feb. 25
to determine why families and wholesale home builders are
not using the available credit for new home construction
and to recommend a practical program to bring about a
normal demand. They represent institutions with hundreds
of millions of dollars to lend on homes with relatively few
legitimate calls for the money. From an announcement
issued Feb. 9 by the League we also take the following:
The committee is made up of experienced residential financiers in the
business from 10 to 40 years, who represent every State and the District
of Columbia.
I. Friedlander, Houston, l'exas, President of the League and Chairman of
the Advisory Council to the Federal Home Loan Bank Board, will preside.
He announces that one of the committee's main discussions will center upon
the current public psychology against going into debt which is believed
to be partially responsible for the laggard demand for home construction.
"Building and loan associations are in a position and are anxious to make
credit available for half a billion dollars' worth of construction, with all
that this activity would imply toward re-employment," Mr. Friedlander
pointed out. "We are willing to co-operate in any program to induce the
people who normally use this credit to avail themselves of it at this time."
Managers and Directors of Southwestern Building and
Loan Associations to Hold Annual Conference
in Washington Next Week
The annual two-day conference of the Southeastern building and loan association managers and directors will be held
in Washington, Feb. 26-27, at the Mayflower Hotel, it was
announced Feb. 9 by the United States Building and Loan
League. Drawing between 300 and 400 delegates from
District Five of the league, including Delaware, Maryland,
West Virginia, Virginia, Kentucky, Tennessee, North Caro-
Feb. 23 1935
lina, South Carolina, Georgia, Florida, Alabama and Mississippi and District of Columbia,it was stated that the conference will devote its sessions to discussion of practical ways to
get lending programs under way,home taxation, the modernization
program, and
_
. the_ proposed co-operative educational
campaign in thrift and home ownership. George W. West, of
7771ti
Atlanta, is iT;77.1ent, and speakers willi=de Jo1
Byers of theFederal Housing Administration, Horace Russell,
general counsel to the Federal Home Loan Bank Board, and
several officials of theUnited States Building and Loan
League.
Reopening of Closed Banks for Business and Lifting
of Restrictions
_ Since the publication in our issue of Feb. 9(page 910) with
regard to the banking situation in the various States, the
following further action is recorded:
OHIO
E Depositors of the Bettsville Banking Co., Bettsville, Oh,oi
were to receive a 15% payment on their deposits on Feb. 13,
according to an announcement by the liquidator, we learn
from Associated Press advices from Tiffin, Ohio, on Feb. 6,
which went on to say:
One other payment, also of 15%, was made last September. The bank
closed in February 1933.
777ckholders of the Farmers' Bank of McCutchenville,
Ohio, closed since the bank holiday, agreed on Feb. 9 to
raise $10,000 to pay the remaining creditors, according to
Tiffin, Ohio,advices on that date,appearing in the Cleveland
"Plain Dealer." The dispatch continued:
By this move they hope to escape double liability. With $10,000 liabilities
outstanding, $30,000 In assets remain. Shareholders will take over the
assets for liquidation. They estimate the equity in these assets at slightly
less than $10,000.
PENNSYLVANIA
Dr. Luther A. Harr, State Secretary of Banking for Pennsylvania announced on Feb. 16 that Reconstruction Finance
Corporation loans insure the opening of the Capital Bank &
Trust Co. of Harrisburg in "the near future". The new
institution will succeed the Commonwealth Trust Co. and
Union Trust Co. of Pennsylvania, now operating on a restricted basis. Associated Press advices from Harrisburg,
in noting the above, continued:
Dr. Harr said the bank will be supported by $300,000 common capital,
$150,000 surplus and $15,000 undivided profits. No provision was made for
preferred shares.
In regard to the affairs of the First National Bank of New
Wilmington, Pa., closed at the time of the banking holiday
and subsequently succeeded by the Depositors' National
Bank, the Pittsburgh "Post Gazette" of Feb. 15 had the
following to say:
Ti. H. Wilson, receiver of the First National Bank of New Wilmington,
announced that authorization has been received from J. F. T. O'Connor,
Comptroller of the Currency, to pay creditors of the bank a dividend of
30%. On Dec. 1 1933, an initial dividend of 50% was paid to depositors.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
The New York Coffee and Sugar Exchange membership
of J. S. Lovering Jr. was sold, Feb. 20, to S. J. Shlenker, for
another, at $3,800, a decline of $200 from the last previous sale.
Announcement was made on Feb. 15 by One R. Kelly,
President of the Lawyers County Trust Co., New York, of
the appointment of Timothy D.Parkman as a Vice-President
and Arthur C. Bosse as an Assistant Secretary. Mr. Parkman will assume his duties at the company's main office in
the Trust Department on March 1. He will resign as a
partner of the law firm of Redding, Greeley & O'Shea.
a former Vice-President of the
Charles Miller Billings,
Guaranty Trust Co., New York, died on Feb. 19. He was
61 years old. Mr. Billings had been associated with the
Guaranty Trust from the time of its merger in 1912 with
the Standard Trust Co. until his retirement in July 1934.
He served with the bank's Fifth Avenue office consecutively
as Assistant Treasurer, Manager and Vice-President, the
latter office since 1915.
Henry A. Howe, a partner i- n D. B. Warwick & Co., New
York, members of the New York Curb Exchange, died at
his home in Orange, N. J., on Feb. 15 of a heart attack.
He was 47 years old.
At a recent meeting of the trustees of the Uncoil]. Savings
Bank, Brooklyn, N. Y., Frederick W. Bruchhauser was
elected to the Board. Mr. Bruchhauser is a Vice-President
of the Manufacturers Trust Co., New York City.
Volume 140
Financial Chronicle
An application has been filed with the New York State
Banking Department by the Flatbush Savings Bank, Brooklyn, N. Y., for permission to move its branch office at
1540 Flatbush Avenue to 1550 Flatbush Avenue.
The New York State Banking Department on Feb. 14
approved plans to reduce the capital stock of the Rushville
State Bank, Rushville, N. Y., from 850,000 at a par value
of $100 a share to $25,000 at a par value of $25 a share.
The Brockton National Bank of Brockton, Mass., announces the death on Feb. 2 of Clarence R. Fillebrown,
Chairman of the Board of Directors.
As of Feb. 9, the First National Bank & Trust Co. of
Greenfield, Mass., was authorized to maintain branches
in the Town of Northfield, Mass. and the Village of Turners
Falls, Mass.
We learn from the Hartford "Courant" of Feb. 16 that
Judge Newell Jennings of the Superior Court on Feb. 15
granted Howard W. Alcorn, receiver of the City Bank &
Trust Co. of Hartford, Conn., permission to pay a 5%
dividend, involving $741,141, to depositors in the savings
department of the institution. The paper continued:
This brings the total dividend payments in this department to 55%.
In the commercial department 60% has been paid.
The consent of State Banking Commissioner William H.
Kelly to a new plan of reorganization of the Mechanics'
Trust Co. of Bayonne, N. J., by District Court Judge Aaron
A. Melnicker and a group of depositors and mortgage certificate holders was obtained on Feb. 13. In noting the
matter, the "Jersey Observer" of Feb. 15 gave further
details as follows:
Commissioner Kelly directed them to go ahead with arrangement for
their plan which will be adopted if two-thirds of the depositors consent.
The plan, it was said. provides payment of 60% in cash and 40% in
stock of the "new company." Stock in the closed bank would be disposed
of by the new company before the payments are made.
The Citizens National Bank of Herndon, Herndon, Va.,
was chartered by the Comptroller of the Currency on
Feb. 13. The new organization is capitalized at $50,000,
half of which is preferred stock and half common stock.
Ralph R. Reed and D. L. Detwiler are President and
Cashier, respectively, of the new bank
Concerning the affairs of the defunct Commerce Guardian
Trust & Savings Bank of Toledo, Ohio, the Toledo "Blade"
of Feb. 12 had the following to say:
The closed Commerce Guardian Trust & Savings Bank was operated
at a profit of $11,445.22 from Oct. 1 1934, to Jan. 1 1935. according to an
application filed in Common Pleas Court on Feb. 11 seeking approval of
expenditures incurred in liquidation.
The quarterly report shows that the total income was $48,733.61 while
expenses were 837,288.39. Salaries of employees totaled $24,879.48:
salaries of examiners, $2,733.78, and attorneys' fees and legal
expense,
$2,604.50.
The report shows that from the time the bank closed Aug. 17 1931, to
Jan. 1 1935,the total income was $1,207,464.12 with expenditures of 8611,534.81, leaving a total profit of $595,929.31.
According to Galion, Ohio, advices appearing in "Money
& Commerce" of Feb. 16, the new First National Bank of
Mt. Gilead, Ohio, has opened for business releasing $50,000
in deposits. The new institution (which replaces the Mount
Gilead National Bank) is capitalized at $50,000 and has a
surplus of $12,500. Officers were named in the dispatch
as follows:
W. R. Bruce, President: W. B. Chileote, Vice-President: G. C. Sesler.
Cashier. and Roy Miller, Assistant Cashier.
Charles E. Wholand, formerly Vice-President of the
Union Bank of Uhrichsville, Ohio, has been named President
of the institution to succeed W. B. Stevens. Other officers
named at the same meeting of the directors were F. E. Latto,
elected Vice-President in lieu of Mr. Wholand; Beulah
Oliver, Cashier, and J. R. Carson, Assistant Cashier. Advices from Uhrichsville, appearing in "Money & Commerce"
of Feb. 16,from which this is learned, added:
The new President entered the employ of the bank 17 years ago as a
bookkeeper. Last year he was elected Vice-President and Cashier. Ile is
also President of the Robinson & Sons sower pipe company.
That depositors of the closed Union State Bank of South
Chicago, Chicago, Ill., were being paid an additional 5% of
their claims, bringing total disbursements to 273/3%, was
reported in the Chicago "News" of Feb. 12. The distribution-, it was stated, involved $85,347.
1255
With reference to the affairs of the Moline State Trust &
Savings Bank of Moline, Ill., the Chicago "News" of Feb. 9
carried the following:
Fred W. Allen has been elected President of the Moline State Trust &
Savings Bank, closed since January, 1931, and soon to be reopened. Mr.
Allen for 17 years was connected with the First National Bank here, and for
five years was manager of the foreign exchange department of Northern
Trust Co. He is now deputy receiver for banks in the Moline vicinity.
The North Shore Trust Co. of Highland Park, Ill., was
authorized by the State Auditor on Feb. 14 to pay a 33%
dividend, amounting to $133,750, to depositors, bringing
total payments to 58%, according to the Chicago "Journal
of Commerce" of Feb. 15.
From the "Michigan Investor" of Feb. 16 it is learned that
at the first meeting of the directors of the newly organized
First State Savings Bank of Otsego, Mich.. which represents
a consolidation of the Citizens' State Savings Bank and the
First State Savings Bank of that place, the following officers
were elected: William Drew, President; W. L. Derby, VicePresident, and Hal G. Vincent, Cashier. The paper also
supplied further details as follows:
The new bank has a combined capital and surplus of 855,700, four-fifths
of which is capital and the rest surplus, this being a consolidation of the
existing capital structures. The deposits are in excess of 8400,000. The
quarters of the First State Savings Bank were chosen for the new institution.
The First National Bank of Iron River, Mich., and The
Caspian National Bank of Caspian, Mich., capitalized at
$50,000 and $25,000, respectively, were placed in voluntary
liquidation on June 16. Both institutions were succeeded by
The Iron River National Bank, Iron River.
The closing last week of the private bank of L. Seymour
& Co. at Glenn, Mich., was reported in the Michigan
"Investor" of Feb. 9. The paper said:
Michigan banking's fine record of accomplishment in restoring banking
facilities was marred this week)when the private bank of L. Seymour &
Co. at Glenn, in Allegan County, closed its doors. It was explained by
Leonard Seymour, President, that the)action, which was voluntary, became necessary because)of the "frozen" condition of the assets. The
bank was organized in 1902 and had $35,000 In deposits when it closed.
W. C. Patterson, liquidating agent for the Bank of
Thomasville, Thomasville, Ga., has announced at 21% dividend payment for depositors of the bank, which closed
in 1932, according to a dispatch from that place on Feb. 14
by the Associated Press, which further said:
The dividend was made possible by a loan obtained from the Reconstruction Finance Corporation and brings the total payments to depositors
to 36%.
Effective Feb. 11, The Valley Bank & Trust Co. of
Phoenix, Ariz., a member of the Federal Reserve System,
was converted into a National institution under the title
ofiThe Valley National Bank of Phoenix. The new insTrtrition is capitalized at $1,500,000, consisting of $1,240,000
Preferred stock and $260,000 common stock. Walter R.
Bimson is President of the new bank and H. L. Dunham,
Cashier.
On Feb. 12 the Comptroller of the Currency authorized
The Anglo California National Bank of San Francisco, Calif.,
to maintain a branch in the City of San Jose, Calif.
A. P. Giannini, Chairman of the Board of Bank of America National Trust & Savings Association (head office San
Francisco) and a regent of the University of California,
has been appointed a regent of the Graduate School of
Banking to be opened June 16 at Rutgers University, New
Brunswick, N. J. The Pacific Coast will also be represented
on the board of the regents of the new institution by Ira
B. Cross, Professor of Economics at the University of California and a member of the faculty of the San Francisco
Chapter of the American Institute of Banking. An announcement in the matter added:
The professicnalization of banking, which has been advocated by Mr.
Giannini for many years, is the purpose behind the establishment of the
Graduate School of Banking. Enrollment will be restricted to qualified
bank officers.
The course of study is to cover six weeks of resident instruction at
Rutgers and 20 months of extension work under the supervision of the
faculty. The initial enrollment will be limited to 200 bank officers.
PrPayment of the second dividend of 25% tordepositors-of
the defunct First National Bank of Tlie-rD—
alles,tOre7is
announced by 0. A. Carlson, the receiver, according to the,
Portland "Oregonian" of Feb. 8, which continuing said:11P •Mr-,
▪This will mean immediate disbursemenif
than $400,000 toYclePositors. The dividend7was made'possible- bywa loan of $405,000 from the
Reconstruction Finance Corporation on assets of the closed bank.1111Mtu
1256
Financial Chronicle
The Board of Directors of the Swiss Bank Corp. (head
office Basle, Switzerland) at their meeting on Feb.6 approved
the accounts for the year 1934. After providing 3,935,924
francs (against 2,972,128 francs) for writing off bad debts
and adding the balance brought forward from the previous
year, the net profit amounts to 8,339,943 francs (against
10,856,038 francs last year).
At the annual general meeting to take place March 1, the
board will recommend payment of a dividend of 43/2%
(against 6% last year) and the carrying forward of 1,139,943
francs (against 1,100,643 francs). It will also be proposed to
merge the special reserve funds 1 and 2, amounting in all
to 37,000,000 francs and out of these funds to devote 4,000,000 francs to increasing the reserve against permanent
participations, and to transfer 10,000,000 francs to securities
account. The participation of 11,738,000 francs nominal
in the share capital of the Banque d'Escompte Suisse will
thus be completely written off.
THE CURB EXCHANGE
Curb market movements during the initial session of the
week followed the lead of the "big board" in an upward
surge on the announcement of the Supreme Court's decision in the gold clause cases, but the upswing was not
maintained, and as the week progressed many of the trading
favorites lost a large part of their gains as a result of profit
taking. Specialties attracted most of the speculative
attention, but in the early part of the week some buying
developed in the gold mining securities and oil shares, but
interest in these stocks simmered down as prices turned
toward lower levels.
Minor recessions occurred in the public utilities, industrial
and mining and metal shares during the brief session on
Saturday, but some of the specialties and oil stocks were
inclined to move to higher levels. Irregularity, due to
profit taking and week-end adjustments, was in evidence
from time to time and the market, as a whole, was slightly
lower at the close, though the changes were generally in
small fractions. The list of prominent issues showing
fractional losses included Allied Mills, Atlas Corp., Cord
Corp., Distillers Seagrams, Ltd., Ford Motor of Canada A,
Glen Alden Coal, Gulf Oil of Pennsylvania, Lake Shore
Mines, Ltd., Sherwin Williams Co., Swift & Co. and United
Light & Power.
Curb market transactions showed a sharp increase on
Monday following the Supreme Court's decision on the
gold clause cases. The turnover was approximately 284,000
shares, which was almost double the transfers of some of
the recent sessions. Prices forged ahead under the leadership of the mining and metal issues, Lake Shore showing
a gain of 33/2 points at 543/2. Chesebrough Manufacturing
jumped 5 points to 157 and smaller advances were recorded
by Alabama Great Southern, Aluminum Co. of Amenca,
American Cyanamid B, American Light & Traction, Atlas
Corp., Commonwealth Edison, Consolidated Gas of Bal
timore, Distillers Seagrams, Electric Bond & Share, Fisk
Rubber Corp., Ford Motor of Canada A, Greyhound Corp.,
Hollinger Consolidated Gold Mines, Humble Oil & Refining Co., International Mining Corp., International
Petroleum, Newmont Mining Co., Pioneer Gold Mines of
B. C., Swift International, Hiram Walker and Wright
Hargreaves.
Lower prices, due to profit taking, was the feature of
the curb market dealings on Tuesday. There were a few
active stocks in the specialties group that resisted pressure,
but the market, as a whole, was lower and there was a
very substantial drop in the turnover for the day. The
best gain of the session was recorded by Fajardo Sugar,
which jumped 4 points on a small turnover. Steel Co. of
3 points to 47. On the other
Canada surged forward 5%
hand, the recessions included such market favorites as
Allied Mills, Aluminum Co. of America, American Gas &
Electric corn., Atlas Corp., Carrier Corp., Commonwealth
Edison, Electric Bond & Share, Ford Motor of Canada A,
Gulf Oil of Pennsylvania, Hollinger Consolidated Gold
Mines, Lake Shore Mines, Ltd., Sherwin Williams Co.,
Swift & Co. and Hiram Walker.
Except for a few scattered gains among the less active
stocks, prices on the Curb Exchange again tumbled downward on Wednesday, the transactions for the day dropping
below the turnover of the preceding session. The weak
shares included Duke Power, which slipped downward
234 points to 41; General Tire & Rubber, which yielded
Feb. 23 1935
2 points to 65; Newmont Mining, which fell off 2 points
to 3732; Pittsburgh Plate Glass, which dipped 2 points to
54, and United Gas pref., which slipped back 23% points to
37. Losses of minor fractions predominated throughout
the list.
Trading on the Curb Exchange was in somewhat smaller
volume on Thursday, and while there were a few scattered
gains, the general trend was toward lower levels. As compared with Friday of last week, prices were lower on Thursday
night, Allied Mills closing at 14% against 15 on the preceding
Friday; Aluminum Co. of America at 433/2 against 4434;
American Gas & Electric at 173/2 against 193/2; American
Light & Traction at 83/2 against 9, American Superpower at
4
3 against 1; Central States Electric at 3A against 7-16,
Commonwealth Edison at 54 against 55; Consolidated Gas
of Baltimore at 58 against 5834; Creole Petroleum at 113/2
against 113
4; Electric Bond & Share at 5 against 53/2; Ford
of Canada A at 303/2 against 303/8; Glen Alden Coal at
193
%; Gulf Oil of Pennsylvania at 5634 against
% against 203
563/8; National BeIlas Hess at 13
4 against 2; Niagara Hudson
at 3 against 334; Sherwin Williams Co. at 873/2 against 89;
and Swift & Co. at 1834 against 18%.
The curb market, the stock exchange and all commodity
markets were closed on Friday in observance of Washington's
Birthday.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE
Week Ended
Feb. 22 1935
Stocks
(Number
of
Shares).
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Sates at
New York Curb
Exchange.
Bonds (Par Value).
81,990 $2,300,000
284,110 5,019,000
186,268 5,843,000
188,890 6,359,000
150.540 4.766,000
IIOL1 DAY
$102,000
45,000
57,000
12,000
67,000
861,798 $24,287,000
283,000
Week Ended Feb. 22
1935.
$24,797.000 $19,959,000
Total.
---$51,000 $2,453,000
28.000 5,092,000
41,000 5,941,000
66,000 6,437,000
41,000 4,874,000
HOLI DAY
$227,000 $24,797,000
Jas. Ito Feb. 22
1934.
1935.
1934.
Stocks—No, of shares.
861,798
1,657,556
Bonds
Domestic
$24,287,000 $18,307,000
Foreign government_ _
283,000
694,000
Foreign corporate
227,000
958.000
Total
Foreign
Corporate.
Foreign
Domestic. Government
5,955,553
16,310,050
$176,781,000
3,866,000
2,096,000
$179,220,000
8,283,000
7,954.000
$182,743,000
$195,457,000
COURSE OF BANK CLEARINGS
Bank clearings this week will show a decrease as compared with a year ago. Preliminary figures compiled by us,
based upon telegraphic advices from the chief cities of the
country, indicate that for the week ended to-day (Saturday,
Feb. 23) bank exchanges for all cities of the United States
from which it is possible to obtain weekly returns will be
6.0% below those for the corresponding week last year.
Our preliminary total stands at $4,541,166,276, against
$4,828,915,150 for the same week in 1934. At this center
there is a loss for the week ended Thursday of 13.8%. Our
comparative summary for the week follows:
Clearings—Returns by Telegraph
Week Ending Feb. 23
1935
1934
Per
Cent
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San FrancisCo
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
62,242,806,239
157.829,214
226,000,000
125,000,000
59,990,118
50,800,000
85,200,000
61,732,835
55,175,916
40,649,632
32,993,318
27,469,000
$2,601,447,593
137,708,042
186,000,000
119,000,000
49,160,758
47,300,000
69,643,000
52,999,314
48,934,863
38,492,556
33,879,819
30,270,000
—13.8
+14.6
+21.5
+5.0
+22.0
+7.4
+22.3
+16.5
+12.8
+5.6
—2.6
—9.3
Twelve cities, 5 days
Other cities, 5 days
$3,165,646,272
485,325,625
$3,414,835,945
435,746,430
—7.3
+11.4
Total all cities. 5 days
All cities, 1 day
$3,700,971,807
840,194,379
$3,850,582,375
978,332,775
—3.9
—14.1
$4.541.166.276
S4.820.916.i so
—6.0
Total all cities for week
Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day inasmuch as the week ends to-day
(Saturday) and the Saturday figures will not be available
until noon to-day. Accordingly, in the above the last day
of the week in all cases has to be estimated.
In the elaborate detailed statement, however, which we
present further below, we are able to give final and complete
results for the week previous—the week ended Feb. 16. For
that week there is an increase of 5.2%, the aggregate of
clearings for the whole country being $4,904,103,955, against
$4,659,868,764 in the same week in 1934.
Outside of this city there is an increase of 8.9%, the
bank clearings at this center having recorded a gain of 3.1%.
We group the cities according to the Federal Reserve districts in which they are located, and from this it appears
that in the New York Reserve District, including this city,
the totals show an improvement of 3.6%, in the Boston
Reserve District of 0.1% and in the Philadelphia Reserve
District of 11.0%. The Cleveland Reserve District has
managed to enlarge its totals by 7.1%, the Richmond
Reserve District by 1.4% and the Atlanta Reserve District
by 6.6%. In the Chicago Reserve District there is a gain
of 19.2%, in the St. Louis Reserve District of 3.2% and in
the Minneapolis Reserve District by 3.8%. In the Kansas
City Reserve District the increase is 10.7%, in the Dallas
Reserve District 1.9% and in the San Francisk,o Reserve
District by 6.8%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS
Week Ended Feb. 16
Clearings al-
1934
1935
Week End. Feb. 16 1935
Inc.or
Dec.
1933
1932
Federal Reserve Diets.
1st Bo55on_ _ _ _12 cities
2nd New York__12 "
3rd Philadelpla 9 "
4111 Cleveland__ 5 "
5th Richmond.6 "
6th Atlanta. __ _10 "
7th Chicago _ _ _19 "
8815 St.Louis._ _ 4 "
9th Minneapolis 6 "
10th Kansascaw "
11th Dallas
12th San Fran_ _12 "
I
$
$
$
%
283,298,426
207,163,128 +0.1
197,580,735
207,260,576
3,137,418,290 3,028,709,97 +3.6 3,086,080,490 3,630,217,332
319,498,314
288,667,830
259,243,308 +11.0
287,879,234
234,710,313
181,495,985
188,352,746 +7.1
201,795,215
92,492,212
113,152,861
92,667,632 +1.4
93,966,676
96,026,206
106,455,489 +6.6
80,695,019
113,478,956
383,606,681
291,396,435 +19.2
184,876,221
347,487,111
81,479,689
107,381,957
107,043,286
104,087,974 +3.2
74,325,769
68,085,11 +3.8
51,421,098
70,675,128
113,359,855
114,471,315
102,374,350 +10.7
77,703,455
33,669,657
46,631,389
46,187,443
45,782,16 +1.9
165,550,45 +6.8
133,499,428
176,770,568
204,939,200
110 cities
Total
Outside N. Y. City
4,904,103,955
1,863,436,311
22 nItia•
0,11AS ni 7
4,659,868,764 +5.2
1,711,167,575 +8.9
4,489,661,819
1,4E48,661,768
5,807,677,146
2,091,172,214
-Li o
'ii, [VP, n...•
nee .n. eee
*me 1.1.7 1,
Week Ended Feb. 16
Clearings id
1935
1934
Inc. or
Dec.
1933
1932
$
$
%
First Federal Reserve Dist rict-Boston601,267
503,573 +19.4
laine-Bangor _
1.376,343
1,479,500 -7.0
Portland
181,000.000 182,015,332 -0.6
iv[ass.-Boston
560,599 +16.8
Fall River_ _ _.
655.025
Lowell
335,650
267,273 +25.6
696,234
681,670 +2.1
New Bedford_
Springfield .. _ _.
2,381,057
+0.4
2,372,093
1,231.203
1,207,443 +2.0
Worcester
6,833,620
onn.-Hartford
7,390,922
+8.2
2,767,660
3,256,506 -15.0
New Haven. _
7,646,000 +10.9
.'.0.-Providence
8,476,700
+2.6
339,519
348,515
l.H.-Manches'r
331,914
1,726,171
170,532,627
541,557
233,624
556,719
2,663,579
1,592,668
9,133,019
3,264,050
6,670,700
334,107
385,716
2,351,812
249,423,695
791,767
425,580
691.177
3,501,920
2,022,155
8,744,252
5,747,527
8,810,900
401,925
+0.1
197,580,735
283,298,426
Total (12818169)
207,260,576
207,163,128
$
$
Second Feder al Reserve D Istrict-New York5,778,695
6,126,415 +151.9
9,608,103
15,431,791
/. Y.-Albany
1,242,756
782,071 +16.0
737,039
Binghamton._
907,220
22,909,144
+3.3
29,900,000
24,969,066
Buffalo
25,800,000
769,481
404,593 +10.2
715,036
3mira
445,828
654,835
Jamestown
856,280
429,176 +13.3
486,440
+3.1 3,001.000,051 3,716,504,932
New York_ _
3,040,667,644 2,948,701,189
7,393,754
5,026,702
5,638,625 -3.5
Rochester
5.420,103
2,764,732
4,157,505
3,269,008 +0.8
Syracuse
3,293,582
2,579,210
2,142,045
1,909,211
1,971,721 -3.2
1ona-Stanford.
520,498
486,877
I. J.-Montclair
396,846
401,321
+1.1
30,500,258
14,691,909 +19.0
16,215.108
Newark
17,479,309
30,013,963
23,820,818
Northern N. J.
21,329,353 +18.0
25,175,841
Total(12 cities) 3.137,418,290 3,028,709,072
+3.6 3,086,080,490 3,830,217.332
Third Federal Reserve Dis trict-Phila del phi a298,896
'fr.-Altoona_ _ _
354,569
433.700 -18.2
b
Bethlehem_ _ _ _
a460,600
a2,340.182
Chester
220,472 +15.8
282,738
255,241
Lancaster
716,483 +21.6
859,560
871,396
Philadelphia
278,000,000 241,000,000 +15.4 267,000,000
Reading
934,845
1,440.932
+0.1
936.220
Scranton
2,105,801
2,193,476 -4.0
2,175,215
Wilkes-Barre..
1,322,410 -37.0
1,281,693
832,595
York
971.922 +10.1
968,796
1.070,412
4. J.-Trenton..
11,450,000 -69.8
3,453,000
14,360,000
Total (9 cities).
259,243,308 +11.0
593,562
a609,129
551,398
1,317,568
302,000,000
2,647,418
2,924,365
2,333,449
1,379.554
5,751,000
288,667,830
319,498.314
Fourth Feder al Reserve D istrIct-Clev eland-3hio-Akron._
c
c
c
c
e
c
c
Cantonc
50,681,927 -12.0
Cincinnati_ _ _ _
44,618.302
39,071,908
Cleveland
57,062.039
53,281.329 +7.1
65,682,010
Columbus
9,651,700
8,678.400 +11.2
7,856,800
Mansfield
936,774 +11.0
733,063
1.039,375
• Youngstown
b
b
b
b
Pa.-Pittsburgh _
89,422,799
74,774,316 +19.6
68,152,204
c
c
59,147,815
76,659,508
8,562,900
556,145
b
89,783,945
Total (5 cities).
287.879,234
188,352,746
+7.1
181,495,985
234,710,313
Fifth Federal Reserve Dist act-Richm ondW.Va.-Ilintlon
127,776 -7.3
118,479
Va.-Norfolk_
2.587,000
1,942,000 +33.2
28,269,943 -4.1
Richmond_ _
27,119,363
862.644
661.644 +30.4
S.C.-Charleston
49,140,294 -1.9
48,222,696
Md.-Baltimore_
12,525,975 +20.2
15,056,494
D.C.-Washing'n
301,598
1,898,000
23,649,043
602,205
50.324,930
15,716,436
514,207
2,490,402
27,923,745
875,918
61.951,912
19,396,677
+1.4
92.492,212
113,152,861
Sixth Federal Reserve Dist rict-Atlent a2,180,431 +18.1
2,575.131
Tenn.-KnoxvIlle
11,373,856 +15.1
13,094,089
Nashville
+3.6
39,000,001
40,400,000
Ga.-Atlanta___
1,173.875 -30.2
819,704
Augusta
683,387 +0.7
Macon
688,406
11,215,000 +26.4
14,175,000
Fla.-Jaclenville.
13,148,086 +15.9
15.244,738
A1a.--Elirm'ham.
927,257 +14.1
Mobile
1,058,204
b
b
Nliss.-Jackson._
b
131,884 +56.5
206,452
Vicksburg
26,621.712 -5.3
25,217,232
La.-NewOrleans
2,846.380
7.918.565
25,500,000
620,478
354.756
9,487,466
8,464,202
750,539
b
163,332
24,589,301
4,107,015
10,765,935
28,900,000
811,999
502,107
11,299,507
9,822,025
1,104 821
b
116.783
28.596,014
Total(6 cities).
Total(10 cities)
201,704,215
93.966,676
113,478,956
92,667,632
106,455,489
+6.6
80,695,019
96,026,206
1933
1932
$
$
$
$
%
Seventh Feder al Reserve D strIct-C h i cago56,683 +10.6
62,678
Mich.-Adrian_ _
473,889 -4.3
453,582
Ann Arbor_ _
61,649,119 +28.2
79,016.372
Detroit
1,429,806 +32.4
1,893.556
Grand Rapids_
694,063 +38.3
959,585
Lansing
608,926 +13.5
691,198
Ind.-Fr. Wayn
10.127,000 +23.0
12,454,000
Indianapolis_
889,217 -15.2
754,035
South Bend...+9.3
3,147,369
3,439,281
Terre Haute_
13,737,240 +19.1
16,356,697
WLs.-Milwauk
256,107 +189.8
742,092
Ia.-Ced. Rapids
4,851.206 +20.1
5,824.400
Des Moines_
+8.1
2,262,799
2,446,891
Sioux City_
b
b
b
Waterloo
388,272 -36.1
248.177
1:11.-Bloom'gton
217,496,885 186,308,993 +16.7
Chicago
480,638 +20.2
577,551
Decatur
2,617,036 -3.3
2,531,026
Peoria
+29.1
581,629
751,115
Rockford
836,443 -5.8
787,990
Springfield _ _ _
b
b
b
b
b
864.895
10,460,000
946,083
3,125,373
10.623,445
b
4,115,251
1,783,434
b
484,115
148,584,736
368.390
2,069,743
520,958
929,798
169,236
584.649
77.348.163
2,930,016
1,744,900
1,272,086
11,569,000
1,473,746
3.160,488
16,831.683
825,449
5,548,820
2,815,789
b
1,139,318
250,206,253
518,077
3,122,643
821,207
1,725.158
291,396,435 +19.2
184,876,221
383,808,681
Eiehth Feder I Reserve Dia trict-St.Lo <flab
b
b
Ind.-Evansville
61.800,000 +5.5
65,200,000
Mo.-St. Louis_
+0.7
26,749,998
26,942,521
KY.-Louisville_
15,234,976 -2.2
14,895,436
Tenn.-Memph
b
b
b
Ill -Jacksonvill
303,000 +135
344.000
Quincy
b
53,000,000
18,949,559
9,030,130
b
500,000
b
70.900.000
22,908,973
12,453.298
b
781,015
+3.2
81,479,689
107,043,286
Ninth Festers Reserve Dis trIct-Minn eapolls1.437,588
+1.6
1,649,339
1,675,420
Minn.-Duluth.
34,753,810
44,658,040 -0.2
44,560,388
Minneapolis_ _
12.871,397
+7.3
19,535,118
20,958,667
.
Paul
St.
419,922
+6.4
420,046
446,895
S. D.-Aberdeen.
263,482
354,575 +14.4
405,799
Mont.-Billings .
1,674,899
+79.0
1,467,995
2,627,959
.
Helena
2,421,590
50,544,474
18,983,796
614,831
350,127
1,410,951
51,421,098
74,325,769
Tenth FestersI Reserve Dis trict-Kens as City37,655
63,213 +49.9
94,729
Neb.-Fremont_ 92,947
85,067 +57.8
134.273
Hastings
1,407,034
2,248,939 -8.2
2,065,637
.
Lincoln
16,293,526
28,904,538 -11.9
25.450,791
Omaha
1,294.370
1,816,840 +21.8
2,212,161
Kan.-Topeka.__.
3,071,204
2,841,072 -5.3
2.691,366
Wichita
52,281,368
62,957,981 +22.2
76,964,231
Mo-Kansas Clt y
2,161,211
2,596,771 -1.0
2,571,748
St. Joseph_ .
578,003
431,990 +34.8
582,380
Colo.-Col. Spgs.
486,137
+38.5
427,939
592.539
Pueblo
162.317
142,159
2.368,955
26,897,057
1,867,818
4,324,092
73,849,379
2,950,042
907,911
1,001,585
102,374,350 +10.7
77,703,455
114,471,315
Eleventh Fed e ral Reserve District-D alias824,156 +32.4
1,091,218
Texas-Austin_.
+2.7
35,121,843
36,086,764
Dallas
4,977,901 -15.2
4,219,166
Ft. worth._ _ _
+14.0
2.616,000
2,983,000
.
Galveston_ _
2,242,265 +0.4
2,251,241
La.-Shreveport _
828,734
24.667,928
3,927,138
1,910,000
2,335,857
864,932
33,475,121
5,817,668
3,231,000
2,798,722
+1.9
33,669,657
13
46,187,4,
Fraudi see-17.546,625
+6.8
3,952,000
+3.7
280,511
+36.5
13.467.748
+18.1
7.472,438
+33.0
2.545.149
+2.1
2,662,733
-11.8
2.556,877
+44.1
80,329,582
+2.3
1,084,331
+21.2
804.338
+3.9
797,096
+13.7
26,121,538
7,055,000
500,998
20,545,220
10,851,433
3,594,821
4,583,248
5,471.269
121,879,836
1,863,882
1,224,658
1,247,299
133,499,428
204,939,200
347,4517,111
Total (4 cities)
107,381,957
Total (6 cities).
We now add our detailed statement showing last week's
figures for each city separately for the four years:
inc. or
Dec.
1934
1935
Total(19 cities
(lanai's
1257
Financial Chronicle
Volume 140
104,087,974
Total (10 cities) 113,359,855
.
Total(5 cities)
+3.8
68,085,113
70,675,128
45,782,165
46,631,389
Twelfth Fed r al Reserve 1)istrict-San
20,273.403
Wash.-Seattle_. 21,652,004
5,967.000
6,189,000
_
Spokane
384,038
524,287
Yakima
18,048,178
Ore.-Portland _. 21,312,458
8,325,810
11,069,212
Utah-S. L. Cit y
2,821,462
2,879,792
Calif.-L.Beach _
3,000,156
2,646,967
Pasadena_ _ _
2,236,142
3,222,689
_
_
Sacramento
San Francisco _ 103,443,305 101,141,369
1,410,295
1,709,570
San Jose
891,902
926,297
Santa Barbara _
1.050,697
_
1,194,987
Stockton
Total(12 eft! I) 176,770,568 165,550,452
Grand total (1 0
_ 4,904.103,955 4.659,868.764
cities)
+6.8
Outside New To k 1_863_436_311 1.711.167.575
+8.9 1.488.661.768 2.091.172,214
+5.2 4,489.661,819 5,807,677,146
Week Ended Feb. 14
Clearings at1935
1934
1933
1932
CanadaToronto
Montreal
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William _
New Westminster
Medicine Hat-Peterborough.._ _
Sherbrooke
Kitchener
Windsor
Prince Albert.
Moncton
Kingston
Chatham
Sarnia
Sudbury
$
85,698,962
65.979,981
23,380,930
12,136,800
3,702,041
3,051,534
1,970,486
3,028,802
3.876.509
1,289,561
1,298,586
1,830,152
3,199,068
2,530,702
269,455
378,517
1,141,553
393,064
686,662
456,398
421.777
159,112
481,068
540,522
770.324
1,995,323
224.513
597,017
431.060
447,154
320.841
655.743
$
88,154,518
63,284,014
22,798,858
12,408,494
3,158,464
2,493,644
1,625,773
3.007,811
3,531,021
1,405,62
1,317,12
1,936,35
3,118,61
2,052,32
222,99
323,11
869,652
354,669
611,065
427,168
394,704
143,242
515,543
365,567
841,643
1,733,141
241.512
491,816
383.462
343,539
288,797
583.110
%
-2.8
+4.3
+2.6
-2.2
+17.2
+22.4
+21.2
+0.7
+9.8
-8.3
-1.4
-5.5
+2.6
+23.3
+20.8
+17.1
+31.3
+10.8
+12.4
+6.8
+38.4
+11.1
-6.7
+47.9
-8.4
+15.1
-7.0
+21.4
+12.4
+30.2
+11.1
+12.5
$
81,261,081
66,528,196
22,208,484
10,886,919
3.013,457
3,079.459
1,478,684
2,689,807
3,862,317
1,387,214
1,040,970
2.171,103
2,188,469
1,791,052
215,118
246.314
988,057
323,030
610.304
383,528
303,500
115,175
414,378
434,394
710,624
1,479.834
142,673
452,574
422.434
388,377
273,002
437,244
$
67,870,843
76,061,446
31,316,339
15,781.123
5.165,932
3,832,376
2,046.029
3,428,039
5.143,621
1,649,035
1,309,547
2,390,779
3,496,621
2,769,693
285,426
300.876
1,285,324
541.280
622,602
496,434
455,740
141,022
602,225
621,166
732,051
2,204.910
238,196
618,872
481,594
408,815
374,901
430,831
Total(32 cities)
223,345.217
219.427,370
+1.8
211,927,742
233,103.688
a Not included in totals.
functioning at present.
ate. Or
b No clearings available.
c Clearing House not
1258
Financial Chronicle
THE ENGLISH GOLD AND SILVER MARKETS
We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of
Feb. 6 1935:
GOLD
The Bank of England gold reserve against notes amounted to £192,434,126
on Jan. 30, as compared with £192,403,692 on the previous Wednesday.
In the open market, large amounts of bar gold were offered, about
£2,800,000 being disposed of during the week.
The majority of operators again refrained from making shipments to
New York as uncertainty still obtains pending the decision of the United
States Supreme Court regarding the "gold clause." The decision was
expected to be made known on Feb. 4 but was postponed; although no
definite date has been fixed for the announcement it might be made at
any moment.
Quotations during the week'
Equivalent Value
Per Fine Ounce
of £ Sterling
Jan. 31
142s. Id.
us. 11.50d.
Feb. 1
142s. 4d.
Us. 11.25d.
Feb. 2
142s.
us. 11.58d.
Feb. 4
342s. ld.
us. 11.50d.
Feb. 5
142s. 1%d.
us. 11.46d.
Feb. 6
141s. 10%d.
us. 11.71d.
Average
142s. 1.0d.
Its. 11.50d.
The following were the United Kingdom imports and exports of gold
registered from mid-day on the 28th ultimo to mid-day on the 4th instant:
Imports
Exports
British South Africa
£1.147,104 U. S. A
12,779,986
Tanganyika Territory__ _
6,999 France
577,744
British India
872,172 Belgium
41,825
British Malaya
10,030 Netherlands
13,600
Australia
40.522 Other countries
2,209
New Zealand
19,794
Netherlands
337.880
France
1,188,783
Belgium
13.650
Venezuela
13,460
Other countries
26,262
£3,676,656
£3,415,364
The S.S. "Maloja" which sailed from Bombay on the 2nd Instant carries
gold to the value of about £839,000, of which £757,000 is consigned to
London and £82,000 to Amsterdam.
SILVER
The market continued to be affected by the nervousness obtaining in
other markets and owing to further reselling, prices showed a tendency to
sag. Buyers showed more reluctance and although some purchases were
made for America these were less in evidence during the past week. Speculators and the Indian Bazaars resold, but the latter have also made fresh
purchases; China also resold, but business with this quarter was restricted
owing to the Chinese New Year holidays.
The market is rather quiet and it is possible that the delay in the announcement of the gold clause decision is causing a little hesitancy.
The following were the United Kingdom imports and exports of silver
registered from mid-day on the 28th ultimo to mid-day on the 4th instant:
Imports
Exports
British India
£17,760 U. S. A
£1,261,302
Australia
20,339 Canada
22,330
New Zealand
x26.800 Italy
10,819
British South Africa
5.538 Sweden
2,200
Germany
12,334 Germany
1,079
France
12,913 Other countries
2,382
Belgium
7.190
Irish Free State
x3,500
£106,374
£1.300.112
x Coin at face value.
Quotations during the week:
IN LONDON
IN NEW YORK
-Bar Silver per Os. Std.Cash Del. 2 Mos. Del.
(Per Ounce .999 Fine)
247-16d. 249-18d. Jan.30
Jan. 31
54 5-16 cents
Feb. 1
24 5-16d. 24 7-16d. Jan.31
53 15-16 cents
Feb. 2
24 5-16d. 24 7-16d. Feb. 1
53 cents
24 7-16d. 24 9-16d. Feb. 2
Feb. 4
53% cents
Feb. 5
24 7-16d. 24 9-16d. Feb. 4
54 1-16 cents
Feb. 6
24 5-16d. 24 7-16d. Feb. 5
54% cents
Average
24.500d.
24.375d.
The highest rate of exchange on New York recorded during the period
from the 31st ultimo to the 6th instant wan $4.8931 and the lowest 14.86%.
INDIAN CURRENCY RETURNS
(In Lacs of Rupees)Jan. 22
Jan. 31
Jan. 15
Notes in circulation
18,358
18,367
18,399
Silver coin and bullion in India
9,386
9,425
9,457
Gold coin and bullion in India
4,165
4,155
4,155
Securities (Indian Governmeoti
3.382
3,363
3,363
Securities (British Govvronivor.,_
1,435
1,424
1,424
Stocks in Shanen on tee ln,d instant consisted of about 15,900,000
lunces in sycee, '255 IS 0030 dollars and 44,400,000 ounces in bar silver, as
compared with about 17,200.000 ounces in sycee. 253,000,000 dollars and
44.000,000 ounces in bar silver on the 26th ultimo.
Statistics for the month of January last are appended:
-Bar Silver per Oz.Std.Bar Gold
Per Oz. Fine
Cash Deify. 2 Mos. Deliv.
Highest price
24%d.
142a. 4d.
24%d.
Lowest price
140s. 10%d.
24 7-16d.
24 5-16d.
Average
24.7091d.
24.5841d.
1418.956d.
ENGLISH FINANCIAL MARKET-PER CABLE
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as follows the past week:
Sat..
Mon.,
Tues.,
Feb. 16
Feb. 18
Feb. 19
Silver, p. oz.__ 24 15-16d. 24 13-166. 25d.
Gold,p.fineoz_1420.8%d. 1428. 7d. 1428. 10d.
Consols,2%%. Holiday 89%
89%
British 335%
W. L
Holiday 107%
107%
British 4%
Holiday 119
1960-90
119 ,.
Wed.,
Thurs.,
Feb. 20
Feb. 21
25416d.
2534cl.
1498.9%d. 1428.11d.
89%
8831
107
106%
119
118%
Frt.,
Feb. 22
U.S.
HOLIDAY
The price of silver in New York on the same days has been:
Silver in N. Y.,
(foreign) peoz. (eta.) ....- 54%
U.S. Treasury_f50.01
U. S. Treasury
I(newly mined) 6434
54%
50.01
55%
50.01
55%
50.01
55%
50.01
64%
64%
64%
'434
us.
BOLLDAY
Feb. 23 1935
Prices on Paris Bourse
Quotations of representative stocks as received by cable each day
of the past week
Feb. 16 Feb. 18 Feb. 19 Feb. 20 Feb. 21 Feb. 22
Francs Francs Francs Francs Francs Francs
Bank of France
10,500 10,300 10,400 10,500 10,400
Banque de Paris at Des Pays Bas
923
887
897
908
Banaue dL'Union Parisienne__ _
492
483
483
487
Canadian Pacific
196
189
199
193
- iio
Canal de Suez
18,800 17,900 17,900 17,900 17,800
Cie Distr. d'Electricitie
1,146
1,137 1,145 1,160
Cie Generale d'Electrieltle
1,260 1,220 1,240 1,250 1-,240
Cie Generale Transatiantigue ------24
23
24
24
Citroen B
67
65
65
67
_
Comptoir Nationale d'Escompte
986
980
983
976
Coty S A
85
78
83
81
--§F)
Courrieree
244
236
240
242
___ _
Credit Commercial de France
594
588
597
601
Credit Lyonnalte
1,800 1,760 1,780 1,790 1,i()
Eau: Lyonnalte
2.180 2,180 2,190 2,170 2,210
Energie Electrique du Nord....
510
505
500
500
_ _ _.
Energie Electrigue du Littoral...
729
718
721
731
Kuhlmann
526
512
512
516
L'Air Liquide
750
730
740
750
-755 U.S.
Lyon (P L NI)
999
995
998
990
____ BollNord RY
1,270 1,260 1,270 1,270day
Orleans Sty
464
464
464
465
-iiig
Pathe Capital
45
45
45
45
___ _
Pet:Mine;
862
844
846
847
__
Rentes, Perpetual 3%
82.40 82.00 82.10 82.80 82.60
_Rentes 4%, 1917
88.40 87.90 88.00 88.90 88.80
Rental 4%. 1918
87.30 86.90 87.10 87.90 87.60
Rentes 444%, 1932 A
92.40 92.10 92.30 92.90 92.80
Rentes 434%, 1932 R
93.30 93.10 92.40 03.90 93.80
Rentes 6%, 1920
118.50 117.80 118.00 118.00 119.10
Royal Dutch
1,420 1,410 1,440
1,430 1,420
Saint Gobatn C & C
1,115 1,095 1,128
1,150
Schneider & Cie
1,390 1,386
1,400 1,395
Societe Francalse Ford
48
46
47
47
47
Societe Generale Fonclate
51
51
52
50
.......
Societe lyonnaise
2,186 2,185 2,185 2,200
____
Societe Marseillaise
585
585
585
585
____
Tubize Artificial Silk pre(
66
62
63
63
_ _ __
Union d'Electrieltle
625
620
626
624
Wagon-Lits
65
64
63
_
65
The Berlin Stock Exchange
Closing prices of representative stocks as received by cable
day of the past week
Feb. Feb. Feb. Feb. Feb.
16
18
19
20
21
Per Cent of Pa
AllgemeineElektrizimeta-Gaselischaft(AEO) 30
30
30
30
29
Berliner Handels-Gesellsehaft(5%)
115 114 113 113 113
Berliner Kraft U. Licht(10%)
140 139 139 139 139
Commetz-und PrIvat-Bank AG
83
82
82
83
84
Deosauer Gas(7%)
128 128
128 128 128
Deutsche Bank und Disconto-Gesellechaft 83
82
82
83
84
Deutsche Erdoel (4%)
09 100 100 100 100
Deutsche Reichebahn (German Rye) pt(7%)119 119 119
119
119
Dresdner Bank
83
82
82
83
84
Parbenindustrie I 0(7%)
141
141
141
141
140
Gesfuerel (5%)
115 114 114 115 115
Hamburg Electric Werke(8%)
127 126 126
127 129
Hapag
30
30
30
31
31
Mannesmann Roehren
78
78
78
78
77
Norddeutscher Lloyd
34
34
34
34
34
Reichsbank (12%)
164 164 162 163 163
Rhelninche Brauntohle (12%)
205 ___
204 203 207
Salzdetfurth (735%)
148 147
147
Siemens & Halske(7%)
145 146
1451
147
47
CURRENT
each
Feb.
22
U.S.
Bollday
NOTICES
-McDonald-Callahan-Richards Co., security dealers with headquarters
In Cleveland, have announced that their corporate name has
been changed
to McDonald-Coolidge & Co. Under the new name they
will continue
to operate their established offices in Cleveland, Cincinnati
and Dayton.
C. B. McDonald, who in 1922 was instrumental in organizing
the house.
which ranks among the most important underwriters and
distributors of
municipal and corporate securities in Ohio, remains as President
of the
company. He has been active in the Ohio investment market
for 16 years.
J. H. Coolidge,IVice-President, will be in charge of sales. Other
officers are
Herman J. Sheedy, Secretary: A. 11. Warner, Treasurer, and
Harrison B •
MacLaren, Assistant Vice-President. Mr. Sheedy and Mr. Warner
are wellknown in the field of investment research and analysis, while
Mr. MacLaren
will be in charge of the trading department.
The Cincinnati office of McDonald-Coolidge & Co. will be
in charge of
Glenn 0. Huron, who has been identified with Cincinnati
investment circles
for 15 years. The McDonald-Coolidge offices are located In the
Williamson
Building, Cleveland; Union Central Building, Cincinnati,
and Winters
Bank Building, Dayton.
-Harrison,O'Gara & Co., Chicago,investment firm, have
expanded their
activities by opening a brokerage department, coincident with
the admission
of Gregory P. Maloney, member of New York Stock
Exchange, to general
partnership. The firm will now hold memberships on the
"big board"
and the Chicago Board of Trade. Paine, Webber & Co.
will be their
correspondents. The firm was organized in 1932 by Carter H.
Harrison Jr..
Alfred O'Gara and associates, to continue the retail securities
business
established by Bonbright & Co., when the latter firm withdrew
from retail
sales activities in the Chicago territory. The new partner
was form erly
with Block, Maloneyl& Co.
-First of Michigan Corp., Investment banking firm with headquarters
InTetrolt, announce the removal of their Chicago office tcilarget quarters
in the Field Building.
Pau L. Sipp, Vice-President and formerly resident manager In
San
Mnciso, is now associated in the Chicago office with Hempstead W ashacne Jr.. Vice-President, the firm having discontinued its San Francisco
Mice.- Mr. Sipp will continue to devote considerable part of his time
to
the firm's Pacific Coast activities.
P'-William F. WeedTand1FredICKTerbstThave formed the firm of
WeedHerbst & Co.."Union Guardian Building, Detroit, to conduct a general
investment business. Both men have long experience In the bond investment business in Detroit, Mr. Weed having served for nine years as manager
of the bond department of Nicol-Ford & Co., and for three years In the
same capacity with Fenner & Beane. Mr. Herbst was assistant manager
of the bond department of the First National Bank for 18 years.
-Ellhu G. Smith and James A. Colo have joined the retail sales department of Amott, Baker 8:. Co., Inc. Mr. Colo will represent the company in
southern Queens and Nassau counties while Mr. Smith, formerly with
Hindu) Bros. & Co., will be the respresentative for Bridgeport and the
surrounding Connecticut territory. George F. 11111, formerly with Lee,
Higginson, is now in the company's trading department.
Volume 140
Financial Chronicle
—Coincident with the association of C. W. Riley, T. J. Fitzpatrick. P.
D. NowIan, G. H. M.Libby and Robert S. Burns with their firm, the New
York office of Blyth & Co.,1Inc,.announce that their:trading department]will
henceforth be more active in New York bank and the leading insurance
company stocks. All of the above-mentioned individuals were previously
with Clinton Gilbert & Co.
—Distributors Group.Inc.,63 Wall St., New York City, has published an
analysis of the leading management investment companies, showing the
changes in their common stock portfolios during 1934. the status of their
outstanding bonds as of December 31, 1934, and other important financial
data, based upon their latest:official statements, as prepared by Arthur A.
Winston, Statistician
—Robinson, Miller & Co.. Inc., announce the association witn them of
Hugh C. Wallace and the organization under his management of a municipal
bond department. Mr. Wallace was for the past four years a member of the
firm of Wallace & Co., dealers in municipal and corporation bonds, and
previouslyawaslconnected with Estabrook Stro.
—1'rust1Co. of North`America, 115 Broadway, New York, has issued a
bulletin setting forth some of the effectslof the delisting of some 700 securities listed on the New York1ProducelExchange, which will be stricken
from the list after Feb. 28 and, accordingly, become unregistered securities
under the Securities Exchange Act.
—Announcement is made of thciformationlof'Herbert Filer Co., with
Offices at 120 Broadway, New York, toldeallinlimunicipal, joint stock,
territorial and Federal Land Bank bonds. W.J. Connor and Harry Revits
are,associated wiht Mr. Filer in the new company.
—BodellN Co. announce too appointment of Howard M.Biscoe Jr., as
Manager of their Boston office. Mr. Biscoe was formerly associated with
Lee,tHigginsonISMo. and Spencer Trask & Co. and is algraduate of Yale
University, class of 1924.
—Leslie C. Bruce and Vernon E. Lohr announce the formation of a copartnrship under the firm name of Bruce & Lonr, members :New ;York
Curb Exchange. The new firm will make its offices at 54 Wall Street,
New York.
NATIONAL BANKS
The following information regarding National banks is
from the office of the Comptroller of the Currency, Treasury
Department:
CHARTERS ISSUED
Capital
Feb. 11—The Valley National Bank of Phoenix, Phoenix, Ariz-41,500.0G0
10,Capital stock consists of $260,000 common stock and $1,240,000
poreferred stock(RFO). President, Walter R.Bimson:Cashier,
H. L. Dunham. Will succeed the Valley Bank & Trust Co.
of Phoenix, Ariz.
Feb. 13—Citizens National Bank of Herndon, Herndon, Va__—
50,000
kaCapital stock consists of $25,000 common stock(and $25.000
5.01.11
preferred stock (RFC!). President, Ralph R. Reed; Cashier.
D.sL. Detwiler. Primary organization.
VOLUNTARY LIQUIDATIONS
Feb. 12—The First National Bank of Iron River, Mich
100,000
Effective June 16 1934. Liq. committee: H. J. Veeser, E. M.
_
D.Libby and L.A Lyon,care of the liquidating bank. Succeededi,by ,,the "Iron River National Bank," Iron River,
Mich., Charter No. 14102.
Feb. 12—The Farmers & Merchants National Bank of Headland,
Ala
60.000
Effective Feb. 7 1935. Liq. agents: L. T. Solomon and C. F.
Reynolds, both of Headland, Ala. No absorbing or succeeding'
bank.
Feb.el13—Thel3'irst National Bank of Camden, Ohio
50,000
...Effective Feb. 11 1935. Liq. committee: Thos. Donohoe,
B. F. Otto and Chas R. Neff, all of Camden, Ohio. Succeeded by "First National Bank in Camden,Ohio," Charter
No. 14316.
Feb. 13—The Caspian National Bank, Caspian, Mich
H25,000
Effective June 16 1934. Liq. committee: C. G. Nelson, A. D.
Marinello and Tony Mongiat, care of the liquidating bank.
Succeeded by the"Iron River National Bank." Iron River,
Mich., Charter No. 14102.
di
El
BRANCHESIAUTHORIZEDUR ZEMI
Feb. 9—First National Bank & Trust Co. of Greenfield, Mass.
t. .„Location of branches: Town of Northfield, Franklin County, Mass..
Village of Turners Falls. Franklin County, Mass. Certificates Nos;
Illt1.134A and 1135A.
Feb. 11—The Valley National Bank of Phoenix, Ariz.
...Location of branches: All located in the State of Arizona—Precinct of
Ajo, Pima County: Town of Casa Grande, Final County; Town of
Clifton, Greenlee County; Precinct of Coolidge, Final County; Town of
Glendale, Maricopa County' City of Globe, Gila County; Precinct
of Hayden,.Gila County; District of Kingman, Mohave County
Town of Mesa, Maricopa County; Town of Miami, Gila County
City of Prescott, Yavapai County; Town of Safford, Graham County
Precinct of Superior, Final County; City of Tucson, Pima County
Certificates Nos. 1136A and 1149A inclusive.
Feb. 12—ThejAnglo California National Bank of San Francisco, Calif.
Location of branch: City of San Jose, Santa Clara County, Calif. Certificate No. 1150A.
AUCTION SALES
InAmong other securities, the following, not actually dealt in
at the Stock Exchanp, were sold at auction in New York,
Boston, Philadelphia and Buffalo on Wednesday of this
week:
By Adrian H. Muller & Son, New York:
Shares
Stocks
100 Distilled Liquor Corp. (N. Y.), par $5
$ Per Share
141$
By Adrian H. Muller & Son, Jersey City, N. J.:
No sale held this week.
By. R. L. Day & Co., Boston:
Stocks
Shares
$ NT Share
11 FareAlpacaro., par $50
12
2 Boston &'Albany RR., par $100
III
5111oston Elevated Ry, common, par $100
633(
1 BostonAlMaine Rit. 1st pref. D, unstamped, par $100
734
101Aetius Insurance Co., par $10
51A
413,Hartford Fire Insurance Co., par $10
603,4
12tQuincy Market Cold Storage & Warehouse Co. common, par $100
234
3 Gamewell Co. preferred
40
152 National Surety Co. ctfs. of deposit, par $10, and 20 North & South
American class A. par $1
$21 lot
50 units International Power Securities Co
46
35 International Utilities Corp. $3.50 prior preferred
1434
20 International Utilities Corp. $1.75 preferred
lA
I First Boston Corp.. par $10
2734
Bonds—
Per Cent
1% fiat
$6.000 New York United Hotels 68, Feb. 1947. ctf. of deposit
By Crockett & Co., Boston:
Stocks
Shares
27 Air Container common, class B
100 Kreuger & Toil Co.. American certificates
70 Punta Alegre Sugar Corp. common
24 Air Container common
$ per Share
234
$7 lot
334
234
1259
By Barnes & Lofland, Philadelphia:
$ per Share
Shares
Stocks
10 The,Bannockburn Heights Improvement Co., no par
20
23 Central-Penn National Bank, par $10
2734
100 West Jersey Trust Co., Camden. N. J.. par $20
9
88 First Camden National Bank & Trust Co., Camden, N.J., par $12.50
13
4 Philadelphia Bourse, common, par $50
83,4
9
2 Pennsylvania Academy of Fine Arts
Per Cent
Bonds—
$2,000 Hotel Adelphia, Philaddelphia, Pa.. Wi,% first mortgage, clue 1937
200a1
(J. & J. 1)
By A. J. Wright & Co., Buffalo:
$ per Shares.
$ .15
,Shares
Stocks
10 Angel International Corp., common
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
Abbott Dairies, Inc. (quar.)
7% 1st and 2d preferred (quar.)
Adams Express Co.5% cum. pref. (quar.)
Allied Laboratories (quar.)
Extra
$334 convertible preferred (quar.)
American.Cigar,(quar.)
Preferred (quar.)
American Laundry Machinery (quar.)
American Sumatra Tobacco (quar.)
American Telep. & Teleg. Co.(quar.)
Armour & Co.(Ill.) $6 prior pref. (quar.)
Armour & Co.(Del.) preferred (quar.)
Associates Investment(quar.)
7% preferred (quarterly)
Bayuk Cigars
1st preferred (quar.)
Belden Manufacturing
Boston & Albany RR. Co
Briggs & Stratton
Brillo Mfg. Co.,Inc.,common (quar.)
Class A (quar.)
Bristol Brass Corp. (quar.)
British-American Tobacco,ord.(interim)
Brooklyn & Queens Transit $6 pref. (quar.)
Bucyrus-Erie Co. preferred (quar.)
Budd Realty Corp. (quar.)
Calgary &„Edmonton,Corp. (initial)
California Ink (guar.)
Canadian Industries, Ltd.,7% pref.(quar.)_
Canadian Silk Products, A (guar.)
Canadian Western Natural Gas. Light, Heat &
Power, Ltd.,6% preferred (quar.)
Carteri(Wm.) Co., Inc., 6% preferred (quar.)
Central Illinois Light Co.6% pref. (quar.)
7% preferred (quar.)
Chesapeake Corp.(guar.)
Chesapeake & Ohio (quar.)
Preferred (semi-ann.)
Chesebrough Manufacturing Co. (guar.)
Per
Share
When Holders
Payable of Record
25c
$134
$134
10c
10c
87 A c
$2
$134
10c
25c
$234
$134
$11,1
Mar. 1 Feb. 15
Mar. 1 Feb. 15
Mar.30 Mar. 15a
Apr. 1 Mar.25
Apr. 1 Mar. 25
Apr. 1 Mar. 25
Mar. 15 Mar. 9
aar
r. 1 Mar. 15
Feb. 21
Mar. 15 Mar. 1
Apr. 15 Mar. 15
Apr. 1 Mar. 10
Apr. 1 Mar. 10
Mar.30 Mar.20
Mar.30 Mar.20
Mar. 15 Feb. 28
Apr. 15 Mar.31
Feb. 15 Feb. 10
Mar.30 Feb. 28
Mar. 15 Mar, 5
Apr. 1 Mar. 15
Apr. 1 Mar. 15
Mar. 15 Feb. 28
Mar.30 Mar. 2
Apr. 1 Mar. 15
Apr. 1 Mar. 15
Mar. 1 Feb. 21
May 1 Apr. 1
Apr. 1 Mar.22
Apr. 15 Mar.30
Mar. 1 Feb. 15
$134
e4%
$1,47
$1
$2
75c
15c
50c
3735c
wl0d
50c
50c
$1
Sc
50c
r$1 3,j
37A c
Mar. 1 Feb. 18
Mar, 15 Mar. 10
Apr. 1 Mar. 15
Apr. 1 Mar. 15
Apr. 1 Mar, 8
70c Apr. 1 Mar. 8
$$3g July 1 June 7
$1 Mar. 29 Mar. 8
50c Mar. 29 Mar. 8
75c Mar. 4 Feb. 20
Chestnut Hill RR.(quar.)
30c Mar.30 Mar.20
Chicago.Flexible Shaft (quar.)
10c Mar. 30 Mar. 20
Extra
50c Apr. 1 Mar. 5
Chickasha Cotton 011(special)
$134 Apr. 1 Mar. 20
Christiana Securities,7% pref. (guar.)
$13.1 Apr. 1 Mar. 20
Cincinnati Union Terminal, preferred (quar.)
$134 July 1 June 20
Preferred (quar.)
$134 Oct. 1 Sept.20
Preferred (guar.)
$134 Jana 36 Dec. 20
Preferred (quar.)
Commonwealth Loan Co. (Ind.). 7% pref. (qu.) $IN Mar. 1 Feb. 20
common
12Ac Mar. 1 Feb. 25
Compo Shoe Machinery Corp.,
$1 Mar. 31 Mar.25
Confederation Life Assoc.,"Toronto" (quar.)
$1 June 30 June 25
Quarterly
$1 Sept.30 Sept. 25
Quarterly
$1 Dec. 31 Dec. 25
Quarterly
hi' Apr. 1 Mar. 13
Crown Willamette Paper. 7% preferred
$2 Mar.31 Mar. 21
d Crum St,Forster,48% preferred (quar.)
Mar. 1 Feb. 28
Daniels &JFisher Stores. 634% pref. (quar.)
Feb. 20 Feb. 18
Delaware & Bound BrookiliR. Co.(guar.)
50c Apr. 20 Mar.30
Dome Mines, Ltd.(guar.)
Mar, 1 Feb. 23
_
15c
OiliFieldsj(monthly)____
_
Dominguez
$2 Apr. 1 Mar, 8
DuplaniSilkiCorp.,8%tpreferred (guar.).
Mar. 15 Feb. 27
corn.
(qu.)
65c
&
Co.
Nemours
(E.
I.)
Pont
de
du
$134 Apr. 25 Apr. 10
Debenture stock (quar.)
$131 Apr. 15 Mar. 15
Duquesne Light Co. 5% cum. 1st pref.(qu.)_
Sc Mar. 9 Feb. 20
Eastern Malleable Iron (quar.)
25c Mar. 25 Mar. 9
Edison Brothersgtores (quar.)
$134 Mar. 15 Feb. 28
Preferred (quar.)
25c Apr. 1 Mar. 20
Electric Controller & Mfg.(quar.)
50c Apr. 1 Mar, 9
Electric StoragejBattery Co.com:(guar.)
50c Apr, 1 Mar. 9
Preferred (quar.)
$234 Mar. 1 Feb. 20
Ft. Wayne & Jackson RR..534% prof.(s.-a.)
25c Apr. 1 Mar, 18
Glidden Co.(quar.)
15c Apr. 1 Mar. 18
Extra
51% Apr. 1 Mar, 18
Preferred (quarterly)
$134 Apr. 1 Mar.30
Gold & Stock Telegraph (quar.)-P37 Ac Apr. 1 Mar. 11
Goldblatt Bros., Inc.(guar.)
134 Mar. 1 Feb. 18
Goodman (H. C.). 1st pref. (quar.)
Apr. 1 Mar. 1
Goodyear Tire &iRubber,$7 pref.(quar.)
$234 Mar. 1 Feb. 25
GracejNational Bank (N. Y.) (5.-a.)
Greenwich Water & Gas System,$6% pref.(qu.) $134 Apr. 1 Mar.20
500 Mar, 15 Mar, 9
Hickok Oil Corp. (semi-annual)
Apr. 1
Preferred (quarterly)
$134 Mar. 1 Feb. 15
Hooven & Allison 7% pref.(guar.)
25c Apr. 1 Mar. 2
Humble Oil & Refining (quar.)
25c Mar. 1 Feb. 15
Industrial Credit Corp. of Lynn (quar.)
87 Ac Mar, 1 Feb. 15
417% preferred (quar)
International Bronze Powders—
37c Apr. 15 Mar.31
ka6% cum. panic. preferred (quar.)
InternationaliOcean Tel. Co.(quar.)
$154 Apr. 1 Mar.30
Apr. 1 Mar, 14
InternationarSilver, preferred
$134 Apr. 1 Mar,14
Kansas City Power & Light, pref. B (quar.)
Mar.
30 Mar. 15
15c
Kennecott Copper Corp
Kings County Lighting 6% pref. (quar.)
$134 Apr. 1 Mar,15
5% preferred (quar.)
$ig Apr. 1 Mar. 15
7% preferred (quar.)
$134 Apr. 1 Mar, 15
Lake Shore Mines, Ltd. (quar.)
507 Mar. 15 Mar. 1
Mar. 15 Mar, 1
Bonus
Liggett & Myers Tobacco. pref. (quar.)
$1 A Apr. 1 Mar. 11
lAndtAir Products,6% pref. (quar.)
$134 Apr. 1 Mar. 20
Loew's (quarterly)
50c May 30 Mar.:15
London Tin Corp., American dep. recta.7A % participating preferred (semi-annual)__ xw3 % Apr. 8 Mar. 6
Louisville Gas & Elec. Co.(Del.),cl. A & B com_ 37 Ac Mar. 25 Feb. 28
Long Island Lighting Co., ser A 7% preferred.. 1% Apr. 1 Mar. 15
Apr. 1 Mar. 15
SeriesB 6% preferred
Mar. 1 Feb. 25
Mahoning Investment Co
Mathieson Alkali Works (quarterly)
37 Ac Apr. 1 Mar. 4
Apr. 1 Mar. 4
Preferred (quarterly)
Mayer (0.)& Co., 1st pref. (quar.)
$151 Mar. 1 Feb. 23
2nd preferred (quarterly)
$2 Mar. 1 Feb. 23
$134
$134
1 7
1
o
sit
i.„a
1260
Financial Chronicle
Name of Company
Per
Share
When Holders
Payable of Record
Mayflower Assne.(quar.)
50c Mar. 15 Mar. 1
McCahan (W. J.) Sugar Ref. & Mollasses Co.,
7% preferred (quarterly)
$13,
1 Mar. 1 Feb. 19
Merchants Fire Ins. "Denver" (quar.)
30c Feb. 15 Feb. 10
Mesta Machine (quarterly)
373,5c Apr. 1 Mar. 16
Monroe Loan Society, $7 pref. A (quar.)
$14 Mar. 1 Feb. 20
Montgomery Ward,class A (quar.)
$1% Apr. 1 Mar. 21
Montreal Cottons, preferred (quarterly)
r$1% Mar, 15 Feb. 28
Mt. Diablo Oil, Mining & Development (quar.)_
Mar. 1 Feb. 24
Extra
A c Mar. 1 Feb. 24
Mutual Telephone Co.(Hawaii) (monthly)_ _
Sc Mar. 20 Mar. 11
Nassau & Suffolk Lighting, 7% preferred
75c Apr. 1 Mar. 15
National Biscuit (quarterly)
50c Apr. 15 Mar. 15
Preferred (quarterly)
31% May 31 May 17
National Finance Corp. of Amer.,6% pt.(qu.)
15c iparr.. 1 Mar. 10
National Life & Accident Ins. Co.(Tenn.)
Feb. 20
30c
National Oil Products, $7 pref. (quar.)
3131 Apr. 1 Mar. 20
National Sugar Refining Co. of N. J. (quar.)
50c Apr. 1 Mar, 4
New Bedford Storage & Warehouse
35c Feb. 20 Jan. 23
New England Telep. & Teleg. Co.(quar.)
$134 Mar.30 Mar. 8
New World Life Insurance
40c Mar. 1 Feb. 13
New York & Hanseatic (quar.)
$1 Feb. 15 Feb. 11
New York & Queens Elec. Light & Power—
Quarterly
$2 Mar. 14 Mar. 1
$5 non-cum. preferred (quar.)
$14 Mar. 1 Feb. 21
New York Steam, $6 preferred (quar.)
$13,5 Apr. 1 Mar. 15
$7 preferred (quarterly)
$134 Apr. 1 Mar. 15
Noblitt-Sparks Industries (quarterly)
30c Apr. 1 Mar. 20
Northern RR. of N. J., 4% gtd. ((War.)
$1 Mar. 1 Feb. 19
Northwestern Utilities, Ltd.,6% prior pref.(qu.) $1
Mar. 1
Oneida Community Ltd.. 7% pref
h$1 Mar. 15 Feb. 28
Paraffine Cos.(quarterly)
50c Mar. 27 Mar. 16
Park Davis (quarterly)
25c Mar. 30 Mar, 20
Extra
25c Mar,30 Mar. 20
Penmans, Ltd
75c Feb. 16 Feb. 5
Pennsylvania Water Sr Power (quarterly)
75c Apr. 1 Mar. 15
Preferred (quarterly)
$134 Apr. 1 Mar. 15
Peoples Drug Stores. Inc. (quar.)
25c Apr. 1 Mar. 6
6 % preferred (quarterly)
314 Mar. 15 Mar. 1
Pepper (Dr.)(quarterly)
20c Mar. 1 Feb. 18
Quarterly
20c June 1 May 15
Quarterly
20c Sept. 1 Aug. 15
Quarterly
20c Dec 1 Nov. 15
Pet Milk (quarterly)
25c Apr. 1 Mar. 31
Preferred (quarterly)
Apr. 1 Mar. 11
$1
Philadelphia Co.. $6 cum. preferred (quar.)
$13,5 Apr. 1 Mar. 1
$5 cum. preferred (quar.)
31%. Apr. 1 Mar. 1
Phila. Germantown & Norristown RR.(quar.)_ _ 5134 Mar. 1 Feb. 20
Pioneer Gold Mines of B. C., Ltd., common__ .._
r20c Apr. I Mar. 2
Pratt Food (quarterly)
$3 Mar, 1 Feb. 18
Public Service Co.of N.H.$6 pref.(quar.)
$155 Mar. 15 Feb. 28
$5 preferred (quarterly)
Mar. 15 Feb. 28
$1
Public Service Electric & Gas7% preferred (quarterly)
$1 VI Mar. 31 Mar. 1
$5 preferred (quarterly)
Mar. 31 Mar. 1
$1
Queens Boro. Gas & Elec. Co.,6% cum.pt.(qu.) $1
Apr. 1 Mar, 15
Raybestos Manhattan
25c Mar. 15 Feb. 28
Reliance Grain Co.,6i % pref.(quar.)
$1% Mar. 15 Feb. 28
Rice-Stix Dry Goods Co., 1st & 2d pref.(quar.)_ $11 Apr. 1 Mar. 15
St. Louis Cotton Compress Co
Feb. 16 Feb. 13
San Joaquin Light & Power,7% pref.(qu.)
$14 Mar, 15 Feb. 28
6% prior preferred A (quar.)
$134 Mar. 15 Feb. 28
7% preferred A (quarterly)
$14 Mar. 15 Feb. 28
6% preferred B (quarterly)
$13,5 Mar, 15 Feb. 28
Schiff Co., common (guar.)
50c Mar. 15 Feb. 28
Preferred (guar.)
$134 Mar, 15 Feb. 28
Seaboard Oil of Del.(quar.)
15c Mar. 15 Mar. 1
Extra
10c Mar. 15 Mar. 1
&bine Chain Theatres, $3 preferred
h75c Mar. 1 Fob. 20
Selfridge & Co
5%
Sherwin Williams. Ltd., preferred
141% Apr. 1 Mar. 15
South Porto Rico Sugar Co.,corn.(quar.)
500 Apr. 1 Mar. 9
Preferred (quarterly)
2% Apr. 1 Mar. 9
Southern Acid & Sulphur Co., Inc.
7% preferred (quarterly)
31% Apr, 1 Mar, 9
Southern & Atlantic Teleg., gtd. (s.-a.)
623,5c Apr, 1 Mar. 16
Southern Colorado Power Co., 7% preferred
1% Mar. 15 Feb. 28
Standard Oil of Kentucky (guar.)
25c Mar, 15 Feb. 28
Extra
25c Mar. 15 Feb. 28
Sunset, McKee Salesbook, class A (quar.)
373,5c Mar. 15 Mar. 4
Class B (guar.)
25c Mar. 15 Mar. 4
Sylvanite Gold Mines (guar.)
5c Mar. 30 Feb. 23
Tacony-Palmyra Bridge (guar.)
25c Mar. 30 Mar. 10
Class A (quarterly)
25c Mar. 30 Mar. 10
Texas Corp. (quarterly)
25c Apr. 1 Mar. 1
Thatcher Mfg. Co
25c Apr. 1 Mar. 15
Twentieth Century Fixed Trust Shares—
Original series coupon
4.62c Mar. 1
Title Insurance Corp. of St. Louis (quar.)
1235c Feb. 28 Feb. 18
United-Carr Fastener
25c Mar. 15 Mar, 5
United Elastic (quarterly)
10c Mar. 23 Mar, 5
United Gas & Electric Corp., preferred (quar.)_ _
Apr. 1 Mar. 15
Universal Products
Mar. 30 Mar, 20
Victor-Monaghan Co., 7% preferred (quar.)__ _ $1% Apr. 1 Mar. 20
Viking Pump, preferred (quar.)
60c Mar. 15 Mar. 1
Vortex Cup (quarterly)
3735c Apr. 1 Mar, 15
Class A (quarterly) _
623,5c Apr, 1 Mar. 15
Weill (Raphael) & Co.. Inc
$3 Feb. 23 Feb. 1
Welch Grape Juice Co., 7% pref. (quar.)
$1% Feb. 28 Feb. 15
Western Public Service, pref. A (quar.)
$13,5 Mar. 1 Feb. 11
White Villa Grocers, Inc. (s.-a.)
$3 Mar. 1 Feb. 15
Wisconsin Michigan Power, preferred (quar.)__ _ $14 Mar. 15 Feb. 28
Wisconsin Power & Light, 6% preferred
h50c Mar. 15 Feb. 28
7% preferred
h58 1-3c Mar. 15 Feb. 28
Woodley Petroleum Co. (guar.)
10c Mar. 31 Mar. 15
Wright-Hargreaves Mines(quar.)
10c Apr. 1 Mar. 9
Extra
5c Apr. 1 Mar. 9
Young (J. S.) Co., extra
32 Feb. 19 Jan. 30
1a
Below we give the dividends announced in previous weeks
and not yet paid. This list does no *nclude dividends announced this week, these being given in the preceding table.
Name of Company.
When Fielders
Per
Share. Payable. of Record
Affiliated Products emonthly)
Sc Mar. 1 Feb. 14
Agnew-Surpass Shoe Stores, corn. (semi-ann.)
20c Mar. I Feb. 15
Preference (quar.)
13,
1% Apr. 1 Mar, 15
Agricultural Insur (Watertown, N.Y.)(quar.)_
. 4
75c Apr.
1 Mar. 26
Ainsworth Mfg. Co.(special)
Feb. 21
75c
Alabama Great Southern HR. Co.. preferred__
3% Feb. 27 Jan 22
Alabama Power Co..$7 pref. (quar.)
$1;i Apr. 1 Mar, 15
$6 preferred (quarterly)
$135 Apr. 1 Mar. 15
$5 preferred (quarterly)
$14 May 1 Apr. 15
Allegheny Steel
25c Mar. 15 Mar. 1
7% preferred (quarterly)
$14 Mar. 1 Feb. 15
Allen Industries preferred (quer.)
750 Mar. 1 Feb. 20
Preferred
h75c Mar, 1 Feb. 20
Alpha Portland Cement
25c Apr. 25 Apr. 1
American Arch Co.(guar.)
25c Mar. 1 Feb. 18
American Asphalt Roofing Corp.8% prat. (qu.) h$135 Apr. 15 Mar. 31
American Business Shares. Inc
2c Mar. 1 Feb. 15
American Capital. 3534 preferred (quar.)
$1% Mar. 1 Feb. 15
American Chicle (quar.)
750 Apr. 1 Mar. 12
American Dock Co.,8% pref. (quar.)
$2 Mar. 1 Feb. 18
American Electric Securities Corp. partic. pref
734c Mar. 1 Feb. 21
American Factors. Ltd.(monthly)
Mar. 11 Feb. 21
American Hair & Felt 1s5 preferred
552 Apr. 1 Mar. 15
Name of Company.
Feb. 23 1935
When Holders
Per
Share. Payable. ofRecord.
American Home Products Corp. (monthly)— -20c Mar. 1 Feb. 140
American & General Securities Corp.—
Common, A (quarterly)
754c Mar. 1 Feb. 15
Preferred (quarterly)
75c Mar. 1 Feb. 15
Amer.Invest. Co. of Illinois B (quar.)
10c Mar. 1 Feb. 20
7% preferred (quar.)
4334c Apr. I mar. 20
American Radiator & Standard Sanitary Corp.—
Preferred (guar.)
$134 Mar. 1 Feb. 21
American Rolling Mills, 6% preferred
142 Mar, 1 Feb. 15
American Smelting & Refining,6% pref
h$3 Mar. 1 Feb. 8
7% 1st preferred (quarterly)
$134 Mar. 1 Feb. 8
American Steel Foundries. 7% preferred (qu.)
50c Mar. 30 Mar. 15
American Stores Co. (quarterly)
50c Apr. 1 Mar. 15
American Sugar Refining (quar.)
50c Apr. 2 Mar. 5
Preferred (quar.)
Mear
b.. 5
8
1F
$134 Apr. 2
American Tobacco, corn. & corn. B (guar.).--750 July 2 June 22
Amoskeag Co ,common
$134M
Preferred (semi-annual)
$234 July 2 June 22
Armstrong Cork (special)
1234c Mar. 1 Feb. 14
Associated Dry Goods Corp. 1st preferred
$3 Mar. I Feb. 7
Atlas Corp., $3 pref. A (quar.)
75c Mar. 1 Feb. 15
Atlanta & Charlotte Air Line By.(semi-ann.)..Mar. 1 Feb. 20
Archer-Daniels-Midland (guar.)
25c Mar, 1 Feb. 18
Extra
25c Mar. 1 Feb. 18
Artloom Corp., preferred
/4134 Mar. 1 Feb. 15
Atlantic Refining Co.,common
25c Mar. 15 Feb. 21
Atlas Powder Co.(quarterly)
50c Mar. 11 Feb. 28
Automatic Voting Machine Co. (quar.)
1234e Apr. 2 Mar. 20
Quarterly
1234c July 2 June 20
Automotive Gear Works, $1.65 preferred (quar.) 4134c Mar. 1 Feb. 20
Backstay Welt
35c Apr. 1 Mar. 16
Bamberger (L.) 05% pref. (guar.)
$134 Mar. 1 Feb. 15
Bangor & Aroostook RR. (guar.)
63c Apr. 1 Feb. 28
Preferred (quarterly)
3134 Apr. 1 Feb. 28
Bangor Hydro-Electric (quar.)
75c Apr. 1 Mar. 11
7% preferred (quar,)
3134 Apr. 1 Mar. 11
6% preferred (guar.)
$134 Apr. 1 Mar. 11
Bankers National investing Corp.(Del.)(qu.)—
8c Feb. 25 Feb. 15
Series A and B (quar.)
32c Feb. 25 Feb. 15
60c preferred (quar.)
15c Feb. 25 Feb. 15
Baton Rouge Elect. Co.. $6 pref. (quar.)
$034 Mar. 1 Feb. 15
Belding-Corticelli. preferred (quar.)
$134 Mar. 15 Feb. 28
Bigelow Sanford Carpet. pref. (quar.)
$134 Mar. 1 Feb. 15
Birmingham Water Works Co.6% pref. (qu.)
Mar. 15 Mar. 1
$I
Black-Clawson preferred (guar.)
$134 Mar. 1 Feb. 25
Bloch Bros. Tobacco.—
Quarterly
3734c May 15 May 10
6% pref. (quar.)
$1A Mar.30 Mar. 25
6% preferred (guar.)
$134 June 29 June 25
Blue Ridge Corp.,$3 cony. pref.(guar.)
1750 Mar. 1 Feb. 5
Borden Co..common (quar.)
40c Mar. 1 Feb. 15
Boston & Albany RR. Co
$2 Mar. 30 Feb. 28
Boston Insurance (quarterly)
$4 Apr. 1 Mar. 20
Boston & Providence RR.(guar.)
$2.125 Apr. 1 Mar. 20
Quarterly
$2.125 July 1 June 20
Quarterly
$2.125 Oct. 1 Sept. 20
Quarterly
$2.125 Jan.2'36 Dec. 20
Boston Warehouse di Storage Co.(guar.)
$134 Mar. 1
Brach (E. J.) & Sons
25c Mar. 1 Feb. 9
Brewer (C.) Sr Co.. Ltd.(mo.)
$1 Mar. 25 Mar. 20
Bridgeport Machine Co. preferred
142 Feb. 25 Feb. 15
Bristol-Myers Co. common (guar.)
50c Mar, 1 Feb. 11
Common (extra)
10c Mar, 1 Feb. 11
Brooklyn Edison Co. (quar.)
$2 Feb. 28 Feb. 11
Brooklyn-Manhattan Transit Corp.
Preferred (quarterly)
$134 Apr. 15 Apr. 1
Preferred (quarterly)
$13.5 July 15 July 1
Brooklyn Union Gas (guar.)
$134 Apr. 1 Mar. 1
Brown Forman Distillery $6 preferred (quar.)— $134 Apr. 1 Mar. 20
Brown Shoe Co., common (quar.)
75c Mar, 1 Feb. 20
Buckeye Pipe Line Co
75c Mar. 15 Feb. 21
Buffalo Niagara & Eastern Power, pf. (quar.)
40c Apr. 1 Mar. 15
$5 preferred (quar.)
$1
May 1 Apr. 15
Burma Corp.. Amer. dep.receipt (interim)
w 2 an Apr. 5 Feb. 27
Burroughs Adding Machine Co.(quar.)
15c Mar. 5 Feb. 2
Butler Water Works (Pa.) 7% pref. (quar.)
$134 Mar. 15 Mar. 1
Calamba Sugar Estate (quarterly)
40c Apr. 15
1 Mar. 15
Preferred (quarterly)
35c Apr. 1 Mar. 15
California Packing (quar)
Feb. 28
3734c M
Campo Corp., common (quar.)
20c Mar. 1 Feb. 15
Canada Vinegars (quar.)
40c Mar. 1 Feb. 15
Canadian Cottons (quar.)
$1 Apr. 1 Mar. 15
Preferred (quar.)
$134 Apr. 1 Mar, 15
Canadian Foreign Investment (quar.)
400 Apr. 1 Mar. 15
Quarterly
40c July 1 June 15
Preferred (guar.)
$2 Apr. 1 Mar. 15
Preferred (guar.)
$2 July 1 June 15
Canadian Hydro-Electric. 1st pref.(guar.)
r$134 Mar. 1 Feb. 1
Canadian Oil Co.., preferred (quar.)
r$2 Apr. 1 Mar. 20
Canfield Oil, preferred (guar.)
3134 Mar. 31 Feb. 20
Carnation Co..7% preferred (guar-)
$134 Apr. 1 Mar. 20
7% preferred (quar.)
$134 July 1 June 20
7% preferred (quarterly)
3134 Oct. 1 Sept. 20
Carolina Telep. & Teleg
u
h Apr. 1 Mar. 25
Case (J. I.), preferred
Apr. 1 Mar, 12
Caterpillar Tractor (quar.)
25c Feb. 28 Feb. 15
Central Arkansas Public Service Corp.-Preferred
% Mar. 1 Feb. 15a
Central Mississippi Valley Electric Properties
6% preferred (quarterly)
$134 Mar. 1 Feb. 15
Central Ohio Light & Power Co., $6 pref
/4135 Fob. 28 Fob. 18
Central Tube
5c Feb .25 Feb. 15
Centrifugal Pipe Corp.(quar.)
10c May 15 May 6
Quarterly
10c Aug. 15 Aug. 5
Quarterly
10c Nov. 15 Nov. 6
Century Ribbon Mills, preferred (quarterly)... $134 Mar. 1 Feb. 20
Charnption Coated l'aper (quar.)
$1 Feb. 25 Feb. 9
1st preferred (quarterly)
$134 Apr. 1 Mar. 20
Special preferred (quarterly)
$134 Apr. 1 Mar. 20
Champion Fiber Co., preferred (quar.)
$134 Apr. 1 Mar. 20
Chartered Investors, Inc., $.5 pref. (quar.).... $134 Mar. 1 Feb. 1
Chicago Corp.. preferred (guar.)
25c Mar. 1 Feb. 15
Chicago Dist. Elec. Generating Corp.$6 pf.(qu.) $1.56234 Mar.Mar. 1 Feb. 15
Chicago Mail Order Co.(quar.)
Feb. 9
Extra
1234c Mar. I Feb. 9
Chicago Rivet & Machine Co
3734c Mar. 12 Feb. 25
Chicago Yellow Cab (quar.)
250 Mar. 1 Feb. 19
Cincinnati inter-Terminal RR. Co.-4% preferred (semi-annual)
$2 Aug. 1 July 20
Cinc. New Orl. Tex. Pac. By., 5% pref.(quar.) $134 Mar. 1 Feb. 15
Citizen.GaS,Indianapolis,5% prof.(guar.)_ _ - - 3134 Mar. 1 rob 20
City Ice & Fuel (guar.)
50c Mar.30 Mar. 15
Preferred (guar.)
$134 Mar. 1 Feb. 21
City of New Castle Water 6% pref.(quar.)
$134 Mar. 1 Feb. 20
Clark Equipment
20c Mar. 15 Feb. 28
Preferred (quar.)
$134 Mar. 15 Feb. 28
Cleveland Electric Illuminating.6% pref. (qu.) $135 Mar. 1 Feb. 15
Cleveland & Pittsburgh By.7% guar.(quar.)_.,.. 8734c Mar. 1 Feb. 9
7% guaranteed quar.
8734c June I May 10
7% guaranteed quer.
8734c Sept. 1 Aug. 10
7% guaranteed quar.
8734c Dec. 1 Nov. 9
Special guaranteed iquar.
c Mar. 1 Feb. 9
Special guaranteed quar.
50c June 1 May 10
Special guaranteed quar.
50c Sept. 1 Aug. 10
Special guaranteed quar.
50c Dec. 1 Nov. 9
Coast Counties Gas & Electric pref.(quar.)--- $1.35 Mar. 15 Feb. 25
Colgate-Palmolive-Peet (quar.)
1234c Mar. 1 Feb. 8
Preferred (quarterly)
$134
8c F
Collateral Trust Shares(N. Y.)series A
Aepb
r.
. 28
1 Mar. 5
Collins & Alkrnan Corp. preferred (guar.)
134% Mar. 1 Feb. 15
Columbia Pictures Corp.. preferred (guar.)._ _.
750 Mar. 1 Feb. 14a
Volume 140
Name of Company.
When Holders
Per
Share. Payable. ofRecord
Columbian Carbon Co. (quar.)
$1 Mar. 1 Feb. 15
Columbus & Xenia RR
$1.10 Mar. 11 Feb. 25
Commonwealth Utilities.645% pref. 0 (quar.)
$145 Mar. 1 Feb. 15
Compania Swift Internacional (semi-ann.)
$1 Mar. 1 Feb. 15
Compressed Industrial Gases.(Wan)
50c Mar. 15 Feb. 28
Congoleum-Nairn, Inc. (quar.)
40c Mar. 15 Mar. I
Connecticut Light & Power 645% pref. (quer.). $144 Mar. 1 Feb. 15
545% preferred (quar.)
$145 Mar. 1 Feb. 15
Connecticut River Power,6% pref.(quar.)
$134 Mar. 1 Feb. 15
Consolidated Bakeries of Canada (quar.)
1 Mar. 15
20c
Feb. 15
Consolidated Cigar, 7% pref.(quar.)$1X Mar.
Consolidated Gas Co.(N. Y.)
25c Mar. 15 Feb. 11
Consolidated Gas El. Lt. & Pow. Co. of Balto.:
Common (guar.)
90c Apr. 1 Mar. 15
Series A 5% preferred (quail
$1 3.1 Apr. 1 Mar. 15
Series D 6% preferred (guar.
$1 X Apr. 1 Mar. 15
Series E 545% preferred (qaal%)
$144 Apr. 1 Mar. 15
Consolidated Investors Trust (semi-ann.)
50c Apr. 15 Apr. 1
Special
70c Apr. 15 Apr. 1
Consolidated Paper (quar.)
15c Mar. 1 Feb. 18
Preferred (quar.)
1734c Apr. 1 Mar. 21
Consumers Glass Co.,7% pref. (guar.)
$144 Mar. 15 Feb. 28
Consumers Power Co., $5 pref. (guar.)
5144 Apr. 1 Mar. 15
6% preferred (quarterly)
$145 Apr. 1 Mar. 15
6.6% preferred (quarterly)
$1.65 Apr. 1 Mar. 15
7% preferred (quarterly)
$144 Apr. 1 Mar. 15
6% preferred (monthly)
50c Mar. 1 Feb. 15
6% preferred (monthly)
50c Apr. 1 Mar. 15
6.6% preferred (monthly)
55c Mar. 1 Feb. 15
rr (monthly)
6.69 preferred
55c Apr. 1 Mar. 15
Continental Casualty Co.(Chic. Ill )(quarterly)
15c Mar. 1 Feb. 15
Cook Paint & Varnish Co.(Del.),$4 pref.(cm.)$1 Mar. 1 Feb. 26
Copperweld Steel (guar.)
1245c Feb. 28 Feb. 15
Quarterly
1245c May 31 May 15
Quarterly
1245c Aug. 31 Aug. 15
Quarterly
1234c Nov.30 Nov 15
Corno Mills (guar.)
Mar. 1 Feb. 19
2
Cotwtaulds, Ltd. (final)
w6% Mar. 25 Feb. 19
Creameries ix Amer., Inc.. $345 Peel.(quar.)
8745e Mar. 1 Feb. 10
Crown Cork & Seal co.. Inc.,common (quar.)
25c Mar. 6 Feb. 25a
Preferred (guar.)
67c Mar. 15 Feb. 28a
Crown Zellerbach, A & B, preferred
75c Mar. 1 Feb. 13
Crum & Forster Ins. Shares Corp., A & B (quar.)
15c Feb. 28 Feb. 18
A & B extra
10c Feb. 2 Feb. 18
7% preferred (quarterly)
$134 Feb. 2 Feb. 18
Cum.° Preen. Inc 634% preferred (quarterly). $144 Mar. 1 Mar. 1
Cushman's Sons,$8 preferred (quar.)
$2 Mar. Feb. 21
7% Preferred (quarterly)
$144 Mar. Feb. 21
Daniels & Fisher Stores
$2
6 X 70 Preferred (quar.)
$145 Mar. 1 Feb. 20
Danville Traction & Power. preferred
3X%
Dayton & Michigan RR.(semi-ann.)
8744c Apr. 1 Mar. 15
8% preferred (quarterly)
Si Apr. I Mar. 15
Dayton Power & Light Co.,6% pref.(monthly)
50c Mat. 1 Feb. 20
Deere & Co., preferred
20c Mar. I Feb. 15
Denver Union Stockyards, 7% pref. (quar.)
$154 Mar. I Feb. 20
Detroit Paper Products (quar.)
25c Mar. 1 Feb. 15
Devoe & Raynolds A & B (quar.)
25c Apr. 1 Mar. 20
A Ss B (extra)
25c Apr. 1 Mar. 20
1st & 2nd preferred (quar.)
$144 Apr. 1 Mar. 20
Dexter Co
20c Mar. I Feb. 15
Diamond Match
75c Mar. 1 Feb. 15
Participating preferred (semi-ann.)
75c Mar. I Feb. 15
Dictaphone Corporation
25c Mar. I Feb. 15
Preferred (quarterly)
$2 Mar. I Feb. 15
Durham Duplex Razor. $4 preferred
20c Mar. 1 Feb. 21
Eastern Gas& Fuel Assoc.,434% pref.(quar.)
$1.125 Apr. I Mar. 15
6% preferred (quarterly)
$13.4 Apr. 1 Mar. 15
Eastern Malleable Iron Co., (quar.)
5c Mar 9 Feb. 20
Eastern Shore Public Service. $634 Pref. (quj_ $145 Mar. I Feb. 10
gg preferred (quar.)
$1 34 Mar. I Feb. 10
Eastman Kodak common (quar.)
$141 Apr. 1 Mar. 5
Preferred (quar.)
$145 Apr. I Mar. 5
East St. Louis & Interurban Water Co.
7% preferred (quar.)
$144 Mar. 1 Feb. 20
6% preferred (quar.)
Feb. 20
$134 Mar.
Eldorado Oil Works(quar.)
Feb. 19
3745c Mar.
Elizabeth & Trenton RR. (semi-ann.)
Mar. 20
$1 Apr.
Semi-annual
$1 Oct. 1 Sept.20
5% preferred (semi-annual)
$134 Apr. 1 Mar. 20
5% preferred (semi-annual)
$144 Oct. I Sept. 20
El Paso Electric Co., Texas,6% pref. (quar.)_ _
$145 Apr. 15 Mar. 29
Ely & Walker Dry Goods((mar.)
25c Mar. 1 Feb. 18
Emerson's Bromo Seltzer 8% preferred (quar.)...
50c Apr. 1 Mar. 15
Empire & Bay State Telep., 4% gtd. (quar.)_
$1 Mar. I Feb. 19
4% guaranteed quar.
$1 June. 1 May 22
4% guaranteed quar.
$1 Sept. 1 Aug. 22
4% guaranteed quar.
$1 Dec 1 Nov. 21
Empire Capital Corp., c ass A (quar.)
10c Feb. 28 Feb. 20
Class A extra
Sc Feb. 28 Feb. 20
Class B
100 Feb. 28 Feb. 20
Empire Power Corp. $6 cum. preferred
$145 Apr. 1 Mar. 15
Eppens. Smith & Co., semi-annual
$2 Aug. 1 luly 27
Erie & Pittsburgh RR. Co.7% gtd.(guar.).- 8745c Mar. 9 Feb. 28
7% guaranteed (gnarl
8745c June 10 May 31
7% guaranteed
ar
(cLuar.
8745c Sept. 10 Aug. 31
7% guaranteed (quar.
8734c Dec. 10 Nov.30
Guaranteed betterment (guar.)
SOc Mar. 1 Feb. 28
Guaranteed betterments (guar.)
80c June 1 May 31
Guaranteed betterment (guar.)
80c Sept. 1 Aug. 31
Guaranteed betterment (quar.)
80c Dec. 1 Nov. 30
Faber Coe & Gregg, Inc. (quarterly)
25c Mar. 1 Feb. 15
Farmers & Traders Life Ins.(quar.)
$244 Apr. 1 Mar. 11
Faultless Rubber (quar.)
50c Apr. 1 Mar. 15
Federal Light & Traction, pref. (guar.)
$145 Mar. 1 Feb. 15a
Fifth Ave. Bus Securities (quar.)
16c Mar. 29 Mar. 16
Firestone Tire & Rubber,preferred (quar.)
$145 Mar. 1 Feb. 15
Fishman(M. II.). (quar.)
15c Mar. 1 Feb. 15
Fitzsimmons & Connell Dredge (quar.)
1245c Mar. 1 Feb. 18
Florida Power Corp.7% pref. A (quar.)
$14 Mar. 1 Feb. 15
7% preferred (quar.)
8745c Mar. 1 Feb. 15
Florsheini Shoe Co., A (quar.)
25c Apr. 1 Mar. 20
Class ft (quar.)
1244c Apr. 1 Mar. 20
Food Machinery Corp., preferred
50c Mar. 15 Mar. 10
Food Machinery Corp. of N. Y.6457 preferred (monthly)
50c Mar. 15 Feb 10
645
preferred rmonthlyi
50c Apr. 15 Apr. 10
645
preferred monthly
50c May 15 May 10
(IX 7„
° preferred monthly
50c June 15 June 10
Freeport Texas ((Plan)
25c Mar. 1 Feb. 15
Preferred (quar.)
$145 May 1 Apr. 15
Galland Mercantile Laundry (quar.)
8744c Apr.
Mar. 15
Gates Rubber. 7% preferred (quar.)
51(1 Mar. 1 Feb. 16
General American Corp
10c Mar. I Feb. 15
General Cigar„ preferred (quar.)
$144 Mar. 1 Feb. 20
Preferred (quar.)
$144 June 1 May 23
General Motors Corp. common (quar.)
25c Mar. 12 Feb 14
$144 May 1 Apr. 8
$5 preferred (guar.)
Gilmore Gasoline Plant, No. 1,(monthly)
20c Feb. 25 Feb. 23
Gilmore Oil
15c Feb. 28 Feb. 15
40c Apr. 1 Mar. 15
Glen Falls Insurance (guar.)
Globe Democrat Publishers Co., pref.(quar.)_ _ $154 Mar. 1 Feb. 20
Golden Cycle Corp.(quar.)
40c Mar. 10 Feb. 28
60c Mar. 10 Feb. 28
Extra
Gottfried Baking Co., Inc. preferred (quar.)_ 134% Apr. 1 Mar. 20
Preferred (quarterly)
144% July 1 June 20
Preferred (quarterly)
1 % Oct. 1 Sept. 20
3745c Mar. 1 Feb. g
Grand Union,$3 cony. pref.(quar.)
Great Atlantic & Pacific Tea Co.(quar.)
$145 Feb. 28 Feb. 8
25c Feb. 28 Feb. 8
Extra
Preferred (quarterly)
$151 Feb. 28 Feb. 8
Great Northern Paper Co (quar.)
25c Mar. 1 Feb. 20
1261
Financial Chronicle
Name of Company
Per
Share
When Holders
Payable of Record
Great Western Electro-Chernical pref. (guar.)._ $145 Apr. 1 Mar.21
h75c Mar. 1 Feb. 19
Green Mountain Power $6 preferred
$135 Mar. 1 Feb. 19
$6 preferred (quar.)
$144 Apr. 1 Mar. 22
Greyhound Corp.. preferred A (quar.)
Mar. 15 Mar. 1
$1
Gulf States Utilities Co., $6 pref. (quar.)
Mar. 15 Mar. 1
$1
$545 preferred (quarterly)
15c Mar. 1 Feb. 15
Hale Bros. Stores (quar.)
25c Mar.30
Rabid Co.(quar.)
25c Mar.30
Extra
$144 Mar.30
7% preferred (guar.)
5500 Apr. 2 Mar. 15
Hamilton Cotton, Ltd., preferred
$145 Apr. 1 Mar. 15
Hammermill Paper. pref.(quar.)
100 Mar. I Feb. 15
Hancock Oil of California. A & B (quar.)
1245c Mar. I Feb. 18
Hanes(P. II.) Knitting Co.(quar.)
1245c Mar. 1 Feb. 18
Class B (quarterly)
25c Mar. 11 Mar. 5
Hanna (M. A.) Co.(quar.)
$144 Mar.20 Mar. 3
Preferred (quar.)
25c Mar. 1 Feb. 11
Harbison-Walker Refractories Co
34 Apr. 20 Apr. 8
Preferred (quar.).
X Mar. 1 Feb. 15
Hardesty (II.) Mfg. Co.,7% pref.(quar.)
$134 June 1 May 15
7% preferred (quarterly)
X Sept. 1 Aug. 15
7% preferred (quarterly)
5151 Dec. 1 Nov. 5
7% preferred (quarterly)
$1 Feb. 28 Feb. 20
Hartford & Connecticut Western RR.(s-a)
20c Feb. 28 Feb. 21
Hawaiian Agricultural Co. (monally)
20c Mar. 15 Mar. 5
Hawaii Consol. Ry„ 7% pref. A (quar.)
20c June 15 June 5
7% preferred A (quarterly)
20c Sept. 15 Sept. 5
7% preferred A (quarterly)
20c Dec. 15 Dec. 5
7% preferred A (quarterly)
25c Mar. 15 Mar. 1
Hazeltine Corp
25c Mar. 1 Feb. 18
Helena Rubinstein, Inc., pref. (guar.)
25c Mar. 1 Feb. 18
Hoyden Chemical Corp. (guar.)
10c Mar. 29 Mar. 22
Hibbard, Spencer. Bartlett& Co.(monthly). _
50c Mar. 1 Feb. 15
Hires (Chas. E.) Co. class A common (guar.).—
3745c Mar. 1 Feb. 15
Hobart Manufacturing class A (quar.)
$1 Feb. 26 Feb. 16
Holland Land (liquidating)
1% Feb. 25 Feb. 8
Hollinger Consol. Gold Mines (monthly)
1% Feb. 25 Feb. E
Extra
gl Feb. 25 Feb. 20
Homestake Mining (monthly)
$2 Feb. 25 Feb. 20
Extra
15c
Mar. 10 Feb. 28
(monthly)
Co.
Plantation
Honolulu
$144 Mar. 1 Feb. 8
Horn & Hardart of N. Y., pref. (quar.)
14154 Mar. 1 Feb. 20
Huntington Water Corp.7% pref.(quar.)
$145 Mar. 1 Feb. 20
6% preferred (quar.)
10c Mar. 5 Feb. 28
_
Hutchinson Sugar Plantation Co.(monthly)
$145 Mar. I Feb. 20
pref.
(quar.)
Illinois Water Service 6%
Imperial Tobacco Co.of Great Britain & Ireland
Sr 745% Mar. 1 Feb. 13
Ordinary register
Sr Is. 6d. Mar. 1 Feb. 13
Ordinary register (extra)
Sr 745% Mar. 8 Feb. 13
Amer. deposit receipts for ord. reg
Amer.deposit receipts for ord.reg.(extra)_ w Is. 6d. Mar. 8 Feb. 13
Indiana Hydro-Elec. Power,7% cum. pref.(qu.) 8734c Mar. 15 Feb. 28
Indianapolis Water Co.5% cum. pref.(quar.)__ $134 Apr. 1 Mar. 12a
15c Mar. 1 Feb. 15
Industrial Power Security (quar.)
Sc Mar. 1 Feb. 15
Extra
50c Mar. 1 Feb. 4
Ingersoll-Rand
25c Mar. I Feb. 14
Inland Steel (quar.)
7c Mar. 20 Mar. 12
Insuranshares Certificates, Inc. (semi-ann.)
*1 3.4 Apr. 10 Mar. 22
International Business Machine Corp. (quar.)_ _
$144 Mar. 1 Feb. 5
International Harvester preferred (quar.)
International Milling Co. orig. pref. series (qu.).. $1 X Mar. 1 Feb. 18
$145 Mar. 1 Feb. 18
Preferred series A (quar.)
15c Mar. 20 Mar. 1
International Mining Corp
r15c Mar.30 Feb. 28
International Nickel Co.,common
/41 Apr. 3 Mar. 15
International Power Co.. 7% 1st preferred
60c Mar. 1 Feb. 15
International Safety Razor, class A (quar.)_ _
$1 Mar. 9
Inter-Ocean Re-Insurance (semi-ann.)
500 May 15 May 1
Interstate Hosiery Mills (quar.)
50c Aug. 15 Aug. I
Quarterly
50c Nov. 15 Nov. 1
Quarterly
$2 Apr. 1 Mar. 15
Intertype Corp..8% 1st preferred (quar.)
Investment Trust of N. Y.. Inc.—
8c Feb. 28 Feb. 1
Collateral trustee shares,series A (semi-ann.)_
25c Mar. 1 Feb. 9
Iron Fireman Mfg.(quar.)
25c June 1 May 10
Quarterly
25c Sept. 2 Aug. 10
Quarterly
25c Dec. 2 Nov. 9
Quarterly
Ironwood & Bessemer Ry.& Lt.Co.,7% pref.(qu. $131 Mar. 1 Feb. 15
100 Apr. 1 Mar. 15
(quar.)_
common
Inc.,
Irving Air-Chute Co.,
Jantzen Knitting Mills, preferred (quarterly)_ - $1 54 Mar. 1 Feb. 25
35c Mar. 10
Jefferson Lake Oil Co., Inc.,7% pref.(semi-an.)
75c Apr. 15 Apr. 1
Jewel Tea Co., Inc. coin. (guar.)
1245c Apr. 1 Mar. 5
Kelvinator Corp
15c Mar.30 Mar. 20
(quar.)
Parchment
Kalamazoo Vegetable
15c June 30 June 20
Quarterly
15c Sept.30 Sept. 20
Quarterly
15c Dec. 30 Dec. 30
Quarterly
75c Mar. 15 Feb. 28
Katz Drug Co. (quarterly)
El% Apr. 1 Mar. 15
Preferred (quarterly)
5151 Apr. 1 Mar. 9
Kaufman Dept. Stores preferred (quar.)
h$7 Mar. 1 Feb. 19
Kemp (Thomas), 7% special preferred
Kendall Co.,cum.partic. pref.ser. A (quar.).__ $145 Mar. 1 Feb. 100
50c Mar. 11 Mar. 1
Keystone Steel & Wire
25c Apr. 1 Mar. 20
Klein (D. Emil.) Co.(quarterly)
1245c Apr. 1 Mar. 20
Extra
1245c July 1 June 20
Extra
75c June 1
Knabb Barrel Co., Inc.. pref.(s.-a.)
34 Feb. 28 Feb. 21
Koraeh (8.1
Mar.31 Mar. 12
25c
Kresge (S. S.) Co
$154 Mar.31 Mar. 12
Preferred (guar.)
40c Mar. I Feb. 8
Kroger Grocery & Baking (quar.)
$145 Apr. 1 Mar. 20
6% preferred (quarterly)
$151 May 1 Apr. 19
7% preferred (quarterly)
$144
Mar. 1 Feb. 15
(qu.)
pref.
Lake Superior DLtrict Power CO.7%
$145 Mar. 1 Feb. 15
6% preferred (quar.)
$1 31 Mar. 15 Mar. 5
Landis Machine preferred (quar.)
June 15 June 5
51
7% preferred (quarterly)
$14 Sept. 15 Sept. 5
7% preferred (quarterly)
$131 Dec. 15 Dec. 5
7% preferred (Quarterly)
$1 Feb. 28 Feb. 19
Lanston Monotype (guar.)
8745c Apr. 1 Mar. 14
Lehigh Portland Cement Co., preferred
3745c Mar. 1 Feb. 15
Lam & Fink Prod Co., corn. (quar.).- -300 Mar. 15 Feb. 28
Libbey-Owens-Ford Glass (quar.)
40c Mar. 1 Feb. 1
Life Savers Corp. (quar.)
$1 Mar. 1 Feb. 15
Liggett St Myers Tobacco Co.common (quar.)
$1 Mar. 1 Feb. 15
Common (extra)
$1 Mar. I Feb. 15
Common B (quar.)
$1 Mar. 1 Feb. 15
Common B (extra)
60c Aug. 8 Aug. 2
Lincoln National Life Insurance (semi-ann.)--25c Mar. 1 Feb. 21
Lincoln Stores (quarterly)
$131 Mar. 1 Feb. 21
Preferred (quarterly)
15c Mar. I Feb. 15
Link Belt
$134 Apr. 1 Mar. 15
645% preferred (guar.)
50c Mar. 9 Feb. 25
Little Miami RR. Co. spec. gtd. (quar.)
50c June 10 May 24
Special guaranteed (quarterly)
SI Mar. 9 Feb. 25
Original capital
$1.10 June 10 May 24
Original capital
r25c Mar. 1 Feb. 12
Loblaw Groceterias, A & B (quar.)
$345 Mar.30 Mar.30
Lockhart Power Co.,7% pref. (5.-a.)
Loose-Wiles Biscuit, preferred (quarterly)
$154 Apr. 1 Mar. 18
Lord & Taylor, 1st pref. (quar.)
$145 Mar. 1 Feb. 16
$145 Feb. 25 Jan. 31
Louisville & Nashville RR.(semi-ann.)
$145 Mar. 1 Feb. 9
Ludlow Mfg. Associates (quar.)
Lunkenheimer Co.645% pref(quarterly)
$144 Apr. 1 Mar. 21
$1
July 1 June 20
6 % preferred (quarterly)
645% preferred (quarterly)
$134 Oct. 1 Sept.20
$155 Jan. 1 Dec. 21
645% preferred (quarterly)
Macassa Mines. Ltd
5c Mar. 1 Feb. 9
Macy (R. H.) & Co.. Inc., corn. (quar.)
50c Mar. 1 Feb. 8
$145 May 15 May 5
Magnin (I.) & Co.,6% pref. (quar.)
6% preferred (quarterly)
$134 Aug. 15 Aug. 5
$145 Nov. 15 Nov. 5
6% preferred (quarterly)
11
1262
Financial Chronicle
Name of Company
Per
Share
When Holders
Payable of Record
Manhattan Shirt (guar.)
150 Mar. 1 Feb. 11
Mapes Consolidated Mfg.(guar.)
75e Apr. 1 Mar. 15
Quarterly
75c July 1 June 14
May Department Stores Co. (guar.)
40c Mar. 1 Feb. 15
May Hosiery Mills, preferred
h25c Mar. 1 Feb. 15
Preferred (quarterly)
$1 Mar. 1 Feb. 15
McClatchy Newspapers,7% pf.(qu.)
4314c Mar. 1 Feb. 28
7% preferred (quarterly)
438
%c June 1 May 31
7% preferred (quarterly)
4314c Sept. 1 Aug. 31
7% preferred (quarterly)
43"ic Dec. 1 Nov.30
McColl Frontenac Oil (quar.)
r20c Mar. 15 Feb. 15
McIntyre Porcupine Mines (guar.)
50c Mar. 1 Feb. 1
McWilliams Dredging Co
50c Mar. I Feb. 15
Metal Textile
preferred (quarterly)
d81%c
Mar. 1 Feb. 20
Metro-Goldwyn
Corp.
Mayer Pictures,'7% pref.(qu.)_ 474c Mar. 15 Feb. 28
Metropolitan Edison. $7 pref. (guar.)
3114 Apr. 1 Feb. 28
$6 preferred (quarterly)
Apr. 1 Feb. 28
$1
.
P $5 preferred (quarterly)
5114 Apr. 1 Feb. 28
Middlesex Water (guar.)
75c Mar. 1 Feb. 25
Milwaukee Electric Ry.& Light Co.$6 pf.(gu.)- $14 Mar. 1 Feb. 15
Minneapolis Gas Light Co. (Del.)7% preferred ;quarterly)
$114 Mar. I Feb. 20
6% preferred (quarterly)
$114 Mar. 1 Feb. 20
Mississippi Valley Pub. Service Co.$154 Mar. 1 Feb. 19
77 Preferred series A (quarterly)
Mitchell (J. S.), Ltd
Si Mar. 1 Feb. 15
Model Oils. Ltd
3c Mar. 11 Feb. 18
Monarch Knitting Mills. Ltd.,7% pref
55114 Apr. 1 Mar. 15
Monsanto Chemical (guar.)
25c Mar. 15 Feb. 25
Montreal Loan & Mortgage (quar.)
624c Mar. 15 Feb. 28
Moore Dry Goods (guar.)
$114 Apr. 1 Apr. 1
Quarterly
514 July 1 July 1
Quarterly
514 Oct. 1 Oct. 1
Quarterly
$14 Jan. 1 Jan. 1
Morrell (John) & Co.(quar.)
90c Mar, 15 Feb. 23
Morns (Philip) Consol. (liquidating)
50c
Feb. 7
Morris 5& 10c to $1 Stores,Inc..7% pref.(qu.)_ $1% Apr. 1 Mar. 20
77. preferred (quarterly)
8114 July 1 June 20
7% preferred (quarterly)
$14 Oct. 1 Sept.20
Morris Plan Insurance Society, (guar.)
$I Mar. 1 Feb. 23
Quarterly
51 June 1 May 27
Quarterly
$1 Sept. 1 Aug. 27
Quarterly
51 Dec. 1 Nov. 26
Motor Finance Corp.(guar.)
20c Feb. 28 Feb. 21
Muncie Water Works Co.8% pref.(guar.)
$2 Mar. 15 Mar. 1
Murphy (G. C.) Co. (guar.)
40c Mar. 1 Feb. 19
Muskogee 00.6% cumulative preferred (quar.)_ $14 Mar. 1 Feb. 16
Nashua Gummed & Coated Paper.7% pf.(qu.)
$114 Apr. 1 Mar. 25
National Automotive Fibers $7 preferred
55131 Mar. 1 Feb. 15
National Bearing Metal Corp. 77
0 pref
414 May 1 Apr .20
National Biscuit, preferred (guar.)
$131 Feb. 28 Feb. 14
National Bond Se Share Corp
25c Mar. 15 Feb. 28
National Container Corp. $2 pref. (guar.)
50c Mar. 1 Feb. 15
National Lead. pref. A (guar.)
51% Mar. 15 Mar. 1
National Power & Light Co. common (quar.)
20c Mar. 1 Feb. 4
National Telephone St Telegraph A (guar.)
5131 Mar. 1 Feb. 20
Nebraska Power,7% prof.(guar.)
$131 Mar. 1 Feb. 14
6% preferred (quarterly)
$14 Mar. 1 Feb. 14
Neisner Bros., Inc. (guar.)
25c Mar. 15 Mar. 1
Extra
50c Mar. 15 Mar. 1
Newberry (J. J.) Co.(guar.)
40c Apr. 1 Mar. 16
7% preferred (quar.)
$114 Mar. 1 Feb. 16
New Bradford 011
10c Mar. 15 Feb. 15
New Jersey Pow.& Lt. Co.,$6 pf.(guar.)
814 Apr. 1 Feb. 28
$5 preferred (quarterly)
$1Y Apr. 1 Feb. 28
New Method Laundry 64% pref.(guar.)
$14 Mar. 1 Feb. 16
New River Co. (guar.)
$114 Mar. 1 Feb. 16
New Rochelle Water 7% pref. (guar.)
$131 Mar. 1 Feb. 20
New World Life Ins. (Seat,le, Wash.)
40c Mar. 1 Feb. 13
New York Transportation (guar.)
50c Mar. 28 Mar. 15
Niagara Share Corp. of Md., pref. A (quar.)_ - - $14 Apr. 1 Mar. 15
Nineteen-Hundred Corp."A" (guar.)
50c May 15 Apr. 30
"A"(guar.)
50c Aug. 15 July 31
"A" (guar.)
50c Nov. 15 Oct. 31
Norfolk & Western (guar.)
$2 Mar. 19 Feb. 28
Extra
$2 Mar. 19 Feb. 28
North American Edison Co. pref. (guar.)
Mar. 1 Feb. 15
$I
North American Elevators 1st pref
h$lo
t Mar. 1
North American Match
$ Mar. I Jan. 31
North River Ins. Co. (guar.)
15c Mar. 11 Mar. 1
Extra
10c Mar. 11 Mar. 1
Northern RR. Co. of N.J.4% gtd.(guar.)
$I Mar. 1 Feb. 19
4% guaranteed (guar.)
SI June I May 20
4% guaranteed (guar.)
$1 Sept. 1 Aug. 20
4% guaranteed (guar.)
31 Dec. 1 Nov. 21
North Pennsylvania RR. (guar.)
$1 Feb. 25 Feb. 18
North Star Oil, Co., 7% preferred
h174c Mar. I Feb. 15
Northwestern Public Service, 7% pref. (quar.)
874c Mar. 1 Feb. 20
6% preferred (guar.)
75c Mar. 1 Feb. 20
Norwalk Tire & Rubber,pref.(guar.)
874c Apr. 1 Mar. 21
Nova Scotia Light & Power, 6% pref. (guar.)_ _ $131 mar. 1 Feb. 16
Oahu Sugar Co.(monthly)
100 Mar. 15 Mar. 6
Ogilvie Flour Mills preferred (guar.)
$1 31 Mar. 1 Feb. 20
Ohio Edison Co.. $5 Preferred (guar.)
$I% Apr. 1 Mar. 15
$6 preferred (quarterly)
$14 Apr. 1 Mar. 15
$6.60 preferred (quarterly)
81.65 Apr. 1 Mar. 15
$7 preferred (quarterly)
8131 Air. 1 Mar. 15
$7.20 preferred (quarterly)
$1.80 Apr. 1 Mar. 15
Ohio l'ower.6% preferred (guar.)
$14 Mar. 1 Feb. 8
Ohio Public Service Co.,7% preferred (monthly) 58 I-3c Mar. 1 Feb. 15
67
0 preferred (monthly)
50c Mar. 1 Feb. 15
5% preferred (monthly)
41 2-3c Mar. 1 Feb. 15
Oklahoma Gas & Elec. 6% Pref. (guar.)
5131 Mar. 15 Feb. 28
7% preferred (guar.)
$1
Mar. 15 Feb. 28
Omnibus Corp., pref.(guar.)
$ Apr.1 Mar. 15
133 Geary Corp
50c Feb. 25 Feb. 15
Ontario Mfg. Co.(quarterly)
25c Mar. 30 Mar. 20
Preferred (quarterly)
$114 Mar.30 Mar. 20
Oshkosh Overall Co.,$2cony. pref.(guar.)
50c Mar. 1 Feb. 20
Page-Ilersey Tubas, Ltd.(guar.)
r75c Apr. 1 Mar. 15
Preferred (quarterly)
4131 Apr. I Mar. 15
Parirer Pen Co., common
15c Mar. 1 Feb. 15
Patterson-Sargent (quarterly)
25c Mar. 1 Feb. 15
Fender (David) Grocery,cony. A (guar.)
874c Mar. 1 Feb. 20
Penick & Ford (guar.)
75c Mar. 15 Mar. I
Penn State Water, $7 preferred (guar.)
El% Mar. 1 Feb. 20
Penna Gas & Elec. Corp.(Dela.) A (guar.)
374cd Mar. 1 Feb. 20
7% preferred (quarterly)
$114 Apr. 1 Mar. 20
$7 preferred (quarterly)
5114 Apr. 1 Mar. 20
Pennsylvania Power Co., $6.60 pref. (monthly)
550 Mar. I Feb. 20
$6 preferred (guar.)
$14 Mar. 1 Feb. 20
Pennsylvania RR. Co
50c Mar. 15 Feb. 15
Prentice Hall (quarterly)
40c Ma
1 Feb. 19
Preferred (quarterly)
75c Mar. 1 Feb. 19
Peoples Telep. Corp., preferred
$114 Mar. 1 Feb. 28
Petroleum Oil & Gas Co
Sc Mar. 1 Feb. 20
Pfaudler Co.,6% preferred iquar)
614 Mar. 1 Feb. 20
Philadelphia Co.,5% pref. (s.-a.)
25c Mar. 1 Feb. 9
Philadelphia Suburban Water Co., pref. (guar.) $1
Mar. 1 Feb. 10a
Philadelphia & Trenton RR.(guar.)
Apr. 10 Mar.30
S2
Quarterly
$214 July 10 June 30
Quarterly
Oct. 10 Sept.30
$2
Philips Petroleum
25c Mar. 1 Feb 5
Phoenix Finance Corp., 8% pref. (guar.)
50c Apr. 10 Mar. 31
87 preferred (quarter.Y)
50c July 10 June 30
8% preferred (quarterly)
50c Oct. 10 Sept.30
8% preferred (quarterly)
50c Jan. 10 Dec. 31
Phoenix Hosiery, 7% 1st preferred
874c Mar. 1 Feb. 13
Photo Engravers & Electrotypers (s.-a.)
r50c Mar. 1 Feb. 15
Pillsbury Flour Mills (guar.)
40c Mar. 1 Feb. 15
Pioneer Mills Co.. Ltd. (monthly)
10c Mar. 1 Feb. 21
Name of Company
Feb. 23 1935
Per
Share
When Holders
Payable of Record
Pittsburgh, Bessemer & Lake Erie (s.-a.)
75c Apr. 1 Mar. 15
Pittsburgh Ft. Wayne & Chicago Ry. (quar.)
$1% Apr. 1 Mar. 9
Quarterly
$1% July 1 June 10
Quarterly
$1.% Oct. 1 Sept. 10
Quarterly
51% Jan. 2 Dec. 10
7% preferred (guar.)
$1.% Apr. 2 Mar. 9
7% preferred (guar.)
$1% July 2 June 10
7% preferred (guar.)
$1% Oct. 8 Sept. 10
7% preferred (quar.)
$1% Jan. 7 Dec. 10
Pittsburgh Youngstown & Ashtabula RR.
7% preferred (guar.)
$1% Mar. 1 Feb. 20
7% preferred (guar.)
$1% June 1 May 20
7% preferred (quar.)
$1% Sept. I Aug. 20
7% preferred (guar.)
$1% Dec. 1 Nov. 20
Plymouth Fund. Inc.. class A
14c Mar. 1 Feb. 15
Ponce Electric Co.,7% pref. (guar.)
$1% Apr. 1 Mar. 15
Portland & Ogdensburg RR.(quar.)..
50c Feb. 28 Feb. 20
Potomac Electric Power Co.
6% preferred (guar.)
Mar. 1 Feb. 15
% preferred (guar.)
$1% Mar. 1 Feb. 15
Pressed Metals of Amer.,Inc., common
Apr. 1 Feb. 28
Procter & Gamble Co. preferred (guar.)
Mar. 15 Feb. 250
Protective Life Insurance (s.-a.)
$3 July 1 July 1
Public Electric Light, 6% pref. (guar.)
$1.4 Mar. 1 Feb. 20
Public Service Co. of Colorado, 7% pref. (mo.)_ 58 1-3c Mar, 1 Feb. 15
6% preferred (monthly)
50c Mar. 1 Feb. 15
5% preferred (monthly)
41 2-3c Mar. 1 Feb. 15
Public Service of N. J. (guar.)
70c Mar.30 Mar. 1
$5 preferred (quarterly)
$1 "" Mar.30 Mar. 1
8% preferred (quarterly)
Mar.30 Mar. 1
7% preferred (quarterly)
$14 Mar.30 Mar. 1
6% preferred (monthly)
50c Feb. 28 Feb. 1
6% preferred (monthly)
50c Mar.30 Mar. 1
Puritan Ice,common
$8 Apr. 1 Dec. 31
Purity Bakeries (quarterly)
250 Mar. 1 Feb. 21
Quaker Oats Co.,67 preferred (quarterly)
$1.4 Feb. 28 Feb. 1
Radio Corp. of America, A pref. (guar.)
Apr. 1 Mar. 1
1%
Rainier Pulp & Paper.$2 class A
Mar. I Feb. 10
$2 class A
h50c June 1 May 10
Rapid Electrotype
50a Mar. 15 Mar. 1
Reading Co. 1st preferred (quarterly)
50a. Mar. 14 Feb. 21
Reeves (Daniel) Inc. (guar.)
124c Mar. 15 Feb. 28
preferred
(guar.)
614%
$14 Mar. 15 Feb. 28
Reliance International $3 pref.(guar.)
50c Mar. 1 Feb. 20
Reliance Mfg.(Ill.) (guar.)
15c May 1 Apr. 20
Preferred (guar.)
$1% Apr. 1 Mar. 21
Reno Gold Mining Ltd. (guar.)
3c Apr. 1 Feb. 28
Reynolds Metals Co. (quarterly)
25c Mar. 1 Feb. 150
Rich's. Inc. 614% preferred (guar.)
$14 Mar.30 Mar. 15
Rike-Kumler Co., corn.(guar.)
25c Mar. 11 Feb. 23
Rochester Gas & Electric,7% pref. B (quar.)--- $1% Mar. 1 Feb. 11
6% preferred C (quarterly)
$14 Mar. 1 Feb. 11
6% preferred (quarterly)
$114 Mar. 1 Feb. 11
Rolland Paper Co.,6% prof. (guar.)
$14 Mar. 1 Feb. 15
St. Joseph Lead Co
10c Mar.!20 Mar. 8
St. Louis Rocky Mountain St Pacific RR. Co.
Common (quarterly)
25c April 20 April 5a
Preferred (quarterly)
$14 April 20 April 5a
Preferred (quarterly)
$1% July 20 July 5
Preferred (quarterly)
$14, Oct. 21 Oct. 50
San Jose Water Works,6% preferred (quar.).._ 37Sia Mar. I Feb. 20
Savannah Electric & Power8% preferred A (guar.)
$2 Apr. 1 Mar. 15
74.70 preferred B (guar.)
$14 Apr. I Mar. 15
7% preferred C (guar.)
$1% Apr. 1 Mar. 15
preferred
D (guar.)
614%
$14 Apr. 1 Mar. 15
Savannah Gas Co., 7% pref. (guar.)
Mar. 1 Feb. 20
43
Second Investors Corp.(R.I.), $3 pref.(qu.)--75c Mar. 1 Feb. 15
Second Standard Royalties, preferred
be Mar. 1 Feb. 20
Second Twin Bell Syndicate (monthly)
20c Mar. 15 Feb 28
Secord (Laura) Candy Shops (guar.)
7tc Mar. 1 Feb. 15
Seeman Bros.. Inc. common (extra)
50c May 1 Apr. 15
Selected American Shares (semi-ann.)
2.1c Mar. 15 Feb. 28
Shenango Valley Water,6% pref.(qu.)
Mar. 1 Feb. 20
$I
Sherwin-Williams Co. preferred (quarterly)
Mar. 1 Feb. 15
- $1
Sioux City Stockyards Co.$14 part ref(guar.) 374c May 15 May 14
$14 participating preferred (guar.
3731c Aug. 15 Aug. 14
$14 participating preferred (quar.
3731c Nov. 15 Nov. 14
Siscoe Gold Mines(guar.)
Mar. 15 Feb. 28
Extra
3c Mar. 15 Feb. 28
Smith (S. Morgan) Co. (quarterly)
$1 May I May 1
Quarterly
$1 Aug. 1 Aug. 1
Quarterly
$1 Nov. 1 Nov. 1
Socony-Vacuum Oil Co
150 Mar,15 Feb. 20a
South Carolina Power Co., $G pref. (guar.)-$14 Apr. 1 Mar. 15
South Calif. Ed Co.. Ltd.. 7% sor A pref(guar.) 43%c Mar. 15 Feb. 20
6% series B preferred (guar.)
374c Mar. 15 Feb. 20
Southerland Paper Co., common (bi-monthly) _
10cd Feb. 28 Feb. 18
Extra
5cd Feb. 28 Feb. 18
Southern Fire Insurance Co.(semi-annual)
50c Mar. 1 Feb. 15
Southern Pipe Line Co
15c Mar. 1 Feb. 15
Southern Ry.(Great Britain)
4%
Preferred
Staley (A. E.) Mfg. Co
Ig Feb. 28 Feb. 18
Standard Brands, Inc.. common (quar.)
25c Apr. 1 Feb. 25
$7 cumul. preferred. series A (eller.)
Feb. 25
Standard Coosa-Thatcher. 7% pref.(quar.)___ _ $
314
1 Ap
pr. 15
1 Apr. 15
Standard Oil Co. of California
25c Mar. 15 Feb. 15
Standard Oil (Indiana )(guar.)
Feb. 15
Standard Oil Co. of N. J
2
n5c Mar.
. 15 Feb. 15
Sterling Products, Inc. (quar.)
gi
Mxt r
Feb. 156
Strawbridge & Clothier. $6 pref. series A (qu.)_ _
Feb. 14
31 Mar.
Sun 011 Co.(guar.)
25c Mar. 15 Feb. 25
6% preferred (guar.)
1111,4
i rNei
lar.
.
Feb. 11
Susquehanna Utilities Co.. 1st preferred (guar.) $
Feb. 20
Telephone Investments Corp.(monthly)
25c Mar. 1 Feb. 21
Tennessee Electric Power Co.
57 1st preferred (guar.
5131 Apr. 1 Mar. 15
6° let preferred guar.
5131 Apr. 1 Mar. 15
7% 1st preferred guar.
514 Apr 1. Mar. 15
7.2% 1st preferred (guar.)
$1.80 Apr. 1 Mar. 15
50c Mar. 1 Feb. 15
6% preferred (monthly)
6% preferred (monthly)
50c Apr. 1 Mar. 15
60c Mar. 1 Feb. 15
7.27 preferred (monthly)
(10c Apr. 1 Mar. 15
7.2% preferred (monthly)
Terre Haute Water Wks, Corp.7% pref.(qu.)_ _ $131 Mar. 1 Fob. 20
Texas Utilities, 7% preferred (guar.)
$1' Mar. 1 Fob. 21
Tex-O-Kan Flour Mills, pref.(guar.)
$1
Mar. 1 Feb. 15
Preferred (quarterly)
$131 June I May 15
Third Twin Bell Syndicate (bi-monthly)
10c Feb. 28 Feb. 27
Tide Water Power. 56 pref. (guar.)
$114 Mar. 1 Feb. 10
Timken Detroit Axle, 7% pref. (guar.)
$125c Mar.1
.Mar. 5 Feb. 20
Timken Roller Bearing Co
Feb. 18
Tip-Top Tailors 7% pref. (guar.)
$1% Apr. 1 Mar. 20
Toledo Edison Co.,7% preferred (monthly).... 58 1-3c Mar, I Feb. 15
6% preferred (monthly)
50c Mar. 1 Feb. 15
41 2-3c Mar. 1 Feb. 15
5% preferred (monthly)
Trans-Lux Daylight Picture Screen Corp
10c Mar. 1 Feb. 15
Tri-State Telep. & Teleg.6% pref. (guar.)
15c Mar. 1 Feb. 15
Trustee Standard Oil Shares, series B coupon _ _ 10.79c Mar. 1
Twin Bell 011 Syndicate (monthly)
$2 Mar. 5 Feb. 28
Underwood Elliott Fisher Co.common (quar.),_
50c Mar.30 Mar. 120
Preferred (guar.)
$131 Mar.30 Mar. 12a
Union Pacific R.R. Co
$14 Apr. 1 Mar. 1
Preferred (semi-annual)
$2 Apr. 1 Mar. 1
Union Tank Car Co.(quarterly)
30c Mar. 1 Feb. 15
Union Twist Drill (quar.)_
250 Mar. 28 Mar. 20
Preferred (guar.)
$131 Mar. 28 Mar. 20
United Biscuit Co.of America.common (guar.)_
40c Mar. 1 Feb. 7
Preferred (quarterly)
$1% May 1 Apr. 15
United Dyewood preferred (guar.)
51% Apr. 1 Mar. 14
$114
r2
Financial Chronicle
Volume 140
When Holders
Per
Share. Payable. of Record.
Name of Company.
United Elastic (quar.)
10c
United Gas Improvement
25c
Preferred (quarterly)
United Light & Itys. (Del.)-7% pr. pref (mo.)_ 58 1-3c
6.36% prior preferred (monthly)
53c
6% prior preferred (monthly)
50c
7% prior preferred (monthly)
58 1-3c
6.36% prior preferred (monthly)
53c
6% prior preferred (monthly)
50c
United New Jersey RR.& Canal (guar.)
$2 ti
United States Envelope
$234
Preferred (semi-annual)
$355
United States Freight Co
25e
United States Pipe & Fdy Co.(quar.)
l2;ic
Common (quar.)
123ic
Common (guar.)
12c
Common (quar.)
125ic
1st preferred (guar.)
30c
1st preferred (quar.)
30c
1st preferred (quar.)
30c
1st preferred (quar.)
30c
United States Playing Card (quar.)
25c
Extra
25c
United States Steel, preferred (guar.)
50c
United States Sugar Corp., pref. (quar.)
Preferred (quarterly)
31 si
Upper Michigan I'ower & Light,6% pref.(quar.)
6% preferred (quarterly)
6% preferred (quarterly)
$1
6% preferred quarterly
$13
Utica Chenango & Susquehanna Valley RR.—
Guaranteed (semi-annual)
Utica Clinton & Binghamton Ry.—
Debenture stock (semi-ann.)
S23,5
Debenture stock (semi-ann.)
$2
Utica Knitting, 7% preferred
h$3
Van Raalte Co., 1st pref. (quar.)
SPA
Vapor Car Heating Co., Inc
$2
7% preferred (quarterly)
$1%
Veeder Root (quarterly)
50c
Vermont & Boston Telephone (semi-ann.)
$2
Vick Chemical Co. (quarterly)
500
Extra
10c
Virginia Electric & Power, $6 preferred (quar.)_
$135
Virginia Fire & Marine Insurance Co
75c
Vogt Mfg.(quarterly)
25c
Vulcan Detiniaing, preferred (guar.)
Preferred (guar.)
1j%
Preferred (quar.)
P4%
Walker (II.), Gooderham & Worts. pref.(qu.)
r 5c
Warren (Northam) Corp., $3 pref. (guar.)
75c
Washington Ry.& Electric Co.(quar.)
$3
5% preferred (quarterly)
SIN;
5% preferred (quarterly)
UK,
Weill (Raphael) & Co. (semi-ann.)
$4
$s
Mar. 23 Mar. 5
Mar. 30 Feb. 28
Mar.30 Feb. 28
Mar. 1 Feb. 15
Mar. 1 Feb. 15
Mar. 1 Feb. 15
Apr. 1 Mar. 15
Apr. 1 Mar. 15
Apr. 1 Mar. 15
Apr. 10 Mar. 20
Mar. 1
Mar. 1
Mar. 1 Feb. 18
Mar.30
Apr.
July 20 June 29
Oct. 20 Sept. 30
Jan. 20 Dec. 31
Apr. 20 Mar. 30
July 20 June 29
Oct. 20 Sept. 30
Jan. 20 Dec. 31
Apr. 1 Mar. 21
Apr. 1 Mar. 21
Feb. 27 Feb. 1
Apr. 5 Mar. 10
July 5 June 10
May 1 Apr. 26
Aug. 1 July 27
Nov. 1 Oct. 26
2-1-36 Jan. 27
May
1 Apr. 15
June 28 June 16
Dec. 26 Dec. 16
Mar. 18 Feb. 18
Mar. 1 Feb. 14
Mar. 9 Mar. 1
Mar. 9 Mar. 1
Mar.31 Feb. 18
July 1 June 15
Mar. 1 Feb. 15
Mar. 1 Feb. 15
Mar. 20 Feb. 28
Feb. 23 Feb. 12
Mar. 1 Feb. 15
Apr. 20 Apr. 10
July 20 July 10
Oct. 19 Oct. 10
Mar. 15 Feb. 22
Mar. 1 Feb. 15
Mar. 1 Feb. 16
Mar. 1 Feb. 16
June 1 May 15
Mar. 1 Feb. 1
Weekly Return of the New York City
Clearing House
The weekly statement issued by the New York City
Clearing House is given in full below:
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR WEEK ENDED SATURDAY. FEB. 16 1935
Clearing House
Members
Surplus and
Undiviekd
Profits
• Capital
Bank of N Y & Trust Co_
Bank of Manhattan Co_
National City 13ank____
Chemical Bk & Trust Co
Guaranty Trust Co
Manufacturers Trust Co
Cent Hanover Bk & Tr Co
Corn Exch Bank Tr Co_
First National Bank_
Irving Trust Co
Continental Ilk & Tr Co_
Chase National Bank_
Fifth Avenue Bank
Bankers Trust Co
Title Guar & Trust Co
Marine Midland Tr Co
New York Trust Co_ _
Comm'l Nat Ilk & Tr Co
Public Nat ilk & Tr Co..
S
6,000,000
20,000,000
127,500,000
20,000,000
90,000,000
32,935,000
21,000,000
15,000,000
10,000,000
50,000,000
4,000,000
150,270,000
500,000
25,000,000
10,000,000
5,000,000
12,500,000
7,000,000
8,250,000
Net Demand
Deposits,
Average
5
S
10,298.100
111,948,000
25,431,700
305,849.000
38,273,300 a1,047.113,000
48,104,400
365,506,000
177,294,700 b1,077,620,000
10.297,500
285,863,000
61,512,800
609,438,000
16,124,900
199,846,000
89,218,100
410,077,000
57,819,800
407,966.000
3,608,900
32,277,000
68,839,400 c1,407.042,000
3,329,600
44,454,000
62,018.800 056.545,000
8,160,400
14,141,000
7,503,200
58,234,000
21,361,500
238,033,000
7,644,700
55,299,000
5,148,200
52,662,000
Time
Deposits,
Average
$
6,327,000
29,465,000
152,960,000
19,172,000
55,421,000
103,754,000
27,073,000
20,813,000
12,677,000
4,519,000
1,939,000
65,601,000
352,000
18,221,000
258,000
3.301.000
15,700,000
1,399,000
37,840,000
Tntala
Rid 0c9nnn 791 non non 7 R70012 nnn n'a 7nonnn
• As per official reports: National. Dec. 31 1934; State, Dec. 31 1934; trust
companies, Dec. 31 1934.
Includes deposits in foreign branches as follows: a $199,550,000; b 563,584,000:
c $82,580,000: d $26,480,000.
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which
are not members of the New York Clearing House. The
following are the figures for the week ended Feb. 15:
rNs—
TI IONS NOT IN TIIE CLEARING HOUSE WITH THE CLOSING
OF BUSINESS FOR TIIE WEEK ENDED FRIDAY. FEB. 15 1935
NATIONAL AND STATE BANKS—AVERAGE FIGURES
Loans
Other Cash Res. Dep., Dep. Other
Disc. and Including N. Y. and Banks and
Investments Bank Notes Elsewhere Trust Cos.
Manhattan
$
Grace National
22,780,000
Trade Bank of N.Y. 3,947,184
Brooklyn—
PoNlnIn'a NOInnal__
4.314.500
s
s
96,200
147,435
3,325,100
903,821
100 000
060.000
Gross
Deposits
s
s
2,396,500 23,818,400
221,524 4,317,231
240.000
4 079 nnn
TRUST COMPANIES—AVERAGE FIGURES
Loans,
Disc. and
Investments
Manhattan—
Empire
Federation
Fiduciary
Fulton
LAWYerR.County......
United States
Broalgn—
Brooklyn
Cash
Res. Dep., Dep. Other
N. F. and Banks and
Elsewhere Trust Cos.
Gross
Deposits
$
53,238,400
7,327.502
13,051,849
19,671,100
30.886,500
60,842,244
$
$
.5,280,300 8,403,800
117,832
698,498
.1,091,822
625,411
.2,694,600
320,200
.7,140,200
666.900
15,139,956 16.273,166
S
S
2,511,000 57.377.900
1,032,049 7,497,076
62,541 12,571,747
330,600 18,158,900
36,368,800
63,651,936
88.067,000
2,717,000 21,656,000
9R nAA IRO
9 1,51 009
239,000 99,082,000
7 ink nql
31 72.5721
• Includes amount with Federal Reserve as follows: Empire, $4,116,700:
Fiduciary, $830,229; Fulton. $2,507,300; Lawyers County, $6,447,200.
1263
Name of Company
Per
Share
When
Payable
Holders
of Record
Wesson Oil & Snowdrift Co.,Inc—
Convertible preferred (guar.)
$1 Mar. 1 Feb. 15
Western Auto Supply, A & B (quar.)
75c Mar. 1 Feb. 18
Western Public Service, pref. A (guar.)
3735c Mar. 1 Feb. 11
Wt Kootenay Power & Light, pref. ((in.)._ _ _
$1% Apr. 1 Mar. 20
Westland Oil Refining. A (monthly)
10c Mar. 15 Feb. 28
Westvaco Chlorine Products,(quar.)
10c Mar. 1 Feb. 15
Preferred (quar.)
51%. Apr. 1 Mar. 15
Wheeling Electric. 6% Preferred (quar.)
31.M Mar. 1 Feb. 8
Whitman (Wm.) Co.7% preferred
h$1U Mar. 15 Mar. 1
Wilcox Rich Corp.class A (quar.)
625ic Mar.31 Mar. 20
Will & Baumer Candle Co., Inc—
Preferred
$2 Apr. 1 Mar. 15
Williamsport Waist', $6 preferreti (quar.)
3,5 Mar. 1 Feb. 30
Winsted Hosiery (quar.)
$1% May 1
Quarterly
s13, Aug. 1
Quarterly
$155 Nov. 1
Wisconsin Electric Power 6% pref. (quar.)
$15i Apr. 1 Mar. 25
6;.6% preferred (guar.)
$1% Apr. 1 Mar. 25
Woolworth (F. W.)Co. iquar.)
60c Mar. 1 Feb. 11
Wrigley (Wm.) Jr. (monthly)
25c Mar. 1 Feb. 20
Monthly
25c Apr. I Mar. 20
Zimmerknit Co.7% pref.(semi-ann.)
$335 Mar. 1 Feb. 15
Zlons Cooperative Mercantile Ins. (quar.)
50c
Apr. 15
Quarterly
.50c
July 15
Quarterly
Oct. 15
50c
t The New York Stock Exchange has ruled that stock will not be quote
ex-dividend on this date and not until further notice.
I The New York Curb Exchange Association has ruled that stock w
not be quoted ex-dividend on this date and not until further notice.
a Transfer books not closed for this dividend.
d Correction. e Payable in stock.
I Payable in common stock. 0 Payable in scrip. h On account of accumulated dividends. j Payable in preferred stock.
!Blue Ridge Corp. has declared the quarterly dividend on its optional $3
convertible pref. stock, series of 1929. at the rate of 1-32nd of one share of
the com. stock of the corporation for each share of such pref. stock, or, at
the option of such holders (providing written notice thereof is received by
the corporation on or before Feb. 15 1935), at the rate of 75c. per share in
cash.
n Standard Oil of N. J. div. of one sh. of Mission Corp. stock for each
25 shares of S. 0. of N. J. $25 par value and 4 shs. of Mission Corp. stk.
for each 25 ohs, of St. 0. of N. J. $100 par value.
p Goidblatt Bros., Inc.. declared a dividend of 37
cents cash per
share, or 1-40th of a share of stock, at the option of the stockholders.
Fractional shares will not be issued.
r Payable in Canadian funds, and in the case of non-residents of Canada
a deduction of a tax of 5% of the amount of such dividend will be made.
is Payable in U. S. funds. p A unit. ID Less depositary expenses.
x Less tax
A deduction has been made for expenses.
Condition of the Federal Reserve Bank of
New York
The following shows the condition of the Federal Reserve
Bank of New York at the close of business Feb. 20 1935,
in comparison with the previous week and the corresponding
date last year:
Feb. 20 1935 Feb. 13 1935 Feb. 21 1934
Assets—
Gold certificates on hand and due from
S
s
U. S. Treasury.:
2,128,108,000 2,072,723,000
Redemption fund—F. R.. notes
1,307,000
1.535.000
Other cash
70,710,000
70.085,000
Total reserves
2,200,125,000 2,144,343,000
Redemption fund—F. R. bank notes_
Bills discounted:
Secured by U. S. Govt. obligations
direct & (or) fully guaranteed
1,420,000
1,976,000
Other bills discounted
2,517,000
2,297,000
Total bills discounted
Bills bought in open market
Industrial advances
U. S. Government securities:
Bonds
Treasury note;
Certificates and bills
Total U. S. Government securities
S
920,703,000
8,901,000
52,072,000
981,676,000
2,930,000
1E251,000
20.405,000
3,937,000
4,273,000
31.656,000
2,100,000
1,321,000
2,101.000
1,201,000
3,614,000
139,944,000
472,770,000
157,604,000
139,945,000
472,770,000
157.603,000
167,783,000
347,621,000
301,351,000
770,318,000
770,318,000
816,755,000
Other securities
Foreign loans on gold
783,000
Totla bills and securities
777,676,000
777,893,000
854,808,000
Gold held abroad
Due from foreign bank
F. R. note; of other banks
Uncollected items
Bank premises
All other assets
319,000
5,609,000
130,064,000
11,598,000
32,132,000
317,000
4,674,000
91,351,000
11,598,000
32,508,000
1,296.000
3,442,000
99,587,000
11,424,000
48,296,000
Tot al assets
3,157,523,000 3,062,684,000 2.003,459,000
Liabilities—
F. R. notes in actual circulation
. 658,731,000 657,286,000 609,925,000
F. R. bank notes in actual circulation ne t
52,655,000
Deposits—Member bank reserve sect.. 2,117,029,000 2,039,529,000 1,038.251,000
U. S. Treasurer—General account
7,628,000
44,170,000
18,594,000
Foreign bank
5,145,000
5,083,000
2,762,000
Other deposits
114,348,000 100,680,000
32.684,000
Total deposits
Deferred availability items
Capital paid in
Surplus (Section 7)
Surplus (Section 13b)
Reserve for contingencies
All other liabilities
2,244,150,000 2,189,462,000 1,092.291,000
132,640,000
95,497,000
87,831,000
59,711,000
59.714,000
58,510,000
49,964,000
49.964,000
45,217,000
877,000
877,000
7,501,000
7.501.000
4.737,000
3,949,000
2,383,000
52.293,000
Total liabilities
3,157,523,000 3,062,684,000 2.003.459,000
Ratio of total reserves to deposit an
F. It. note liabilities combined
75.89
57.79
75.39
Contingent liability on bills purchase
for foreign correspondents
166,000
166,000
1,706,000
Commitments to make industrial ad
vances
4.930.000
4.765.000
* "Other cash" does not include Federal Reserve notes or a bank's own Federal
Reserve bank notes.
x These are certificates given by the U. S. Treasury for the gold taken
over
from the Reserve banks when the dollar was on Jan. 31 1934 devalued from 100
cents to 59 06 cents, these certificates being worth less to the extent of the diference, the difference itself having been appropriated as profit by the Treasury
under the provisions of the Gold Reserve Act of 1934.
Financial Chronicle
1264
Feb. 23 1935
Weekly Return of the Federal Reserve Board
The following is issued by the Federal Reserve Board on Thursday afternoon, Feb. 21, showing the condition
of the twelve Reserve banks at the close of business on Wednesday. The first table presents the results for the System
as a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding week last year.
The second table shows the resources and liabilities separately for each of the twelve banks. The Federal Reserve note
statement (third table following) gives details regarding transactions in Federal Reserve notes between the Reserve Agents
and the Federal Reserve banks. The fourth table (Federal Reserve Bank Note Statement) shows the amount of these
bank notes issued and the amount held by the Federal Reserve banks along with the collateral pledged against outstanding
bank notes. The Reserve Board's comment upon the returns for the latest week appears in Our department of "Current Events
and Discussions."
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOSE OF BUSINESS FEB. 20 1935
Feb. 20 1935 Feb. 13 1935 Feb. 6 1935 Jan. 30 1935 Jan. 23 1935 Jan. 16 1935 Jan. 9 1935 Jan. 2 1935 Feb. 21 193,
ASSETS.
S
5
$
$
$
$
$
$
S
Gold cue,on hand & due from U.S.Treas a 5,516,081,000 5,449,639,000 5,445,101,000 5,350,959,000 5.281.298.000 5,237,503.000 5.162.076,000 5,124,339,000 3,712,311,001
41,503,001
15.875,000
17,398,000
17.398,000
19,060,000
19,060,000
Redemption fund (F. It. notes)
15,852,000
16,549,000
18,559,000
Other cash •
253,317,000 264,771,000 270,330,000 280,320,000 286,400,000 287,444,000 287,644,000 253,091,000 213,904,001
5,785,250,000 5,730,959,000 5,731,990.000 5,647,154,000 5.585,096,000 5,542.345,000 5.468,780,000 5,396,490,000 3,967,718,001
Total reserves
Redemption fund-F. R. bank notes
Bills discounted:
Secured by U. S. Govt. obligations
direct er (or) fully guaranteed
Other bills discounted
Total bills discounted
250,000
250,000
1.759,000
1,986,000
1.579,000
1.752,000
1.964,000
1.677.000
12,159,001
2,719,000
3,207,000
3,451,000
3.059.000
3,124,000
3,304.000
3,558,000
3,500,000
5,294,000
3,394,000
13,604,000
3.617,000
3,588,000
3,406,000
3,544,000
3.548,000
18,927,001
47,540,001
5,926,000
6,510,000
6,428,000
7,058.000
8,688,000
17,221,000
6.994,000
7,092,000
66,467,001
Bills bought in open market
Industrial Advances
U.S. Government securlties-Bonds
Treasury notes
Certificates and bills
5,612,000
75,111,001
5,538,000
5,501,000
5,503.000
5,539,000
5,562,000
5,611,000
5,502,000
14,315,000
17,824,000
17,493,000
14,744,000
18,729,000
18,375,000
15,636,000
14,826,000
395,748,000 395.726,000 395,630,000 395,652,000 395,650,000 395,627,000 395,662,000 396.088,000 442,775,001
1,511,675,000 1,511,683,000 1,511.666,000 1.511,693,000 1,506,688,000 1.508,667,000 1.507,117,000 1,507,118.000 1,031,256,000
522,925,000 522,925,000 522,925,000 522,925,000 527.925,000 525,925,000 527,475,000 527,475,000 957,704,001
Total U. 8. Government securities
Other securities
Foreign loans on gold
2,430,318,000 2,430,334,000 2,430,221,000 2,430,270.0002.430,263.000 2,430,219,000 2.430,254,000 2.430,681,000 2,431,735,000
1,293,000
Total bills and securities
Gold held abroad
Due from foreign banks
Federal Reserve notes of other banks
Uncollected Items
Bank premises
All other assets
2,460,504,000 2,460,721,000 2.459.976,000 2.460,359,000 2.460,126,000 2,467,828.000 2,457,603,000 2.547,700.000 2,574,606,000
807,000
18,649,000
482,633,000
49,436,000
45,814,000
805,000
16,763,000
415,332,000
49,436,000
46,349,000
805,000
17.165.000
416.513,000
49,336,000
45,286.000
805,000
19,672,000
411,130,000
49.307,000
48.444,000
805,000
22,324,000
446,365.000
49,300,000
46,961.000
806,000
24,226,000
505.729,000
49,296,000
45,589.000
805,000
24,489,000
428,403.000
49,190,000
44,850,000
805,000
27,988,000
530,474,000
49,160,000
44,534,000
3,400,000
15,027,000
396,209,000
52,383,000
116,619,000
8,843,343,000 8.720.615,000 8.722,860.000 8.638.857,000 8.612,562,000 8.637.571.0008.476.084,000 8.508.828.000 7,138,121,000
Total assets
LIABILITIES.
F. It. notes in actual circulatloi
F. It. bank notes in actual circulation
3,127,655,000 3,118,015,000 3,101,685,000 3.068,172,000 3,066,915.000 3,099,050,000 3,136,987,000 3,215,661,000 2,970,309,000
1,242,000
1.192,000
25,627,000
25.697.000
25,683,000
25,869.000
26,18.5,000
26,363,000 197,750.000
Deposits--member banks' reserve account 4,644,795,000 4.580,341,000 4,632.647.000 4,541,755,000 4,500,919,000 4,387,560,000 4,282,546,000 4.089.552,000 2,830,118,000
U. S. Treasurer-General account _a
38.422,000
56,481,000
72,312,000
35,434,000
49,155,000
67,227,000
80,137,000 125,594,000 165,546,000
Foreign banks
4,871,000
13,629.000
16,073,000
13.424,000
19,083,000
18,954,000
13,567.000
18,339,000
19.114.000
Other deposits
178,973,000 167,945,000 162,684,000 178,141.000 169,073.050 196.677,000 174,725,000 170,971,000 127,349,000
Total deposits
4,875,819,000 4,834,165,000 4,844,189,000 4.792.450,000 4,738,230,000 4.669,803,000 4,556.522,000 4.405,071,000 3,127,884,000
Deferred availability items
Capital paid in
Surplus (Section 7)
Surplus (Section 13-B)
Reserve for contingencies
All other liabilities
495,913,000
146,953,000
144,893,000
12,751.000
30,821,000
7,296,000
Total liabilities
Masuruy Distribution of Bills and
SAort-tertzi Securities1-15 days bills discounted
18-30 days bills discounted
81-60 days bills discounted
81-90 days bills discounted
Over 90 days bills discounted
Total bills discounted
Total industrial advances
1-15 days U. EL certificates and bills_.
16-30 days U. S. certificates and bills
81-60 days U. S. certificates and bills
61-99 days U. S. certificates and bills
Over 90 days U. S. certificates and bias
Total U. S. certificates and bills
1-15 days municipal warrants
18-30 days municipal warrants
81-60 days inunicipa warrants
81-90 days municipal warrants
Over 90 (lays municipal warrants
Total municipal warrants
Federal Reserve NotesIssued to F. R. Bank by F. R. Agent-Held by Federal Reserve Bank
In actual circulation
412,710,1100
146,870,000
144,893,000
11,560,000
30,820,000
5,685,000
444,405,000
146.888,000
144,893,000
10,669,000
30,820,000
4,059,000
508,428,000
146,839,000
144,893,000
10,526,000
30,808,000
3.355,000
419,920,000
146.844.000
144,893,000
10,496,000
30,816,000
3,421,000
527,887.000
146,773,000
144,893,000
8,418,000
30,816.000
2,948,000
381,533,000
145,309,000
138,383,000
22,524,000
153.429,000
72.3%
72.1%
72.1%
71.8%
71.6%
71.3%
71.1%
70.8%
65.1%
366,000
12,940.000
366,000
12,540,000
366,000
12,314,000
317.000
11,739,000
317.000
11,109,000
567,000
10,846,000
878,000
10,375,000
674,000
10,213,000
4,635,000
a
1-15 days bills bought in open market....18-30 days bills bought In open market__ _
31-60 days bills bought In open market.-81-90 days bills bought In open market_ _ _
Over 90 days bills bought in open market
Total bills bought In open market
411.155,000
146,868,000
144,893,000
12.351,000
30,822,000
5,270,000
8,843,343,000 8,720,815,000 8,722,860,000 8,638,857,000 8.612.582.0008,637.571.000 8,476,084,000 8,508,828,000 7,138,121,000
Ratio of total reserves to deposits and
F. R. note liabilities combined
Contingent liability on bills purchased for
foreign correspondents
Commitments to make industrial advances
1-15 days Industrial advances
18-30 days industrial advances
81-60 days industrial advances
81-90 days Industrial advances
Over 90 days Industrial advances
426,371,000
146,928,000
144,893,000
12,447,000
30,822,000
5.782,000
$
$
8
8
3
5
$
$
4.528,000
733,000
157,000
271,000
237.000
5,321,000
181,000
675,000
286,000
47.000
4,693,000
673.000
715,000
299,000
48.000
5,416,000
627,000
635,000
.358,000
22,000
7,021,000
110.000
1.228,000
298,000
33.000
15,588,000
223.000
677.000
701,000
32,000
5,478,000
125,000
1,239,000
122,000
30,000
5,266.000
251,000
1.417,000
84.000
74,000
52,196,000
5,415,000
4,736,000
3,671,000
449,000
5,926,000
6,510,000
6,428,000
7,058,000
8,688,000
17,221,000
8.994,000
7.092,000
66,467,000
3.499,000
163,000
905,000
934,000
660,000
3,426,000
817,000
599,000
857,000
1,219,000
219,000
3,208,000
657,000
1.506.000
386.000
2,989,000
2,750.000
845,000
1.213.000
731,000
2,743,000
833,000
669.000
1.317,000
741,000
2,719,000
882,000
1,269,000
515,000
2,869,000
1,144,000
1.084.000
31,957,000
13,542,000
19,103,000
8,460,000
49,000
5,501,000
5,502,000
5,503,000
5,538,000
5.539,000
5,562,000
5.611,000
5.612.000
75,111,000
97,000
432,000
1,225,000
893.000
16,082,000
93,000
618,000
702,000
1,315,000
15,647,000
139,000
551,000
748,000
1,298,000
15,068,000
92,000
146,000
1,184,000
904,000
15,167,000
00
.0
0000060
,:.0(
1.28145290211
13.332,000
47.000
186,000
656,000
878,000
13.059,000
84,000
102.000
655.000
904.000
12,999,000
49.000
142.000
137,000
1,425,000
12,562,000
18,729,000
18,375,000
17.824,000
17,493.000
15,636,000
14,826,000
14,744,000
14,315,000
40.G35,000
39,690,000
36,222,000
39,467,000
31,450,000
87,693,000
35,114.000
30,200,000
27,400,000
124,180,000 120,030,000
36.222,000
35,114,000
44,467,000
45.535,000
39,690,000
33,300.000 209,610,000
179,054,000
80,750,000 165,130,000 175,030,000 163.880.000 154,252,000
81,354,000
83,239,000 155,433.000
92,368,000 183,618,000 179,175,000 172,177,000 189,545,000 201,873,000 184.630.000 175,230.000 111,830,000
1,995,056,000 2,009.714,000 2,011.112,000 2,007,374,000 2.001,189,000 1.999,427,000 2.111.235,000 2,107.462.000 393,938,000
2,430.348,000 2,430,334,000 2,430,221,000 2.430,270,000 2,430,283,000 2.430.219,000 2,430,254,000 2,430,681,000 937,704,000
1,276,000
17,000
1,293,000
3,419,985,000 3,382,242,000 3,379,971,000 3,365,435,000 3,386.374,000 3,433,031,000 3,480,183,000 3,518.366,000 3,223,491,000
292,330,000 264,227,000 278,286,000 297,263,000 319,459.000 333,981.000 343,196,000 302,705.000 253,182,000
3,127,655,000 3,118,015,000 3,101,685,000 3,088,172,000 3,086,915,000 3,099,050,000 3,138,987,000 3,215.661.000 2,970,309,000
Collateral Held Ov .4 pest as Security for
Notes Issued to RankGold etfs on hand & due from U.S. Trees- 3.280,827,000 3,252,450,000 3,258,450,000 3.258,370.000 3,274.200.000 3,292.700,000 3,288,200,000 3,314,200,000 2,663,318,000
By eligible paper
5,084,000
4,955,000
4,201,000
5,587.000
5,682,000
5,523,000 110,000,000
7,28;5,000
15,778.000
U.S. Governm3nt securities
199,100,000 199,000,000 191.000,000 186,000.000 188,000.000 193.000,000 238,000,000 243.100,000 496,100,000
Total collate! al
3.481 128 000 3.456.534.000 3,452,405.090 3.449.957.000 3.469_485.000 3.501.478.000 3.531.782.000 3.562.823.000 3.269.418,000
•"Other wish" does not include Federal Reserve notes or a bank's own Federal Reserve bank notes.
t Revised figures.
o These are oertlficates given by the U. S. Treasury for ttie gold taken over from the Reserve banks when the dollar was devalued from 100 cents to 59,06 cents.
on Jan.31. 1934. these certificates being worth less to tile extent of trot difference, the difference Itself having been appropriated as profit by the Treasury under the provisions of the Gold Reserve Act of 1934.
a Caption ehanged from "Giovernmens" to -U. •4 Treasurer-General account" and 1100,000.000 included in Government deposits on May 2 1934 transferred to
i•Other deposits."
Financial Chronicle
Volume 140
1265
Weekly Return of the Federal Reserve Board (Concluded)
WEEKLY STATEMENT OF RESOURCES 4.40 LI viILITIE9 OR ECU OP THE 13 FEDERAL RESERVE BANKS It r CLOSE OF BUSINESS FEB. 20 1935
Two Ciphers (00) Omitted.
Federal Reserve Bank of-
Phila.
New York
Boston
Total
Chicago
Cleveland Richmond Atlanta
St. Loots Aftnneap. Kan. City Dallas
Sas Fray.
$
8
$
$
$
$
8
$
RESOURCES
$
$
$
$
$
Gold certificates on hand and due
from U.S.Treasury
5,516,081,0 404,220,0 2,128,108,0 269.818,0 401,265,0 187,559,0 109,360,0 1,053,715,0 199,305,0 136,203,0 188.434,0 119,392.0 318,702,0
660,0
445,0
1,307,0 2,128,0 1,640,0 1,359,0 3,459,0
15,852,0
375,0
476,0
496.0
227,0 3,280,0
Redemption fund-F.R. notes
26,958,0 9.599,0 10,871,0 11,035,0 6,533,0 18,795,0
70,710,0 35,231,0 10.358,0 10,402,0 13,247,0
253,317,0 29,578,0
Other cash
Total reserves
5,785,250,0 434.173,0 2,200,125,0 307,177,0 413,263,0 199,320,0 126,066,0 1,081,333,0 209,349,0 147,550,0 199,965,0 126,152,0 340,777,0
Redem. fund-F. R. bank noteei.
250,0
250,0
Bills discounted:
Bets. by. U.S. Govt.obligations
13,0
140,0
287,0
200,0
1,420,0
10,0
215,0
323,0
20,0
71,0
20,0
direct and(or)fully guaranteed
2,719,0
49,0
122,0
2,517,0
31.0
378,0
17,0
8,0
Other bills discounted
67.0
3,207,0
18.0
Total bills discounted
Bills bought In open market
Industrial advances
II. S. Government securities:
Bonds
Treasury notes
Certificates and bills
5,926,0
5,501,0
18,729,0
79,0
404.0
2.004,0
409,0
523,0
1,217,0
189,0
198,0
1,086,0
246,0
204,0
2.974,0
139,944,0 25,137,0 30,558,0 14,859,0 13,637,0
472,770,0 105,049.0 134,418,0 65,346,0 59.445.0
157,604,0 36,934,0 48,048,0 23,357,0 21,251,0
395,748,0 23,215,0
1,511,675,0 99,055,0
522,925,0 35,409.0
Total U. S. Govt. securities_ 2,430,348,0 157,679,0
Total bulls and securities
Due from foreign banks
Fed. Res. notes of other banks.
Uncollected items
Bank premises
All other resource.,
701,0
555,0
3,783,0
3,937,0
2,100,0
1,321,0
2.460,504,0 160,166,0
60,0
807.0
18,649,0
326,0
482,633,0 49,843,0
49,436,0 3,168,0
45,814,0
696,0
200,0
651,0
1,356,0
13,0
105,0
497,0
84,0
1.832,0
77,0
149,0
633.0
37,0
143,0
1.350,0
38,0
385.0
676,0
61,065,0 15,949,0 15,374,0 13,333,0 18,818,0 23.859.0
268,902,0 67,958.0 37,150,0 57,837,0 38,790,0 104,955,0
90,876,0 24.293,0 13,095,0 20,674,0 13,867,0 37,517,0
770.318,0 167,120,0 213,024,0 103,562,0 94,333,0
420.843,0 108,200,0 65,619,0 91.844,0 71,475,0 166,331.0
777,676,0 172,159,0 215,173,0 106,986,0 95,806,0
29,0
30,0
76,0
319,0
83,0
5,609,0
549,0 1.023,0 1,369,0 1,148,0
130,064,0 36.418,0 43,882,0 38,445,0 15,815,0
11,598,0 4,525,0 6,629,0 3,028,0 2,325,0
32.132,0 4,636,0 1.557,0 1,356,0 1.770,0
423,050,0 108,815,0 67,535,0 92,703,0 73,005.0 167,430,0
6,0
56,0
22,0
8,0
21,0
97,0
264,0 3,021,0
697,0
2.572,0 1,228,0
843,0
67,575.0 21,220,0 11,756,0 27,242.0 18,803,0 21,570,0
1,580,0 3,447,0 1,684,0 3,869.0
4,955,0 2,628,0
894,0
738.0
551,0
299,0
230.0
955,0
8,843,343,0 648.682,0 3.157,523,0 525.547,0 681,603,0 350,534,0 242,959,0 1,580,537,0 343.478,0 229,862,0 324,521,0 220,823,0 537,274.0
Total resoureas
LIABILITIES
F. R. notes in actual circulation_ 3,127,655,0 265,952,0 658,731,0 234,496,0 303,766,0 154,087,0 126,378,0
F.R. bank notes In act'l oireurn
1,242,0 1,242,0
Deposits:
Member bank reserve account. 4,644,795,0 297,944.0 2,117,029,0 217,622,0 295.692,0 138,744,0 80,974,0
U. B. Tresaurer-Gen, scot.
7,628,0 1,259,0 1,771,0 2,672,0 2,789,0
38,422,0 3,557,0
497,0
483,0
967,0
Foreignbank
6,145,0 1,329,0 1,275,0
13,629,0
Other deposits
178,973,0 3,856,0 114,348,0 1,823,0 3,518,0 2.107,0 2.728,0
681,452,0 151,567,0 95,032,0 167,720,0 137,804,0 263,215,0
3,843,0 4,736,0 1,753,0 1,268,0 1,352,0 5,794.0
940.0
362,0
403,0
349,0
322,0
1,557,0
4.291,0 15,183,0 6,636,0 2,083,0 2.023,0 20,377,0
4,875,819,0 306,324,0 2,244,150,0 222.033,0 302,256,0 144,020.0 86,974,0
495,913,0 50,876,0 132,640,0 35,009,0 43,746,0 39.017,0 16,196,0
146,953,0 10,764,0
59,711,0 15,145,0 13.124,0 5,006,0 4,372,0
144,893,0 9,902,0
49,964,0 13,470,0 14,371,0 5.186,0 5,540.0
754,0
12,751,0 1,789,0
877,0 2.098,0 1.007,0 1,697,0
7,501,0 2,996,0 3,000,0 1,416,0 2,597,0
30,821,0 1,648,0
148.0
185.0
333,0
3,949,0
105.0
7,296,0
300,0
691,143,0 171,889,0 103,743,0 171,433,0 141,528,0 290,326.0
70,185,0 22,334,0 12,221,0 27.741,0 21.303,0 24,645.0
12.768,0 4,071,0 3.133,0 4.048,0 4,017.0 10,794,0
21,350,0 4,655,0 3,420,0 3,613,0 3,777,0 9,645,0
585,0
523,0
626,0
1,315,0
477.0 1,003,0
808,0 1,363,0 2,062,0
5,325.0
894,0 1,211.0
136,0
230.0
161,0
329,0
436,0
984,0
Total deposits
Deferred availability items
Capital paid in
Surplus (Section 7)
Surplus (Section 13 b)
Reserve for contingeneie
All other liabilities
Total liabilities
777,467,0 138,722.0 104,802,0 116,194,0 48,073,0 198,987,0
8.843,343,0 648,682,0 3,157,523,0 525,547,0 681,603,0 350,534.0 242,959,0 1,580.537,0 343,478,0 229,862,0 324,521,0 220,823,0 537,274,0
Ratio of total res. to dep. & F. R.
note liabilities oombined
Contingent liability on bills purabased for torn correspondents
Commitments to make industrial
advances
72.3
75.9
75.8
67.3
68.2
66.9
59.1
73.6
67.4
70.8
69.5
66.5
386,0
23,0
166,0
31,0
30,0
12,0
11,0
37,0
9,0
8,0
9,0
8,0
510 A
1 525 0
627.0
732.0
453.0
1.335.0
30.0
188.0
12 nan
n
1 095 0
4 onn
n
69.6
22,0
1,078,0
•"Other Cash" does not Include Federal Reserve notes or bank's own Federal,Reserve bask notes
FEDERAI RESERVE NOTE STATEMENT
Two Ciphers (ow amuse&
Pr•(rat Reserve Agent at-
Total
Boston
New York
Chicago
Cleeeland Richmond Atlanta
Phila.
St. Louis Wilma, Kan. City
s
s
$
$
Dallas
San Fran,
$
s
Federal Reserve notes:
$
$
Issued to F.R.Bk. by F.R.Agt. 3,419,985,0 286,482,0
Held by Fedi Reserve Bank.__ 292,330,0 20,530,0
1
$
$
5
$
764,075,0 250,949,0 317,228,0 162,276,0 143,284,0
105,344,0 16,453,0 13,462,0 8,189,0 16,906,0
815.245,0 144,782,0 109,059,0 124,031,0 53,577,0 248,997,0
37,778,0 6,060,0 4,257,0 7,837,0 5.504,0 50,010.0
In actual circulation
3,127,655,0 265,952,0
Collateral held by Agent as security for notes issued to biui
Gold certificates on hand and
due from U.S. Treasury
3,280,827,0 301,617,0
Eligible paper
4,201,0
80,0
U. S. Government securities.. 199,100,0
658.731,0 234,496,0 303,766,0 154,087,0 126,378,0
777,467,0 138,722,0 104.802,0 116.194,0 48,073,0 198,987.0
788,706.0 216,500,0 288,215.0 139,340,0 80,685,0
179.0
221,0
598,0
409,0
2,379,0
35,000,0 30,000,0 25,000,0 65,000,0
819,390,0 135,936,0 105,500,0 125.000,0 54,675,0 225,263.0
37,0
38,0
47,0
13,0
200,0
30,000,0
10,000,0 4,100,0
TntAlnnIlltts0711
7 .152.1 195 n 001 009 A
701 was n 959
one
n 715 1191 A 1114 cm n
145 5840
519 5,10 1") 145 949.0 109.600.0 125.047.0 54.712.0 255.301.0
FEDERAL RESERVE BANK NOTE STATEMENT
2'tes Ciphers (00) Omitted.
Federal Reserve Agent at-
Total
Boston
$
11,719,0
10,477,0
8
1,511.0
269,0
In actual circulation-net iii_
Collat. pledged eget. outset. notes
Discounted & purchased bills__
U. B. Government securities__
1,242,0
1.242,0
17,000,0
5,000,0
12,000,0
17 nnn
A (MA n
12 000 n
Total oollateral _
n
8
Chicago
Cleeeland Richmond Atlanta
Phila.
New York
Federal Reserve bank notes:
Issued to F. R. Bk.(outatdg.)_
Held by Fed'i Reserve Bank__
$
10,208,0
10,208,0
8
$
$
8
St. Louis Afinneap. Kan. City Dallas
$
5
8
$
San Fras,
$
•Does not Include $96,815,000 of Federal Reserve bask notes for the retirement ot which Federal Reserve banks have deposited lawful money with the Treasurer o'
the United States.
Weekly Return for the Member Banks of the Federal Reserve System
Following is the weekly statement issued by the Federal Reserve Board, giving the principal items of the resources
and liabilities of the reporting member banks in 91 leading cities from which weekly returns are obtained. These figures
are always a week behind those for the Reserve banks themselves. The comment of the Reserve Board upon the figures for
the latest week appears in our department of "Current Events and Discussions," immediately preceding which we also give the
figures of New York and Chicago reporting member banks for a week later.
PRINCIPAL ASSETS AND LIABILITIES OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES. BY DISTRICTS. ON FEB. 13 1938
(In Millions of Dollars)
Federal Reserve District-
New York
Phila.
Cleveland Richmond
Atlanta
Chicago
St. Louis Annum,. Kan. Mt/
Dallas
San Pray.
8,270
1,085
1.194
363
352
2,007
535
361
569
420
1,943
Loans on eacuritles-total
3,016
213
1,638
202
175
57
51
272
86
34
53
49
206
To brokers and dealers.
In New York
Outside New York
To others
707
165
2,144
16
33
164
596
61
981
21
15
166
2
6
167
6
1
50
4
3
44
28
26
218
2
32
6
3
44
4
1
44
428
969
3,154
7,198
633
2,847
46
91
283
346
11
151
224
249
1,344
3,292
305
1,218
22
71
172
293
55
270
2
74
129
599
22
193
12
17
79
129
14
60
2
12
123
102
12
50
61
33
287
999
80
266
6
6
100
154
6
55
19
14
108
241
18
116
3
23
112
167
25
41
3,450
292
14.100
4,448
1,136
1,860
4,422
254
70
948
317
75
120
215
1,823
70
7,318
1,032
654
172
2,015
139
15
730
315
65
164
251
150
21
698
448
46
131
194
57
12
246
137
8
87
106
28
6
198
130
31
83
86
473
48
1,760
525
61
300
604
64
5
261
127
5
97
120
106
11
487
165
22
242
290
85
9
316
125
56
159
148
Reserve with F. R. banks
Cub In vault
Net demand deposits.
Time deposits
Government daPosita
Dos from banks
Doe to banks
N.
CO
CO Co
00004..1 W00044.
.441.N0.4. W0W0N.
Acceptances and commercial paper
Loans on real estate
Other loans
U. S. Government obligations
Oblige. fully guar. by U. S. Met-.
Other securities
WOO
1.141
W4.4
Boston
18,245
=NcT8W.
40W...10
Total
.W
W.WW. Q
OWWWWW0
Loans and Investments-total
1266
Financial Chronicle
ob Sinanri
ore
Tantrufrrial 6
Feb. 23 1935
United States Government Securities
Bankers Acceptances
aro-nil-Iv.
PUBLISHED WEEKLY
NEW YORK AND HANSEATIC CORPORATION
Terms of Subscription-Payable in Advance
Including Postage12 Mos.
United States, U. S. Possessions and Territories
615.00
In Dominion of Canada
16.50
South and Central America, Spain, Mexico and Cuba
18.50
Great Britain, Continental Europe (except Spain), Asia,
Australia and Africa
20.00
6 Mos.
69.00
9.75
10.75
11.50
37 WALL ST., NEW YORK
United States Treasury Bills-Thursday, Feb. 21
Rates quoted are for discount at purchase.
WILLIAM B. DANA COMPANY, Publishers,
William Street, Corner Spruce, New York.
Bid.
Total sales in $1,000 units_ __
Converted 4Si% bonds _ 1 High
of 1932-47 (First 43(s) Low_
Close
Total sales in $1,000 units___
Second converted 4q% High
bonds of 1932-47 (First Low_
Second 43(s)
Total sales in $1,000 units___
1 High
Fourth Liberty Loan
d34% bonds of 1933-38._ Low_
(Fourth 43(s)
Close
Total sales in 31.000 units__
Fourth Liberty Loan
1 High
eh% bonds (3d called). Low_
Close
Total sale, in $1,000 unit,.._
Treasury
High
Low_
34s 1947-52
Close
Total sales in $1.000 unfit__
High
es, 1944-54
Low_
(Close
Total sales in $1.090 units___
High
4 ks-3;tel. 1943-45
41.ow
Close
Total sales in $1,000 units...
MO
35(e, 1946-56
Low_
Close
Total sales in $1,000 units___
High
3Y4s. 1943-47
Low_
Close
Total sales in $1,000 units__
1 High
3s, 1951-55
i Low_
(Close
Total sates in $1,000 units ___
High
3s, 1948-48
Low_
Close
Total sales in $1,000 units___
High
5,4s, 1940-43
1.0w_
Close
Total sales in $1,000 units__
High
354s, 1941-43
Low_
(Close
Total sales in $1,000 units__
High
834s. 1946-49
Low_
Close
Total sales in $1,000
_
units_(112th
3145 1949-52
4Low_
(Close
Total sales 10 31,000 units_ _.
High334s, 1941
Low_
Close
Total sales in $1,000 units___
High
834a, 1944-48
Low_
Close
Total sales in 31.000 units__
Federal Farm Mortgage
High
334s. 1944-64
Low.
Close
Total sales in $1,000 units__
Federa, Farm Mortgage 1 High
3s. 1944-1949....
Low_
Close
Toted sales in $1,000 units___
Federal Farm 51,,rtgafie
High
3.9 1942-1947
Low_
Close
Total sales in 51,000 unto...
Home Owners' Loan
1131gb
4s. 1951
Low.
Close
Total sales in $1,000 units___
Home Ownera' Loan
High
3s, series A, 1952
Low_
Close
Total sales in $1,000 units__
orne Owners' Loan
{itigfi
Low_
25(s, Berieli B 1949._
Close
Total sales in $1,000 units__
_--- - -- 14
--103.16
103.17
103.8
103.10 1037_103.16 103.9 103.5 103.8 103.9
103.16 103.9 103.8 103.8 103.12
34
88
15
6
88
-------------- --_-----------____
103.24
103.24
103.24
1
101.28
101.26
101.26
12
114.29
114.26
114.29
40
110.13
110.10
110.13
16
104.16
104.14
104.14
23
108.27
108.27
108.27
5
105.26
105.26
105.26
5
103.4
103.1
103.4
7
102.31
102.28
102.31
13
____
____
____
____
____
____
____
__
104.4
_104.1
104.4
11
103.29
103.26
103.29
53
105.29
105.29
105.29
6
104.16
104.14
104.16
22
102.29
102.28
102.29
36
101.5
101.3
101.5
65
101.9
101.4
101.9
31
101.12
101.12
101.12
1
101.6
101.4
101.6
248
99.7
99.3
99.7
156
__-103.24
103.12
103.16
156
101.29
101.15
101.20
1,680
114.29
114.24
114.29
16
110.16
110.10
110.16
9
104.22
104.18
104.20
53
108.29
108.22
108.29
5
105.31
105.29
105.29
6
103.8
102.29
103.4
204
103.4
102.28
103.4
177
106.6
106
106.6
707
106.2
106
106.2
501
104.5
103.24
104.5
334
104.4
103.26
104.4
347
106
105.28
106
37
104.20
104.18
104.20
64
103.1
103
103
16
101.16
101.3
101.15
159
101.17
101.14
101.15
113
101.11
101.9
101.10
17
101.16
101.4
101.14
553
99.18
99.4
99.18
475
---103.18
103.15
103.16
37
101.23
101.21
101.23
267
115.5
115.5
115.5
12
110.29
110.22
110.24
91
105.4
104.24
104.31
1.547
109.5
108.29
109.5
31
106.2
106
106.1
7
103.18
103.8
103.13
205
103.18
103.10
103.12
211
106.10
106.9
106.9
16
106.11
106.7
106.9
8
104.15
104.6
104.11
561
104.16
104.10
104.12
544
106.10
106.3
106.9
21
105.1
104.29
104.31
70
103.8
103.3
103.7
111
101.26
101.22
101.26
172
101.27
101.26
101.27
13
101.13
101.10
101.13
50
101.28
101.22
101.26
649
99.30
99.24
99.29
551
-103.16
-103.14
103.14
46
101.23
101.22
101.23
63
115.7
115.3
115.5
60
110.27
110.22
110.22
101
104.30
104.24
104.30
50
109.7
109.7
109.7
25
106.1
106.1
106.1
3
103.12
103.7
103.8
49
103.10
103.5
103.5
98
106.7
106.7
106.7
26
106.7
106.6
106.6
27
104.11
104.4
104.8
54
104.12
104.6
10-1.6
104
106.5
106.4
106.4
57
104.28
104.25
104.26
162
103.7
103.4
103.4
3
101.25
101.20
101.20
263
101.24
101.21
101.21
63
101.11
101.10
101.10
14
101.25
101.19
101.20
172
99.28
99.22
99.25
272
103.1-- 5
103.13
103.13
39
101.26
101.21
101.26
195
115.20
115.2
115.20
73
111.2
110.9
111
61
105.6
104.29
105.6
133
109.1)
109.3
109.6
27
106.3
106
106.3
10
103.20
103.5 HOLI103.14 DAY
110
103.19
103.6
103.16
101
106.15
106.15
106.15
237
106.15
106.9
106.12
208
104.19
104.5
104.19
17
104.20
104.1)
101.19
476
106.16
104.4
106.16
247
105.5
104.30
105.5
115
103.13
103.6
103.13
7
101.29
101.19
101.29
331
101.28
101.22
101.28
24
101.12
101.12
101.12
4
102
101.19
101.29
233
100.3
99.22
100.3
1,588
Note-The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
2 1st 434s
2 4th 434s (uncalled)
4th 434s (3d called,
13 Treasury 440 1952
6 Treasury 3s 1951-55
1 Treasury 33is 1949-52
14 Treasury 334s 1944-46
103.5 to 103.5
103.11 to 103.12
101.22 to 101.22
115
to 115
103.8 to 103.10
104.2 to 104.2
104.1210 104.29
Asked.
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
Quotations for United States Treasury Certificates of
Indebtedness, &c.-Thursday, Feb. 21
Figures after dicimal point represent one or more, :;2 Is of
a point.
Maturity.
June 15 1936....
Sept.15 1938....
Aug. 1 1935._
June 15 1939___
Mar.15 1935...
Sept. 15 1938__ _
Des. 15 1935. _
Feb. 1 1938._
Jul.
Rate.
Bid.
Asked.
Maturity
tat
Rate.
Bid.
Asked.
1ss %
154%
2%%
ah %
2.6%
234
254%
101.4
101.25
101.4
102.13
101.1
103.27
102.8
104.10
101.6
101.27
101.6
102.15
101.3
103.29
102.10
104.12
Dec. 15 1936_ _
Apr. 15 1938___
June 15 193)1 ._
June 15 1935...
Feb. 15 1937.. _
Apr. 151937.._ _
Mar.15 1938... _
Aug. 1 1936._ _
Sept.151937.....
23.‘
254%
%
3%
3%
3%
3%
334%
334%
104.9
103.7
104.30
101 23
104.22
104 28
105.9
104 8
105.22
104.11
103.12
105.0
101 25
104.24
104.30
105.11
104.16
105.24
The Week on the New York Stock Market-For review
of New York Stock market, see editorial pages.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY, WEEKLY AND YEARLY.
Week Ended
Feb. 22 1935.
Stocks.
Railroad
State,
Number of and Miscell. Municipal &
Shares.
Bonds.
For's; Bonds.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Mnf n1
Sales at
New York Stock
Exchange.
353,410 63,785,000
1,911,190
9,684,000
1,104,010
8,503,000
966,050
8,585,000
700,982
7,407,000
HOLI DAY
C on, 019
517
neca nnn
3793,000
1,763,000
1,512,000
1,339,000
1,232,000
earns
non
5770,000
6,487,000
5,323,000
2,081,000
4,690,000
HOLI
sin .1,1 non
Week Ended Feb. 22
1935
Total
Bond
Sales.
tol not
nnn
Jan. 1 to Feb. 22
1934
1935
8,920,553
30,079,809
105,391,301
52,621,100
14,682,000
53,934,000
$129,369,000
63,927,000
298,022,000
393,136,500
156,305,500
528,058,000
563,954,000 $71,237,100
$491,318,000
5777,500,000
Stocks-No,of shares_
5,035,642
Bonds
Government
$19,351,000
State and foreign
6.639,000
Railroad &industrial
37,964,000
Total
United
States
Bonds.
C-1
First Liberty Loan
I High 104.24 104.22 104.11 104.5 103.18
3ti% bonds of 1932-47__ Low_ 104.20 104.12 104.5 103.16 103.12
(First 334s)
Close 104.20 104.12 104.5 103.16 103.13
151
317
641
17
834
Total sales in $1,000 units__
Converted 4% bonds of_ High
--_------------ -
Bid.
May 29 1935
June 5 1935
June 12 1935
June 19 1935
June 26 1935
July 3 1935
July 10 1935
July 17 1935
July 25 1935
July 31 1935
Aug 7 1935
Aug. 14 1935
Aug. 211935
oc,co.c.c4
bOOIDO
00000
00000
Daily Record of U. S. Bond Prices Feb. 16 Feb. 18 Feb. 19 Feb. 20 Feb. 21 Feb. 22
Asked.
0.15%
0.15%
0.15%
0.15%
0.15%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
WOWCZW
NOWW,.
United States Government Securities on the New
York Stock Exchange-Below we furnish a daily record
of the transactions in Liberty Loan, Home Owners' Loan,
Federal Farm Mortgage Corporation's bonds and Treasury
certificates on the New York Stock Exchange. Quotations
after decimal point represent one or more 32ds of a point.
Feb. 27 1935
Mar. 6 1935
Mar. 18 1935
Mar. 20 1935
Mar. 27 1935
Apr. 3 1935
Apr. 10 1935
Apr. 17 1935
Apr. 24 1935
May 1 1935
May 8 1935
May 15 1935
May 22 1935
CURRENT
1034
NOTICES
-Sells. Troxell & Minton, Inc., Detroit, announce that Jesse G. Carruth
has become associated with them in charge of their municipal department.
-Francis I. du Pont & Co., 1 Wall Street, New York have prepared a
booklet on the chemical industry written primarily for security holders.
-Walter W. Price, formerly with Hornblower & Weeks, has become
associated with Syle, Carpenter & Black In their bond department.
-Homer & Co., Inc., 40 Exchange Place, New York. has prepared
a circular reviewing the market for high grade institutional bonds.
-Merton Cushman is now associated with W. E. Hutton & Co. as head
of their statistical department in Now York.
-Henry Gully and Associates, Investment Counsel, have moved their
offices to 115 Broadway, New York.
-McDonald, Moore & Hayes, Detroit, announce the removal of their
offices to the Penobscot Building.
FOOTNOTES FOR NEW YORK STOCK PAGES
• Bid and asked prices, no sales on this day.
5 Companies reported in receivership.
a Deferred delivery.
r Cash sale.
x Ex-dividend.
y Ex-rights.
33 Adjusted for 25% stock dividend paid Oct. 1 1934.
33 Listed July 12 1934; par value 103. replaced L1 par, share for share.
34 par value 550 lire listed June 27 1934; replaced 500 lire par value.
35 Listed Aug. 24 1933; replaced no par stock share for share.
33 Listed May 24 1934; low adjusted to give effect to 3 new shares exchanged for
1 old no par share.
37 Adjusted for 66 2-3% stock dividend payable NoV. 30 1934_
34 Adjusted for 100% stock dividend paid April 30 1934.
39 Adjusted for 100% stock dividend paid Dec. 31 1934.
a Par value 400 Ilre; listed Sept. 20 1934; replaced 500 lire par value.
41 Listed April 4 1934; replaced no par stock share for share.
.
2 Adjusted for 25% stock dividend paid June 1 1934.
The National Securities Exchanges on which low prices since July 1 1933 were
made (designated by superior figures in tables), are as follows:
22 Pittsburgh Stock
I New York Stock
13 Cincinnati Stock
73 Richmond Stock
'
3 Cleveland Stock
3 New York Curb
14 Colorado Springs Stock .
4 St. Louis Stock
3 New York Produce
n Salt Lake City Stock
4 New York Real Estate
IS Denver Stock
15 Detroit Stock
06 San Francisco Stock
s Baltimore Stock
37 San Francisco Curb
Los Angeles Stock
•Boston Stock
20 San Francisco Mining
,3 Los Angeles Curb
7 Buffalo Stock
39 Seattle Stock
I9 Minneapolis-St. Paul
3 California Stock
30 Spokane Stock
.
0 New Orleans Stock
9 Chicago Stock
Washington(D.C.)Stock
I' Chicago Board of Trade 21 Philadelphia Stock
11 Chicago Curb
V
1267
Volume 140
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Nine Pages-Page One
NOTICE-Cash and deferred delivery eales are disregarded in the day'S range, unleis they are the only transactions of the day.
sales in computing the range for the year.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Feb. 16
Monday
Feb. 18
$ Per share
*35 ____
*112 . __
*6
-614
*89
91
*3012 31
9,2 934
6
6
8
8
*11112 11134
112 134
17
1718
$per share
*35
*112
6
*90
31
912
538
77g
112
112
1634
____
_
-6-78
91
31
1014
614
814
114
112
1858
Tuesday
Feb. 19
Wednesday
Feb. 20
S per share $ per share
_ 4,35
*35112 112
-. *112
_ _
612 634
618 -6-14
*89
91
*89
91
3112 314 31
31
10
1014
934 10
614 614 *614 612
778 8
758 758
11314 114
11334 11412
112
132
138
112
1778 1818 17,
8 1778
*24 234
234 234
278 278
138
138
138
112
112
138
438 432
5
538
5
5
*4
432
438 432
4
412
4
434 434
4
*378 4
*22
23
*22
23
*22
23
it5•iT2 fi
- iiiT2 14-64 iio4
*12412 12612 *12434 127 *125
1678 17
1658 1778 1738
*17
19
18 ,j,1812 1812
*3 17, 314 *3
34 *3
*2912 3214 *31
3214 3214
54
51
544 57
55
Thursday
Feb. 21
Friday
Feb. 22
S Per share S_per share
*35
.
112 hi
6
618
*89
91
3034 3034
934 934
64 614
714 758
11312 11334
*138
1 12
1738 1734
Shares
Par
No par
Abraham & Straus
100
Preferred
No par
Adams Express
100
Preferred
No par
Adams Millis
Address Monier Corp
10
No par
Advance Rumely
Affiliated Product, Ine
No par
No par
Air Reduction Inc
Air Way Elec Appliance No par
10
Alaska Juneau Gold Min
100
Albany & Susquehanna
No par
A P W Paper Co
No par
:Allegheny Corp
100
Fret A with 630 wart
100
Fret A with 640 warr
100
Prof A without wart
No par
Allegheny Steel Co
Allegheny & West 6% MI- -100
Allied Chemical & Dye-No par
Preferred
100
No par
Allis-Chalmers Mfg
Alpha Portland Cement No par
Amalgam Leather Co
1
50
7% preferred
No par
Amerada Corp
Am Agri Chem (Conn) pt_No par
Amer Agric Chem (Del) __No par
American Bank Nate
10
Preferred
50
Am Brake Shoe & Fdy _No par
100
Preferred
American Can
25
Preferred
100
No par
American Car & Fdy
Preferred
100
No par
American Chain
100
7% preferred
No par
American Chicle
Am Coal of N .1 (Allegheny Co)25
10
Amer Coiortype Co
Am Comne'l Alcohol Corp__20
10
6 American Crystal Sugar
100
7% preferred
Amer Encaustic Tiling___No par
Amer European Sec'e____No par
No par
Amer & For'n Power
20
6,500
1,500
5,300
1,400
2,200
1,900
4,400
19,500
200
4,800
800
1,300
200
100
iii-
4,400
300
13,400
800
fil-2
127
1712
1812
314
3112
5512
iii127
1718
*17
*3
3078
*55
127
1738
18
3,4
304
5512
200
4,100
-g- -LC-
-L61-4 5734 56 iii
-g(;- -ii- ii57'22 ;La1812 18
1714 1732 17
1812 1712 1814
1772 18
*4938 52
51
52
52
5212 52
5212 *5114 514
*2512 2572 26
27
2612 2612 *2614 2612 2632 2612
12012112012 *120 12234 .121 12112 12112 12112 12112 12234
11918 11934 11814 123
11912 12114 11834 120
11884 11934
•15412,156
156 156
156 156 *155 15712 156 156
17
17
17
1812 1734 1814 17
174 1638 1612
*3712 3812 3712 3834 3814 3834 38
361_
3812 36
1134 1134
1114 1178 1012 11
11
11
*1014 1114
*5212 56
5112 5212 5212 53
52
5212 53
53
7012 713* *6912 7112 7112 7234 7214 7234 7214 7214
*29
35
*29
35
*2914 35
*2914 35
*2914 35
*234 372 *234 372 *3
378
8
3
3
29
29
23
3034 294 304 284 2932 2834 2834
8
812
814 832
84 834
3
8341
84 834
6612 6712 674 7134 72
73
74
7512 75
7812
2141 214
214 212
232 212
218 214
2
218
*332 412 *33* 412 *34 44 *338 44 *34 44
34 4
378 414
334 34
3
338
3
314
2034 21! 21
2112 21
211
1912 2012 *1932 2112
.614 634
612 612
614 614
6
614
*512 618
1734 1812 18
184 1814 1832 1718 1714 *1714 1812
3
1034 1034 *10 4 11
11
11
*1034 1212 *1034 12
*4
5
43* 45g
47g 478
11143* 5
412 412
•22
2314 23
24
23,
8 2412 23
23
*22
23
32
32
32
3214 3238 3212 *3314 3212 324 321 2
412 41
412 434
434 434
412 458
412 412
3678 3734 3712 3734 374 3712 364 3678 *3612 3734
54 534
534 64
618 64
6
6(8
6
6
.
-- --. --- --- --- --- --- --- --- --214
21
212 278 *212 3
212 232
212 212
1714 1714
17
1812 1714 18
1678 1718 1478 1612
*4512 4712 46
48
47
48
46
46
42
4214
2138 2178 2158 2278 2214 2278 2218 2238 22
2238
*6
64 *6
738
614 614 *538 6
*6
734
*534 614 •61, 614 *518 814
6
6
*538 1114
1612 17
1614 1714 1634 1718
153* 1634 1514 1514
*80
84
•80
84
*80
82
*80
82
*80
82
.2114 2518 *2318 26 *2478 26 *2470 26 *2478 26
212 24
238 272
212 278
238
212
238 212
1332 134 1334 14
1314 14
*1338 134 1234 1338
1112 1134
1112 12,8 1133 1178 1118 1114 114 11143
1314 14 '' 134 144 144 1432 134 1432 1338 1334
135 135 *133 135 *133 135 z135 135
135 135
2038 2052 2018 2314 21,
8 2238 203* 2134 2034 21
71
7112 7112 7134 7214 7034 71
71
74
71
434 5
5
534
512 578
6
638
6
614
---- ---- ---- ---- ---- ---- ---- ---- ---- ---*23
2334 *23
2312 24
24
2212 23
2212 2212
354 3572 35
39
3634 374 3618 3712 36,
8 3712
1244 12412 124 12434 *12212 124
12312 124
*12312 124
•105 107 *10512 106 *100 10612 106 107 .106 107
68
68
68
69
68
67
*67
69
6814 6814
*124 12812 *124 12812 *124 12812 125 125
12612 1261 2
1612 1638 1618 1734 174 1734 17
1732 1612 17
9034 9034 914 914 9112 92
92
92
9112 9112
3912 40
3912 3912 3912 3912
*3914 3934 3934 40
6912 7012 6818 70,2 6714 6878 68
6812 68
6934
13012 131
12932 12938 12912 12912 130 130 .13018 131
2114 2178 2012 2134 2138 2158 2114 2114 2138 2138
10314 10312 10272 1064 104 10434 10314 10438 10312 10132
79
79
2912 7912
7934 7934 7734 8014 7912 80
81
7878 8212 8114 8214 81
8012 8138
8012 81
_
135 135 *135 140 *13518 138 *13512
*135 138
478 472
434 434 *44 _-i7
*412 512 *434 512
154 15
1512 15
1538 15
15
•1534 1614 15
1032 1112 1012 114 10
1014
104 11
10
10,2
56
56
56
*5014 56
56
*5014 55
58
*52
74 8
714
712
7314 8
714 732
74 Vs
4012 3812 39
404 39
38
3438 3878 38
3814
114
114
114
114
114
112
138
138 *114
114
5
412 412
5
412 412
•412 538 *112 534
414
4
44 414
4
*334 44
4
*378 418
38
*36
3812 *36 3912
3912 38
3912 *36
.36
11
1138 10,
4 11
1038 104
1038 1038 1038 1134
1978 1978
•1738 1878 1878 19
1712 174 177g 18
1632 11113
1738 1712 1712 1634 1634
1612 1612 17
105 10512 *10512 10712 10512 105't
•104 105 9034 105
*332 5
5
*332 5
*4
*314 5
*314 5
3978 4OIz
•3812 3912 3912 3934 3912 3972 3938 40
•__
•11812 _ -*11812 _ _ 11812 1181
*1184
•11814
; 10534 10534 *105 1-054 10514 106
10478 foils 10572 1-057
514 532
54 558
11514 512
54 542
5,4 532
6838 6934 6812 69
684 6834 68
6838 89
6914
*102
108 •102 10712 *102 108
105 105
•10612 109
STOCKS
NEW YORK STOCK
EXCHANGE
.212 3
.2,
8 3
112
112
13s
112
*5
514 *44 5
*418 5
412 418
*4
434 *34 412
23
2234 2234 *22
1161- i5i127 *128
1778 1718
1812 1814
34 *3
3214 1•3072
5612 5434
For footnotes see page 1266.
Sales
for
the
Week
Stock
Exchange
ClosedWashington's
Birthday
1,300
7,000
720
900
110
14,700
300
3,400
1,600
1.700
1,500
1,500
100
5,100
7,300
1,800
2,200
12,200
2,700
1,600
1,400
200
600
1,900
1,300
1,800
700
4,100
230
5,100
1,400
7,900
100
100
3,000
8,400
1,500
2,900
33,500
40
18,000
3,800
7,500
304)
26,300
600
300
900
30
7,800
390
800
7,600
500
1.800
24,900
2,600
8,700
100
300
140
14,100
200
3,200
5,700
600
500
1,000
100
23,700
1,000
1,700
50
2,900
400
900
22,400
5,200
100
Range Stnce Jan. 1
On Basis of 100-share Lots
Lowest
No par
Preferred
No par
2nd preferred
No par
$6 preferred
10
Amer Hawaiian S 8 Co
Amer Hide dr Leather...No par
100
Preferred
1
Amer Home Products
No par
American Ice
100
6% non-cum pre
Amer Internal Corp
No par
5 Ara L France & Foamite_No par
Preferred
100
American Locomotive__ _No par
100
Preferred
Amer Mach & Fdry Co___No par
Amer Mach & Metals____No par
No par
Votlng trust ctte
No par
Amer Metal Co Ltd
6% cony preferred
100
Amer News. NY Corp__ No par
Amer Power & Light____No pa
No par
$6 preferred
No var
$5 preferred
Had
No par
Am
& Stand San'y
Prefer red
100
American Rolling Mill
25
American Safety Razor __No par
American Seating v 1 a_ _No par
Amer Ship & Comm
No par
Amer Shipbuilding Co
No par
Amer Smelting & Refg
No par
Preferred
100
2nd preferred 6% sum
1043
American Snuff
25
Preferred
100
Amer Steel Foundries____No par
Preferred
100
American Stores
No par
Amer Sugar Refining
100
Preferred
100
Am Sumatra Tobacco__ _No par
Amer Telep & Teieg
100
American Tobacco
25
Common class B
25
Preferred
100
tAm Type Founders
No par
Preferred
100
Am Water Wks & Elee___No par
let preferred
No par
American Woolen
No par
Preferred
100
8Am Writing Paper
1
Preferred
No par
Amer Zinc Lead & Smelt......100
Preferred
25
Anaconda Copper Mining
50
Anaconda Wire & Cable_ _No par
Anchor Cap
No par
$6.50 cony preferred _ _No par
Andes Conner Mining
10
Archer Daniels MidI'd___No par
7% preferred
100
Armour & Co (Del) pret
100
Armour of Illinois new
5
$6 cony prof
No par
Preferred
100
No account is taken of much
$ per share
3634 Jan 23
110 Jan 10
578 Feb 6
8434 Jan 2
294 Feb 6
8 Jan 12
514 Jan 12
634 Jan 15
10912 Jan 29
138 Feb 20
1638 Feb 6
2 Jan 4
138 Feb 1
412 Feb 6
4 Feb 2
312 Feb 4
21 Jan 12
13234
12334
1513
17
3
Jan 15
Jan 4
Jan 15
Feb 6
Feb 6
2814 Jan 10
4812 Jan 11
4712 Jan 2
1312 Jan 12
43 Jan 11
2514 Feb 15
119 Jan 8
110 Jan 15
15134 Jan 4
1614 Feb 8
36 Feb 21
3 Jan 30
38 Jan 11
66 Feb 8
24 Feb 13
26 Feb 6
612 Feb 5
574 Jan 2
2 Feb 21
414 Jan 2
3 Feb 20
17 Jan 15
8 Feb 5
1312 Feb 5
1034 Feb 7
414 Feb 6
204 Feb 7
3038 Jan 15
312 Jan 2
2878 Jan 2
534 Jan 15
4 Feb 11
214 Feb 16
1478 Feb 21
42 Feb 21
z20 Jan 15
578 Feb 7
6 Jan 30
1414 Jan 15
72 Jan 2
224 Jan 3
214 Feb 7
1214 Jan 15
1013 Feb 7
1314 Feb 16
135 Jan 2
1972 Feb 7
67 Jan 4
44 Jan 18
58 Jan 3
2032 Feb 6
3234 Feb 6
121 Feb 4
103 Feb 14
63 Jan 16
125 Feb 20
1412 Jan 15
88 Feb 4
3712 Jan 31
60 Feb 1
12612 Jan 3
184 Jan 29
10234 Feb 7
7734 Feb 18
7878 Feb 18
12918 Jan 1
412 Jan 2
134 Jan 12
1014 Feb 20
5518 Feb 4
718 Feb 7
37 Feb 15
113 Jan 14
4 Feb 2
334 Feb 11
38 Jan 5
10 Feb 6
1612 Jan 2
15 Feb 7
103 Jan 4
412 Jan 12
36 Jan 16
11814 Jan 4
9978 Jan 21
518 Jan 15
6412 Jan 15
85 Jan 2
Highest
July 1
1933 to Range for
Jan. 31 Year 1934
1935
Low Low
Moe
$ per share $ per oh $ per share
30
35
43
3634 Jan 23
111
89
39
112 Jan 26
6
6
714 Jan 2
114
65
89 Jan 28
7014 z85
1412
16
3312 Jan 2
344
6
1014 Feb 18
634 1138
614 Jan 3
312
34
738
44
84 Feb 11
472
94
9l24 113
8018
11534 Jan 8
114
138
178 Jan 7
332
1653 2373
x2018 Jan 9 "1638
205
170
196
2
234
312 Jan 8
772
114
114
172 Jan 7
5,4
438 1612
432
7 Jan 4
4
4
1458
612 Jan 2
378 144
378
832 Jan 5
2318
15
1314
23 Jan 7
9814
82
82
141 Jan 3 10712 11518 16034
127 Feb 8 117
12212 130
1038 2332
1038
1778 Feb 18
1112 2012
2014 Jan 5
1112
24
314 Feb 11
213
734
46
2114
25
3214 Feb 19
27
39
57 Feb 18
5538
38
40
2712
2514 48
20
5734 Feb 16
114
1812 Feb 19
1113 25,4
5012
40
5212 Feb 13
3412
1912
1912 38
294 Jan 3
122
88
, 96
12234 Feb 21
80
9014 11434
123 Feb 18
12612 15212
156 Feb 18 120
334
12
12
2014 Jan 9
5612
3132
32
4532 Jan 9
4
412 1214
1178 Feb 18
14
19
40
53 Feb 19
4312
4614 7038
7234 Feb 19
20
22
3512
2
212
613
312 Jan 25
2034 6212
2034
3314 Jan 3
834 Feb 19
612
612 1312
32
7812 Feb 21
612 7272
118
5
118
3 Jan 3
4
4
51s Jan 21
1012
54 Jan 3
34
34 1334
2338 Feb 14
11,
4
11,
4 30
64
618 i7'
812 Jan 7
11
25
1014
20 Feb 14
1012
1012 2238
13 Jan 10
312
312 10,2
534 Jan 5
1734 424
2534 Jan 3 ,1734
3212 Feb 11
2434
2534 3634
3
10
3
472 Jan 17
2534
3734 Feb 16
2534 45,
4
634 Jan 3
434
484 11
34 Jan 18
4
314 10
2
6 Jan 18
1412
1411 3834
2034 Jan 9
3512
3512 7432
5612 Jan 9
12
1238 234
2334 Jan 3
314 1014
3
712 Jan 3
3
412 10
7 Jan 3
1278
1714 Feb 18
1272 2714
91
63
63
81 Feb 7
204
21
x2514 Jan 3
3414
3
3
1214
334 Jan 4
1132
1514 Feb 13
1138 294
912
134 Feb 13
912 2614
1618 Jan 7
934
10
174
138 Jan 4 10712 111(2 13772
1312 2814
1232
24 Jan 7
3338
74 Feb 21
36
654
2
218
632 Feb 20
732
ts
238
118 Jan 7
4
15
1732 30
264 Jan 7
304 5114
2812
404 Jan 7
125
71
100
12518 Jan 14
57
7114 10912
112 Jan 15
43
484 71
69 Feb 19
131 Feb 21 106
106
127,2
1012
1814 Jan 9
1018 26,2
52
594 92
92 Jan 4
37
4434
3512
43 Jan 9
4512
7012 Feb 16
72
46
10312 12912
131 Feb 21 102
2438 Jan 3 • 11
13,
4 24
10634 Jan 4 10018 1004 1254
6514 8512
6312
8434 Jan 7
6478
67
8638 Jan 7
89
135 Feb 18 105
1074 1304
218
3
13
634 Jan 18
7
734 2334
1932 Jan 18
124
1238 2732
z1472 Jan 10
50
54
60 Jan 5
80
7
94 Jan 2
1718
7
36
4512 Jan 3
38
8334
134 Jan 18
1
1
414
272
278 1712
612 Jan 18
434 Jan 4
334
334
9
32
3834 Jan 8
3612 50,8
1238 Jan 7 6 972
10
1734
1978 Feb 21
738
914
1838
1738 Jan 4
1318
1312 2434
10712 Jan 30
80
84
106
418
1012
418,
518 Jan 3
4012 Feb 21
2172
2614 394
11812 Feb 21 106
117
410
7614 10332
64
106 Feb 21
64 Jan 3
312
312
64
4614 7114
464
7032 Jan 10
10612 Feb 4
3/4
54
85
New York Stock Record-Continued-Page 2
1268
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Feb. 16
Monday
Feb. 18
$ per share
*5
538
*4
434
*6838 ____
Tuesday
Feb. 19
Wednesday
Feb. 20
Thursday
Feb. 21
Friday
Feb. 22
$ per share $ per share $ per share $ per share S per share
5
478 5
5
634
5
012 612
.312 7
*4
7
*4
4
4
4
*6833 ____ *6838
*6833 ---- *6833 -- --
11
11
11
11% 1034 1078 *1012 11
4 1138
*8812 91
89
89
*8612 90
*8612 00
8612 90
5934 5934 *58
*58
60
60
*55
60
*55
60
*3014 34
*3014 35
*3014 39
2934 3014
*3014 35
43
5212 455 475
4338 42
43
458 4338 445
*79
8112 82
8012 8012 81
80
80
80
81
28
28
28
3212 28% 3113 28
2812 29
29
*4
*514 6
6
*518 7
*54 7
*518 7
*7
84
12
1234 *8
812 812 *8
*818 1134
2438 2434 2414 25
25
2514 x2412 2434 2418 2438
40
40
41
3914 4114 411 1 4114 41
4012 4113
10812 10812 *10812 110 *108 110
108 110
10714 109
*512 638
*55g 612
512 512 *512 6
*512 7
25
23
27
24
24
2534 2334 2414 2312 2338
*912 978 1033 1033 *912 934
9
912
914
914
5134 5134 *5012 54
*51
53
*51
54
*51
517
? 412 5
47g
458
478 518
412 458
4
58
538
512
534 638
5
358 5
58 61,3
58
*2114 22
21
234 2213 23
1834 21
13
17
11
1238 1358 1134 1238 1112 1214
1138 1018 15
1334 1334 14
14
1512 13
17
14
138 1318
*10058 102
102 102 *100% 102
10114 102
10034 10078
40
40
*3912 41
*37
40
*3712 40
40
40
*10812 109 *10812 109
10812 109 *10812 110
110 110
*4
434
434 434 *4% 434
4
418
338 338
*3414 3514 35
36
*3512 3878 3512 3512 3414 3414
614 88
612 7
64 634
638 612
614 612
44
44
4338 4412 4238 44
*413a 4212 *4138 43
*108 10934 *10714 10934 *10712 10934 *10712 10934 *10712 10934
1712 174 1712 183
18
18
1712 177
1734 1734
*102
*10118 104 *10138 104 *102 104 *102 104
073
7412 -75
75
75
*73
75% 7212 73
7513
*1212 1238 1258 13
13
1334
138 1318 1318 1314
.1.1112 130 *11112 130 *11514 130
11514 130 *11514 122
153* 154 1514 164 1638 1658 1538 1618 1512 158
1534 153t
1558 1618
16
1614 16
1618 1578 16
3734 3734 3753 38
38
3814 *3734 378 38
38
29
3312 3034 318 298 23
297o 29
2938 3014
71
71
7312 69% 714 6912 6912
71
7334 72
19
1938 1914 2034 20
2014 1938 20
194 1912
1134 1134 12
124 1238 1138 1218 1158 1134
13
*1814 20
18
18
*1812 20
*1818 20
*19
20
*104 105 *104 105
105 105 *10214 106
106 106
*34
"33
3814 *34
3814 *34
38
*3312 39
3814
*834 9
834 938
9
014
834 9
83 834
58
56
5814 5714 58
5612 57
5614 5612
56
*95
97
*9534 97
97
97
97
9718 97
97
2412 25
2434 2514 2412 2514 2458 25
24% 25
303 31
3014 3112 3034 3112 303 314 3118 3112
*534 578
6
8
534 534
534 514
518 518
*31
114
*34
114
114
114
"4 113
*34 1 14
2814 2858 2738 2953 293 30
Stock
3013 2938 30
29
2738 2713 27
28
2778 2814 2834 3012 3012 3138
*34
3434 3418 344 3412 3412 34
341 1 3418 3412 Exchange
"214
212
212 212 "214 318 *214 314 *234 3
*2034 2518 *2034 254 *21
254 *204 2518 *2034 2518 Closed4218 4214 4138 4212 4314 4418 42
4334 4212 43%
*901* 9612 *9338 96'2 96
96
96
9612 95
95
Washing4812 4834 4838 483* 4938 4958 48
4934 48
48
*571858
58
584 xtiO
60
60
60
*57
59
ton's
124 12514 *124 12534 *124 12514 12412 12514 *12414 12532
538 553 •518 54
54 534
524 534
54 513 Birthday
6
6
_._-___
534 578
534 6
578 6
12
12
*1112 12
1112 1134
11 12 1112 118 1112
*65
7012 70
7012 894 70
694 70
70% 703
438 412
412 47
434 5
438 434
434 434
303 31
29 .3112 3014 3014 30
31
3012 3034
334 378
333 334
353 35
*333 334
312 334
*4
434 *412 434 *434 434 *41
458
412 432
1318
1233 1312 13
13
1312 1212 1314 1212 1234
*138 3
*118
3
*118 234 *118 3
*118 3
*78 3
*1
114 *1
114 "1
114 *1
114
14 01
118
1
1
•I
114
*1
118 *1
*%
14
*%
14
*% 14
%
%
*4
14
*7
8
7
7
714
738
7
7
*6
672
1512 1514 1558 1518 1538 1514 1512
1538 1538 15
238
2
2
17g
178
*218 234
218 214 *2
*814 034
814 814 *814 0
*814 912 *814 912
1832 *16
1838 *16
•18
1812 18
188* *16
1838
134
134
114
114
1638 1638
*4212 4412
41
4153
134
134
"Ill
112
1534 18
44
44
41
4212
14
134
113
*138
173* 1778
45
45
4132 4238
78
314
10
1312
53
1238
35
578
3512
__
r83q3814 95
5614 5678
94
94
4174 4218
297s 3034
212 3
*2
2%
17
18
2334 2478
,
46
4734
*914 11
01 104
42
4234
*5
534
28
2934
*434 6
3912 40
4112 42
*114 24
*138 212
*134 2
*338 354
*133 8
214
214
338 31*
438 438
*838 8%
638 653
2358 2353
24
214
34 313
234 234
53
34
314 312
10
10
13% 1438
*4812 53
1218 1278
35
36
614 678
3512 3512
*82
__
'
587 -95
55% 63
*94
95
4132 44
2912 3212
258 253
23* '23*
1814
17
24
2434
45
48
*1014 11
101 104
423* 45
12
3/3
314 3,
2
10
1012
1378 1438
*49
53
1214 1238
*34
3512
638 632
353k 3512
*83
__
*8834 -95
5918 6034
95
95
4238 4358
3114 3234
212 234
24 218
197
*18
243 2434
45
46
912 958
*9914 104
4278 4438
"t
*34
*934
1313
549
1238
5341 1
5%
13412
Sales
for
the
Week
5,1
2978
*478
3912
4111
138
0212
.517
334
*134
214
331
433
9
812
2414
21 t
35g
3
178
134 131
*134
138
138
112 14
1678
17
1714 *16
45
45
45
45
4134 42
4133 4178
12
12
34 34
11
010
137 1378
*49
53
1134 121g
*34% 3512
6
6
*34
3512
*83
__.
*8812 -95
5714 597
95 • 95
4238 4314
3038 3138
*212 3
214 214
1012
*17
2414 2434
*4412 4634
*914 11
*9914 104
43
44
514
512 51°
514 5
3012 *2753 293; *2738 29
612 4472 6
478 48
42
4138 42
43
4418
443* 4212 43% 4212 43
24 *114 24
14
VI
27
212 212
212 212
2
17
2
18 17
4
4
4
378 3%
334 *134 334 *1.54 334
234
234 278
238 234
37
438
4
312 378
512
434 514
44 48
1012
9
978
812 834
634
634 7
6% 658
2434 2412 25
2434 2412
238
23
238
235 238
312
34
312 312 53
3
*234 3
212 2%
12
38
313 314
101s 1033
1312 1334
*49
53
12
1234
35
35
*534 753
*3312 3512
*83
--*8812 -95
5714 5834
95
95
4178 4212
3012 304
238 212
*218 23
*1718 1834
247 2512
47
48
*914 11
*9914 104
4338 4434
*533 512
30
*28
*434 7
4314 4418
4238 4318
*14 212
*218 212
133 134
358 378
*134 334
214 212
312 358
414 412
818 814
*638 612
•2314 2334
2
238
3
3
*212 3
--- -- -- ---- ---- ---- ---- ---- ---- -- - - ---*10
*934 12
11
12
10
10
1014 *10
101 i
STOCKS
NEW YORK STOCK
EXCHANGE
Feb. 23 1935
Range Since]Jan. ,
On Baste of 100-share Lots
Lowest
Highest
July 1
1933 to Range for
Jan. 31 Year 1934
1935 ----.
L
Low
High
Shares
$ per share $ per sh $ per share
Par $ per share
27
638 Jan 3
a
453 Jan 15
1,300 Arnold Constable Corp
838
5
438 Feb 8
318
4 Feb 21
4
1012
No par
100 Artloom Corp
6334 704
6334
Preferred
100 7018 Jan 22 704 Jan 22
100
35
44
934
Art Metal Construction
10
912 Feb 6 1358 Jan 8
714
1
714 18,4
1,800 Associated Dry Goods
44
46
100
90
6% let preferred
100 8758 Jan 15 95 Jan 24
36
36
7% 2d preferred
100 593.1 Feb 18 70 Jan 18
100
6478
26
2912 4013
25 2934 Feb 21 31 Jan 12
30 Associated OH
4514 73%
46,200 Atch l'opeka dr Santa Fe__ .100 4178 Feb 6 55% Jan 7 6 4418
7018 90
5314
Preferred
100 7512 Feb 5 8612 Jan 5
1,300
2412
2412 64,4
100 2714 Feb 6 3714 Jan 4
4,900 Atlantic Coast Line RR
5
16
5
7 Jan 7
5 Feb 5
At G & W I 813 Lines___No par
77
24
7%
912 Jan 19
8 Jan 12
Preferred
100
100
2118
2112 3514
25 2334 Jan 16 255 Jan 2
7,800 Atlantic Refining
3514 5512
18
No par 3712 Jan 30 43 Jan 11
1,400 Atlas Powder
75
Preferred
100 10634 Jan 2 109 Jan 29
93
70
107
512
54 1614
734 Jan 8
512 Feb 19
No par
100 Atlas Tack Corp
1612
1612 5738
No par 2212 Feb 6 2934 Jan 7
3,300 Auburn Automobile
4
8% Jan 29 14 Jan 2
No par
1.000 Austin Nichols
61
: 1638
Prior A
3114 65
2753
50 Jan 28 63 Jan 2
No pa
10
414 Feb 8
10,000 Aviation Corp of Del (The)___6
334 1034
553 Jan 3 21 38
412 10
40,900 Baldwin Loco Works-..No par
38 Feb 21
653 Jan 9 21 434
1614
1614 6434
6,900
Preferred
100 13 Feb 21
2634 Jan 21
28,600 Baltimore & Ohio
100
934 Feb 7 147 Jan 7
1073
1234 3412
Preferred
1312
5,300
100 13 Feb 7 17% Jan 7
16
3733
140 Bamberger (L) de Co pref
86
8612 10273
100 1004 Feb 21 102 Jan 2
3512 464
200 Bangor & Aroostook
2914
50 3718 Jan 29 4214 Jan 2
91 12
954 115
50
Preferred
100 108 Jan 15 110 Jan 11
53 Jan 22
33 Feb 21
214
400 Barker Brothers
214
No par
612
120
14
100 3213 Jan 15 4034 Jan 22
164 3812
63.4% cony preferred
7 Jan 5
572
8,100 Barnsdall Corp
5
6 Feb 7
5e 10
23
4534
23
800 Bayuk Cigars the
No par 40 Jan 15 4438 Jan 7
lot preferred
80
89
100 10734 Jan 11 10814 Jan 28
10912
84
2,600 Beatrice Creamery
25 1618 Feb 4 188 Feb 18
1014 194
55
55
100
Preferred
100 10012 Jan 5 10218 Jan 28
58
64
500 Beech-Nut Packing Co
7638
20 72 Feb 2 78 Jan 12
2,900 Belding Hemingway Co__No par
7
8% 1514
1238 Jan 16 1314 Jan 10
Belgian Nat Rys part pref
83%
9513 127
11234 Jan 3 11418 Jan 8
3
14,700 Bondi: Aviation
94
934 23%
1712 Jan 2
5 1418 Feb 6
3,200 Beneficial Indus Loan__ __No par
1218 1938
1558 Feb 18 1733 Jan 7 2 12
26
40
2,100 Best & Co
21
No par 34 Jan 30 3814 Feb 19
29,400 Bethlehem Steel Corp
23
2418 4912
No par 284 Feb 7 3438 Jan 8
2,100
5478 81
7% preferred
444
100 68 Feb 6 7734 Jan 9
18
560 Bigelow-Sant Carpet Inc- No par
1914 40
1812 Feb 15 2814 Jan 23
6
164
5,800 Blew-Knox Co
6
No par
1078 Jan 4 1378 Jan 8
10 Bloomingdale Brothers
17
26
16
18 Feb 16 2314 Jan 21
No par
Preferred
109
88
90
65
100 10314 Jan 22 108 Jan 3
Blumenthal & Co pref
28
28
100 35 Jan 2 4034 Jan 23
5634
4.700 Boeing Airplane Co
634 11 14
65
5
818 Jan 15 10 Jan 2
2,700 Bohn Aluminum dr Br
3334
44% 6834
.5 53 Jan 29 597 Jan 8
150 Bon Ami class A
76
94
68
9713 Feb 20
No Dar 90 Jan 31
11,100 Borden Co (The)
18
1978 2814
25 2314 Jan 29 2534 Jan 7
11,700 Borg-Warner Corp
1638 3138
10 2814 Jan 15 3133 Feb 20 * 11%
800 Boston & Maine
514
514 1912
100
518 Feb 21
712 Jan 4
28
100 :Botany Cons Mills class A___60
34 Feb 7
14 Jan 9
72
3
50,100 Briggs Manufacturing...No p..1
2838
12
614
2412 Feb 7 3018 Feb 20
9,100 Briggs & Stratton
14
2712
No par 2318 Jan 17 3138 Feb 21
1012
700 Bristol-Myers Co
26
25
6 x3312 Feb 8 3614 Jan 10
37,2
33
100 Brooklyn & Queens Tr___No par
23
2 Feb 5
312 Jan 5
8%
Preferred
No par 22 Feb 2 317 Jan 3
2418
3114 5814
19,300 Bklyn Mash Transit
No par 36% Jan 15 4418 Feb 19
2534
2814 4478
600
16 preferred series A
No par 90 Jan 4 9612 Feb 20
6914
8218 97
1,600 Brooklyn Unica Gas
48
Vo par 48 Feb 20 52 Jan 10
804
46
1,000 Brown Shoe Co
No par
57 Jan 3 260 Feb 19
41
45
61
Preferred
11814 12514
100 124 Feb 14 121 Feb 14 117
4
400 Bruns-Balke-CollenderNo par
4
107*
5 Feb 6
673 Jan 9
938
3,400 Bucyrus-Erie Co
312
34
10
5 Jan 2
633 Jan 7
1432
Preferred
6
1,000
6
5 1012 Jan 2 13 Jan 3
330
7% preferred
47
50
75
100 64 Jan 2 74 Jan 25
4,400 Budd (E a) Mfg
3
734
3
No par
4 Feb 6
514 Jan 2
44
460
7% preferred
16
16
100 26 Jan 15 33 Jan 22
2,500 Budd Wheel
2
No par
2
5%
34 Jan 11
4,4 Jan 22
100 Bulova Watch
2%
612
No par
44 Jan 23
24
4% Jan 16
57
4,400 Bullard Co
No par
11 14 Feb 6 15 Jan 2
418
1512
6
Burns Bros class A
No par
2 Jan 19
234 Jan 25
1
138
„
Class A TIC
28
412
No par
1 Jan 17
112 Jan 23
Class B
100
No par
1
312
1 Jan 8
1
18 Feb 7
14
50
Class B ctts
No par
li
212
12 Feb 6
58 Feb 20
110
7% preferred
4
1512
100
7 Feb 6
978 Jan 23
3
6,000 Burroughs Add Mach____No par
1414 Jan 15 1534 Jan 7
1012
1012 31111s
374
24
400 :Bush Term
No par
17 Jan 3
318 Jan 21
54
100
Debenture
2
100
678 Jan 14 1012 Jan 22
234
9,2
513
21
Bush
Term
Blgu
413
30
prof ctfe_100 1414 Jan 14 2212 Jan 21
138
113
218
Butte & Superior Wising
_10
700 Butte Copper & Zhao
5
134 Jan 4
2 Jan 3
112
112
3,4
118
434
300 :Butterick Co
113
No par
14 Feb 13
15 Jan 3
1,900 Byers Co (A M)
1334 3214
No par
1512 Feb 6 2058 Jan 7
1334
110
Preferred
100 40 Feb 13 60 Jan 5
40
40
0773
8,900 California Packing
No par 3612 Jan 15 4212 Feb 18
16%
1884 445t
12
8,400 Callahan Zino-Lead
4
14
1
12 Feb 19
l's Jan 3
2,800 Calumet & Heels Cons Cop___25
234
23
658
3 Feb 8
418 Jan 7
600 Campbell W & C Fdy____No par
()
1572
9 Feb 5 1158 Jan 3
6
5,200 Canada Dry Ginger Ale
1212 2912
6 1278 Feb 7 1658 Jan 7
1212
Canada Southall
100 52 Jan 18 63 Feb 4
44
4812 56,2
10,000 Canadian Pacific
1078
1078 18,4
25 1112 Jan 2 1334 Jan 9
500 Cannon Mills
284 38,4
No par 3358 Jan 2 36 Jan 10
2214
700 Capital Adminis el A
538 10,4
414
74 Jan 9
1
534 Jan 29
100
Preferred A
39
265
10 3334 Feb 1
26
37 Jan 0
Carolina Clinch de Ohio Ry..100 8413 Jan 16 8412 Jan 15
85
74
60
Stpd
9212
70
70
100 90 Jan 29 90 Jan 29
10,300 Case (J I) Co
35
100 51% Jan 15 63 Feb 18
35
86%
210
Preferred certificates
100 92 Jan 12 99 Jan 8
5878 93
5678
13,900 Caterpillar Tractor
23
3834
No par 364 Jan 16 44 Fob 18
15
21,300 Celanese Corp of Am
1718 4471
No par
1718
2838 Jan 29 353 Jan 7
57
1,000 Welotex Corp
No par
214 Feb 14
118
118
438 Jan 18
78
1
4
700
Certificates
No par
1% Jan 23
318 Jan 18
270
212
.
8
5:2
3 2
12
2:
Preferred
100 17 Feb 14 2512 Jan 18
5,500 Central Aguirre AssoNo par
1834 321a
2214 Feb 13 2512 Feb 21
1834
92
900 Central RR of New Jamey
100 45 Feb 2 5513 Jan 4
4712
53
200 Century Ribbon Mills___No par
912 Feb 11
1238 Jan 16
5,3
82
Preferred
75
110,2
100 102 Jan 26 10912 Jan 2
31,500 Corrode Pasco CopPer___No pat
3014 4412
2334
3858 Jan 15 47 Jan 7
1,400 Certain-Teed Producti___No par
314
734
258
54 Jan 31
653 Jan 7
40
1712 35
7% preferred
1058
100 2712 Jan 2 3314 Jan 23
100 Checker Cab
412
412 104
5
478 Feb 20
658 Jan 7
34
487k
7.000 Chesapeake Corp
2912
No par
38 Feb 7 4478 Jan 4
18,500 Chesapeake & Ohio
3912 4853
3718
25 405 Feb 6 4538 Jan 7
14
7
100 /ChM & East III Ry Co
1
17 Jan 4
24 Jan 12
100
200
6% preferred
258 Jan 8
1 12
153
8
100
2 Jan 3
500 Chicago Great Western
1 12
112
612
100
114 Feb 20
214 Jan 7
312 1178
1.300
3%
Preferred
100
312 Feb 6
412 Jan 4
15
:Chic Ind dr Loubly prat _100
7
1 34
2
812
2
3,800 Chic Milw SIP & Pae____No par
218 Feb 7
3 Jan 3
312 1314
312
6,900
Preferred
100
34 Feb 7
434 Jan 4
10,700 Chicago & North Western.. 100
418 Feb 6
312
313 15
558 Jan 7
83, 28
1,000
Preferred
6%
100
8 Jan 15 1058 Jan 8
57 Feb 6
2.400 Chicago Pneumat Tool_No par
358
353
973
78* Jan 7
1414 2854
1,100
1414
Cony preferred
No par 22 Jan 15 2618 Jan 7
15
3,300 :Chicago Rock 181 et Pactfle__100
13
64
17 Jan 2
258 Jan 9
958
218
2%
600
7% preferred
418 Jan 9
100
3 Jan 4
8
2
400
8% preferred
4 Jan 10
2
100
212 Feb 6
64
113
Chic 8t Paul Minn & Om113
100
314
4
II%
Preferred
100
913 x16
913
400 Chicago Yellow Cab
Vs par
10 Feb 20 1118 Jan 3
New York Stock Record-Continued-Page 3
Volume 140
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Feb, 16
Monday
Feb. 18
Tuesday
Feb. 19
Wednesday
Feb. 20
Thursday
Feb. 21
Friday
Feb. 22
$ per share $ per share $ per share $ per share $ per share $ per share
2878 29
2838 2934 29
2938 2878 29
2812 28%
538 53
538 538
512 534
012 512
512 512
*9
13
*10
14
*9
14
*9
11
*7
9
3918 3912 3812 425
3934 4114 3918 4018 39
39%
2112
21
2112 2114 2114 *21
*2012 2034 2034 21
*9012 92
9178 9212 9212 9312 *915 95
93
93
*32
50
.32
50
*40
50
*32
50
*32
50
118
118
1
118
1
1
118
118
1
118
12
12
12
,2
12
58
*12
58
*12
38
518
518 512
5
.5
5
*412 5
*513 512
3
*4
514 *312 514
5
5
*3
54 *3
514
13
*1212 14
*1312 14
13
*1312 1458 *14
1434
*8112 ____ *8112 ---- 8112 8112 *8112 84
08112 84
*4412
*4414
*4414
'4414 - - *4414•_
818
*2512 1614 2614 1614 2712 1712 27
2
/12 *27
•11338
*11358 125 *11358
__ *114
___ *115 130
17412 1-7412 17412 176
176 fis *170 1-75 *17012 177
5634 5634 5634 5678 *56
*56
5678
5714 5512 58
*340 _
*342
_ _ *346
_ __ *346
_ *346
1714 I712 17 -17718
17
1-7
164
10134 10134 10134 10134 10112 101.12 10114 10112 102 10212
13
13
13
1434
1358 14
1312 1378 1278 13
80
*7734 81
80
*7734 81
*7734 81
*7734 80
*612 J
634 634 *612 9
634 634 *658 0
438 438
412 434
438 434
414 48
444 41s
*20
21
2314 2314 *20
2212 20
20
20
20
*17
•I7
18
*17
18
18
18
18
*17
18
1212 1212 1212 1212 *1212 1334 12
1212 1112 12
11
*912 107
*912 11
11
10
10
*912 11
75
7578 75
76
7518 7738
753* 7514 7714 75
3834 4018 3812 39
3834 394 3814 41
3814 3918
518 533
514 6
512 6
5
538
5
538
57
5734 58
58
56
57
577 58
5512 5512
*4912 51
50
50
*4912 55
49
4912 *47
4912
4512 4578 4514 4658 4618 4634 4614 4714 4658 4718
3034 3034 *30
*3012 31
*3012 32
3034 3012 3012
*54
5434 5434 5434 547 5478 5478 55
*5518 5534
*3118 3134 *3118 3134 3118 3134 3112 3112 3112 3113
*110 111
110 111
111 111
110 110 .11012 111
6134 6012 6112 6012 6114
6118 6112 6034 6134 61
115 115 *114 11518
.11312 115
11458 11458 115 115
2238 2134 2238 2134 2178
211s 2114 2012 2212 22
1
118
1
1%
1
118
1
118
1
118
3978 3434 3634 3414 3512 3414 347
3634 3734 37
•714 8
*714 8
*714 8
'714 8
714 714
3312 3212 3312 33
3312
333* 3358 3212 3414 33
9
958 958 *914 10
*812 918
9
952 958
3512 36
37
37
35
36
*24
32
*3512 37
75
*45
*44
75
*45
75
*4618 75
•46% 75
873 9
918 918
*9
912
85s 9
834 9
*6814 75
*6814 75
*6814 75
*70
75
*70
75
80
7612 764 *7678 80
80
81
7512 7512 *76
*69
. *7312 _ . *69 _ _ *69 _
.69
618 -614
6
_-612
612 - 38
6
-6-18
57
-5-78
2058 2114
19
2078 1912 2012 19
20
1934 20
1718 18
1578 17
1618 1678
178 174 1714 183
Stock
76
75
7612 7212 75
*75
76
76
7378 74
*134 214 *134 214
2
2
*134 2
*134
2 Exchange
8
814
712 758
73
8
734 818
734 78
*109 11112 *109 11112 *10912 11112 *10912 11112+10912 11112 Closed3
3
3
318
3
3
3
3
3
314
%
34
34
34
34
78
34
34
34
78 Washing114 1134
113 1212 1134 1214
1134 1178 1134 1178
438 438
418 412
ton's
438 412
414 414
438 438
534 578
6
6
6
614
6
6
558 534
78
1
78
1
7g
1
Birthday
78
1
78
1
*5012 52
52
53
54
5012 511
52
51
51
6912 7012 6934 7312 71
70
72
7314 7018 72
*8
812
812 9%
814 814
5'4
833 9
841
*3118 32
32
3314 3234 3278 3214 3234 3212 3278
118
118
1 18
118
114
118
118
114
118
118
1818 1814 1778 1834 1818 1878 1778 1838 1778 1838
475 475
4712 4814 4712 4712 4712 4712 '4712 48
67
67
66
68
67
6712 6658 67
6614 6658
*153•153 . _ 5153 _ _ .15312 __ _ *15312 __ _
572 5.72
6
6
-8%
55* 55
58 E;34
3838 383* 3814 3958 3914 3912 3914 3958 3938 3932
1412 1512 144 1534 15
1534
14
15
*141.2 1434
2638 2612 2614 28
27
2712 2658 2718 x2658 2658
*445 4478 4478 45
45
45
45
45
*44
4518
*75 _
*79
84
*80
84
*70 412 412
4
414
412 I3-4
412 458 *414
412
22
2178
2218 2218 22
2314 23
2314 22
22
*60
63
*60
63 .60
63
*6112 67
*60
63
13
112
133 13*
1,
8
114
112 *114
15*
133
*434 518
518 518
512 52
512 512
6
7
658 7
634 758
634 732
612 7
64 7
5414 52
51
5234 5112 5434 53
52
5112 5434
4512 4512 45
45
*44
45
45
46
4518 4512
1912 2012 19
1912 1934 2012
411834 1958 1834 2014
98
9612 0612 9614 9614 9634 9634 9614 9634 97
258 234
212 258
212 234
258 234
212 258
838 858
834 912
834 918
832 834
833 834
83
*80
8112 *7814 80
*80
8212 *80
*7314 80
*64
6418 ;1164
6418 *62
6418 *62
*643 70
6418
194 1914 2058 20
2034 1934 20
19
1934 1914
8
8
*712 8% .734 818 *753 818 "712 818
2914 3012 2812 2938 2812 2918
2858 2938 2818 31
2034 203
2014 2034 2014 2012 2038 203 *20% 20%
397
35
3714 3312 3412 33
•3258 3314 33
3334
15
1534 1434 15
1514 15% 1478 1814 1534 1634
33
333 334
*318
333 33
•278 318 *234 314
7013 70
.67
6934 67
7058 67
68
6812 6912
*234 478 *234 478 *234 478 *23
478 *24 47
*6
15
*6
15
.6
15
*6
15
.6
15
41
4112 4112 *42
41
4312 42
42 .42
4412
*115 11614 *115 11614 *115 11614 *11.5 11614 *115 11614
2812 29
2858 2858 2814 29
28
28
28
2814
*355 39
*36
38
*36
38
*36
38
*3533 40
37124012 38
3934 3734 3812 3838 384
384 39
1012
2278 2218 2234
2214 2214 2138 2438 2212 233* 22
15
15
1512 16
1612 1612 1512 1614 *1512 16
4,618
714
7
714 .612 712 .612 712 .612 712
38
*58
58
"33
5/3
*38
58
*38
58
*38
513 1
*12
1
*12
1
*12 1
*12
1
414
412 412 *414 438 *4
4
*358 334
412
*15
16
15
1534 1534 *15
16
*15
1633 15
•102 112 *102 112 *104 112 *10412 112 *10412 112
9412 9912 963* 973* 9514 97
9518 9638
947 95
12758 12778 12734 12734 512712 12778 12778 12778 12734 128
10412 10412 •10334 105 *104 105
10412 10412 104 105
...
_ •2212 - . *2212 - _ *2212 - - *2212 __ _
*2212
7712
714 -7-14 .612 13-14
718 -712 57
718 -i14
12034 12112
119 123
122 12318 12118 123
120 121
14612
147 147
14678 147
1467s 147 147
146 146
19% 2078 194 2012 193 2014 1912 20
1953 194
6
6
618 618
614 638
6
6
6%
•6
26
2714 2514 2614 2514 26
255 2614 2514 28
108 1084 1084 10814 *108 10814 108 1084
108 108
514
8
518
5
514
512
514 514
512 552
734 734 "77e 818
77s 818
734 838
714 734
214
238
218 238
258
212 218
214
24 214
3
•715
714
7
74
634 738
612 7
638 612
551., 6
578 652 *538 6
518 512
518
512
For too notes see page 1266.
1717 173, fp,
*7813
_-
1012 ups 11
11
11
1055 nig io78 1078
Sales
for
the
Week
STOCKS
NEW YORK STOCK
EXCHANGE
1,000
14,200
1,500
3,000
3,300
9,600
150
6,900
3,600
5,700
12,800
5,000
900
2,400
1,300
1,800
1,140
14,700
2,090
1,100
3,600
2,000
10,000
6,400
4,700
100
15,000
3,000
5,200
13,900
900
1,500
300
1,200
20,200
1,500
15,900
1,100
200
400
200
18,600
1.200
360
1,100
5,300
300
9,600
700
25,300
390
4,000
6,000
5,600
1.500
1,100
Range Since Jan. 1
On Basis of 100-share Lots
Lowest
Shares
Par
10
8,100 Chickasha Cotton 011
No par
2,300 Childs Co
Chlle Copper Co
25
5
77,500 Chrysler Corp
1,300 City Ice & Fuel
No par
140
Preferred
100
City Investing
100
No par
5,600 City Stores
1,200
Voting trust certifs
No par
Class A
No par
800
Class A vtc
No par
100
No par
100 Clark Equipment
50
60 Cleveland & Pittsburgh
Special
50
400 Cluett Peabody & Co____No par
Preferred
100
800 Coca-Cola Co (The)
No par
Class A
No par
400
Coca Cola Internal Corp_No par
8,900 Colgate-Palmollve-Peet__ No par
100
900
6% preferred
No par
4,400 Collins & Aikman
10
Preferred
100
No par
50 Colonial Beacon 011
1,300 :Colorado Fuel & Iron
No par
100
80
Preferred
100 Colorado & Southern
100
230
100
4% let prefsrted
60
4% 2d preferred
100
4,800 Columbian Carbon v t a __No par
6,400 Columb Pict Corp v t a___No par
40,000 Columbia Gas & Elec____No par
Preferred series A
100
1,500
100
50
5% preferred
19,400 Commercial Credit
10
25
120
7% 181 preferred
Class A
60
400
100
Preferred B
25
100
160
634% first ()referrer.
No par
11,100 Comm Invest Trust
400
Cony preferred
No par
37,800 Commercial Solvente
No par
22,200 Commonw'Ith & Sou
No par
No par
$6 preferred aeries
5,600
Ins
No
par:
100 Conde Nast Pub.,
7,100 Congoleum-Nairn 1no
No par
No par
300 Congress Cigar
60 Connecticut Ry & L1ghting...100
Preferred
100
1,900 Consolidated Cigar
No par
Preferred
100
130
Prior preferred
100
Prior pref ex-warrants_
RIO
1
5,500 Consol Film Indus
22,000
Preferred
No par
No par
55,200 Consolidated Gas Co
No par
3,400
Preferred
No Par
200 Consol Laundries Corp
No par
18,150 Consol Oil Corp
101)
8,
7 preferred
1,600 Consol RR of Cuba pref
100
4,200 Consolidated Textile
No par
20
3,900 Container Corp class A
No par
2,200
Class B
No par
1,600 Continental Bak class A
4,300
Class B
No par
Preferred
100
20
Continental Can Inc
Cont'l Diamond Fibre
.5
Continental Insurance
2 50
No par
Continental Motors
Continental 011 of Del
5
Corn Exchange Bank Trust 00 20
Corn Products Refining
25
Preferred
100
No par
COL)
, Inc
Cream of Wheat etre
No par
Crosley Radio Corp
No par
Crown Cork & Seal
No par
No par
$2.70 preferred
Crown W'mette Pap let pfNo Par
Crown Zellerback v t o___No par
Crucible Steel of America___ -100
100
Preferred
Cuba Co (The)
No par
Cuba RR 6% pref
100
10
Cuban-American Sugar
Preferred
100
Cudahy Packing
60
Curtis Pub Co (The)
No par
Preferred
No par
°liaise-Wright
1
Class A
1
Cushman's Sons 7% pref _...100
8% preferred
No par
Cutler-Hammer Inc
No par
Davega Stores Corp
+5
Deere & Co
No par
Preferred
20
Delaware & Hudson
100
Delaware Lack & Western___50
Deny & Rio Or West pref
100
Detroit Edison
100
Detroit & Mackinac fly 00 .100
5% non-cum preferred__ _100
Devoe & Reynolds A____Bio par
1st preferred
100
Diamond Match
No par
Participating preferred
25
Dome Mines Ltd
Net par
Dominion Stores Ltd
No par
Douglas Aircraft Co Inc No par
Dresser(SR) Mfg cony A No par
Convertible class B
No par
Duluth SS & Atlantic
100
Preferred
100
Dunhill International
1
Duplan Silk
No par
Preferred
100
DuPont deNemours(E.I.)&Co.20
6% non-voting deb
100
Duquesne Light 1st pref
100
Durham Hosiery Mills pred..100
Eastern Rolling Mills____No par
Eastman Kodak (N J)___No par
6% cum preferred
100
Eaton Mfg Co
No par
Eitingon &Mid
No par
Dec Auto-Lite (The)
5
Preferred
100
Electric Boat
3
Elec & Mus Ind Am shares
Electric Power & Light __No par
Preferred
No par
S6 preferred
No par
1269
Highest
July 1
1933 to Range for
Jan. 31 Year 1934
1935
Low Low
High
$ per chars
$ per share $ per oh $ per share
4 Feb 18
15
2612 Feb 7 29,
1914 303
5118 Feb 5
712 Jan 7
318
334
1158
1014
12 Jan 22 1218 Jan 28
1014
175
2614
3512 Jan 29 4212 Jan 3
2914 6038
1412
1714 243*
20 Jan 14 2112 Feb 19
9212
6338
67
87 Jan 10 9312 Feb 19
37%
3714 52
12
78 Jan 2
112 Jan 17
12
2%
78 Jan 17
12 Jan 10
4
15
14
214
43* Jan 11
2
67 Jan 17
58
514
5 Jan 4
618 Jan 17
34
2
13 Feb 7 15 Jan 18
612
834 2134
60
7012 78
8112 Feb 19 x82 Feb 7
31
38
45
22
24% 45
2434 Feb 1
2812 Jan 7
90
95
115
11212 Jan 7 116 Feb 9
9514 161 12
85
16178 Jan 2 17812 Jan 11
4512
5018 57
5512 Jan 5 57 Jan 23
200
314
314
93* 1818
9
1018 Feb 5 1814 Jan 7
66
683k 10212
101 Jan 3 10212 Jan 16
10
1218 Feb 6
153 Jan 7 SI 978
2812
94
74
72
79 Jan 23 85 Jan 8
5
5
9
712 Feb 15
64 Jan 10
27
358
8%
512 Jan 21
418 Jan 12
9
1012 32
19 Jan 15 2812 Jan 21
165
16% 40%
1612 Feb 7 1958 Jan 8
3314
12
13
15 Jan 8
1112 Feb 21
11
11
30
10 Feb 14 13 Jan 8
45
58
67 Jan 15 773* Feb 21
774
2112 415
1718
3414 Jan 16 41 Feb 18
612
658 1914
5 Feb 15
754 Jan 10
50
62
784
55 Jan 7 5914 Jan 26
41
41
71
47 Jan 31 5134 Feb 9
1114
1858 404
3912 Jan 2 4714 Feb 20
22
2312 3018
29 Jan 5 3214 Feb 4
32
38
53
5212 Jan 7 5614 Jan 24
23
24
301e
2912 Jan 3 33 Jan 25
85
9112 110
1097 Jan 2 112 Jan 23
3
35
61
5614 Feb 7 6214 Jan 9 32 2214
8412
91
114
1137 Jan 16 11512 Jan 29
154 36%
154
1914 Feb 6 2378 Jan 7
1
1
354
1 Feb 6
133 Jan 2
2112 5234
173*
2918 Jan 4 4058 Feb 13
3
5
5
Jan
23
74
714 Jan 23
133*
1612
22
353*
3112 Feb 7 347 Jan 2
714 1412
9 Feb 7 1012 Jan 18
714
32
61
32
34% Jan 2 42 Jan 4
507
65
58
514
133*
514
812 Jan 30
1012 Jan 9
75
3014
31
73 Jan 14 74 Jan 24
4514
4514 7478
7134 Feb 8 81 Feb 21
4514
49
70
53 Jan 7
712 Jan 16
155
158
614
754
10% 2033
19 Feb 18 2218 Feb 15
1812
1812 473
158 Feb 20 2253 Jan 11
x71
95
7212 Feb 20 82 Jan 11 171
43
112
214 Jan 18
14 Jan 3
13*
75 Feb 6
714
834 Jan 2
714 1414
11218
108
10812 Feb 5 112 Jan 28 103
314 Feb 21
24
212 Jan 25
24
6%
12
cs Feb 5
1% Jan 5
12
215
1058 Feb 7 133* Jan 10
414
61s
1334
2
538
4 Feb 6
518 Jan 9
233
514
514
1458
512 Feb 5
634 Jan 7
7s Jan 5
1 Jan 3
78
2%
34
4414 64
4414
4614 Jan 28 54 Feb 19
37
5634 6412
6234 Jan 15 7312 Feb 18
1124
6
9% Feb 18
6
7 Jan 15
20
233* 3614
30 Feb 7 34 Jan 8
28
34 Jan 2
134 Jan 8
34
14
1534 224
1214
1534 Jan 15 1918 Jan 3
4012
4012 61
4414 Jan 2 4812 Feb 14
5512
5512 8412
62 Feb 6 68 Feb 18
135
15012
149 Jan 2 153 Feb 15 133
978
34
678 Jan 3
558 Jan 29
33*
23
28
357 Jan 15 3958 Feb 18
3614
8
1712
7
1212 Jan 15 154 Feb 18
18%
184 3614
2358 Jan 30 28 Feb 18
3512 4414
32
4312 Jan 4 45 Feb 18
47
84
83 Jan 17 86 Jan 11 0740
314
658
4 Feb 4
355
533 Jan 10
17
14
3838
2012 Jan 15 2514 Jan 7
44
71
30
61 Feb 13 68 Jan 2
72
312
12's Feb 19
1 Jan 28
34
3
314 1012
7 Feb 21
5 Jan 5
53 Jan 2
212
758 Feb 18
31
975
1412
2015 65
401 Jan 3 543 Feb 18
3518
37
5255
41 Feb 4 4712 Jan 2
1312 2938
1312
18 Feb 6 2278 Jan 8
4312 9534
3812
9312 Jan 2 101 Jan 10
2
212
514
3 Jan 2
212 Feb 7
334
514 1214
758 Jan 28 1018 Jan 2
7314
7614 91
7314 Jan 16 83 Feb 8
8418
6412 90
6418 Jan 23 65 Jan 19
912
11
2112
1714 Jan 2 204 Feb 19
6
814
612
814 Feb 14
73* Jan 2
2412 Jan 15 31 Feb 18
1018
10% 344
1914
1014
1014
19 Jan 15 204 Feb 1
32 Feb 6 4312 Jan 7
35
35
7312
14
14 Feb 6 1918 Jan 7
14
3314
3 Feb 7
434 Jan 8
334
334 134
55
67 Feb 18 78 Jan 25
63% 84
4
5
7
4 Jan 5
6 Jan 17
Ds
10
8 Jan 4 11 Jan 29
1814
20
29
5514
3834 Feb 15 5033 Jan 2
8912
99
117
115 Feb 9 117 Jan 21
21
21
2812
2612 Jan 2 294 J811 28
2814 3412
275*
343* Jan 7 36 Jan 28
25
3418 Jan 15 4012 Feb 18
32
4614
11
23
1012 Feb 16
11
125* Jan 28
2078 Jan 15 2414 Jan 3
1118
1414 2812
814
814 20
1412 Jan 15 1612 Feb 19
34
5
612 Feb 15
117
714 Jan 8
38 Jan 9
% Jan 9
52
158
18
12
218
12
12 Feb 13
12 Feb 13
3
3
1134
312 Feb 7
518 Jan 18
1312
1312 23
133* Feb 5 1712 Jan 3
92
100
110
9212 Jan 15 9912 Feb 18 11 5978
80
10374
12812
1267s Feb 8 129 Jan 8 10414 115
104 Feb 18 107 Jan 17
85
90
107
22 Jan 15 22 Jan 15
30
13
21
1234
638 Jan 17
8 Jan 7
312
418
116%
11012 Jan 16 12318 Feb 19
8512
79
141 Jan 4 147 Feb 18 120
120
147
1658 Jan 15 2078 Feb 18
10
2212
121
6 Feb 11
6
734 Jan 4
6
1914
45
313*
2312 Jan 29 29 Jan 3
1158
107 Jan 23 10812 Jan 3
80
110
75
3
4 4 Feb 5
3
3
712
618 Jan 7
714 Jan 16
8% Feb 18 " 512
414
953
214
ess
218 Feb 20
214
3 Jan 3
65
618 Feb 7
658 21
812 Jan 10
618 Feb 20
6
6
104
714 Jan 11
N
.1
New York Stock Record-Continued-Page 4
1270
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Feb. 16
Monday
Feb. 18
Tuesday
Feb. 19
Wednesday
Feb. 20
Thursday
Feb. 21
Friday
Feb. 22
Sales
for
the
Week
STOCKS
NEW YORK STOCK
EXCHANGE
Feb. 23 1935
Rano! Since Jan. 1
On Basis of 100-share Lots
Lowest
Highest
July 1
1933 to Range for
Jan. 31 Year 1934
1935
Low Low
High
$ per share $ per sh
$ Per share $ per share $ per share $ per share $ per share $ per share Shares
Par 5 per share
4614 4614 4634 4712 4712 4734 47
4712 464 47
1,600 Elec Storage Battery
No par 45 Jan 15 4912 Jan 7 Cl 3378
12
12.
.12
53
012
28
12
12
*12
34
12 Feb 5
78 Jan 10
300 :Elk Horn Coal Corp
No par
58
1
*1
114 *1
1; Jan 10
114 *1
;Feb 4
138
1
1
50
100
6% part preferred
*78
114
45
59
59
60
6018 6018 6014 59
59
800 Endicott-Johnson Corp
50 5234 Jan 16 6014 Feb 19
6014 50
*12812
129 129
_ 120 129
Preferred
130 130
12934 130
131)
100 12534 Jan 10 130 Feb 20 112
2
2; Jan 4
*2 --118
2
2
*2
2 Feb 18
214 *2
100 Engineers Public Serv____No par
214 *2
214
1018
*16
18
1512 16
1614 1614 *1538 18
*1514 18
$5 cony preferred
No par 14; Jan 2 2012 Feb 13
400
11
1738 1738 1634 1714 01612 18
1412 Feb 7 214 Feb 13
1634 1634 1612 1912
600
$53.4 preferred
No par
12
*19
1912 1812 1812 *1734 21
No par
17 Jan 18 22; Feb 13
*1734 21
*1734 21
100
$6 preferred
5
5
5
5
518
5
5
2,100 Equitable Office Bldg
5 Jan 7
54 Feb 18
*5
518
5
5
No par
1034 1034 1112 13
9;
1134 12
3,400 Erie
100 1014 Feb 6 14 Jan 4
10; 1112 1012 1058
1314
*1312 1412 1312 14
1334 1334 1312 1312 *1212 13
500
First preferred
100 1314 Jan 30 1714 Jan 4
858
812 Feb 6 13 Jan 7
*812 11
*812 11
*812 10
Second preferred
100
*8
10
*8
10
*6912
__
80 Erie & Pittsburgh
50
6912 6912 6912 6912 *63
_ *63
50 6912 Feb 18 70 Feb 2
*1218 1238 12
638
1212 1214 1258 12 12-38 12 12-12
4,200 Eureka Vacuum Clean
5 1034 Jan 15 1258 Feb 19
*2214 2212 2112 23
3
22
2278 2178 2212 217/1 2314
15,000 Evans Products Co
5 19 Jan 14 2314 Feb 21
3
312 Feb 4
5 Jan 18
4
4
*334 44 *334 414
10 Exchange Buffet Corp___No par
*334 414 *334 414
1
*158 2
214 Jan 19
*158 2
2
2
*1; 2
20 Fairbanks Co
14 Jan 15
*158 2
25
312
Preferred
938 Jan 18
*614 812
530
100
618 Feb 18
618 7
634 778
712 712
7
718
478
*2012 21
2014 21; 2114 2234 2214 2412 23
17,100 Fairbanks Morse dk Co___No par 17 Jan 11 2412 Feb 20
2412
25
*81
82
720
Preferred
8112 8212 83
87
100 72 Jan 17 91 Feb 20
8612 91
8812 89
4
734 Feb 15
534 Jan 8
800 Federal Light & Trac
15
7;
7
7;
678 678
712 712
712 712
714
33
*5612 60
*5612 60
*5612 60
20
Preferred
*5612 60
5612 5634
No par 48 Jan 8 58 Feb 7
50
•48
60
*48
55
*48
55
Federal Min dr Smelt Co-__100 50 Jan 17 50 Jan 17
*45
60
*45
60
50
Preferred
*62
72
100 70 Jan 17 70 Jan 17
*60
72
*60
72
*60
72
*60
72
5
5
5
*412 5
400 Federal Motor Truck_No par
6 Jan 2 16 2;
4; 4;
5
5
5
412 Feb 5
1
7
Federal
412
Jan
700
Screw
Feb
13
Works____No
par
33
8
4
*34 4
414
33
4
*312
34 334
334
418
*; 1
1
1,500 Federal Water Serf, A____No par
1 Jan 2
1; Jan 7
1
118
118
118
1
1
1
1
1814
400 Federated Dept Stores_ _No par
*19
2012 2012 2012 1912 1912 19
19
*18
19 Jan 10 2058 Jan 7
1912
*31
1,700 Fidel Phen Fire Ins N Y_.__2.50 3012 Feb 6 3412 Jan 9
2014
3158 3158 3258 3134 3214 *3112 3214 *31; 32
Fifth Ave Bus Sec Corp.__/Vo par
--- -_-_ --__ -- ---- -_-_ ---- ---- --_- ---614
1934
Filene's(Wm)Sons Co___No par
*
_ 20 •
_ 20 • . 20 *
_ 20 0___ 20
1934 Jan 10 2312 Jan 8
*lob'
_ *ii55 s_ .i.65 s_ ii5 109 *i20 615% Preferred
100 107 Jan 23 11034 Jan 15 x85
4,100 Firestone Tire & Rubber
1318
1614 -1-6-38 1614 17
1634 -1-74 1678 17
8
1678 16710 15; Jan 30 1818 Jan 7
2,000
6718
9314 9312 9312 9312 9334 9412 9412 9458 94
9412
Preferred series A
100 9178 Feb 6 9458 Feb 20
524 5134 5214
3,100 First National Stores____No par 4712 Feb 2 56 Jan 7 6 47;
5112 52
5112 5212 5112 5238 51
200 Florsheim Shoe class A __No par 19 Feb 21
1252
•20
19
19
2234 Jan 4
2218 *20
2314 •20
224 20
20
312 312
312 3;
2
312 3;
318
358
2,200 :Follansbee Bros
358 334
No par
638 Jan 7
2; Jan 23
*2414 2434 2434 25
2518 254 2514 2512 25
1,200 Food Machinery Corp
7 104
No par 2014 Jan 15 2512 Feb 20'
254
2,700 Foster-Wheeler
812
1414 1412 14
15
15
1512 1434 15
*1414 15
No par
13 Feb 6 1712 Jan 2
Preferred
4414
6834 69
70
70
30
No par 6834 Feb 16 77 Jan 2
*70
72
70
*6518 7018 *65
1.100 Foundation Co
614
758 Feb 5 1012 Jan 7
812 878 *734 812 *758 8
No par
838 914
*712 814
1658
24
2414 24
3,300 Fourth Nat Invest w w
25
23
2412 22; 234 2213 2234
1
2258 Feb 20 25 Jan 8
11
1118 1034 11
5,600 Fox Film class A
9 Feb 14 1312 Jan 2
814
11
No par
104 1078
9; 1014 10
20
*3614 39
*38
90 Fkln Simon & Co Inc 7% pf__100 354 Jan 2 45 Jan 11
38
38
*38
3058 38
38
3312
2012
22
22
22
234 23
23; 22
2318 2214 23
6,100 Freeport Texas Co
10 2038 Feb 6 26 Jan 2
Preferred
_*116; ___ 011658
.*11658
_ *11658
100 117 Feb 8 12018 Jan 22 11312
20 Fuller (0 A) prior pref___No par
1212
*17
18
97 *1718 -20
20 -2212
-- *1712 -2314
-- *17
0)1658___23
- ,4
1634 Jan 15 24 Jan 25
912 912 6912 1.04 *229 1014
5
60
$6 2d pref
No par
812 Jan 7 12 Jan 24
912 9%
912 91 2
178 *111
178
112
1; 158 •138 178 *158
700 Gabriel Co (The) ci A
1 18
No par
1; Feb 16
218 Jan 3
112
8
8
8
*8
9
*8
8; *8
838
8
70 Gamewell Co (The)
No par
8 Feb 8
912 Jan 10
8
758
3,300 Gen Amer Investors
558
No par
7; Jan 4
714 7;
612 74
612 Jan 31
*74 714
714
634 078
*85_- _ *85
00
*85
90
*85
90
*85
90
Preferred
6412
No par 81; Jan 10 8712 Feb 15
3618 3612
3618 3712 3634 37; 36; 37
3.300 Gen Amer Trans Corp
253
36
5 354 Jan 15 384 Jan 5
3618
15; 1578 15; 1634
1618 16; 16
3,300 General Asphalt
12
1614 *1534 16
10 1518 Feb 6 1878 Jan 9
*8; 812
838 9
Stock
834 914
3,500 General Baking
612
834 834
812 834
5
734 Jan 15
94 Feb 19
*123 124 •123 124
123 123
124 124
123 123
70
$8 preferred
No par 115 Jan 10 124 Feb 15 100
2,800 General Bronze
658 634
613 658 Exchange
5
612 634
634 7
634 6;
5
6 Jan 2
718 Jan 8
*234 4
*278 3
214
*278 3
100 General Cable
212 Feb 7
*234 3
No par
314 Jan 3
234 234
*434 612 *434 714 *5
100
Class A
No par
5 Jan 29
7 Jan 3
414
714 *534 714
614 614 Closed2512 2512 2614 2614 26
14
*24
27
500
1% cum preferred
26
2534 26
100 24 Feb 8 2712 Jan 7
5612 57
1,400 General Cigar Inc
56; 5738 5758 5778 57
5738 57; 5738 WashingNo par 5012 Feb 6 6314 Jan 8
244
*130 13312 *130 13312 012814 13312 *129 13312 *129 1334
7% preferred
100 12712 Jan 2 13412 Jan 4
97
23; 24
ton's
23; 254 2414 2518 24
2458 2312 24;
145.600 General Electric
No par 2012 Jan 15 2514 Feb 18 6 10
1118 1118 11332 1118 11332 1118 11332 11332 11332 11332
14,700
Special
11
10 11 Jan 2 1118 Jan 3
3434 35
3514 Birthday
28
34; 3512 35
3512 354 3512 35
9.100 General Foods
No par 32; Jan 4 3512 Feb 18
38
38
12
12
38
12
38
12
38
%
*12
1412 *12
*12
15
13
12
12
*11
13
*1314 16
*1314 16
*1314 16
*1234 16
*1234 16
*14
18
*1412 18
*1412 18
*1412 18
*14
18
*58
6138 .58
6138 *58
6138 *58
6138 *58
6138
64
6312 6312 6412 6412 65
64
*6278 63
63
.117 118
11612 11612 117 117
11718 11718 *117 118
31
3138 30; 331t 3218 33
3118 3214 3078 3114
112 11212 11214 11212 112 11214 112 112; 112 112
12
*9
12
08
1112 1112 *9
1212 *9
1212
.34 33,
34 34 *34
34 314
3558 *34 339
22; 22
2278 23
24
23
23
22
2414 23
98
96; 96; 9612 9612 96; 96; 98
*9818 9812
*138
2
2
238
2
214 *1; 178 *158 1;
26
26
27
274 2514 2612 *25
*2412 25
27
92
co()
02
*88
92
*87
*90 10112 *90 10112
1; 138 •14 112
114
118 *1's
/08 *118
114
*1634 1734 1734 18; *1714 18
*1718 1734 16; 16;
20
20
1934 2014 1978 2014 19; 1938 1938 1938
1912 1834 19
1914 1912 19
1978 1912 19; 19
2512 2512 26
*2234 25
2112 2234
26
*2278 26
1414
14
14
1378 1412 1414 1412 14
14
1414
7412 74; 7412 7412 7412
*74; 74; 74
74; 74
278 2;
3
3
3
314
2; 3
234 278
25
*20
25
*2112 23
*2112 23
02112 2112 *21
2612 2858 2614 274 264 2738 261 274 2634 2778
10512 106
106 107
10778 103
10612 10612 10534 106
4
414
4
418
414 414
428 458
412 458
1714 1712 17
1718 1758 17
17; 17; 18
1712
*115 11612 *115 11612 *115 1161 •1)5 11612 *115 11612
10
1014 10
1014 1034 10
11
1012 11
1014
4912 49; 49; 53; 5212 53
5134 5218 5134 51;
22
22;
22; 2234 2212 2458 2258 24
2218 23
*85
86
*86
88
88
88
8534 86
86
86
412 412
434 434
412 412
412 4;
4; 412
*41
44
*41
44
49
*41
44
*41
45
*41
2; 2;
212 212
258
234
258 2;
212 258
6; 634
634 6;
613 672
64 612
612 812
3,2 3;
312 3,2 *338 334
*3
; 334
318 3;
*20
21
20; 2134 •2012 2114 20
2012 *17
2114
23
*2018 24
23
*2018 24
*2014 24
*2018 24
32
•31
32
32
3212 32
32
*3134 3212 32
1058 1068 1012 11
1034 11
1034 10; 1012 1034
1312 1312 134 17
1412 15; 1338 1412 1314 1414
2912 30; 2912 31
2934 3078 2912 3018 30
3114
*125 12512 125 12512 125 125
12512 126
125 125
*36
50
•36
50
112
178
112 178
19
21
*1712 2012
*458 6
*5
6
•12
13
13
15
*1712 23
*1712 23
*40
68
*40
68
*2458 2514 2514 2514
*3018 3112 *3018 3112
478
478
4; 5;
*5812 5978 5812 6012
6
6
612 634
•514 94
94 914
•67
70
*67
70
105 105
105 105
194 19; 19
20
*102 -- .102 _ __
612 -6-12
6,8 -634
85
8312 8312 *83
*38
34
"8
54
234 234 *234 4
*38
43
*37
134 214 *134
21
2112 *17
*412 578 *412
*1112 15
*11
*18
21
*18
*40
68
*40
2518 2514 *2518
30(8 3018 3112
518 538
478
6014 604 5912
7
7
*6
*7
93s *7
*67
70
*67
105 105 *105
19
1958 19
102 102 *102
612 6,8
638
*83
8778 83
"8
39
"8
*234 4
*234
For footnotes see page 1266.
P'
50
2
2114
6
15
21
68
26
3112
54
60
714
9;
70
*37
50
2
134
21
23
*412 6
15
*11
*1712 23
*40
68
*2518 26
*3018 3112
5
5
60
6014
*618 678
*7
938
*67
70
105 105
19
1834 19;
_
*102
_ _
-67
8 .612 179
8314 •83
8312
34
"8
34
4
*234 4
$ per share
34
52
178
39
1
334
45
63
120
128
2
834
1018 2312
2412
11
13
254
5
1038
938 24;
14; 2814
9
23
50
68
7
14;
9
2714
3
1012
2;
1
334 1212
7
1834
30
7712
1114
4
344 62
52
107
62
98
278
8;
2
5; ,
1
4
20
31
2334 3512 t
11
7
t
23
30
87
106
134 25,4
71
9214
53
6914
15
25
2
17;
1012 21
;
812 22
55
80
614
1712
1714
2712
814 1712
63
20
2112 5038
11312 16018
14
33,2
19;
5
14
458
8
20
558 1158
87
73
4358
30
2312
12
612 14;
100
10812 '
5
1018
814
214
414 12
1412 33
27
5934
12712
97
lips 2514
1234
11
28
39;
es
184
;Jan 14
;
1338 Jan 18
64 19
514
14 Feb 5
64
11
21
712
13
22
16 Jan 24
61; Feb 5 ,4 51
50
6218
51
6412
65 Feb 20
51
118
11818 Feb 14 10012 103
344 Jan 3 32 2238
24; 42
89; 109
113 Jan 28
84
84
13 Jan 10
834 21
338 Jan 2
314
34
6;
1012
2414 Feb 19
1012 2512
73; 96
98 Feb 20
6114
2; Jan 3
158
2
558
30 Jan 7
2312
23; 4534
91 Jan 30
80
90
10112
14 Jan 10
1
1
358
10
1978 Jan 10
10
2938
2014 Jan 3
812
1018 2338
1978 Jan 2
714
10
20
1738
17; 481 2
32 Jan 22
1518 Jan 10 6 712
812 1478
72
47
4512
7578 Jan 10
24
258
6;
378 Jan 4
1614 30
2714 Jan 5
1312
12
2778 Feb 21.
1538 28;
10718
103 Feb 21
83
8058
3;
912
434 Jan 25
358
23
16
18 Jan • 7
1578
9612
Ms 120
116 Jan 17
13
1178 Jan 7
8
8
2612
5412 Jan 8
3512 62;
2678 Jan 7
1812
1812 41;
92 Jan 10 17 6318
8658
64
512 Jan 3
3;
378 114
00 Jan 3
3812
3812 7112
314 Jan 3
112
112
412
1338
74 Jan 7
4
4
5 Jan 7
34
4
834
2934 Jan 3
40
20
23
23 Jan 10
2078
21
31,8
28
4058
3514 Jan 3
25
124 Jan 7
734
812 15,8
17; Jan 7
1112
1214 3212
3114 Feb 21
25
25
3518
11813
12612 Jan 16
99
102
38 Jan 2
8,000 Gent Gas dr Elea A
No par
Cony prof series A_No par
12 Feb 20
100
$7 pref class A
No par 13 Feb 7
No par
1514 Jan 15
$8 pref class A
Gen Ital Edison Elea Corp
5712 Jan 2
1,700 General Mills
No par 5978 Feb 6
300
Preferred
100 116 Jan 3
109,000 General Motors Corp
10 30 Feb 6
2,000
$5 preferred
No par 210712 Jan 4
100 Gen Outdoor Adv A
No par
1118 Feb 7
200
Common
No par
314 Jan 9
3,240 General Printing Ink
Vo par
1758 Feb 5
150
$6 preferred
No par 9312 Jan 22
1,400 Gen Public Service
No par
168 Jan 29
900 Gen Railway Signal
No par 2114 Feb 8
Preferred
100 80 Jan 2
1,300 Gen Realty & Utilities
1
114 Jan 8
800
$6 preferred
16 Jan 5
No par
2,400 General Refractories
No par
1634 Jan 30
8,300
Voting trust certlfs
No par
1618 Jan 15
150 Gen Steel Castings pref No par 21 12 Feb 21
9,700 Gillette Safety Rasor
No par
1318 Feb 5
2,100
Cony preferred
No par 7012 Jan 4
2,400 Gimbel Brothers
No par
234 Fob 6
Preferred
100
100 2318 Jan 12
11,300 Glidden Co (The)
No par 23; Feb 7
140
Prior preferred
100 10478 Jan 2
5,400 Gobel (Adolf)
5
358 Jan 19
8,200 Gold Dust Corp v t a
No par
15; Feb 7
$6 cony preferred
No par 11478 Jan 19
5.100 Goodrich Co(BF)
No par
912 Feb 6
2,000
Preferred
100 45 Feb 7
17,200 Goodyear Tire dk Rubb___No par 21 Feb 6
let preferred
600
No par 8134 Jan 2
1.600 Gotham Silk Hose
414 Feb 6
No par
Preferred
100 x44 Jan 10
3.200 Graham-Paige Motors
1
24 Feb 7
2,800 Granby Cons M Sfn & Pr _ -__100
614 Feb 20
1,700 Grand Union Co tr etts
1
318 Feb 18
600
Cony pref series
No par 194 Feb 14
100 Granite City Steel
No par 23 Jan 10
600 Grant (W T)
No par 30 Feb 1
2,500 GE Nor Iron Ore Prop
1012 Jan 17
No par
24,900 Great Northern pref
100 124 Feb 6
21,700 Great Western Sugar___No par 26; Jan 15
60
Preferred
100 119 Jan 2
Greene Cantinas Copper
100 34 Feb 6 35 Feb 6
1 Feb 1
214 Feb 19
4,400 Guantanamo Sugar
No par
430
100 19 Feb 16 23 Feb 21
Preferred
6 Jan 6
Gulf Mobile & Northern ____100
438 Jan 30
300
Preferred
100 11 Feb 7 15 Feb 18
1912 Feb 6 24 Jan 8
Gulf States Steel
No par
67 Jan 11
Preferred
100 62 Feb 11
500 Hackensack Water
25 2114 Jan 15 2514 Feb 18
20
7% preferred class A
25 30 Jan 18 32 Jan 15
5,600 Hahn Dept Stores
412 Feb 6
64 Jan 7
No par
1,800
Preferred
100 55 Jan 15 6358 Jan 7
400 Hall Printing
712 Jan 2
10
539 Feb 13
100 Hamilton Watch Co
94 Feb 18
912 Jan 8
No par
Preferred
100 63 Jan 4 75 Jan 23
100 Hanna (M A) Co $7 pf__No par 101 Jan 2 105 Jan 25
2,500 Ilarbison-Walk Refrac.--No par 164 Jan 17 20 Feb 18
20
Preferred
100 9934 Jan 7 102 Feb 19
1,000 Hat Corp of America el A____1
512 Feb 6
7 Jan 7
40
100 81 Feb 6 8614 Jan 2
834% preferred
Havana Electric Ry Co __No par
38 Jan 2
12 Jan 8
10
Preferred
100
2; Jan 26
234 Jan 26
18
4,1
74
4
11 12
1514
2514
1978
26
312
18
314
358
20
77
12
82
112
1412
38
23
59
18
; 312
714 31
1614
5
12
3534
1514 42
47
83
2012 2614
27
31
858
312
2514 6312
34
924
352 117s
25
63
84
10134
13
3424
100
87
112
74
1934 92
34
112
812
3
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Feb. 16
Monday
Feb. 18
1271
New York Stock Record-Continued-Page 5
Volume 140
Tuesday
Feb. 19
Wednesday
Feb. 20
Thursday
Feb. 21
Friday
Feb. 22
Sales
for
the
Week
STOCKS
NEW YORK STOCK
EXCHANGE
Range Since Jan. 1
On Basis of 100-share Lots
LOWS,
NOUN
July 1
1933 to Range for
Jan.31 Year 1934
1935
Low Low
High
$ DV share 2 perch $ per share
Shares
Par i Per share
3/
1
4 Jan 2 Ls 11
/
4
234 Feb 6
2
1,100 Hayes Body Corp
11
/
4
6/
1
4
65
74
1,000 Hazel-Atlas Glass Co
25 85 Jan 2 94 Feb 15
9673
94
101
145
25 127 Jan 5 130 Jan 9
Helme (G W)
1231
: 153
1
4 Jan 10 14212 Jan 10 120
Preferred
100 142/
No par 11 Jan 8 16 Feb20
514
3,800 Hercules Motors
5/
1
4 1213
1.700 Hercules Powder
NO Dar 7314 Feb 4 7758 Jan 8
40
59
8153
100 122 Feb 9 125 Jan 2 1041s 111
125/
1
4
30
$7 cum preferred
1
4 Jan 19
44
300 Hershey Chocolate
No par
7312 Jan 2 81/
48/
1
4 7334
800
Cony preferred
No par 104 Jan 25 107 Jan 9
80
83
10513
4
738 Feb 6
914 Jan 7
2,000 Holland Furnace
No par
434 1014
5/
1
4
400 Hollander & Sons(A)
918 Feb 15 11 Jan 2
534 13
5
310 x43013
100 338 Feb 5 3911
/
4 Jan 7 200
400 Homestake Mining
1
4 Jan 25 i 7
11
34
2,000 Houdaille-Hershey 01 A ..No par 31 Jan 12 36/
212
918 Feb 19
30,300
Class B
No par
714 Jan 15
23,
VII
43
.500 Household Finance part pt___50 49 Jan 2 5.5 Feb 21
43
54
12/
1
4
12/
1
4 2934
1,600 Houston 011 of Tex tem at:a-100 14 Feb 6 1734 Jan 2
338 Jan 4
1,800
21
:
Voting trust Ms new
25
258 Feb 16
213
5/
1
4
5 43 Jan 15 5218 Jan 3
20
3512 5714
8,500 Howe Sound v 8 0
4
1
4 Jan 21
4
4 Feb 21
5/
121.4
1,600 Hudson & Manhattan
100
9
2614
Preferred
9
100
934 Jan 18 1313 Jan 21
100
61* 24/
1
4
22,700 Hudson Motor Car
No par
8/
1
4 Feb 6 1234 Jan 7 71 6
734
17
10
212 Feb 14
378 Jan 7
10,600 Hupp Motor Car Corp
I7s
13%
12,700 Illinois Central
101
12 Feb 7 1714 Jan 7
1353 3874
1912
6% pref zanies A
21
50
100 181
/
4 Feb 8 2334 Jan 4
4618
48/
1
4 66
10
Leases lime
100 52 Feb 8 5712 Jan 10
73
RR Sec °Us series A-1001..
712 24/
858 Jan 31 10 Jan 4
1
4
238
238
434
212 Jan 2
300 Indian Refining
10
214 Feb 6
1
4
1938 32/
No par
16,700 Industrial Rayon
3014 Jan 11 33 Jan 7 36 1314
45
4913 7334
2,100 Ingersoll Rand
No par 65 Jan 28 7018 Feb20
105
116/
1
4
Preferred
100 109 Jan 7 109 Jan 7 105
26
3414 56
No par 50/
1
4 Jan 16 5514 Jan 2
5,300 Inland Steel
2/
1
4
600 Inspiration Cons Copper
234 Feb 7
378 Jan 8
2/
1
4
20
673
2
433
213
1
4/
1
4 Jan 4
800 Insuranshares CU: Inc
48 Feb 14
35, 1713
512
9,700 Unterboro RapidTran Vi, __100 1234 Jan 15 1618 Feb 19
5
Certificates
No par
612 1212
7
2
4 Jan 14
438 Jan 25
2
Internet Rys of Cent Amer_100
212
638
5 Jan 3
212
Certificates
No par
338 Feb 16
10
658
758 2224
Preferred
1534 Jan 2 1812 Jan 10
100
30
2
3 Jan 7
218
No par
238 Jan 15
572
700 Intercont'l Rubber
4
4
1114
No par
7 Jan 7
1,700 Enterlake Iron
512 Feb 5
618
11
:
2
5 Jan 2
2,000 Internet Agricul
No ear
4 Jan 15
15
1
4 Jan 25
10
3714
1,400
Prior preferred
100 33/
1
4 Jan 15 42/
164
1,200 Int Business Machines-No par 14913 Jan 15 16112 Feb 18 12534 131
4
/
1
4
12,.
1
5
Feb 5
6/
1
4 Jan 8
4
*51s 514
4,100 Internet Carriers Ltd__
514 614
518 512 *51s 512
518 518
1833
1838 874
2828 2838 28
2912 2814 2912 2778 2812 28
28
3,300 International Cement.....-No par 2614 Feb 5 33 Jan 7
2314
40/
1
4 4114 4012 4338 4138 4248 3914 4138 3914 4018
1
4 Jan 15 4378 Jan 2
23/
No par 37/
1
4 46/
1
4
23,800 Internal Harvester
137
110
8 *13812 140 *13812 140
13878 13878 *13813 13938 *13812 139,
100
Preferred
100 135 Jan 2 140 Feb 9 110
2/
1
4
2/
214 214
214 21,
2 Feb 7
278 Jan 9
1
4
214 238
218 214 *2
214
2.100 Int Hydro-El Sys cl A
25
9/
1
4
6
2
2
6258 234
234 234
234 278
2,300 Int Mercantile Marine.-No par
21 Jan 15
278 318
278 278
38 Feb20
2318 2338 2278 2412 2312 2438 2338 2378 2338 24
21
36,800 Int Nickel of Canada__--No Dar 2214 Jan 15 2412 Feb 18 Si 1453
2914
•125 12634 *125 12634 12634 12634 *125 12812 *12512 12812
11534 130
100
Preferred
100 125 Feb 8 12654 Feb 19 101
8/
1
4
10
25
Internet Paper 7% pref
100
---- ---- ---- ---- ---- ---- ---- _-__ ____ ____
-6/
1
4
2
218
214 214
214 238
3 Jan 8
2
2
1,300 Inter Pap & Pow el A.--No par
2 Feb 16
75
No par
/
1
4
1
•1
112 *I
112
78 Feb 9
138 Jan 7
1/4
*7s 112
1
1
300
Class B
31/4
*78
1
*I
11
/
4
/
1
4 1
/
1
4
58
2/
1
4
58 Feb 21
11
/
4 Jan 19
1,900
Class C
No par
%
78
/
1
4
34
9
9
858 9/
1
4
678
813 24/
1
4
9
9/
1
4
7/
1
4 85s
4,600
Preferred
100
7/
1
4 Feb20 12 Jan 7
re 814
Stock
9
25/
1
4
23
2314 2314 2312 *2284 2384 2314 2312 *2314 2414
9
900 lot Printing Ink Corp--No par 2112 Jan 15 23/
1
4 Jan 3
65
*9978 100
9978 9978 9978 997 Exchange
66
100
*100 10014 100 100
70
Preferred
100 9812 Jan 2 10038 Feb 15
2978 30
20
21
82
*30
30/
1
4 3014 3014 *30
No par 29 Jan 21
3118 Jan 4
30/
1
4 *30
31
300 International Salt
*44
4478 4412 45
441
/
4 4438 441
38
38
5084
/
4 4412 4414 4458 ClosedNo par 44 Jan 14 4514 Jan 10
2,500 International Shoe
2214 2212 2212 23
19
23
23
*21
22
100 211
/
4 Jan 31 28 Jan 4
19
4534
*21
22
600 International Silver
*7018 72 .7018 72
7% preferred
40
59
84/
1
4
701,s 7018 *67
72
10
100 70 Jan 15 75 Jan 3
*07
71
Washing97 Jan 10
812 9%
838 834
7/
1
4
23,300 inter Telep & Teleg
No par8% Feb20
8,
4 914
838 8%
713 1734
812 828
234 . 3/
1
4 1638
1158 1158 11/
1
4 12
111
/
4 1134 *1038 111
400 1nterstafe Dept Stores-No par 10 Feb 5 1234 Jan 7
/
4
ton's
*IA 1214
21/
1
4 811
/
4
*72
84
100 75 Jan 29 8478 Jan 7
1614
*72
84
*72
84
Preferred
*72
84
*72
84
*612 678
100 [Mecum Corp
6% Feb 18
434
5/
1
4 10
678 6/
1
4 *612 7
*612 7
Birthday
No par
614 Jan 10
*612 7
20
3
4
24
/
1
4
36
3
Feb
7
36
Jan
8
*3214 34
*3212 34
34
bland
Creek
Coal
1
31
3418 *34'2 35
600
34
3412 •
90
110
85
80
Preferred
l 110 Jan 22 115 Feb 19
*11312_ *114
_ 115 115
115 115 *114 115
26
33
No par 53/
1
4 Feb 6 57 Jan 7
*56 -561
4 56 -57
5678 567g 56
500 Jewel Tea Inc
57/
1
4
56
5612 5612
52
53
5114 55
No pa, 4834 Jan 29 5738 Jan 7
3614
39
66/
1
4
521
/
4 5334 5112 5213 5114 52
10,500 Johns-Manville
101
121
87
Preferred
100 121 Feb20 125 Jan 4
12134 122 *121 1211
/
4 *121 12178 121 121
121 121
160
135
140
*130 150 *130 150
50 Joliet & Chic RR Co 7% 47td_100 130 Feb 19 130 Feb 19 115
130 130 *130 175 *130 175
45
45
77
63
630 Jones & Laugh Steel pref. .100 5612 Jan 2 73 Jan 23
63
62
6238 6214 63,2
6412 6288 6314 61
97/
1
4 11412
977s
Kansas City P & L pf ser BNo par
*11558_ ..,.._ •11558 _ ___ *115/
1
4 _ ...,_ *11558
- *11558 _ _
1
4 --712 4.612 -7-12
653
653 1934
7/
8/
1
4 Jan 7
600 Kansas City Southern
7 Jan 15
-8
*712 -8
100
7
*612 -8
1012
1012 *9
13/
1
4 Jan 7
1014
101
_100
978 Feb 11
/
4 2713
1014 1014 1112 12
*9
500
Preferred
101
/
4 101
5/
1
4
6
712 Feb 6
8/
1
4 Feb 18
1033
814 812
800 Kaufmann Dept Stores $12-50
8/
1
4 878
858 88,
878 8% *834 9
12
1378 1811
1
17
17
1534 Jan 17 19 Feb 19
17
5,200 Kayser (J) & Co
1838 1814 19
*1734 1814 18
18
15
20
3713
Keith-Albee-Orpheum pref.100
*33
40
*33
40
*33
40
*33
40
*33
40
1
41
I
1
114 Jan 2
238 Jan 17
3.600 :Kelly-Springfield Tire
134
IN
134
11
/
4
11
/
4 11
/
4
Pa
1313
112 15*
5
20
5
No pa
11 12 12
1178 1212 *11
1,109
6% preferred
7/
1
4 Jan 2 1333 Jan 17
1238 *11
1214 11
11
11
2
/
1
4
3
10
f
6
Jan
25
Jan
*5
9
Kelsey
Hayes
Wheel
cony
AA_
_
713
*51
/
4 8
*518 9
*6
838 *6
9
11
/
4
4/
1
4 Jan 2
233
713
*4
5
1
334 Feb 6
*4
'5
Class B
*314 412 *3/
*314 5_
1
4 5
111
/
4 211
/
4
1558 Feb 7 1814 Jan 9'
6 678
1714 1712 17
No par
1818 1728 1818 17
-1-5:5150 Kelvtnator Corp
1734 1714 1738
6518 94
55
*92
95
•92
95
95
95
120 Kendall Co pt pi ser A-No par 9034 Jan 8 95 Jan 29
95
95
*9312 95
16
1558
23/
1
4
1612 17
1638 1712 1624 1714 1622 17
No pa, 16 Feb 5 1838 Jan 7
28,900 Kennecott Copper
1638 1678
9/
1
4
97a
1814
*1014 1058
No par
1018 Jan 15 11 Jan 8
8 *1014 1114 *1014 1114 *1012 1114
100 Kimberly-Clark
1038 10,
*4
434
3
714
414 414 *4
No par
4 Feb 6
538 Jan 3
214
412 •4
5
*4
5
100 Kinney Co
13/
1
4 41
12
*32
33
31
32
30
No par
2958 Feb20 38 Jan 23
30
2958 30
Preferred
*29
2958
220
1338 2234
2138 2112 2114 22
10/
1
4
2158 22
2138 2134 21
10 2018 Jan 15 22 Feb 18
20,900 Kresge (S8) Co.
2112
9914 101 zi14
•107 109 *107 109 *107 109 *107 109
10
7% preferred .._.. ......-.100 10613 Jan 16 112 Jan 4
109 109
7/
1
4
1
4
2/
2
*358 41
*3/
1
4 5
Kresge Dept Stores
No par
3/
1
4 Jan 15
*358 5
4 Jan 17
*3/
1
4 412 *3/
1
4 412
19
55
*55
70
12
*55
65
*55
65
Preferred
5S
55
*55
56
100 42 Jan 11 55 Feb20
50
36
*63
65
2734
6238 6212 *6314 65
65/
1
4
6138 6314 *5938 6314
No par 60 Jan 29 6912 Jan 7
500 Keene (S H)& Co
25
251
/
4 2434 2612 2584 2638 251g 2578 25
19
2314 3353
No par
2358 Jan 29 2834 Jan 2
25
8,200 Kroger Groc & Bat
•1644 18
20
6313
*1614 18
20
1614 1614 •1538 1712 *1553 18
10 Laclede Gas Lt Co St Louis _100 16 Feb 5 21 Jan 12
*2618 29
*2618 29
60
27
27
28
28
28
28
preferred
•261, 28
100 28 Jan 4 31 Jan 24
40
5
2214 31/
1
4
2712 2734 28
2814 27/
1938
1
4 28
28
2634 Feb 6 2812 Jan 8
2814 2818 2814
No par
2,300 Lambert Co (The)
*7
778 .7
6
7/
1
4 *718 778 *7
41
/
4
9 Jan 3
778 *7
No pa,
6/
1
4 Feb 13
14/
1
4
778
Lane Bryant
1414
7
121
/
4 12
1214 12
Jan
7
518
•11'8 12
12
b
1114
Jan
29
12
/
1
4
12
1212 12
Rubber
&
Tire
1,800 Lee
15
.1412 15
1514 *14,
8 1514 *1412 15
9
11
20
*1484 1514
200 Lehigh Portland Cement
50 14 Feb 6 1738 Jan 7
7353 90
.98
99
73
9712 9712 *9712 99
98
99
98
98
130
7% preferred
100 8934 Jan 3 99 Feb20
938 1012
9
9
912 211
912 1018
814
8,2 812 *812 854
/
4
2,300 Lehigh Valley RR
50
813 Feb 6 1112 Jan 7
214
218 218
214
2/
1
4 Ds
2
21:
5
218 218
1
4 Jan 4
218 214
2.100 Lehigh Valley Coal
No pa
218 Feb 8
2/
1054 11
11
5
16/
1
4
4
1054 1078 1018 1012 10
1038
1114
1212 Jan 23
2,100
Preferred
50 10 Jan 21
3
8
*7114 7218 723s 74,2 73 4 74 4 7212 73
7214 7214
5834
6414 78
2,500 Lehman Corp (The)
No par 6913 Jan 17 7434 Feb 19
1612 17
*1612 17
16/
1
4 17
1612 1612 *1618 1638
1112
1112 23/
1
4
1.000 Lehn & Fink Prod Co
5 1512 Jan 24 1714 Jan 25
2858 2918 2812 3012 29
2978 2814 29
2814 29
21
1
4 Jan 2
2213 4373
10,800 Libby Owens Ford Glass- No par 27 Feb 6 32/
*2112 2218 2218 2212 2284 23
2286 22,
8 2214 2288
1553
1714 24
1,300 Life Savers Corp
5 2112 Jan 17 23 Jan 3
*103 10412 105 105 *103 105 *103 105 *104 106
110
200 Liggett & Myers Tobacco.--25 102 Jan 15 10712 Jan 4
711
: 73
10434 10434 105 10584 105 10584 10412 105
105,2 10612
7413 11114
5,700
73/
1
4
Series B
25 102 Jan 15 10912 Jan 4
156 156 *15413 160 *1541
*15413 160 *15478 160
129
1521
:
100
/
4 ---Preferred
100 15113 Jan 30 156 Feb 19 123
*18
1812 18/
1
4 1858 18
181
/
4 18
1814 1812 1812
16
261
:
1414
1,100 Lily Tulip Cup Corp__No par 17 Feb 5 1914 Jan 3
20
1912 2034 *19
*19
211
1814 1812 1712 1778
800 Lima Loeomot Works....-No par 1712 Feb 21
1514
1514 36/
2412 Jan 5
1
4
2112 22
*2114 2218 *21
2112 51912 22
*21
2218
1,000 Link Belt Co
111
/
4
111
No par 1714 Jan 16 22 Feb 16
/
4 19/
1
4
2912 29
2818 2818 2712 30
29
29
28
28
2,400 Liquid Carbonic
161
/
4 , 1613 3533
No par 2.514 Feb 6 3074 Jan 8
8
3678 34,
4 357
3318 3478 33 4 36
3414 3458 34
2078 37
37,200 Loew's Incorporated
1912
No par 3114 Feb 7 36% Feb 18
104 104 *103 10414 104% 1041 *10378 10414 104 1041
/
4
400
72
105
Preferred
66
No par 102 Feb 1 10458 Jan 8
114
114
111
112
138
114
114
11
/
4
3
*114
11
/
4
158
114
1,700 Lott Incorporated
11
/
4 Jan 24
134 Jan 2
No par
21,
214
2
2
•218
214
nig
218 218 *2
400 Long Bell Lumber A
No par
212 Feb 14
1
1
3
158 Jan 21
3514 3614 3578 36
3518 3518 3518 3578 3578 36
3,100 Loose-Wiles Biscuit
33
/
1
4
x4434
33/
1
4
25 3413 Jan 28 3614 Feb20
*127
__
12713 12812
___ *125
_ •128
30
7% 1st preferred
100 126 Jan 30 12812 Feb 21 116
11934 12813
; 20
,
8 -20
__,
4 2014 20-7; 2014 2084
*12519/
1
4 2038 1978 107
12,300 Lorillard (P) Co
10 19 Jan 15 211
1434
1534 221
/
4 Jan 3
/
4
•131
132
*131
132
130
131
131 132
130 130
180
7% preferred
100 130 Feb 18 135/
98/
1
4 102 z130
1
4 Jan 25
114
138 *114
11
/
4 *114
128
33
*Ds
11
/
4 *114
112
700 Louisiana 011
No par
1 Jan 4
1/
1
4 Jan 7
34
34 I
11
.1012 12
1038 10% 1034 1238 11
*1038 12
510
141
Preferred
100 10 Feb 6
6 I
714 23/
Jan 8
1
4
12,
8 1258 13
1314 1234 13
1214 1234
1,100 Louisville Gas & El A-No par
*1258 13
1212 Jan 2 1418 Jan 10
21
12 I 12
42
44
4312 4414 43
4312 43
.4112 42
4312
1.300 Louisville & NashvIlle
100 39 Feb 6 4712 Jan 7
34/
1
4 I 3734 6212
1
1612
1714
1612
17
1712
16
1612
15
4
2,700 Ludlum Steel
1612
1584
7/
1
4 I
814 1913
I
1512 Jan 15 1814 Jan 8
10134 10134 *10134 104
200
*101 10312 103 103 *10112 104
Cony preferred
No par 90/
1
4 Jan 4 103 Feb 18
50 I 60
97
45
45
44
4514 46
45
45
45
*4358 45
1,200 MacAndrews & Forbes
10 40 Jan 24 46 Feb 19
21
30
42/
1
4
116 116 *114
____ *11418 ---- *11418 --- 10
*114 116
6% preferred
100 113 Feb 8 11618 Feb 5
11114
8738 1 95
____ ____ ---- ---- ---- ---- ---- --- ---- ---Mackay Coe preferred
__
2018
2018 33
100-
$ per share $ per share $ per share $ per share $ per share $ per share
278 27
234 234
3% 314
2% 27*
278 3
93
93% 9334 94
•3212 9412 9312 9312 9312 94
*128 132 *128 13518 *125 13518 *125 13518 *125 13518
*145 150 *145 150 *14512 150 *14512 150 *14512 150
1414 1512 *14
15
*15
1578
1312 1414
1478 16
7512 7512 75
76
7512 76
*75
7612 7512 7634
12412 12412 125 125 *12458 12434
124 124 *12318 125
791
/
4 80
*78
8114 *78
80
78
78
*7812 797
10514 10514
1044 1047s 105 10512 10514 10514 *105 106
812
814 834
778 8
Vs 7/
1
4
734 734
8
912 912 *918 912
*914 934
914 9/
1
4 *918 912
360 360
375 375 *374 399 *365 38412 379 379
34
3414 *3314 3334 3312 3312
*3212 3412 3434 35
814 8/
1
4
8
9
834 98
8'2 87*
812 83
*5214 54
5258 5258 54
55
52% 53
*517 54
*1414 1512 147 1512 1518 1514 1518 1538 1412 15
2/
1
4 2/
1
4
234 3
278 3
278 278
28 3
4738 4738 4612 5014 4778 497
4712 4814 4714 4714
4
418
*41
/
4 41
/
4
414 412
412 412 *4% 48
1,912 1178 *912 10
*9/
1
4 1212 *934 12
10
10
97g 10
1134 10
934 1214 11
1078 1014 1058
212 238
212 284
212 278
212 258
212 258
1314 1338
13
16
13
1358 1258 13
1338 15
*1818 21
*18
21
*1818 2012 *17
21
*1778 20
*5134 53
*5134 53
53
53
*5134 53
*5134 53
91
*8
912 •8
*8
912
912 *8
*8
91
*218 212 *214
23
238 238 *238 234 *238 234
3138 3178 3112 3278 3214 3278 32
3234 32
3258
68
68
6834 70
688 6934 69
7018 70
70
*111 112 *111 120 *113 11978 *113 120 *113 120
55
5112 54
5334 54
53
5214 5234 5214 5214
*234 3,2 *3
312
314
313
3
3
*3
313
45, 434
4/
1
4 4/
1
4
458 4/
1
4
434
484
414 414
1414 1618 141 1512 1412 1438
*14
1414
13% 14
____ ____ ___.. ____ ____ ______
*338 7
*334 434 *334 434 *334 434 *334 434
*338 5
358 338 *338 5
*3% 5
*3/
1
4 5
17
*16
17
*1618 1634 16
*17
1712 17
16
212 212 *228 3
238 2.8
212 212
212 212
638
6
614 612 *534 6%
584 5%
6
6
438 412
412 458
4/
1
4 434
414 414 *4
414
4014 4034 4012 42
407 42
40
40
40
40
15912 15912 15914 16112 160 16014 15912 15912 159 160
For footnotes see page 1266.
New York Stock Record-Continued-Page 6
1272
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Feb. 16
Monday •
Feb. 18
Tuesday
Feb. 19
Wednesday
Feb. 20
Thursday
Feb. 21
Sales
for
the
Week
Friday
Feb. 22
8 per share $ per share $ per share S Per share $ per share $ per share
2638 26313 2533 2634 2612 2678 442638 2612 263 2612
383s 39
39
4012 3878 4034 39
3934 3812 3812
*634 678
64 678
678
7
678 7
658 634
21
21
2112 2113 21
21
2012 2012 21
2112
*178 2
2
2
*138
178
158
158 *112
134
*14
1412 15
1512 15
14
1414
13
16
13
*114
158 *114
158 *114
158 •112
158 *114
158
558 6
558 538
512 534 "514
541
514 6
*44 614 *434 614 *434 614 *434 614 *434 614
*3312 3578 3578 3578 3534 36
36
3612 *36
37
•1912 20
19
1912 1934 2178 1934 2112 20
2012
*1112 13
*12
13
*1158 12
*1158 1212 *1158 1212
•114
112 *114
112 *114
114
138
138
112 *114
*5
538
5
5
5
5
5
5
5
5
618 64
618 64
614 64
614 614
64 618
*12 14
*12 118
12
12
*12 1
•12
34
•113 434 *112 434 *112 434 *112 434 '112 434
538 538
512 512 *533 512
318 512
*5
538
*114 2
*114 2
*114 2
*114
*114 2
2
*2338 2412 2312 2412 2414 2414 234 2358 *2313 24
9
9
9
94
878 918
834 9
838 812
8
8
814 834
834 9
814 814
8
838
2813 2812 2838 3038 2878 2912 28
2914 275
, 2812
*144 148
148 148 *144 149 *141 149 *144 149
42
42
4212 44
4158 4158
43
4334 4134 42
614 614
614
7
7
7
634 634
612 64
3812 3812 39
39
394 3912 3912 39
*39
3912
40
*35
*3434 40
40
*35
*28
40
*35
40
92
92
90
92
90
*9012 92
00
*904 92
*3012 31
31
31
31
3012 30. 3114 3178 31
1138 1058 1114
1018 1012 10
1014 1078 104 1014
912 934 *914 10
934 1014
912 1038
914 1014
*6234 66
64
*62
66
*62
66
63
6314 64
*712 812 5712 814 *7,2 812 "712 814 *712 814
4138 4178 41
4412 4178 4314 4112 4212 4213 4258
9878 99
98
9812 0814 90
99
984 9838 98
Sb
8
8
778 84
758 812
778
838
74
4112 4112 41
4412 42
4212 4158 42
4138 4158
134 1312
1314 1334
1314 1314
1314 1358 1333 1414
*8914 93
*8914 93
8914 8914 *894 9278
*8914 93
4412 4412 4478 4512 45
4512 4434 4512 4514 4534
*414 458
412 478
5
5
458 44
414 412
32
3118 3118
32
*3110 3212 32
33
•3118 33
*2434 30
2434 2434 *1958 2434 *2014 30
*2014 30
2718 2718 2634 2838 2812 2914 29
3018 2934 304
*28
2814 *28
2814 *28
2814 *28
2814 *28
2814
3
3
34 314
278 34
34 314 *318 333
1138 1138 1112 12
1238 1138 1138 1114 1138
12
*1134 1214 12
1318
1212 13
1318 13
1214 1238
64
63
6214 6214 64
63
*6234 64
6378 6378
69
71
7114 724 72
6934 69
7212 7234 7234
_
*106
8106
_ __ *106
__ 106
_
0106
_ _
54 _-54
5
-512
54 -512
5
-514
478 41
2
*38
40
3914 39
*3514 4014 *3512 3912
4014 40
'a 114
38
3*
38
38
*14
38
*14
38
.84
*34
1
Stock
*34 1
1
*34
1
*34
0114
178 *14
178 *114
178 *114
Fs *04
178
218
8
218
218 *2
218
*218 214 *24 214 Exchange
538
358 418
414
34 334
44 478
438 538
1012 11
10
1214
878 1178
818 858
84 834 Closed2
2
218 24
214 214 *24 24
24 24
234 234
238 338
234 3
258 Washing*234 278
258
•1334 14
134 1412 *14
15
14
14
*1334 14
5714 5838 58
5938 5812 5978 5812 5912 z60
ton's
6012
2612 2638 2578 2838 2714 2838 2658 2738 263
, 2678
6478 644 *6412 65
65
65
*63
65
6412 6412 Birthday
*5638 80
*5638 80 *__ 80 *____ 80 *____ 80
"8
12
38
12
13
12
38
38
38
12
.10
121,
1212 *1014 1212 *10
1212 •914 1212 *9
02412 2434 2418 26
25
2518 2458 25 253; 25
918 914
9
1038
1038 1018 1038 10
934 10
918 10
101 1 1014 10
912 912
10
912 912
53
54
5512 5212 5412 53
54
53
56
5414
*1412 16
.1414 16
*1378 16
*1414 16
*1414 16
634 678
634
738
7
714
634 673
634 634
*30
32
*3012 32
*3012 3212
*30
33
31
31
1618 1638 1578 1738 1612 1712 16
164 154 16
*2014 22
22
*20
22
22
22
20
*20
20
6
614
618 618
64 612
6
614 658
6
738 74
778
738 738
74 734
712 0
*73s
-2812
*139
1638
1638
218
28
2734
*25
-29 - -2858 -2-713 -itiT2 -2-0-1-2 -His 2
.i4 Id.9-14 -28
142 *139 142
142 142 *14214 148 *14318 146
1634 1612 1778 1714 1712 1612 17
164 1678
1612 1678
1678 1718 1658 17
164 1612 17
214
2
238
314
24
158 21,
218
214
2614 2534 264
291; 2512 2612 25
3434 24
2838
2818 27
2914 284 2878 274 2812 28
2738 2614 29
27 .25
2712 2712 27
28
165 165
165 165
166 16778 164 165 *160 164
15414 15414 155 170 *15514 170
15412 15412 .15414 165
•12212 12412 12212 12212 *12212 12412 12412 12412 *123 125
6
614
534 612
578 614
512 573
513 578
•12 14
*12
118
*12 118
*12 118
1
1
*33
12
*38
12
*38
12
*38
12
*33
12
48
4812 48
50
4734 4834 4658 4714 4612 47
13
1234 1234 13
13
13
134 1314 13
13
45
4512 45
45
45
434 44
46
4534 47
1014
913 10
934 934
934 1014 10
938 912
274 2778 2712 2814 27
27
27
27
2714 *26
494 4978 4918 4978 49
494 4812 4812 4712 4712
__ *110 113
112 112 *110 113
110 110
•110-*6
20
*6
20
*6
*6
20
20
*6
20
618 618
614 614
638 64
614 634
612 7
2614 2614 25
2514
2614 2518 2512 25
26
*25
1612 1678 1612 2012 1818 194 1678 1818 164 17
*912 10
10
10
1014 1034 *104 1114 1013 1018
1818 1818 1814 2133 1912 1912 19
19
1814 10
*212 338 *212 34 *212 34 *212 35.8 *212 338
*64 8
•634 8
*714
734
714 714 *834
912
3112 120 •112 122 0112 120 .112 122
11912 11912
160 *____ 160 *____ 160 *____ 160 *____ 160
12
4
12
12
12
33
12
12
38
3*
---- --._ ____ ____ ____ ____ ____ ____ ___--__
*64 612
64 814
634
7,2
6Is 612
64 64
94
914
1038 1038 1014 121.
912 934
912 12
*418 44
418 5 518
518 *44 472 •412 478
*31
72
73
78
.34
78
*34
78
*34
72
•1134 1212 1112 1213 1112 1112 11 1s 1112 11
111s
7912
7912 *73
*75
7912 *75
7912 7214 7214 *74
*8318 84
*8318 84
8118 8108
834 8312 8112 82
92
92
91
91
*90
*91
05
97
*91
97
3214 3278 324 34
3314 334 3312 3378 3312 3334
134 *RI
13.3
131 *114
114
"114
134 "14
11.1
'169 170
170 170
171 17114 16812 169 *168 16912
'10014 101 12 *10014 1011
.*1001 1 1014 810014 10112 101 10112
1112 1178
1138 123; 11
1158 1018 1034 1014 11
*3914 4012 3912 4014 3334 40
38
3914 3732 38
3
34
3
338
318 314
3
318
3
318
67
67
*67
67
6912 67
*62
6538 *6138 64
*978 10
10
10
.973 11
*938 104 •93s 104
*915, 93
93
93
93
93
"9138 --__
92
92
Pr, frIn nntokv ,IPLI nant• 191111
STOCKS
NEW YORK STOCK
EXCHANGE
Feb. 23 1935
Range Sews Jan.1
On Bases of 00-share Lots
Lowest
Illohest
July 1
1933 to Range for
Jan. 31 Year 1934
1935
Low Low
High
Par 3 per share
$ per share $ per oh $ per share
4134
Mack Trucks Inc
22
22
No par 2512 Jan 29 2818 Jan 8
3514
3514 624
No par 3814 Jan 28 4414 Jan 2
Macy (R H) Co Inc
212
238
718 Feb 8
7
Madison Sq Gard •t o
No par
512 Jan 2
1512 32314
1214
Magma Copper
10 1858 Jan 16 2214 Jan 7
1
112
2 Jan 4
414
158 Feb 14
MaIllmson (H R)& (Jo_.._No par
4
100 13 Jan 15 1978 Jan 23
7% preferred
7% 334
2 Jan 4
iManati Sugar
78 Feb 6
334
100
78
4
1
640
612 Jan 23
Preferred
4 Jan 7
134
100
914
3
812
No par
Mandel Bros
44 Jan 15
3
578 Jan 19
14
20
200 :Manhattan By 7% guar ___100 32 Jan 23 3612 Feb 20
41
1034
7,400
100 1712 Jan 15 22 Feb 1
Mod 6% guar
1034 2938
Manhattan Shirt
1014
25 11 Jan 15 1314 Jan 5
1012 2038
1,000 Maracaibo 011 Explor___No par
178 Jan 23
114 Feb 8
118
118
34
1,100 Marancha Corp
538
44
418
54 Jan 14
5
5 Jan 3
5
2,400 Marine Midland Corp
658 Jan 24
6 Jan 2
5
512
0
12
Market
Street By
12
118 Jan 8
10
238
100
12 Jan 31
2
814
Preferred
5 Jan 8
100
24 Jan 2
2
3
7 Jan 28
80
Prior preferred
378 Jan 2
3
1214
100
414
100
2nd preferred
1
214 Jan 8
14 Jan 10
4
12
17
1,000 Marlin-Rockwell
32
No par
2214 Jan 10 25,
8 Jan 23
838 1958
6,200 Marshall Field 04 Co
1114 Jan 3
No par
838 Feb 21
84
No par
734 Jan 10
4
3,600 Martin-Parry Corp
1238
214
94 Jan 7
2312
2312 4034
5,300 Mathieson Alkali Works No par 2718 Feb 7 32 Jan 8
100 136 Jan 2 148 Feb 9 10512 110
Preferred
136
10
23
30
1,600 May Department Stores
4534
10 3934 Feb 6 44 Jan 22
34
44
3,400 Maytag Co
7 Feb 18
834
No par
54 Jan 30
Preferred
10
1,000
36
No par 33 Jan 15 3912 Feb 18
834
Preferred ex-warrants No par 324 Jan 7 3512 Feb 13
8
9
3234
27
49
90
9212
No par 8412 Jan 4 92 Feb 18
Prlor preferred
1,800 McCall Corp
22
24
32
No par 2J312 Jan 28 32 Jan 10
7,400 :McCrory Store, classA No par
9 Feb 6 13 Jan 3
14 1212
34
3,900
No par
Claw 13
818 Feb 6 1218 Jan 3
118
04
1238
Cony preferred
400
100 5714 Feb 5 69 Jan 17
54 6338
312
4
4
10,2
McGraw-Hill Pub Co___No par
812 Jan 5
84 Jan 31
2838
15,600 McIntyre Porcupine Minee____5 364 Jan 15 4412 Feb 18
384 5012
6714
79
2,100 McKeesport Tin Plate___No par 904 Jan 15 90 Feb 15
9518
5,400 MoKesaon & Robbins
312
84 Jan 2
5
7 Feb 7
414
914
3,200
Cony pref series A
114 4234
912
50 37 Jan 15 4412 Feb 18
34
I
8,900 :McLellan Stores
1718
No par
12 Jan 12 1538 Jan 3
94
500
8% cony prat ser A
100 88 Jan 12 90 Jan 9
6
924
2,700 Melville Shoe
42
26
1713
No par 41 Jan 2 4534 Feb 21
2.000 Mengel Co (The)
34 11
1
4 Jan 17
312
558 Jan 22
50
7% preferred
24
24
52
100 28 Jan 11 3812 Jan 23
10 March & MM Tranap Co_No par 2434 Feb 18 2512 Feb 9 s 24
2513 3334
21,000 Mesta Machine Co
5 2418 Jan 15 3012 Feb 20 s7 834 5204 2534
Metro-Goldwyn Pict pref__ __27 28 Jan 2 2814 Jan 3
21
18
2814
800 Miami Copper
64
5
278 Feb 21
24
278
358 Jan 7
1,900 Mid-Continent Petrol
1434
918
94
10 11 Jan 15 1278 Jan 2
2,600 Midland Steel P1.41
No par
1014 Feb 6 1378 Jan 8
612
612 2178
70
8% cum 1s1 pref
44
8514
44
100 61 18 Feb 6 70 Jan 22
1,500 Minn-lloneywell Regu-No par
58 Jan 15 7234 Feb 21
2038
36
65
6% pre/ series A
107
100 105 Jan 0 106 Feb 6
87
68
9,700 Minn Moline Pow Impl __No par
458 Jan 12
112
178
534 Jan 2
573
300
Preferred
1512 41
No par
16
3412 Jan 15 4178 Jan 22
400 :Minneapolis & St Louls__100
14
lati
14 Jan 7
38 Jan 7
14
34
Minn St Paul & SS Marle___100
1 Jan 30
14 Feb 11
4
34
518
7% preferred
1 14
100
2 Jan 21
114
2 Jan 21
100
4% leased line Ws
100
24 Feb 0
1 12
112
3 Jan 14
712
13,300 Mo-Kan-Texas RR
312 Feb 21
No par
438
438
614 Jan 7
144
10,700
Preferred series A
12
3438
100
84 Feb20 1413 Jan 7
1012
1.000 :Missouri Pacific
112
6
100
178 Feb 7
112
3 Jan 4
1,200
Cony preferred
100
24 Feb 15
218
04
218
4 Jan 7
500 Mohawk Carpet Mills
124 2238
20 1358 Feb 6 1612 Jan 3
11
4,700 Monsanto Chem Co
39
6158
10 5.5 Feb 29 6012 Jan 3 13 24
42,300 Mont Ward & Co Inc____No par 2518 Feb 6 3012 Jan 7
20
1514
354
300 Morrel (J) & Co
No par 61 Jan 25 65 Jan 8
634
37
3478
Morris & Essex
58
71
50
564
4
2,900 Mother Lode CoalitIon___No par
38 Jan 16
53 Jan 8
4
14
12
Moto Meter Gauge & Ea
6
134
1
1,500 Motor Products Corp____No par
1614 4434
2278 Feb 7 2838 Jan 4
1514
6,700 Motor Wheel
614
858
1612
5
814 Feb 7 1134 Jan 7
1,400 Mullins Mfg Co
34
514 1558
No par
9 Jan 15 1212 Jan 22
580
Cony preferred
1218 46
No par 364 Jan 11 59 Jan 22
10
M unsi ng wear Ino
13
2514
1458 Feb 13 1534 Jan 24
10
No par
9,100 Murray Corp of Amer
374
1133
10
6 Feb 7
358
8 Jan 7
100 Myers F.8 E Bros
33
14
No par 30 Jan 12 32 Jan 3
1312
18,900 Nash Motors Co
No par
15 Feb 6 1912 Jan 7
1258
1258 324
50 Nashville Chatt & St Louis _100 20 Feb 21
1934
2712 Jan 8
1934 40
318
1,900 National Acme
874
1
558 Jan 30
3
74 Jan 7
1,100 National Aviation Corp.__No par
514
514
134
7 Feb 14
814 Jan 9
:National Bellas Hess pref--- 100
314 1234
278
64 Jan 17
278 Jan 23
13,600 National Biscuit
2674 494
10 2758 Jan 15 304 Jan 7
254
400
7% cum pref
14812
100 142 Jan 3 14514 Jan 18 12912 131
3,100 Nat Casn Register
2358
12
No par
12
1512 Feb 6 1838 Jan 3
16,300 Nat Dairy Prod
13
No par
1512 Feb 7 1718 Feb 9
104
1834
34,900 :Nat DepartmentStores No par
34
138 Feb 18
458 Jan 17
12
1
7.980
Preferred
2818
3
5
100 2114 Jan 3 3431 Feb 16
50,500 Nati Distil Prod
3132
16
16
No par 2434 Jan 15 2914 Jan 3
700 Nat Enam & Starnping
164 3274
10
No par
2,5 Feb 2 29 Feb 18
1,000 National Lead
170
135
100 145 Jan 18 16812 Jan 14
8734
14618
300
122
Preferred A
100 150 Jan 18 155 Jan 30 122
20
Preferred B
100 1214 Jan 26 12412 Jan 16
9934
10012 12112
10,800 National Pow & Lt
No par
512 Feb 20
64 1512
738 Jan 2
658
100 Nat Rys of Alex 1,1 4% pf___100
34
24
1 Jan 10
1 Jan 10
4
38
24 preferred
12 Jan 2
100
38 Jan 11
38
1
8.200 National Steel Corp
33
344 5814
25 4614 Jan 15 5012 Jan 9
1,200 National Supply of Del
2118
10
914
25 11 Feb 6 1458 Jan 3
230
334 60
Preferred
33
100 41 Jan 15 474 Jan 3
2,600 National Tea CO
9
184
9
113, Jan 4
No par
938 Feb 21
1,400 Neisner Bros
612 3014
4
No par 2234 Jan 16 2838 Feb 14
1,100 Newberry Co (J J) ..... No par 4312 Jan 2 494 Feb 16
15
31
494
112
40
7% preferred.
100
80
100 109 Jan 25 112 Feb 20
25
:New Orleans Texas .8 Mex__100
6
54
54
1.600 Newport Industries
13
1
6 Feb 6
8 Jan 3
5
1.600 N Y Air Brake
1112 284
No par 2414 Feb 1 2814 Jan 4
1112
51,500 New York Central
157a Feb 6 214 Jan 7
No par
1634
1833 454
700 NY Chic & St Louis Co
264
834 Feb 7 13 Jan 4
9
100
9
1,400
Preferred series A
4314
100 1778 Feb 6 25 Jan 7
1414
16
New York Dock
2%
258
814
100
34 Jan 22 318 Jan 22
5
100
20
8 Jan 11
Preferred
7 Feb 13
100
5
10 N Y & Harlem
50 11912 Jan 15 122 Jan 22 101
108
139
120
Preferred
112
50
112
38
114
1,900 IN Y Investors Inc
rho oar
4 Jan 31
58 Jan 3
4
98
NY Lackawanna & Western.100
83
7812
10,800 N Y N II & Hartford
2418
6
618 Feb 7
812 Jan 4
100
6
6,100
Con* preferred
1012 374
914 Feb 21
1438 Jan 7
100
1012
1,000 NY 0nano & Western
413
1153
412
6 Jan 19
100
418 Feb 5
38
38
200 NY Railways pref
134
1 Jan 0
No par
78 Jan 9
1,800 NY Shipbldg Corp part stk._„I
912 224
II Feb 21
918
Ms Jan 7
20
7% preferred
72
8934
6912
100 7214 Feb 18 87 Jan 7
9912
440 NY Steam $6 prof
73
70
No par 80 Jan 12 85 Jan 2
30
10978
$7 1s1 preferred
90
83
No par 90 Feb 2 97 Jan 22
10,400 Noranda Mines Ltd
No pa, 3034 Jan 15 35.4 Jan 3
25
304 4573
14
44
100 :Norfolk Southern
1
138 Jan 17
100
114 Feb 21
187
600 Norfolk & Western
161
100 16712 Jan 2 17438 Jan 22 138
20
10012
Adjust 4% pref
77
82
100 99 Jan 10 10112 Feb 21
36,000 North American Co
1018 Feb 20 1312 Jan 2
1014 254
104
No par
45
2,000
34
4214 Feb 13
Preferred
31
50 3738 Feb 21
7,000 North Amer Aviation
238
233
4 Jan 23
84
1
3 Feb 5
474 7413
1.200 No Amer Edison pref____No par 57 Jan 3 69 Feb 13
39
100 North German Lloyd
10 Feb 4 10 Feb 4
713
7,3
16
924
160 Northern Central
81
94 Jan 26
71
50 902 Jan 21
Shares
3.900
4,900
2,500
1,100
200
160
New York Stock Record-Continued-Page 7
Volume 140
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Feb. 16
Monday
Feb. 18
Tuesday
Feb. 19
Wednesday
Feb. 20
Thursday
Feb. 21
$ per share $ per share $ per share $ per share $ per share
174 1738 1634 20
18
183, 1714 1814 1714 1712
.36
3734 *36
3734 3734 3734 3712 3712 *3614 3734
•134 172
*134 2
134 2
134
Vs
*134 2
25
*22
25
25
*22
2712 *22
*22
25
2778
10
10
1038 10
10
1012
1018 10
1014 10
33* 4
334 4
*312 334
312 312
338 378
2212 2212 22
2234 2278 2114 2218 21
23
21
314 812
511 312
818 5'5
818 812
3
512
*78
*7678 84
*7518 84
84
*7678 84 •7678 84
714 712
*7
718
7
758 *7
712 .7
738
1414 1412 1414 1458 1412 1458 1414 15
1418 1438
108 IOS *108 10812 108 10812 109 109
10812 109
6
578 6
614
57s 6
64 658
578 612
3713
37
37
38
38
*35
39
*36
38
*36
*38
43 •33
43 *38
43 *38
43 *38
43
*113
*11234 -- *11234
*11234
-- *11234 ,-90 -9012 90 -903; 8913 1914 89 -8-9
89 -894
*134 212 *134 3
*134 213 *134 212 *134 212
*5
512 *5
512 *5
512
5
5
*412 5
212 212 *212 338
*2
212
212 212
212 212
14
1378 1412 1334 14
14
1314 1334 1338 1312
2213 2212 2238 23
22
23
2112 22
21
2112
*16
18
*17
18
1714 1714 *1612 1712 *1612 1712
7218 7214 72
7214 72
7212 7214 7214 7214 7234
.116 118
117 117
117 117 *117
•11714 _ ___
734 734
712 712
734 734
712 _734
,4758
-5
412 43*
434 5
458 478
412 5
412 458
*11
12
*1114 12
1114 1114 1114 1114 *1114 1212
*15
18
1514 1514 *15
1758 •15
1513 *15
1814
114 112
138 158
138 138
114 114
118 11s
434
78
78
78
34
34
434
78
438
34
*634 914 *612 EN
4718
814
4814
814
814
814
312 358
312 374
3% 334
312 332
312 334
3
3
3
338
3
33s
3
318
3
3
1
118
1
118
1
118
1
118
1
1
15
15
15
1614 1558 155$ 15
15
147* 1514
10
1014 10
1014 10
103/4 10
10
10
1018
*114 13/1 •114
138
138 134;
114
114
114 114
*66
6712 67 6834 68
6814 68
6812 6812 6812
6934 70
6734 7014 6814 6912 6814 6914 69
6958
*10718 111 *10714‘ 111 *10718 111 *10718 111 *10718 111
314 314 *214 314 *214 314 *214 314 *214 314
*418 412
418 458
412 44
44 44 *418 412
*21
22
22
23
2312 2312 *21
2312 *21
24
21
2138 2114 24
2218 2318 2114 22
2034 2138
*30
3118 3118 3278 32
32
3212 3212 3212 33
*11112 112 *11112 112
11112 112 *11112 112
11112 11112
2058 2058 2038 2038 2012 2034 1934 2014 *2014 21
*218 234 *218 234 *218 234 *24 234 *218 234
*1234 20
1478 1478 *1418 1978 *12
1918 *12
15
27
27
27
27
2734 2734 *24
2714 *24
2714
*18
21
*21
24
21
21
018
2578 •18
2578
1834 1834 018
1914 1914 1914 *18
1914 *18
1914
84 814
814 878 .812 878
812 813
812 812
15
1518 1478 1614 1538 16
1514 1534 1538 1558
2618 2618 27
27
*26
2612 *2534 2612 26
26
*4178 46
*40
46
vil
46 *40
46
*40
46
*214 314 *214 314 *214 314 *212 3
*212 3
*478 512 *458 512 *4741 512 *414 512 *414 512
313 31.7
312 4
312 312
314 312
314 314
3912 3912 39
4138 3934 40
3912 3912 3912 40
*8
11
*8
1018 *9
11
*9
11
*9
11
*(30
65
*57 65 •60
6434 *60
6434 *60
6434
15
1514 15
1578 1558 1578 1512 1558 1478 1514
*47s 612
5
5
*5
6
478 5
*412 5
*4918 57
*52
57
*4918 57 *4918 58
*4918 58
72
72
72
7
34
78
34
1
78
1
12
3s
lz
12
12
38
1
438
1
cD8 612 *478
6
•4741 514 *478 514 *434 S's
*7, 1
*78 1
1
1
72
7
478
1
*3138 3178 32
33
3314
3234 33
33
3318 33
*75
77
*7458 77
*75
7718 *75
7634 *74
771e
*105
-- *105
-_ *101
_ _ *101 - __ *101
_ -*918 -1(114
*814 --913 *9 -10
9
-9
*8
-958
*33
37
*3214 35
37
37 *33
37
*33
37
.-z- -, --,- - ...-- --„. •17212 _ _._ *17212 --.r..
Friday
Feb. 22
Sales
for
the
Week
STOCKS
NEW YORK STOCK
EXCHANGE
Par
Northern Pacific
100
Northwestern Telegraph
50
Norwalk Tire dr Rubber __No par
Preferred
50
Oblo 011 Co
No par
011ver Farm Equip
No par
Preferred A
No par
Omnibus Corp(Thinvte_ No par
Preferred A
100
800 Oppenheim Coll & Co--No par
No par
7,400 Otis Elevator
220
Preferred
100
No par
8,100 Otis Steel
300
Prior preferred
100
Outlet Co
No par
•
Preferred
100
2,400 Owens-Illinola Glass CO
26
10
Pacific Coast
20
1st preferred
No par
50
2d preferred
No par
5,000 Pacific Gas & Electric
25
2,300 Pacific Ltg Corp
No par
No par
100 Pacific Mills
520 Pacific Telep & Teleg
100
100
80 8% preferred
700 Pee Western 011 Corp---No par
27,600 Packard Motor Car
No par
200 Pan-Amer Petr & Trans
5
200 Park-Thford Inc
I
3,200 Parmelee Transporta'n--No par
200 Panhandle Prod & Ret__.No par
11X
10 8% cony preferred
24,500 :Paramount Publix Info
10
I
5,300 Park Utah C M
7,400 Pathe Exchange
No par
Preferred class A
No par
3,600
4,400 Patin° Mines & Euterpe No par
3
400 Peerless Motor Car
1.900 Penick & Ford
No par
11.600 Penney (J 0)
No par
Preferred
100
200 Penn Coal & Coke Corp
10
2,500 Penn-Dixie Cement
No par
400
Preferred series A
100
50
26,700 Penn9y'vania
900 Peoples Drug Stores
No par
Preferred
30
100
1,900 People's 0 L & 0(Chlo)
100
Peoria & Eastern
100
100 Pere Marquette___...
100
300
Prior preferred
100
Preferred
100
100
300 Pet Milk
No par
1,900 Petroleum Corp of Am
5
13,300 Phelps-Dodge Corp
25
Stock
400 Phlisdelphia Co 6% prat- ..50
$6 preferred
No par
:Philadelphia Rap Tran Co-_.50
Exchange
77 preferred
50
Closed4,500 Plilla & Read C & I
No par
2,700 Phillip Morris & Co Ltd
10
No par
Phillips Jones OM
Washing7% preferred
.100
12,200 Philips Petroleum
No par
ton's
5
400 Phoenix Holden'
Preferred
100
Birthday
14,200 :Pierce-Arrow Mot Car Co
5
25
1,500 Pierce 011 Corp
100
Preferred
No per
400 Pierce Petroleum
No par
2.300 Pillsbury Flour:Ms
Pirelli Co of Italy Amer shares-Pitts C C & St L RR Co____100
100
100 Pittsburgh Coal of Pa
100
100
Preferred
Pitts Ft W & Chia prat
100
734
-0
4
15$
5
712
-778
634
3,800 Pittsburgh Screw & Bolt- No par
-738
678
714
29
29
*29
32
*2812 32
*2813 32
100
*2812 317s
10 PIM Steel 7% cum prof
*114 212 *138 212 *112 212 *113 212 *112 212
Pitts Term Coal Corp
100
*1214 18
010
2012 *10
18 .10
18
*10
18
100
6% preferred
*178 238
21s 21s
218 2111 *2
218 *2
21
25
200 Pittsburgh United
.32
33
33
33t2 3314 324
34 *31
3412 *31
Preferred
100
180
•7
10
*7
14
*778 14
*7
13
*7
13
Pittsburgh & West Virginia _100
Pitts Young & A sht Ry7% pf.100
'113
8
4112
218 *112 218 *112 218 *112 218
No par
Pittston Co (The)
738 738
714 8
734 8
734 784
712 712
2,900 Plymouth OH Co
5
*814 918
9
953
918 958
918 918 *818 834
1,100 Poor & Co class S
No par
*3
3
3
34 *3
Sit
314 314 *3
200 Porto Rio-Am Tab el A_ _ _No par
314
*1
114
114 114 *118 114
114 14 *118 138
200
Class B
No par
1334 1334 1334 15
1312 1478 1312 1378 1314 1314
3,200 Poeta!Tel & Cable 7% pre --100
258 258
212 278
258 234
212 258
214 212
2,000 :Pressed Steel Car
No par
*13
1478 1338 1334 13
13
12
12
1034 11
1,100
Preferred
100
17
4718 4714 4878 48
4834 4778 4812 48
4834
14,100 Procter & Gamble
No par
1174 1174 *117 11712 117 11712 117 117 *11612 117
150
5% prof leer of Feb 1'39)-100
227/1 2314 2312 2418 22
2334 2012 2214 2034 22
17,700 Pub Ser Corp of N J
No par
.63
6834 68
68
66
67
6238 66
64
64
1,700
$6 preferred
No par
7878 7878 7978 80
80
80
7834 7834 *75
78
600
6% preferred
100
•9012 9112 9012 914 9114 9112 8834 8854 *85
8838
100
7% preferred
500
*104 108 *104 108
106 106
104 104
*95 105
200 8% preferred
100
10012 10012 *9878 10212 10112 10112 100 10112 •9878 101
600 Pub Ser El & Gas pf $5_--No par
4812 4918 4812 .50
4918 50
4812 4978 4812 49
9,000 Pullman Inc
No par
658 658
658 7
7
74
678 718
678 7
6,400 Pure OH (The)
No par
5412 5412 56
5(3
*55
56
*5412 56
*5412 56
40
8% cony pref
@FedFRASER